GENERAL

The most common mode of executing works for the Army, Navy and Air Force adopted by the Military Engineering Services (MES) is through the agency of contracts.

DUTIES
SURVEYOR CADRE OFFICERS AND STAFF MAINLY DEALS WITH MATTERS PERTAINING TO: EVOLVING A FLAWLESS CONTRACT PROCEDURE. DRAWING UP SPECIFICATIONS FOR MATERIALS AND WORKMANSHIP. PREPARATION OF STANDARD SCHEDULE OF RATES, ANALYSIS OF RATES AND SPECIAL RATES. PREPARATION OF COST ANALYSIS DURING THE VARIOUS STAGES OF PLANNING AND DESIGNING TO ENSURE ECONOMY IN CONSTRUCTION.

DUTIES (Contd)
Preparation, operation and finalization of contracts including technical check of running account receipts (RARs) and final bills for completed works, settlement of claims, disputes, etc. Enlistment of contractors and maintaining up-to-date dossiers of all enlisted contractors. Arbitration cases/ Law Suits.

Contract framing involves the following

PREPARATION OF WELL DEFINED AND PROPERLY WORDED TENDER DOCUMENTS. OBTAINING COMPETITIVE OFFERS FROM TRUSTWORTHY CONTRACTORS. ACCEPTING MOST REASONABLE OFFER AND CONCLUDING CONTRACTS. OPERATING THE CONTRACT EXECUTION TILL FINALIZATION. DURING

SETTLING DISPUTES, IF ANY, THROUGH ARBITRATION.

E-IN-C`S BRANCH Jt.DG (CONTRACTS)

CE COMD Jt.DG (CONTRACTS) OR DIR (CONTRACTS)

CE ZONE DIR(CONTRACTS)

CWE Jt./Asst DIR(CONTRACTS)

E-in-Cs Branch
Policy instructions Instructions on contract procedure and related matters. Finalization of serious ADGTEs cases

Chief Engineer Command

Rendering advice to Comd CE on Contract matters under the Command. Upgrading/Enlisting the contractors Maintaining documents. contractors enlistment

Scrutiny and follow up action on the performance report of contractors submitted by the Zones

MAINTAINING LIAISON WITH STE AND CDA COMMAND WITH REFERENCE TO THE TES OBSERVATIONS AND RECOVERIES OF

DISCIPLINARY ACTION ASPECTS CONTRACTORS IN THE COMMAND.

COLLECTION OF DATA FOR REVISION OF SSR AND MAINTENANCE OF LIAISON WITH STATE PWD, CPWD, RAILWAYS AND ANY OTHER AGENCIES ASSISTING ZONAL CHIEF ENGINEERS IN THE COMMAND IN VETTING OF PLEADINGS IN DEFENCE & DEFENDING IMPORTANT ARBITRATION CASES.

CE ZONE
PROJECT ADVISER TO CE ON ALL CONTRACT MATTERS. SUPERVISES PREPARATION DOCUMENTS & ESTIMATION QUANTITIES IN THE ZONE OF TENDER OF BILLS OF

TECHNICAL CHECK OF STAR RATES ABOVE RS 50000 FINANCIAL EFFECT ARBITRATION MATTERS ENLISTMENT OF CONTRACTORS IN CLASS A TO D

CWE OFFICE
PREPARATION DOCUMENTS OF TENDER/CONTRACT

ENLISTMENT OF CONTRACTORS IN CLASS E & F TECHNICAL CHECK OF A PERCENTAGE OF CONTRACTORS FINAL BILLS BEFORE PAYMENT DEFENDING ARBITRATION CASES,

INTRODUCTION AND IMPORTANT SECTIONS OF INDIAN CONTRACT ACT

THE INDIAN CONTRACT ACT-1872

THE BILL PERTAINING TO ACT 9 OF 1872 WAS PASSED ON 25th APRIL, 1872 AND THE ACT CAME INTO FORCE ON THE FIRST DAY OF SEP, 1872. THE ACT IS COMPRISING OF CHAPTERS AND SECTIONS :CHAPTERS = XI SECTIONS = 238 IN ADDITION TO CHAPTERS & SECTIONS THE ACT ALSO CONTAINS PRELIMINARY AND SCHDULE

INTERPRETATION OF CONTRACT
 WHEN ONE PERSON SIGNIFIES HIS WILLINGNESS TO DO OR TO ABSTAIN FROM DOING ANYTHING, WITH A VIEW TO OBTAINING THE ASSENT OF THAT OTHER TO SUCH ACT OR ABSTINENCE, HE IS SAID TO MAKE A PROPOSAL;  WHEN THE OTHER PERSON TO WHOM PROPOSAL IS MADE SIGNIFIES HIS ASSENT THERETO, THE PROPOSAL IS SAID TO BE ACCEPTED. A PROPOSAL, WHEN ACCEPTED, BECOMES A PROMISE.

