CONTRACT ENGINEERING DIVISION

CONTRACT ENGINEERING

DIVISION

KEY FUNCTIONAL AREAS

PREPARATION OF STANDARD DOCUMENTS

Works Manual

General Conditions of Contract for Contracting & Consultancy

works.

UPDATION OF WORKS MANUAL AND GENERAL CONDITIONS OF CONTRACT.

Adoption of New Govt Policies by amending the relevant contractual

clauses.

Modification in the clauses of the contract as per the SUGGESTED

changeS in procedures in the system.

GENERAL CONDITIONS OF CONTRACT for

Contracting and Consultancy works.

Notice Inviting Tender.

Applicable relevant Contractual Clauses.

Commencement of works – Documents/Procedures/Site Set up.

Payments terms: Procedure of Billing/Taxes/

Execution of works/Measurement of works.

Statutory Requirements.

Liquidated damages

Closure of works.

GCC CONTRACTING 2019 :

Main Components

Notice Inviting Tender

Instructions to Tenderer

Clauses of Contract

Forms and Formats


“Similar works for Building Works” shall mean “Residential/Non-Residential Building works of any no. of storeys”.

Validity of offer: 150 days from the date of opening of price tender.

Joint-venture / consortia of firms / companies shall not be allowedand the bidders should meet the above criteria themselves.

Integrity Pact (For all contracts valuing Rs.5.00 Crores and above)

Integrity Pact duly signed by the tenderer shall be submitted. Any tenderwithout signed integrity Pact shall be liable for rejection.

All the uploaded documents should be in readable, printable andlegible form failing which the Bids are liable for rejection.

Rs.40000/- per person per month plus GST @ 18% or as per prevailingrate on the date of recovery.


Deviation limit beyond which clause 6.2 & 6.3 shall apply for all works except foundation.

BUILDING WORK:30%

ANNUAL REPAIR & MAINTENANCE OF BUILDINGS:50%

ROAD WORK:50%

Note:-The Deviation Limit of Building Work shall also apply for combined works(Building and Road)

Deviation limit beyond which clause 6.2 & 6.3 shall apply for foundation work BUILDING WORK:100%

ANNUAL REPAIR & MAINTENANCE OF BUILDINGS: NOT APPLICABLE

ROAD WORK: NOT APPLICABLE

Note:-The Deviation Limit of Building Work shall also apply for combined works (Building and Road)


SITE VISIT AND COLLECTING LOCAL INFORMATION

Before tendering, the tenderers are advised to visit the site, its

surroundings to assess and satisfy themselves about the local conditions

such as the working and other constraints at site, approach roads to the

site, availability of water & power supply, application of taxes, duties and

levies as applicable & any other relevant information required by them to

execute complete scope of work.

Non-availability of access roads or approach to site, for the use of the

contractor shall in no case condone any delay in the execution of work

nor be the cause for any claim for compensation.


ADDENDA/ CORRIGENDA

Addenda/Corrigenda to the tender documents may be issued prior to the date of

submission of the tender to clarify or effect modification in specification and/or

contract terms included in various tender documents.

The tenderer shall suitably take into consideration such Addenda/Corrigenda while

submitting his tender.

CLARIFICATION AFTER TENDER SUBMISSION

The tender evaluation and process of award of works is done by duly authorized

Tender Scrutiny Committee and this committee is authorized to discuss and get

clarification from the tenderers.


ORDER OF PRECEDENCE OF DOCUMENTS

Letter of Award, along with statement of agreed variations and itsenclosures, if any.

Special Condition of Contract

Description of Bill of Quantity / Schedule of Quantities.

Technical specifications (General, Additional and Technical Specification)as given in Tender documents.

General Conditions of Contract.

Drawings

CPWD/ MORTH specifications (as specified in Technical Specification ofthe Tender) update with correction slips issued up to last date of receiptof tenders.

Relevant B.I.S. Codes

Clauses of Contract

PERFORMANCE GUARANTEE:

Within 15 (Fifteen) days from the date of issue of letter of Award, the

contractor shall submit to NBCC 4 nos. irrevocable performance bank

guarantee in the form appended: 1.25% (one point two five per cent only) of

the contract value thereby totalling to 5% of the contract value.

forfeiture of the one or more performance guarantee(s) on the pro-rata basis

of the elapsed contract period in the event of

the contractor’s failure to fulfill any of the milestones/ contractual

obligations i.e. defaults in commencing the work, fails to maintain the

required progress in terms of relevant clause of GCC & SCC, in case of bad

work or work not done as per specifications etc.

Clauses of Contract

3.0 SECURITY DEPOSIT/ RETENTION MONEY

Security deposit or the retention money shall be deducted from each running/

final bill of the contractor @ 2.5% (two point five per cent only) of the gross

value of the Running Account/ final bill.

release/refund of security deposit of the contractor shall be subject to the

observance/compliance of the conditions

Expiry of the defect liability period in conformity with provisions contained in

clause 38.0 (Defect liability clause).

The contractor produces a clearance certificate from the labour office.

part or full forfeiture of security deposit in addition to other claims in the

event of contractor’s failure to fulfill any of the contractual obligations

Clauses of Contract4.0 MOBILIZATION ADVANCE

up to maximum of amount as mentioned in the tender shall be paid to thecontractor, if requested by him, on submission of irrevocable Bank Guaranteevalid for contract period of an amount 1.1 times of the mobilizationadvance to take care of advance and interest.

This advance shall be paid in three installments as follows:

1st - 50% shall be paid after the agreement is signed and upon submissionof performance guarantee.

2nd – 25% will be paid after the setting up of site office and sitelaboratory, complete mobilization of plant and machinery,scaffolding & shuttering materials etc.

3rd – 25% shall be paid on completion of 10% of work in terms of cost andafter the contractor has fully mobilized the work at site.

Recovery of such mobilization advanced including interest shall be made bythe deduction from the contractor’s bills commencing after first ten percentof the gross value of the work is executed and paid, on pro-rata percentagebasis to the gross value of the work billed beyond 10% in such a way that theentire advance is recovered by the time eighty percent of the gross value ofthe contract is executed and paid, together with interest due on the entireoutstanding amount up to the date of recovery of the installment.

