E801 - Org & Role of E8 (17 Files Merged)

ORGANISATION & ROLE
E 8 SECTION
By
Mrs. Megha Kanoje
Dy. Director (Contracts)
ORGANISATION OF E 8 SECTION
 Contract officers posted in all MES formations
 Role : Technical Advisor to head of the office on

Contract Matters
E-IN-C`S BRANCH
Jt. DG (CONTRACTS)
CE COMD
Jt. DG (CONTRACTS)
OR
DIR (CONTRACTS)
CE ZONE
DIR(CONTRACTS)
CWE
DCWE (CONTRACTS)
GE
AGE(CONTRACTS)
ROLE OF
E 8 SECTION
ROLE OF SURVEYOR CADRE OFFICERS & STAFF
• Evolving a flawless contract procedure.
• Drafting specifications for materials and

workmanship.
• Preparation of Standard Schedule of Rates, analysis

of rates and special rates.
• Cost Analysis during the various stages of planning

and designing to ensure economy in construction.
ROLE OF SURVEYOR CADRE OFFICERS & STAFF
• Tender action: Preparation of tender, creation,

publishing, corrigendum, opening & evaluation of
technical bid & financial bid, scrutiny of quoted
tenders, market rate analysis and conclusion of
contract (Award of contract)
• Administration of contracts: Placement of work
orders/ deviation orders, issue of notices, technical
check of deviation orders, technical check of running
account receipts during currency of contracts and
technical check of final bills for completed works
• Enlistment of contractors and maintaining up-to-date

dossiers of all enlisted contractors.
• Arbitration cases/ Law Suits: Settlement of claims,

disputes resolution process
E-in-C’s Branch- E8 Section
Issue of Policy instructions on Contract
Procedure and related matters
Enlisting Authority for SS Class Contractors
Finalization of serious ADGTEs cases
Appointment of Arbitrator for contracts

concluded by CE Zone/ CE Project
LA Def Advice on court cases and decision

on legal matters
Chief Engineer Command/ ADG-E8 Section
 Rendering advice to Command CE on Contract

matters under the Command.
 To act of Next Higher Engineer Authority for CE
Zone/ CE Project
 Enlistment and Administration of ‘S’ & ‘A’ to ‘D’ class
contractors
 Scrutiny and follow up action on the Performance

Report of contractors enlisted with them
 Competent Authority to Publishing Work Load Return

for ‘S’ & ‘A’ to ‘D’ class contractors
Chief Engineer Command/ ADG-E8 Section
 Maintaining liaison with STE and CDA Command with

regard to the TE’s observations and recoveries
 Collection of data for revision of Standard Schedule

of Rates
 Maintenance of liaison with STATE PWD, CPWD,

Railways and any other Agencies
 Assisting Zonal Chief Engineers under the Command

in vetting of Pleadings-in-Defence & defending
important Arbitration Cases.
CHIEF ENGINEER ZONE-E8 Section
 Adviser to Chief Engineer on all Contract Matters.

 Supervises preparation of tender documents &
estimation of bills of quantities in the Zone
 Technical check of star rates having financial effect
more than Rs 50,000/-
 Defending Arbitration Cases & Monitoring Court cases
 Publishing of Work Load Return for ‘E’ class contractors
 Technical Check of final bills pertaining to CE Contracts
 Monitor timely payment of final Bills and clearance/
finalization of STE Observations under the Zone
 Appointment of Arbitrator for contracts concluded by
CWE & GE Contract
CWE OFFICE-E8 Section
 Advisor to CWE on Contract Matters
 Preparation of tender docs & conclusion of contract
 Enlistment of contractors in class ‘E’
 Technical check of a percentage of contractor’s final

bills in respect of CWE/ GE Contracts before payment
 Technical Check of Deviation orders and Technical

Check of star rates of financial effect less than Rs
50,000/-
 Defending Arbitration Cases & Monitoring Court Cases
 Monitor timely payment of final Bills and clearance/

finalization of STE Observations under their Area
GE OFFICE-E8 Section
 Advisor to GE on Contract Matters
 Preparation of tender docs & conclusion of contract
 Technical check of all deviation orders & star rates
 Technical check of all contractor’s bills for Advance on

Account payments and final Bills.
 Issue of Work orders/ deviation orders/ notices to the

contractor
 Initiation of all cases/ reports pertaining to contract

matters
IMPORTANT DOCUMENTS
RELATED TO E 8 SECTION
By
Mrs. Megha Kanoje
The list of important documents
related to E8 section/ contract section
can not be made exhaustive
However,
the documents mentioned herein after

hold substantial relevance to working
of Contract Section
1. Manual on Contract Matters 2020 DULY AMENDED
2. SSR Part – I [Specifications] 2009 DULY AMENDED
3. SSR Part – II [Rates] 2010 DULY AMENDED
4. General conditions of contracts [IAFW-2249] DULY AMENDED
5. General conditions of contracts [IAFW-1815-Z] DULY AMENDED
6. Indian Contract Act -1872
7. Arbitration and Conciliation Act-1996
8. Arbitration and Conciliation Act-Amendment 2015
9. Arbitration and Conciliation Act-Amendment 2019
10. Indian Limitation Act -1963
11. Practical Information for Quantity Surveyors by SHRI PT JOGLEKAR

GENERAL BOOKS OF MES ALSO RELEVANT TO E8 SECTION
1. Defence Works Procedure 2020
2. Regulations of MES
3. Technical Instructions
4. Indian Standards Code of Practice

FRESH ENLISTMENT OF CONTRACTOR
By
Mrs. Megha Kanoje
 VARIOUS CLASSES OF CONTRACTORS
 CATEGORIES OF WORK FOR REGISTRATION
 CRITERIA FOR FRESH ENLISTMENT
 GENERAL GUIDELINES FOR ENLISTMENT
 ENLISTMENT IN ELECTRICAL WORKS
 FRESH ENLISTMENT BASED ON TECHNICAL QUALIFICATIONS

VARIOUS CLASSES OF CONTRACTORS IN MES
CLASS UPPER AMOUNT OF LIMIT OF MINIMUM ENLISTING/REGISTERING
TENDERING STANDING RESERVES/ TOTAL OF AUTHORITY
LIMIT SECURITY DEPOSIT MOVABLE AND / OR
IN LAKHS IN LAKHS IMMOVABLE PROPERTY
IN LAKH (Not
applicable now)
SS NoLimit 15 120.00 E-in-C

S 1500 11 80.00
A 750 7 75.00
B 300 4 60.00 CE Comd/ADG
C 100 1.75 25.00
D 50 1 12.50
E 25 0.5 8.00 CWE
(CE Zone in case no
CWE Office)
 Category of a contractor denotes the type/ nature of work for which he is
enlisted.
 Contractors will be enlisted for one or more of the following categories of works
for which they are considered suitable:-
(a)-Building and Road Works.
 (i) Building Works
 (ii)Water Supply and Sewage Disposal
 (iii) Runways and Pavements
 (iv) Marine and Harbour Works
 (v) Roads
(b)- Electric Engineering Works.
 (i)Low Tension Electric Works(upto 1100 Volts)
 (ii)High Tension Electric Works(excluding 33 KV)
 (iii) 33 KV and Extra High Voltage Installation
(c)-Electrical / Mechanical Engineering Services.
 (i) Air Conditioning and Refrigeration(HVAC)
 (ii) Lifts & Escalators
 (iii) Electrically Operated Cranes
 (iv) Incinerators
 (v) Mechanical Laundry
 (vi) Fire Fighting and Fire Detection System
 (vii) Water and Effluent Treatment
(d)-Miscellaneous
 (i) Manufacture & Supply of furniture
 (ii) Handing of Engineer Stores and Transport
 (iii) Horticulture and Landscaping
 (iv) Information Technology Services.
 (v) Maintenance and Operation Of E/M Installation
 (vi) Repair of Transport Vehicles.
 (vii) Energy Audit Services
 (viii) Auction Services
Class Past Experience of Completed Financial Soundness (in Rs)
Works in Last 5 years & Average
Annual Turn Over
(in Rs)
SS (a)Two works costing not less than 12.00 crore each. (a) Solvent upto 8.00 crore
or or
One work costing not less than 20 crore. Financially sound for engagement upto
and 40.00 crore.
(b) Average annual turn over for two consecutive years shall (b)Working capital not less than 75.00 lakh
not be less than 20 crore
S (a)Two works costing not less than 7.50 crore each (a) Solvent upto 4.00 crore
or or
One work costing not less than 12 crore Financially sound for engagement upto
and 15.00 crore
not be less than 12 crore
A (a)Two works costing not less than 4.00 crore each. (a) Solvent upto 2.00 crore
or or
One work costing not less than 6.00 crore. Financially sound for engagement upto
and Rs 7.50 crore.
(b)Average annual turnover for two consecutive years shall (b)Working capital not less than 30.00 lakh
not be less than 6.00 crore
Annual Turn Over
(in Rs)
B (a)Two works costing not less than 1.50 crore each. (a) Solvent upto 100 Lakh
or or
One work costing not less than 2.0 crore. Financially sound for engagement upto
and 3.00 crore.
not be less than 300 Lakhs
C (a)Two works costing not less than 50.00 Lakhs each (a) Solvent upto 40.00 Lakhs
or or
One work costing not less than 80.00 Lakhs Financially sound for engagement upto
and 100.00 Lakhs
not be less than 100 Lakhs
D (a)Two works costing not less than 25.00 Lakhs each. (a) Solvent upto 20.00 Lakhs
or or
One work costing not less than 40.00 Lakhs . Financially sound for engagement upto
and 50.00 Lakhs
(b)Average annual turnover for two consecutive years shall (b)Working capital not less than 7.50 lakh
not be less than 50.00 Lakhs
Annual Turn Over
(in Rs)
E (a) Three works costing not less than Rs 7.50 lakh. (a) Solvent upto 10.00 Lakhs
or or
Two work costing not less than Rs 10.00 lakh each Financially sound for engagement upto
25.00 Lakhs
or
(b)Working capital not less than 5.00 lakh
One work costing not less than Rs 20.00 lakh.
and
(b) Average annual turn over for two consecutive
years shall not be less than Rs 25.00 lakh.
GENERAL GUIDELINES
1. Application for enlistment submitted by contractor on IAFW-2190 (Revised 2020) to Registering
Authority.
2. Constitution of the firm: Affidavit
Proprietorship – Affidavit by proprietor
Partnership – Partnership deed registered with registrar of firms
Private Ltd, Public Limited- Memorandum & Articles of association
3. List of works executed during last five years (as per Appx.) including copies of Work Orders
and Completion certificates.
4. Annual turnover certificate duly supported with audited balance sheet. The turn over
certificate must bear the UDIN (Unique Document Identification Number). The turn over
certificate and audited balance sheet should be from same Chartered Accountant. In case
balance sheets are not audited, Form 26 AS and /or Annual GST return shall be forwarded in
support of turn over.
5. Balance Sheet for last 5 years for Ltd companies
GENERAL GUIDELINES
GENERAL GUIDELINES
6. Solvency certificate Issued by the Scheduled bank
7. Working Capital Certificate
The Solvency Certificate and Working Capital Certificate shall be got verified from the
issuing bank
8. Affidavit by the contractor that there is no government dues / recovery outstanding against
him/ firm.
9. Affidavit from contractor giving brief details of arbitration / litigation cases he was involved in.
Registering Authority will critically examine and shall not enlist contractor considered habitual
litigant. Contractor shall be deemed to be a habitual litigant if he moves the court more than
once ignoring arbitration clause and court does not uphold his view.
10. Affidavit by the contractor affirming whether any of their near relatives is/are working as
Gazetted/ Commissioned officer/Junior Engineer) in MES/ MoD
11. Verification of Character and Antecedents of Contractors and their Agents
 For enlistment/up-gradation/renewal/reclassification in category (b)(i) to(iii) :
 Declaration/undertaking from the applicant contractor in affidavit form, to either obtain

valid Electrical License of required class in its name or engage an agency having valid
Electrical License of required class through MoU (Memorandum of Understanding) for
(i) execution of all electrical works
(ii) works under category (c)[including its sub categories (i) to (vii)] and the category
(d)(v) to the extent Rule 29 under Part III of Central Electricity Authority (Measures
Relating to Safety and Electric Supply) Regulations, 2010 is applicable either in full or
part of the scope of work of contract awarded to him.
 All such electrical works shall be executed by him through such agency only (either self
or other agency) having valid Electrical License of required class from State /Union
Territory Authorities where works are to be executed.
• Applicable for enlistment in Class ‘D’ & ‘E’
• Graduate/Diploma holder Engineer having Degree/Diploma from Govt. recognized Institute
• Following discipline:
1. Civil Engineering
2. Electrical Engineering
3. Mechanical Engineering
• Post Qualification experience:
Class Experience (in years)

Degree Diploma
D 4 6
E 3 5
 Categories of work for enlistment
Civil Engineering
• a(i) Building Works
• a(ii)Water Supply and Sewage Disposal
• a(v) Roads
Electrical/Mechanical Engineering
• a(ii)Water Supply and Sewage Disposal
• b(i)Low Tension Electric Works(upto 1100 Volts)
• b(ii)High Tension Electric Works(excluding 33 KV)
• d(v) Maintenance and Operation Of E/M Installation
THANK YOU
TYPES OF CONTRACTS IN MES
By
Mrs. Megha Kanoje
PRELUDE
 TYPES OF CONTRACT
 LUMP SUM CONTRACTS
 TYPES OF LUMP SUM CONTRACT
 MEASUREMENT CONTRACTS
 TYPES OF MEASUREMENT CONTRACTS

TYPES OF CONTRACT
BUILDING CONTRACTS CAN BROADLY BE DIVIDED
INTO TWO TYPES AS FOLLOWS:-
LUMPSUM CONTRACTS:
GENERALLY USED FOR ORIGINAL WORKS
MEASUREMENT CONTRACT
GENERALLY USED FOR MAINTENANCE CONTRACTS
LUMP SUM CONTRACTS
THE AGREEMENT BINDS THE CONTRACTOR TO CARRY OUT THE
WORK FOR A FIXED AGREED SUM IN CONTRACT .
THE SCOPE OF WORK DESIRED TO BE CARRIED OUT UNDER THE

LUMPSUM CONTRACT IS CATERED BY WAY OF DETAILED
DRAWINGS AND SPECIFICATIONS .
INTERIM PAYMENTS ARE MADE TO CONTRACTORS ON THE BASIS OF

ASSESSMENT OF THE PROGRESS OF WORK ACTUALLY DONE.
YARD STICK IS PREPARED FOR EACH ITEM OF WORK.
SUCH CONTRACTS DOES NOT INVOLVE RECORDING OF DETAILED

MEASUREMENTS.
DAY TO DAY SUPERVISION BY MES ENSURES THAT THE WORK IS

BEING DONE IN ACCORDANCE WITH THE CONTRACT PROVISIONS
MEASUREMENTS CONTRACTS
APPROXIMATE QUANTITIES INVOLVED IN THE SCOPE OF WORK
ARE ENTERED IN SCHEDULE ‘A’ (LIST OF WORKS AND PRICES) OF
THE CONTRACT.
THE EXACT AMOUNT PAYABLE TO CONTRACTOR THROUGH RARS

AND FINAL BILLS IS DECIDED ONLY AFTER MEASURING QUANTITIES
OF ITEMS OF WORK DONE AT SITE AND PRICING EACH ITEM OF
WORK AT RATE, QUOTED BY THE CONTRACTOR.
TYPES OF LUMP SUM CONTRACTS
 LS Contracts based on pre-pricing by MES
 LS Contracts based on drawings and specifications


 LS Contracts based on bills of Quantities (IAFW-2159)
 Sale of buildings for demolition, removal and clearance of site

(IAFW-2352)
 Piece work for Specific Job (IAFW-1780-A)
 Contracts for Specialist Consultancy Services
 EPC
BASED ON PREPRICING BY MES
 The cost of each building structure etc, at par with the SSR, is
estimated in advance by MES & inserted in the schedule ‘A’ (list of
work & prices).
Quantities of items of work are not supplied to the tenderer and the
accuracy of the pre-pricing done by MES is also not guaranteed.
Complete set of drawings and specifications is supplied to the

tenderer.
The tenderer is required to work out the detailed quantities for each
building / structure listed in schedule ‘A’, apply his own rates and
quote the lump-sum that he will charge for the work.
Purpose served by the pre-pricing done by MES is to arrive at the %

on/off the SSR amount/rates for working out the adjustment to
contract price on account of variations.
A majority of lump-sum contracts concluded in MES for any kind of

buildings or structure are of this type.
Form of this contract is IAFW-2159 and GCC is IAFW- 2249

BASED ON DRGS & SPECIFICATIONS
 Tenderer is neither supplied with detailed quantities nor with cost of work
is pre-priced by MES at par with SSR.
 Tenderer is required to work out the quantities, apply his own rates and
quote lump-sum against each buildings/ structure listed in Schedule ‘A’.
 Tenderer is supplied with a complete set of drawings and specifications.
 A special condition is inserted in the tender documents laying down a
percentage on/off the SSR level of rates at which variations will be priced
depending on the assessment of market rates by MES
 This type of tender form is considered inferior to pre-priced lump-sum
tenders and for concluding this type of tender permission is required to
be taken from Next Higher Engineering Authority.
 Use of this type of contract is restricted to technical buildings of non-
repetitive nature and when rates of most of the items are not available in
SSR for pre-pricing
 Form of this contract is IAFW-2159 and GCC is IAFW- 2249
BASED ON BILLS OF QUANTITIES(BQ)
 The tenderer is supplied with complete set of drawings, specifications and

quantities of items of work given in the bills of quantities (BoQ), calculated by
the MES.
 The correctness of quantities of work are guaranteed by the MES
 The contractor quotes his rates for each item of work and arrives at lump-
sum he shall charge for the entire work.
 Interim payments are made by assessment (based on yard stick) and not
involving measurements at site.
 Variations/ deviations from original scope of work are measured in detail &
contract price is adjusted on the basis of rates quoted in BOQ
 This is considered as ideal type of building contract as it combines the best
features of lump-sum and item rate contracts.
 Preparation of tender docs requires considerable effort and expertise.
 This type of contract is suitable for works involving constructions of many units
of a particular type of design viz. Married Accommodation.
 Form of this contract is IAFW-2159 and GCC is IAFW- 2249
SALE OF BUILDINGS FOR DEMOLITION,
REMOVAL AND CLEARENCE OF SITE
 When due to any reason the existing buildings are required to
be demolished
The tenderer quotes Lump Sum price for demolition of buildings
and removal of debris away from government land.
 The tenderer also quotes a credit which he will afford for the
salvaged material
Form of this contract is IAFW-2352
PIECE WORK FOR SPECIFIC JOBS
 This type of contract is concluded for small specific jobs like

Minor Works, Repairs to Plants and machinery, etc not
exceeding Rs 10,000/- where the scope of work is exactly
known.
 Contractor quotes a lump-sum for the complete Job.
 Nature of work does not warrant elaborate conditions of
contracts therefore a simple and concise contract form [IAFW-
1780 A] is devised for use in MES.
CONTRACT FOR SPECIALIZED CONSULTANCY
SERVICES
 This type of contract is concluded to:
(i)meet the excessive planning load in a particular MES formation
(ii)due to complexity or specialized nature of job by employing the

services of professional consulting firms for working up a scheme, design
calculations, preparation of drawings, bill of quantities, drafting
specifications, etc.
 MES supplies the consultant with the data, information and parameters in
the form of stipulations in the contract.
 The schedule of fee payment can be made either on satisfactory

completion of entire consultancy service or Stage Payments to be made on
item wise completion of consultancy services.
 Standard contract form has been approved by Ministry of Defence for use
by CE formation(s) hence does not require vetting by legal Authorities or by
concerned PCDA/ CDA
ENGINEERING PROCUREMENT CONSTRUCTION
(EPC) CONTRACTS
Suitable for complex buildings where entire engineering,

procurement and execution is entrusted to the contractor.
Contractors carry out the detailed engineering design of

the project, procure all the equipment and materials
necessary and then construct to deliver a fully functional
facility to the department.
TYPES OF MEASUREMENT CONTRACTS
 Item Rate Contracts (IAFW-1779 A)
 Term Contract for Artificers Work (TC) (IAFW-1821)
Percentage Rate Contract (IAFW-1779)
Rate Contract for Supply of Stores Materials and

Furniture (IAFW-1815Z)
Contract for Handling and Conveyance of Stores

(IAFW-2320)
Piece Work Contract (IAFW-1780)

