Two Packet system of Tendering - Works

TWO PACKET SYSTEM OF TENDERING

• (clause 7 A of GCC - General Conditions of Contract )

  

• Main Object: To assess the tenders technically without being influenced by the financial bids  

 

• Shall be adopted wherein tender documents provide for the same.  

•  In the case of the Two Packet system - The Tenderers shall keep the offer open for a minimum period of 90 days from the date of closing of the Tender. (Single Packet, it was 60 days only) 

How: 

• Tenderers submit their offers/quotations in two sealed envelopes.  

1) First cover - Technical and Commercial offer  - for scrutinizing the capability, possession of appropriate plant & machinery, financial strength, and experience, etc, 

2) Second Cover - Financial offer

• Both individually sealed packets i.e., technical and financial should be sealed in one envelope.

• If the offers of the first packet are found acceptable by the Competent Authority, the second packet shall be opened and the tenders shall be processed for finalization in the normal manner. 

 

• If the first packet is not acceptable for the Tender Committee, the second packet (financial bid) of such tenderer will be returned to the party without open.

 

• However if the Tender committee feels clarifications regarding designs, specifications, etc required based on the first packet, discussions shall be held with each tenderer separately,   after obtaining approval of the competent authority. 

 

When  - Two packet system is adopted 

1. Techno-economic- evaluation: For all works contract tenders requiring Techno-economic evaluation

2. Above Rs. 10 Crores - Mandatory - If the works contracts tender is valued over and above Rs. 10 Crores.  Exceptions are 

1. In cases, where reasons for not following two packet system should be recorded with approval of not below of SAG level Officer and the concurrence of associate finance.

2. For Tenders valued beyond the tender acceptance powers of SAG/DRM/ADRM/CWM, a decision of the Executive not below HAG in consultation with FA&CAO shall be required. 

 

3. Below Rs. 10 Crores - Optional - Decided by the Tender Inviting authority with the concurrence of associated finance but keeping in mind item No.1 supra.

• Not applicable -  to the projects covered by the World Bank loan (for which a separate procedure is prescribed)

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GCC for Works 2022 April - Over view

 

GCC for Works, 2022 April  - An overview

·        GCC stands for General Conditions of Contracts for Works  

 

·        Latest edition:  2022 April Click for download 

 

·        115 pages

 

·        ACS - Advance Correction Slips   - So far issued Two 

 

·        Consists of Part I and Part II  

 

Part I - ITT -  Instructions To Tenderers: 

 

·        Total Clauses - 9 

 

·        Total Annexures - 8  

 

·        Total Pages - 40

 

·        Important ones are as follows: 

 

·        Clause 1.01 - Order of Precedence of Documents  

·        Clause 2  - Approved List of Contractors 

·        Clause 5 - Bid Security (old name is EMD) 

·        Clause 10 -Financial Eligibility Criteria, Technical Eligibility Criteria & Bid Capacity 

·        Clause 11 - Tenderer credentials

·        Clause 17 - Joint Ventures ( JV) in Works Tenders

Part II 

 

·        Consists of Standard General Conditions of Contract  

 

·        Total Paras 64  

 

·        Total Pages - 75

 

·        Important clauses are as follows:  

 

·        Para 1  - Definitions  

·        Paras 4 & 5 - Communications and Serving Notices

·        Para 7 - Assignment / Subletting of Contract 

·        Para 16 - SD - Security Deposit and PG - Performance Guarantee 

·        Para 17 A - Extension of Time - Not due by Contractor or Railways - Force Majeure Clause and Extension of Time due to Railways / or Due to Modification

·        Para 17 B - Extension of Time with LD - Liquidated Damages - due to Contractor. 

·        Para 17C - Bonus for Early Completion of Work

·        Para 42 - Variations in Contracts 

·        Para 45 - Measurements of Works by Railways as well as by Contractors 

·        Para 46 - On Account Payments 

·        Para 46 (4)  - Advances to Contractors 

·        Para 46 A - PVC - Price Variation Clause 

·        Para 51 - Final Payments

·        Para 61 & 62 - Determination of Contract 

·        Para 63 - Conciliation of Disputes 

·        Para 64 - Arbitration 

 

—end–

Checklist - Before calling Works Tenders

 

Checklist - Before calling Works Tenders  

Tenders are not to be called without satisfying the following checklist 

• Drawings - Approval of Detailed Drawings   

 

• Estimates - Sanction of Detailed Estimates  

• Tender Schedule - Prepared  

 

• Funds - Availability  

 

•  Project / Work Site - Availability (without any encumbrance) 

 

• Materials - Availability 

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