Clauses of Contract

5.0 SECURED ADVANCE AGAINST NON-PERISHABLE MATERIALS -Interest free

secured advance –

Max 75 % of the cost/Market Value of the Materials or the 75 % cost of

materials as derived from the tendered item rate of the contractor,

whichever is less, required for incorporation in the permanent works and

brought to site and duly certified by NBCC site Engineer shall be paid to the

Contractor for all non-perishable items.

shall be recovered / deducted from the next payment made under any of the

clauses of this contract.

Amount of advance against each material shall be recovered within 3 months

from the date of payment. In case recovery could not be made within the

period due to any reason, applicable interest shall be charged on the

outstanding advance amount which shall be recovered/deducted on monthly

basis.

Clauses of Contract

6.0 DEVIATIONS / VARIATIONS EXTENT AND PRICING

The Engineer-in-Charge shall have power

(i) to make any alterations in, omissions from, additions to or substitutions for,

the original specifications, drawings, designs and instructions that may

appear to him to be necessary during the progress of the work.

(ii) to omit part of the works in case of non-availability of a portion of the site

or for any other reasons

such alterations, omissions, additions, or substitutions shall form part of the

contract as if originally provided therein and any altered, additions or

substituted works which the contractor may be directed to do in the manner

specified above as part of the work, shall be carried out by the contractor on the

same conditions.

Clauses of Contract

If the extra items include any work for which no rate is specified in the

contract, then such work shall be carried out at the rates entered in the

schedule of rates plus the tender percentage.

in the case of extra items that are completely new, and are in addition to the

items contained in the contract, and not included in the schedule of rates:

the contractor may within 15 days of receipt of order or occurrence of the

item(s) may claim rates, supported by proper analysis, for the work

and the engineer-in-charge shall within one month of the receipt of the

claims supported by analysis, determine the rates on the basis of the

market rates and the contractor shall be paid in accordance with the

rates so determined.

Clauses of Contract In the case of substituted items, the rate for the agreement item (to be

substituted) and substituted item shall also be determined in the manner asmentioned below:

(a) If the market rate for the substituted item so determined is > market rate ofagreement item (to be substituted),

the rate payable shall be the rate for the agreement item + the extent ofthe difference between the market rates of substituted item and theagreement item.

(b) If the market rate for the substituted item so determined is < market rate ofthe agreement (to be substituted),

the rate payable shall be the rate for the agreement item - the extent ofthe difference between the market rates of substituted item and theagreement item.

Market Rates to be determined as per various sub-clauses under the clause 6.0shall be on the basis of prevailing rates of Material excluding GST (unlessmentioned otherwise), Relevant Labour authority rate for Labour, market ratesof T&P etc. plus 15% towards Contractors’ Profits and Overheads

Clauses of Contract

TIME ESSENCE OF CONTRACT & EXTENSION FOR DELAY

The time allowed for execution of the Works as specified in the Memorandum

or the extended time in accordance with these conditions shall be the

essence of the contract.

The time for the completion of the work shall, in the event of any deviations

resulting in additional cost over the tendered value sum being ordered be

extended, if requested by the contractor, as follows:

in the proportion which the additional cost of the altered, additional or

substituted work bears to the original tendered value plus

25% of the time calculated in (i) above or such further additional time as

may be considered reasonable by the Engineer-in-Charge.

Clauses of Contract

8.0 COMPENSATION FOR DELAY

If the contractor fails to maintain the required progress in terms of relevant

clause of GCC & Special Conditions of Contract, to complete the work and

clear the site on or before the contract or extended date of completion, he

shall, pay to the NBCC as agreed compensation the amount calculated at the

rates stipulated below(plus GST extra)

i) Compensation for delay of work @ 0.5% per week

A record on delay during the tenure of the project shall be maintained at site

along with the supporting documents.

Clauses of Contract

11.0 CANCELLATION/ DETERMINATION OF CONTRACT INFULL OR PART

Engineer-in-Charge may by notice in writing absolutely determinethe contract in any of the following cases:

If the contractor having been given by the Engineer-in-Charge anotice in writing to rectify, reconstruct or replace any defective workor that the work is being performed in an inefficient or otherwiseimproper or un-workmanlike manner.

If Contractor without reasonable cause suspended the works.

If the contractor fails to complete the work within the stipulateddate

If the contractor persistently neglects to carry out his obligationsunder the contract and / or commits default in complying with any ofthe terms and conditions of the contract.

Clauses of Contract 13.0 CARRYING OUT PART WORK AT RISK & COST OF CONTRACTOR

If contractor:

makes default during currency of work or does not execute any part of the work with due diligence and continues to do so even after giving a notice in writing of 7 days in this respect from the Engineer-in-Charge; or

Fails to complete the work(s) or items of work with individual dates of completion, on or before the date(s) so determined, and does not complete them within the period specified in the notice given in writing in that behalf by the Engineer-in-Charge.

The Engineer-in-Charge, by a notice in writing to take the part work/part incomplete work of any item(s) out of his hands and shall have powers to:

Take possession of the site and any materials, constructional plant, implements, stores, etc., thereon; and/or

Carry out the part work / part incomplete work of any item(s) by any means at the risk and cost of the contractor.

Clauses of Contract 14.0 SUSPENSION OF WORKS

The contractor shall, on receipt of the order in writing of the Engineer-in-charge, suspend the progress of the works or any part thereof for suchtime and in such manner as the Engineer-in-charge may considernecessary for any of the following reasons:

i) On account of any default on part of the contractor, or

ii) For proper execution of the works or part thereof for reason otherthan the default of the contractor, or

iii) For safety of the works or part thereof.

The contractor shall be entitled to an extension of the time equal to theperiod of every such suspension plus 25% for completion period. Noadjustment in contract price will be allowed for reasons of suchsuspension.

In the event of the Contractor treating the suspension as an abandonmentof the Contract by NBCC, he shall have no claim to payment of anycompensation on account of any profit or advantage which he may havederived from the execution of the work in full.

Clauses of Contract

22.0 INSURANCE OF WORKS ETC

Engineer-In charge has to ensure that Insurance policies are submitted by the

contractor within 15 days from the date of issue of LOA.

Contractor’s All Risk policy: in the joint name with first name of NBCC and bear all

costs for the full period of execution of works including the DLP.

Insurance under workmen compensation act

Third party insurance etc....

