Sri Ch. Venkateswara Rao , Railway Contractor, D.No. 1-837 ... · Schedule A: List of items of...

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Tender No.E-4/North/2017 Registered Post-Ack.-Due” भारत सरकार / Govt. of India रेऱ मंाऱय / Ministry of Railways दिण मय रेऱवे / South Central Railway वजयवाडा मंडऱ / Vijayawada Division मंडऱ कायााऱय/Divisional Office, काया शाखा/Works Branch, वजयवाडा/Vijayawada, सं .No.बीB/डबयू W.496/I/4/T.No.E-4/North/17/T.North दनाँक/Dt 12-.06-.2017 To Sri Ch. Venkateswara Rao , Railway Contractor, D.No. 1-837/2, Sundaraiah Nagar, M A D H I R A , Khammam Dist, Telangana State Sir, वषय/Sub:-Tender No.E-4/North/2017 for the work of “BZA-VSKP Section :Engagement of skilled artisan staff in SSE/W/RJY, SSE/W/NDD, SSE/W/SLO and SSE/W/TUI sections of DEN/North/BZA jurisdiction for a period of 12 months संदबा /Ref:- Your offer submitted on 08-03-2017 and validity of offer extended up to 05-07-2017. *** 1. The competent authority has accepted your Tender for the above work for a total value of Rs. 18,88,465/- (Rupees Eighteen lakhs eighty eight thousand four hundred and sixty five only) at the following rate. Rate : (+)27% (Plus Twenty seven percent only) on basic rate of NS item 2. The work should be completed within 12 ( Twelve) months from the date of issue of letter of acceptance with a maintenance period of NIL months. 3. The sum of Rs. 29,740/- paid on line vide IREPS Ref.ID Bank Trans ID No NE 184732 / IK00CTEHP6 dt. 08-03-17 towards EMD has been adjusted as part amount of the security deposit. The balance security deposit of Rs. 64,683/- shall be recovered at the rate of 10% of the bill amount till the full security deposit of Rs 94,423/- is recovered.. 4. In terms of Special conditions of contract, you shall furnish a Performance Guarantee amounting to 5% of the contract value i.e Rs 94,423/-- before signing of the agreement. The performance guarantee should be initially valid up to the stipulated date of completion plus 60 days beyond that. In terms of Special conditions of contract, you shall submit the Performance Guarantee (PG) within 30 (thirty) days from the date of issue of Letter of Acceptance (LOA). Extension of time for submission of PG beyond 30 (thirty) days and up to 60 days from the date of issue of LOA may be given by the Authority who is competent to sign the contract agreement. However, a penal interest of 15% per annum shall be charged for the delay beyond 30 (thirty) days, i.e. from 31 st day after the date of issue of LOA. In case of failure to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against the contract. The failed contractor shall be debarred from participating in re-tender for that work. Contd. 2

Transcript of Sri Ch. Venkateswara Rao , Railway Contractor, D.No. 1-837 ... · Schedule A: List of items of...

Page 1: Sri Ch. Venkateswara Rao , Railway Contractor, D.No. 1-837 ... · Schedule A: List of items of works that are not covered by South Central Railway Unified SSR 2010 S No Item No. Description

Tender No.E-4/North/2017

Registered Post-Ack.-Due”

भारत सरकार / Govt. of India

रेऱ मतं्राऱय / Ministry of Railways

दक्षिण मध्य रेऱवे / South Central Railway

ववजयवाडा मडंऱ / Vijayawada Division

मडंऱ कायााऱय/Divisional Office,

काया शाखा/Works Branch,

ववजयवाडा/Vijayawada,

स.ंNo.बीB/डबल्य ूW.496/I/4/T.No.E-4/North/17/T.North ददनाँक/Dt 12-.06-.2017

To

Sri Ch. Venkateswara Rao ,

Railway Contractor,

D.No. 1-837/2, Sundaraiah Nagar,

M A D H I R A, Khammam Dist, Telangana State

Sir,

ववषय/Sub:-Tender No.E-4/North/2017 for the work of “BZA-VSKP Section :Engagement of

skilled artisan staff in SSE/W/RJY, SSE/W/NDD, SSE/W/SLO and SSE/W/TUI

sections of DEN/North/BZA jurisdiction for a period of 12 months

सदंबा/Ref:- Your offer submitted on 08-03-2017 and validity of offer extended

up to 05-07-2017.

***

1. The competent authority has accepted your Tender for the above work for a total value of

Rs. 18,88,465/- (Rupees Eighteen lakhs eighty eight thousand four hundred and sixty five only) at the

following rate.

Rate : (+)27% (Plus Twenty seven percent only) on basic rate of NS item

2. The work should be completed within 12 ( Twelve) months from the date of issue of letter of

acceptance with a maintenance period of NIL months.

3. The sum of Rs. 29,740/- paid on line vide IREPS Ref.ID Bank Trans ID No NE 184732 / IK00CTEHP6

dt. 08-03-17 towards EMD has been adjusted as part amount of the security deposit. The balance

security deposit of Rs. 64,683/- shall be recovered at the rate of 10% of the bill amount till the full

security deposit of Rs 94,423/- is recovered..

4. In terms of Special conditions of contract, you shall furnish a Performance Guarantee amounting to 5%

of the contract value i.e Rs 94,423/-- before signing of the agreement. The performance guarantee

should be initially valid up to the stipulated date of completion plus 60 days beyond that. In terms of

Special conditions of contract, you shall submit the Performance Guarantee (PG) within 30 (thirty) days

from the date of issue of Letter of Acceptance (LOA). Extension of time for submission of PG beyond

30 (thirty) days and up to 60 days from the date of issue of LOA may be given by the Authority who is

competent to sign the contract agreement. However, a penal interest of 15% per annum shall be charged

for the delay beyond 30 (thirty) days, i.e. from 31st day after the date of issue of LOA. In case of failure

to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be

terminated duly forfeiting EMD and other dues, if any payable against the contract. The failed

contractor shall be debarred from participating in re-tender for that work.

Contd. 2

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5. Until a formal agreement is executed, acceptance of the Tender shall constitute a binding contract

between you and the administration.

6. You have to abide by the Contract Labour (Regulations and Abolition Act 1970) and rules, regulations

and amendments thereto that may be followed from time to time are binding on you in respect of this

contract. You have to submit the application in the prescribed form (Form-V) in triplicate for license

under Contract labour (Regulation and Abolition) Act for 20 or more workers and under BOCW

Act for less than 20 Workers together with the demand draft towards security deposit and license fee to

the undersigned to forward the same to the concerned Licensing Officer for issue of the license

irrespective of the number of labour employed for the work. The work should not be executed without a

valid labour license. You are advised to pay Minimum Wages as per Minimum Wages Act 1948, in

case of any failure action will be initiated accordingly.

7. Failure to start the work within ten days, the contractor is liable for penal action as per clause 62 of the

General conditions of contract.

