DELEGATION OF POWERS IN RESPECT OF WORKS MATTERS - Eastern Railwayer.indianrailways.gov.in/cris/uploads/files/... · · 2018-05-01DELEGATION OF POWERS IN RESPECT OF WORKS MATTERS

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USOP (Works) June, '15

DELEGATION OF POWERS IN RESPECT OF WORKS MATTERS

Sl. No

Reference/ Authority

Nature of Power

PHOD/HOD/SAG Officers

DRMs JAG Sr.

Scale REMARKS

1(a) (i)

Bd’s letter No.F(X)II-2007/PW/4 dtd 04.01.08

Sanction of works under the plan head :- i) Traffic Facilities (PH-16) ii)Road Safety (Level X-ing) (PH-29)

iii) Road Safety (RUB/ROB)(PH-30) iv) Track Rewards (PH-31) v) Bridge Work (PH-32) & vi) Signalling works (PH-33) within the limit of lump sum grant allotted by HQ for sanction of new work at divisions / workshops level

NIL DRM / CWM – Works costing upto Rs.10 lakh in each.

NIL

NIL i) Finance concurrence is necessary ii) Detailed estimate is to be vetted and sanctioned prior to execution of works within the fund made available for the works.

1(a) (ii)

Rly. Bd’s letter No. F(X)II-2007/ PW/4 dtd 04.1.08.

Sanction of works under the plan head :- vii) Other Electrical Works(PH-36) viii) Workshop including production unit (PH-42) ix) Staff Quarter (PH-51) x) Other Specified Works (PH-64) within the limit of lumpsum grant allotted by HQ for sanction of new works at HQ /Divisions/Workshops level

NIL

PCE : Works costing upto Rs.30 lakh in each against the lumpsum grant allotted to PCE

DRM / CWM – Works costing upto Rs.10 lakh in each.

NIL


1(a) (iii)

Rly. Bd’s letter No. F(X)II-2007/ PW/4 dtd 04.1.08.

Sanction of works under the plan head :- Amenities for Staff (PH-52) within the limit of lump-sum grant provided for Divisions / Workshops.

NIL

DRM - Hospitals / dispensaries - Upto 5 lakhs per case. Rly. Schools/ Institutions- Upto Rs. 5 lakhs per case. Other staff amenities - Upto Rs. 10 lakhs per case. CWM - Hospitals / dispensaries - Upto 3 lakhs per case. Rly. Schools/ Institutions- Upto Rs. 2 lakhs per case. Other staff amenities - Upto Rs. 10 lakhs per case.

NIL


Sl. No


Nature of Power PHOD/HOD/SAG Officers

D R Ms JAG Sr.

Scale REMARKS

1(b)

Rly. Bd’s letter No. F(X)II-2006/ PW/2 dtd 30.03.2006 & 16.05.06

Against Division / Workshop's lump-sum grants under Demand-16 Sanction of Works under the Plan Head - Passengers and other users' amenities (PH-53) within the limit of lump-sum grant provided for Divisions / Workshops.

NIL DRM - Works costing upto Rs. 30 Lakh.

NIL

NIL Finance concurrence is necessary

NOTE : i) Abstract Estimate with justification is sanctioned after concurrence and vetting by Sr. DFM/DFM in - charge personally. ii) Detailed estimate should be prepared, vetted and sanctioned before execution, within funds made available for the work. iii) Total value of works sanctioned should be limited based on the funds allotted by Head Quarters for sanction at Divisional

level and norms prescribed by Railway Board vide letter No. F(X)-II-2006/PW/2 dated 30.03.2006.

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Sl. No


Nature of Power PHOD/HOD/SAG

Officers D R Ms JAG

Sr. Scale

REMARKS

2(a)

Item No.40 (1) (a) of Bd’s letter No F(X)II-2003/ PW/10 dt. 09.01.04.

SANCTION OF ESTIMATES Expenditure on works and surveys provided in the sanctioned budget (detailed works programmes and the book of demands for grants) for the year or carried forward from the sanctioned budget of any previous year as follows :- Track renewal works provided in the sanctioned budget i.e. approved track renewal programme.

PHOD /CHOD of Elec., Mech., S&T & Civil - Rs.20 crores. SAG of Elec., Mech., S&T & Civil - Rs.12 crores.

DRM/CWM - upto Rs.5 crores SRM/ADRM/CWM – Rs.3 crores

Upto Rs.2 crore

Upto Rs.50 lakhs

Finance Concurrence is necessary

NOTE : i) The excess over the approved cost, if any, is limited to 25%. ii) In comparison to the scope and nature of the work envisaged in the survey report and the abstract estimate, there is no

change at the stage of sanction of the estimate. iii) Personal approval is to be obtained at the level of GM and FA&CAO in cases of such estimates costing above Rs.50 crs

but below Rs.100 crs.

iv) For works included in the sanctioned budget with the proviso that expenditure/commitments on this project will be made

only after necessary procedural approval, estimates shall not be sanctioned till the necessary procedural approval is received

v) However, creation of post will be made with the approval of competent authority with finance concurrence even provision for such posts exist in the sanctioned estimate. This condition will apply to all types of estimates in which provision for posts exist.

vi) Rule regarding power of sanction for excess over the abstract cost should be strictly adhered to. vii) Where estimates require procedural approval same should not be sanction prior to obtaining of approval. viii) Estimates for works requiring detailed drawings / survey should not be sanction till these requirements have been

carried out. ix) No change in respect of sanction. FWP should be allowed.

Sl. No

Reference / Authority


Officers D R Ms JAG

Sr. Scale

REMARKS

2(b) Item No.40 (1) (b) of Bd’s letter No. F(X)II-2003/ PW/10 dtd 09.01.04.

Sanction of Rolling Stock Program estimate : for works included in the Rolling Stock Programme and appearing in sanctioned budget.

PCE, CSTE, CME & CEE in PHOD/Co-ord. Rank - Upto Rs.10 crores. Other SAG of Mech, Engg, Signal, &. Elect. Dept. - Upto Rs.5 crores

DRM/CWM - Upto Rs. 3 Crores

Upto Rs. 1 crore

NIL Finance Concurrence is necessary The estimate of LLH Workshop can be sanctioned by CWM/LLH without any technical vetting of the estimate by Engg. Branch of the HWH Divn.

2(c) Item No.40 (1) (b) of Bd’s letter No. F(X)II-2003/ PW/10 dtd 09.01.04.

Sanction of M&P estimate provided in the sanctioned budget (Works Program & approved list of Works, M&P Items) excepting expenditures on building not essential to Rly. Works.

PHOD/CHOD of Civil, Elect, Mech. & S&T - Upto Rs.10 crores.

SAG of Civil, Elect, Mech. & S&T – upto Rs. 5 Crores.

DRM/CWM - Upto Rs.5 Cr. SRM/ADRM – Upto Rs.3 Cr.

Upto Rs. 2 Cr.

NIL Finance Concurrence is necessary

NOTE : i) No change in respect of sanction. FWP should be allowed. ii) Personal approval is obtained at the level of GM & FA&CAO for the cost above Rs.50 crores but below Rs.100 crores. iii) For creation of posts even if provision exist in the estimate Finance concurrence and competent authority’s sanction is necessary. iv) Rules regarding Power of sanction for excess over the Abstract cost should strictly be adhered to. Estimate for works requiring detailed drawings

Surveys should not be sanctioned till these requirements have been carried out. v) Where estimates require procedural approval, the same should be obtained prior to sanction of estimate.

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Sl. No



D R Ms JAG Sr.

Scale REMARKS

2(d) Rly. Bd’s Letter. No. F(X)II/90/PW/2 dt. 06.08.98.

Sanction of Estimates for Surveys for ‘New Line, Gauge Conversion and Doublings’.

CAO (Con) -Full powers within the yardstick prescribed by Board or at the cost entered in the Budget document whichever is less for such surveys.

NIL NIL NIL Finance Concurrence is necessary

2(e) Rly. Bd’s Letter. No. F(X)II/90/PW/2 dt. 06.08.98.