EVERY PROMISE AND EVERY SET OF PROMISES FORMING THE CONSIDERATION FOR EACH OTHER, IS AN AGREEMENT. AN AGREEMENT ENFORCABLE BY LAW IS A CONTRACT.

ESSENTIAL O F A VALID CONTRACT

i. ii. THERE MUST BE FREE CONSENT OF PARTIES; THE PARTIES CONTRACT; MUST BE COMPETENT TO

iii. THE CONSIDERATION MUST BE LAWFUL; iv. THE OBJECT MUST BE LAWFUL; v. THE AGREEMENT MUST NOT BE EXPRESSLY DECLARED TO BE VOID; AND

vi. THE AGREEMENT MUST COMPLY WITH THE PROVISION OF ANY LAW REQUIRING IT TO BE IN WRITING OR ATTESTED OR REGISTERED.

CONTRACT WITH GOVERNMENT

ALL CONTRACTS MADE BY OR ON BEHALF OF THE GOVERNMENT MUST BE MADE ACCORDING TO THE PROVISIONS OF THE STATUTE APPLICABLE TO THEM. IN INDIA SUCH CONTRACTS ARE GOVERNED BY ART 299 OF THE CONSTITUTION, ACCORDING TO WHICH ALL CONTRACTS MADE IN EXERCISE OF EXECUTIVE POWERS OF THE UNION OR A STATE SHALL BE EXPRESSED TO BE MADE BY THE PRESIDENT, OR BY THE GOVERNOR OF THE STATE, AS THE CASE MAY BE, AND ALL SUCH CONTRACTS SHALL BE EXECUTED ON BEHALF OF THE PRESIDENT OR THE GOVERNOR BY SUCH PERSONS AND IN THE MANNER AS MAY BE DIRECT OR AUTHORISE.

IMPORTAN T SECTIONS OF CONTRACT ACT

SECTION 2 INTERPRETATION OF CLAUSE :AN AGREEMENT ENFORCEABLE BY LAW IS A CONTRACT.

SECTION- 4. WHEN COMMUNICATION OF PROPOSAL IS COMPLETE: THE COMMUNICATION OF A PROPOSAL IS COMPLETE WHEN IT COMES TO THE KNOWLEDGE OF THE PERSON TO WHOM IT IS MADE.

WHEN COMMUNICATION ACCEPTANCE IS COMPLETE :

OF

AN

AS AGAINST THE PROPOSER, WHEN IT IS PUT IN A COURSE OF TRANSMISSION TO HIM SO AS TO BE OUT OF THE POWER OF ACCEPTER  AS AGAINST ACCEPTER, WHEN IT COMES TO THE KNOWLEDGE OF THE PROPOSER.

SECTION 5. REVOCATION OF PROPOSALS AND ACCEPTANCE :

A PROPOSAL MAY BE REVOKED AT ANY TIME BEFORE THE COMMUNICATION OF ITS ACCEPTANCE IS COMPLETE AS AGAINST THE PROPOSER BUT NOT AFTERWARDS. AN ACCEPTANCE MAY BE REVOKED AT ANY TIME BEFORE THE COMMUNICATION OF THE ACCEPTANCE IS COMPLETE AS AGAINST THE ACCEPTOR, BUT NOT AFTERWARDS.

SECTION 7.
ACCEPTANCE MUST BE ABSOLUTE:IN ORDER TO CONVERT A PROPOSAL INTO A PROMISE ,THE ACCEPTANCE MUST BE : 1) ABSOLUTE AND UNQUALIFIED; 2) EXPRESSED IN SOME USUAL AND REASONABLE MANNER, UNLESS THE PROPOSAL PRESCRIBES THE MANNER IN WHICH IT IS TO BE ACCEPTED.

 SECTION 10.

WHAT AGREEMENTS ARE

CONTRACTS

ALL AGREEMENTS ARE CONTRACTS IF THEY ARE MADE BY THE FREE CONSENT OF THE PARTIES COMPETENT TO CONTRACT, FOR A LAWFUL CONSIDERATION AND WITH A LAWFUL OBJECT SECTION 23.