Encl: 1) Tender schedule with special conditions,

2) Copy of Performance Guarantee.

आपका / Yours faithfully,

Sr. Divisional Engineer/North

द.म.रेऱवे/S.C.Railway,

ववजयवाडा/Vijayawada

For and on behalf of President of India Copy to: Sr.DFM/BZA for information.

Copy to: ADEN/, RJY, SLO & Tuni for information and necessary action..

Copy to: SSEs/Works/ NDD, RJY, SLO, Tuni for information and necessary action.

Copy to SSE(Drg)/Bldg & OS/WA-North for information.

Copy to: Labour Enforcement Officer (Central), Prakash Nagar, Rajahmundry, East Godavari District, for kind

information.

(TC ADEN/Track/BZA , ADFM/II/BZA, , AA: Sr.DEN/North/BZA)

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Tender No. E-4/North/2017

Name of Work : BZA-VSKP Section:- Engagement of skilled artisan staff in SSE/W/RJY, SSE/W/NDD, SSE/W/SLO and SSE/W/TUI sections of DEN/North/BZA jurisdiction for a period of 12 months

Similar nature of work :- Not Applicable

Approx. Value : Rs. 18,88,465/-

Estimate Sanctioned No. & date Allocation Amount

B/W.405/I/254/Plg dt: 28-11-2016 04-420-32 Rs 7,43,490

11-511-32 Rs 7,43,490

Completion Period 12 (Twelve) months

Maintenance Period NIL months

Name of the Tenderer/Contractor:-

Sri Ch. Venkateswara Rao , D.No. 1-837/2, Sundaraiah Nagar, M A D H I R A, Khammam Dist, Telangana State

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

Schedule A : List of items of works that are not covered by South Central Railway Unified SSR 2010

S No Item No. Description of work Qty. of ADEN Total Qty Rate Unit.

Amount in Rs RJY SLO TUNI

1 NS-2010-109

Maintenance, repairs / replacement in respect of 1) Masonry works : Brick work, concreting, grouting, plastering, pointing, flooring/dado work, open drainage works, roof leakages etc. 2) Carpentry Works : Wood work, doors & windows, cupboards, frames, shutters fittings & fastenings, rafters, reapers, wooden furniture, roof shuttering etc. 3) Plumbing Works : Water and E.W. pipe lines, valves, sanitary fittings, down water pipes of single / Multi storied quarters, water tanks etc. by supplying a team of 2 members i.e one skilled and one unskilled for each category of mason works, carpentry works, plumbing works with all contractors tools, transportation, lead & lift, equipment and scaffolding arrangements for works up to G+6 of multi storied structures, safety equipment, maintenance of tools and other equipment etc. Material required for repair / replacement/ other petty repair works will be supplied by the railways at free of cost at work spot and as directed by the engineer - in - charge

924 624 432 1980 751.00 per each team per day

1486980

Necessary power supply & water will be borne by the railways. The rate is for any one team i.e 1. Masonry or 2. Carpentry or 3. Plumbing work. RJY: 25Daysx2teamsx12months = 600 3daysx1teamx12months = 36 (for emergency works) NDD: 12daysx2teamsx12months = 288 SLO: 25daysx2teamsx12months = 600 2daysx1teamx12months = 24 (for emegency works) TUI: 25daysx1teamx12months = 300 11daysx1teamx12months = 132. Note: In the above, 1team for 25daysx12months should be deployed for bridge works. Balance should be deployed in the section.

Note: 1) Each member of team should report to SSE/Works - in charge at or before 9.00 hrs on required working days as required by Rlys. 2). The contractor should attend the maintenance, repair / replacement works with number of labour specified - one team of 2 nos. for each category of work as directed by the engineer-in-charge. 3). One supervisor to be engaged by the contractor to take the instructions 4). A day to day register shall be maintained for this purpose and the same should be produced to the SSE/Works-in-charge whenever required and produce the same for making payment. 5). In any complaints/deficiency noticed in the working of labour, they should be replaced with new person as per the direction of the engineer-in-charge. One day maintenance cost (per team per day) will be imposed as penalty for the deficiency in working by the contractor's labourers. 6). The contractor should comply with existing laws and acts of Government of India and the State Government law and acts in engagement and working with labour. 7). Mobile phone communication facility should be provided by the contractor to the each team for communication with departmental officials for instructions.

Rate Accepted in “Figures” (+)27%

Rate Accepted in “Words Plus Twenty seven percent only

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GENERAL CONDITIONS

1. The tenders are required to quote a uniform percentage rate above or below or at par of the items

included in the Sch- A separately both in figures and in words. If there is variation between the rates

quoted in figures and words, the rate quoted in words will be taken as correct.

2. The quantities furnished in the schedule are approximate and the work will be carried out as directed

by the Engineer-in-charge. Payment will be made for the quantities actually executed.

3. The rates quoted by the contractor will be inclusive of the cost of all the materials, labour, tools &

Plants etc., complete including transportation of the same at his own cost including loading and

unloading.

4. The Railway reserves the right to reject or alter any part of the work executed by the contractor,

which in the judgment of Railway does not comply with the requirements of the specifications. The

decision of the Railway shall be final and conclusive for all purposes.

5. All the works executed by the tenderer/contractor covered in USSR-2010 should comply with Indian

Railways Unified Specifications for Works & Materials-2010 (Vol-I & II).

6. All the works executed by the tenderer/contractor shall in accordance with Indian Railways Works

Manual-2000 and Code for the Engineering department-2012.

7. All the works executed by the tenderer/contractor shall be followed/complied in accordance with

Railway Board/RDSO/HQ guidelines/circulars/correction slips for works & materials and Engineering

standing orders issued by Principal Chief Engineer, S.C.Railway from time to time.

8. Vehicles and equipment of contractors can be drafted by Railway Administration in case of

accidents/natural calamities involving human lives.

9. Conservancy charges as applicable and as modified from time to time will be recovered from

Contractor’s running bills.

10. The Railway administration will not be responsible for the safety of contractor’s for this work.

11. The work shall be completed within 12 months from the date of issue of acceptance letter.

SPECIAL CONDITIONS.

1) As a principal employer, the executive Department is required to maintain Registers, Records and

collection of statistics as per Rule 71 to 83 under chapter VII of the Contract Labour (R&A) Central

Rules 1971. 2) It should be ensured that the provisions/conditions stipulated in various enactments such as Child

labour (R&A) Act, Payment of Wages Act, Minimum Wages Act etc., and Railway Boards instructions communicated vide le. No. E(LL) 2005AT/CNR/16, dt.10.11.2005 and 29.08.2006 are followed

scrupulously duly incorporating in the agreement contract. 3) The payment to the contract labourer will be provided through bank/cheque.

4) Identity cards will be issued to all contract workers.

5) Deduction of PF from the payment made to the contact labour will be ensured. 6) Deduction of ESI from the payment made to the contract labour will be ensured.