Sanction of Estimates for Survey for other Plan Heads.

PCE, CAO©, CSTE, CEE – Detailed estimates may be sanctioned only to the extent provided in the sanctioned budget.

NIL NIL NIL Finance Concurrence is necessary

NOTE : Above delegation will not apply to works which do not have necessary procedural approval.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

2(f) Chapter VII of Engg. Deptt.

701 E 1103 E 1102E with

advance correction slip No.37

i) To sanction estimate chargeable to Revenue (Ordy & Spl) for which budget allotment has been made.

ii) Execution of works

chargeable to ordinary revenue without sanction of detailed estimate.

Full powers within the budget allotment for the department and relevant demand.

Upto Rs.2 lakhs subject to funds being available within the sanctioned revenue budget of the year. In case of accidents and emergencies, to restore or safeguard communication, PHODs may exercise full powers even without availability of funds upto a limit of Rs.5 lakhs and Rs.3 lakhs respectively in each case subject to observance of provisions of Para 1103E to 1106E.

DRM/CWM– full powers within the budget allotment for the division, dept. and demand. ADRM/SRM – Above Rs. 25 lakhs & upto Rs. 1 crore.

Upto Rs.2 lakhs subject to funds being available within the sanctioned revenue budget of the year. In case of accidents and emergencies, to restore or safeguard communication, DRMs/CWMs may exercise full powers even without availability of funds upto a limit of Rs.2 lakhs in each case subject to observance of provisions of Para 1103E to 1106E.

Upto Rs.25 lakhs within the budget allotment for the divn dept. and demand.

Upto Rs.2 lakhs only in each case provided. Provision exists in the sanctioned revenue budget of the year. In case of emergencies / accidents upto Rs.1 lakh in each case even without availability of fund in the budget subject to observance of provisions of Para 1103E to 1106E.

Upto Rs.5 lakhs within the budget allotment for the divn dept. and demand.

Upto Rs.2 lakhs only in each case provided. Provision exists in the sanctioned revenue budget of the year.



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Sl. No



D R Ms JAG Sr. Scale

REMARKS

2(g) 732E to 735E, 1845E

To sanction estimate for works chargeable to other Govt. Dept., local bodies or private individuals (Except work to be executed in Loco Carriage Workshop) subject to observance of extant rules for deposit work.

i) Where work is wholly chargeable to deposit.

ii) Where work is partly chargeable to the party and partly to the railway and is included in the approved program.

PHOD/CHOD of Operating, Elect. & Engg..-Rs. 10 Crores


DRM - Upto Rs.5 Crs. SRM/ADRM – 03 Crores.

DRM - Upto Rs. 5 Crore. SRM/ADRM- 03 Crores.

Civil Engg. De[pt. – Rs.1 crore Civil Engg. De[pt. – Rs.1 crore

NIL

NIL

Finance Concurrence is necessary Finance Concurrence is necessary

NOTE : i) No change in respect of sanction. FWP should be allowed. ii) Personal approval is obtained at the level of GM & FA&CAO for the cost above Rs. 50 crores but below Rs. 100 crores. iii) For creation of posts even if provision exist in the estimate Finance concurrence and competent authority’s sanction is necessary. iv) Rules regarding Power of sanction for excess over the Abstract cost should strictly be adhered to. Estimate for works requiring

detailed drawings Surveys should not be sanctioned till these requirements have been carried out. v) Where estimates require procedural approval, the same should be obtained prior to sanction of estimate. vi) In case of siding the estimate may be sanctioned in consultation with Operating and Commercial Branch.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

2(h) 1822E 1830E

Sanction to detailed estimates of works relating to industrial and coal sidings :- i) Private sidings where cost is wholly chargeable to deposit including repairs and maintenance chargeable to deposit subject to full deposit being made in advance and subject to observance of rules for deposit works.


DRM - Upto Rs.5 Crs.

NIL

NIL


2(h) 1822E 1830E

Sanction to detailed estimates of works relating to industrial and coal sidings :- ii) Assisted sidings included in the approved works program and for which funds are available.

PHOD/CHOD of Operating, Elect. & Engg..-Rs. 3 Crs.

DRM - Upto Rs.1 Crore

NIL

NIL


NOTE : Where work is partly chargeable to Railway and partly to party, it must be ensured that work is not executed before the necessary deposits have been made by the party. Portion of works for which cost to be borne by Railways should be restricted to the fund allotment for the year and no re-appropriation can be made form other works. Quarterly report in this regard should be furnished to concerned PHOD & FA&CAO.

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Sl. No



Officers DRMs JAG

Sr. Scale

REMARKS

3(a) Item No. 40(2) (1) & Bd’s letter No. F(X)II-2003/ PW/10 dtd 09.01.04.

EXCESS OVER ESTIMATES. Sanction of excess over the estimated cost as entered in the sanctioned budget or sanctioned separately by a higher authority other than M&P.

Full powers upto power of sanction (including the excess) subject to – a) 50% for increase in cost due to escalation. b) 10% increase due to reasons other than escalation or Rs.10 Crores whichever is less.

DRM / CWM –

Full powers upto the power of sanction (including the excess) Same as Col. 4

Full powers upto the power of sanction (including the excess) Same as Col. 4

NIL Finance Concurrence is necessary

NOTE ; I) These are overall variations in original estimates and can not be exceeded even if more than one revised estimate is sanctioned.

ii) This delegation will not affect rules in force regarding material modification. iii) In case excess over estimate exceeds limits under clause a or b above, it should be approved by the next

higher authority, within his power of sanction.

Sl. No



Officers DRMs JAG

Sr. Scale

REMARKS

3(b) Item No. 40(2) (2) & Bd’s letter No. F(X)II-2003/ PW/10 dtd 9.01.04.

Sanction of excess over the estimated cost of Machinery & Plants included in M&P Program.

CME/CEE/PCE/CSTE - Upto 25% of original cost or Rs. 25 lakhs whichever is less. SAG - Upto 10% of original cost or Rs. 10 lakhs whichever is less.

DRM/CWM– Upto 10% of original cost or Rs. 5 lakhs whichever is less.

NIL NIL Finance concurrence is necessary.

NOTE : Revised M&P estimate involving material modification costing more than Rs.5 lakhs each will have to be referred

to Rly. Board (Authority: Bd’s letter No. F(X)II/94/PW/3 dt. 2.8.95).

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

3(c) Item No. 40(3) & Bd’s letter No. F(X)II-2003/ PW/10 dtd 09.01.04.

Surveys-excess upto 20% on an original estimate sanctioned by higher authorities.

CAO(Con) & SAG Officers at HQ - Full powers.

NIL NIL NIL Finance concurrence is necessary

3(d) i) Excess over estimates for deposit works, if the work is wholly chargeable to deposit and the cost being fully deposited by the applicant. (NB: Applicable for both cases i.e where work is wholly chargeable to deposit or where work is partly chargeable to the party and partly to the Rly.)

COM/CTPM – upto their power of sanctioning .(including the

excess)(Provided the addl. Cost is

deposited in advance)

Full Power upto their powers of sanction, including excess, subject to the max. of Rs.3 Crores.

NIL NIL Finance concurrence is necessary

ii) Excess over estimates for deposit works including Private sidings & Assisted sidings partly chargeable to party & partly to Railway and excess cost attributable to the partly, being deposited by the applicant.

PHOD of civil Engg. Deptt. In AGM rank upto Rs.10 crore Other SAG Officers – upto Rs.5 crore.

Upto Rs.3 crore

Civil Engg.

Deptt. – upto Rs.1 crore.