In case of failure of the contractor to obtain contractors all risk policy,

insurance under workman compensation act and third party insurance as

described above, NBCC reserves the right of forfeiture of the Performance

Bank Guarantee

Clauses of Contract

23.0 PAYMENTS

All running payments shall be regarded as payments by way of advanceagainst the final payment only and not as payments for work actually done.

shall not preclude the recovery for bad, unsound and imperfect or unskilledwork to be removed and taken away and reconstructed or re-erected or beconsidered as an admission of the due performance of the Contract.

The final bill shall be submitted by the contractor within three months of thecompletion of work, otherwise NBCC’s certificate of the measurement and ofthe total amount payable for the work accordingly shall be final and bindingon contractor.

the contractor shall become entitled to payment only after NBCC hasreceived the corresponding payment(s) from the client/Owner for the workdone by the contractor

Clauses of Contract

27.0 WORK TO BE EXECUTED and MEASUREMENTS OF WORKS

All items of work shall be carried out as per the latest CPWD/ MORTH

specifications and drawings & instructions of the Engineer-in-Charge of

NBCC

contractor shall also conform exactly, fully and faithfully to the design,

drawings and instructions in writing in respect of the work assigned

ascertain and determine by measurement, the value of work done in

accordance with the contract.

NBCC shall be entitled to withhold and also have a lien to retain such

sum or in part from the security deposit and also have a lien over the

same pending finalization or adjudication of any such claim.

Any sum of money may be withheld or retained by way of lien against any

claim under any other contract made by the contractor with the NBCC.

Clauses of Contract

26.0 WITHHOLDING AND LIEN IN RESPECT OF SUMS DUE FROM CONTRACTOR

NBCC shall be entitled to withhold and also have a lien to retain such sum or in

part from the security deposit and also have a lien over the same pending

finalization or adjudication of any such claim.

Any sum of money may be withheld or retained by way of lien against any claim

under any other contract made by the contractor with the NBCC.

Clauses of Contract

33.0 QUALITY ASSURANCE PROGRAMME

To ensure that the services under the scope of this contract are in accordance

with the specifications, the Contractor shall adopt Quality Assurance Programme

to control such activities at the necessary points.

Clauses of Contract

34.0 CONTRACT COORDINATION PROCEDURES, COORDINATION MEETINGS

AND PROGRESS REPORTING

The Contractor shall prepare and finalize in consultation with NBCC, a

detailed contract coordination procedure within 15 days from the date of

issue of Letter of Award

The Contractor shall not deal in any way directly with the Clients/ Owners or

Consultants

Clauses of Contract

35.0 COMPLETION CERTIFICATE AND COMPLETION PLANS

Engineer-in-Charge shall inspect the work and if there is no defect in the

work, shall furnish the contractor with a final certificate of completion,

otherwise a provisional certificate of physical completion indicating defects

(a) to be rectified by the contractor and/or

(b) for which payment will be made at reduced rates, shall be issued.

But no final certificate of completion shall be issued, nor shall the work be

considered to be complete until the contractor shall have removed from the

premises, his resources and cleaned off the dirt from all work executed.

Clauses of Contract

37.0 FORECLOSURE OF CONTRACT BY NBCC/OWNER

If at any time NBCC shall for any reason required to abandon the work or is not

require the whole work thereof as specified in the tender to be carried out,

shall give notice in writing to the contractor,

Contactor shall have no claim to any payment of compensation whatsoever on

account of any profit.

Clauses of Contract

38.0 DEFECTS LIABILITY PERIOD

The contractor shall be responsible for the rectification of defects in the

works for a period twelve (12) months from the date of taking over of the

works by the NBCC or clients whichever is later.

Any defects shall be attended to and rectified by him at his own cost and

expense.

In case the contractor fails to carry out these rectifications, be got rectified

by NBCC at the cost and expense of the contractor

Clauses of Contract

39.0 SUBLETTING / SUB-CONTRACTING

The sub-contracting, excluding design work shall be limited to 40% of the

contract value.

The value of a sub-contract, other than for design work and bought out items

as and when awarded, should be intimated by the contractor within 15 days

of signing and in any case not later than 7 days before the sub-contractor

starts the work.

Clauses of Contract

41.0 NO COMPENSATION CLAUSE

The contractor shall have no claim whatsoever for compensation or idle

charges against NBCC on any ground or for any reason, whatsoever

45.0 WATER AND ELECTRICITY

The contractor shall make his own arrangement for Water & Electrical Power for

construction and other purposes at his own cost and pay requisite electricity and

water charges. The contractor shall also make standby arrangement for water &

electricity to ensure un-interrupted supply.

Clauses of Contract

53.0 INDIAN STANDARDS

Wherever any reference is made to any IS in any particular specifications, drawings

or bill of quantities, it means the Indian Standards editions with up to date

amendments issued till last date of receipt of tender documents.

Clauses of Contract

53.1 Use of Recycled Aggregate for Concrete at the Project:

The Contractor shall use Recycled aggregate (RA) and Recycled Concrete

Aggregate (RCA) i.e. manufactured aggregate and other recycled products

such as screened soil, manufactured sand, brick sub-base, concrete

bricks, pavers, tiles etc from construction and demolition (C&D) waste, if

available within 100 Km. from site of the work, in lean concrete, PCC and

RCC and other related works at the project as per the guidelines

specified in IS:383:2016. He shall also maintain a separate record

regarding quantum of recycled aggregate/ products used in the project.

53.2 Use of Fly Ash Products

As per MOE&F guidelines, the contractor shall use Fly Ash products such

as cement, concrete, bricks, blocks, tiles etc. or similar products or a

combination or aggregate of them for the projects fall within the radius

of 300 kms from a coal or lignite based thermal power plant.

Clauses of Contract

55.0 RECORDS OF CONSUMPTION OF CEMENT & STEEL

For the purpose of keeping a record of cement and steel received at site and

consumed in works, the contractor shall maintain a properly bound register in

the form approved by the NBCC, showing columns like quantity received and

used in work and balance in hand etc. This register shall be signed daily by

the contractor’s representative and NBCC’s representative.

Clauses of Contract

56.0 TESTS AND INSPECTION

56.1 The contractor shall carry out the various mandatory tests as per

specifications and the technical documents that will be furnished to him

during the performance of the work.

