WORKS

Speaker: Speaker:

A. K. GUPTA Executive Engineer (Vigilance)Mandi House, New Delhi

OUTLINEWORKSGFR ProvisionsCPWD Works ProcedureRole of Divisional AccountantWorks Accounts, Books and FormsSuspension of Work Disputes and Arbitration International contracts Integrity PactE-TenderingCVC Guidelines IllustrationsEstimatesNITs AccountsContract Document

WORKSSite preparation, construction, reconstruction,

demolition, repair, maintenance, or renovation of:

Buildings, installations or other structuresRailways, roads, highways, ports, airports or

other infrastructuresAny construction project or any construction

work relating to excavation, drilling, installation of equipment and materials, Services incidental or consequential to the work

GOODSAll articles, materials, commodities, livestock,

furniture, fixture, raw materials, spares, instruments, machinery, equipment, industrial, plant - for use of Government.

Excludes, books publications, periodicals.

SERVICEIncludes physical, maintenance, professional,

intellectual, consultancy and advisory services.

Other than procurement of goods or works.Does not include appointment of any

individual made under any law.

PROCUREMENTAcquisition by purchase, lease, license or

otherwise of goods, works or services or any combination thereof, including award of Public Private Partnership projects, by a procuring entity-

Directly or through an agency with which a contract for procurement services is entered into

Does not include acquisition of goods, works or services without consideration.

ORIGINAL WORKSNew ConstructionAdditions & Alterations to existing worksSpecial repairs to newly purchased or

previously abandoned buildings or structuresRemodeling or replacement

REPAIR WORKMaintain building or fixtures

ADMINISTRATIVE CONTROL OF WORK (RULE 124)Responsibility for construction, maintenance

and upkeep.Paper utilization of buildings and allied

works.Provision of funds for execution

POWER TO SANCTION WORKS (RULE-125)Powers to accord AA & ESRe-appropriationAs per DFPR – 1978To various subordinate authorities.

EXECUTION OF WORKS (RULE-126)Ministry/Department directly take up Repairs

upto Rs. 30.00 lacs.Assign repair works above Rs. 30.00 lacs

and original work of any value to any public works organizations (state PWD, CPWD, MES, BRO, civil wing of MI&B ).

Alternatively to any PSU, central, other state govt as notified by the MOUD .COMPETITION among PSUs wrt lump sum charges,

ADMINISTRATIVE CONTROL OF CPWDWorks not specifically allotted to any

Ministry/Department.Included in Grants for Civil works to be

administrated by CPWD.No partly funding.

GENERAL RULES 128Ministry/Department shall generally observe

GFRDetailed rules, order, may be framed by

Departments.Initiation, Authorization & Execution.

RULE 129 (i)Rule 129 (i) No work shall be commenced

liability incurred until:AA accorded by CAES by CAProperly detailed design sanctionedEstimates prepared & sanctionedFunds provided during the yearTenders invited & processed.Work order issued.

RULE 129 (ii)If not done as per rule 129 (i) obtain approval

of competent authorityInform concerned Accounts officer.

RULE 130Groups of works dependent on one-another

forms one project.Obtain approval of the competent authority

on the basis of cost of project.Lower authority will not give sanctionNot applicable for similar works independent

of each other.

RULE 131Savings not to be used for additional works

not contemplated in the original project.

RULE - 132Procedures to be prescribed by the Departments

in consultation with Account officer.Preparation of detailed design & estimates AA &

ES.Open tenders for works 5 lacs to 10 lacsLimited tenders < 5 lacsA ward of works & execution of contract Final payment on certificate of completion by

the executing officer:As per specificationsWorkmanship upto standards of indusrtry.

RULE - 133PWD/CPWD execute work only when AA &

ES provided by the Department.Funds provided

RULE - 134REVIEW OF PROJECT:For projects > 10 crores.Project reviewed: Administrative Department Internal Finance Wing Executing AgencyApprove variation upto 10%

CLASSIFICATION AS PER FUNDING OF WORKS BUDGETED WORKS: Undertaken from the financial estimates and

accounts of the Union of India.Voted by both the Houses of Parliament.• DEPOSIT WORKS:Undertaken at the discretion of the department.Government grants to autonomous or semi-

autonomous bodies.Institutions through their Administrative

Ministries.

EMERGENCY WORKSSudden and are inescapable requiring immediate action

cannot brook any delay. Earth quakes Blizzards Hurricanes/lightening Tornados Tsunami waves Floods Explosions/Arson Firs War In case of emergency, the work may be executed in

absence of any or all of the above mentioned pre-requisites. Competent authority to regularize the liability as early as possible.

URGENT WORKSThose kinds of works which requires fast

start/completion within compressed schedule. are to be taken up on top most priority .availability of funds needs to be ensured

beforetaking the work. at request of user department, with prior in

principle approval of CPWD officers to approve the work order, if work is to be executed through work order.