ITEM RATE CONTRACTS
It is ideally used where large approximately estimated quantities of
work involving small number of items have to be carried out, eg:
Roads Work, External Water Supply, Sewage and Electrical Mains,
Periodical Services, etc.
The schedule ‘A’ contains items with approximate quantities.
The descriptions of items cover specifications in brief for each item.
The tenderer quotes his rates for each item of work, to be
measured in detail before payment.
Detailed specifications & drawings are also supplied to the
tenderer.
Though the quantities given in the schedule ‘A’ are stated to be
approximate, care need to be taken to ensure that they represent
final requirements within 10% accuracy.
This is to avoid the possibility of the lowest tender accepted on the
basis of approximate quantities turning out not to be the lowest
tender on the basis of quantities actually executed at site.
Form of this contract is IAFW-1779 A
General Conditions of contracts for this form are IAFW- 2249
TERM CONTRACT FOR ARTIFICERS WORK
The term of the contract is normally one year
The contract can be concluded for a term of two years with
prior concurrence of CE
This type of contract is concluded for specific area for minor
works and maintenance services required to be executed from
time to time during the term of the contract.
The tenderer quotes percentage above or below the rates
given in the M.E.S. Standard Schedule of Rates (SSR)
Work Orders can be placed for any single work estimated at
contract rates not exceeding Rs 1.5 lakh.
Reservations on ordering work under Term contract are
indicated in condition 4 A of GCC (IAFW-2249)
Form of this contract is IAFW-1821
General Conditions of contracts for this form are IAFW- 2249
PERCENTAGE RATE CONTRACT
Percentage Rate Contract (IAFW-1779) is intended to be used, for
original works and maintenance services beyond the limits of TC
under certain circumstances:
(i) When there is difficulty in estimating the quantities correctly until
the work has been commenced such as extensive roof or floor repair
(ii) When it is imperative the commence the work without delay with
the preparation of Bills of Quantities.
(iii) In other special cases when he local conditions make it unlikely
that contractors capable of tendering on the lump-sum basis will be
forthcoming.
Prior Approval of NHEA for (ii) & (iii) would be required if the contract
is to be concluded by GE / CWE
The tenderer quotes in terms of a percentage above or below the
rates given in the S.S.R.
General Conditions of contracts for this form are IAFW-2249
RATE CONTRACT FOR SUPPLY OF STORES MATERIALS
& FURNITURE
Rate Contract for Supply of Stores Materials & Furniture (IAFW-1815 Z)
is used for the supply of furniture, stores for DEL, petty stores for office
use, etc.
The items of supply may be divided into groups and a separate
contract concluded for each.
Contracts may be concluded for divisions, sub-divisions or stations
separately or collectively as required and may be of six month’s or
any year’s duration at the discretion of the CWE.
Tenderer quotes his rates for supply of each item listed in Schedule
‘A’ during a fixed period of time of usually six moths or one year.
Orders for supply can be placed as and when the requirement arises
in bulk or in piece-meal.
Items or stores supplied are measured and payment made at the
rates quoted.
Final bill is prepared for each supply order completed.
General Conditions of contracts for this form are IAFW-1815 Z
CONTRACT FOR HANDLING AND CONVEYANCE OF
STORES
Contract for handling and conveyance of stores (IAFW-2320) is
used for loading, unloading, removal,
conveyance(transportation), stacking and preservation of stores
of any description.
The tenderer is required to quote a percentage on/ off a priced
schedule of rates attached to the tender.
It is a running contract usually concluded for a period of 12
months period.
Work orders duly stipulating the period of completion are placed
as and when need arises.
The contractor is required to keep the vehicles and labour gang
available for deploying at a short notice.
It shall be mentioned in this type of contract that if the delay
occurs in unloading of stores received by railway wagons due to
contractor’s fault, the demurrage / wharfage charges levied by
the Railway Authorities shall be recovered from the contractor.
PIECE WORK CONTRACT
Piece work Contract form (IAFW-1780) is used for small items of
work of recurrent nature such as Re-canning of furniture, empting
of septic tanks, restringing of charpoys, etc
This contract is usually made for single item of work
The work may be ordered in bulk or in piece meal as and when
the necessity arises during a stipulated period of time.
Total value of work shall not exceed Rs 5000/- during the entire
period of contract
Nature of work does not warrant elaborate conditions of
contracts therefore a simple and concise contract form [IAFW-
1780] is devised for use in MES.
THANK YOU
PREPARATION
AND
ISSUE OF TENDERS
By
Mrs. Megha Kanoje
ACTIONS FOR ISSUES OF TENDER
• Receipt of Admin Approval sanctioned by CFA
• Issue of Work Operation Order through E-2 (Planning) section
• Details related to work fwd by E-2 (Planning) to E8 Section

Name of work Period of completion Estimated value
•Receipt and scrutiny of Preliminary Information Proforma (PIP),

additional ground data/ site factors
GE => E 2 (Plg) Sec => E8 Sec
[including T & P, Machinery & Transport, Engineer Staff incompliance
to Amdt No 47 to Manual]
• Architectural drawings prepared by E 6 section => E 2 (Des)
• Structural design and drawings prepared by E 2(Des) => E 6
• Schedule of finishes drawings prepared by E 2(Plg) => E 6
• Receipt and scrutiny of PIP Drawings a/w List of Drawings from E-6
• Scrutiny of PIP Drawings by all concerned
• Estimation of Buildings/ Structures by E8 section

• Anomalies and mistakes in PIP drawings conveyed to concerned

section and E6 section
• Tender drawings are issues by E6 section
• Receipt of Technical Sanction from E-2 (Planning)
•Technical Sanction, Tender drawings and PIP proforma form the basic
documents for preparation of tender documents by E 8 section
•Preparation of tender and Notice Inviting Tender

NOTICE INVITING TENDER (NIT)
• NIT shall be prepared on IAFW-2162, as amended for e-tendering

which is prepared and published along with tender and there shall be no
requirement of giving any separate advertisement for the tender in
newspapers and Indian Trade Journal (ITJ)
• Tenders at stations where internet facility is not available shall be done

through physical tendering mode subject to prior permission of E in C’s
Branch
• e-Tender shall not be issued for TOP Secret Works/ Strategic Works
Subject to approval of CE Zone and intimation to NHEA
• Top secret Works shall not be advertised on e-tendering portal
• Estimated cost of work shall be net cost at market rates as indicated

in AE Part II of AA for the items going to be tendered.
• NIT as well as the tender documents shall not contain information of

a classified nature.
• Details of secret nature like strength of Unit, Composition, role,

location shall not be disclosed
• Magazines, Ammunition Depots, OPS Room should be described as

Technical Buildings and Airfields/ Runways as Pavements
• Notice Inviting Tender for certain specific/ special works drafted

based on the Prequalification Criteria fixed for the work based on the
policies on the matter
Category of work
• Against the part of the work (trade) which constitutes 2/3rd
or more of the total value of work
• If no part of work (trade) has more than 2/3rd cost

component, two categories having highest cost components
shall be specified.
Earnest Money contd--
Sl No Estimated cost of works Earnest Money
(iv) Over Rs. 500 lakhs and Rs. 5,75,000/- +0.5% of

upto Rs. 1500 lakhs amount exceeding Rs. 500
lakhs
(v) Over Rs. 1500 lakhs Rs. 10,75,000/- +0.5 % of

amount exceeding Rs. 1500
lakhs subject to maximum of
Rs. 15,00,000/-
ISSUE OF TENDER ON PAYMENT
Cost of tender (incl sales tax, if any) based on notice of tender shall
be in the form of Demand draft/ bankers cheque from Nationalized/
Scheduled Bank
Estimated cost of work Cost of tender

i) upto 5 lakh - 300/-
ii) 5 to 50 lakh - 500/-
iii) 50 to 200 lakh - 1000/-
iv) 200 to 500 lakh - 2000/-
v) > 500 lakh - 3000/-
Amount collected by sale of tender(s) shall be credit to account of

Miscellaneous Receipts
Cost of tender shall be non refundable if the tender bid is admitted
In case of retendering, cost of tender shall not be taken again

VARIOUS PARTS OF TENDER DOCUMENTS
• An ‘INDEX’ or a ‘CONTENTS’ page
• Forwarding letter to the tender documents
• Instructions to tenderers
• Notice of Tender – IAFW – 2162
• Contract Form:
• Authorisation Page
• Schedule ‘A’ Notes
• SCHEDULE ‘A’ (List of works and prices)
• Schedule of Credit
• General Summary
• SCHEDULE ‘B’ (List of stores to be issued to contractor)
• SCHEDULE ‘C’ (List of T and P to be hired to the contractor)
• SCHEDULE‘D’(List of transport to be hired to the contractor)
VARIOUS PARTS OF TENDER DOCUMENTS
• Tender page
• Acceptance Page
• Inclusion page for General Conditions of Contract IAFW-2249
• Inclusion page for Schedule of Minimum Fair Wages
• Special Conditions
• Particular Specifications (SSR also forms part of tender doc)
• List of Drawings & set of drawings
• Amendments to tender documents
• Quoted bids are received
• Correspondence is made with lowest contractor
• Acceptance letter
PERIOD FOR SUBMISSION OF TENDER
• Time allowed to the tenderers should be adequate to enable them
to correctly calculate and check their bids before uploading on the
portal.
• Minimum period between tender publishing date and bid

submission start date :-
Lumpsum tender - 28 days
Item rate tender exceeding than Rs 50 lakhs - 21 days

Item rate tender not exceeding Rs 50 lakhs - 14 days
• Period between bid submission end date and bid opening date shall
be seven (07) days to enable the bidder to forward DD towards
cost of tender & EMD (if applicable)physically before the bid
opening date.
• The bid submission closing time for all tenders of all formations
shall be 1800 hrs
PERIOD FOR SUBMISSION OF TENDER
• Minimum period between tender publishing date and bid submission start
date in case of Re-tender

Item rate tender - 07 days
• No amendment shall be issued after the bid submission start date.
• In case some amendments are inescapable, it shall be ensured that
bidders get a minimum period of three days from date of issue of last
amendment to the bid submission starting date
• No amendment to BOQ shall be issued.
• In case there is any amendment to BOQ, the complete BOQ shall be

revised and uploaded again.
• BOQ can not be revised if bid submission start date has already
commenced.
• In case of revision of BOQ, the period between uploading of revised BOQ
and bid submission start date shall be decided based on quantum and
nature of revisions but in no case shall it be less than three days
excluding the date of publishing of corrigendum containing revised BOQ.
POINTS TO BE KEPT IN VIEW WHILE
DRAFTING OF TENDER DOCUMENTS
• Tender form and general conditions of contract should be correct.
• Name of work, Description of buildings & their Drawings should not

contain any information of a classified nature.
• The prequalification criteria and documents required to be

submitted by the contractor in Cover 1 [Technical Bid] should be
comprehensively mentioned in the Notice Inviting tender
• NIT should contain correct Estimated cost at market rates, Cost of

tender, Earnest Money Deposit, and other details
• Schedule “A” Notes be carefully drafted after thorough study and

understanding of nature and scope of work
• Period of completion be fixed and Phasing of work be done

keeping in view various factors mentioned in Appendix 5.3 of Manual
and be explicitly mentioned in Schedule ‘A’ Notes
POINTS TO BE KEPT IN VIEW WHILE
DRAFTING OF TENDER DOCUMENTS
• Issues related to Tree cutting or existence of buildings to be
demolished on the site of work be resolved/ addressed suitably.
• Deviation limit be correctly mentioned on the tender page
• Particular Specifications be drafted keeping in view the Schedule of

Finishes, Zonal Specifications, Drawings, SSR, Technical Instructions/
Policy letters & IS Codes.
Schedule of Finishes be checked with the Schedule “A” &
Drawings.
•Makes of items are now being finalised circulated by HQ CE

Command. These be strictly adhered and ensure at least three makes
are included so that the monopoly is avoided.
• Mention the makes of items in list of makes under Particular

Specifications and not in Sch ‘A’. However the model or Cat Part
Number of one of the makes be mentioned in Sch ‘A’ with provision to
provide equivalent cat part of other makes mentioned in list of makes.
SPECIAL CONDITIONS
• MOBILIZATION ADVANCE
Payment of Mobilization Advance up to max of 10% of the
contract amount can be included for works costing Rs 10 Cr or
more to be executed in remote / difficult areas, capital intensive
works requiring specialized T & P and equipment, etc
• ENGINEERING STAFF
•The requirement of Engineering Staff for supervision of work costing

upto Rs 10 Crore is given in Condition 25 of General Conditions of
contracts [IAFW-2249]
•For works more than Rs 10 Cr special condition for the requirement

of Engineering Staff for supervision of work shall be included in the
tender documents for the purpose of which the necessary details
shall be rendered through E-2 (Plg) section in Preliminary
Information Proforma (PIP)
SPECIAL CONDITIONS
• SETTING UP OF SITE LABORATORY
•The Site Lab shall be set up by contractor for all works costing Rs
One(01) Cr or more. The type and frequency of test(s) to be carried
out in Site Lab (A Level Test), MES Lab/ Zonal Lab (B Level Test) and
in Government approved Test House/ Engineering College (C Level
Test) shall be included in the tender through a special condition
•YARD STICK
•Yard stick shall be included in tender documents in all Lump-sum
tenders for common and standard buildings technically checked by
Dy/Jt Director (C) and Approved by Accepting Officer.
•GE shall render comments on Yard sticks at tender stage
•Yard stick for complicated/ unusual bldgs shall be prepared by

Subdivision and Tech Checked by AGE (C) in GE Office and DCWE (C)
in CWE office and approved by CWE in CWE/CE Contracts
SPECIAL CONDITIONS
• T & P, MACHINERY AND TRANSPORT
•The requirement of T & P, Machinery and transport for
execution of work shall be mentioned in each tender
document(s) for the purpose of which the necessary details
shall be rendered through E-2 (Plg) Section in Preliminary
Information Proforma (PIP)
•DEFECT LIABILITY PERIOD

•To be indicated specifically whether 24 months or 36 months
as per Amdt No 48 to IAFW-2249
•CONDITIONS FOR WORKING in unrestricted/ restricted

area
•To be indicated in view of the rules promulgated by the unit
controlling the area
SPECIAL CONDITIONS
• TIME AND PROGRESS CHART USING CRITICAL PATH
METHOD
•To be included in tenders for works costing Rs 25 Lakhs or
more
•OUTPUT OF ROAD ROLLER

•In case the road work is forming part of the work
•REIMBURSEMENT & REFUND ON VARIATION IN PRICES

•In case where period of completion (JOB ODC) as per Admin
Approval is 2 years or more [Additional condition for electric
lifts]
SPECIAL CONDITIONS
•QUALIFIED TRADESMEN
•To be included in tenders for works costing Rs One (01) Crore
or more
•CONCILIATION
•To be included in tenders for works costing less than Rs Ten
(10) Crore
•DISPUTE RESOLUTION BOARD

•To be included in tenders for works costing Rs Ten (10) Crore
or more
•BLASTING
•Whether permitted or not
THANK YOU
E- TENDERING
By
Mrs. Megha Kanoje
E-tendering shall be done on website portal www.defproc.gov.in
Nodal Officer Level 1 [Jt DG (Contracts) or Director (Contracts) E-in-C’s Branch]
Nodal Officer Level 2 [CE Zone/ CE Project]
Nodal Officer Level 3 [CWE]
Nodal Officer Level 1 shall create Nodal Officer Level 2 and
Nodal Officer Level 2 shall create USERS of his office, GE(I) & Nodal Officer Level 3.
Nodal Officer of Level 3 shall create USERS of his office as well as GE’s, AGE (I)’s under his
jurisdiction
Nodal officer shall create the following users:
CREATOR PUBLISHER EVALUATOR OPENING OFFICER

DSC (Digital Signature Certificate) for e tendering shall be obtained from
Authorized Certifying Authorities
NIC
SIFY
EMUDRA
NCODE
TCS
Payment - made out of Project Contingencies
DSC - Class II
Authorize “SIGNING” and “ENCIPHERMENT”
Validity two years
The officer on posting shall carry the DSC to the new formation.
Nodal Officer of the old formation shall immediately intimate Nodal Officer
of E-in-C's Branch through email for User transfer/mapping of the individual
(moved on posting) to the new formation.
This request also can be sent by the Nodal Officer of the new formation to
E-in-C's Branch.
In case the individual moved on posting is not required to be nominated as a

user in the new formation, he/she will deposit the DSC in the new formation
and the new formation shall intimate E-in-C's Branch to block the individual
from his/her role as User.
The movement order of the individual while being posted out shall carry
specific mention as to whether the individual is carrying DSC or not.
NORMAL WORKS
Single Stage Two Cover System
Cover 1 shall contain documents as stipulated in NIT. Hard copies of the

documents uploaded in cover 1 shall reach the office of accepting
officer within specified number of days as mentioned in NIT
Cover 2 shall contain BOQ

SPECIALIST WOKS LIKE AC/STP/CRANES
Two Stage Three Cover System
Stage 1 Complete tender document with BoQ & drawing NIT (including
Appendix ‘A’) shall be uploaded for bidding with 2 covers.
Cover 1 - shall contain documents as stipulated in NIT.

Cover 2 – shall contain Technical details (design details proposed by bidders)
The cover 2 shall be opened for only bidders who qualify after technical bid
evaluation.
Stage 2 shall be closed limited type enabling only the qualified bidders to
access the tender.
In stage 2 complete tender documents including drawings shall be uploaded in

pdf/ rar format and BOQ in excel format.
At bidding stage there will be one cover i.e. BOQ

Preparation of e_tender
a) Item Rate tender
Complete tender except BOQ – prepared in MS Word and converted to

pdf format.
BOQ - prepared using BOQ template downloaded from e_portal in excel

- Password protected
The contractor/ bidder shall quote rates in figures and the rates in words
shall be automatically generated by the system
Schedule of Credit – Prepared in MS word and converted to pdf

- Duly Priced
The Amount in respect of Schedule of Credit shall be deducted from the

total amount quoted to arrive at the Contract Sum
b) Lumpsum tender
Complete tender except BOQ – prepared in MS Word and converted to pdf

format.
BOQ - prepared using BOQ template downloaded from e_portal in excel

- Password protected
- Include pre-priced lump-sum items with their pre-priced amounts
inserted in the format with provision for contractor to quote their
lump-sum amount for respective pre-priced schedule.
- Percentage above/below the pre-priced amount shall automatically be

generated/ derived by the system.
Misc Schedule - Shall also include other items (non SSR based) to be quoted
by the bidder as for item rate tender.
b) Lumpsum tender
The contractor/ bidder shall quote rates in figures and the rates in words
and percentage above / below shall be automatically generated by the
system
Schedule of Credit – Prepared in MS word and converted to pdf

- Duly Priced
The Amount in respect of Schedule of Credit shall be deducted from the

total amount quoted to arrive at the Contract Sum
The system/ template provides for incorporation of Provisional Lump

Sum And Prime cost sum
Uploading of e_tender
After the tender documents in pdf/rar format and BOQ in excel format is
ready, the tender is uploaded on the portal “defproc.gov.in” by using the DSC
of Creator
During uploading name of four Opening Officers shall be selected out of
opening officer whose DSC are mapped in by Nodal Officer
Minimum period between tender publishing date and bid submission start
date :-
Item rate tender exceeding than Rs 50 lakhs - 21 days
Item rate tender not exceeding Rs 50 lakhs - 14 days
Period between uploading of revised BOQ and bid submission start date shall
not be less than 03 clear days.
Bid submission closing time shall be 1800 hours.
Tender shall be published by the Publisher using his DSC.