All testing charges, expenses etc. shall be borne by the contractor. All the

tests, either on the field or outside laboratories concerning the execution of

the work and supply of materials shall be got carried out by the contractor or

NBCC at the cost of the Contractor.

Clauses of Contract

64.0 SET-OFF OF CONTRACTOR’S LIABILITIES

deduct or set off the expenses incurred or likely to be incurred by it in

rectifying the defects

any claim under this agreement against the Contractor from any

against any amount payable to the contractor under this agreement

including security deposit and proceeds of performance guarantee.

Clauses of Contract

73.0 LABOUR LAWS

73.1 LABOUR LAWS TO BE COMPLIED BY THE CONTRACTOR

The contractor shall obtain a valid license until the completion of the

work including defect liability period.

The contractor shall not engage any labour below the age of 18 under any

circumstances.

The contractor shall also declare in each running bill that he has not

engaged any labour below the age of 18 in the project.

Any failure to fulfil above requirement shall attract the penal provisions of

this contract arising out the resultant for non-execution of the work before

the commencement of work.

Clauses of Contract

73.3 LABOUR SAFETY PROVISION

The contractor shall be fully responsible to observe the labour safety

provisions:

The contractor shall at his own cost take all precautions to ensure safety of

life and property by providing necessary barriers, lights, watchmen etc.

During the progress of work as directed by Engineer-in- charge

contractor shall comply with all rules framed by Govt. from time to time for

the protection of health and sanitary arrangements for workers.

Clauses of Contract

81.0 CONTRACT AGREEMENT

The Contractor shall enter into a Contract Agreement with the NBCC within30 days from the date of Letter of Award

In case, the contractor does not sign the agreement as above or start thework within 10 (Ten) days of the issue of letter of Award, his earnest money

is liable to be forfeited and Letter of award consequently will standwithdrawn.

82.0MANNER OF EXECUTION OF AGREEMENT

The agreement will be signed in five originals and the Contractor shall beprovided with one signed original and the other four originals will be retainedby the NBCC

Subsequent to signing of the Agreement, the Contractor at his own cost shallprovide to the NBCC with at least five (5) true hard bound copies ofAgreement within thirty (30) days of its signing.

Clauses of Contract

84.0 THIRD PARTY SAFETY AUDIT: (APPLICABLE FOR PROJECTS VALUING RS.

50 CRORE AND ABOVE)

An experienced and reputed agency shall be engaged/ appointed by the

contractor at all the projects valuing Rs.50 crore and above from the agencies

empanelled by NBCC for Monitoring & Auditing of Safety measures in the

construction work.

Clauses of Contract

SECTION 4 & SECTION 5

Labour Safety Provisions

Accommodation

Canteen

Health and Sanitary

Muster Roll etc..

FORMS and FORMATS

Agreement Form

Labour record Format

Affidavit etc.

WORKS MANUAL – WORK PROCEDURES TO BE

FOLLOWED BY DIVISIONS/OFFICERS1. INTRODUCTION, OBJECTIVE, FUNCTIONS AND ORGANISATION SET UP.

1.

• SUBSIDIARIES & JVs

• CORPORATE VISION, MISSION, VALUES AND OBJECTIVES

• FUNCTIONAL AREAS

• COMPANY COMPETITIVE STRENGTHS

1.

• Focusing on Transparency at Work Place

• ERP,E office, E-Tendering, E-Payments, E-Billing

• ORGANISATIONAL SET UP

• AWARDS AND RECOGNITIONS

2. PROJECT IMPLEMENTATION DOCUMENTS

(PID) AND COST OF COMPLETION (CTC)

2.1.0 Project Implementation Document (PID) :If work is awarded to NBCC by the clients on EPC basis, PID shall be prepared by the Business Development Division

2.2.0 Cost to Completion (CTC) :CTC has to be prepared immediately after award of work process is over because prime cost to be considered is value of award issued in favour of contractor.

CTC

Objective is to ensure that the profit margin as envisaged in the working for

Tender is maintained by the project. It helps the management and its

stakeholders to identify the areas of strength & weakness of the particular

project and for a particular segment of projects and also for doing

improvement in the future operations

If at any stage during the currency of the project, the approved expenditure

towards prime cost and Field Overhead is expected to exceed CTC provisions,

remedial measures are to be taken by the RBG/SBG/Zone

control such extra expenditure by identifying areas where corresponding

savings can be made to cover additional expenditure

or to justify the extra cost to the management.

Award of works

Preparation of the Tender Documents:

Tender Formation Committee: The RBG/SBG/Zonal Head shall constitute

the Tender Formation Committee (TFC) consisting of the following:

Unit In-Charge

Technical In-charge of the office of the RBG/SBG Head

Finance In-charge of the office of the RBG/SBG Head

The TFC shall be responsible for preparation of the tender documents

consisting of the Bill of Quantity, draft NIT, Performance Specifications

covering the quality of materials, equipments, and workmanship, Special

Conditions of Contract (SCC), Drawings, approved makes, estimated cost,

Market Rate Analysis, project scope and the size, type, and desired design

character of the buildings and site, Detailed Scope of Work……………

Award of works

TFC shall ensure that the principles of Life Cycle cost in line with GFR Rules

2017-Rule No 136 has been considered & submitted by the consultant and are

well incorporated in the design.

TFC shall ensure that all the approved makes for each respective item in the

tender are considered Make in India (MII) only as per the norms of minimum

Local content required as defined in the Public Procurement (Preference to

Make in India) order 2017 or any subsequent revision and recommend the

same for approval by concerned RBG/SBG/ZH.

In case, where reputed MII makes are not available, names of any

imported/foreign makes shall not be specified, instead requisite

specifications of the materials shall only be given in the tenders.

Award of works

The powers for Award of Works and purchase shall be exercised by the

approving authority after receipt of recommendations of duly constituted

tender scrutiny committee in this regard.

The composition of Tender Scrutiny Committee for Award of Works and

purchase shall be as per relevant provision contained in SDoP/Works

Manual.

The TSC shall be appointed by the approving authority. The approving

authority shall nominate the competent technical and financial officials, as a

member of the TSC. Constitution of TSC is standardized at corporate level

which is approved by the Competent Authority and circulated separately

through an order.

Award of works

THE TENDER SCRUTINY COMMITTE ( TSC )

The tender shall be invited after following due procedures and proposalfor approval duly recommended by TSC members for award/rejectionshall be put up to the approving authority for approval.