WHAT CONSIDERATION AND LAWFUL AND WHAT NOT:THE CONSIDERATION OR OBJECT AGREEMENT IS LAWFUL UNLESS  IT IS FORBIDDEN BY LAW; OR

OBJECTES
OF AN

INVOLVES OR IMPLIES, INJURY TO PERSON OR PROPERTYOF ANOTHER; OR

THE

THE COURT REGARDS IT AS IMMORAL, OR OPPOSED TO PUBLIC POLICY. IN EACH OF THESE CASES, THE CONSIDERATION OR OBJECT OF AN AGREEMENT IS SAID TO BE UNLAWFUL. EVERY AGREEMENT OF WHICH THE OBJECT OR CONSIDERATION IS UNLAWFUL IS VOID.

 SECTION56. AGREEMENT TO DO IMPOSSIBLE ACT:AN AGREEMENT TO DO AN ACT IMPOSSIBLE IN ITSELF IS VOID. CONTRACT TO DO ACT AFTERWARDS BECOMING IMPOSSIBLE OR UNLAWFUL:A CONTRACT TO DO AN ACT WHICH AFTER THE CONTRACT IS MADE BECOMES IMPOSSIBLE OR UNLAWFUL BECOMES VOID

VARIOUS TYPES OF CONTRACT

TYPES OF CONTRACT
BUILDING CONTRACTS CAN BROADLY BE DIVIDED INTO TWO TYPES AS FOLLOWS:LUMPSUM CONTRACTS (WILL GENERALLY USED FOR ALL ORIGINAL WORKS AND MAINTENCE SERVICES WHICH ARE EXCLUDED FROM TERM CONTRACT) MEASUREMENT CONTRACT WILL GENERALLY USED FOR SMALL NO OF ITEMS WITH LARGE QUANTITIES OF ITEM

LUMP SUM CONTRACTS

THE AGREEMENT BINDS THE CONTRACTOR TO CARRY 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.

LUMP SUM CONTRACTS (Contd)

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

BASED ON BILLS OF QUANTITIES(BQ)

BASED ON PRE-PRICING BY MES

BASED ON SPECIFICATIONS

DRAWINGS

AND

CONTRACTS BASED ON BILLS OF QUANTITIES(BQ)

THE TENDERER IS SUPPLIED WITH COMPLETE SET OF DRAWINGS, SPECIFICATIONS AND QUANTITIES OF WORK GIVEN IN THE BILLS OF QUANTITIES (BQ), CALCULATED BY THE MES. INTERIM PAYMENTS ARE MADE BY ASSESSMENT (BASED ON YARD STICK) AND NOT INVOLVING MEASUREMENTS AT SITE.

CONTRACTS BASED ON BILLS OF QUANTITIES(BQ) CONTD. PREPARATION OF TENDER DOCUMENTS 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.

CONTRACTS BASED ON PRE-PRICING BY MES

THE COST OF EACH BUILDING STRUCTURE ETC, AT PAR WITH THE SSR, IS ESTIMATED IN ADVANCE BY THE MES AND INSERTED IN THE SCHEDULE A (LIST OF WORK AND PRICES).

QUANTITIES OF ITEMS OF WORK ARE NOT SUPPLIED TO THE TENDERER AND THE ACCURACY OF THE PREPRICING DONE BY MES IS ALSO NOT GUARANTEED. A COMPLETE SET OF DRAWINGS AND SPECIFICATIONS IS SUPPLIED TO THE TENDERER.

CONTRACTS BASED ON PRE-PRICING BY MES(CONTD).

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 LUMPSUM THAT HE WILL CHARGE FOR THE WORK. PURPOSE SERVED BY THE PREPRICING 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 LUMPSUM CONTRACTS CONCLUDED IN MES FOR ANY KIND OF BUILDINGS OR STRUCTURE ARE OF THIS TYPE.

TENDERER IS NEITHER SUPPLIED WITH DETAILED QUANTITIES NOR WITH COST OF WORK IS PREPRICED BY MES AT PAR WITH SSR. TENDERER IS REQUIRED TO WORK OUT THE QUANTITIES, APPLY HIS OWN RATES AND QUOTE LUMPSUM AGAINST EACH BUILDINGS/ STRUCTURE ETC. LISTED IN SCHEDULE A. TENDERER IS SUPPLIED WITH A COMPLETE SET OF DRAWINGS AND SPECIFICATIONS.

CONTRACTS BASED ON DRGS & SPECIFICATIONS

CONTRACTS BASED ON DRGS & SPECIFICATIONS(CONTD.) 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 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

TYPES OF MEASUREMENT CONTRACTS

ITEM RATE CONTRACTS TERM CONTRACT FOR ARTIFICERS WORK (TC) RATE CONTRACT FOR SUPPLY OF STORES AND MATERIALS CONTRACT FOR HANDLING CONVEYANCE OF STORES. AND

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 AND DRAWINGS ARE ALSO SUPPLIED TO THE TENDERER.