Amendment to e_tender (Corrigendum)
Amendment to tender documents is prepared & issued as corrigendum in pdf

format
Following corrigendum are permissible
1. Date Corrigendum
2. Fee Corrigendum
3. BOQ Corrigendum - Revised BOQ complete is uploaded in BOQ Corrigendum
4. Other Important Documents Corrigendum
5. Technical Bid Corrigendum
6. Financial Bid Corrigendum
7. Bid Openers Corrigendum
8. Cancellation of Tender Corrigendum
9. Retender Corrigendum
10. Terms and Conditions Corrigendum
11. Others Corrigendum
Amendment to e_tender (Corrigendum)
Minimum time between bid submission start date and bid submission
end date shall be five days.
BOQ can not be revised if bid submission start date has already
Commenced.
Corrigendum [other than revised BOQ] can be issued even after bid
submission start date
[but it should desirably be avoided or be limited to minor amdts]
in case it is un-avoidable it shall be ensured that bidders get minimum

period of five days from the date of issue of corrigendum to the bid
submission end date.
Opening of Cover 1 (Technical Bid)
After bid closing time and date no change in bids is permissible
After bid submission end date, if number of bids are less than 7 –
System automatically extends the bid closing date for 7 Days
Any two out of four opening officers can open the tender
Tender shall be opened in two steps:
firstly Cover 1 (tech bid) shall be opened

and subsequently after tech bid evaluation
Cover 2 (Financial Bid) shall be opened
Technical Bid Evaluation
After opening of cover 1 Technical bid the documents shall be

scrutinized as per instructions on the matter and prequalification critria
mentioned in NIT (Notice Inviting Tender)
The details of selection of bidders shall be prepared off-line and

decision of qualifying or disqualifying the bidders (including un-enlisted
bidder based on complete documentation requirement for enlistment in
appropriate class/category & NIT) is taken by Accepting Officer
Technical Bid Evaluation Summary showing the result of selection

process duly indicating the reason(s) for rejection(s), if any, shall be
prepared and uploaded on portal by the evaluator, which shall be visible
to all on the web portal
During the process of uploading the date and time for opening of
Financial Bid (Cover 2) shall be fixed
Date of opening of the Finance Bid i.e. Cover 2 shall also be fixed at this
stage in the e-tender portal keeping in view the following timeline:-
(a) If technical bids of all bidders are found to be qualifying for opening
of financial bid, financial bids (Cover 2) shall be opened at the earliest
date, but not later than three working days after uploading technical bid
evaluation summary.
(b) If technical bids of one or more bidders are not found to be
qualifying for opening of finance bid, a period not less than seven days
shall be kept between uploading of technical bid evaluation summary
and finance bid (Cover 2) opening.
The disqualified bidder may appeal to next higher Engineer
Authority (NHEA) with a copy to the Accepting Officer through email.
On receipt of any such appeal from the bidder or query from
NHEA regarding such appeal, the date of opening of financial bid shall
be postponed by minimum seven clear days from the date of receipt of
such appeal/query from NHEA (whichever is later) to enable NHEA to
dispose off the representation.
Opening of Financial Bid
Financial bid of the bidders qualified in the T Bid Evaluation shall be

opened by the opening officers
In case the bidder has failed to quote on the revised BOQ, such bid shall
be treated as willful negligence by the bidder and his quotation shall be
considered as non bonafide.
In such case the lowest tenderer shall be the lowest amongst the
valid/ bonafide bids only. The remark of “Non Bonafide Finance Bid”
shall be endorsed against such bidder in CST and Financial Bid Opening
Summary.
Print out of individual Finance Bid and Comparative Statement of Rates

shall be signed by the opening officers and kept on record.
Financial Bid Evaluation
Market Analysis prepared offline shall be the basis of Financial bid
Evaluation. Market Analysis and the Minute for taking decision on
acceptance of lowest tender shall be kept on record duly signed by the
officials concerned.
Award of contract
The acceptance letter shall be uploaded on website (under AOC Menu)
using DSC of the Evaluator
Comparative statement of tenders (CST) in triplicate off-line shall be

prepared and signed by the Opening Officers, recommendation of E8
and orders of Accepting officer shall be endorsed
Validity of bids shall commence from the next date subsequent to the
bid submission end date (financial bid). It is normally kept as 60 days.
Prevention of cartelization
All accepting officers shall examine the MIS report on the web portal
and ensure that there is no cartelization
In case any cartelization is found action against the contractor(s) shall be

initiated and action shall be taken to retender immediately
Event of uploading from same IP address need not be cartelization

unless other supporting reasons/ evidence exist.
Probability of quoting through internet centers / café cannot be ruled

out and can not be objected.
Date of receipt of tender - as referred to in tender documents shall be
the bid submission end date
Tender Id - shall be specifically mentioned on all correspondence in

tendering process (after creation of tender till AOC)
MILITARY ENGINEER SERVICES EPROCUREMENT PORTAL
eTENDERING
BOQ IS TO BE PREPARED IN SUITABLY FORMATTED EXCEL FILE
DOWNLOADED FROM PORTAL
eTENDERING
ENTRIES & FORMULAE NEED TO BE CHECKED & SHEET NEED TO BE VERIFIED

BOQ IS TO BE PREPARED IN SUITABLY FORMATTED EXCEL FILE
DOWNLOADED FROM PORTAL
eTENDERING
THE EXCEL FILE IS PROTECTED USING A PASSWORD

MODIFICATIONS IN NOTICE INVITING TENDER NECESSARY
eTENDERING
MODIFICATIONS IN NOTICE INVITING TENDER
eTENDERING
eTENDERING
eTENDERING
DIGITAL CERTIFICATE AUTHENTICATION
DASHBOARD: All actions to be taken are highlighted here
TENDER CREATION AND LIST OF TENDERS
NEW CALL FOR TENDER CAN BE CREATED OR THE TENDER IN
PROCESS OF CREATION CAN BE DELETED
TENDER CREATION: BASIC DETAILS
TENDER CREATION: COVER CONTENTS: COVER 1
TENDER CREATION: COVER CONTENTS: COVER 2: BOQ
TENDER CREATION: COVER CONTENTS: COVER 2: BOQ
TENDER CREATION: COVER CONTENTS: COVER 1 & 2
TENDER CREATION: NIT DOCUMENTS UPLOAD
TENDER CREATION: NIT DOCUMENTS UPLOAD: VERIFICATION
TENDER CREATION: NIT DOCUMENTS UPLOAD: VERIFICATION
TENDER CREATION: NIT DOCUMENTS UPLOAD:VERIFIED
TENDER CREATION: WORK/ ITEM DETAILS
TENDER CREATION: WORK/ ITEM DETAILS
TENDER CREATION: TENDER FEE & EMD DETAILS
TENDER CREATION: CRITICAL DATES
TENDER CREATION: LIST OF BID OPENERS
TENDER CREATION: WORK / ITEM DOCUMENTS
TENDER CREATION: WORK / ITEM DOCUMENTS: BOQ
TENDER CREATION: WORK / ITEM DOCUMENTS: BOQ: VERIFICATION
TENDER CREATION: WORK / ITEM DOCUMENTS: CHECK BOQ
BOQ NOT COMPLIED. PLEASE PROTECT THE BOQ SHEET AND UPLOAD BOQ1
NECESSARY CORRECTIONS CARRIED OUT: BOQ FORMAT IS COMPLIED

TENDER CREATION: WORK / ITEM DOCUMENTS: BOQ VERIFIED
TENDER CREATION: WORK / ITEM DOCUMENTS: TENDER
DOCUMENTS OTHER THAN BOQ BEING UPLOADED
TENDER CREATION: WORK/ ITEM DOCUMENTS: VERIFICATION OF
TENDER DOCUMENTS
TENDER CREATION: WORK/ ITEM DOCUMENTS: TENDER
DOCUMENTS VERIFIED
TENDER CREATION: WORK/ ITEM DOCUMENTS: BOTH DOCUMENTS
VERIFIED: PRESS NEXT TO PROCEED
TENDER CREATION: OTHER IMPORTANT DOCUMENTS
VIEW TENDER INFORMATION CONSOLIDATED ON ONE SHEET
PUBLISH TENDER
PUBLISH TENDER
PUBLISH TENDER
PUBLISH TENDER
PUBLISH TENDER
PROBLEMS AND SOLUTIONS
1. How to give breaks and discontinuous page

numbering in the word document containing tender
[other than BOQ] ?
2. How to protect unprotect a BOQ [excel file

downloaded from portal ? testing
3. How to protect a BOQ file / sheet after carrying out

all corrections and after validation ?
4. How to prepare BOQ for Furniture tender, which is

to be accepted part-wise ?
5. How to prepare BOQ for lumpsum tender ?
6. How to upload drawings ? PDF & WINRAR

THE TENDER APPEARS ON THE LIST OF PUBLISHED TENDERS
CORRIGENDUM TO TENDER DOCUMENTS
• CORRIGENDUM IS DONE THROUGH pdf FILE UPLOADED IN REFERENCE TO TENDER ID

• CORRIGENDUM IS FIRST CREATED AND THEN PUBLISHED
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
OPENING OF COVER 1
TECHNICAL EVALUATION
DASHBOARD
OPENING OF FINANCIAL BID: COVER 2
FINANCIAL EVALUATION: LIST OF TENDERS FOR EVALUATION
FINANCIAL EVALUATION: LIST OF FIRMS WHO HAVE QUOTED THE
TENDER: AMOUNT; BID RANK & ACCEPTANCE/ REJECTION TO BE
INSERTED
FINANCIAL EVALUATION: DETAILS DULY FILLED/EVALUATED
FINANCIAL EVALUATION: COMMITTEE DETAILS UPLOADED
FINANCIAL EVALUATION: Summary
FINANCIAL EVALUATION: Summary: PRINT
AWARD OF CONTRACT: LIST OF TENDERS
AWARD OF CONTRACT: RELEVANT DETAILS TO BE FILLED AND
ACCEPTANCE LETTER TO BE UPLOADED
AWARD OF CONTRACT: RELEVANT DETAILS TO BE FILLED AND
ACCEPTANCE LETTER TO BE UPLOADED AND SAVE
PRINT AWARD OF CONTRACT
PRINT AWARD OF CONTRACT
THANK YOU
TECHNICAL BID EVALUATION
SELECTION OF CONTRACTORS
By
Mrs. Megha Kanoje
OPENING OF TENDERS
• The date for opening of tenders is fixed after corrigendum has
been issues/ uploaded.
• After the bid submission end date, if the number of bids received
are less than seven, the system will automatically extend the bid
closing date for a period of 7 days.
• After this extension of 7 days, the system does not show the
number of bids till the Technical bids (Cover 1) are opened.
• In case still the number of bids are assessed to be less than seven
and the Accepting Officer feels that chances of healthy competition
are less, he can take a call to postpone the bid submission end
date or to re-invite the tender.
OPENING OF TENDERS
•However, if the Accepting Officer decides to go ahead with opening
of tender, then the tender shall be opened in two steps. In the first
step, Cover 1 (Technical Bid) shall be opened. In the second step,
Cover 2 (Financial Bid) of applicants, who have been found eligible
after technical evaluation of Cover 1, shall be opened.
• Once it is decided that the tender is to be opened the two opening

officers (out of 04) detailed for opening shall open the tender by
using their digital signatures.
•The documents submitted by the tenderers in their technical bid are

downloaded, printed and authenticated by the opening officers by
initialing duly dated.
SELECTION OF CONTRACTORS/
• The documents received from the opening officers are scrutinised by
E 8 section and are put up to Accepting officer for technical bid
evaluation.
•Technical bid evaluation shall be done in terms of eligibility criteria

mentioned in Notice Inviting Tenders (NIT) and the policies in vogue.
•In case the number of bidders from the eligible class and above
(fulfilling the eligibility criteria in all respects) are 07 or more then
tenders of eligible class contactors shall (generally) be admitted.
•In case 07 bidders are not qualifying from the eligible class and
above then bidders from one class below shall also be considered (in
case of remote and difficult area two class below shall also be
considered).
•In case qualifying bidders are still less than 07, decision shall be
taken by Accepting Officer either to go for retender or to go ahead
with opening of cover 2.
• In case even after considering one class below and retendering, the
required competition is not achieved for a work the Accepting officer
may decide to admit tender of tenderers two class below after
obtaining permission.
•The selection of contractors/Technical bid Evaluation shall be put up

to the Accepting Officer along-with recommendations of Section Head
of E8 section on the statement given in Appendix 3.3 of Manual on
Contracts.
•Accepting Officer shall record his orders personally along-with

reasons for non-admittance of tender if any duly initialed & dated.
•In case any bid is rejected the date of opening of financial bid shall
be after 07 days to afford opportunity to the aggrieved bidder to
approach Next Higher Engineer Authority if it so desires.
IN CASE ONLY ONE BID IS RECEIVED
• In case only one bid is received the Accepting officer shall decide
whether to retender or to open the Technical Bid (Cover I)
• In case the bid qualifies for opening of financial Bid (Cover II) and
the financial bid is opened and found reasonable, the bid shall be
accepted after obtaining approval of NHEA in terms of Para 47 (f) of
DWP-2020. In this connection E-in-C’s Br letter No
66546Manual/594E8 dated 29 Sep 2016 can be ref.
•The above procedure shall also apply to the case wherein only one
bid qualifies for financial bid (out of more than one received)
• For all high value works costing more than Rs 25 Crore (consultancy
work costing more than Rs 50 Lakh) & (Specialist Works costing
more than Rs 2 crore) selection of contractors shall be done through
Tender Selection Committee.
• Composition of Tender Selection Committee
• Additional Chief Engineer/ Senior most Director [CHAIRMAN]
• Director (Contracts)
• Director/ SO1 of Zone
• Officer of the rank of Director/ SO1 from outside the Zone (to be
detailed by Chief Engineer Command)
• Selection made by tender selection committee shall be
recommendatory in nature
• In case CE Deviated from the recommendations of the committee
specific reasons shall be placed on record and submitted to CE Comd
• Members of tender selection committee shall render undertaking
that none of them have any personal interest in the contractors
participating in the tendering process.
SELECTION OF CONTRACTORS FOR HIGH VALUE WORKS
• For Works costing more than Rs 50 Crore & Specialist E/M Services
costing more than Rs 5 Crore the Eligibility Criteria shall be fixed in
view of CVC Guidelines.
• Eligibility criteria shall be clearly brought out in the Notice of Tender:
• Average Annual Financial Turnover during last 3 years should be at
least 30% of the Estimated Cost
• Experience in last 7 years of completing: 03 similar works not less
than 40% or 02 similar works not less than 50% or 01 similar work
not less than 80% of the Estimated Cost
• Other criteria related to performance of works, Technical personnel
employed, equipments, T & P, etc required for the work.
• In case of deviation from CVC Guidelines case for approval of
prequalification criteria to be taken up with E-in-C’s Branch
• The value of previously completed works be enhanced @ 5% per year

to bring them at par with present cost.
• For other prestigious buildings/structures ,not fulfilling the criteria

mentioned above, where PQC for issue of tender is considered
desirable by the Accepting Officer to be included in the NIT, prior
approval of the E-in-C shall be obtained.
SELECTION OF CONTRACTORS FOR RUNWAY WORKS
Runway Works Involving Pavement Work Costing upto Rs 20
crore: Contractors who have Experience of having satisfactorily
completed runway pavement work(s) during last 7 years, ending last
day of month previous to the month of bid submission start date as
follows:
Three similar completed works costing not less than the amount
equal to 40% of the estimated cost.
or
Two similar completed works costing not less than the amount
or
One similar completed work costing not less than the amount
involving similar pavement (rigid/ flexible as the case may be) may be
considered for issue of tender.
Production and vetting of satisfactory performance reports of the
qualifying runway works will be essential during scrutiny.
SELECTION OF CONTRACTORS
FOR RUNWAY WORKS COSTING MORE THAN RS 20 CRORE
Runway Works Involving Pavement Work Costing more than Rs 20

crore shall be governed by provisions contained in Para 3.5.3.2 (b) of
Manual on Contracts 2020 duly indicating
Experience of Runway/ Airfield Works
Average Annual Financial Turnover
T&P at the submission of bid + T&P during Execution
Equipment mandatory for Runway works.
Supervisory Staff for Execution
Defect liability period

SELECTION OF CONTRACTORSFOR SOLAR POWER WORKS
FOR MES ENLISTED CONTRACTORS
(i) The contractor should be enlisted in class #
(ii) The contractor should have MoU with solar power firms of rating
1A/1B/1C/2A/ 2B/2C given by CRISIL/CARE/FITCH/ICRA/SMERA/Brick
Work Ratings India Pvt Ltd and having experience of having successfully
completed & commissioned Solar Power Plants in Government
Department/ PSU during last seven years ending last day of month
previous to the month of bid submission start date, should be either of
the following :-
One work of capacity not less than 80% of capacity specified in the NIT
Or
Two works of capacity not less than 50% of capacity specified in the NIT
Or
Three works of capacity not less than 40% of capacity specified in the NIT
(iii) Enlisted contractors who are either having above mentioned solar
rating themselves fulfilling the criteria laid down here-in-below or
meeting the criteria laid down for un-enlisted contractors shall also be
considered eligible
SELECTION OF CONTRACTORSFOR SOLAR POWER WORKS
FOR UNENLISTED CONTRACTORS
(i) The contractor should meet the enlistment criteria of Class # with
regard to annual turnover, financial criteria (solvency, working capital)
satisfactory completion of similar works and other requirements as per
details given in Para 1.4 & 1.5 of Section 1 of Manual on Contracts 2020.
(ii) Contractor should have MoU with solar power firms of rating
1A/1B/1C/2A/ 2B/2C given by CRISIL/CARE/FITCH/ICRA/SMERA/Brick
Work Ratings India Pvt Ltd and having experience of having successfully
completed & commissioned Solar Power Plants in Government
Department/ PSU during last seven years ending last day of month
previous to the month of bid submission start date, should be either of
the following :-
One work of capacity not less than 80% of capacity specified in the NIT
Or
Two works of capacity not less than 50% of capacity specified in the NIT
Or
Three works of capacity not less than 40% of capacity specified in the NIT
However requirement of MoU is exempted for contractors who
themselves are having requisite rating by rating agency mentioned
here-in-before.
• Un-enlisted contractor shall be required to submit all documents
required meeting criteria given in NIT and for enlistment in eligible
class and category in MES
ADDITIONAL POINTS TO BE SEEN DURING SELECTION:
• Whether there are any adverse remarks in the work load return
circulated by appropriate authority
• Contractor is not removed/ suspended/ blacklisted/ declared

insolvent/ convicted etc.
THANK YOU
1. Estimation of quantities
2. Analysis of prices/
Rate analysis
3. Scrutiny of tender/
Market Rate analysis
ESTIMATION OF QUANTITIES:
It is process of predicting the probable cost of

construction project by calculating the quantity of items and
their costing with help of market rates before undertaking it.
ACTIVITIES INVOLVED IN ESTIMATION:
• Taking off: Deriving dimensions Length, Breadth &

Height from drawings and recording on take off sheets
systematically.
• Squaring: Multiplying the timesing & dimensions taken
off the drawings to arrive at Length, Area, Volume
ACTIVITIES INVOLVED IN ESTIMATION:
• Abstracting: Primary function of the ABSTRACT is to classify

and group the various items preparatory to billing, and to reduce
the dimensions to the recognized units of measurements.
• Billing: A bill of quantities is a document used in tendering in
the construction industry in which the items of construction are
listed with their unit of measurement and quantity to facilitate
incorporation of unit price and hence the pricing of construction
project or its components.
• BILL OF QUANTITIES
Sl No Description Unit Quantity Unit Price Total

1 15 mm cement SQM 15 145 2175.00
plaster
Cost:
Cost is the amount of inputs incurred in producing a
product. Cost can include labor, capital, materials, bills,
salaries and wages of workers, and other transactions like
marketing and distribution and shipping
Price:
Price is what you pay for goods or services you acquire.
Price is original cost + profit
Value:
Value is what goods or services pay you i.e. worth.
Value varies from customer to customer.
BASIS PRICE COST VALUE
Meaning Price is the Cost is the amount Value is the
amount paid for incurred in utility of a good
acquiring any producing and or service.
product or service. maintaining
something.
Ascertain- Price is Cost is ascertained Value is

ment ascertained from from the ascertained
the consumer's producer's from the user's
perspective. perspective. perspective.
Estimation Through Policy Through Fact Through Opinion
Impact of Prices of product Cost of inputs rise Value remains

variations increase or or fall. unchanged.
in market decrease.
Money It can be It can also be It is not

calculated in calculated in calculated in
terms of money. monetary terms. terms of money.
ANALYSIS OF PRICES/RATES
• Determination of rate per unit of an item of
work requires following:
– Cost of materials
– Cost of labour
– T&P (Tools & Plants)
– Misc petty expenses
– Water Charges
– Profit & overhead expenses of contractor
Analyzed Rate of an item depend on:
Material:
– Specs of works & materials
– Quality of materials
– Proportion of mortar
– Method of construction
– Rates of materials (considering discounts)
– Distance from source of material (for transportation)
– Rate of transport
– Loading / unloading charges
– Location of site
– Wastage
Labour:
–Number of different types of labour reqd.
–Wages of labour
T&P (Tools & Plants):

–Hire charges per day (incl fuel and operator) for Plants
is taken into account.
–For T&P which can not be accounted in detail Lump-
sum provision is made
Lumpsum provision is made for Misc petty expenses

(Sundries) which can not be accounted in detail.
• Water Charges
• @ 1.5% is allowed on total cost if water is
contractor’s supply
• @0.375% in case water is department supply
Contractor’s Profit + Overheads +Establishment charges =

10% + 5% + 2 ½% = 17 ½ %
These are elaborated as follows:

• Contractor’s Profit: 10%
– It is the difference between the all inclusive construction
cost and the contract amount paid by the employer
– The net profit on the building contract may be 10% but
the return on rolling capital is much more and depends
on the turnover of the contractor firm.
• Overhead Cost: 5%:
Expenses incurred for a job which can not be conveniently
allocated to any specific item of work.
• Fixed overheads:
– For setting up of efficiently operating work site
– Temporary site office , storage sheds
– Labour camp, canteen, toilets, fencing, approach road,
mixing and casting platform, water tank, curing tank
– Electric and water connection
– Demolition of existing buildings and site clearance (if not
paid separately)
– Shifting of tools, plants, machinery, permanent labour
• Variable overheads:
– Finance charges on the rolling capital employed
– Site office expenses &salaries of site engrs & staff
– Furniture and equipments at site office
– Repair and upkeep of temporary works and vehicles
– Pumps for pumping water
– Owning/ hire charges of crane/ hoist/ scaffolding/
pumps, etc
– Maintaining a skeleton team for repair of defects
• Establishment Cost: 2.5%
– Running of permanent head office of the firm
– Salary of Head Office Staff including accountant,
estimator, administrative staff/ working partners
– Stationery/printing/postages/Telephone expenses
– Legal fee to lawyers, professional fee to consultants
– Travelling expenses
– Rent & taxes
On materials supplied by department, only profit is

allowed to contractor but the overheads and
establishment cost are not allowed
Labour
• Labour Output is the capacity of doing work by a
skilled or un-skilled labour in the form of
quantity of work per day
• Labour Constant is stated in mandats required
(of 8 hrs) per unit of work for each category of
labour
Labour Constant = 1 / Labour Output
“IS:7272 (Part-I)-Recommendations for labour
output constants for building work” serves as
basis for compiling labour constants by various
departments & authors by rationalizing them
Labour
Labour constants are only indicative.
Actual labour outputs differ depending on
conditions of work as under:
• Weather/ climate,
• Continuity
• Incentive
• Fatigue/ resting time
• Incidental holdups
• Preparatory works
• Organization
• Efficiency of labour/ supervision
• Quality of work
Materials for Brickwork
In case of modular bricks (size 19cm x 09cm x 09cm)
Volume of modular bricks = 0.2x0.1x0.1 = 0.002
No. of bricks per cum = 1/(0.002)=500
Vol occupied by bricks = 500 x 0.19 x 0.09 x 0.09 = 0.77 cum
Mortar required per cum = 1-0.77= 0.23 cum
In case of old size bricks (size 23cm x 11cm x 7cm)
Considering 7% allowance for thicker joints in old size bricks
Mortar per cum = 0.246 cum
No. of old size Bricks = 0.75/(0.23x0.11x0.07) =425x1.07(for
wastage)= 455
Materials for Brickwork
– Dry volume of mortar increase by 25%
For Mod. Brickwork = 1.25 x 0.23 = 0.28 cum
(i.e. 28% of brickwork)
For old size Brickwork = 1.25 x 0.246 = 0.30 cum
(i.e. 30% of brickwork)
So, for 1 Cum Brick work with CM 1:6:
Cement = 0.3/(1+6)= 0.043 cum (say 0.045 cum)
=0.045x1440 kg/cum=64.8 kg =64.8/50=1.3 bag
Sand = 6x 0.045= 0.27 cum
Materials for Plaster
For 100 sqm of 12 mm thick Plaster in cement mortar 1:6:
Volume of Wet Mortar = 0.012 x 100 = 1.2 cum
Add 36% to fill joints & uneven surface = 1.36 x
1.2=1.63 cum
Increase by 25% for dry volume = 1.25 x 1.63 = 2.04cum
Cement= 2.04/(1+6)= 0.30 cum=0.3x1440 kg/cum=432
kg =432/50=8.64 bag
Sand = 6x 0.30= 1.80 cum
Materials for Concrete
For any concrete total dry volume per cum of compacted
concrete = 1.50 to 1.55 cum
For 1:2:4 concrete:
Cement = 1.5/(1+2+4) = 0.214 cum = 0.214 x 1440 = 308 kg
= (6.16 bags)
Sand = 2 x 0.22 = 0.44 cum
Coarse Aggregate = 4 x 0.22 = 0.88 cum
Labour constants (PCC/RCC)
MASON OPERATOR MAZDOOR MATE @ BHISHTI
10% of
Mazdoor
PCC IN FDN 0.10 0.07+0.07= 1.70 0.17 0.70
(Any Mix)
0.14
RCC IN FDN 0.17 0.07+0.07= 2.00 0.20 0.90
(Any Mix)
0.14
RCC IN 0.20 0.07+0.07= 3.00 0.30 0.90
BEAM/LINTEL/
CANTILEVER 0.14
RCC IN 0.23 0.07+0.10= 3.50 0.35 0.90
COLUMNS
0.17
RCC IN 0.24 0.07+0.07= 2.50 0.25 0.90
SUSPENDED
SLABS 0.14
Labour constants (Plaster)
Plaster, 12 mm thick, any mix (Per sqm):
Mason= 0.08
Mazdoor = 0.04 (Half of Mason)
Bhisty = 0.03
Labour constants (Brickwork)
Brickwork, any mix (Per cum):
Mason= 0.94
Mazdoor = 1.88 (Twice of Mason)
Bhisty = 0.20
Labour constants (Earthwork)
EXC IN TRENCHES IN MAZDOOR MATE @ 10% of
Mazdoor
SOFT SOIL 0.53 0.05
HARD SOIL 0.93 0.09
SOFT ROCK 2.12 0.21
HARD ROCK 3.18 0.32

Rendering 15 mm thick in cement mortar (1:3) on fair faces,
finished even and smooth (SQM)
Description Quantity Rate Amount
MATERIAL
(i) Cement 11.79 4.4 51.88
(ii) Sand 0.033 600 19.55
(A) 71.42
LABOUR
(i) Skilled 0.04 500 20.00
(ii) Un-Skilled 0.1 360 36.00
(iii) Bhisty 0.04 380 15.20
(B) 79.74
Total of (A) & (B) 151.17
Rate incl OHP 17.5% & Water Charges 0.0375%= 178.29
Rate per Unit incl GST & LWC 201.46
Brickwork with sub class 'B' old size bricks built in Cement
mortar (1:4) (CUM)
MATERIAL
(i) Bricks 455 3 1365.00
(ii) Cement 64.06 4.4 281.86
(iii) Sand 0.26 600 156.00
(A) 1802.86
LABOUR
(i) Skilled 0.98 500 490.00
(ii) Un-Skilled 1.93 360 694.80
(iii) Bhisty 0.2 380 76.00
(B) 1260.80
Total of (A) & (B) 3063.66
Rate incl OHP 17.5% & Water Charges @ .0375%= 3613.30
Mild Steel TMT bars 6-8 mm dia cut to length bent to shape
& binding with MS wire for reinforcement (Kg)
MATERIAL
(i) TMT bars 1.05 41.00 43.05
(ii) Binding wire 0.013 45.10 0.59
(A) 43.64
LABOUR
(i) Skilled 0.011 500 5.50
(ii) Un-Skilled 0.011 360 3.96
(B) 9.46
Total of (A) & (B) 53.10
Rate incl OHP 17.5% & Water Charges @ 0.0375%= 62.62
150 mm thick PCC 1:4:8, type D-2, as in hard standing (SQM)
MATERIAL
(i) Cement 24.29 4.4 106.89
(ii) Sand 0.07 600 40.50
(iii)Stone Agg 0.14 800 108.00
255.39
LABOUR
(i)Skilled 0.05 500 25.00
(ii) Un-Skilled 0.3 360 108.00
Total 133.00
Total A + B 388.39
Rate incl OHP 17.5% & Water 458.07
Charges
100 mm thick Cement Concrete 1:2:4, B-2 as in floors (SQM)

MATERIAL
(i) Cement 30.84 4.4 135.70
(ii) Sand 0.04 600 24.00
(iii)Stone Agg 0.08 800 64.00
(A) 223.70
LABOUR
(i)Skilled 0.05 500 25.00
(ii) Un-Skilled 0.35 360 126.00
(B) 151.00
Total A + B 374.70
Rate incl OHP 17.5% & Water 441.92
Charges
Two Coats of Cement base paint on wall surfaces(SQM)
MATERIAL (For 10 Square Metre)
(i) Cement base Paint incl wastage 2.07 25 51.75
51.75
LABOUR (For 10 Square Metre)
(i) Painter 0.55 500 275.00
(ii) Un-Skilled 0.2 360 72.00
(iii) Bhisty 0.2 380 76.00
Labour 423.00
Brushes, sand papers etc(5% of labour) 4.26
Scafolding, ladder, Ghori, Rehri etc.20%of material 10.35
Total of (A), (B), (C)& (D) 489.36
Rate for 10 Sq.m incl Over Head, Profit 577.15
17.5% & Water Charges
Rate per Unit 57.71
Reinforced concrete hume pipes 600 mm dia class NP-2
MATERIAL ( Available in 2 m length)
(i) RCC pipe mm bore-NP-2, incl
one color 2 800 1600.00
(iii) GST 200.00
(iv) Cement for joint 3.5 4.4 15.40
(v) Spun yarn 1.50
(A) 1816.90
LABOUR(Cosidering 2 metre pipe)
(i) Skilled Pipelayer&Jointer/mason 0.2 450.00 90.00
(ii) Mazdoor 0.2 350.00 70.00
(B) 160.00
Total of (A) & (B) 1976.90
Rate incl O H P 17.5% & Water Charges 2331.57
Rate per Unit = 2331.57/2= 1165.78
Analysis of tender
1. Scrutiny of tenders : Appx 3.6
2. Analysis of Lump Sum tenders based on SSR : Appx 3.7
3. Rules for dealing with freak rates : Appx 3.8

SCRUTINY OF TENDERS
1. Due care should be taken to incorporate correct
formula in the BOQ for arriving at amount (rate x
quantity) for individual items, total amount for the
tender (Contract sum) and contractor’s percentage
2. Comparative statement be independently prepared in
excel sheet to cross check the CST received from
e_portal
3. It has been observed in certain cases that first item
has not been considered for arriving total amount of
tender (due to incorrect formula)
4. Credit Schedule amount has to be adjusted against
total amount to work out Contract Sum
ANALYSIS OF LUMP SUM TENDERS BASED ON SSR
Sl No Description Estimate at Actual cost
par MES to
Schedule contractor
1 Government stores issued under Sch ‘B’ Nil Nil

2 Balance of materials to be supplied by the contractor 5000000 7000000
3 Labour 1000000 2300000
Total of 1 to 3 6000000 9300000
4. (a) Add OHP on Ser 1 @10% - Nil
(b) Add OHP on ser (2) & (3) @ 17 ½ % - 1627500
Total 6000000 10927500
6 Percentage above/ below SSR (at market rates) 82.125%
# Minimum Fair wages (without OHP) considered 130 % above SSR which already
includes OHP
* Market rate of Materials (without OHP) considered 40% above SSR which already
includes OHP
FREAKISHLY HIGH/ LOW RATES
• As per Contract Manual Appendix 3.8, rate of any item
which is more than 50 % above or below the ‘reasonable
market rate’ (as assessed by the dept) is considered to
be freakishly high or freakishly low
• The correctness of estimation of quantity in respect of

such items shall be checked by Accepting officer/ got re-
verified from GE/AGE that the quantity of these items on
the basis of known facts are reasonably estimated
• Freakishly high rates shall be referred to lowest

tenderer for revision / reduction of rates and his response
shall be considered while arriving out the contract sum.
FREAKISHLY HIGH/ LOW RATES
• Considering the overall reasonableness and the financial
implication of freak items, the decision shall be taken by
the Accepting Officer as to whether to go for retender or
Acceptance of tender
• The items considered freakishly high /low shall be

conveyed to GE to restrict the variation in quantities of
freak items (quantity of Freakishly high item not to be
increased and quantity of Freakishly low item not to be
decreased beyond 25%
• If restriction of quantities (within 25%) is inescapable

such deviations shall have prior approval of CE/CCE.
Scrutiny of Quoted Tender
Documents
Acceptance of contracts
Acceptance of tenders while

proceeding on posting/ retirement
Financial Concurrence
SCRUTINY AND ACCEPTANCE OF TENDER
• The financial bids opened by the opening officers and comparative
statement of rates generated by the e-portal system shall be signed
by the opening officers on all pages and scheduled in CSTs filled and
signed in triplicate.
• The financial bids shall be checked to ensure that the tenderer has
quoted on the final revised bid only
• It is desirable to test/ cross check the calculations independently
• Market rate analysis of the scope of work covered in the tenders is

prepared and compared with the tendered rates.
• Market rate analysis of lump-sum tender –Appendix 3.7
• Check for freak rates and take action as per Appendix 3.8.
• If the lowest tender as a whole is found to be competitive &

reasonable, it can be considered for acceptance subject to the
availability of funds.
• Re-tendering shall normally be resorted to when
• the lowest tender is found to be unreasonable

OR
• lowest tender exceeds amount available in admin approval
and it is proposed to modify the design to bring down the cost
OR
• lowest tender is revoked or revised upward or withdrawn due
to any reason
When only One Single Eligible Bid qualifies in 'T' Bid evaluation (in
Single Stage Two Cover System) :
In such cases, the Accepting Officer will decide whether to proceed

for opening of Cover 2 (Financial Bid) or to retender.
If he decides to proceed for opening of Cover 2 of the qualified bidder

and after opening of Cover 2, if the bid is considered reasonable, the
Accepting Officer can accept the tender after obtaining approval of
NHEA in terms of Para 47(f) of DWP 2020.
A report showing reasons for acceptance of single priced tender shall

be forwarded to CDA/PCDA as per format given in Appendix 3.11
LAPSES IN ACCEPTANCE OF TENDERS
• Reduction in scope of work after opening of tender so as to bring it
within available funds for acceptance of tender.
• Affecting major changes in scope of work after opening of tender
• Negotiations with lowest tenderer
• Obtaining Voluntary reduction from lowest tenderer to bring the

quotation within available funds or acceptable level to accept the
tender
• Acceptance of tender without properly analysing the lowest tender

at market rate
• Resorting to retender without proper evaluation of quoted rates

resulting into higher quotation in 2nd/ subsequent calls
ACCEPTANCE OF TENDERS WHILE PROCEEDING
ON POSTING / RETIREMENT
• Attention is invited to para 3.24 of Manual on Contracts wherein the

procedure to be adopted for acceptance of tender and placing of
supply/ job orders at the time (during last 20 days) of transfer/
retirement of accepting officer, is laid down.
• Single Tender Contracts shall be dealt in terms of para 432 of RMES
• Acceptance of Single valid tender/bid out of many (more than 01)

tenders/bids admitted at the time of technical evaluation of bids,
shall required prior permission of next higher engineer authority
• Power of acceptance of contract and issues of technical sanction is

given in Table ‘B’ of RMES
The following information/ confirmations/ documents shall be

submitted from E-8-side:
(a) Abstract in duplicate for the building/works for which market

analysis is submitted.
(b) Comparative Statement of Rates/lump-sum amounts.
(c) Confirmation that market rates for materials are those at which
materials are being actually procured by contractors on ongoing
works or independently verified from manufacturers or their
authorised dealers whichever is less.
(d) Confirmation that market wages for labour are those actually
being paid by contractors presently on ongoing works verified from
contractor's wage books and wage sheets and at the time of
disbursement.
The following information/ confirmations/ documents shall be

submitted from E-8-side:
(e) Confirm take off and pricing is counter checked w.r.t. tender
provisions including drawings by AE (QS & C)/Astt. Dir (C)/Dy. Dir
(C)/Jt. Dir (C).
(f) CTC of tender documents duly amended.
(g) 32 Point proforma as per format given at Appendix 3.14.
(h) Market analysis of building/works including services.
(j) Certificate under signature of CE that lowest tender is

reasonable and retendering is not likely to reduce the rates
substantially.
Note : The 15 Point profonna as per para 3.23(g) above is to be

further developed into standard 32 Point profonna. 32 point
proforma shall only be submitted with the FC documents.
MATERIALS, TOOLS & PLANTS
AND
Engineers & Supervisors
By
Mrs. Megha Kanoje
Materials [Condition 10]
• (A) Materials to be provided by the Contractor
• The contractor shall, at his own cost and expense, provide all
materials required for the Works other than those listed in Schedule
“B” which are to be supplied by Government.
• All materials to be provided by the Contractor shall be new and in

conformity with the specifications laid down in the Contract
• The Contractor shall, if requested by the Engineer-in-Charge, furnish

proof, to the satisfaction of the Engineer-in-Charge that the materials
so comply.
• If the cost of particular item of material in a contract exceeds Rs 1

lakh, these materials shall be procured only from the manufacturers
or from their authorized dealers/ stockiest (except in case of materials
of local origin) and the contractor shall furnish proof thereof to the
satisfaction of GE that the material so comply.
• The Contractor shall, at his own cost and expense and without delay,
supply to the Engineer-in-Charge samples of materials proposed to be
used in the Works.
• The Engineer-in-Charge shall within seven days of supply of samples

or within such further period as he may require and intimate to the
Contractor in writing whether samples are approved by him or not.
• If samples are not approved the Contractor shall forthwith arrange to

supply to the Engineer-in-Charge for his approval fresh samples
complying with the specifications laid down in the Contract.
• The approved samples of materials which lose their identity after
incorporation in the work shall be preserved with the GE till
completion of the work.
• Thereafter the same shall be removed in ‘as is where is’ condition by

the contractor with prior permission of the GE, without any extra cost
to the government.
• The approved samples of materials which do not lose their identity

after incorporation and which can be incorporated in the work as
decided by the Engineer-in-Charge shall be allowed to be used in the
sample block/work.
• The Engineer-in-Charge shall have full powers to require removal of
any or all of the materials brought to Site by the Contractor which are
not new and in accordance with the Contract specifications or do not
conform in character or quality to samples approved by him.
• In case of default on the part of the Contractor in removing rejected

materials the Engineer-in-Charge shall be at liberty to have them
removed by other means at the Contractor’s expense and risk.
• The Engineer-in-Charge shall have full powers to require other proper

materials to be substituted for rejected materials and in the event of
the Contractor refusing to comply he may cause the same to be
supplied by other means.
• All costs/charges and expenses which may attend upon such

substitution shall be borne by the Contractor.
• The Contractor shall indemnify Government or any Agent, servant or
employee of Government against any action, claim or proceeding
relating to infringement or use of any patent or design or any alleged
patent or design rights and shall pay any royalties or other charges
which may be payable in respect of any article or material or part
thereof included in the Contract.
• In the event of any claims being made or action being brought against
government or any agent, servant or employee of Government in
respect of any such matters as aforesaid, the Contractor shall
immediately be notified thereof.
• Provided that such indemnity shall not apply when such infringement
has taken place in complying with the specific direction issued by
Government but the Contractor shall pay any royalties or other
charges payable in respect of any such use, the amount so paid being
reimbursed to the Contractor only if the use was the result of any
drawing and/or specifications issued after submission of the tender.
• Condition 63- all charges on account of any tax and other duties on
materials obtained for the Works from any source (excluding materials
supplied by Government) shall be borne by the Contractor.
• The Engineer-in-Charge shall be entitled to have tests carried out as

specified in the contract for any materials supplied by the Contractor
other than those for which, as stated above, satisfactory proof has
already been furnished, at the cost of the Contractor and the
Contractor shall provide at his expense all facilities which the
Engineer-in-Charge may require for the purpose.
• If no tests are specified in the Contract, and such tests are required
by the Engineer-in-Charge, the Contractor shall provide all facilities
required for the purpose and the charges for these tests shall be
borne by the Contractor only if the tests disclose that the said
material are not in accordance with the provision of the Contract.
• (B) Materials to be supplied by Government
• Materials which Government, shall supply are shown in Schedule “B”

which also stipulates place of issue and rate(s) to be charged in
respect thereof.
• Soon after acceptance of the tender the Contractor shall agree in

writing with the Engineer-in-Charge on a phased programme of his
requirements with regard to delivery of materials.
• In the event of delay in the supply of any stores and materials

mentioned in Schedule “B”, the Contractor shall be entitled to
reasonable extension of time as provided for under Condition 11 but
no claim for compensation or damage on any ground whatsoever shall
be entertained by the Government.
• If after acceptance of the tender the Contractor desires Government

to supply any further materials out of those mentioned in the
Schedule and/or any other materials, such materials may be supplied
by government, if available, at rates to be agreed upon between the
parties.
• For the materials listed in Schedule “B‟ the Contractor shall give a
reasonable notice in writing of his requirements to the Engineer-in-
Charge in accordance with the agreed phased programme.
• Such materials shall be supplied for the purposes of the Contract only
and the value of materials so supplied at the rates specified in the
aforesaid Schedule shall be set off or deducted from any sums then
due or which may thereafter become due to the Contractor, under the
Contract.
• The Contractor shall bear the cost of :

Carriage
loading,
transporting to Site,
unloading,
storing under cover as required,
assembling and
joining the several parts together as necessary and
incorporating or fixing materials in the Works
including all preparatory work of whatever description as may be
required, and
of closing,
preparing,
loading and
returning empty cases or containers to the place of issue.
• All materials issued to the Contractor by Government for incorporation

or fixing in the Works (including preparatory work) shall, on
completion or on foreclosure of the works and before submission of
bills, be returned by the Contractor at his expense, at the place of
issue, after making due allowance for actual consumption, reasonable
wear and tear and/or waste.
• If the Contractor is required to deliver such materials at a place other

than the place of issue, he shall do so and the transportation charges
from the Site to such place, less the transportation charges which
would have been incurred by the Contractor had such materials been
delivered at the place of issue, shall be borne by Government.
• Surplus materials returned by the Contractor shall be credited to him

by the Engineer-in-Charge at rates not exceeding those at which these
were originally issued to him after taking into consideration any
deterioration or damage which may have been caused to the said
materials whilst in the custody of the Contractor.
• If on completion of Works the contractor fails to return surplus

materials the GE may, by a written notice to the Contractor,
require him to pay within a fortnight of receipt of the notice for
such unreturned and surplus materials at double the prevailing
market rate.
• If however, the contractor is not satisfied with the decision of the

G.E, he shall be entitled to represent the matter to CWE within
seven days of receipt of G.E.’s decision and the decision of the
C.W.E. thereon shall be final and binding.
• If cement is to be supplied by Government, every cement godown

shall be provided with two locks on each door.
• The key of one lock at each door shall remain with the Engineer-in-
Charge or his representative and that of the other lock with the
Contractor’s authorized agent at Site of Works so that cement is
removed from the Godown only according to daily requirement with
the knowledge of both the parties.
• (C) General
• Materials required for the works, whether brought by the Contractor

or supplied by Government, shall be stored by the Contractor only at
places approved by the Engineer-in-Charge.
• Storage and safe custody of materials shall be at the risk and the
responsibility of the Contractor.
• Government officials concerned with the Contract shall be entitled at

any time to inspect and examine any materials intended to be used in
or on the Works, either on the Site or at factory or workshop or other
place(s) where such materials are assembled, fabricated or
manufactured or at any place(s) where these are lying or from which
these are being obtained and the Contractor shall give such facilities
as may be required for such inspection and examination.
• (C) General
• All materials brought to the Site shall become and remain the
property of Government and shall not be removed off the Site without
the prior written approval of the Engineer-in-Charge.
• But whenever the Works are finally completed the Contractor shall at
his own expense forthwith remove from the Site all surplus materials
originally supplied by him and upon such removal the same shall
revest in and become the property of the Contractor.
Tools & Plants
• Contractor at his own expense supply tools, plants and
equipment required for execution of work.
• In case contractor requires, T&P listed in Sch ‘C’ of contract

can be given to him on hire by Govt. as per rates
mentioned in Sch.
• HIRE PERIOD- Date of issue upto end of day of return

Whole of hire period shall be deemed to consist of Working
Days except Off Days
Contractor’s Supervision [Condition 25]
• Contractor either himself will supervise the execution of contract or will
appoint competent Agent approved by GE.
• Experience required to supervise the works :-
(a) Works costing Rs. 50 Lks – Rs. Degree holder in Engg. From Govt. recognized
1000 Lks Institute with atleast 4 years exp.
(b) Works costing Rs. 7.50 Lks – Degree holder in Engg. From Govt. recognized
Rs. 50 Lks Institute with atleast 2 years exp.
(c) Works costing less than Rs. Diploma holder in Engg. From Govt. recognized
7.50 Lks Institute with adequate exp.
• Employment of Agent shall be to the approval of GE.
• Contractor/ Agent shall be in attendance at working hours at site.