NIL

Finance concurrence is necessary

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Sl. No




REMARKS

4. Item No.49. Bd’s letter No. F(X)II-2003/ PW/10 dtd 09.01.04. Para 1114E

MATERIAL MODIFICATION i) Sanction of material modification estimated to cost Rs.30 lakhs in a project sanctioned by GM or higher authority subject to the following :

The excess or the revised cost of the estimate does not go beyond their power of sanction.

ii) Sanction of material modification estimated to cost Rs.50 lakhs in safety related works under Bridge works, S&T & track renewal

iii) Minor modifications subject to observance of Board’s instruction No.74/W5/CGT/C/II dt.29.12.75 & CRB’s D.O.No.76/W5/LCT/5 dt.15.4.76.

PHODs Upto Rs.15 lakhs.

PHODs Upto Rs.15 lakhs Full powers within their respective powers of sanction

DRM/CWM-

Upto Rs.10 lakhs. DRM/CWM -

Upto Rs.10 lakhs.

Full powers within their respective powers of sanction

NIL

NIL

NIL

NIL

NIL

NIL

Finance

concurrence is

necessary.

-do-

-do-

5. Para 587 of Financial Code.

TRIALS & EXPERIMENTAL WORKS

To incur expenditure on trial & experimental works and special works chargeable to Revenue within the sanctioned budget allotment and subject to restriction imposed by the Code Rules, Rly. Board and GM from time to time

Upto Rs.50,000/- in each case subject to a ceiling of Rs.2 lakhs per annum.

DRM/CWM - Upto Rs.25,000/- in each case subject to a ceiling of Rs.1 lakh per annum.

Upto Rs. 10,000/- in each case subject to a ceiling of Rs.50,000/- per annum

NIL


Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

6. 1103-E ACCIDENT & EMERGENCIES. To invite tenders for essential works to safeguard or restore communication interrupted by floods, earthquakes or accidents prior to sanction of detailed estimate and allotment of funds subject to issue of urgency certificate.

PHOD/CHOD of Engg. Dept. – Upto Rs.1 Crore

Upto Rs.50 lakhs per case.

NIL NIL Finance concurrence

is necessary.

7. 1706E COMPLETION REPORTS. Sanction of completion report of works for which the original estimates are successively revised and sanctioned.

PHOD/CHOD of Civil, Mech, Elect & S&T can sanction completion estimate upto their powers of sanction as laid down in Sl.No.(2).

Same as Col.4.

Same as Col.4.

Same as Col.4.

- do -

NOTE : While preparing completion report brief explanation should be furnished for – 1) Excess of not less than 10% or Rs.25000/- whichever is less over the estimated provision under each sub-work.

2) Saving of not less than 20% or Rs.1 lakh whichever is less occurring under any sub-work.

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Sl. No



Officers DRMs JAG

Sr. Scale

REMARKS

8(a) Rly. Bd’s letter No. 2007/CE-I/CT/13 dtd 27.08.13 & letter No. 2007/CE-I/CT/13(i) dated 26.11.2013.

TENDERS/CONTRACTS/ AGREEMENTS.

To invite and accept open tenders and enter into contracts in respect of sanctioned works subject to the constitution of tender committee (Annexure – “A”) to deal with tenders vide para 1255E except in cases where foreign exchange is involved subject to observance of extant rules and regulations.

i) AGM/PHOD(HAG) /CAO/C(HAG) – Upto Rs.75 Crores ii) CHOD(SAG) / CAO/C(SAG) – Upto Rs.50 Crores iii) SAG – Upto Rs. 12 Crores.

i) DRM/CWM – Upto Rs.12 Crores. ii) ADRM – Upto Rs.8 Crores

Upto Rs.3 Crores

Nil

Invitation of Open Tender does not require finance concurrence.

NOTE : 1. PHOD may invite only open tenders for works of value over their limits of power for acceptance upto GM’s powers of

acceptance. 2. i) Minimum Tender Notice period is one month. ii) CAO(C) and DRM are empowered to reduce the minimum tender notice period for small value tenders from one month to 21

days wherever considered necessary without finance concurrence, provided that bid documents, site survey reports, plans etc. are ready and such reduction in tender notice period does not restrict the level of competition.

iii) CAO(C)/DRM with concurrence of FA&CAO(C) / FA&CAO can further reduce minimum tender notice period from 21 days (but not less than 12 days in any case) in rare exceptional circumstances in case of small value works.

iv) Works of value upto Rs.50 lakh (Rupees Fifty lakh) shall be deemed as ‘small value works’. v) In the above table, JA Grade denotes both JAG and SG level officers for all departments.

Sl. No



Officers DRMs SG /JAG

Sr. Scale

REMARKS

8(b) Item 47 of GM’s SOP vide Board’s letter No. F(X)/II-2007/PW/4 dt. 21.09.07, 1212E, 1214E, Bd’s letter No. 94/CE-I/CT/4 dt. 17.10.2002, letter No. 2007/CE-I/CT/18 dtd. 28.09.07 and letter No. 2013 / CE-I/CT/O/20/PO/ Pt.II(ii) dt.26.11.13

i) To invite Limited Tenders upto Rs.7.50 crore from the contractors borne on the approved list which should be properly maintained. ii) To accept the above.

PHOD/CHOD/ CAO(C) / CAO(C) in SA Grade - More than Rs.1.50 crore and upto Rs.7.50 crore. SAG officers – More than Rs.37.5 lakhs upto Rs.1.5 crores Same as item No.8(a) i.e. for Open Tenders.

DRM/CWM - More than Rs.37.5 lakh and upto Rs.1.50 crore.

Same as item No.8(a) i.e. for Open

Tenders.

Upto Rs.37.5 lakhs.

Same as item No.8(a) i.e. for Open

Tenders.

Nil

Nil

Finance concurrence is

necessary

NOTE ; i) List of approved contractors should be properly maintained and tenders called from amongst the contractors to be borne on the approved list. ii) The minimum number of contractors to be borne on the approved list should not be less than 10. iii) Approved list of contractors should be updated annually, without fail. iv) Criteria laid down by Board from time to time for being borne on the approved list for the specific category of works should be fulfilled. v) Limited Tenders for Civil Engg. Department only can be invited without concurrence of Finance from the firms borne on the approved list. For

other departments, invitation of Limited Tender requires Finance Concurrence.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

8(c) Bd’s letter No.94/CE.I/ CT/4 dated 17.09.97, 94/CE-I/CT/4 dt.17.10.02 & 2007/CE-I/CT/18 dt. 28.09.07.

i) To call for Special Limited Tender for works or supplies relating to works with finance concurrence. ii) To accept the above.

PHOD/CHOD - Upto Rs.5 Crore for each case Same as Item 8(a) i.e. for open tenders.

NIL

Same as item 8(a) i.e. for Open tenders.

NIL

Same as item No. 8(a) i.e. for Open Tenders

NIL

Same as item No. 8(a) i.e. for Open Tenders


Subject to

constitution of Tender

Committee

NOTE : 1 Special Limited Tenders may be adopted in the following situations in consultation with FA&CAO (Authority: Board’s letter No: 94/CE- I/CT/4 dt.17.10.2002 &

2007/CE-I/CT/18 dt.28.09.07). i) Works of specialised nature (to be approved by the PHOD personally) ii) Works of Urgent nature (to be approved by the GM / CAO/C personally). iii) Consultancy works (to be approved by the GM personally).

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iv) While exercising the powers for award of tenders under clause 8(b) & (c) minimum eligibility criteria stipulated as per Railway Board’s letter No. 94/CE-1/CT/4 Dtd. 17.10.02 for contracts above Rs. 10 lakhs must be ensured.

v) Special limited tenders may be invited from specialised and reputed contractors/organizations/agencies. vi) A proposal detailing the circumstances and the necessity for going in for Special Limited Tenders should be initiated and got concurred by FA&CAO (in

respect of Open Line) and FA&CAO(C) in respect of Construction Organization) before personal approval of the PHOD is obtained. vii) Tenders from whom special limited tenders are to be invited should preferably be more than six but not less than four. viii) Tenderers need not necessarily be borne on the approved list.

Sl. No



Officers DRMs JAG

Sr. Scale

REMARKS

8(d) RB’s letter No. 93/W2/PQR/SC/4/Pt. dated 27.09.96

To call for Single Tender for works contract for restoration of traffic.