ITEM RATE CONTRACTS IMPORTANT

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.

PREPARATION AND ISSUE OF TENDERS

STAGES TILL ISSUE OF TENDER ENQUIRY TO CONTRACTORS RECEIPT OF PRELIMINARY INFORMATION PROFORMA (PIP) , ADDITIONAL GROUND DATA / SITE FACTORS SCRUTINY OF PIP, ADDITIONAL GROUND DATA / SITE FACTORS & DRAWINGS INVITATION TO TENDER PREPARATION OF TENDER DOCUMENTS SELECTION OF CONTRACTORS FOR ISSUE OF TENDER DOCUMENTS

INVITATION TO TENDER & PRESS ADVERTISEMENT

NOTICE OF TENDER MUST BE ISSUED IMMEDIATELY ON RECEIPT OF PIP FROM E-2 SECTION IN EACH CASE IRRESPECTIVE OF THE VALUE OF WORK AT ALL IMPORTANT PUBLIC PLACES VIZ,.BANKS, POST OFFICE BLDGS ETC. IMPORTANT WORKS, COSTING MORE THAN RS. 5.00 LAKHS BUT LESS THAN RS 20 LAKHS MUST BE ADVERTISED IN LOCAL NEWS PAPERS

INVITATION TO TENDER & PRESS ADVERTISEMENT

WORKS COSTING MORE THAN RS. 20 LAKHS SHOULD BE ADVERTISED IN NATIONAL/LOCAL NEWSPAPERS AS ALSO IN INDIAN TRADE JOURNAL THOUGH DIRECTOR OF AUDIO AND VISUAL PUBLICATION (DAVP).

IT TAKES APROXIMATELY 35-40 DAYS TO GET ANY WORK ADVERTISED IN NEWS PAPERS

VARIOUS PARTS OF TENDER DOCUMENTS

FORWARDING LETTER TO THE TENDER DOCUMENTS AN INDEX OR A CONTENTS PAGE NOTICE OF TENDER IAFW 2162 CONTRACT FORM:
AUTHORISATION PAGE SCHEDULE A (LIST OF WORKS AND PRICES) SCHEDULE B (LIST OF STORES TO BE ISSUED TO CONTRACTOR )

VARIOUS PARTS OF TENDER DOCOMENTS(CONTD)

SCHEDULE C (LIST OF T AND P TO BE HIRED TO THE CONTRACTOR) SCHEDULE D (LIST OF TRANS TO BE HIRED TO THE CONTRACTOR) TENDER PAGE GENERAL SUMMARY (APPLICABLE ONLY FOR LUMP SUM CONTRACT) ACCEPTANCE PAGE.

VARIOUS PARTS OF TENDER DOCOMENTS(CONTD)

SPECIAL CONDITIONS OF CONTRACT GENERAL CONDITIONS OF CONTRACT SCHEDULE OF MINIMUM FAIR WAGES PARTICULAR SPECIFICATIONS SSR LIST OF DRAWINGS ONE COMPLETE SET OF DRAWINGS

SPECIAL CONDITIONS
VALIDITY PERIOD OF TENDER
TIME AND PROGRESS CHART SUPPLY OF ELECTRICITY/ WATER FACILITIES TO CONTRACTORS- ALLOTMENT OF LAND FOR STORAGE OF MATERIALS, ACCN FOR LABOUR, CANTEEN,LAND FOR FABRICATION WKSHOP ETC

SPECIAL CONDITIONS (Contd)

CONDITIONS OF WORKING (RESTRICTED/UNRESTRICTED).IN CASE RESTRICTED, NORMAL WORKING TIME ALLOWED IN A DAY& EXTENT OF CHECKS ACCEPTABLE QUALITY OF WORKS & FINISHES ANTECEDENTS OF CONTRACTORS AND THEIR AGENTS MODE OF VALUATION OF DOs FOR Lump Sum CONTRACTS BASED ON DRG & SPC

SELECTION OF CONTRACTORS FOR ISSUE OF TENDER DOCUMENTS

TENDER TO BE ISSUED TO CONTRACTORS IN APPROPRIATE CLASS & ABOVE. ISSUE OF TENDER TO CONTRACTORS ONE CLASS BELOW APPROPRIATE CLASS. ISSUE OF TENDER TO CONTRACTORS TWO CLASS BELOW APPROPRIATE CLASS. ISSUE OF TENDER CONTRACTORS. TO UNELISTED

SELECTION OF CONTRACTORS FOR ISSUE OF TENDER DOCUMENTS

POINTS TO BE SEEN DURING SELECTIONS:
CONTRACTOR IS NOTALREADY OVERLOADED. PERFORMANCE OF THE CONTRACTOR HAD NOT BEEN UNSATISFACTORY IN THE PAST. SERIOUS IRREGULARITIES WERE NOT COMMITTED BY THE CONTRACTOR IN THE PAST. CONTRACTORS FINANCIAL POSITION IF FOUND TO BE UNSATISFACTORY. CONTRACTOR IS NOT REMOVED/SUSPENDED/BLACK LISTED/DECLARED INSOLVENT/CONVICTED ETC.