The approving authority for call of tender shall also be the approvingauthority for cancellation of tender.

In case of retendering/re-call of tender for award of work, approvingauthority shall be as per the Sub delegation of Power.

PREPARATION OF TENDER DOCUMENTS

All the works above Rs.50.00 Crores shall be invited on EPC/ Design & Build modewith fixed rate contract and use of New construction technologies shall bemandatory for such works. Any deviation in the above procedure should be withthe approval of concerned Director only.

Award of works

Invitation of Global Tender:

All tenders having estimated cost above Rs 1000 crore or as per

requirement of client may be invited as Global tenders.

Participation of Bidders in Joint Venture/ Consortium:

Joint-venture / consortia of firms / companies shall not be allowed and

the bidders should meet the above criteria themselves. However,

participation of Bidders in Joint Venture/Consortium (hereinafter would

be referred as JV) may be allowed in high value Projects having estimated

cost of Rs.1000 crore or more.

Award of work-

Contractor/Consultants

Guidelines to Work Out Justified Cost of Tender

ELIGIBILITY CRITERIA OF BIDDERS FOR AWARD OF

WORK

Prequalification of Contractors

PREPARATION OF TENDER DOCUMENTS

MODE OF TENDERING

EXECUTION OF WORKS: Project Management

/ Implementation/Coordination.

PROJECT KICK-OFF MEETING: after issue of Letter of Award

to discuss about his action plan about the requirements of the Project.

This meeting shall also be attended by NBCC’s project Architect appointed

for the works.

This discussion shall include discussions on site opportunities &

constraints, details of Buildings to be constructed and their tentative

location at site, tentative location of tapping / discharge of various

external services, layout plan including site levels, topographical survey

report (if available), geotechnical investigation report (if available) & any

other issue as may be required.

seek contractor’s views on project and how he plans to execute the

project.



Contractor shall submits site organization chart within 15 days of Letter of

Award

Contractor is required to submit Time & Progress Chart (CPM/PERT/ Quantifi

ed Bar Chart) within 10 days of Letter of Award.

Contractor is required to maintain various registers in the form either laid

down in contract or approved by Engineer-in-Charge of NBCC at site for

keeping of records of various materials consumption (like cement & steel),

labour records, and statutory compliance like insurance policy register etc.

The selected contractor shall submit details of plants, machinery, tools etc.

he proposes to deploy at site of work.

Cement godown and steel stockyard shall be constructed as laid down vide

clause 48.0 and clause 49.0 of General Conditions of Contract as per Drawings

and specification in CPWD specification.



Before commencing the setting out of the Works the Engineer-in-Charge shall

ascertain the location of all existing underground services within the Site

boundary.

Before commencing the setting out of the Works, the Contractor and the

Engineer-in-Charge shall make an inspection of the Site.

It is required to establish accurate temporary bench marks on permanent

blocks from which the levels to the Works are to be constructed may be

transferred.

FIELD BOOK OF SITE ENGINEERS

Every Site Engineer should keep a Field Book in which will be entered any

particulars with reference to the progress of works which may be relevant

such as nature of soil in which foundations are to be provided, the quality

of materials delivered at site of work, the quality of workmanship etc.



SITE ORDER BOOK

It is meant for the Site Engineer and the supervisory Engineers to record

their observations if they find any defective work going on or the

Contractor not complying with the terms of Contract. This record should

be in a bound register form with pages machine numbered.

HINDRANCE REGISTER

This is a basic record for dealing with the application of the Contractor

for Extension of Time. Whenever any hindrance comes to the notice of

the Site Engineer or the contractor, a note of such hindrances should be

recorded in the Hindrance Register which shall be a bound one with pages

machine numbered.

EXECUTION OF WORKS: Project

Management / Implementation/Coordination.

METHODS STATEMENT

In all major works of contract costing more than Rs. 10 Crores, provision shall

be made in the tender documents for the contractor to submit a 'Methods

Statement' for approval of Engineer-in-charge, soon after the award of work

to him.

GUARANTEE FOR SPECIAL ITEMS LIKE WATER PROOFING ETC.

In respect of special items of works like water proofing treatment etc., the

contractors/specialized agency is required to furnish guarantee bond for

satisfactory performance of the works executed by them for a period of 10

years and/or as per the requirement of NBCC’s Clients in their contract as the

case may be, in the form of a guarantee bon



CHECK-LISTS

The Controlling Site Engineer should ensure that members of his construction

team, as well as the contractor’s supervisors-in-charge are fully aware of the

specifications and method of execution of any new / fresh item of work to be

ta ken up in the next 2 weeks

TESTING LABORATORY

In all major works of contract costing more than Rs 10 Crores, the contractor

shall be required to establish complete field testing laboratory and arrange all

the relevant codes and standards. The list of such testing equipment, codes

and standards shall be specified in the tender documents. The contractor

shall also provide the minimum staff, as specified, for quality assurance.



SAFETY

For Building Works, Construction Personal Protective Equipment (PPE) shall be

available at Site and are to be provided to the labour/staff as per

requirement of the work.

Development of REAL ESTATE WORKS

•11.9 Finalisationof Contracting/ Construction Methodology

•Appointment of Site Survey/Soil Investigation Agency & Consultant

•Forming Joint Venture with Private Entities

• Identification of Suitable Location / Land Parcel

Procurement of Land

Purchase of Private Lands

Marketing and Sales

Planning

ACQUISITION OF WORKS

EPC Works through tender/nomination basis

PMC Works through tender

PMC Works on Self Financing Model: These

projects are developed/ implemented by

monetizing through sale of part land/ Built up

Area either on lease hold or on freehold basis.

FINANCIAL PROCEDURES

After the approval of contractor/consultant bill, Project Finance In charge

creates PWL expenses/consultancy expenses and VWD based on the bills

raised to the client in the financial books

RBG/SBG Finance Head will certify the booking of PWL expense, VWD and

ensuring availability of funds before authorising on line requisition.

The approval for prior period income/expenses, if any, to be taken as per

SDoP.

After the bill is passed for payment the requisition for making the payment to

contractor/consultant is sent to corporate office by the RBG/SBG as per

respective SDoP clauses.