PHOD – Upto 20 Lakh per case subject to annual limit of Rs.1 Crore.

DRM – Upto 10 Lakh per case subject to annual limit of Rs.50 Lakh.

Nil Nil Finance Concurrence is necessary.

8(e) Item No. 47 of GM's delegation.

To call and Accept Tenders for cleaning of factory waste / rubbish / garbage / Ash handling and cinder picking contracts. (i) Open Tender - (II) Limited Tender -

CME/PHOD - Upto Rs. 20 lakhs per case subject to annual ceiling of Rs. 50 lakhs only in a financial year. COM/CME - Upto Rs. 3 lakhs (annual value)

DRM/CWM - Upto Rs. 10 lakhs per case subject to annual ceiling of Rs. 25 lakhs only in a financial year (including sick-

lines/depots/POH Depots)

DRM/CWM - Upto Rs. 1 lakhs (annual value)

NIL

NIL

NIL

NIL

Finance Concurrence is not necessary subject to provided works sanctioned with concurrence of finance vide Item No 4(c) of

USOP Pt. D..

Finance Concurrence is necessary.

8(f) RB’s letter No. 94/CE-I/CT/4 dated 17.09.97

To invite tender in view of extreme urgency in exceptional cases before sanction of the detailed estimate.

PHOD – Upto Rs.1 Crore.

DRM – Upto 50 Lakhs.

Nil Nil Finance Concurrence is necessary.

Note : i) Personal sanction of PHOD and DRM is necessary as applicable. ii) Award of contract will only be after sanction of detailed estimate and specific allotment of funds.

Sl. No



Officers D R Ms JAG

Sr.Scale officer in

independent charge

REMARKS

9. Bd’s letter No. 2007/CE-I/CT/18/Pt. dt. 05.03.09

To dispense with tender and to invite and accept quotation with finance concurrence

Upto Rs.4 lakh in each case subject to annual ceiling limit of Rs.40 lakhs.

DRM/CWM/ADRM - Upto Rs.4 lakh in each case subject to annual ceiling limit of Rs.40 lakhs.

Upto Rs. 2 lakh in each case subject to an annual ceiling limit of Rs. 20 lakhs.

Upto Rs.1 Lakh in each case subject to annual ceiling limit of Rs.5 lakh.


Note : These powers will be exercised by the officers with their own administrative approval and no separate administrative approval

is necessary. (i) Normally powers to dispense with calling of tenders should be exercised sparingly. The circumstances under which quotations have to be

called should be spelt out. (ii) The work should not be split up for the purpose of bringing it within the ambit of this dispensation. (iii) The reasonableness of rates should be gone into objectively and in detail by the accepting authority. (iv) Quotations should not be for items which can be executed through the existing contracts including zonal contracts. (v) Quotations should not be for fancy (expensive but of low utility) items. (vi) Quotations should only be for works which are urgent in nature. (vii) Quotations should normally be invited from at least three well experienced contractors / agencies not necessarily borne on the approved list

Division / HQ. (viii) Accepting Authority must take precautions to see that the quotations are from genuine firms (and not from fictitious firms). (ix) A Register showing the full particulars of works authorized through quotations will be maintained by the officer having powers to dispense

with calling of tenders. The register shall be sent to associate finance while seeking their concurrence. DRM/ADRM should have a monthly review as a matter of control.

(x) These powers shall be exercised only by field officers and their controlling HODs and not by other Head Quarters Officers' incharge of Planning, Design etc.

(xi) DRM/CWM power is subject to the CWM being a SAG Officer, If not, CWMs will be guided by JAG/SG’s Power.

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Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

10 1259E To sign the contract and subsidiary agreement on behalf of President of India provided the award of contract has had the sanction of the competent authority.

PHOD/CHOD - Full powers i.e. including GM’s level of acceptance. SAG – Rs.6 Crore to Rs.60 Crore.

DRM/CWM/ADRM – Upto Rs.20 crore.

Upto Rs. 6 Crore.

Upto Rs.1

Crore.

i) The signed contract documents need to be vetted by Finance before payment. ii) The financial limit as per the revised constitution of TC & Accepting circulated vide this office Circulated No. G.176/15-W/Pt. Iv dt. 26.10.06, 03.11.06 &

8/9.11.06.

11 Bd’s letter No. F(X)-II-99/PW /3 dated 20.10.99. & CS No. 02 circulated vide letter No. G.176/15-W/ Pt. IV dated 26.12.05 & FX/II-2004/ PW / 8 dt.30.11.05. FX/II-2011/ PW / 51 dtd. 26.8.13

Annual maintenance contract for equipments on single tender basis to be placed on authorised dealer.

PHOD – upto a maximum of Rs.10 lakhs per item per annum.

DRM – upto a maximum of Rs.10 lakhs per item per annum CWM – upto a maximum of Rs.5 lakhs per item per annum


Note : i) However before entering into AMC with OEM/Authorised dealer competent authority should ensure that such AMC with OEM or Authorised Dealer is required.

ii) The extant rules laid down should be followed in case calling of tender is dispensed with. iii) The AMC can be of the following types :- a) “Full service maintenance agreements” which as the name implies is all inclusive of labour, consumables and spares. b) “Annual Maintenance Agreements” where labour and consumables are included. Minor repairs can be processed as part of

AMC as and when these occur. A schedule of rates for spares and non recurring spares can be drawn up before entering into the AMC to facilitate fixing of rates during AMC.

iv) It is also to be understood that the cost of yearly AMC is to be defined clearly. The materials from spares list actually used together with AMC value should not exceed the sanction limit.

v) Other instruction of Board’s letters referred above will remain unchanged. OEM – Original Equipment Manufacture.

Sl. No



Officers DRMs JAG

Sr. Scale

REMARKS

Variation in quantities specified in contracts (Other than Zonal Contract) 12(i) Bd’s letter No.

94/CE-1/CT/4 dt. 17.10.02 & No.2007/CE-I/CT/18 dt. 28.09.07.

Increase in quantities specified in contract.

Upto 50% excess of the original contract value in respect of contracts, which can be accepted (upto 25% excess in case of Zonal Contract).

DRM / CWM – Upto 50% excess of the original contract value in respect of contracts, which can be accepted (upto 25% excess in case of Zonal Contract).

JAG / SS - Upto 50% excess of the original contract value in respect of contracts, which can be accepted (upto 25% excess in case of Zonal Contract).

Finance concurrence is necessary where overall variation or variation against individual N. S Item exceeds + 25%, except in case of minor items (item value being less than 1% of the augmental value) where the limit should be considered as + 100% and in case of Zonal contract such limit may be considered as +10% of the contract value subject to clear availability of fund to be certified by associated finance.

NOTE i) The total value of the amended contract should not exceed the powers of the authority who approved the original contract. In case of contracts accepted by GM, PHOD / CHOD can approve variation upto 25% of accepted tender value or Rs.25 Lakhs whichever is less.

ii) For Tenders accepted by G.M., variation upto 125% of the original agreement value can be accepted by G.M., even if verified agreemental value is beyond GM’s power of acceptance. For Tenders accepted by Railway Board or Higher Authority, variation upto 110% of the agreemental value can be accepted by G.M.

iii) Payment against variation beyond +25% against individual non stock items / overall agreemental value would be made as per agreemental rate. Increase in quantity of an item by more than 25% of agreemental quantity, if considered unavoidable, can be got executed by floating fresh tender. If fresh tender is

A 10


considered not practicable, negotiations may be held with the existing contractor for arriving at reasonable rates for additional quantities in excess of 125% of agreemental quantity.

iv) No quantity variation limit shall apply for foundation item. For SOR items, the limit of 25% would apply to the value of SOR scheduled as a whole and not on individual SOR item. 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).

v) During the execution of the work, vitiation due to variation in quantities must be avoided. Should vitiation occur, the sanction of the competent authority with concurrence of the finance as per single tender shall be obtained.

vi) In all cases, variation statement should be got sanctioned by the competent authority and signed by the concerned Executive Officer. vii) This supersedes the instructions regarding dealing with variations beyond +25% to obtain GM’s sanction, as per Engineering Standing order No.12.