7) The contractor’s labour (ie., each team of 2 members) should take the material at SSE/Works depot to

work spot as directed by the Engineer-in-charge. 8) After attending the repairs, contractor’s labour should hand over the remaining material at SSE/Works

depot.

9) The contactor’s labour should complete the repair works allotted per day as directed by SSE/Works in

charge.

10) 10 The labour should work irrespective of no. of floors as directed by the engineer-in-charge.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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SPECIAL CONDITIONS OF CONTRACT

1 The rates include all lead and if the materials obtained by rail all freight charges including

loading charges.

2 Sales tax, Royalties and Octroi duties, if any, that may be payable under Provincial

Government Sales Tax Act or Local Bodies Act or rules on any of the material that may be used

or supplied by the contractor will be payable by the contractor. The Railway will neither pay the

taxes or duties nor be bound to compensate the contractor for any amounts paid by him by way

of these taxes or duties.

Sales Tax at 4% on the materials portion of the contract will be deducted from each on account

bill where identifiable. Where the labour and material portion is not clearly identifiable, the

labour element shall be taken as 30%. On the balance 70% of the value of the work, 4% shall be

deducted pro-rata from each “on account bill” towards Sales tax.

Seigniorage charges recoverable from bills:-

Seigniorage charges for supply of earth, mooram, sand and other minerals as fixed by the State

Government and payable to them as revised from time to time during the currency of contract

will be recovered by Railway from the contractors “on account” and “final bills” and remitted to

the state government. The rates quoted by the Tenderer shall be inclusive of these charges.

Claims regarding revision of seigniorage charges and consequent enhancement of the accepted

rate will not be entertained. However, no seigniorage charges / fee shall be recovered from the

bills of the contractor, if the contractor produces documentary evidence e.g. “Transit Passes”

issued by State Govt. Officials in token of having paid seigniorage fee. In such cases, the

genuineness of such documentary evidence produced along with proof of payment of

seigniorage charges, shall be got verified by the Railway from the concerned Mining and

Geology Dept

3 WATER:- A charge of One percent will be made by the Railway for the supply by the

Railway of piped water from existing pipe lines and calculated on the amount of all items of

work (SSR/NS items) appearing in the bills payable to the contractor in respect of which work

such water has been issued to the Contractor and such charges should be deducted from sums

due or payable by the Railway to the Contractor from time to time.

4 In the event of water having to be brought by the Railway to the site of the work in traveling

tanks, the actual freight at Public Tariff rate and all other charges incurred therein including any

demurrage that may be levied shall be payable by the Contractor and deducted from sums due or

payable by the Railways to the Contractor from time to time.

In addition to the charges of one percent referred to above, if additional pipe lines to those

already existing are called for by the contractor, the cost of the same and all charges incurred by

the Railway in their laying including supervision charges will be paid by the contractor or the

contractor provides and lay his own piping at the discretion of Divisional Engineer.

5 The Railway does not guarantee work under each items of the Master Schedule. For example if

a gate-lodge or gang huts are to be built between stations and the work order issued to the

sectional contractors additional payment on account of lead or freight charges for the materials

that may have to be brought by rail or by road, will not be admissible.

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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6 If there arises any discrepancy between the printed Unified Standard schedule of Rates 2010

as amended by addendum and corrigendum slips issued from time to time upto date and the

schedule attached to the Tender pertaining to this work, the former shall be treated as

authentative and binding in all purposes shall prevail.

7 Rubble masonry shall be first sum of Railways Specification No 503 according to South Central

Railway Specification for materials and works. contractors attention is particularly invited to

dressing of stone as laid down in the Railway‟s specification.

8 The Special conditions supplemented to the conditions of Tender and contracts the General

conditions of contract and the notes appearing under the relevant chapter and sub chapters of the

Unified Standard schedule of Rates 2010 should be considered as part of the contract papers

where the provisions of these conditions are at variance with General Conditions of Contract

these special conditions shall prevail.

9 Performance Guarantee (P.G.):- a. The successful bidder shall have to submit a Performance Guarantee (PG) within 30 (thirty)

days from the date of issue of Letter of Acceptance (Excluding the date of issue of LOA;Ref-

CE/Works/SC letter No.W.148/P/GCC/Vol.II dt.30-05-2014). Extension of time for submission

of PG beyond 30(thirty) days and upto 60 days from the date of issue of LOA may be given by

the Authority who is competent to sign the contract agreement. However, a penal interest of

15% per annum shall be charged for the delay beyond 30 (thirty) days, ie., from 31st day after

the date of issue of LOA(Excluding the date of issue of LOA;Ref-CE/Works/SC letter

No.W.148/P/GCC/Vol.II dt.30-05-2014). In case the contractor fails to submit the requisite PG

even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting

EMD and other dues, if any payable against that contract. The failed contractor shall be debarred

from participating in re-tender for that work.

b. The successful bidder shall submit a Performance Guarantee (PG) in any of the following forms,

amounting to 5% of the contract value:-

(i) A deposit of Cash,

(ii) Irrevocable Bank Guarantee,

(iii) Government Securities including State Loan Bonds at 5 percent below the market

value,

(iv) Deposit receipts, Pay orders, Demand Drafts and Guarantee Bonds. These forms

of Performance Guarantee could be either of the State Bank of India or of any of

the Nationalized Banks;

(v) Guarantee Bonds executed or Deposits Receipts tendered by all Scheduled Banks;

(vi) A Deposit in the Post Office Saving Bank;

(vii) A Deposit in the National Savings Certificates;

(viii) Twelve years National Defence Certificates;

(ix) Ten years Defence Deposits;

(x) National Defence Bonds; and

(xi) Unit Trust Certificates at 5 percent below market value or at the face value

whichever is less.

Also FDR in favour of Senior Divisional Finance Manager, S.C.Railway,

Vijayawada (free from any encumbrance) may be accepted.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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1.0 The Performance Guarantee shall be submitted by the successful bidder after the Letter Of

Acceptance (LOA) has been issued, but before signing of the contract agreement. This P.G.

shall be initially valid up to the stipulated date of completion plus 60 days beyond that. In case,

the time for completion of work gets extended, the contractor shall get the validity of P.G.

extended to cover such extended time for completion of work plus 60 days.

1.1 The value of PG to be submitted by the contractor will not change for variation upto 25%(either

increase or decrease). In case during the course of execution, value of the contract increases by

more than 25% of the original contract value, an additional Performance Guarantee amounting

to 5%(five percent) for the excess value over the original contract value should be deposited by

the Contractor.

1.2 On the other hand, if the value of Contract decreases by more than 25% of the original contract

value, Performance Guarantee amounting to 5% (five percent) of the decrease in the contract

value shall be returned to the contractor. The PG amount in excess of required PG for

decreased contract value , available with Railways, shall be returned to contractor as per their

request duly safeguarding the interest of railways.(Ref: Railway Board Letter No.2016/CE-

I/CT/1/PG dt.27-06-2016 communicated vide PCE /SC Letter No.W.148/P/G.C.C./Vol.II

dt.11-07-2016)

The procedure to release “Excess PG available with Railways with respect to required PG for

decreased contract value” will be as under:

Contractor shall submit his

request to release current PG, along with submission of a revised PG of requisite amount as

notified/communicated by Railways, in any of the forms as per clause 16(4)except in cases

where earlier PG has been submitted either in Cash or Demand draft.