CLOSURE OF WORKS CONTRACT

When a project is on the verge of completion,a phase wise demobilisation

plan covering all the equipment, machinery, surplus materials and staff

available at the project should be worked out in advance by the SBG/RBG

Head and intimated to Project Closure Division (PCD) at least three months

prior to declaring project as completed to PMG by them as per their revised/

updated turnover target schedule and the process of demobilisation should

start well in time congruent with the completion of the project.

After the project passes the "peak” construction stage, the resource at the

project gradually becomes idle. If idling of resource is allowed the cost is

bound to overrun.

CLOSURE OF WORKS CONTRACT

It must be ensured that all obligations of NBCC arising out of the contract

agreement with the clients are fulfilled, action should be taken to close down

particular site office.

All the files, level books, copies of bills, drawings, contract documents etc.

including various registers (including master register having details of all

files/ registers etc. of the unit) shall be properly numbered and indexed and

packed in suitable boxes.

The Unit/Zonal In-charge shall prepare a detailed contract close documents

(CCD)

An officer shall be nominated by the Head RBG/SBG who will be responsible

to pursue all pending issues of the site getting demobilized.

Closure of Contract: Consideration of norms with respect to contract and also

project closure division shall be contacted for any query.

Legal: Any legal dispute, intimate the concerned legal officer posted at HO and coordinate with them till

resolution

ACQUISITION OF WORKS: BD Division. May initiate the enquiry of works in-

consultation with BD division

FINANCIAL PROCEDURES: Coordination with the Finance in

charge for being compliant to Financial procedures

Various types of court cases(1) Recovery Suit

(2) Summary Suit

(3) Company Petition/Winding-up Petition/Insolvency petition

(4) In any other forum i.e. DRT, CAT, Consumer forum

Recovery Suit – It is filed to realize the amount, admitted or disputed, allegedly due from theopposite party, where as a matter of right the opposite party gets an opportunity to counter thecase/claim of the petitioner, albeit with limitation.

Summary Suit – It is filed to realize the amount, admittedly due to petitioner, where if the oppositeparty wishes to defend the case, it has to obtain prior permission from the concerned court within 10days of receipt of summons intimating about institution of the case.

Winding-up Petition/Insolvency Petition - It is filed to realize the amount, admittedly due topetitioner from a company. In case the petitioner prima facie succeeds in establishing before thecourt that alleged amount is actually due from the company, the Court, without considering anyother facts will attach Bank Account or wind up the Company to the extent of admitted amount. ACompany Petition/Windingup Petition can only be filed before a High Court. Insolvency petition filedbefore National Company Law Tribunal.

In the insolvency case, reply of demand notice sent to contractor within 10 days otherwise it createadverse impact on the case.

Disputes

Disputes with contractor

Whenever any claim for payment of a sum of money arises out of or under the contract against thecontractor, the unit/zone shall withhold such sum from any sum found payable or which may at anytime thereafter become payable to the contractor under the same contract or any other contract,pending finalization or adjudication of the claim.

Client disputes

If the agreement contains an arbitration clause/ arbitration by the Administrative Mechanism forResolution of CPSEs Disputes (AMRCD), DPE), a list of claims proposed to be referred to adjudicationalongwith a small brief shall be forwarded to the Law Division to make necessary reference.

If the client Department/Company does not fall within the ambit of PMA and the agreement containsan arbitration clause, the RBG/SBG shall invoke arbitration in the manner provided in the Contract inconsultation with Law Division. A copy of such invocation shall be forwarded to Law Division for theirinformation and record. If the client department fails to appoint an arbitrator within 30 days or thetime frame stipulated in the contract of receipt of the notice of invocation, the RBG/SBG shallforward the case to Law Division for getting the arbitrator appointed through the competent court.

LEGAL

Legal matters of the Corporation are being dealt in a centralized manner by

Law Division of Corporate office which involves complete examination,

supervision of all legal matters including drafting/vetting of documents,

furnishing advice on legal issues besides, representing NBCC in the

arbitration/court cases against the clients/contractors in association with

nominated Presenting Officer(s).

Every effort should be made by RBG/SBG/Division Head to resolve any dispute

amicably before reaching to the stage of litigation/arbitration.

The precise legal issue to be examined by Law Division shall be clearly spelt

out in the proposal. Any legal advice rendered by Law Division will be limited

to the said issue.

Role of RBG/SBG Zone The contract should provide for jurisdiction to reason the Courts of Delhi. However, as per law, in

order to ensure that the territorial jurisdiction lies with the Courts of Delhi, atleast some part of the

cause of action must have arisen within the territorial jurisdiction of the Delhi courts. Therefore, if

this clause is to be enforced, it must be ensured that in respect of works at least the agreement is

signed in Delhi.

The concerned RBG/SBG shall process the case to initiate court/arbitration against client/contractor

through Law Division for obtaining prior approval of the competent authority.

Every effort should be made by RBG/SBG/Division Head to resolve any dispute amicably before

reaching to the stage of litigation/arbitration. If major contractual or legal issues are involved, the

assistance of the Law Division shall be taken for the same.

Before any action is taken in a court of law/arbitration against a party for amounts due to NBCC, a

reliable report of its financial standing and whereabouts shall be obtained by the concerned

RBG/SBG/Division, and simultaneously the expenditure likely to be incurred to recover this amount

should be estimated in order to work out financial viability of litigation.

Whenever NBCC receipt the legal notice/demand notice from the contractor/party, it is the

responsibility of the concerned zone to intimate to the Law Division along with para-wise comment to

prepare the reply on behalf of NBCC.

Role of Nodal officer and Presenting officer

The overall responsibility to provide complete information to Law Division shall remain with the

concerned HoD/RBG/SBG Head. He shall nominate a Nodal Officer to maintain all records in respect

of legal matters and to have an effective coordination with the Law Division/ Advocate/ Presenting

Officer. If a nodal officer is not nominated, the concernedRBG/SBG Head would, by default, be

termed as nodal officer.

After receipt of legal notice/summon from any court or after any decision to file a case has been

taken, the concerned HoD/RBG/SBG Head shall nominate a Presenting Officer (PO) (Engineer-in-

Charge/Unit-in-Charge/any other Officer who is conversant with the facts of the case) through an

Office Order in writing under intimation to Law Division to prepare pleadings/Claim statement/reply

and represent on behalf of Corporation in coordination with Law Division and the appointed counsel.