Sl. No



Officers

DRM/CWM/ADRM/ SAG Officers in

field units

Divisional Officers, Extra Divisional

Officers & Officers in HQs

REMARKS

12 (ii)

Decrease in quantities specified in contract.

Full powers in respect of contracts accepted by them.

Full powers in respect of contracts accepted by them.

JAG / SS - Full powers in respect of contracts accepted by them.

Finance concurrence is necessary.

NOTE : i) For decrease in quantities upto -50% in individual item, no finance concurrence is necessary. ii) For decrease in quantities more than upto -50% in individual item, provided variation is less than Rs.1 lakh, no finance

concurrence is necessary. iii) For cases not falling in item (i) & (ii) above, finance concurrence is necessary. iv) It shall be certified that quantities proposed to be reduced will not be required in the same work at a later stage. v) It shall be ensured that due to decrease in quantities the tender is not vitiated. In case of vitiation of the tender, sanction of the

competent authority with finance concurrence as per single tender shall be obtained.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

13(a) (i) Introduction of a new item based on existing schedule of rates in an existing contract provided the limit of powers delegated to them in respect of sanction to excess over estimates and acceptance of tenders are not exceeded and further provided that the new item is subjected to the same contract percentage above or below and also subject to limitation of variation.

(ii) Introduction of a new item based on existing schedule of rates irrespective of value in contracts approved by GM or Rly. Board and subject to stipulations that total value of enhancement in contract is limited to 50% of the original contract value.

Full Power

PHOD/CHOD of Civil Engg. Dept, CAO(Con)/. – upto 50% of the original contract value or Rs.25 lakhs whichever is less for each contract.

DRM/CWM– full power

NIL

Full Power

NIL

Full power

NIL


- do -

NOTE : For introduction of New item under (i) or (ii) above, no concurrence is required upto powers of sanction, subject to overall variation being less than 50% of contract value and individual items costing less than Rs.1 Lakh.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

13 (b) RB's letter No. 2007/CE-I/CT/1 dt. 13.8.07

i) Introduction of a new (non-standard) item in works contract, to excess over estimates and acceptance of tenders thereof.

CAO/Con - Upto Rs. 25 Lakhs. SAG (Con) - Upto Rs. 10 lakhs. PHOD/SAG – Rs. 5 lakhs.

DRM/CWM– Upto Rs. 3 lakhs.

Upto Rs. 50,000/-

NIL

Finance concurrence is necessary except for the cases vide note (viii) to (x).

NOTE : i) This power is to be exercised only in respect of contracts value not exceeding power of their acceptance. ii) This power is subject to stipulation under item 12 (i) above. iii) Rate analysis should be carried with finance concurrence and negotiation conducted with the contractor, after sanction of rate analysis by tender

accepting authority. iv) Rate of such NS Items accepted without finance concurrence cannot be quoted as Last Accepted Rate (LAR) for justifying similar rate in future tenders.

A 11


Only rate obtained through competitive tenders can be adopted as LAR. v) New items should be inherently arising out of the work being executed and should not change the nature / scope of the contract i.e. value of new item /

items should in no case exceed 15% of agreemental value, nor additional works / assets which can be executed through a separate tender, be included. vi) List of new items executed and sanctioned should be sent quarterly to PHOD for dissemination to all units. vii) viii)

The proposal for inclusion of new item should have the approval of competent authority (i.e. accepting authority). The powers delegated for introduction of non-standard item should be on the basis of a contract as a whole not as "Per Item". Finance concurrence is not necessary.

ix) For cases upto Rs. 5 lakhs in a contract or 10% of the original value of the contract whichever is lower for PHOD/HOD/SAG Officers at HQ. x) For cases upto Rs. 3 lakhs in a contract or 10% of the original value of the contract whichever is lower for DRM/CWM. xi) For cases upto Rs. 50,000/- or 10% of the original value of the contract whichever is lower for SG/JAG Officers.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

13(b) ii) Introduction of any new non-schedule items, irrespective of value of contract approved by GM or Railway Board subject to stipulation that total implication of variation in quantities and variation in items is limited to 50% of original contract value.

PHOD/CHOD, of Civil Engg. Dept., CAO(Con) – upto 50% of the original contract value or Rs.25 lakhs whichever is less for each contract.

NIL NIL NIL Finance concurrence is necessary

14 Item No.48 of GM’s Sch. Of Powers (Bd’s letter No. F(X)II/ 2003/PW/10 dt. 9.01.04..

To grant of advance to contractors before execution of work, subject to :- i) Mobilisation advance upto 10% of the contract value. ii) Advance against new machinery and plant upto 10% of contract value or 75% of value of the new machinery and plant brought to the site of work whichever is less. iii) Advance for accelerating the progress of work in special circumstance upto 5% of contract value or Rs.5 lakhs whichever is less.

Full powers in respect of contracts approved by them.

DRM/CWMfull powers in respect of contracts approved by them.


NOTE (a) All advance mentioned above shall be subject to levy of interest @ 18% (vide Bd’s letter No.90/CE-I/CT/1 dt. 21.5.97 & dt. 25.6.99) or as prescribed by Board from

time to time. Advances above will be subject to submission of bank guarantee from a Nationalised or Scheduled Bank. (b) In tenders for works which are capital intensive and of a specialised nature, if the estimated value of tender exceeds Rs. 1 crore and if the work warrants grants of

advance, suitable provisions should be included in the special conditions. (c) The exercise of above powers will be subject to the conditions laid down in the para 1264(i), (ii) & (iii) of Engineering Code and also as per Rly. Bd’s letter No.85/W-

1/CT/23GCC dt.31.1.86, 10.2.87 & 31.8.88. (d) The advance granted to the contractors should be recovered in full from the on account bill by the time the value of the work reaches 75% of the original value of the

contract. No advance must be given against old plant and machinery (Bd’s letter No.90/CE-1/CT-1 dt. 21.5.97). (e) Exercise of powers is subject to value of the contracts being within their power of approval and acceptance. (f) Mobilisation advance is to be paid in two installments of 5% each as per present instruction of Board. (g) The advance may be sanctioned only if the same has been indicated in the tender condition or if the tender quoted the same and the same has been accepted by

the tender committee and accepting authority

Sl. No


Nature of Power PHOD / HOD DRM JAG Sr. Scale

REMARKS

15 (a)

1266E To extend the date of completion of contracts provided the extension will not result in any financial loss/inconvenience to the Administration and a tender other than the lowest has not been accepted on ground of earlier completion of work or quicker supply of materials. The above does not require finance concurrence. In all other cases prior concurrence of associate finance is necessary for granting extension.

PHOD/CHOD - Full power even for contracts accepted by higher authorities including Rly. Board.

DRM/CWM - Upto their normal power of acceptance.

Upto their normal power of acceptance

Nil

Please refer Col.3 for finance concurrence.

Note to 15(a) : For extension of date of completion of contracts having PVC clause, prior finance concurrence is required as it will result in financial loss to Railway.

A 12


Sl. No


Nature of Power PHOD / HOD DRM JAG Sr. Scale

REMARKS

15 (b)

RB’s letter No. F(X)II-2006/PW/11 dtd. 07.01.13

Extension of time specific contracts such as hiring of vehicle, cleaning contract, AMC etc.

AGM – Full power Nil Nil

Nil


Note to 15(b) :

i) Such extensions of time specific contract can be considered for a short period when fresh tender could not be finalised due to some exigencies but uninterrupted service is felt essential.

ii) Such extension can be sanctioned by AGM provided the continuation of the work i.e. hiring of vehicle, cleaning contract etc. is already approved by GM/AGM/Competent Authority who is empowered to sanction the work.

iii) Such extension beyond the specific period can not be brought under variation in contract as it is a time specific contract. iv) Other quantitative variation in the works not covered with a specific time period can be dealt as usual as per GCC.