Railways shall duly verify

and confirm the genuinity of revised PG as per concurrent guidelines.

After Confirmation regarding

genuinity of revised PG of requisite value, earlier PG can be released.

In cases where current PG is

either in Cash or Demand draft, the „Excess PG available with Railways with respect to

required PG for decreased contract value‟ shall be released duly considering the request of

contractor.

1.3 The Performance Guarantee (PG) shall be released after physical completion of the work

based on the „Completion Certificate‟ issued by the competent authority stating that the

contractor has completed the work in all respects satisfactorily. The security deposit,

however, shall be released only after the expiry of the maintenance period and after passing

the final bill based on „No Claim Certificate’ from the contractor.

1.4 Whenever the contract is rescinded, the security deposit shall be forfeited and the

Performance Guarantee shall be encashed. The balance work shall be got done independently

without risk and cost of the failed contractor. The failed contractor shall be debarred from

participating in the tender for executing the balance work. If the failed contractor is a JV or a

partnership firm, then every member/ partner of such a firm shall be debarred from

participating in the tender for the balance work either in his / her individual capacity or as a

partner of any other JV / partnership firm.

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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1.5 The Engineer shall not make a claim under the Performance Guarantee except for amounts to

which the President of India is entitled under the contract (not withstanding and / or without

prejudice to any other provisions in the contract agreement) and this shall be in the event of:

i) Failure of the contractor to extend the validity of the Performance Guarantee as described

herein above, in which event the Engineer may claim the full amount of the Performance

Guarantee.

ii) Failure of the contractor to pay President of India any amount due, either as agreed by the

contractor or determined under any of the Clauses / Conditions of the agreement, within 30

days of the service of notice to this effect by Engineer.

iii) The contract being determined or rescinded under provision of the GCC the Performance

Guarantee shall be forfeited in full and shall be absolutely at the disposal of the President of

India.

10 Security Deposit:-

The scale of Security Deposit that is to be recovered from the contractor shall be as follows.

a. Security Deposit should be 5% of the contract value.

b. The rate of recovery will be at the rate of 10% of the bill amount till the full Security

Deposit is recovered.

c. Security Deposit will be recovered only from the running bills of the contract and no

other mode of collecting SD such as SD in the form of instruments like Bank

Guarantee, Fixed Deposit Receipt etc., shall be accepted towards Security deposit.

d. Conversion of Security Deposit into FDR after recovery of full stipulated SD (FA&

CAO/SC letter No.AFX/EMD/Policy/ Vol.I dt.26.8.2010 circulated vide PCE/SC lr.

No.W.148/ SCRCA dt.30.9..2010):- If the contractor so desires, the cash deposits in

the form of security deposit may be allowed to be converted into FDRs(in favour of

respective Accounts Officers and on account of contractor), after full recovery, at the

discretion of the Railway, duly collecting necessary charges of conversion by the

Railway Administration.

The security deposit shall be released only after the expiry of the maintenance

period and after passing the final bill based on „No Claim Certificate‟.

After the work is physically completed, security deposit recovered from the

running bills of a contractor can be returned to him if he so desires, in lieu of

FDR/irrevocable bank guarantee for equivalent amount to be submitted by him.

In case of contracts of value Rs.50 crores and above, irrevocable bank guarantee can

also be accepted as a mode of obtaining security deposit.

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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11 REVISED COMPREHENSIVE CLAUSE 46A OF GCC– PRICE VARIATION CLAUSE:

As per Railway Board Letter No.2007/CE-CT/18/Pt.19 dt.14.12.2012-Price Variation Clause

shall be applicable only for contracts of value ( Contract Agreement value) Rs.50 lakh and

more, irrespective of the contract completion period and Addendum & Corrigendum Slip

(ACS) No.6 to GCC, July 2013: Amendment to Clause 46A.7 (a sub-clause of PVC) to GCC

issued by Railway Board vide Lr.No.2007/CE-I/CT/18/Pt.13 dt.02/05/2014 communicated vide

PCE/SC Lr. No .W.148/P/G.C.C./Vol.II dt.05/06/2014 and Addendum & Corrigendum Slip

(ACS) No.2 to GCC, July 2014: Amendment to Clause 46A.1(a sub-clause of PVC) to GCC

issued by Railway Board vide Lr.No.2007/CE-I/CT/18/Pt.19(FTS8798) dt.15-10-2014

communicated vide PCE/SC Lr.No.W.148/P/G.C.C./Vol.II dt.12-12-2014.

Clause 46A-Price Variation clause:

46A.1. Price Variation clause shall be applicable only for contracts of value as prescribed by the

Ministry of Railways through instructions/circulars issued from time to time and irrespective of

the contract completion period. Variation in quantities shall not be taken into account for

applicability of PVC in the contract. Materials supplied free of cost by Railway to the

contractors shall fall outside the purview of Price Variation clause. If, in any case, accepted

offer includes some specific payment to be made to consultants or some materials supplied by

Railway free or at fixed rate, such payments shall be excluded from the gross value of the work

for the purpose of payment/recovery of price variation.

Applicability of PVC based on original contract value is illustrated as under-

“If estimated value of a tender (N.I.T. value) is Rs.55 lakhs; but value of the contract as per

Contract Agreement is Rs.45 lakh, then PVC shall not apply, even if the actual final value is

Rs.50 lakh or more due to variation in quantities during execution of the contract. Thus,

variation in quantities after signing of Contract Agreement is not relevant for deciding whether

PVC is applicable to a contract or not.”

46A.2. The Base Month for „Price Variation clause‟ shall be taken as month of opening of tender

including extensions. If any, unless otherwise stated elsewhere. The quarter for applicability of

PVC shall commence from the month following the month of opening of tender. The Price

Variation shall be based on the average Price Index of the quarter under consideration.

46A.3. Rates accepted by Railway Administration shall hold good till completion of work and no

additional individual claim shall be admissible on account of fluctuations in market rates,

increase in taxes/any other levies/tolls etc., except that payment/recovery for overall market

situation shall be made as per Price Variation Clause given hereunder.

46A.4. Adjustment for variation in prices of material, labour, fuel, explosives detonators, steel,

concreting, ferrous, non-ferrous, insulators, zinc and cement shall be determined in the manner

prescribed.