TIME INVOLVED IN PREPARATION, ISSUE AND ACCEPTANCE OF TENDER DOCUMENTS

E-IN-C HAS LAID DOWN A TIME SCHEDULE FOR VARIOUS STAGES OF PREPARATION AND ACCEPTANCE OF TENDERS FOR NORMAL WORKS:

ISSUE OF TENDER NOTICE : 1 WEEK FROM RECEIPT OF PIP OF LETTER WHERE APPLICABLE FOR PRESS ADVERTISEMENT ALSO. PREPARATION OF TENDER DOCUMENTS : 3
WEEKS FOR CONTRACTS UP TO RS. 25 LAKHS AND 4-6 WEEKS FOR LARGER CONTRACTS.

TIME INVOLVED IN SUBMISSION OF TENDER DOCUMENTS LUMP SUM TENDER BASED ON PREPRICING BY MES : 5 WEEKS plus transit period LUMP SUM TENDER BASED ON DRAWINGS AND SPECIFICATIONS:6 WEEKS plus transit period ITEM RATE CONTRACT: 3 WEEKS plus transit period

SCRUTINIZING AND ACCEPTANCE OF TENDERS:

RS. 20

1 WEEK FOR CONTRACTS UP TO LAKHS AND 2 WEEKS FOR LARGER CONTRACTS

VARIOUS CLASSES OF CONTRACTERS IN MES

CLASS UPPER TENDERING LIMIT IN LAKH AMOUNT OF STANDING SECURITY DEPOSIT LIMIT OF MINIMUM AUTHORITY RESERVES/ TOTAL COMPETENT OF MOVABLE AND / TO ENLIST OR IMMOVABLE PROPERTY OR FIXED ASSETS (IN CASE OF COMPANIES)

SS S A B C D E F

No Limit 750 150 80 40 20 10 5

5,00,000 3,00,000 1,50,000 1,20,000 60,000 30,000 20,000 10,000

50.00 35.00 20.00 15.00 10.00 5.00 3.00 1.50

E-in-C CE commd CE Zone/Proj -do-do-doCWE CWE

ADMINSTRATION OF CONTRACTS

ADMINSTRATION OF CONTRACTS
CONTRACT ADMINSTRATION MEANS FULFILLMENT OF CONTRACTUAL OBLIGATIONS AND GENERALLY INVOLVES FOLLOWING ACTIONS :-

ADMINSTRATION OF CONTRACTS

1. 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 PRE-LIMINARY ARRG TO COMMENCE THE WORK; TO FINALISE CPM;

 FINALISATION OF YARD STICK FOR LUMP SUM CONTRACTS; TO WORK OUT REQUIREMENT OF SCHB STORES TO FINALISE FIRM EXACT QUANTITIES FOR ADD BACK DOs OBTAINING SAMPLES OF MATERAIL FROM CONTRACTOR.

2. DURING EXECUTION OF WORK

THOROUGH STUDY OF CONTRACT PROVISIONS AND SPECIFICATIONS; APPROVAL OF SAMPLES OF MATERIAL AND FITTINGS & FIXTURES; PLACING ADD BACK DOs; ACCEPTANCE, TESTING OF MATERAILS AND VERIFICATION OF PV & TCs;

MAINTENANCE OF WORK SITE DOCUMENTS; EXERCISING CHECKS AND QUALITY CONTROL; RECORDING MEASUREMENTS IN R/O MEASURABLE SCHEDULES/SERVICES AS THE WORK PROCEEDS; TO KEEP CLOSE WATCH ON PROGRESS OF WORK; ISSUE NECESSARY NOTICES TO CONTRACTOR AS AND WHEN REQUIRED;

RAR PAYMENTS
CONTRACTORS CLAIMS FOR RAR PAYMENTS TO BE DEALT WITH EXPEDICIOUSLY AND TO ENSURE TIMELY AND REASONABLE PAYMENTS; CONTRACTOR TO BE SUPPLIED WITH STATEMENT OF DEBITS TO ENABLE HIM TO PREFER HIS RAR CLAIMS; RECOVERIES ON ACCOUNT OF WATER, ELECTRICITY, T&P, TESTING CHARGES, MINUS DOs ETC TO BE EFFECTED REGULARLY;