15 (c)

RB’s letter No. F(X)II-2006/PW/11 dtd. 07.01.13

Sanction for renewal of vehicle hiring contract through fresh tender for vehicle hiring cases already approved earlier by GM / AGM.

AGM – Full

power

Nil Nil

Nil

Finance Concurrence is necessary.

Note to 15(c) : “Renewal” here means continuation of existing contract after expiry of ongoing contract already entered into with the sanction of GM for the first time in case of non-AC vehicles.

Sl. No




REMARKS

16 1261-E Forfeiture of Earnest Money & Security Deposit

Full powers in respect of tenders accepted by them.

DRM/CWM - Full powers in respect of tenders accepted by them.



Finance concurrence not required

17 1261-E Refund of Security Deposit. Full powers in respect of agreements signed by them provided they are satisfactorily completed.

DRM/CWM- Full powers in respect of agreements signed by them provided they are satisfactorily completed.

Full powers in respect of agreements signed by them provided they are satisfactorily completed.

Full powers in respect of agreements signed by them provided they are satisfactorily completed.

Finance concurrence not required

NOTE : 1) Provided maintenance period or guarantee period, if any, is satisfactorily completed and there are no dues to be paid /recovered from the contractor.

2) ‘No claim’ Certificate is furnished by the Contractors.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

18 1267E To waive penalty leviable under the terms of contract.


DRM/CWM - Full powers in respect of tenders accepted by them.



NOTE : This does not include waival of risk and cost or any other loss/inconvenience actually incurred by the Railways.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

19 1270E To terminate a contract in accordance with the condition of contract.

PHOD/CHOD/SAG - Upto their powers of accepting contract.

DRM/CWM - upto their powers of accepting contract.

Upto their powers of accepting contract.

Upto their powers of accepting contract.

Finance concurrence and legal vetting is necessary.

20 Item 36 of GM’s Schedule of Power vide Bd’s letter No. F(X)II-2003/

ARBITRATION. Payment of claim settled by arbitration award against any dispute arising out of a contract.

Full powers in respect of contracts within their powers of acceptance subject to the conditions that Rly. Bd. should

NIL

NIL

NIL

Legal vetting & finance concurrence is necessary.

A 13


PW/10 dtd 09.01.04.

be informed of the details. (i) Where payment to a contractor as a result of the arbitrators award exceeded by more than Rs.50000/- of the amount considered due by the Railway Administration before the arbitration proceedings began. (ii) Where deficiencies in the General Conditions of contract or procedure laid down by the Railway Board came to light (iii) and also subject to the condition that the awards accepted by them should be put up to GM along with their comments for information.

21 Item 35(ii) of GM’s Schedule .of Powers. vide Bd’s letter No. F(X)II-2003/PW/ 10 dtd 09.01.04.

Claims Decreed by Court of Law duly vetted by Law.

Full powers in consultation with Law Officer.

DRM/CWM –Full powers in consulta-tion with Law Officer.


Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

22 (a)

Bd’s letter No/96/Track-III/TK/28 dt.9.9.98

Emergency repairs and purchase of spare incidental to such repairs for track machines.

CTE - Upto Rs.1 lakh per breakdown with finance concurrence.

Same as Col.4

Dy.CE/TT Upto Rs.20000/-per break down without finance concurrence where purchase of PAC is not involved. Where purchase of PAC spares is involved each PAC item costing more than Rs.10000/- should be purchased with prior finance concurrence. The annual ceiling limit will be Rs.10 lakhs.

XEN (TMC) Upto Rs.10000 per break down without finance concurrence This excludes purchase of any PAC spares. The overall annual ceiling will be Rs.5 lakhs.

For Finance concurrence, please refer respective columns of powers delegated to officers.

NOTE : 1. Repairs upto Rs.50,000/- can be done on quotation basis as per power delegated above. For cost above Rs.50,000/- and below Rs.1 lakh, SAG Officers /DRMs are empowered vide Col.4 & 5 above for repairs on single tender basis from OEM approved sources.

i) The overall annual ceiling for purchase / repairs using these powers will be Rs.20 Lakh. ii) Cases exceeding Rs.1 Lakh would require AGM / GM sanction with prior Finance Concurrence. iii) Procurement of spare parts along with emergency repair should not be piece-meal to avoid Finance Concurrence and the

purchase should be resorted to only when planned procurement has not materialised. iv) The annual year for the ceiling prescribed would be the Financial year. v) A register showing the details of expenditure incurred on each break down should be maintained so as to enable a watch being

kept over the ceiling limit prescribed. vi) The spare parts should be taken from the OEM / approved sources and the reasonableness of rates should be ensured by the

delegated authority. vii) For normal maintenance, the above delegation shall not apply.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

22 (b)

Bd’s letter No.96/TRACK-III/TK/28 dt.9.9.98.

Procurement of spare, consumables and small tools required for maintenance of Track Machines.

PCE – same as that of COS. CTE/TM – Same as that of CMM.

NIL Dy.CE/TT same as that of Dy.CMM.

XEN (TMC) Same as that of SMM.


NOTE : I) The tender committee, wherever necessary, may be constituted with the Engg. Officer of appropriate level as the Convenor and other members from Finance and Stores department as per the schedule of powers of Stores matters delegated on the Zonal Railways.

ii) In case of proprietary items (PAC items), necessary certificate should be accorded by the competent official of the indenting department.

A 14


Sl. No


Nature of Power PHOD/HOD/SAG Officers D R Ms JAG Sr.

Scale REMARKS

23 Item 46 of GM’s Schedule of powers vide Bd’s letter No. F(X)II-2003/ PW/10 dt.09.01.04.

LAND AND BUILDING. To sanction expenditure with rules contained in the Indian Railways Code, if any, general or special orders issued by Rly. Board to higher authority on the following :- (A) Acquisition of land i) Against provision made in a sanctioned estimate. ii) In case of urgency as per paras 913E and 914E.

PCE, CAO(C) - full power. PCE, CAO(C) - full power

Full power Full power subject to para 914E & reporting to the higher authority immediately.

Dy.CEs, Sr.DENs – Full powers.

NIL

NIL

NIL


-do-

Sl. No


Nature of Power PHOD/HOD/SAG Officers D R Ms JAG Sr. Scale

REMARKS

24 Item No.27 of Bd’s letter No. F(X)II-2003/ PW/10 dtd 9.01.04.

To waive off ground rent of plots occupied by rejected store or sold materials and commercial plots at stations.

NIL DRM - upto Rs.2,500/- per case subject to annual limit of Rs.15,000/-


NOTE ; Normal procedure of tender should be followed in case the value exceeds Rs.50000/-.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

25 Letting out to outsiders of Rly.’s residential and other buildings not required for housing of Rly. Staff and for any other Rly. Purpose in foreseeable future. Powers to lease Rly. Buildings are reserved with the General Manager. Note: These powers will be exercised sparingly.

PHOD/CHOD of Engg. Deptt, upto 12 months in each case subject to observance of Codal provision and the following :- a) Rent to be charged should be the highest in terms of para 1961-E subject to a minimum of 9% of the capital cost of accommodation. This 9% is made up of 6% interest and 3% repairs & maintenance. b) Agreements should be executed on the standard form and actual charges for water, electricity and

Upto 6 months only in each case subject to the fulfillment of conditions laid down in the code and the following :- a) Rent to be charged should be highest in terms of para 1961E subject to minimum of 9% of the capital cost of accommodations. This 9% is made up of 6% interest and 3% repairs & maintenance. b) Agreement should be executed on the standard form and actual charges for water,

NIL

NIL

NIL

NIL Finance concurrence is necessary.

-do-

A 15


conservancy when provided by the Railway.

electricity and conservancy when provided by the Railway.

26 Finance Code Para 1040

To sanction of payment of rent rates and taxes of building occupied as offices.

PHOD/CHOD - Full power.

DRM/CWM- Full power.


NOTE : Laid down codal provision to be followed.