46A.5. Components of various items in a contract on which variation in prices be admissible , shall be

Material, Labour, Fuel, Explosives, Detonators, Steel, Cement, concreting, Ferrous, Non-

ferrous, Insulator, Zinc, erection etc., However, for fixed components, no price variation shall

be admissible.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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46A.6. The percentages of labour component, material component, fuel component etc., in various

types of Engineering Works shall be as under:

Component Percentage Component Percentage

A) Earthwork contracts:

Labour component 50% Other material

components

15%

Fuel component 20% Fixed

component*

15%

A) Ballast and Quarry Products contracts

Labour component 55% Other material

components

15%

Fuel component 15% Fixed

component*

15%

B) Tunnelling Contracts

Labour component 45% Detonators

component

5%

Fuel component 15% Other material

components

5%

Explosive

component

15% Fixed

component*

15%

C) Other Works Contracts

Labour component 30% Fuel component 15%

Material component 40% Fixed

component*

15%

*it shall not be considered for any price variation.

46A.7. The Amount of variation in prices in several components (labour, material etc., ) shall be

worked out by the following formulae:

i) L= W x (LQ-LB) x LC

LB 100

ii) M = W x (MQ-MB) x MC

MB 100

iii) F = W x (FQ-FB) x FC

FB 100

iv) E = W x (EQ-EB) x EC

EB 100

v) D = W x (DQ-DB) x DC

DB 100

vi) S = SW x (SQ-SB)

vii) C = CV x (CQ-CB)/CB

For Railway Electrification works: viii) T = {(CS – CO) /CO X 0.4136} X Tc

ix) R = { (RT – RO) / RO + ( ZT - ZO ) / ZO x 0.06 } x Rc

x) N = { (PT – PO ) / PO } x Nc

xi) Z = { ( ZT – ZO ) / ZO } x Zc

xii) I = { ( IT – IO ) / IT } x 85

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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Where

L Amount of price variation in labour

M Amount of price variation in Materials

F Amount of price variation in fuel

E Amount of price variation in Explosives

D Amount of price variation in Detonators

S Amount of price variation in Steel

C Amount of price variation in Cement

T Amount of price variation in Concreting

R Amount of price variation in Ferrous Items

N Amount of price variation in Non-Ferrous Items

Z Amount of price variation in Zinc

I Amount of price variation in Insulator

LC % of Labour component

MC % of Material component

FC % of Fuel component.

EC % of Explosive component

DC % of Detonators component

Tc % of Concreting Component

Rc % of Ferrous Component

Nc % of Non-Ferrous Component

Zc % of Zinc Component

W Gross value of work done by contractor as per on-account bill(s), excluding cost of materials

supplied by Railway at fixed price, minus the price values of cement and steel. This will also

exclude specific payment, if any, to be made to the consultants engaged by contractors (such

payment shall be indicated in the contractor‟s offer)

LB Consumer Price Index Number for Industrial Workers- All India- Published in RBI Bulletin

for the base period.

LQ Consumer Price Index Number for Industrial Workers- All India-Published in RBI Bulletin

for the average price index of the 3 months of the quarter under consideration.

MB Index Number of Wholesale Prices- By Groups and sub-Groups-All commodities- as

published in the RBI Bulletin for the base period.

MQ Index Number of Wholesale Prices- By Groups and Sub-groups-All commodities- as

published in the RBI Bulletin for the average Price index of the 3 months of the quarter under

consideration.

FB Index Number of Wholesale Prices- By Groups and sub-Groups for Fuel and Power as

published in the RBI Bulletin for the base period.

FQ Index Number of Wholesale Prices- By groups and sub-groups for Fuel and Power as

published in the RBI Bulletin for the average price index of the 3 months of the quarter under

consideration.

EB Cost of explosives as fixed by DGS&D in the relevant rate contract of the firm from whom

purchases of explosives are made by the contractor for the base period.

EQ Cost of explosives as fixed by DGS&D in the relevant rate contract of the firm from whom

purchases of explosives are made by the contractor for the average price index of the 3

months of the quarter under consideration.

DB Cost of detonators as fixed by DGS&D in the relevant rate contract of the firm from whom

purchases of detonators are made by the contractor for the base period.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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DQ Cost of detonators as fixed by DGS&D in the relevant rate contract of the firm from whom

purchases of detonators are made by the contractor for the average price index of the 3

months of the quarter under consideration.

SW Weight of steel in tonne supplied by the contractor as per the „on-account‟ bill for the month

under consideration

SQ SAILs (Steel Authority of India Limited) ex-works price plus Excise Duty thereof (In rupees

per tone) for the relevant category of steel supplied by the contractor as prevailing on the first

day of the month in which the steel was purchased by the contractor (or) as prevailing on the

first day of the month in which steel was brought to the site by the contractor whichever is

lower.

SB SAILs ex-works price plus Excise Duty thereof ( in Rs. Per tonne) for the relevant category of

steel supplied by the contractor as prevailing on the first day of the month in which the tender

was opened.

CV Value of cement supplied by contractor as per „on account‟ bill in the quarter under

consideration

CB Index no. of Wholesale Price of sub-group (of Cement & Lime) as published in RBI Bulletin

for the base period.

CQ Index no. of Wholesale Price of sub-group (of Cement & Lime) as published in RBI Bulletin

for the average price index of the 3 months of the quarter under consideration.

Cs RBI Wholesale Price index for cement and lime for the month which is six months prior to

date of casting of foundation.

Co RBI Wholesale Price index for cement and lime for the month which is one month prior to

date of opening of tender.

RT IEEMA Price index for Iron & Steel for the month which is two months prior to date of

inspection of material.

Ro IEEMA Price index for Iron & Steel for the month which is one month prior to date of

opening of tender.

PT IEEMA Price for Copper wire bar for the month which is two months prior to date of

inspection of material.

Po IEEMA Price for Copper wire bar for the month which is one month prior to date of opening

of tender.

ZT IEEMA Price for Zinc for the month which is two months prior to date of inspection of

material.

Zo IEEMA Price for Zinc for the month which is one month prior to date of opening of tender.

IT RBI Wholesale Price index for structural clay products for the month which is two months

prior to date of inspection of material.

Io RBI Wholesale Price index for structural clay products for the month which is one month

prior to date of opening of tender.

46A,8. The demands for escalation of cost shall be allowed on the basis of provisional indices made

available by Reserve Bank of India. Any adjustment needed to be done based on the finally

published indices shall be made as and when they became available.

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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46A.9. Relevant categories of steel for the purpose of operating Price Variation formula, as mentioned

in this caluse, based on Sails Ex-Works Price Plus Excise Duty thereof, shall be as under:

Sl.

No.

Category of Steel supplied in Railway

work

Category of Steel produced by SAIL Whose

Ex-works Price Plus Excise Duty Would be

Adopted to Determine Price Variation.

1. Reinforcement bars and other rounds TMT 8mm IS 1786 Fe 415/Fe 500

2. All types and sizes of angles Angle 65x65x6mm IS 2062 E250A SK

3. All types and sizes of plates PM plates above 10-20mm IS 2062 E250A

SK

4. All Types and sizes of channels and

joists Channels 200x75mm IS 2062 E250A SK

5. Any other section of steel not covered

in the above categories and excluding

HTS

Average of price for the 3 categories covered

under SL 1, 2, & 3 above.