FINANCIAL REVIEW OF PROJECT DEVIATION ORDERS AMENDMENTS TO CONTRACT ORDERING ADDITIONAL WORK BEYOND DO LIMIT VALUATION OF DEVIATIONS PROMPT DECISION MAKING TIMELY AND CORRECT REPLY TO CONTRACTOR ON ALL POINTS RAISED DURING CURRENCY OF CONTRACT

DETAIL INSPECTION OF WORK ONE WEEK BEFORE COMPLETION OF WORK COMPLETION OF WORK TIMELY INITIATION OF Performance Reports. SITE CLEARANCE CHECKING OF WORK BY TE/STE

DEVIATION ORDERS

DEVIATION LIMIT
1) LUMP SUM CONTRACTS BASED ON DRGS & 10% 10% SPECIFICATION :-

2)OTHER CONTRACTS:a)EXCEEDING 10 LAKHS:b)UPTO 10 LAKHS:10% 20%

APPROVAL OF CEA:GEs/CsWE contracts EXCESS UPTO 10% BY ZONAL CE EXCESS >10% < 20% BY COMMAND CE EXCESS > 20% BY ENGINEER- IN- CHIEF CE CONTRACTS:o UPTO 10 % BY COMMAND CE o EXCEEDING 10 % BY ENGINEER-INCHIEF NOTE:- CE ZONE / COMMAND SHALL APPROVE IN CONSULTATION WITH CDA AND ENGINEER-INCHIEF IN CONSULTATION WITH MOF(DEF)

AMENDMENT TO CONTRACT
AN OFFICER COMPETENT TO ACCEPT A CONTRACT IS ALSO COMPETENT TO AMEND IT, PROVIDED THE CONTRACT AS AMENDED IS WITHIN HIS POWERS OF ACCEPTANCE EXCEPT THAT THE SANCTION OF NEXT HIGHER AUTHORITY MUST BE OBTAINED :IF AMENDMENT INVOLVES ENHANCEMENT OF CONTRACT RATES. TO ANY AMENDMENT AFTER CONTRACTOR HAS THE FINAL BILL

AMENDMENT TO CONTRACT
IF AN AMENDMENT SHOULD BRING THE VALUE OF CONTRACT ABOVE THE POWERS OF OFFICER WHO ACCEPTED THE CONTRACT, THE AMENDMENT SHALL BE MADE ONLY AFTER OBTAINING SANCTION OF NEXT HIGHER AUTHORITY.

PAYMENT OF FINAL BILLS : PAYMENT OF THOSE ITEMS OF FINAL BILL WHERE THERE IS NO DISPUTES SHALL BE PAID AS PER PERIOD SPECIFIED BELOW :CA AMOUNT < 5.00 LAKHS---- WITHIN 4 MONTHS CA AMOUNT > 5.0 LAKHS -----WITHIN 6 MONTHS  ALL PAYMENTS TO CONTRACTOR BY CROSSED CHEQUES A/C PAYEE ONLY.  ACK OF RECIPT BY CONTRACTOR.

TECH EXAMINATION OF PAID FINAL BILLS BY ADGTE BRANCH :ALL PAID FINAL BILLS ARE SUBJECT TO TECHNICAL EXAMINATION BY ADGTE S ORGANISATION .

ADJUSTMENT OF OVER / UNDER PAYMENT UNDER CONDITION 67 OF IAFW 2249 :OVER PAYMENT TO CONTRACTOR CAN BE ADJUSTED WITHIN TWO YEARS FROM PAYMENT OF FINAL BILL. RECOVERY OF OUTSTANDING AMOUNT CAN BE EFFECTED FROM THE FOLLOWING : AMOUNT AVAILABLE IN SAME CONTRACT AMOUNT AVAILABLE IN OTHER CONTRACTS. AMOUNT LIKELY TO BECOME DUE IN SAME CONTRACT. SECURITY DEPOSIT FOR THE CONTRACT. SECURITY BOND WITH GOVT. AMOUNT DUE TO CONTRACTOR IN OTHER DEPTT.

WHEN CONTRACTOR DISPUTES RECOVERY , HE MAY FURNISH FDR / BGB OF EQUAL AMOUNT , TILL SETTLEMENT OF DISPUTES.

DISPUTED FINAL BILLS :A DISPUTED BILL WHERE CONTRACTOR REFUSE TO SIGN FINAL BILL SHOULD BE PROCESSED IN NORMAL WAY AND AFTER PRE-AUDIT TO BE KEPT IN DEPOSIT.