Engineers at Site
• Engrs (Degree/Diploma) employed should be of
relevant discipline to which nature of works
pertain.
• For works costing more than Rs. 10 Cr., reqmt is

given in tender doc.
Qualified Tradesmen
(Applicable for Works Costing Rupees One Crore or More)
• Contractor shall employ skilled /semi skilled tradesmen who are qualified and
possess certificate in particular trade from Industrial Training Institute (ITI) or
similar reputed and recognized Institutes by State/Central Government, to execute
the works of their respective trades.
• The number of such qualified tradesmen shall not be less than 25% of total
skilled/semi skilled tradesmen required in each trade.
• The contractor shall submit a list of such tradesmen along with requisite certificates
to GE for verification and approval.
• Notwithstanding the approval of such tradesmen by GE, if the tradesmen are found
to have inadequate skill to execute the work of their trades leading to
unsatisfactory workmanship, the contractor shall remove such tradesmen within a
week after written notice to this effect by the GE
• GE’s decision whether a particular tradesman possesses requisite qualification, skill

and expertise commensurate with the nature of work, shall be final and binding.
Performance Security
&
Refund of Performance Security
By
Mrs. Megha Kanoje
Performance Security [Condition 19]
• Performance Security Deposit for individual works shall be for an amount equal to
3% of the contract amount.
• With in 28 days of receipt of letter of acceptance, the successful contractor shall

deliver to the Accepting Officer a performance security, in form of a Bank Guarantee
Bond or Government Securities, FDR or any other government instruments
stipulated by the Accepting Officer, for an amount equivalent to 5% (now changed
to 3% ) of the contract sum.
• The BGB submitted by the contractor shall be got confirmed from the head office of
the issuing Nationalized/ Scheduled Bank.
• Work order No 1 shall be placed only after submission of Performance Security

Deposit.
• Failure of successful contractor to comply with the requirements of Submission of

Performance security shall constitute sufficient grounds for cancellation of award of
work and forfeiture of earnest money.
• In case of MES enlisted contractor amount equal to the earnest money stipulated in
the notice inviting tender shall be notified to the tenderer for depositing the amount
through MRO.
Performance Security [Condition 19]
• Issue of tenders to such tenderer shall remain suspended till the
aforesaid amount equal to the earnest money is deposited in
government treasury.
• The Performance security and the interest arising there-from can be

utilized by government to offset any amount due from the contractor.
• In the event this performance security getting reduced due to such

deduction or sale, the contractor shall with-in ten days thereafter shall
make good deficiency thus caused in Performance security.
• Government shall not be responsible for any loss of security, or any

depreciation in value of security while in their charge nor for loss of
interest thereon.
• In the event of contract being cancelled under condition 52, 53, & 54
of GCC, the performance security shall be forfeited in full and shall be
credited into consolidated fund of India.
Refund of Performance Security [Condition 68]
• The Performance security shall be refunded to the contractor after:
(a) Expiration of defect liability period (vide condition 46 of GCC)
(b) Payment of final Bill
(c) No demand Certificate has been rendered on IAFW-451

FACULTY OF CONSTRUCTION MANAGEMENT
(WKS MGT WING)
POINTS TO BE CHECKED
DURING TECHNICAL CHECK
OF FB
TECHNICAL CHECK OF FINAL BILL
• Before you start checking the final bill ,you should have thorough grasp of the contract and
deviation orders. There may be some special condition which might have to be complied
with before payment of final bill. If you overlook them, it will have serious repercussions.
• 1. Final bill should be signed by proprietor, partner or person having proper power of
authority of the firm duly dated. Also ensure that contractor has signed the FB without any
reservation.
• 2. Copies Final bill should be in duplicate.
• 3. Final bill should be submitted within specified period as per condition No 65 and 65 A of
IAFW 2249 General Condition of contracts.
• 4. Testing charges as per contract condition should be recovered from Final bill and
statement should be attached duly signed by contractor and EIC.
• 5. Any corrections made in the Measurement book should be initialled by contractor and
Engineer- in-charge.
TECHNICAL CHECK OF FINAL BILL(Contd)
• 6. Deduction of compensation shall be done as per contract condition and statement shall be
attached duly signed.
• 7. Recovery against STE observation shall be done from FB. Statement shall be attached with FB
and entry shall be done in recovery register. .
• 8. Recovery of Electricity and water charges should done from FB .Statement should also
be attached with FB duly signed by EIC and contractor.
• 9. Copy of Guarantee Bond on stamp paper for ATT and Water proofing treatment shall be
attached with FB. Copies of FDs submitted against Guarantee amount shall be attached
with FB or otherwise amount shall be recovered from FB.
• 10. Audited copies of RAR alongwith copies of Indices and labour wages shall be
submitted alongwith FB, to check the Escalation details submitted with FB.
• 11. All Deviations orders and Star rates shall be got approved before submission of FB.
Ensure that fair copies of Dos and Star-rates have bees attached with FB.
TECHNICAL CHECK OF FINAL BILL(Contd)
• 12. Schedule ‘B’ stores issued to the contractor to be thoroughly checked alongwith USR
statement.
• 13. While checking the abstracts, pay special attention when the quantities are converted to
reduced units for example Pointing item, road work items.
• 14. Check and ensure that Deviation limit of the contract not exceeded.
• 15. In case Road work is Involved in the work , check that rolling register has been enclosed
with FB. Rolling hours to be checked properly. Recovery on account of in-sufficient rolling,
if any shall be done.
• 16. Ensure that Final bill is enclosed with all documents such as abstracts, work/deviation
orders, completion certificates, Receipt vouchers for return of stores, correction slip to
DOs(if any).etc
• 17. Ensure that all previous payments made to the contractor ,are properly accounted for.
Recovery from Contractor
Condition 67
(a) Whenever any claim(s) for payment of sum of money arise(s) out of or under
this Contract against the contractor, the Contractor shall on demand make
the payment of the same or agree for effecting adjustment from any
amounts due to him by the Government.
If, however, he refuses or neglects to make the payment on demand, or does

not agree for effecting adjustment from any amounts due to him,
Government shall be entitled to withhold an amount not exceeding the

amount of the claim(s), from any sum when due or which at any time
thereafter may become due to the Contractor,
under this or any other Contract with the Government or from any other
sum due to the Contractor from the Government (which may be available
with the Government) or from the Contractor’s Performance Security Amount
(or from contractor’s Standing Security Deposit Amount or Security Bond, if
performance security amount is not adequate), and
retain the same by way of lien till such time,
payment is made by the Contractor or till the claim(s) is/are settled or

adjudicated upon, or till the Contractor, at his expense furnishes Fixed
Deposit Receipt(s) duly endorsed as directed by the Accepting Officer, or a
Guarantee Bond from a Scheduled Bank for an amount equal to the amount
of the claim(s) in the form as directed by the Accepting Officer.
Recovery from Contractor [Condition 67]
(b) It is an agreed condition of this Contract that the sum of money so

withheld or retained as and by way of lien under this condition by the
Government,
will be kept withheld or retained as such by the Government,
till the claim(s) arising out of or under this Contract is/are settled
or adjudicated upon
and that the Contractor will have no claim for interest or

damages whatsoever on any account in respect of such sum so
withheld.
(c) For the purpose of this Condition,

where the contractor is a Partnership Firm,
the Government shall be entitled to withhold in whole or in part
as may be necessary to cover the amount claimed,
any sum found payable to any partner of the Firm,
whether in his individual capacity or otherwise.
(d) Any amount due to the Contractor under this contract may be withheld
by way of lien against any amount claimed or which may at any time
hereafter be claimed by the Government from the contractor on any
account whatsoever, under this or any other contract between them and
retained, till the claim(s) is/are settled or adjudicated upon.
(e) Government reserve the right to carry out post-payment audit and
technical examination of the works and Final Bill, including all supporting
vouchers, abstracts, etc. Government further reserve the right to carry
out the aforesaid examination and enforce recovery when detected,
notwithstanding the fact that the amount of the Final Bill may have been
included by one of the parties as an item of dispute before an Arbitrator
appointed under the Arbitration clause of the Contract and
notwithstanding the fact that the amount of the Final Bill figures in the
Arbitrator’s award.
(f) If, as a result of such audit and technical examination,
any over-payment is discovered in respect of the work done under this
Contract, the contractor shall on demand make payment of a sum equal to the
amount of over-payment or agree for effecting necessary adjustment from any
amounts due to him by Government.
If however, he refuses or neglects to make the payment on demand or does

not agree for effecting adjustment from any amounts due to him, Government
shall be entitled to take action as in sub para (a) hereinbefore.
If as a result of such audit and technical examination any under payment is

discovered, the amount of under payment shall be duly paid to the Contractor by
Government.
(g) ….Right of the Government to adjust over-payment from any sum due
or from any sum which may become due to the Contractor or from
Contractor’s Performance Security Amount (or from contractor’s Standing
Security Deposit Amount or Security Bond, if performance security
amount is not adequate), and adjust under payment,
shall not extend beyond a period of two years from the date of
payment of the undisputed portion of the Final Bill or in the case of a
minus Bill, from the date, the net amount of the final bill is communicated
to the Contractor.
(h) All notices under this condition shall be given by the G.E.
Foreclosure
OR
Special Powers of Determination

(Applicable only to Measurement and
Lump Sum Contracts)
[Condition 57 of IAFW-2249(General
Conditions of Contract)]
57. Special Powers of Determination (Applicable only
to Measurement and Lump Sum Contracts)
If at any time after the acceptance of the tender

Government shall for any reason whatsoever not
require the whole or any part of the Works, to be
carried out, the C.W.E. shall give notice in writing
of the fact to the Contractor, who shall have no
claim to any payment of compensation or otherwise
howsoever on account of any profit or advantage
which he might have derived from the execution of
the Works in full but which he did not derive in
consequence of the foreclosing of the Works.
He shall be paid at Contract rates for the full
amount of the Work executed including such
additional Works, e.g., clearing of Site, etc., as may
be rendered necessary by the said foreclosing. He
shall also be allowed a reasonable payment (as
decided by the Accepting Officer) for any expenses
sustained on account of labour and materials
collected but which could not be utilised on the
Works as verified by the G.E.
Determination of
Contract in the event
of Force Majeure
[Condition 59 of IAFW-
2249(General
Conditions of
Contract)]
59. Determination of Contract in the event of Force
Majeure
The contract may be determined at the option of either

party by giving 30 days notice to the other party should any
event of ‘Force Majeure’ continue to prevail for an
uninterrupted period of six months and no progress of work is
achieved owing to such circumstances during these six
months. On receipt of notice from any one party to the other
explaining circumstances of ‘Force Majeure’ GE, and
contractor will carry out joint inspection of works and an
inventory of completed, incomplete works and the materials
collected for incorporation in the work shall be prepared for
processing of Final Bill. The contractor shall have no claim to
payment of any compensation on account of any profit or
advantage which he may have derived from the execution of
the Works in full but which he could not derive due to
determination of contract on account of ‘Force Majeure’ .
Since Performance Security for all works if
5%( or 3% as applicable),in case work is
foreclosed, the Performance Security shall be
recalculated as per cost of completed work. In
case the Performance Security already
deposited is more than that required after
foreclosure of works, contractor shall have the
option to submit the fresh Performance
Security and original Performance Security
shall be released.
Cancellation of Contract for Corrupt Acts
Condition 52
Cancellation of contract for insolvency,

Subletting, etc Condition 53
Cancellation of Contract for Contractor’s

Default Condition 54
Termination of Contract for Death

Condition 55
Cancellation of Contract for Corrupt Acts [C-52]
• The C.W.E. shall cancel the Contract in any of the following cases.
If the Contractor shall –
(a) offer or give or agree to give to any person in Government service

any gift or consideration of any kind as an inducement or reward for
doing or fore bearing to do or for having done or forborne to do any
act in relation to the obtaining or execution of this or any other
Contract for Government service, or
(b) enter into a Contract with Government in connection with which

commission has been paid or agreed to be paid by him or to his
knowledge, unless the particulars of any such commission and the
terms of payments thereof have previously been disclosed in writing
to the Accepting Officer, or
(c) obtain a contract with Government as a result of ring tendering or

other non bonafide methods of competitive tendering without first
disclosing the fact in writing to the Accepting Officer.
Cancellation of Contract for Corrupt Acts [C-52]
• The decision of CWE in this regard shall be final and binding
• On cancellation of contract , the performance security and retention

money up to the last paid RAR shall be forfeited.
• All T & P and material of contractor lying at site shall be confiscated

by Government and shall be absolutely at the disposal of the
President of India and no compensation whatsoever shall be allowed
by department.
• If the contractor is a company or a firm then every Member/ Partner /

Director of company or form shall be barred from participating in the
tender for balance work either in his/her individual capacity or as a
partner of any other Company/ firm.
Cancellation of contract for insolvency, Subletting, etc [C53]
The Accepting Officer may cancel the Contract in any of the following cases:
If the Contractor –
(a) being an individual or if a firm, any partner thereof shall at any time
be adjudged insolvent or have a receiving order or order for
administration of his estate made against him or shall take any
proceedings for liquidation or composition under any Insolvency Act for
the time being in force or make any conveyance or assignment of his
effects or composition or arrangement for the benefit of his creditors or
purport so to do or if any application be made under any Insolvency Act
for the time being in force for the sequestration of his estate or if a trust
deed be granted by him for behalf of his creditors ; or
(b) being a company shall pass a resolution or the Court shall make an
order for the liquidation of its affairs or a receiver or manager on behalf of
the debenture holders shall be appointed or circumstances shall arise
which entitle the Court or debenture holders to appoint a receiver or
manager; or
(c) assigns, transfers, sub-lets or attempts to assign, transfer or sub-let,

any portion of the Works without the prior written approval of the
Accepting Officer.
Cancellation of contract for insolvency, Subletting, etc [C53]
• Whenever the Accepting Officer exercises his authority to cancel the

Contract under this condition, he may complete the Works by any
means independently without risk and Cost of the original Contractor.


by department.
• If the failed contractor is a company or a firm then every Member/

Partner / Director of company or form shall be barred from
participating in the tender for balance work either in his/her individual
capacity or as a partner of any other Company/ firm.
Cancellation of contract for Contractor’s Default [C-54]
Cancellation of Contract in part or in full for Contractor’s Default.-
If the Contractor-
(a) makes default in commencing the Works within a reasonable time
from the date of the handing over the site, and continues in that state
after a reasonable notice from G.E.
OR
(b) in the opinion of the G.E. at any time, whether before or after the
date or extended date for completion, makes default in proceeding with
the Works, with due diligence and continues in that state after a
reasonable notice from G.E.
OR
(c) fails to comply with any of the terms and conditions of the Contract,
or after reasonable notice in writing with orders properly issued
thereunder,
OR
(d) fails to complete the Works, Work order and items of Works, with
individual dates for completion and clear the Site on or before the date of
completion.
(In case of contracts not covered under Performance
Security Clause)
The Accepting Officer may, without prejudice to any other

right or remedy which shall have accrued or shall accrue
thereafter to Government, cancel the Contract as a whole
or only such Work Order(s) OR items of Work in default
from the Contract. Whenever the Accepting Officer
exercises his authority to cancel the Contract as a whole
or in part under this Condition he may complete the Work
by any means at Contractor’s risk and cost, provided
always that in the event of cost of completion or after
alternative arrangements have been finalised by the
Government to get the Works completed, estimated cost
of completion (as certified by G.E.) being less than the
Contract cost, the advantage shall accrue to the
Government.
(Contd….)
If the cost of completion or after alternative arrangements have been

finalised by the Government to get the Works, completed, estimated cost of
completion (as certified by G.E.) exceeds the moneys due to Contractor under
this Contract, the Contractor shall either pay the excess amount ordered by G.E.
or the same shall be recovered from the Contractor by other means. The
Government shall also be at liberty to hold and retain in their hands materials,
tackle, machinery and stores of all kinds on Site, as they may think proper and
may at any time sell any of the said materials, tackle, machinery and stores and
apply the proceeds of sale in or towards the satisfaction of any loss which may
arise from the cancellation of the Contract as aforesaid.
The Government shall also be at liberty to use the materials, tackle, machinery
and other stores on Site of the Contractor as they think proper in completing the
work and the Contractor will be allowed the necessary credit. The value of the
materials and stores and the amount of credit to be allowed for tackle and
machinery belonging to the Contractor and used by the Government in
completing the work shall be assessed by the G.E. and the amount so assessed
shall be final and binding.
(In case of contracts covered under Performance Security Clause)
• The accepting officer may without prejudice to any other right or

remedy which shall have accrued or shall accrue thereafter to the
government, cancel contract as a whole or any such work order(s) or
items of work in default from the contract. Whenever the Accepting
Officer exercises his authority to cancel the Contract under this
condition, he may complete the Works by any means independently
without Risk and Cost of the Original Contractor.


by department.
• If the failed contractor is a company or a firm then every Member/

Partner / Director of company or form shall be barred from
participating in the tender for balance work either in his/her individual
capacity or as a partner of any other Company/ firm.
Termination of contract for Death [C-55]
• Without prejudice to any of the rights or remedies under this

contract, if the Contractor dies, the Accepting Officer shall have
the option of terminating the Contract without compensation to
the Contractor.
• If the proprietor has nominated a person during his lifetime, the

nominee will be allowed by the GE to complete the balance work.
• However, if the nominee is not willing or in the opinion of

Accepting Officer is not capable of completing the work as
contracted for, he shall terminate the contract without any
compensation to the nominee.
• The decision of the Accepting Officer whether the nominee is

capable or not shall be final and binding.
If it appears from the nature of the case
that it was the intention of the parties to
any contract that any promise contained in
it should be performed by the promisor
Section 40 himself, such promise must be performed
by the promisor. In other cases, the
of Indian promisor or his representatives may
Contract employ a competent person to perform it.
Act-1872 Illustrations;
(a) A promises to pay B a sum of money. A may
perform this promise, either by personally paying the
money to B or by causing it to be paid to B by another
; and, if A dies before the time appointed for
payment, his representatives must perform the
promise, or employ some proper person to do so
(b) A promises to paint a picture for B. A must perform this

promise personally.
DISCREPANCIES AND
ADJUSTMENT OF ERRORS
(Intention of Contract Agreement)
CONDITION 6 A OF IAFW-2249
Discrepancies and Adjustment of Errors
• The several documents forming the contract are to be taken as
mutually explanatory of one another;
• Detailed drawings shall be followed in preference to small scale
drawings and
• Figured dimensions in preference to scale.
• In the case of discrepancy between Schedule ‘A’, the Bills of
Quantities, the Specifications and/or the Drawings, the following
order of precedence shall be observed:-
(a) Description of Schedule ‘A’/Bills of Quantities.
(b) Particular Specifications.
(c) Drawings.
(d) General Specifications.
Discrepancies and Adjustment of Errors
• If there are varying or conflicting provisions made in any one
document forming part of the Contract the Accepting Officer shall be
the sole deciding authority with regard to the intention of the
document and his decision in this respect shall be final and binding.
• Any error in description, quantity or rate in Schedule “A” and Bills of

Quantities, or any omission there-from shall not vitiate the Contract
or release the Contractor from the execution of the whole or any part
of the Works comprised therein according to the Drawings and
Specifications or from any of his obligations under the Contract.
• Any error in quantity, rate or amount in Schedule “A” /Bills of

Quantities and General Summary shall be adjusted in accordance
with the rules mentioned in condition 6(A) (A) to 6 (A) (E) of GCC
IAFW-2249.
Suspension of Works
Condition 09 of IAFW-2249
Suspension of Works: Condition 09 of IAFW-2249
• To be ordered by GE in writing on following reasons:

(a) On account of any default on the part of contractor
(b) For proper execution of works or part thereof for reasons
other than the default of contractor
Illustrations
i. In case of doubt whether the work would be required to
be executed at all
ii. When accommodation requirement or layout are to be
revised due to Administrative reasons
iii. When changes in design or specifications have become
unavoidable and these can not be ordered within a
reasonable period of time
iv. When the work is almost stalled/ stopped due to non-
availability of hindrance free site or shortage of funds
(c) For safety of works or part thereof
Illustrations
i. When the work or part thereof are in danger due to
anticipated natural calamities, enemy action, civil war etc
• Suspension order for the work shall be issued by GE with prior approval
of Accepting officer.
When the suspension is ordered -
(a) on account of contractor’s default [under (a) above]: the contractor

shall not be compensated for time/ money
(b) for reasons other than contractor’s default[under (b) & (c) above]:
• Contractor shall be entitled for extension of time for the period of

suspension plus 25%
• In case total period of all suspensions for any item or group of

items exceeds 60 days the contractor shall also be entitled to
compensation in respect of salaries/ wages paid to employees
and labour at site actually remaining idle during the period of
suspension
• If the work or part thereof is suspended (under (b) or (c)) for a

period more than 4 months at a time;
• Contractor (after 60 days from receipt of notice of such

suspension) has the option to serve a written notice on the GE
requesting his permission with in 15 days (of receipt by him of
said notice) to proceed with the work;
• if such permission is not granted with in this time, the contractor

may treat the suspension (where it affects only a part of work) as
omission under condition 7 of IAFW-2249 and (where it affects
whole of the work) as abandonment of work; in either case the
contractor shall with in a period of 10 days (from the date of
expiry of 15 days notice) shall give notice of his intension to GE.
• In such eventuality the contractor shall not be entitled to claim

for loss of profit, however, the contractor shall be entitled to
compensation on account of loss of salaries and wages paid by
him to his employees and labour(and T&P) at site actually
remaining idle in consequence and also for loss on materials
collected which could not be utilized on these works including 5%
Overheads on materials and wages.
• The contractor shall give all relevant details to GE with in seven

days of order of suspension and the GE shall verify the necessity
and correctness thereof. Proper record of these details shall be
maintained duly signed by GE and contractor.
• The contractor will be permitted to take back at his expense the

materials collected which could not be utilised on the works
provided advances(RAR) if any in respect of such materials are
fully adjusted.
• Such materials shall be removed by contractor from site after

written approval of the GE; the contractor shall intimate with
documentary evidence if he has incurred any loss on such
materials in order to enable GE to assess such loss.
Proper planning is essential to ensure that delays in execution of

works do not occur as a result of default on the part of MES.
When delays occur in spite of proper planning, vigorous action

must be taken to reduce such delays to the absolute minimum.
Issues related to suspension need be resolved expeditiously,

since:
Upto 60 days there is only time implication; but
After 60 days financial implications shall also get involved;
Beyond that a situation may arise wherein contractor may notify

that the suspension be treated as omission / abandonment of
work and the accounts be finalized.
Adverse financial impact to Govt should be mitigated by proper

timely action
Notices to the Contractor
ISSUE OF NOTICES. CORRESPONDENCE WITH THE CONTRACTORS
The format of Letters/ Notices to be issued to the contractor during currency of contract and during defect liability period have
been given in Appendix 16.1 to 16.17 of Manual on Contracts
Appx No Description
16.1 Letter to contractor by GE soon after conclusion of contract
16.2 Diligence notice due to delay in commencement of work
16.3 Latter to Warn Contractor regarding inadequacy of material and labour
16.4 First compensation notice
16.5 Second Compensation Notice
16.6 For suspension of work
16.7 Resumption of work after suspension
16.8 Bad Workmanship/ continued negligence in rectification of defects
16.9 Completion Certificate
Continued….
ISSUE OF NOTICES, CORRESPONDENCE WITH THE CONTRACTORS
Formats of Letters/Notices to be issued to the contractor during

currency of contract and during Defects Liability Period have been given
in Appendix 16.1 to 16.17 of Manual on Contracts
Appx No Description
16.10 Notification of Slow Progress by GE to contractor before recommending
cancellation
16.11 Final Notice to be served by Accepting Officer before cancellation of contract
16.12 Letter from Accepting officer to contractor for Cancellation of contract
16.13 Letter by CWE to contractor for foreclosing a contract by the Government
16.14 Letter by CE/CWE/GE to contractor to safeguard against section 18 & 19 of
Limitation Act 1963
16.15 For rectification of defects during defect liability period

16.16 GE to contractor on completion of rectification of all defects notified till the date
of expiry of defect liability period
16.17 Format of Amendment to the Contract

Thank you
Records and Measurements
Condition 61 of IAFW-2249
Records and Measurement [Condition 61]
• All items having a financial value shall be entered in the M.E.S.

Measurement Book I.A.F.W.-2261 or
in the case of Term Contracts for maintenance and repair work,

on other approved Army Form, as applicable so that a complete
record is obtained of all Work performed under the Contract.
• Building, etc., priced in Schedule “A” as a unit lump sum will be

entered by number as the unit lump sum.
• Work carried out for agreed lump sums will be described and similarly
recorded.
• Lump sum omissions will be entered for deduction.
• Measurement shall be restricted to that required to ascertain the

financial liability of Government under the Contract.
• Work which falls to be measured in details shall be measured

physically, without reference to any local custom that may obtain,
excepting where it may otherwise be directed in the tender
documents.
• The measurements shall be taken jointly by any person or persons

duly authorized on the part of the M.E.S. and by the Contractor.
• The Engineer-in-Charge shall give reasonable notice in writing to the

Contractor of appointment for measurement.
• The contractor shall, without extra charge, provide assistance with

every appliance and other things necessary for measurement.
• The Contractor shall bear all the costs of his own measurement.
• Measurements shall be entered in the M.E.S. Measurement Book

OR
other approved Army Form as applicable and signed and dated by

both parties each day on the Site on completion of measurement.
• If the Contractor objects to any of the Measurements recorded on

behalf of the M.E.S.
a note to that effect will be made in the M.E.S. Measurement

Book or other approved Army Form as applicable against the item or
items objected to;
and such note shall be signed and dated by both parties engaged
in taking the measurements.
• If as a result of such objection,
it becomes necessary to re-measure the Work wholly or in part the

expense of such re-measurement shall be borne by the party requiring
the measurements to be retaken
provided that
a net error is found by this re-measurement to amount to less than 5

per cent of the value as recorded by the first measurements.
But where the net errors amount to 5 per cent or over of the said
value, then the cost is to be borne by the other Party.
In any case, if the net value of errors found exceeds Rs.5000/-, the
expense of re-measurement is to be borne by the other party.
• If the Contractor’s representative fails to attend when required, the

Engineer-in-Charge shall have power to proceed by himself to take
measurements and in that case, these measurements shall be accepted
by the Contractor as final.
Advances on Account/
Running Account Receipts
(RAR Payment)
Condition 64 of IAFW-
2249
Interim payment (RAR) Advances on Account: Condition 64
• Periodicity of RAR shall be not less than 30 days for contracts of value
less than Rs 50 lakh and 15 days for the contracts of value more than
Rs 50 lakh
• The claim for RAR shall be submitted on IAFW-2263 provided the sum
due is not less than Rs 50,000/-
• For Term Contracts: Not more than two claims can be preferred
• Advances on Account claim for Work Done (for measurable portion of

works) shall be submitted only after recording joint measurements in
MES Measurement Books.
• Retention money on Work Done:

On first Rs 5 lakh : 10%
On next Rs 5 Lakh : 7.5%
On further payment : 5%
Retention money on Materials brought to site = 15%
Interim payment (RAR) Advances on Account
• The retention money shall be released to contractor alongwith final bill.
• However, in case this retention money is more than Rs 1.5 Lakh, then
after retaining an amount of Rs 1.5 Lakh or 1% of contract amount as
executed, whichever is more, the balance amount of retention money
shall be refunded to the contractor on satisfactory completion of work
as certified by the GE.
• Retention Money can be released to the contractor in RARs subject to

submission of Bank Guarantee Bond or FDR from a Scheduled Bank in
favour of Accepting Officer, for amount of Retention Money, valid for a
period till payment of Final Bill.
• Any sum due from the contractor on account of Sch ‘B’ Stores issued,
Schedule ‘C’ Tools & Plants & Schedule ‘D’ Transport hired to contractor
shall be deducted from the first or next subsequent advance (RAR)
Interim payment (RAR) Advances on Account: Condition 64
• Percentage of advance payment on value of work done & materials

brought to site (including cost of fabrication for items like trusses, etc)
and the periodicity of advance payment is laid down in the contract.
• Advances on materials issued under Sch ‘B’ lying at site but not
incorporated in the work are payable after cost of such materials is
recovered from the contractor in a manner similar to advance on
materials directly arranged by him.
• The payment of work done for lump-sum portion (Buildings) shall be

released based on approved yard sticks. 3rd RAR shall be paid by GE
only after technical check & approval of yard stick. Para 18.2 refers
• Materials brought to site for incorporation in works [but not yet

incorporated], of quality and specifications stipulated in contract,
adequately stored and/ or protected against damage by weather or
other causes and approved by GE may be paid in RAR at market rate or
the rate derived from the contract, which ever is lower [subject to
retention @ 15%].
• It shall be ensured that perishable materials or materials in excess of
the requirement for the work in question are not paid for.
Interim payment (RAR) Advances on Account
• It should be ensured that the RAR is submitted by the contractor with

all supporting documents. Deficiencies if any are communicated to him
in writing (by quick means of communication FAX/ SMS/ Whatsapp/
email and printout thereof be maintained on official record)
• GE shall forward to the contractor a statement of transactions of all

debits and credits upto date in duplicate out of which the contractor
shall retain a copy for his office use and original duly signed by him is
attached to his interim bill in support of recovery on account of debits
raised against him by the MES.
• All previous “On Account” payments made to the contractor are taken
into account before making a further on account payment.
• All DOs should be initiated, finalized and distributed within 06 weeks

from the date of ordering these on contractor.
• Minus DOs in respect of completed works be finalized and considered
• Star rates in respect of proprietary materials be finalized and

considered [latest policy on star rates be considered]
Interim Payment (RAR) Advances on Account
• Qty of cement, steel and other major items is estimated and compared
with procurement/ incorporation to crosscheck any under-consumption.
• Necessary Store Statement shall form part of RAR/Final Bill.
• After completion of work and before receipt of final bill, RAR payments
shall continue to be governed by the terms of the contract
• In case of any dispute, the disputed part of the bill can be considered
for interim payment and disputes can be referred to arbitration.
• Even during Arbitration Proceedings any agreed payment becomes due

can be released and the arbitrator can be informed accordingly.
• Certificates to be given by GE in RAR are given at para 18.5 (e)
• Compensation RAR shall be checked at CWE office and shall be

governed by para 18.6
Interim Payment (RAR) Advances on Account
Any certificate relating to work done or materials delivered may be

modified
or
corrected by any subsequent interim certificate
or
by the final certificate
and
no certificate of GE supporting an advance payment shall of itself be

conclusive evidence that any work or materials to which it relates
are in accordance with the contract.
MEASURES TO PREVENT OVERPAYMENT TO CONTRACTOR IN RAR
(a) Incorrect assessment of the value of work executed.
(b) Incorrect assessment, both quantitative and qualititative of the

material brought by the Contractor to the site for incorporation in works.
(c) Short recovery of materials and tools and plant issued to the
Contractor under Schedules ‘B’ and ‘C’, Water and Electricity changes and
rental for Government accommodation for storage purposes etc.
(d) payment allowed in RAR for defective substandard work.
(e) delay in finalization of minus deviation orders, star rates, etc.
(f) not having valid Bank Guarantee Bond for retention money.
(g) not accounting for recoveries in particular on account of settled STEs

observations in the same contract or in respect of other contracts in
terms of Condition 67 of IAFW-2249.
INSTRUCTIONS FOR
TIMELY PAYMENT OF RARS AND FINAL BILLS
ISSUED VIDE E-IN-C’S BRANCH LETTER NO
66546/MANUAL/781/E8 DATED 18 APR 2018

INSTRUCTIONS FOR TIMELY PAYMENT OF RAR
(a) Efforts shall be made to pay the RAR at the earliest on receipt from
contractor complete in all respects but not exceeding the number of days
as under:
(i) for contracts of value less than Rs 50 lakh : 20 days

(ii) for contracts of value more than Rs 50 lakh : 10 days
(b) Contractor shall be responsible for submission of RAR complete in

all respects as per CA supported by all relevant documents such as
vouchers, test certificates etc.
(c) Executives shall ensure speedy checking and clearance of RAR and
any deficiency noticed shall be conveyed to the contractor by FAX/ SMS/
WATSAPP/ EMAIL etc to avoid delay.
(d) RAR Bill shall be processed along-with movement slip for monitoring
delay
Final Bill: Condition 65
&
Payments of Bills: Condition 66
Final Bill: Condition 65
• The final bills shall be submitted by the contractor on IAFW-2262 in

duplicate within three months of physical completion of works to the
satisfaction of Engineer-in-Charge
• The final bill shall be accompanied by all abstracts, Vouchers, etc

supporting it
• Final Bill shall be prepared in the manner prescribed by GE
“NO further claims shall be made by the contractor after

submission of the final bill and these shall be deemed to have
been waived and extinguished”
• The contractor shall be entitled to be paid the final sum less the value of
payments already made of account, subject to the certification of the final
bill by the GE.
• No Charges shall be allowed to the contractor on account of the preparation

of the final bill.
Final Bill (Applicable only to Term Contracts): Condition 65 A
All as per Condition 65 but applicable to individual Work Order(s) of Term

Contract for which separate final bill shall be submitted by the contractor and
progressed and paid by the department
Payment of Bills: Condition 66

• Payment of those items of the Final Bill in respect of which there is no dispute shall
be made within the period specified hereunder, the period to be reckoned from the
date of receipt of the Bill by the Engineer in Charge.:-
(a) Contract amount not exceeding Rs.5 lakhs – Six months

(b) Contract amount exceeding Rs.5 lakhs – Nine months
• After payment of the amount of the final bill payable as aforesaid has been made,
the Contractor, may if he so desires, reconsider his position in respect of the disputed
portion of the final bill and if he fails to do so within 90 days, his disputed claim shall
be dealt with as provided in the Contract.
Final Bill: Condition 65 & 66
• Technical check of FB for TC & Handling contracts & rate contract for supply
of materials up to Rs 25000.00 and other FB up to Rs 2.5 Lakh will be
checked by JE QS & C and then by AGE (C) in GE office
• In case of CE Contracts final Bill shall be Technical Check by AGE (C) of GE
office & then by Jt Dir/ Deputy Director/ AAD (Contracts) of CE office
• In case of CWE/GE Contracts final Bills shall be Technical Check by AGE (C)
of GE office and then by DCWE (Contracts) of CWE office, wherein
•For TC & Handling contracts minimum 20% bills are to be checked in
CWE office
•For other bills upto Rs 15 lakh gross value minimum 25% bills are to be
checked in CWE office
•For bills more than Rs 15 lakh gross value 100% Bills are to be checked
in CWE Office
Pre-Audit By PCDA/CDA
Final Bill for contracts, gross value of which is less than Rs 5 lakh can be
audited and passed by AAO, GE without pre-audit by PCDA/ CDA,
Final Bill for contracts, gross value of which is less than Rs 10 lakh can be
audited and passed by AO, GE without pre-audit by PCDA/ CDA,
Final Bill: Condition 65 & 66
Measures to avoid delay in preparation and settlement of final bill
• Settlement of stores transaction
• Settlement of transactions related to T & P
• Delay in completion of measurement and preparation of abstracts
• Settlement of contractor’s claims for extra by referring the matter to

proper authority
• Delay in decision on grant of extension of time
• Delay in forwarding CTC of DOs by PCDA to AAO

•DEVIATION
ORDERS
•DEVIATION
LIMIT
•VALUATION OF
DEVIATIONS
DEVIATION ORDERS: Condition 7 of IAFW-2249
Ordering of Deviation Orders is governed by Condition 7 of IAFW-2249

Contractor shall not make any change(s) in works except in pursuance
to written orders from GE
No work that Radical change the original nature and scope of work shall
be ordered as deviation- decision of NHEA shall be final and binding
All additions deductions will be priced as per Condition 62 of IAFW-2249
The deviation as approved by the Accepting officer (or a person
specially authorised by him) shall be communicated to the contractor by
GE in writing duly indicating the deviation to be made, its approximate
financial effect , time effect and whether deviation is measureable or
billed direct.
The contractor shall be required to notify any objection to the deviation
ordered within a period of fifteen days of receipt of the order but under
no circumstances shall the progress of work be stopped (unless so
ordered by GE) owing to the differences or controversy that may arise
from such objection.
DO duly technically checked and signed shall be placed [Para19.2.5 ref]
DEVIATION ORDERS
DEVIATION LIMIT
Lump sum Contracts based on drgs and specifications - 10%
All other types of contracts:
Estimated cost not more than Rs 10 Lakh - 20%
Estimated cost exceeding Rs 10 Lakh - 10%
RESTRICTIONS ON ORDERING OF DEVIATIONS:
(a) Net effect (algebraical sum) of all additions & deductions shall not
exceed the deviation limit
(b) Arithmetical sum of all additions & deductions shall not exceed
twice the deviation limit
(c) DOs on items of individual trade included ion the contract shall not
exceed +/- 25% of the value of that trade in the contract as a whole
or half the DO limit whichever is less
(d) Value of additions of items of any individual trade not already
included in the contract shall not exceed 10% of the Deviation limit
DEVIATION ORDERS
Deviations under conditions 7 shall not have the effect of increasing the
value of work beyond the powers of Accepting officer of the contract.
In case it exceeds facts shall be brought to the notice of NHEA within whose
powers of acceptance the overall expenditure lies and his sanction obtained.
No amendment to contract agreement is necessary as the contract has no

way been vitiated.
ORDERING OF WORK IN EXCESS OF DEVIATION LIMIT
• In un-avoidable circumstances
• Additional work is necessary & closely connected to the original work
• ordering in the same contract is in the interest of government
• Finalization of rates of additional work shall be governed by para 19.1.8 to

19.1.12
DEVIATION ORDERS
Sanction of increase in (BURSTING OF) Deviation Limit:
(a) Zonal CE/CCE is authorized to approve excess over the deviation limits
mentioned in CONTRACT DOCUMENTS to the extent of 10% on contracts
concluded by CWE and GE in consultation with PCDA/CDA. Cases involving
excess of deviation limit over 10% shall be regularized by the Command
CE/ADG in consultation with PCDA/CDA.
(b) Command CE/ADG is also authorized to approve any excess over the
deviation limits mentioned in CONTRACT DOCUMENTS to the extent of
10% on contracts concluded by Zonal CE/CCE in consultation with
PCDA/CDA. Cases involving excess of deviation limit over 10% shall be
regularized under orders of the E-in-C in consultation with the Ministry of
Defence (Finance).
(c) In case of variation of DO limit on minus side, no consultation with
PCDA/CDA shall be necessary and the Accepting Officer may issue
necessary amendment to contract with intimation to the NHEA.
Valuation of Deviations: Condition 62
The value of items of work covered by deviation order shall be ascertained for
various types of contracts as per following order of precedence:
(A) Lump-Sum Contracts based on Bills of Quantities:
a) At applicable rate in the BOQ for the building/ item of work, in which the
deviation is involved;
b) At lowest applicable rate in any other BOQ;
c) At pro-rata based on lowest rate for analogous item in the BOQ for the
building/ item of work, to which the deviation refers;
d) At pro-rata based on lowest rate for analogous item in any other BOQ
(B) Lump-Sum Contracts based on Pre-priced Schedule ‘A’
a) At applicable rate in the relevant part of Schedule ‘A’, in which the

b) At pro-rata based on analogous item in the relevant part of Schedule ‘A’,

in which the deviation is involved;
c) At Applicable rate in the MES Schedule;
d) At pro-rata based on analogous item in the MES Schedule;
The Rates at (a) to (d) above shall be subject to the contractor’s percentage
(B) Lump-Sum Contracts based on Pre-priced Schedule ‘A’
a) At applicable rate in the relevant part of Schedule ‘A’, in which the

b) At pro-rata based on analogous item in the relevant part of Schedule ‘A’,

in which the deviation is involved;
c) At Applicable rate in the MES Schedule;
d) At pro-rata based on analogous item in the MES Schedule;
The Rates at (a) to (d) above shall be subject to the contractor’s percentage
(C) Lump-Sum Contracts based on Drawings and specifications :
Same as (B) except that CP shall be as fixed in Sch “A” Notes

various types of contracts as per following order of precedence
(D) Measurement (Percentage Rate) and Term Contract :
a)At Applicable rate in the MES Schedule;
b) At pro-rata based on analogous item in the MES Schedule;
The Rates at (a) & (b) above shall be subject to the contractor’s percentage.
(E) Item Rate Contract :
a) At applicable rate in Schedule ‘A’;
b) At pro-rata based on analogous item in Schedule ‘A’;

(F) Contracts Comprising Sections/ Parts conforming to types (A) to (E) above:
The principles enumerated in paras (A) to (E) shall apply to corresponding

parts of the contract.
PRO RATA RATE DETERMINATION
Payment for work not specifically mentioned in SSR can be done through pro-rata rate or star rate. Any
percentage applicable to SSR rates shall be applicable to pro-rata rates also. Pro-rata rates are of two
types:-
Similar items of equivalent value:-
For certain items if direct rates are not available in SSR, material and labour rates of items of similar
character and of equivalent value can be considered:-
eg. (1) M & L for providing PCC 1:2:4 Type B1 in flooring 35mm thick and finishing the surface even and smooth
without using extra cement.
Description SSR No. Rate in Rs. Ps.
A. M & L for providing PCC 1:2:4 Type B1 in flooring 25mm thick. 13036 180.20
B. Add for each extra 15mm. 13036 90.60

C. For extra 10mm (ie 25 + 10 = 35mm) 90.60 x 10
15
= 120.13
D. Finishing the cement concrete surface even and smooth without using 13040 31.90
extra cement.
Rate is (A + C +D) Rs.332.23/
Sqm
eg. (2) Supply and fix flush shutters, solid core construction, with particle board core
and plywood face panels, commercial type and both sides 35 mm thick.
Description SSR No. Rate in Rs.