Sl. No



Officers

D R Ms JAG

Sr. Scale

REMARKS

27 Item No.44 of GM’s Schedule of power, Bd’s letter No. F(X)II-2003/ PW/10 dtd 09.01.04.

To sanction payment of compensation for damage to private properties in connection with surveys.

PCE/CAO(C)/CEE/ CSTE - Upto Rs.10000/- in each case subject to annual ceiling limit of Rs.1 lakh.

Upto Rs.5000/- in each case subject to annual ceiling limit of Rs.50,000/-


Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

28 Para 1906 & 1921-S of Bd’s letter No.64/WE/CT/55 dated 27.3.67 & 23.2.80.

To issue plant from Engg. Plant reserve works and to transfer plant released from work direct from one work to another a) On this Railway. b) To other Railways on loan. c) To Private parties/other Govt. Deptts.

Full power PCE, CAO(C) – Full power PCE/CAO(C) – Full powers with finance concurrence and ensuring adherence to codal rules regarding hiring of Engg. Plant as para 1904, 1923 to 1929 of Stores Code.

Full power

NIL

Full power

Full power NIL Full power

Full power

NIL Full power

Finance concurrence is not necessary

-do- Finance concurrence not required if provided in agreement otherwise finance concurrence is required.

NOTE : i) Adjustment memos(AM) should be prepared and submitted to accounts office for concurrent adjustments, for item (a) & (b) above.

ii) Plants can only be spared if they are separable and the usual conditions are agreed to and provided also the plants are handled by Railway Departmental labours.

iii) Necessary hire charges are to be recovered as per extant rules with finance concurrence.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

A 16


29 Bd’s letter No. 74-EB/ 3000 dated 14.1.75. Clause No.31 of GCC and Bd’s letter No.74-EB/ 3000 dated 14.1.75

i) Supply of water to Railway by outsiders.

ii) Water tap connection to outsiders including Railway Contractors doing railway work as per provision of the agreement.

PHOD/CHOD of Civil Engg. Dept. - Upto an estimated annual charge of Rs.5 lakhs. subject to execution of agreement. PHOD/CHOD of Civil Engg. Dept. - Upto an estimated annual charge of Rs.5 lakhs. subject to execution of agreement

DRM - full powers Upto an estimated annual charge of Rs.10 lakhs. subject to execution of

agreement. CWM - full powers Upto an estimated annual charge of Rs.2 lakhs. subject to execution of agreement

DRM/CWMfull powers Upto an estimated annual charge of Rs.2 lakhs. subject to execution of agreement

Full powers Upto an estimated annual charge of Rs.50000/- subject to execution of agreement. Full powers Upto an estimated annual charge of Rs.50000/- subject to execution of agreement.

NIL

NIL

Finance concurrence is necessary Finance concurrence is necessary in case there is no provision in agreement.

NOTE : 1) Agreement duly vetted by Finance if it is not in standard form, should be executed with the party for (a) & (b). 2) The rate of recovery for (ii) should be fixed with finance concurrence. 3) Necessary recovery of charges for items 30 (ii) to be done with finance concurrence 4) Railways being a good paying authority, charges to be levied should be at par as for other similar consumers. 5) A system of check on quantum of supply and billed shall have to be kept too.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

30 Bd’s letter No.74-EB/ 3000 dt.14.1.75.

a) Lease by public auction or tender of usufruct of trees and sale of live and dead trees. b) Right for fishing in ditches etc. in Railway limits. c) To cut grass etc. in Railway limits.

PHOD/CHOD of Civil Engg. Dept. – Full power. SAG officers of Civil Engg. Deptt, - Full power.

-do-

-do-

DRM/CWM - full power.

-do-

-do-

Full power.

-do-

-do-

Full power

-do-

-do-


-do-

-do-

NOTE : I) In respect of lease of right of fishing by public auction or tender, the first preference should be given to Fishermen’s Co-operative Societies formed by Railwaymen. If no such society exists, the second preference should be given to other Fishermen’s Co-operative Societies only. If no such Society also exists it should be done by open public auction or by tender.

ii) DRMs will have full powers to settle dispute if any between the Railway and Licensee of Fishing right.

Sl. No



Officers DRM JAG

Sr. Scale

REMARKS

31 Purchase of saplings for tree plantation.

PCE – Full power upto annual ceiling limits of Rs.5 lakhs.

DRM - Upto Rs.10,000/- for each case subject to annual ceiling limit of Rs.2.5 lakhs. CWM - Upto Rs.5,000/- for each case subject to annual ceiling limit of Rs.1lakh.

Sr. DEN in-charge -Upto Rs.5,000/- for each case subject to annual ceiling limit of

Rs.50,000/-.


NOTE : 1) The procurement of saplings should be made from the Government Nurseries.

A 17


2) All purchase of seedlings/saplings should invariably be made from District Forest Officers from Agriculture Department, Horticulture Department or other Government agencies. For purchases from other than Govt. Agencies, the approval of Sr. DEN should be taken.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

32 Para 1923S

Hiring of plant and machinery from outsiders or Govt. Bodies in case of emergency relating to accidents, breaches, safe movement / restoration of traffic.

PHOD/CHOD (Civil, Elect., Mech.) – Upto Rs.5 Lakhs per occasion subject to annual ceiling of Rs.20 Lakhs

Upto Rs.3 Lakhs per occasion subject to annual ceiling of Rs.10 Lakhs

Upto Rs.25,000/- per occasion subject to annual ceiling of Rs.1 Lakhs


NOTE : i) Tender system should be resorted to if the value is more than Rs.2 Lakhs. ii) If the value is less than Rs.2 Lakhs, then extant rules regarding quotation system should be followed.

A 18


Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

33 Rly.Bd’s letter No.97/LM(L)24/3 dt.10.7.98.

To grant permission for way leave facilities/easement right on Railway land for: a) Passage/pathway on/across Railway land, cattle crossings. b) Public road by local bodies/state govt/govt. and autonomous bodies, charitable /welfare organisation. c) Water/sewage/effluent/oil/ Gas pipeline crossing. d) Electric line crossing for individual houses, shops, Electricity Board and Central Agencies etc. (both underground and overhead) e) Underground water/ sewage/effluent/gas/Oil pipeline. f) Open drains and over ground water/sewage/oil/ gas/effluents pipelines by private parties (including Public sector undertakings.

PHOD/CHOD - Full power

-do-

-do-

-do-

-do-

-do-

Full powers in consultation with associate finance without any further re-delegation and after proper execution of agreement.

-do-

-do-

-do-

-do-

-do-

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL


-do-

-do-

-do-

-do-

-do-

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

34 Execution of agreement for licenses for outsiders for laying pipeline or for building wharves for stacking coal etc. on Railway land or other purpose connected with the Railway working.

Full power to sign agreement subject to approval of license by the competent authority.



Same as Col.6


35

1230-E & 1209E with Advance correction slip No.35

ZONAL CONTRACTS To issue work order on zonal contracts for new works/additions/alterations/ repairs.

Full Power

DRM/CWM-

Upto Rs.2 lakh in each case.

Upto Rs.2 lakh in

each case.

Upto Rs.2

lakh in each case.

Prior vetting of finance required for values above Rs.1 lakh.

35(i) 1230-E & 1209E

ZONAL CONTRACTS To call for and accept tenders for Zonal contracts as per extant procedure.

PCE / CAO(Con) / CBE - Full powers for awarding Zonal contracts upto 2 years including extension of current contracts upto 1 year provided the total period does not exceed 2 years and with the concurrence of finance.

Full powers in respect of Zonal contracts extending for a period of one year only where tenders are proposed to be accepted for a period exceeding one year, the prior approval of PCE shall be obtained with the concurrence of FA&CAO.

Dy.CEs/ Sr.DENs - Full powers in respect of Zonal contracts extending for a period of one year only where tenders are proposed to be accepted for a period exceeding one year, the prior approval of PCE shall be obtained with the concurrence of FA&CAO.

NIL Finance concurrence is not required for calling of contract.