GENRAL POINTS OF DISPUTES WITH CONTRACTORS

NON HANDING OVER OF SITE(S) OR HANDING OVER PART SITE TO CONTRACTOR FOR ANY REASONS VIZ: NON CUTTING OF TREES,  NON VACATION OF BUILDINGS BY USERS WHICH ARE TO BE DEMOLISHED OR WHERE SPECIAL REPAIRS ARE TO BE CARRIED OUT

 FREQUENT CHANGES IN SITE(S) THEFT/DAMAGE OF CONTRACTORS MATERIALS BY USER UNITS(APPLICABLE WHERE WORK IS TO BE CARRIED OUT IN RESTRICTED AREAS) RADICAL CHANGES IN SCOPE OF WORK/SPECIFICATIONS DURING CURRENCY OF CONTRACT IMPOSING RESTRICTIONS ON CONTRACTOR BY USER UNITS BEYOND CONTRACT PROVISIONS

 DELAY IN DECISIONS DELAY IN ISSUE OF STORES (TO BE SUPPLIED BY DEPARTMENT) TO CONTRACTORS USE/OCCUPATION OF BUILDINGS BEFORE COMPLETION OF CONTRACT STOPPAGE OF CONTRACTORS WORK DUE TO INSPECTIONS/VISITS/FUNCTIONS NON-SETTELEMENT OF RATES FOR WORK ORDERED UPON CONTRACTOR BEYOND CONTRACT PROVISIONS

TIME DELAY AND EXTENSION

TIME, DELAY AND EXTENSION

INTRODUCTION  IN ALL OUR CONTRACTS TIME IS MADE OF ESSENCE OF CONTRACT. IT MEANS TIME IS THE MAIN FACTOR OF PERFORMANCE.  IN ALL CONTRACTS PERIOD OF COMPLETION IS SPECIFIED. IF CONTRACTOR FAILS TO COMPLETE THE WORK BY THE STIPULATED DATE, THEN ACCEPTING OFFICER HAS GOT THE POWERS TO CANCEL THE CONTRACT AND GET THE WORK COMPLETED BY OTHER AGENCY AT RISK AND COST.

 ON EXPIRY OF COMPLETION PERIOD, IF WORK IS NOT COMPLETED, GOVT HAS TWO OPTIONS :EITHER TO ACCEPT THE PERFORMANCE WITH PENALTY OR LIQUIDATED DA OR TO CANCEL THE CONTRACT DUE TO DEFAULT OF CONTRACTOR AND GET THE WORK COMPLETED AT RISK AND CONTRACT.  HOWEVER IF THE REASONS FOR DELAY ARE NOT ATTRIBUTABLE TO CONTRACTOR, THEN SUITABLE EXTENSION FOR COMPLETION OF WORK IS ALLOWED.

IF THE REASONS FOR DELAY ARE COVERED UNDER CONDITION 11-A AND OR 11-B. THE POWERS FOR GRANTING EXTENSION OF TIME ARE VESTED WITH THE ACCEPTING OFFICER.

CONDITION 11 OF IAFW 2249 (TIME, DELAY AND EXTENSION) CONDITION 11(A): IF THE WORK BE DELAYED : BY FORCE MAJEURE, OR  BY REASON OF ABNORMALLY BAD WEATHER, OR  BY REASON OF SERIOUS LOSS OR DAMAGE BY FIRE, OR  BY REASON OF CIVIL COMMOTION, LOCAL COMBINATION OF WORKMEN, STRIKE OR LOCKOUT, AFFECTING ANY OF THE TRADES EMPLOYED ON THE WORK, OR

CONDITION 11 OF IAFW 2249 (TIME, DELAY AND EXTENSION) CONDITION 11(A):  BY REASONS OF DELAY ON THE PART OF NOMINATED SUB CONTRACTORS, OR NOMINATED SUPPLIERS WHICH THE CONTRACTOR HAS, IN THE OPINION OF G.E., TAKEN ALL PRACTICABLE STEPS TO AVOID OR REDUCE, OR  BY REASON OF DELAY ON THE PART OF CONTRACTORS OR TRADESMEN ENGAGED BY GOVT IN EXECUTING WORKS NOT FORMING PART OF THE CONTRACT, OR  BY REASON OF ANY OTHER CAUSE, WHICH IN THE ABSOLUTE DISCRETION OF THE ACCEPTING OFFICER IS BEYOND THE CONTRACTORS CONTROL;

CONDITION 11(B): IF THE WORK BE DELAYED :a) BY REASON OF NONAVAILABILITY OF GOVERNMENT STORES SHOWN IN SCHEDULE B; OR b) BY REASON OF NON-AVAILABILTY OR BREAKDOWN OF GOVT. TOOLS AND PLANTS LISTED IN SCHEDULE C;