46A.10. Price variation During Extended Period of contract.

The price adjustment as worked out above, ie., either increase or decrease shall be applicable

upto the stipulated date of completion of work including the extended period of completion

where such extension has been granted under Clause 17-A Of the General Conditions of

Contract. However, where extension of time has been granted due to contractors failure under

Clause-17B of the General conditions of Contract, price adjustments shall be done as follows:

a) In case the indices increase above the indices applicable to the last month of original

completion period or the extended period under clause 17-A, the price adjustment for the

period of extension granted under Clause 17-B shall be limited to the amount payable as

per the Indices applicable to the last month of the original completion period or the

extended period under clause 17-A of the General conditions of contract; as the case may

be.

b) In case the indices fall below the indices applicable to the last month of original/extended

period of completion under caluse 17-A, as the case may be; then the lower indices shall be

adopted for the price adjustment for the period of extension under caluse 17-B of the

General Conditions of Contract.

12 DEDUCTION OF INCOME TAX AT SOURCE

In terms of new Section 194-C inserted by the Finance Act 1972 , in the income tax Act 1961

the Railway shall at the time of arranging payments to the contractor and/or sub contractor(in

the case of sub contractor only when the Railway is responsible for payment of consideration

to him under the contract) for carrying out any work (including supply of labour for carrying

out any work) under the contract be entitled to deduct income tax at source on Income

comprised in the sum of such payments.The deduction towards income tax to be made at

source from the payments due to non-residents shall continue to be governed by Section 195 of

the Income Tax Act 1961.

No Income Tax will be deducted by the Railway on payments made for supply of materials

where such value of supply portion is distinct and ascertainable such as supply of Timber, tiles,

bricks, ballast including track/ballast etc. The deductions towards Income Tax to be made at

source from the payment due to non/residents shall continue to be governed by Section 195 of

the Income Tax Act 1961.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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13 LIABILITY OF CONTRACTOR(S) - ANY DAMAGE SUSTAINED BY RAILWAYS

DURING ACCIDENTS ETC., CAUSED DUE TO CONTRACTOR(S) FAILURES,

FAULT OR NEGLIGENCE.

Railway will post an Engineer-in-charge who may be SSE/SE/JE or Supervisor of any grade at

site for Technical Supervision of the work. This Engineer-in-charge will be responsible for

safety of the traffic. The work shall be executed by the contractor in a workman like manner to

the satisfaction of the Engineer-in-charge. The Contractor and his labour shall be guided by the

instructions of the Engineer-in-Charge. In the event of any accident occurring at the work site

and it is established during the departmental enquiry by the Railway or by Statutory enquiry of

CRS, that the accident occurred wholly or partly due to any act tantamounting to negligence on

the part of the contractor or his labour in not adhering to the instructions of the engineer-in-

charge, the contractor shall render himself liable for damages and also legal prosecution if loss

of life is involved.

14 Implementation of – the Building and other construction Workers (RECS) Act, 1996 and

the Building and other Construction Workers Welfare Cess Act, 1996 in Railway

Contracts.

“The Tenderer for carrying out any construction work in Andhra Pradesh (name of State) must get

themselves registered from the Registering Officer under Section-7 of the Building and other

Construction Workers Act, 1996 and rules made thereto by the Andhra Pradesh (name of State)

Government and submit certificate of registration issued from the Registering Officer of the Andhra

Pradesh (name of the State) Government (Labour Department). For enactment of this act, the

Tenderer shall be required to pay cess @ 1% of cost of construction work to be deducted from each

bill, Cost of material shall be outside the purview of cess, when supplied under a separate schedule

item.”

ANNEXURE- “III”

WORKS CONTRACT CLAUSE-13

1. In case cement, Steel, AC sheet with or without accessories, GI sheets with or without

accessories, glasses or any other materials/items are issued to the contractor(s)either free of

cost or on cost to be recovered for use on the work as stipulated in the agreement the supply

thereof shall be made in stages depending on the progress of the work, limited to the

quantity /quantities computed by the Railway, according to the prescribed specification and

approved drawings as per agreement.

The materials supplied should conform to Railway‟s Specification in all respects should be

in accordance with approved sample.All such materials supplied to the contractor(s) for the

work either free of charge or on payment as the case may be will be issued to contractor(s) at

the Railway depot/godown/goods shed and will have to be transported by the contractor to

the site of work at his cost. All such materials shall be used by the Contractor for the work in

such quantities as are indicated in the schedule or in the relevant specifications or drawings

or as approved by the Engineer, whose decision thereon shall be final. Wastage or damages

of such materials in any manner shall be totally avoided. The contractor(s) shall be liable to

the accountal for all such materials issued by Railway either free of cost or on payment

excluding the permissible wastage which incase of steel materials should not in any case

exceed 1% of the total quantity required for the work as per the approved drawings. No

wastage under other items is permissible. Short lengths of rods should also be utilized to the

extent possible by overlapping joints.

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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The Cement, Steel, A.C.Sheets with or without accessories, G.I sheets with or without

accessories glasses or any other materials issued in excess of the requirement(s) as

above, shall be returned in perfectly good condition by the contractor(s) to the Railway

at the Railway depot/Godown/Goods shed at________immediately after completion or

termination of the contract. If the contractor fails to return the said materials then the

cost of such materials issued in excess of the requirement as computed by Railway

according to the specification and approved drawings will be recovered from the

contractor(s) at twice the prevailing procurement cost at the time of last issue viz., 2 x

(purchases price +5% freight only). This will be without prejudice to the right of

Railway to take action against the contractors under the condition of the contract for not

doing/completing the work according to the prescribed specification and approved

drawings. If it is discovered that the quantity of cement, steel or any other material used

is less than the quantity computed by the Railway, according to specifications and

approved drawings the cost of materials not returned will be recovered at the same rates

as applicable to excess issue of materials, indicated in the preceding para.

2. It shall be the responsibility of the contractor to keep in safe custody any Railway material

plant or equipment issued for the work. The contractor shall at his own expense provide

suitable temporary shed/sheds for this purpose on the Railway land made available by the

Railway free of rent and shall remove the shed/sheds when no longer required in terms of

clause 30 of General conditions of contract.

3. If due to any reason the Railway is not in a position to make available the Railway land the

Railway Engineer-in-charge of the work may permit the contractor to erect at his own cost

shed/sheds or secure private accommodation outside the Railway premises. In such a case

the contractor may be permitted to take the Railway material required for the works outside

the railway premises and to store in the Shed so erected or private accommodation so

secured. It shall be the responsibility of the contractor to keep the railway material in safe

custody and the same should be kept entire separate from the contractors‟ material and the

Railway shall have liberty to inspect the same from time to time.

4. The code Nos. description and rates given in the schedule are based on the printed USSR - 2010, of

S.C.Railway. Any discrepancy noticed during the execution of the work, in the working rates

quantity of cement etc. should be rectified by reference to the printed schedule, which shall be

treated as authoritative and binding on the contract. The relevant notes applicable to the respective

sub chapters will apply to the items of the Tender schedule and should be considered as having been

incorporated in the contract agreement and binding on the Contractor.