i. Supply and fix flush shutters, solid core construction, with 08023 1784.50 (A)
block board core and plywood face panels, commercial type
and both sides 30 mm thick (A)
ii. - do – but 40 mm thick 08023 1950.90
iii Difference in rates (for 10 mm thick) & 166.40
For 5 mm thick (B) + 83.20 (B)
Supply and fix flush shutters, solid core construction, (A) + (B)
with particle board core and plywood face panels, Rs. 1867.70
commercial type and both sides 35 mm thick. Sqm
The value of items of work covered by deviation order shall be ascertained

for various types of contracts as per following order of precedence:
(G) For all contracts: [Star Rates]
If any work, the rate of which can not be obtained by any of the methods
referred to in paras (A) to (E) above has been ordered on the contractor, the
rate shall be decided by the GE on the basis of the cost to contractor at the
site of work plus 15% to cover all overheads and profit.
In the event of disagreement the contractor shall be entitled to represent

the matter to CWE within seven days of receipt of GE’s decision and the
decision of CWE thereon shall be final and binding.
The value of items of work covered by deviation order shall be ascertained

for various types of contracts as per following order of precedence:
[Star Rates]
Technical check by DCWE (Contracts) for star rate upto FE of Rs 50000/- and
by Director (Contracts) beyond FE of Rs 50000/-
Star rate shall be fixed / approved by CWE for any financial effect, during
currency of contract (original or extended) relating to contracts accepted by
him or any higher authority and after obtaining sanction of Accepting officer
in case of completed works.
Star rate shall be fixed / approved by GE, relating to contracts accepted by

him or any higher authority, for financial effect not exceeding Rs 5000.00,
Form for Approval of Star Rate - Appendix 20.4
Form for Analysis of Star Rate - Appendix 20.5

Thankyou
CONTRACT ADMINISTRATION
OR
CONTRACT MANAGEMENT
By
Iqbal Singh,
Dir(Contracts)
ADMINISTRATION OF CONTRACT
OR CONTRACT MANAGEMENT
* Contractual Obligations to be fulfilled by

the Department
* Soon after Placement of Work Order No 1

and Handing over of Site
Just and fair approach to the problem
Disposal of cases should be expeditious and time bound

manner
ADMINISTRATION
Decisions should be taken after thorough study of documents
OF CONTRACT/
CONTRACT
MANAGEMENT Decisions should be firm and final
Conveyance of decision should be properly recorded
Convey decisions in a transparent manner
The language used shall be polite and official

Contract Management means fulfillment of contractual
obligations and generally involves following actions
• Immediately on acceptance of tender
• Issue of Work Order No. 1 and handing over of site(s) ;
• Nominating Engineer in Charge and asking contractor to make
preliminary arrangements to commence the work;
• To finalize Critical Path Method;
• Finalization of Yard Stick for Lump Sum Contracts;
• To work out requirement of Schedule “B” Stores;
• Obtaining samples of materials from contractor.
Appendix 16.1: Form of letter to contractor
by GE soon after conclusion of contract to
pass on instructions on following aspects:
• Appointment of Engineer in Charge

• Submission of CPM Chart
• Contractor’s Supervision and Organization
• Address for official communication with contractor
• Stores, Site office and Labour Camp
• MES Water and Electric Supply to contractor
• Tools and Plants
• Stores and Materials
• Labour
• Holdups in Work
• Handing over of Obstruction/ encumbrance free site to
the contractor on date of commencement of work is
one of the reciprocal promise
Placement of Work Order No 1 and Handing over of Site
Handing over of Obstruction/ encumbrance free site to the contractor
on date of commencement of work is one of the reciprocal promise(s) going
to the root of the contract and any breach in fulfillment of the same shall
result into breach of the contract agreement.
Obstructions can be due to trees or existing buildings or structures
which may or may not be included in the contract for demolition.
Policy on removal of trees issued by E-in-C’s Branch must be kept in
view while preparing tender and/or during execution of work.
The work under the contract must be phased suitably in case it is
not feasible to hand over the site due to any eventuality.
2.
During Execution
of the Work
Contract Administration means fulfillment
of contractual obligations and generally
involves following actions
• During Execution of Work
• Thorough study of contract provisions and specifications;
• Approval of samples of material and fittings & fixtures;
• Placing Variation in Quantity Deviation Order for
Provisional Schedules;
• Timely finalization of Deviation orders, Amendment to
Contract,
• Decision of competent authority on disputed matters
• Acceptance, testing of Materials and Verification of
Purchase Voucher & Test Certificate;
• Maintenance of work Site Documents;
• Exercising checks and Quality Control;
• Recording measurements in respect of measurable
schedules/services as the work proceeds;
• To keep close watch on Progress of Work & Deviations
from Contract Provisions;
Contract Administration means fulfillment
of contractual obligations and generally
involves following actions
• During Execution of Work(Contd….)
• Issue necessary notices to contractor as and when
required;
• Processing of RAR Payment including checking
Escalation Claim; watching BGBs
• Passing and inspection of works
• Ensure precautions against risk & MES Safety code is
implemented
• Issue of completion certificate
• Reconciliation of issue and receipt of stores
• Correct Measurement of work & Forwarding of
abstracts of work done and recovery statement
• Processing of Final Bill
• Initiation of performance report of the firm
• Monitoring of defects observed during the defect
liability period and issue defect rectification certificate
ISSUE OF NOTICES. CORRESPONDENCE WITH THE CONTRACTORS
The format of Letters/ Notices to be issued to the contractor during
currency of contract and during defect liability period have been given in
Appendix 16.1 to 16.17 of Manual on Contracts-2020
Appx No Description
16.1 Letter to contractor by GE soon after conclusion of contract
16.2 Diligence notice due to delay in commencement of work
16.3 Latter to Warn Contractor regarding inadequacy of material and labour
16.4 First compensation notice
16.5 Second Compensation Notice
16.6 For suspension of work
16.7 Resumption of work after suspension
16.8 Bad Workmanship/ continued negligence in rectification of defects
16.9 Completion Certificate
Continued….
ISSUE OF NOTICES, CORRESPONDENCE WITH THE CONTRACTORS
Formats of Letters/Notices to be issued to the contractor during

currency of contract and during Defects Liability Period have been given
in Appendix 16.1 to 16.17 of Manual on Contracts-2020
Appx No Description
16.10 Notification of Slow Progress by GE to contractor before recommending
cancellation
16.11 Final Notice to be served by Accepting Officer before cancellation of contract
16.12 Letter from Accepting officer to contractor for Cancellation of contract
16.13 Letter by CWE to contractor for foreclosing a contract by the Government
16.14 Letter by CE/CWE/GE to contractor to safeguard against section 18 & 19 of
Limitation Act 1963
16.15 For rectification of defects during defect liability period

16.16 GE to contractor on completion of rectification of all defects notified till the date
of expiry of defect liability period
16.17 Format of Amendment to the Contract

Provisional Lump
Sum
Prime Cost Sum

Provisional Sum or Provisional Lump Sum:
Condition 6 of GCC :
Means a lump-sum included by MES in the tender

documents and represents the estimated value of work
for which details are not available at the time of going to
tender.
The firm drawings and the quantities of items of

work required for execution of certain works may not be
available at the time of going for tender action, however;
The broad particulars / nature of the work and
approximate cost are only available based on which the
Lump sum provision (at par SSR) is made in the General
Summary of the tender documents so that the tenderer can
quote a percentage above/ below SSR for the work.
The Provisional Lump sum shall be omitted and
the extent of work actually required to be executed against
the Provisional Lump-sum shall be ascertained and added
through a separate Deviation Order adjusted by the
percentage quoted by the contractor.
Provisional Sum or Provisional Lump Sum:
The nature of items of work covered in

Provisional Lump Sum is such that after the drawings
and designs are firmed up, these can be priced on the
SSR
For example: The size/ span of culverts and
the number of culverts for undulating site can not be
decided at the time of tender action but it can be decided
after levels of the site are taken , contour map is drawn,
fixing of the plinth level of buildings and crest level of the
road and Area Drainage. Other examples may include
Excavation and Earthwork incl cutting n filling for
levelling up the site
In e tendering:
Estimated total amount based on SSR rates will be
inserted as an item in the BOQ.
The percentage shall be derived in the excel sheet
automatically by the system in the excel sheet BOQ
based on the amount quoted against this item by the
tenderer.
Prime Cost or Prime Cost Sum:
Condition 5 of GCC refers
Means the amount actually paid by the contractor

for any article, commodity or special work and include all
proper charges for packing, carriage and delivery to the
site, after deduction of all trade discounts, rebates and
allowances and all discounts obtainable for cash in so far
as such discounts exceed 2 ½ percent.
The prime cost sum(s) shall be reserved for the
supply of the materials or the execution of the work by
persons to be nominated by the accepting officer of the
contract or selected in the manner as he may direct.
The full amount of PC Sum inserted in tender
documents and the value of the percentage addition quoted
by the contractor to cover OH&P shall be deducted from the
contract sum by DO and the contractor shall be paid the
actual prime cost amount paid by contractor (based on
quotations/ invoices/ receipted bills) plus the percentage
quoted by the contractor to cover overheads and profit.
E.g., Provide a PC for Rs 5k for supply only of 6mm thick
triplex glass for steel window in all buildings, Supply and
installation of 2 No of Passenger Lifts( 12 persons) incl all
necessary work.
Condition 19
Refund of
Condition 68
With in 28 days of receipt of letter of acceptance, the
successful contractor shall deliver to the Accepting Officer a
performance security, in form of a Bank Guarantee Bond or
Government Securities, FDR or any other government
instruments stipulated by the Accepting Officer, for an amount
equivalent to 5% of the contract sum.
The BGB submitted by the contractor shall be got

Performance confirmed from the head office of the issuing
Nationalized/ Scheduled Bank.
Security
Failure of successful contractor to comply with the
[Condition requirements of Submission of Performance security shall
constitute sufficient grounds for cancellation of award of work
19] and forfeiture of earnest money.
In case of MES enlisted contractor amount equal to the earnest

money stipulated in the notice inviting tender shall be notified
to the tenderer for depositing the amount through MRO.
Issue of tenders to such tenderer shall remain suspended till

the aforesaid amount equal to the earnest money is deposited
in government treasury.
The Performance security and the interest arising there-from can be
utilized by government to offset any amount due from the contractor.
In the event this performance security getting reduced due to such

deduction or sale, the contractor shall with-in ten days thereafter shall
make good deficiency thus caused in Performance security.
Government shall not be responsible for any loss of security, or any

depreciation in value of security while in their charge nor for loss of
Performance interest thereon.
Security In the event of contract being cancelled under condition 52, 53, & 54 of
[Condition GCC, the performance security shall be forfeited in full and shall be
credited into consolidated fund of India.
19]
The Earnest Money will be refunded to the contractor after the
Performance Security Deposit is lodged by the contractor.
Work order No 1 shall be placed only after submission of Performance

Security Deposit.
The Performance security shall be
refunded to the contractor after:
Refund of (a) Expiration of Defects Liability

Performance Period (vide condition 46 of GCC)
Security
[Condition (b) Payment of Final Bill
68]
(c) No demand Certificate has
been rendered on IAFW-451
Reasons of Disputes
in Contracts
and
Alternative Dispute
Resolution
Mechanisms
CAUSES
LEADING TO
DISPUTES
• Faulty contracts
• Faulty administration
• Default by the
contractor
• Unreasonable
attitude adopted by
the contractors
FAULTY CONTRACTS
• Discrepancy/ambiguity in the same
document or different documents
forming part of the contract
• Contradictory/Missing details in drgs
• Incorrect description of the items/

Specifications/ typographical mistakes
• Impractical provisioning/ period of

completion
FAULTY CONTRACTS
• The local materials of specs mentioned
in CA are not available in the area
• Bad drafting: careless cut and paste
• Apparent hurry to conclude contracts
• Material mentioned in the CA is banned

by court order mainly ban on mining
(course agg., river sand, etc)
• Incorrect pricing of item or unit
• Incorrect Ground Data

FAULTY ADMINISTRATION
• Failure in handing over clear / obstruction free site & changes in
siting
• Delay in approval/rejection of sample/ makes
• Delay in decisions/ clarifications
• Delay in drawings for execution of work
• Execution of Changes without pricing, approval and placing of

Deviation Orders
• Execution and Completion of works of provisional schedules without

Placing ADD BACK Dos [Finalization of variation in quantities]
• Taking decisions without properly examining the contract conditions
• Recording incorrect measurements and / or omitting to record

certain measurements
• Failure in taking proper & timely actions such as issue of notices.
• Drastic variations in the works at execution stage based on the

Users requirement(s)
• Amendments if Site Documents without authentication by contractor.
• Delay in H/O of Bldgs by users

• Failure to maintain and make necessary endorsements in
Works Diary & Site Order Book and other important site
documents
• Delay in procurement of certain items to be issued under

Schedule ‘B’
• Failure in taking initial and final levels at site before and during
execution of earthwork and
• Decision not taken & recorded w.r.t strata met with at site of
work
• Non-payment for work done pending AIP

• Getting the items of works executed outside the
scope of work
- without finalization of star rates and
- even without obtaining basic details required for
finalization of star rates (quotations and Purchase Vrs) &
- the contractor’s consent
Most of the faults mentioned above in drafting,

conclusion and administration of contract lead to /are
termed as breach in contract in the arbitration
proceedings
DEFAULT BY CONTRACTOR
• Poor allocation & management of resources leading to delays and losses
• Low quotes to grab contractors/make inroads into MES
• Shaky financial position of contractors
• Non-appointment of well qualified site engineer/ representatives
• Execution of work is defective/ poor quality
• Failure to complete the work in time and then disputing levy of

compensation
• Failure to complete the work leading to cancellation of contract and

execution of balance portion of work at the risk and cost of the contractor
DEFAULT BY CONTRACTOR
• Furnishing of undertaking & then Withdrawing the
undertaking on flimsy reasons/ grounds after the
department has taken decision/ action in view thereof
• Employment of workmen of inferior skills
• Procurement of material from un-authorized sources/

by improper manner to save taxes/ duties and the like
• Subletting of work without obtaining permission of

Accepting Officer
• Non-Deployment/ utilization of mobilization advance in

the work and use it elsewhere
UNREASONABLE ATTITUDE ADOPTED BY CONTRACTOR
• Preparing frivolous claims
• Non-cooperative attitude at the time of recording of

measurements & signing of Star Rates & deviation
orders
• Deliberate avoidance in submission of Purchase Vrs,

test certificates and other documents sought by
department
• Not attending rectification of defects
• Non cooperative attitude at the time of finalization of

Final Bill
ARBITRATION IS AN
ALTERNATIVE DISPUTE
RESOLUTION MECHANISM
WHAT IS A DISPUTE?
ANY CLAIM WHICH THE OTHER
PARTY:
REFUSES TO ADMIT
OR
DOES NOT PAY
MODES OF DISPUTE RESOLUTION
• BY JUDICIAL PROCESS
(LITIGATION IN CIVIL COURTS)
• THROUGH ALTERNATIVE DISPUTE

RESOLUTION MECHANISM (ADR)
VARIOUS MODES OF
ALTERNATIVE DISPUTE RESOLUTION
(ADR)
NEGOTIATION
MEDIATION
CONCILIATION
ARBITRATION
NEGOTIATION
• Direct one to one interaction
between parties
• No third party intervention
• Reaching to conclusion by discussion
• No imposition of decision
MEDIATION
• THERE IS A THIRD PARTY: A MEDIATOR
• HE FACILITATES THE RESOLUTION

PROCESS
• DOES NOT IMPOSE A RESOLUTION

CONCILIATION
• THERE IS A THIRD PARTY: A CONCILIATOR
• A PROCEDURE LIKE MEDIATION
• BUT THE CONCILIATOR, TAKES A MORE
INTERVENTIONIST ROLE IN:
– BRINGING THE PARTIES TOGETHER
– SUGGESTING POSSIBLE SOLUTIONS
– PERSUADING PARTIES TO HELP ACHIEVE
SETTLEMENT
CONCILIATION:
• Conciliation is a form of ADR for amicable
settlement of disputes between parties.
Features:
• Aim is to achieve an amicable settlement
• Unlike, litigation or Arbitration there is no
judgment is imposed/forced upon the parties
• Any party is free to walk out of the process any
time if no amicable solution is expected.
• There is a third party intervention i.e. Conciliator
ARBITRATION:
• Arbitration is a form of Alternative Disputes Resolution
between parties. Features:
• Dispute is resolved through adjudication as done in
litigation
• Adjudication is done by a third person: an Arbitrator
• Arbitrator, unlike judges, is a private person appointed
with parties’ own choice
• Judgment (award) given by Arbitrator is final & binding
on both parties
• Judgment (award) is equivalent to a court decree &
executed/implemented accordingly
Civil Procedure Code 1908
Sec 89: Settlement of disputes outside Court
The 2002 amendment to the CPC, 1908 is an
effort at making litigation more effective and
speedy
Where it appears that there exist elements of a
settlement, court may by itself, proactively refer a
dispute for ADR as under:
(a) Arbitration
(b) Conciliation
(c) Judicial settlement including settlement through Lok
Adalat; or
(d) Mediation
Sec 89: Settlement of disputes outside Court
Where a court refers a dispute:
(a) for Arbitration or Conciliation, the provisions
of the Arbitration and Conciliation Act, 1996
shall apply
(b) to Lok Adalat, the provisions of the Legal
Services Authority Act, 1987 shall apply
(c) for Mediation, the court shall effect a
compromise between the parties and shall
follow such procedure as may be prescribed
ADVANTAGES OF ARBITRATION
• Technical matter : appropriate special
qualifications of the Arbitrator
• Speedier than a court case
• Saving in the costs
• Unwanted publicity can be avoided
• Convenience of the parties as to time
and place
• Simplicity of procedure
• Arbitrator by consent of parties
BENEFITS TO PARTIES
• Choice of arbitrator(s)
• Choice of issues to be arbitrated
• Choice of place of arbitration
• Choice of Substantive Law that will
control the merits of the dispute
• Choice of procedural rules
• Choice of time schedule
DISADVANTAGES
• Arbitrator may be incompetent or
biased
• Injustice may result from informality

of procedure
• May suffer from infirmities with

regard to procedure, evidence, etc
THE ARBITRATION AND
CONCILIATION ACT, 1996
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Section 2: Definitions
Arbitration Agreement: an agreement as referred

to in section 7
Arbitral Tribunal: a sole arbitrator or a panel of

arbitrators
Court: The Principal Civil Court of original

jurisdiction in a district and includes the High
Court in exercise of its Ordinary Original Civil
Jurisdiction.
Sec 7: Arbitration Agreement
1. An agreement by the parties to submit to

arbitration all or certain disputes which have
arisen or which may arise-in respect of a
defined legal relationship, whether contractual
or not
2. May be a part of a contract or in the form of a

separate agreement
Section 7: Arbitration Agreement
3. Arbitration Agreement shall be in writing in the

form of a document signed by parties,
exchange of letters, in exchange of SOC & PID
in which the agreement is alleged by one party
and not denied by the other party
4. Reference in a contract to a document

containing an arbitration clause constitutes an
arbitration agreement if the contract is in
writing and the reference is such as to make
that arbitration clause part of the contract.
SECTION 10: NUMBER OF ARBITRATORS
1) The parties are free to determine the number

of arbitrators, provided that such number
shall not be an even number
2) Failing the determination referred to in sub-

section (1), the arbitral tribunal shall consist
of a sole arbitrator
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SECTION 11: Appointment of an Arbitrator
(1) Any nationality or as agreed by the parties
(2) Parties free to agree on procedure for

Appointing arbitrator(s) subject to sub sec (6)
(3) Failing any agreement referred above, in an

arbitration with three arbitrators, each party shall
appoint one arbitrator, & two appointed
arbitrators shall appoint the third arbitrator who
shall act as the presiding arbitrator
SECTION 11: Appointment of an Arbitrator
(4) If the above said actions are not taken within

30 days the appointment shall be made, upon
the request of a party, by the Chief Justice
(5) Failing any agreement referred to in sub section