The Presenting Officer shall keep Nodal Officer and Law Division updated about proceedings before

the court/tribunal and would act as per directions of the Law Division.

However, in case the Presenting Officer is posted outside the place where the case is pending, his

presence shall be based on requirement of the case and with concurrence of Law Division & subject

to approval of the Competent Authority.

Cont..

All the advocates shall be engaged by the Law Division. However, the concerned RBG/SBG/Division

Head shall sign the Vakalatnama and pleadings and other court documents, if requested by the Law

Division, in terms of the SDOP. Further the Nodal Officer/ PO shall be informed about appointment of

advocates by the Law Division and he shall remain in touch with advocates appointed in the matters

pertaining to his zone.

The Presenting Officer shall take prompt action to prepare para wise factual

comments/defence/detailed brief and counter claim, if any, duly supported by adequate

documentary evidence. It shall be the duty of Presenting Officer to ensure that case is defended

properly and handled expeditiously.

It is the duty of Presenting officer to provide factual history of the dispute including written and

signed confirmation of the facts that they wish to rely on, before the court/arbitrator to the Law

Division within 15 days of the receipt of the Petition/Plaint/Approval for filing Case.

Cont..

The affidavit by way of evidence & admission-denial of documents involvesnarration of facts which has to be performed based on personalknowledge/involvement and the records maintained by the officers, as such, itshall be affirmed or denied / signed by the officials concerned possessing requisiteauthority.

The arbitration/court cases shall be given due importance and dealt with onpriority basis at all stages till they are finally disposed-off. The Nodal officer,along with the concerned PO shall be responsible for adhering to the stricttimelines pertaining to the submission of parawise comments/ supportingdocuments and any further assistance, as required.

The Nodal officer shall co-ordinate with the local Advocate and concernedpresenting officer(s) and shall be responsible for providing all kind ofinformation/documents to the Law Division as may be required from time to time.He shall also be responsible for processing & payment of fee(s) of Advocate.

JUDGMENT After pronouncement of judgement/award in a case it shall be responsibility of the Presenting

Officer/Nodal Officer to send a report/ comments through the RBG/SBG Head to the Law Division

within 10 days of delivery of judgment/award by the court/arbitrator to come to a decision whether

the order is to be challenged/accepted.

The RBG/SBG Head shall make sure that the approval must be acted upon without any delay,

preferably within 7 days. The RBG/SBG Head shall send a compliance report to the Law Division in this

regard.

The payment shall be made to the contractor after obtaining an undertaking from the contractor for

acceptance of the order in full and final satisfaction/settlement of order/contract. Immediate

payment ensures that NBCC is absolved of the liability of payment of interest on the amount

decreed/awarded. The undertaking shall be obtained from the contractor on stamp paper of

appropriate value.

Bank Guarantee encashment Before termination of a contract, the Contractor or as the case may be shall be issued a show cause

notice in terms of relevant clause of the Contract.

It must be ensured that on or before the termination of contract and invocation of Bank Guarantee,

the Engineer-in-Charge/Concerned RBG/SBG Head shall file a caveat before the competent court in

terms of the agreement / having jurisdiction over the subject matterin consultation with the Law

Division.

It must be ensured that invocation of Bank Guarantee shall be signed by the person in whose favour

the Bank Guarantee is issued so as to constitute valid invocation. In case the Bank Guarantee has

been issued in favour of NBCC Ltd, the invocation letter shall be signed by Concerned RBG/SBG Head.

RIGHT TO INFORMATION ACT, 2005

RTI Logo -

A very simple and iconic logo related to ‘i’ for information.

A sheet of paper with information on it, and the authority figure behind it – providing the

information.

The bright blue color stands for transparency and purity (free from malpractices) of process.

RIGHT TO INFORMATION WHY?Democracy requires an informed citizenry.

Transparency of information vital to its functioning.

To contain corruption

Re-define larger framework of Accountability,Democracy, Ethics and Rights.

Under-pins administrative reforms.

Enables Human Rights to be realized.

Harmonize conflicting interests.

RIGHT TO INFORMATION ACT, 2005

The RTI bill was introduced in the Lok Sabha in December 2004.

It was passed by both Houses of the Parliament in may 2005.

The assent of the President was received on 15th June 2005 and act wasnotified in the Gazette of India on 21st June 2005.

The RTI act has been operational on 12th October 2005 after completion of120 days from the date of Presidential assent.

SALIENT FEATURES OF THE ACT

Maximum Disclosures

Duty to Publish

Suo motu and web based disclosures

Duty to Furnish

PIO and Deemed PIO

Exemption – As per section 8 and 9 of the Act.

Covers Private Body & Third Party Information

Penalty for defiance.

Independent and Non-judicial appellate mechanism

Empowerment of citizens

DEFINITION OF “INFORMATION” {SECTION 2 (f) & 2(j) of

RTI Act, 2005}

• “Right to Information” means right to information accessible under thisact which is held by or under the control of any public authority andincludes the right to-

• Inspection of work, documents, records;

• Taking notes, extracts or certified copies of documents or records;

• Taking certified samples of material;

Contd…

DEFINITION OF “INFORMATION” {SECTION 2 (f) & 2(j) of RTI Act, 2005}

Obtaining information in the form of diskettes, floppies, tapes, video cassettesor in any other electronic mode or through printouts where such information isstored in a computer or in any other device.

What is a Public Authority?

“Public Authority" means any authority or body orinstitution of self- government established or constituted—(a)by or under the Constitution; (b)by any other law madeby Parliament; (c)by any other law made by StateLegislature; (d)by notification issued or order made by theappropriate Government, and includes any— (i) bodyowned, controlled or substantially financed; (ii) non-Government organization substantially financed, directlyor indirectly by funds provided by the appropriateGovernment;

A public authority has to fulfill certain obligations as perRTI Act – 2005.

ROLE OF PIO AND APIO

• Under the RTI act, Public Information Officers (PIOs) should bedesignated in all administrative units of every public authority in order toreceive information requests from citizens.

• The RTI act requires that every public authority shall designate AssistantPublic Information Officers.

•Under the act, every APIO has the duty and responsibility to receiveinformation requests from the citizens and forward them to the PIO of theconcerned public authority that is likely to have the information beingsought by the applicant.

HANDLING NORMAL INFORMATION(Section - 7 of RTI Act, 2005)

• Provide information within 30 days of the request.