Chief Engineer to approve the execution of urgent works.

ADMINISTRATIVE APPROVALAdministrative approval is the communication of

formal acceptance of the proposals by the competent authority of the Administrative Ministry/Department requiring the work.

Accord of administrative approval:The concurrence of the competent authority to the

Preliminary Estimate of the work.Powers for accord of administrative approval:Various Ministries/Authorities delegated specific

powers to accord administrative approval.

ADMINISTRATIVE APPROVALMaterial deviations over original

Sanctioned Scheme:Material deviations should not be made without

the approval of the authority even though the cost of the same may be covered by savings on other items.

Excess over administrative approval:Excess up to 10% of the amount by officers of

the CPWD. In case it revised administrative approval.

Expenditure sanctionExpenditure sanction:Expenditure sanction is to be accorded by Ministry which ensure funds for the project/work have provided, liability can be incurred.Order of appropriation re-appropriation of funds on minor works.Powers for accord of expenditure sanction:Ministries/Departments of the Central Government may issue expenditure.Administrative control of National Capital Territory of Delhi by the Lt. Governor, Delhi after concurrence of delhi state division of finance ministry.Excess over expenditure sanction:Expenditure sanction can be exceeded upto 10%, beyond which revised sanction of Expenditure.

TECHNICAL SANCTION Technical sanction amounts to a guarantee that the proposals are technically

sound, estimates are accurately prepared based on adequate data. Accord of technical sanction: Detailed estimates are required to be prepared for technical sanction. Before an estimate is technically sanctioned, the following shall be desirable: Detailed architectural drawings and specifications. Preliminary structural drawings for foundations. Preliminary structural drawings of superstructure at least upto slab at level 2 Preliminary drawings for internal and external services. In case of work for design and construct basis. Details functional

requirement and complete specifications including preliminary drawings finalized before the call of tenders.

Detailed estimate shall be prepared based on applicable schedule of rates. Deviation in Technical Sanction: Can be exceeded upto 10% beyond which Material structural alterations , orders of the authority which

sanctioned necessary

PRE-CONSTRUCTION AND CONSTRUCTION STAGES1) Pre-construction stage:i) Requisition from the client.ii) Approval of the preliminary plans by the client.iii) Preparation of preliminary estimate.iv) Approval of plans by the Local Bodies.v) Preparation of detailed working drawings.vi) Preparation of detailed estimates for buildings

and all services (civil, electrical and mechanical).vii) Preparation of structural drawings.viii)Call of tenders and pre-bid conference wherever

applicable.ix) Decision on tender and award of work.

Construction stage2) Construction stage:i) Execution of work and contract

management.ii) Completion of work.iii) Testing and commissioning.iv) Completion certificate from Local Body

including fire clearance.v) Handing over to client.vi) Settlement of account.

PREPARATION OF ESTIMATES Preliminary Estimate: Preliminary estimate is to be on plinth area or length

of road etc.basis On the basis of the preliminary drawings and

specification prepared. Provisions as required.Provision for contingencies and its utilization: In addition to the provision for all expenditure can be

foreseen for a work, contingency shall be kept as follows:

Estimated cost up to Rs. 1 crore………. 5%. Estimated cost more than Rs. 1 crore .. 3%, subject to

minimum of Rs. 5 lakh. Cover the cost of work-charged establishment

SCHEDULE OF RATESTo facilitate the preparation of estimates, as a guide in

settling rates in connection with contract agreements, a schedule of rates for each kind of wok commonly executed should be maintained up-to-date in the Department. The rates prevailing in each station and necessary analysis.

The schedule of Rates for Delhi shall be issued under the authority of DG, CPWD.

Work of flyovers, bridges, grade separators and highways/hill, major roads are involved, MORTH specifications and its standard data. In analysis of rates, the prevailing market rates at the work shall be adopted.

SUPPLEMENTARY ESTIMATEAny development that is thought necessary

while a work is in progress.Not covered in the original estimate.May be covered by a supplementary

estimate.Revised EstimateExcess beyond permissible variation over the

estimate.

CONTRACTOffer made by one person – Promisor.Acceptance of an offer – Promisee.Doing an act by promisor for promisee –

considerationLawful offer and acceptance Offer and acceptance constitute an

agreement.An agreement enforceable by law becomes

Contract.

AGREEMENTA proposal Communication of proposalCommunication of acceptance of proposalOffer may be revoked before acceptanceAcceptance may be revoked before it is

posted.Contract springs up once the offer is

accepted.

DIFFERENT FORMS OF CPWDForm 6 – NITForm 7 – Percentage rate tenderForm 8 – item rate tenderForm 9 – supply of materialForm 10 – Piecework:i) For work less than Rs. 5 lakhsii) Where it is necessary to start the work in

anticipation of formal acceptanceiii) or running contracts.