5. For any other items not specially shown in the schedule of rates appended to the tender document,

the Divisional/Executive Engineer will offer rates as shown for the_________ zone in the South

central railway printed USSR - 2010, of S.C.Railway subject to the same percentage adjustment

accepted in the contract being applicable to the additional items.

6. Railway shall not supply from its own quota to the contractors controlled or imported commodities.

Assistance will, however given by recommending to appropriate authorities. Contractor applications

for issue of import licenses and release of controlled commodities if the Engineer is satisfied that

this material is actually required by contractor for carrying out the work and is not available in the

country.

7. VARIATION OF COSTS. Price variation clause is not applicable for contract Agreement value

upto Rs.50 lakhs. Time is the essence of contract.

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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8. (a)PERIOD OF COMPLETION: The Railway expects that a resourceful and experienced contractor

should be able to complete the work in all respects within the period as specified in the Tender

Notice and in the Schedule where items of work are furnished from the date of letter of

acceptance of the Tender.

(b) Extension of time of completion will be governed by clause 17 of General Conditions of

Contract. However, while granting the extension of time under clause 17(B) of GCC, a token

penalty as deemed fit based on the circumstances of the case can be imposed on the contractor

without prejudice to other rights of Railway Administration as provided under GCC.

9. MAINTENANCE PERIOD: The work shall be maintained after completion for a period as specified

in the Schedule where items of work are furnished by the contractor and he shall make good any

defects, imperfections, shrinkages or faults which may appear at his own cost.

10. It is HEREBY AGREED that it shall be the duty of the contractor to keep himself informed of all

corrections, and amendments of the said General conditions of contract made up to the date of the

execution of these presents and no objection shall be taken by the contractor on the ground that he

was not aware of such amendments and corrections of the said General Conditions of Contract or to

any of them.

11. VARIATION IN CONTRACT QUANTITIES ( As per correction slip No 115 dt 27.01.2017

issued by Dy.GM/G/SC):

The procedure as detailed below shall be adopted for dealing with variations in

quantities during execution of works contracts:

(a) The Railway reserves the right to alter the designs and drawings. If due to change of drawing or

design or any other reasons, there be variations, either increase or decrease in quantities, payment

will be made only for the actual quantities executed at the accepted rates. If there be sufficient cause

the Railway may grant extension of the date of completion suitably. Such circumstances shall in no

way affect or vitiate the contract or alter the character thereof, or entitle the contractor to damages

or compensation thereof except as provided for in this contract.

(b) The quantities of each item of work furnished in the Schedule are approximate and are intended for

the guidance of Tenderer/Contractor. In actual execution of work there may be some increase in the

quantities specified. Such variation upto 25% shall in no degree affect the validity of the contract

and it shall be performed by the contractor as provided therein and be subjected to the same

conditions, stipulations and obligations originally and expressly included and provided for in

specifications and drawings and the amount to be paid there for shall be calculated in accordance

with accepted schedule rates.

(1) Individual NS items in contracts shall be operated with variations of plus or minus 25% and payment

would be made as per the agreement rate. For this, no Finance concurrence would be required.

(2) In case an increase in quantity of an individual item by more than 25% of the agreement quantity is

considered unavoidable, the same shall be got executed by floating a fresh tender. If floating a fresh

tender for operating that item is considered not practicable, quantity of that item may be operated in

excess of 125% of the agreement quantity (100% i.e., the original quantity +25% ie., quantity over

and above the original quantity) subject to the following conditions.

(a) Since there is an inbuilt rate reduction clause of 2% and 4% for variation between 125% and

140% & between 140% and 150% respectively on the accepted rates it will only require the

prior approval of an officer not below the rank of SAG without finance concurrence subject to

other conditions mentioned in clause 42(4) of GCC 2014.

However, a supplementary agreement / addendum to original agreement should be drawn

subsequent to sanction of the variation by an officer not below the rank of SAG, which needs to

be vetted by Associate finance.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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(i) Quantities operated in excess of 125% but upto 140% of the agreement quantity of the

concerned item, shall be paid at 98% of the rate awarded for that item in that particular

tender;

(ii) Quantities operated in excess of 140% but upto 150% of the agreement quantity of the

concerned item shall be paid at 96% of the rate awarded for that item in that particular

tender;

(iii) Variation in quantities of individual items beyond 150% will be prohibited and would be

permitted only in exceptional unavoidable circumstances with the concurrence of

associate finance and shall be paid at 96% of the rate awarded for that item in that

particular tender.

(b) The variation in quantities as per the above formula will apply only to the Individual items of

the contract and not on the overall contract value.

(c) Execution of quantities beyond 150% of the overall agreement value should not be permitted

and, if found necessary should be only through fresh tenders or by negotiating with existing

contractor, with prior personal concurrence of FA&CAO/ FA&CAO(C) and approval of

General Manager.

(3) The limit for varying quantities for minor value items shall be 100% (as against 25% prescribed for

other items). A minor value item for this purpose is defined as an item whose original agreement

value is less than 1% of the total original agreement value.

(4) No such quantity variation limit shall apply for foundation items.

(5) As far as SSR/SOR items are concerned, the limit of 25% would apply to the value of SSR/SOR

schedule as a whole and not on individual SSR/SOR items. However, in case of NS items, the limit

of 25% would apply on the individual items irrespective of the manner of quoting the rate (single

percentage rate or individual item rate).

(6) For the tenders accepted at the Zonal Railways level, variations in the quantities will be approved by

the authority in whose powers revised value of the agreement lies.

(7) For tenders accepted by General Manager, variations upto 125% of the original agreement value may

be accepted by General Manager.

(8) For tenders accepted by Board Members and Railway Ministers variations upto 110% of the original

agreement value may be accepted by General Manager.

(9) The aspect of vitiation of tender with respect to variation in quantities should be checked and

avoided. In case of vitiation of the tender (both for increase as well as decrease of value of contract

agreement) sanction of the competent authority as per single tender should be obtained.

(10) In zonal contracts variation in the contract should not exceed 25% of the contract value or 2 lakhs,

whichever is higher.

(11) Revision to contract value shall be proposed by way of a variation statement. In all the cases, where

negotiations are required to be held, appropriate tender committee recommendation will be drawn

and put up to competent authority.

(12) Gross value of the agreement due to the variation shall be taken for arriving at the competency of

sanction. While working out the gross value, savings, if any, shall not be taken into account.

(13) In cases where decrease is involved during execution of contract:

(a) The contract signing authority can decrease the items upto 25% of individual item without

finance concurrence.

(b) For decrease beyond 25% for individual items or 25% of contract agreement value, the

approval of an officer not less than rank of S.A. Grade may be taken, after obtaining „No claim

certificate‟ from the contractor and with finance concurrence giving detailed reasons for each

such decrease in the quantities.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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(c) It should be certified that the quantities proposed to be reduced will not be required in the same

work at a later stage.