(2) above in an arbitrator with the sole arbitrator,
if the parties fail to agree on the arbitrator with
in 30 days from the receipt of request by one
party from the other party to so agree the
appointment shall be made upon the request of
a party, the Chief Justice
(6) Where under an appointment procedure
agreed upon by the parties:
(a) a party fails to act as required under that
procedure; or
(b) the parties, or the two appointed arbitrators
fail to reach an agreement expected of them
under that procedure; or
(c) a person including an institution, fails to
perform any function entrusted to him or it
under that procedure, a party may request the
Chief Justice to take the necessary measure,
unless the agreement on the appointment
procedure provides other means for securing the
appointment.
(7) A decision on a matter entrusted under
subsection 4/5/6 to the Chief Justice is final.
(8) The Chief Justice in appointing an arbitrator
shall have due regards to:
(a) any qualifications required of the arbitrator
by the agreement of the parties; and
(b) other considerations as are likely to secure
the appointment of an independent and
impartial arbitrator
(9) In International Commercial Arbitration the
Chief Justice of India may appoint an arbitrator
of an nationality other than the nationalities of
the parties where the parties belong to different
nationalities.
(10) The Chief Justice may make such scheme as
he may deem appropriate for dealing with
matters entrusted to him under subsection
(4)/(5)/(6) above
(11) Where more than one request has been made
under subsection 4/5/6 to CJ of different High
Courts, the CJ to whom the request has been
made first shall alone be competent to decide
on the request.
(12) (a) Where the matters referred to in
subsection 4/5/6/7/8/10 arise in International
Commercial Arbitration the reference to Chief
Justice shall be construed as a reference to the
Chief Justice of India
Jurisdiction of arbitral tribunals
Section 16.Competence of arbitral tribunal to rule on its
jurisdiction
(1) The arbitral tribunal may rule on its own jurisdiction,
including ruling on any objections with respect to the
existence or validity of the arbitration agreement, and
for that purpose,:
(a) an arbitration clause which forms part of a contract
shall be treated as an agreement independent of the
other terms of the
contract; and
(b) a decision by the arbitral tribunal that the contract is
null and void shall not entail ipso jure the invalidity of
the arbitration clause.
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(2) A plea that the arbitral tribunal does not have
jurisdiction shall be raised not later than the
submission of the statement of defence; however, a
party shall not be precluded from raising such a plea
merely because that he has appointed , or
participated in the appointment of, an arbitrator.
(3) A plea that the arbitral tribunal is exceeding the
scope of its authority shall he raised as soon as the
matter alleged to be beyond the scope of its
authority is raised during the arbitral proceedings.
(4) The arbitral tribunal may, in either of the cases
referred to in sub-section (2) or sub-section (3), admit
a later plea if it considers the delay justified.
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(5) The arbitral tribunal shall decide on a plea referred
to in sub-section (2) or sub-section (3) and, where the
arbitral tribunal takes a decision rejecting the plea,
continue with the arbitral proceedings and make an
arbitral award.
(6) A party aggrieved by such an arbitral award may

make an application for setting aside such an arbitral
award in accordance with section 34.
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Section 33.Correction and interpretation of award;
additional award
(1) Within thirty days from the receipt of the arbitral
award, unless another period of time has been agreed
upon by the parties:
(a) a party, with notice to the other party, may request
the arbitral tribunal to correct any computation errors,
any electrical or
typographical errors or any other errors of a similar
nature occurring in the award;
(b) if so agreed by the parties, a party, with notice to
the other party, may request the arbitral tribunal to
give an interpretation of a
specific point or part of the award.
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Section 33.Correction and interpretation of
award; additional award
(2) If the arbitral tribunal considers the request
made under sub-section (1) to be justified, it
shall make the correction or give the
interpretation within thirty days from the receipt
of the request and the interpretation shall form
part of the arbitral award.
(3) The arbitral tribunal may correct and error of
the type referred to in clause (a) of sub-section
(1), on its own initiative, within thirty
days from the date of the arbitral award.
(4) Unless otherwise agreed by the parties, a
party with notice to the other party, may
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request, within thirty days from the receipt of
the arbitral award, the arbitral tribunal to make
an additional arbitral award as so claims
presented in the arbitral proceedings but
omitted from the arbitral award.
(5) If the arbitral tribunal considers the request
made under sub-section (4) to be justified, it
shall make the additional arbitral award
within sixty days from the receipt of such request.
(6) The arbitral tribunal may extend, if necessary,
the period of time within which it
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shall make a correction, give an interpretation or

make an additional arbitral award under sub-
section (2) or sub-section (5).
(7) Section 31 shall apply to a correction or

interpretation of the arbitral award or to an
additional arbitral award made under this
section.
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Sec 34: Application for setting aside arbitral
award
(1) Recourse to a Court against an arbitral award
may be made only by an application for setting
aside such award in accordance with sub-section
(2) and sub-section (3).
(2) An arbitral award may be set aside by the
Court only if: (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
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award
(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 the submission to arbitration, or it
contains decisions on matter beyond the scope
of the submission to arbitration: Provided that, if
the decisions on matters submitted to arbitration
can be separated from those not so submitted,
only that part of the arbitral award
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Sec 34: Application for setting aside arbitral award
which contains decisions on matters not submitted to
arbitration may be set aside; or
(v) the composition of the arbitral tribunal or the
arbitral procedure was not in accordance with the
agreement of the parties, unless
such agreement was in conflict with a provision of this
Part from which the parties cannot derogate, or, failing
such agreement, was not in accordance with this Past;
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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Sec 34: Application for setting aside arbitral award
(ii) the arbitral award is in conflict with the public policy
of India.
(3) An application for setting aside may not be made
after three months have elapsed from the date on which
the party making that application had received the
arbitral award, or, if a request had been made under
section 33, from the date on which that request had been
disposed of by the arbitral tribunal: Provided that if the
Court is satisfied that the applicant was prevented by
sufficient cause from making the application within the
said period of three months if may entertain the
application within a further period of thirty days, but not
thereafter.
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award
(4) On receipt of an application under sub-

section (1), the Court may, where it is appropriate
and it is so requested by a party,
adjourn the proceedings for a period of time
determined by it in order to give the arbitral
tribunal an opportunity to resume the
arbitral proceedings or to take such other action
as in the opinion of arbitral tribunal will eliminate
the grounds for setting aside the
arbitral award.
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INCAPACITY OF PARTY
INVALID ARBITRATION AGREEMENT
COMPOSITION OF ARBITRATION TRIBUNAL NOT
ACCORDANCE WITH AGREEMENT
PARTY UNABLE TO PRESENT THE CASE
FAILURE TO CONSIDER VITAL DOCUMENTS
AWARD BASED ON NO EVIDENCE
ARBITRATOR ACTING BEYOND SUBMISSION
AWARD IN IGNORANCE OF TERMS OF CONTRACTS
AWARD CONTRARY TO LAW AND SUBSTANCE OF
DISPUTE
INCONSISTENT FINDINGS IN AWARD
FAILURE TO ADJUCATE
AWARD BY ILLEGALLY CONSTITUTED TRIBUNAL
MATTER NOT CAPABLE OF SETTLEMENT
AWARD CONTRARY TO PUBLIC POLICY
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Precondition for appointment of arbitrator
(a) There should be disputes between the parties to the contract;
(b) the party who wishes to refer the disputes to arbitration should
serve a written notice to the other party of their intention (in
terms of condition 70 of IAFW-2249 GCC) before the authority
mentioned in the contract may appoint a serving engineer
officer as the sole arbitrator for adjudication of disputes.
Where the department taken the initiative of referring claims against

the contractor to arbitration a copy of the request made by the
accepting officer to the appointing authority for appointment of
arbitrator must invariably be endorsed to the contractor under
Registered A/D post by way of notice to him in terms of condition 70 of
IAFW-2249
Precondition for appointment of arbitrator
Unless both the parties agree in writing, reference to arbitration shall
not take place until after completion of work or alleged completion of
work or termination or determination of the contract under condition
55, 56 and 57 of IAFW-2249 General Conditions of Contract (GCC).
Procedure for Appointment of Arbitrator
Where the contractor has signed the final bill without any protest or
reservation and has also received the payment without any protest no
appointment of arbitrator shall be done as the accord and satisfaction as
per section 63 of the Indian Contract Act -1872 has been fulfilled and
the subsequent claims raised by the contractor are deemed to have
been waived and extinguished in accordance with Condition 65 of
IAFW-2249 General conditions of contracts and judgments on the
matter. [In such cases non concurrence letter shall be forwarded to the
Appointing Authority by Accepting Officer]
In all other cases the appointment of arbitrator shall be done without

any reference to the list of claims, with a request to Arbitrator to decide
the jurisdiction and arbitrability of claims of both the parties which will
be submitted before the arbitrator by the respective parties in their
Statement of Claims.
The sole arbitrator should be requested to first decide on the
jurisdiction and arbitrability of claims:
(i) which are covered under the final and binding powers of CWE
any other officer mentioned in the contract;
(ii) those which have been raised by the contractor after signing the
final bill with some specific claims;
(iii) those claims for which there is specific prohibition in the
contract.
ACA-1996 confers the power on Arbitrator to decide on his own
jurisdiction under section 16 thereof
Therefore, all objections regarding jurisdiction and arbitrability of

claims shall be raised before the arbitrator u/s 16 of ACA-1996 at the
onset of arbitration
The proforma for appointment of arbitrator (as per Appendix 28.1 of
Contract Manual) shall be Faxed to Appointing Authority within seven
days of receipt of notice from the contractor.
As per Section 11 of ACA-1996 the appointment of arbitrator has to be

made by the appointing authority with in 30 days from the date of
receipt of notice invoking arbitration failing which the contractor shall
have the right to file an application in the court for appointment of
arbitrator.
The court case thus filed by the contractor shall be defended by the
Accepting officer relying upon Supreme Court of India judgment in case
of SBP & Co Vs Patel Engineering Ltd Para 32.1 of Contract Manual refers
Preparation & Defence of Arbitration cases
Condition 70 stipulates a period of 6 months for making and publishing
the award
Arbitrator is required to enter into reference with in one month of

receipt of communication of his appointment as Sole Arbitrator.
Statement of case, Pleadings-in-Defence & rejoinder &/or any other

correspondence addressed to arbitrator (with copy to Contractor) shall
be signed by Accepting Officer to meet the legal requirement and shall
be submitted within the time frame fixed by the arbitrator.
The Accepting Officer may appoint a team of officers for preparation &
defence or presentation of the arbitration case
The Government case should include for interest on Government claims
and cost of Reference and detailed justification for the same.
Decision of certain authorities have been considered as final, conclusive
and binding in contract provisions:
Such decisions shall be taken by the designated authorities and
conveyed at appropriate stage and manner &
Shall be well defended before the arbitrator stating that all such
cases fall under “Excepted Matters” and are as such outside the
jurisdiction of the arbitrator in terms of Section 16 of ACA-1996
Documents maintained between the parties such as Site Order Book,
Works Diary, Measurement Books, Deviation Orders, Cement
Consumption Register, Work Stage Passing Register, etc shall be shown
to the contractor, for making notes/ Xerox copies, if he so desires.
Action(s) to be taken on receipt of AWARD:
Section 33 of ACA-1996 states that within 30 days from the receipt of

award, a party with notice to the other party may request the Arbitral
Tribunal to correct any computation errors, any clerical or typographical
error or any other error of similar nature occurring in the award.
The Arbitral Tribunal, consequent to such application or suo moto may

correct any error in the award.
Procedure for implementation or filing objections against the award
The procedure for implementation of awards/filing objection against awards

shall be as under:
(a) In respect of awards, where the total amount awarded in favour of the
contractor (excluding the final bill amount, Security Deposit, interest etc due
to the contractor) does not exceed Rs. 2,00,000/-, the Accepting Officer
[CWE in respect of GEs contracts], may himself take a decision as regards
implementation/contesting of the award in consultation with concerned Govt.
Counsel/CGSC
(b) In respect of award, where the total amount awarded in favour of the
to the contractor) is in excess of Rs. 2,00,000/- but does not exceed Rs.
10,00,000/-, the Accepting Officer (CWE in respect of GE contracts) will seek
the advice of LA (Def)/Branch Sectt, Min of Law as applicable.
However, cases where advice of LA (Def) is required, CE Zone shall

submit the case to E-in-C's Br. along-with his recommendations. CE Zone/
Project shall take a decision regarding implementation/ contesting of the
award based on the advice of LA (Def)/ Branch Sectt., Min of Law.
(c) In respect of award, where the total amount awarded in favour of the
to the contractor) is in excess of Rs. 10,00,000/- the Accepting Officer (CWE
in respect of GE contracts) will seek the advice of LA (Def)/Branch Sectt, Min
of Law as applicable.
However, cases where advice of LA (Def) is required, CE Zone shall

submit the case to E-in-C's Branch alongwith his recommendations. DGW
shall take a decision regarding implementation/ contesting of the award
based on advice of LA (Def)/Branch Sectt, Min of Law.
(d) While referring the case of LA (Def)/Branch Sectt, Min of Law, all relevant
documents pertaining to the arbitration such as certified copy of CA including General
Conditions of Contract, Statement of the Claims and Pleadings in Defence submitted to
the arbitrator by both the parties, copy of the arbitration award etc should be
forwarded to them.
The salient points as well as any matter of special significance or interest,

which has a direct bearing on the arbitration, should be highlighted in the forwarding
letter and the relevant paras in statement of claims/ defence should be margin lined
for easy reference.
If any Counsel had been engaged to represent the Union of India during the
arbitration hearing, his comments should also be obtained (without payment of any
fees) and the same also furnished to LA(Def)/Branch Sectt.
The LA (Def)/Branch Sectt should be requested to offer the advice/ opinion on

the awards.
They should also be requested to indicate the specific grounds U/S 34 of

Arbitration and Conciliation Act, 1996 on which the award should be contested, if their
advice is to contest the award
Action to contest or implement the award should be taken as per

advice given by the Ministry of Law/Branch Sectt.
If in case the Accepting Officer (or CWE in case of contract accepted

by GE) feels that the facts of the case are not fully appreciated by Ministry of
Law/Branch Sectt or fresh facts/consideration have come to light and hence
reconsideration of advice rendered by Ministry of Law/Branch Sectt. is
required.
In such cases, the following actions should be taken:
(i) LA (Def)/Br Sectt, Min. of Law should be re-approached with new facts for
reconsideration of advice and further action should be taken as per the final
advice.
(ii) The case should be sent to E-in-C's Branch through CE Zone, by hand
through an officer
well conversant with case, where advice of LA (Def) is required.
Application for setting aside award U/S 34 of ACA-1996 has to be filed within
three months from the date on which the party making that application had
received the award or if a request has been made under Section 33, from the
date on which that request had been disposed of by the Arbitral Tribunal.
In view of above, it is necessary that the advice of LA (Def)/Br Sectt,

Min of Law should be obtained expeditiously so that wherever required the
objections to the award can be filed within limitation period and Govt.
interest is safeguarded.
However delayed cases after receipt of award or after filing of the

objections in the court results into severe criticism from LA (Def) and Min of
Defence and LA (Def) has declined to render his legal advice in such cases
stating that since the objections to the award have already been filed without
their advice, as such seeking advice at this stage will serve no purpose.
In few cases, the objections to the award were filed without advice of
LA (Def) and subsequently LA (Def) advised to implement the award
rendering the entire exercise of filing objections futile.
In order to avoid the embarrassing situations as mentioned above, it will

be ensured that the complete case for obtaining advice of LA (Def) is forwarded
within one month from the date of receipt of the award so that the advice of LA
(Def)/Branch Sectt, Min of Law is available at the time of filing of objections to
the award within the limitation period of three months laid down in Section 34(3)
of Arbitration and Conciliation Act, 1996.
In case, the documents for obtaining legal advice are not received in E-
in-C HQ within one month from the date of receipt of the award, the Director
(contracts) shall bring the documents personally to E-in-C HQ along-with
explanations for delay under the signature of Chief Engineer Zone.
In cases where legal advice of Br Sectt, Min. of Law is to be obtained, the

same shall be obtained within 30 days from the date of receipt of award. If the
legal advice is to contest the award, action shall be taken accordingly.
However, where legal advice is to implement the award, the decision

shall be taken by the Accepting Officer, (CWE in respect of GE contracts) or CE
Zones/Project as the case may be, or the case shall be forwarded to E-in-C's Br
within 45 days of publication of award for decision of the DGW in accordance with
subsection 30.2.1 of Manual on Contracts as the case may be.
IMPORTANT POINTS
1. THE PERIODICITY FOR WORKING OUT THE
VARIATIONS WILL BE THREE MONTHS.
2. THE FIRST VARIARION SHOULD BE FOR THE

PERIOD OF THREE MONTHS RECKONED
FROM THE BID SUBMISSION END DATE
3. WHOLESALE PRICE INDEX FOR ALL

COMMODITIES ARE PUBLISHED EVERY
MONTH. THUS THE INDEX APPLICABLE FOR
ANY DAY SHALL BE ONE APPLICABLE FOR
THE PRECEDING MONTH.
IMPORTANT POINTS
4. THE MONTHLY INDEX NUMBERS OF
WHOLESALE PRICES ARE PUBLISHED BY
THE ECONOMIC ADVISOR TO GOVT OF
INDIA. WEBSITE– http://eaindustry.nic.in.
5. LATEST BASE YEARS OF INDICES SHALL BE

SPECIFIED IN CONDITIONS. AT PRESENT
BASE YEAR 2011-12=100)
MATERIALS
THE MATERIAL COST COMPONENT
INCLUDING THE COST OF THE MARIALS ISSUIED
UNDER SCH B SHALL BE TAKEN AS KM % OF
THE VALUE OF THE WORK EXECUTED UNDER
THE CONTRACT.
MATERIALS
EM = VARIATION IN PRICE OF MATERIAL TO BE ADJUSTED

KM = CONSTANT REPRESENTING THE PERSENT COST OF THE
MATERIAL TO WORK DONE
Vg = GROSS VALUE OF WORK DONE AT UPTO THE LAST DATE OF
PERIOD OF RECKONING.
VS = VALUE OF ALL MATERIAL LYING AT SITE INCLUDING SCH
B AND INCLUDING MATERIALS BROUGHT AND PAID OR
PAYABLE TO CONTRACTOR UNDER PRIME COST SUM AND
/OR STAR RATES.
VB = VALUE OF ALL MATERIALS (OUT OF Vg AND VS ) ISSUED
UNDER SCH ‘B’ PLUS VALUE OF ALL MATERIALS BROUGHT
AND PAID OR PAYABLE TO CONTRACTOR UNDER PRIME
COST SUM AND /OR STAR RATES.
MATERIALS
W1 = WHOLE SALE PRICE INDEX FOR ALL
COMMODITIES AS ON DATE OF COMMENCEMENT OF
PERIOD OF RECKONING.
W0 = AS FOR W1 BUT THE INDEX AS ON THE BID

SUBMISSION END DATE
VM1 = VALUE OF MATERIAL UPTO THE LAST DATE OF

THE PERIOD OF RECKONING FOR WHICH PRICE
VARIATION ADJUSTABLE AS WORKED OUT AS PER
FORMULA FOR VM
VM2 = -do- BUT AS ON DATE OF IMMEDIATE
PRECEDING PERIOD OF RECKONING.
LABOUR
THE LABOUR COMPONENT FOR THE WORK UNDER THE
CONTRACT AS A WHOLE SHALL BE TAKEN AS KL % OF THE VALUE OF
WORK .VARIATION IN LABOUR WAGES SHALL BE WORKED OUT AS
UNDER.
EL = VARIATION IN WAGES OF LABOUR REIMBURSEMENT TO BE MADE TO

CONTRACTOR
KL = CONSTANT REPRESENTING THE PERSENT COST OF LABOUR
ELEMENT TO WORK DONE
Vg1 = GROSS VALUE OF WORK DONE DURING THE PERIOD OF RECKONING
USING VALUES OF Vg FOR CALCULATING VM1 AND VM2
L1 = MINIMUM WAGE IN RUPEES OF AN UNSKILLED ADULT MALE MAZDOOR
F0 = AS FOR F1 BUT THE INDEX AS ON THE LAST DUE DATE FOR RECEIPT OF
TENDERS.

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ORGANISATION & ROLE

 Contract officers posted in all MES formations

 Role : Technical Advisor to head of the office on

• Evolving a flawless contract procedure.

• Drafting specifications for materials and

• Preparation of Standard Schedule of Rates, analysis

• Cost Analysis during the various stages of planning

• Tender action: Preparation of tender, creation,

• Enlistment of contractors and maintaining up-to-date

• Arbitration cases/ Law Suits: Settlement of claims,

Enlisting Authority for SS Class Contractors

Finalization of serious ADGTEs cases

Appointment of Arbitrator for contracts

LA Def Advice on court cases and decision

 Rendering advice to Command CE on Contract

 Scrutiny and follow up action on the Performance

 Competent Authority to Publishing Work Load Return

 Maintaining liaison with STE and CDA Command with

 Collection of data for revision of Standard Schedule

 Maintenance of liaison with STATE PWD, CPWD,

 Assisting Zonal Chief Engineers under the Command

 Adviser to Chief Engineer on all Contract Matters.

 Preparation of tender docs & conclusion of contract

 Enlistment of contractors in class ‘E’

 Technical check of a percentage of contractor’s final

 Technical Check of Deviation orders and Technical

 Defending Arbitration Cases & Monitoring Court Cases

 Monitor timely payment of final Bills and clearance/

 Preparation of tender docs & conclusion of contract

 Technical check of all deviation orders & star rates

 Technical check of all contractor’s bills for Advance on

 Issue of Work orders/ deviation orders/ notices to the

 Initiation of all cases/ reports pertaining to contract

the documents mentioned herein after

2. SSR Part – I [Specifications] 2009 DULY AMENDED

3. SSR Part – II [Rates] 2010 DULY AMENDED

4. General conditions of contracts [IAFW-2249] DULY AMENDED

5. General conditions of contracts [IAFW-1815-Z] DULY AMENDED

6. Indian Contract Act -1872

7. Arbitration and Conciliation Act-1996

8. Arbitration and Conciliation Act-Amendment 2015

9. Arbitration and Conciliation Act-Amendment 2019

10. Indian Limitation Act -1963

11. Practical Information for Quantity Surveyors by SHRI PT JOGLEKAR

1. Defence Works Procedure 2020

4. Indian Standards Code of Practice

 CATEGORIES OF WORK FOR REGISTRATION

 CRITERIA FOR FRESH ENLISTMENT

 GENERAL GUIDELINES FOR ENLISTMENT

 ENLISTMENT IN ELECTRICAL WORKS

 FRESH ENLISTMENT BASED ON TECHNICAL QUALIFICATIONS

SS NoLimit 15 120.00 E-in-C

 Declaration/undertaking from the applicant contractor in affidavit form, to either obtain

Class Experience (in years)

 LUMP SUM CONTRACTS

 TYPES OF LUMP SUM CONTRACT

 TYPES OF MEASUREMENT CONTRACTS

THE SCOPE OF WORK DESIRED TO BE CARRIED OUT UNDER THE