WORK ORDERCPWD Form 11 – i) Used for work up to Rs. 10 lakhs.ii) Work awarded on this form may be stopped

any time by both parties.CPWD Form 11 A-i)Small works costing up to Rs. 10 lakhs ii)The contractor is bound to execute specified

work in stipulated time.

LUMP SUM CONTRACTContractor is required to quote lump sum

amount for completing the work in stipulated time.

Detailed working drawings (Architecture and structural) part of tender documents.

Detailed specification in tenders.Drawings and detailed specifications form

basis of payments.Payment as per mile stones

LUMP SUM CONTRACT(Design and Construction)Contractor to give design:i) Two bid system to be adopted.ii)All data, requirements, specifications preliminary

drawings forms the tender documents. iii)Technical bid – contain the architecture plans,

structural design calculations, structural drawings, service plans, detailed measurement sheets.

iv)Technical bids to be evaluated by a committee.v)Committee to seek clarifications if required through

pre-bid conference.vi)Equalizing the bidsvii)Offer for revising the price bidviii)Opening the price bid

AWARD OF WORK WITHOUT TENDERSFor works below Rs. 50,000/-Reasons to be givenWork awarded after calling quotationsPublicity may be given through web Spot quotations may be collected as per

situationTotal amount of the works awarded without

call to tender in a year should not exceeds the limit prescribed.

TENDER DOCUMENTSDESIRABLE :Availability of site, funds, local body approval.Available of departmental issued materialsStructural drawings for foundationLay out plans• DOCUMENTS:NITSpecial conditions, additional conditions.Schedule of quantitiesDrawings and specificationsComplete scope of works

DEPARTMENTAL ISSUED MATERIALNot to be issued free of costs/issue rates to

be specifiedDescription of materials to be givenPlace of issueNotice to be given for return the materialsRecovery of stipulated material beyond

permissible variation.

NITIssue after authorized by TS sanctioning authorityUse standard formsEligibility criteria clear and unambiguousEstimated cost and time of completion mentionedUse of symbols not desirable, units more specificCorrections should be attested. All pages

numbered, clear, legible and unambiguous.Correction slips mentionedNo condition for inspection of material etc.

inside/outside the country at contractor’s cost. Permission of Ministry for inspection abroad

VALIDITY PERIODFrom date of opening of tender to acceptanceFor single bidsEE – 30 DaysSE – 45 DaysCE – 60 DaysADG/DG/CWB – 90 Days

SPECILIZED WORKThose required special T&P and skillTenders on two bid/three bids systemSTEPS:Approval of definition of similar workApproval of eligible contractorsApproval of technical specificationsRevision of financial bidsAcceptance of financial bids

ELIGIBILITY CRITERIAExperience of having successfully completed

works during last seven years.i)Three similar works not less than 40% of the

estimated cost or ii)Two similar works not less than 60% of the

estimated cost oriii)One similar work of not less than 80 % of the

estimated cost

ELIGIBILITY CRITERIAFOR DG SET:i)Three similar works not less than 40% of

estimated cost and having capacity 80% of the equipments or

ii)Two works not less than 60% of estimated cost and having capacity 80% of the equipments

iii)works not less than 80% of estimated cost and having capacity 80% of the equipments

SPECILIZED WORK CONTINUESThree bid system:Pre-bid conference for clearing doubts.1st bid - Examine the documents relating to

eligibility criteria and approve the eligible contractor.

2nd bid – open bid for technical specifications and asses technically qualified bidders. Technical and financial bid may be called simultaneously or

Financial bids may be called from technically qualified contractors or revised financial bid may be called if revision in specifications after technical bid.

3rd bid – financial bid. Guarantee bonds required in case of water

proofing/anti-termite works etc.

EARNEST MONEYTo ensure that a tenderer does not back out of his

tender before or after acceptance.To be deposited with the tender as specified2% of the estimated cost up to estimated cost of 10

crores20 lakhs + 1% of the estimated cost in excess of

Rs. 10 crores.Cash upto Rs. 10,000/-, Bankers Cheques, DD, FD

and Bank Guarantee (minimum 6 months)Earnest money is not security deposit with in

meaning of Rule, 45 of the saving Bank Rules.

FORFEITURE OF EARNEST MONEYIf tenderer withdraws tender before the

expiry of the validity period, 50% forfeitedContractor fails to furnish performance

guarantee within prescribed period, fully forfeited.

In case of forfeiture, tenderer not to participate on re-tendering.