(d) In the event of any reduction in the quantity to be executed for any reasons whatsoever, the

contractor shall not be entitled to any compensation but shall be paid only for the actual amount

of work done.

(e) The contractor is bound to notify the Engineer at least seven days before the necessity arises for

the execution of any item in excess of 25% of the overall value of the agreement.

(14) In case the contractor fails to attend the meeting after being notified to do so or in the event

of no settlement being arrived at, the Railway shall be entitled to execute the extra works by

other means and the contractor shall have no claim for loss or damage that result from such

procedure.

9 12)Employment of Civil Engineering Graduates/Diploma-holders:

The contractor shall employ the following technical staff during the execution of this work.

i) One graduate engineer when the cost of the work to be executed is Rs.2 Crores and above.

ii) One qualified diploma holder (over-seer) when the cost of the work to be executed is more

than Rs.25 lakhs but less than Rs.2 Crores. Technical staff should be available at site whenever

required by the Engineer-in-charge to take instructions. In case the contractor fails to employ

the technical staff as aforesaid, he shall be liable to pay a reasonable amount not exceeding a

sum of Rs.40,000/- (forty thousand only) for each month of default in case of graduate

engineer and Rs.25,000/- (twenty five thousand only) for each month of default in case of

diploma holder (over-seer)

(Modification of Cl.26 and introduction of new Cl.26A to IR‟s GCC Ref: Rly. Bd. Lr.No.2012/CE-

I/CT/0/20, dt.10.05.2013.)

The decision of the Engineer-in-charge as to the period for which the required technical staff was not

employed by the contractor and as to the reasonableness of the amount to be deducted on this account shall

be final and binding on the contractor.

iii) Individuals having Diploma in Railway Engineering awarded by IPWE (India) shall also be

considered as qualified Diploma holder Engineers and contractors for track contract works can

employ such individuals at their worksite on Indian Railways.(Ref: Rly. Bd. Lr.No.2012/CE-

I/CT/0/20, dt.12.07.2013.)

Note: The above clause is not applicable for contracts for Welding of Rail joints.

13) Railway Contractors / Extension of Provident Fund Act to the Employees working under Railway

Contractors:-

The Contractor shall comply with the provisions of EPF & MP Act, 1952 and obtain code

number from the concerned authorities whenever workmen employed by him are 20 or more. He

shall also indemnify Railways from and against any claim, penalties, recoveries under the above

Act and Rules. Contractors to get the code number under the EPF so as to enable the PF

Commissioners to extend the social security benefits to the workmen engaged by the Railway

contractors. The first month‟s bill will be released only after code number is taken from the PF

Office and a copy of coverage intimation produced. Subsequently for each month, bills will be

released only on submission of challans & 12 A monthly return copy in proof of remittance of PF

dues for previous month.”

14) Conservancy charges as applicable and as modified from time to time will be recovered from

Contractor’s running bills.

Signature of the Tenderer/ Sr. Divisional Engineer/North

Contractor S.C.Railway/Vijayawada

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Tender No.E-4/North/2017

15. Service Tax ( ref. FA&CAO/G/SC letter No AXP/Service Tax dt.15.12.2016 communicated vide

PCE/SC letter No W.417/P/Pilot/Vol. III dt 05.01.2017)

15.1 Liability to pay:

The service receiver (SR), in certain services (eg. Legal services by advocates SR=100%,

Renting/Hiring of a motor vehicle = SR=40%, Man power services SR=100%, Services

provided in service portion in execution of works contracts SR=50%), has been made liable to

pay service tax for the services received. This is colloquially called as „Reverse Charge

Mechanism‟.

For the services rendered by any individual, Hindu undivided family or partnership firm,

whether registered or not, including association of persons, located in the taxable territory to a

business entity registered as body corporate, located in the taxable territory, then that body

corporate is liable to pay/remit service tax under Reverse Charge rule.

Since Railway is not a business entity registered as a body corporate, but is a Government

department, the reverse charge would not be attracted and there is no need to pay service tax by

the Railways as a recipient. The service tax shall be liable to be discharged by the service

provider.

15.2

Sl No Nature of Contract Taxability

01 Face to Face Enquiry Taxable: Man Power Supply

02 Bedroll Distribution Taxable: Man Power Supply

03 On Board House Keeping Non-Taxable: Sl No. 25 of Exemption

Notification No 25/2012-ST

04 Clean train station Non-Taxable: Sl No. 25 of Exemption

Notification No 25/2012-ST

05 Clealiness & Garbage Disposal, Pest &

Rodent Cotrol/Disinfestation

Non-Taxable: Sl No. 25 of Exemption

Notification No 25/2012-ST

06 Rodent Control/Disinfestation Non-Taxable: Sl No. 25 of Exemption

Notification No 25/2012-ST

07 Rag Picking & Disposal Non-Taxable: Sl No. 25 of Exemption

Notification No 25/2012-ST

08 Loading of sand in sanders in Locos Taxable: Man Power Supply.

09 Data Entry Taxable: Man Power Supply

10 Catering Housekeeping & Upkeep Taxable: Man Power Supply

11 Work of erstwhile box boys Taxable: Man Power Supply

12 Gate Mitra/ Safety Counsellors Taxable: Man Power Supply

13 Manning of OHE & PSI depots Taxable: Man Power Supply

14 TSS operators Taxable: Man Power Supply

15 Security Guards Taxable: Man Power Supply

16 Rain Gauge Manning Taxable: Man Power Supply

17 AMCs Taxable: Annual Maintenance Contract

18 Garden Maintenance Taxable: Man Power Supply.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada

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Tender No.E-4/North/2017

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SPECIAL CONDITIONS

MODIFICATION TO CLAUSE 63 & 64 OF

GENERAL CONDITIONS OF CONTRACT

1 The Provision of Clause 63 and 64 of the General Conditions of Contract will be applicable only

for settlement of claims /disputes, for values less than or equal to 20% of the original value

(excluding the cost of materials supplied free by Railway) of the contract or 20% of the actual

value of the work done (excluding the value of the work rejected) under the contract whichever is

less. When claims/disputes are of value more than 20% of the value of the original contract or

20% of the value of the actual work done under the contract, whichever is less, the contractor will

not be entitled to seek such disputes/claims for reference to arbitration and the provisions of

Clause No; 63 &64 of the General Conditions of Contract will not be applicable for referring the

disputes to be settled through arbitration.

2 The Contractor shall furnish his monthly statement of claims as per Clause 43(1) of General

Conditions of Contract. But the Contractor should seek reference to arbitration to settle the

disputes only once, subject to the conditions as per Para 1.

3 The Special conditions shall prevail over the existing Clause 63 & 64 of General Conditions of

contract.

Signature of the Tenderer/ Sr. Divisional Engineer/North Contractor S.C.Railway/Vijayawada