SUSPENSION OF WORKS AND CANCELLATION OF CONTRACTS

SUSPENSION OF WORKS

CONDITION 9 OF IAFW-2249 DEALS WITH SUCH EVENTUALITY

SUSPENSION CAN BE DUE TO ANY OF THE FOLLOWING REASONS:(a) ON ACCOUNT OF ANY DEFAULT ON THE PART OF THE CONTRACTOR; OR (B) FOR PROPER EXECUTION OF THE WORKS OR PART THEREOF FOR REASONS OTHER THAN THE DEFAULT OF THE CONTRACTOR; OR (C) FOR SAFETY OF THE WORKS OR PART THEREOF.

SUSPENSION OF WORKS (Contd)

IF THE WORK IS SUSPENDED ON THE ORDERS OF GE FOR MORE THAN 4 MONTHS, THE CONTRACTOR CAN ABANDON THE WORK AFTER GIVING NOTICE TO THE GE . IN SUCH EVENTUALITY HE SHALL BE ENTITLED TO COMPENSATION AS GE MAY CONSIDER REASONABLE IN RESPECT OF SALARIES/WAGES PAID BY HIM TO HIS EMPLOYEES AND LABOR AT SITE ACTUALLY REMAINING IDLE AS ALSO FOR LOSS ON MATERIALS COLLECTED WHICH COULD NOT BE UTILISED INCLUDING 5% AS OVERHEADS ON MATERIALS, SALARIES AND WAGES.

CANCELLATION OF CONTRACT
CANCELLATION OF CONTRACT IN PART OR IN FULL FOR ONTRACTOR'S DEFAULT(CONDITION 54 OF IAFW -2249)
AS PER CONDITION-54 OF IAFW-2249 ,IF THE CONTRACTOR:MAKES DEFAULT IN COMMENCING THE WORK WITHIN A REASONABLE TIME FROM THE DATE OF HANDING OVER SITE, AND CONTINUES IN THAT STATE AFTER A NOTICE FROM THE GE OR

MAKES DEFAULT IN PROCEEDING WITH THE WORKS WITH DUE DILIGENCE AND CONTINUES IN THAT STATE AFTER A REASONABLE NOTICE FROM GE. (OR) FAILS TO COMPLY WITH TERMS & CONDITIONS OF THE CONTRACT EVEN AFTER REASONABLE NOTICE FROM GE. (OR) FAILS TO COMPETE THE WORK ON OR BEFORE THE DATE OF COMPLETION

Condition-54(Contd)
 ACCEPTING OFFICER MAY ORDER CANCELLATION OF CONTRACT IN PART OR IN FULL  IN CASE COST OF COMPLETION OF BALANCE WORK IS LESS THAN THE COST DUE TO CONTRACTOR IN CANCELLED CONTRACT, THE ADVANTAGE SHALL ACCRUE TO THE GOVT.  HOWEVER, IN CASE COST IS MORE, DEFAULTING CONTRACTOR IS REQUIRED TO PAY EXCESS AMOUNT OR SHALL BE RECOVERED FROM THE CONTRACTOR FROM OTHER DUES TO HIM.  GOVT. SHALL ALSO BE AT LIBERTY TO USE MATERIALS, MACHINERY AND OTHER STORES ON SITE LEFT OVER BY CONTRACTOR & NECESSARY CREDIT TO BE ALLOWED IN CONTRACTOR'S FINAL ADJUSTMENTS

DEFECTS LIABILITY PERIOD

INTRODUCTION

 IN ACCORDANCE WITH CONDITION 49 OF IAFW-2249, THE DEFECTS LIABILITY OF THE CONTRACTOR FOR SATISFACTORY PERFORMANCE DOES NOT END WITH ISSUE OF COMPLETION CERTIFICATE BUT CONTINUES FOR FURTHER PERIOD OF 12 MONTHS FROM DATE OF COMPLETION OF WORK. THIS PERIOD IS KNOWN AS DEFECTS LIABILITY PERIOD.

DEFECTS LIABILITY PERIOD (Contd)  ALL DEFECTS NOTICED / DEVELOPED DURING A PERIOD OF 12 MONTHS FROM THE DATE OF COMPLETION SHALL ALSO BE NOTIFIED TO CONTRACTOR FOR ATTENDING TO.  LAST INSPECTION OF WORK BEFORE EXPIRY OF DEFECTS LIABILITY PERIOD SHOUD BE ENSURED  FAILURE TO ATTEND TO DEFECTS NOTIFIED LEAD TO RECTIFICATION OF DEFECTS AT RISK & COST OF CONTRACTER