AWARD OF WORKReceipt of tenders Witnessing the opening of tenders Marking corrections, omissionsPreparation of comparative statementsResponsibility of Divisional Accountant:Safe custody of tenders in accounts branchChecking the computation of tendersCorrectness of the comparative statementsFurnishing of certificate of correctness

AWARD OF WORKResolving ambiguities:Difference in rates written in words and

figures, rate corresponding to amount is taken correct.

If amount is not worked out, rate in words taken correct

Rate in words and figures tallies but not with the amount, rate is taken as correct

In percentage rate tenders, tender percentage to be taken correct

AWARD OF WORKProcessing tenders:Timely processing Tenders with conditional rebates to be

rejected If validity expires, seek extension of validity

for contractorsReasonability and competitiveness of the

rates, variation up to 5% over justified rates Revised expenditure sanction if tender

amount more than 10% of TS, seek assurance from the competent authority

AWARD OF WORKConducting negotiations:Negotiations should not normally be

conducted with the tendererWhere it becomes necessary, restricted only

to the lowest tenderer.Negotiations on rates with the approval of

next higher authority in works of urgent nature where time is not available for recall

For clarification of any error/ambiguity Higher rates on recall

AWARD OF WORKCommunication of acceptance:Communicate to the contractor and ask

submission of PGOn submission of PG, intimation for

commencement of workAlso intimate, ALC, Conciliation Officer, ITO,

Labour officerUnsuccessful tenderers may be informed

about rejection

PERFORMANCE GUARANTEEAfter award of work for performance of contract5% of tendered amountCash, Deposit at call receipt, Banker’s cheque, demand

draft, valid upt to date of completion, extended period + 2

monthsIt should be returned after stipulated periodContracts involved maintenance 50% PG will be

retained.Failure to extend guarantee, the E-in-C may claim full

PG.If contract is determined/rescinded, PG will be forfeited

in full.

SECURITY DEPOSITAfter completion of work2.5% of the gross Amount of each running billTotal 2.5% of tendered amount Contractor may encash SD by giving

government securities, FDRReleased on furnishing BG on accumulation of

minimum 5 lacs BG should be minimum of Rs. 5 lacs

For maintenance 50% PG is treated as SD, released yearwise proportionately.

E-TENDERINGE-tendering platform hosted by M/s ITI Ltd.

With address www.tenderwizard.com/cpwdAll the authorized officers and contractors

to obtain digital signature certificates from authorized certifying authorities like NIC, MTNL, e-Mudhra, TCS, Safesrypt, GNFC etc.

EE will upload NIT specifying the time and date of submission, opening, list of document to be scanned and uploaded.

E-TENDERINGDocuments to be scanned and uploadedDocument of EMDEnlistment/registration of contractorsCertificate of work experienceAffidavit as prescribed in NIT for financial turnoverCertificates of VAT & Sale Tax registrationAn undertaking that physical EMD will be

deposited when required failing which tenderer will be debarred.

E-TENDERINGDepositing of processing fee onlineContractor must ensure to quote rate for each

item. The column appears in pink color, it turns blue on filling the rate.

Any cell left blank is treated 0 (zero)Contractor can re-submit revised bid any

number of times before last date of submissions.In case of revised financial bid contractor has to

revise financial bid failing which bid becomes invalid.

Processing of E-TENDERINGThree bid system:Documents relating to eligibility are opened and

eligible contractor approved. open technical bids and finalize specifications

and if required call revised financial bidAll contractors would be informed through e-

mail to revise financial bid.Revised financial bid to be submitted by eligible

contractors.Revised financial bid will be opened on due date

Processing of e-tendereingBids will be opened by authorized officer, he can also

authorize other officer in case leave.Download SOQ of each bidder and comparative statementContractor can login and see the bid opening process and

comparative statementsThe officer will sign on each page, name of contractor will

be printed each sheet and also the page number and total pages

Full bid of L1 is to be downloadedThe comparative statement is generated automatically Download comparative statement and check physicallyThe L1 contractor is to submit physically EMD and hard

copy of documentAward letter are to be published after acceptance of

tender on the tender portal.

COMPLETION OF AGREEMENTAgreement consist of following documents: NIT PWD forms 7 or 8 Schedule of quantities Letter of contractor submitting tender Other communications before acceptance Letter of EE communicating acceptance Letter of EE for commencement of work CPWD safety code, CPWD labour regulations etc. Correction slips

COMPLETION OF AGREEMENTGeneral principles: Only authorities under article 299 (1) of the constitution

are authorized on behalf of President. President is to be made party in each contract Use standard forms EE will sign for and on behalf of the President of India Agreement to be signed as soon as possible after

acceptance The terms of the contracts should not be materially

varied without the previous consent of the authority to accept the tenders.

Duplicate copy of agreement to be given to the contractor free of cost

Certified true copies to be prepared for use in the office.

Thanks Thanks E mail: akgupta07@nic.in