• If the information concerns life or liberty of a person, within 48 hours.

• Failure to provide information within specified time limit by PIO will bedeemed refusal of request.

• If payment of further fees is required to provide information, PIO to intimatethe requestor.

• Intervening period excluded from specified period of 30 days.

Contd…

HANDLING NORMAL INFORMATION

• Fees prescribed for providing information in printed or anyelectronic format is as under:-

i) A request for obtaining information under sub-section (1) of Section6 shall be accompanied by and application fee of rupees ten by way ofcash against proper receipt or by Demand Draft of Bankers Cheque orby Indian Postal Order payable to the public authority.

Contd…

HANDLING NORMAL INFORMATION

ii) Rupees two for each page (in A-4 or A-3 size paper) created or copied;

iii) Actual charge or cost price of a copy in larger size paper;

iv) Actual cost or price for samples or models; and

v) For inspection of records, no fee for the first hour; and a fee of rupeesfive for each fifteen minutes (or fraction thereof) thereafter.

vi) For information provided in diskette or floppy rupees fifty perdiskette or floppy; and

Contd…

HANDLING NORMAL INFORMATION.

vii) For Information provided in printed form at the price fixed for suchpublication or rupees two per page of photocopy for extracts from thepublication.

• No such fees for persons below poverty line.

• Info to be given free of charge (no fees) if not provided within specifiedtime limit.

• Info to be provided in the requested format unless

i) Disproportionately expensive.

ii) Affects safety or preservation of the record.

WHAT IS NOT OPEN TO DISCLOSURE

PIO may reject a request for info for any of the grounds mentioned inSections 8 & 9 (within 30 days)

Section (8) (1) {exemption from disclosure of information}

a) National Security - Information , disclosure of which wouldprejudicially affect the Sovereignty and Integrity of India, the Security,Scientific or Economic interests of the State, relation with foreign state orlead to incitement of an offence;

Contd…..


b) Contempt of Court- Information which has been expressly forbidden to be published byany Court of Law or Tribunal or the disclosure of which may Constitute Contempt of Court;

c) Parliamentary Privilege- information, the disclosure of which would cause a breach ofPrivilege of Parliament or the State Legislature;

d) Trade Secrecy- Information including commercial confidence, trade secrets or intellectualproperty, the disclosure of which would harm the competitive position of a third. Party, unlessthe competent authority is satisfied that larger public interest warrants the disclosure of suchinformation;

Contd….


e) Fiduciary Relationship- Information available to a person in hisfiduciary relationship, unless the competent authority is satisfied that thelarger public interest warrants the disclosure of such information;

f) Foreign Government- Information received in confidence from ForeignGovernment;

g) Safety of informer in Law Enforcement- Information, the disclosure ofwhich would endanger the life or physical safety of any person or identifythe source of information or assistance. Given in confidence for lawenforcement of security purposes;

Contd….


h) Investigation - Information which would impede the process ofinvestigation or apprehension or prosecution of offenders;

i) Cabinet Papers - Cabinet Papers including records of deliberations of thecouncil of ministers, secretaries and other officers:

j) Privacy - Information which relates to personal information the disclosure ofwhich has no relationship to any public activity or interest, or which wouldcause unwarranted invasion of the privacy of the individual unless the centralpublic

Contd….


Powers of Public Authority

Section 8(2) – Notwithstanding anything in Official Secrets Act, 1923 nor any

of the exemptions permissible in accordance with sub-section(1), a public

authority may allow access to information, if public interest in disclosure

outweighs the harm to the protected interests.


Section 9: Infringement of copyright

Without prejudice to the provision of section 8, a Central

Public Information Officer or a State Public Information

Officer, as the case may be, may reject a request for

information where such a request for providing access

would involve an infringement of copyright subsisting in a

person other than the state.


Voluminous Information

Section 7(9) may be used to disallow voluminous information.

Protection: Section 21

No suit prosecution or other legal proceeding shall lie against any person for

anything which is done in good faith.

Overriding effect; Section 22

RTI Act shall have effect notwithstanding anything inconsistent therewith

contained in the Official Secrets Act, 1923 and any other law for the time

being in force or in any instrument having effect by virtue of any law other

than this Act.

Central Information Commission:

Central Information Commission is an autonomous body set up to inquire intocomplaints received from citizens. One can complain that he has been refused accessto information. He can also complain about how the public authority has handled hisrequest.

RTI Act 2005 – Penalty/Compensation Provisions

Penalties imposable by Information Commission on PIOor officer asked to assist PIO. For unreasonable delay – Rs.250 per day up to Rs. 25,000 For illegitimate refusal toaccept application, malafide denial, knowingly providingfalse information, destruction of information, etc. - up toRs. 25,000 fine Recommendation for departmental actionfor persistent or serious violations.

RTI Act 2005 – Penalty/Compensation

Provisions

Opportunity of hearing to be given.

Commission can grant compensation for loss suffered by applicant due to non-

provision of information.

Discernible Shifts

•Request

•Access to privileged few

•Opaque and unaccountable system

•Part of Right to Freedom of Speech &expression

Command

Open to Entire population

Transparency, open and accountablesystem

Part of constitutional guaranteesunder Fundamental Rules includingLife and Liberty

contd..

Discernible Shifts

•Legal entitlement

•Arbitrariness

•From Information

•Flow of communication Inward

•Records as Storage Driven

Tool to fight corruption & Arbitrary use of power

Ethical & participative democracy

To accountability & beyond

Outward (citizens)

Records as Retrieval Driven

Way Forward

Improve Records Management

Maximize disclosure

Prepare list of information which is in need/demand.

Demystification of Information

Way Forward

Improve Decision Making Process

Critically examine the existing operating procedures includingchannels of supervision and accountability

Review operating Manuals

Develop standards of performance/ norms

Set up Documentation / Learning Resource Centers

Public Awareness and Educational Programmes Sec 26Develop and organize educational programmes to advance

the understanding of the public, particularly thedisadvantaged, to exercise Right to Information.Government to: Encourage public authorities to participatein programmes; promote timely/effective dissemination ofaccurate info on activities. Train PIOs and produce relevanttraining materials - user guide and related matter.

THANKS

CONTRACT ENGINEERING DIVISION

Documents

Transcript of CONTRACT ENGINEERING DIVISION