STREAMLINING THE TENDERING PROCEDURE-1

EXECUTION OF WORKS
STREAMLINING THE TENDERING PROCEDURE
PANCHAYAT RAJ DEPARTMENT
Panchayat Raj & Rural Dept. (Progs.ll) Department.

G.O.Ms.No. 477.

Dated.12-11-1998.

Ref:- 1. G.O.Ms.No. 589, PR Dept., dated 29-9-1989.
 2. Govt. Memo.No. 87931/RS-11/89-3, Dt. 4-10-1990.
 3. G.O.Ms.N0. 132, TR & B(R.I.) Dept. Dt.11-8-1998

O R D E R:—

In the G.O. 1st read above, Government have issued certain rules for Panchayat Raj Engineering Department in regard to inviation and acceptance of tenders. In the Memo second read above executive instructions were issued for entrustment of RWS works on nomination basis. In the G.O. 3rd read above, Govt. have issued comprehensive orders to be followed by all works departments for streamlining the tender procedure and enhancement of technical sanctions to the EEs and SES. In pursunace of these orders the Engineer-in -Chief (PR) has requested the Government in Panchayat Raj & Rural Development Department for issue of executive instructions for Panchayat Raj Engineering Department.

2. Government, after careful consideration of the proposal of the ENC, PR hereby issue the following instructions, in cancellation of the instructions issued in the memo second cited and pending issue of necessary amendment to the rules issued in the G.O. first read above.

1. Items to be included in the estimate after its preparation as per SSR:— The following items may be included in the estimate after its preparation as per SSR:
   1. Turnover tax @ 1% in rates of various items relating to works of canal digging, lining and repairing, road works and other than the above 3% on all categories of contracts.
   2. A lumpsum provision be made in the abstract estimate considering the agreement period and one year's observation period by obtaining the details of insurance premium from insurance organisations.
   3. Lumpsum provisions be made in the estimate to meet the expenditure to be incurred by a contractor on:
      1. Engaging technical personnel
      2. Performance guarantee
      3. Construction of temporary store sheds.
2. Reduction of permissible tender excess:- The tenders with an excess of 20% of the estimated rates shall be summarily rejected.
3. Steps to be taken to ensure that ultimately tender excess is not morethan the prescribed limit:- With a view to prevent collusion or the formation into a ring by contractors, the following procedure shall be followed:
   1. Tender schedules shall be issued till a date prior to the last date of submission of tenders.
   2. Once a contractor buys a tender schedule, he shall not be permitted to return the schedule. After buying a tender-schedule, if a contractor does not tender for the work, his EMD shall be forfeited (cash or bank guarantee or both). If the EMD paid at the time of purchasing the tender-schedules is less because of the contractor having a L.S.D. (Lumpsum Deposit) concession then in forfeiting the EMD, the remaining amount of LSD refunded to the contractor so that he can make a fresh deposit of LSD.
   3. Time allowed from the date of publication of tender notice to the date of receipt of tenders is reduced to 14 days for the first call and 7 days for the second call.
   4. The total value of works grounded in any year including works given through tenders or through nominations shall not exceed the budget provided to each District.
4. How to deal with cases where the tender filed is less than the estimated cost:—Tenders upto 15% less than the estimate may be accepted but for tenders less than 15% of the estimate, a bank guarantee or Demand Draft for the difference between the tendered amount and 85% of the estimate value should be taken so that if the tenderer leaves the works midway and the Department is forced to call for tenders for the work once again, the bank guarantee or Demand Draft shall be used to finance the re-tendered work
5. To improve the work culture and speed up the execution of works, the Govt. issue the following orders:-
   1. The powers of technical sanction be enhanced to Rs. 10 lakhs in respect of an Executive Engineer and Rs.50 lakhs in respect of a Superintending Engineer and these Engineers are given the powers to approve the tender-notices, tender-schedule and finalise the tenders at their level for the works for which they are technically empowered to sanction.
   2. Tenders shall be received in 2 parts in 2 different sealed covers. The first cover shall contain the qualification data viz., annual turnover and value of works under execution. The second cover will contain the financial bid for the works in question. All Engineers opening tenders shall first open the first sealed cover containing the qualification data and see whether the tenderer is qualified by using the formula:

   ²(AN-B) estimate value, where A is annual turnover on all civil contracts of the tenderer.N is period of completion for the wotk for which tender is submitted and B is the value of works under execution by the tenderer.

   The second cover containing th financial bid will be opened only of those renderers who are qualified according to this formula. The financial bids of the tenderers who are not qualified shall not be opened and they shall be kept in the sealed covers only.

   3. For the works above Rs. 50 1akhs and upto Rs.50 lakhs thcetender notice shall be published in District editions of two Telugu Dailies with the largest circulation. For works costing more than Rs.50 lakhs, the tender notices will be published in one Telugu daily and one Englis daily having largest circulation at the State level. To reduce the cost of each publication, the format for the tender notice in the newspaper shall be finalised by the ENC,PR so that the cost of the advertisement is kept to the minimum.
   4. The tender schedules should contain not only the quantities but also the rates worked out by the Department and the amount for each item and the total value of the contract. The tenderer will not be required to quote item wise. He should indicate his willingness to do the work either at the estimated value of the work or at a percentage in excess of the estimated value of the work or at a percentage less than the estimated value of the work. The work order should be issued to the successful tenderer on same day or next day of opening of tenders subject to fulfilment of conditions prescribed. Once the work order is issued to the successful tenderer, EMD of all the remaining contractors should be refunded within 2 days by Registered Post with Acknowledgement Due.
   5. The monetary limits for registration of contractors is revised as follows:
      
      

      Sl. No.	Class of contractor	Monetary Limits	Authority to register
      1.	Spl. Class	above Rs. 5 crores	Board of C.Es.
      2.	Class -I	Rs. 1 to 5 crores	C.Es
      3.	Class -II	Rs. 50 to 100 lakhs	S.Es.
      4.	Class -III	Upto Rs. 50 lakhs	E.Es.

      
      
   6. Contractors who execute their works within time as per specifications shall be issued a merit certificate acknowledging their timely completion ensuring good quality. The merit certificate shall be given in a public function with due publicity to increase the prestige and standing of the contractors in the society. The performance of the contractors on the works shall be obtained and maintained in the offices of the Registering authorities viz., EEs, SES, CES and Board of CEs. The performance shall be assessed annually and the results shall be made use of while considering applications for renewal of contractors' registrations.
   7. Payments for execution of quantities, in excess of agreement quantities, should be made without delay and the EEs should take prompt action to obtain the approvals of the competent authority to make the payment to the contractors. Failure in this regard shall result in disciplinary action being taken against the concerned engineers. Similarly, final payments to contractors should not be delayed for want of a certificate from the Quality Control Staff. The Chief Engineers should ensure proper performance of the Quality Control Wing and see that they give the certificates in time on pain of disciplinary action to avoid delays in the payment of final bills to the contractors.
   8. The site order book shall be maintained as provided for in the Codes and it should contain the remarks and instructions of all engineers who Visit the works viz. the E.E, SE, CE and E in C.

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