Railway Accounts Department Examinations

Showing posts with label Works Contracts. Show all posts
Showing posts with label Works Contracts. Show all posts

Sunday, September 15, 2024

Works Tenders - Types of

 

Tenders in Works  – Types


  1. Open Tenders or Advertised tenders.

  2. Limited

  3. Special Limited tenders.

  4. Single Tender.


  1. Open/Advertised tenders:




ü  Open tendering system is the widely used one as it ensures fair competition by which reasonable rates can be obtained.  The system of invitation to tender by public advertisement in the most open and transparent  manner possible should be used as a general rule and must be adopted.  Powers to invite Open tenders Vide item No.6 of part-A of MSOP.


ü    Powers have been delegated to officers at different levels to call open tenders. 


ü  Generally before calling tenders, vetted sanctioned estimate for the work proposed to be tendered for, should be available and also other requirements such as funds availability, approved drawings, site availability, materials to be issued by Deptt etc., .   In the absence of sanction of detailed estimate, pre-vetting of tender schedule is to be taken.


  1. Limited tenders: 


ü  Where for reasons which should be in the public interest, it is considered not practical or advantageous to call for open tenders, Limited tenders may be invited with the concurrence of FA&CAO and approval of competent authority


ü   Limited tenders are to be invited from contractors borne on approved list. 


ü  In S.C.Rly, PHOD/CHOD is having powers to call Limited tenders up to Rs.5 crores in each case, HOD/DRM/ADRM/CSM is having powers up to Rs.1 crore. JAG officers have powers to call LT up to Rs.25 lakhs.  At least 10 names should be on the approved list of contractors.

  1. Special Limited tenders:


     

ü  This type of tendering system is adopted for works of specialized nature, works of urgent nature and consultancy works.  Finance concurrence is necessary. 


ü Special LT will be invited from the specialized and reputed contractors/organizations/agencies.


ü   Tenders from whom Special LT are to be invited should preferably be more than six but not less than four. 


ü  Tenderers need not be borne on the approved list.


  1. Single tender: 


ü  Single tender is invited in case of emergencies, accidents, breaches involving dislocation to traffic. 


ü  The powers to be exercised in times of cyclone, floods, accidents, sabotage, enemy action, explosions, cases of extreme urgency such as works or supplies necessary to safeguard life or property or repair damage to track caused by flood breaches,  washaways, accidents or other unforeseen contingency so as to maintain through communication.


ü   For restoration of traffic within shortest possible time, single tender is invited from the experienced and reputed contractor who has the previous experience of having executed such emergency works. 


ü   CAO/Con is having full powers to call single tender in case of works of specialized nature only.


ü   Finance concurrence is necessary. Estimate provision should be available to meet the expenditure incurred through quotation route. 


ü  To dispense with calling of tenders for works which are urgent in nature and to accept offers received in response to quotations. Finance concurrence is necessary. Powers have been delegated in Item No.5 – F of part – A of MSOP- works matters. 


ü  The powers shall be exercised by the officers with their administrative approval.  The powers should be exercised sparingly. The circumstances under which quotations have to be called should be spelt out. Quotations should not be for items which can be executed through the existing contracts including zonal contracts. Quotations should not be for fancy items. After finalization of the quotations, work order will be placed on the selected bidder. 

&&&&&&


Thursday, December 7, 2023

Works Contracts - Types

 

 

 

Works Contracts - Types 

 

Lump Sum Contracts: 



  • A contract under which the contractor engages to carry out a work or effect supply as specified and within a given period for a fixed total sum;



  • His receipt of this sum being dependent on his completing the work or supply to specification and time, irrespective of the actual quantities and kind of work done or materials supplied in achieving his result. 

  

  • In case of departure from the work or supply as specified  - Reduction from the consideration may be made at the discretion of the Competent authority for failure on the part of the Contractor. 

 

In simple: 



  • Fixed Total sum - To be paid to the Contractor. 
  • Complete the Work / Supply to the specification. 
  • Within a given period.  
  • Not relevant: Actual quantities of work or material supplied.   
  • Suitable for Contracts like Construction of 100 Nos of Type I Quarters, Replacement of wiring in 200 Type I Quarters, etc.

 



Schedule Contract: 



  • It is simplest form of Contract 



  • The contractor engages to carry out a work or effect supply as specified and within a given period at fixed unit rates or prices for each of the various items comprising such work or supply,



  • the sum he is to receive depending on the actual quantities and kinds or work done or materials supplied in completing the work or supply to specification and time.  

 

  • It is not repugnant to the above definition to show in such contracts the approximate amount of the contract, based on approximate quantities and the fixed unit rates.   
  •  

 

In simple: 



  • The sum paid to the Contractor  - Depends on the actual Quantities of work or material supplied 
  • Fixed unit rates or prices for each of the various items (Not Total work value)  
  • Within a given period as per specifications.  
  • Contract rates and quantity of various activities are fixed beforehand at the time of the award the Work. 
  • Most commonly used type of Contract in Indian Railways.  
  • No lump sum payment is permitted except in Earth work. 

 

Piece Work Contracts: 



  • A contract under which only unit rates or prices for various kinds of work or materials are agreed upon,
  • without reference either to the total quantity of work to be done or material supplied; 
  • The Railway may indicate its intention as to the maximum value of the orders it is likely to place;
  • but the contractor cannot claim to be given an order for more than one unit of work or supply. 
  • After the contract is executed, specific orders for work or supply may be placed against it. Maximum value of One Work Order is Rs.5 Lakhs 
  • The rate of progress may not be specified;
  • but if it is not satisfactory the contract can be terminated. 

In Simple: 



  • Agreed only unit rates or prices for various kinds of works / materials 
  • No reference of Total work to be done  or  Materials to be supplied. 
  • Railways indicate maximum value of work to be executed or material to be supplied. But there is no guarantee. 
  • Contractor cannot be claimed to be given for more than one order. 
  • After the contract is executed, specific orders for work or supply may be placed against it. 
  • Maximum value of One Work Order is Rs.5 Lakhs  
  •  Also called Fixed Rate Contracts 
  • Generally Time period is One year. 

  

 

Example: Zonal Contracts