A 19


Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

36 1217 W 1218 W

Execution of works for outsiders in Rly. Workshops. In all cases, subject to observance of rules for deposit work and deposit of entire estimated amount in advance.

PHOD/CHOD -Upto Rs.10 crore SAG of Engg., Mech, Elec, S&T Rs.5 crore.

DRM – NIL Workshop in-charge Upto Rs.3 crore.

JAG of Engg. Mech. Elec. S&T Upto Rs.1 crore.

NIL Finance concurrence is necessary.

NOTE : This power does not infringe the delegation of CWM of Railway Workshops for direct quotations to non-Railways. Enquiries as communicated vide Ex. Director/Dev/Rly.Bd’s Letter No.94/DEV-Cell/ERR/19 dated 07.12.94 and of even No. dated 20.06.95.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

37 License to Contractors for use of Railway Land for erection of temporary huts for their workmen or for storage of materials during the currency of the contracts only, in accordance with the conditions prescribed there for.

SA Grade of Civil Engg. Deptt. - Full powers in respect of tenders/ contracts within their power of acceptance.

DRM/CWM– Full powers in respect of tenders/ contracts within their power of acceptance.

Dy.CEs/ Sr.DENs – Full powers in respect of tenders/ contracts within their power of acceptance.

DENs/ XENs (Con) – Full powers in respect of tenders/ contracts within their power of acceptance.


NOTE : The contractor shall arrange for handing over of vacant position of the said land after the work is completed and in case, the contractor fails to comply this, the same will be removed by the railway and necessary expenses incurred by the railway in connection therewith shall be borne by the contractor in terms of clause 30 of GCC of Eastern Railway, 2001.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

38 Purchase of electricity from the State Electricity Boards and DVC.

i) For according approval to the proposals of purchase and tariff and entering into contract.

ii) For signing of agreement approved by the competent authority.

CEE- Full powers SAG of Elect. Dept. – Rs.50 lakhs.

CEE- Full powers SAG – Rs.50 lakhs.

Upto Rs.25 lakhs per annum for LT power only.



- do –

Upto Rs.5 lakhs per annum for LT power only (with independent charges Rs.1 lakh in other cases.

-do-


- do -

A 20


Sl. No



D R Ms JAG Sr.

Scale REMARKS

39 Purchase of electricity from Licensees and bodies other than State Electricity Board and DVC in special circumstances.

i) For according approval to the proposals of purchase and tariff.

ii) For signing of agreement for purchases approved by the competent authority.

CEE- Full power

SAG of Elec. Deptt. – Full power

Upto Rs.10 lakhs per annum for LT supply only within the rates approved by CEE.

Upto Rs.10 lakhs per annum.

Upto Rs.25,000/- per annum for LT supply only within the rates approved by CEE.

Upto Rs.50,000/- per annum.

NIL

Upto Rs.25,000/- per annum.


-do-

40 Item No.52 of GM’s Schedule of Powers

Sale of electricity from Railway Source to others inside the Railway premises.

i) For according approval to the proposal of sale.

ii) For entering into contract and signing agreements for sale of electricity after approval of the proposal by competent authority. iii) Sanctioning temporary electrical connection to Railway Institutes and Railway Qrs. on special occasions subject to recovery of charges with finance concurrence.

CEE - upto Rs.5 lakhs in each case. SAG - upto Rs.1 lakh in each case.

Same as in (i) above on an annual basis and in each case.

Full power

DRM/CWM -Upto Rs.1 lakh per month in each case

DRM/CWM - Upto Rs.1 lakh per month in each case DRM/CWM - Full powers

Upto Rs.10,000/- per month in each case.

Upto Rs.10000/- per month in each case

NIL

NIL

NIL

NIL


-do-

-do-

NOTE : 1) The provision of the Electricity Act are not infringed.

2) The supply does not cause any extra outlay either immediate or contingent. 3) The supply can be made without any inconvenience to the Railway and after its full needs have been met. 4)The rates charged allow for profit after taking into account all costs of production, direct and indirect and are above

the rates supplied to Railway employees and 5)The Railway should have power to discontinue the supply without notice and without compensation.

A 21


Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

41 RB’s letter No.FX-II-99 /PW/3 dt.20.10.99 & 06.12.99. Addendum Slip No. 06 to the SOP Pt.A/Works Matter,96 Edition circulated vide letter No.G.176/ 15-W/Pt.II dt.1.2.01.

Waive of Earnest Money/Security Deposit required for AMCs with OEMs/authorised dealers.

PHOD – Full power

Full power


NOTE : 1) The payment of advances should be invariably covered by a guarantee bond for an equivalent amount issued by any of the Nationalised /Scheduled Banks.

2) Since AMCs are in the nature of service contracts and OEMs / authorised dealers are often reluctant to submit Earnest Money or Security Deposits, this need not be insisted upon in such cases. Care may however, be taken to enter into such contracts only with reputed dealers so as to ensure satisfactory performance of the firm and minimum downtime of the equipment.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

42

RB’s letter No.98-B/AP-4.2.3/96-97 dt.13.4.99. Addendum Slip No. 05 to the SOP Pt.A/Works Matter, 96Edition circulated vide letter No.G.176 /15-W/Pt.II dt.1.2.01.

Payment of inspection diagnosis/ supervisions etc. charges for repairs to sophisticated machines costing Rs.5 lakhs (Book value ) & above.

Rs.50,000/- subject to maximum of Rs.5 lakhs per year.

CWMs of Workshop Rs.40,000/- per machine subject to total expenditure of not more than Rs.2 lakhs per year.


43 - do - Payment of inspection diagnosis/ supervisions etc. charges for repairs to sophisticated machines costing below Rs.5 lakhs (Book Value).

Rs.50,000/- subject to maximum of Rs.5 lakhs per year.

CWMs of Workshop Rs.20,000/- per year.

NIL NIL -do-

44 RB’s letter No.98-B/AP-4.2.3/96-97 dt.13.4.99. Addendum Slip No. 05 to the SOP Pt.A/Works Matter, 96 Edition circulated vide letter No.G.176/ 15-W/Pt.II dt.1.2.01.

Repair of machinery and plants on single tender basis including inspection, diagnosis of faults/repair etc. from OEM for machines costing Rs.5 lakhs (book value) & above.

Rs.5 lakhs subject to maximum of Rs.10 lakhs per year.

CWMs of workshop Rs.1 lakh per machine subject to maximum expenditure of Rs.5 lakhs per year.


45 -do- Repair of machinery and plants on single tender basis including inspection, diagnosis of faults/repair etc. from OEM for machines costing below Rs.5 lakhs (book value).

Rs.2 lakhs per year.

CWMs of workshop Rs.50000/- per year.


A 22


NOTE : 1) Before orders are placed on OEM for diagnosis of the machines in terms of Board’s delegation, specific correction of diagnosed output vis-à-vis payment )maximum Rs.40,000/- per machine) is to be indicated in the order and that maximum Upto 50% payment can be made to the firm on submission of condition report, analysis, estimated cost for repairs/reconditioning and other relevant information to be asked for and obtained.

2) The balance payment can be released only after the machine is repaired and made operational after resting, commissioning and trial run by OEM.

Sl. No



Officers DRMs JAG

Sr. Scale

REMARKS

46 RB’s letter No. F(X)-II-99/PW/3 dt. 20.10.99, GM’s letter No. G.176/15-W/Pt II dt. 28.9.2000 RB’s letter No. F(X)II-99/PW/3 dt. 27.06.2000.

Sanction of advance payment to OEM / authorised dealers for maintenance of all types of equipment covered under AMC on an interest free basis.

PHOD – Upto Rs.2 lakh.

DRM / CWM – Upto Rs.2 lakh.


Note : i) Advance exceeding Rs.20,000/- per annum shall, however be invariably covered by a Bank Guarantee for an equivalent amount.

ii) Waival of the above clause requires the concurrence of finance and the sanction of General Manager.

Sl. No



DRM/CWM JAG Sr. Scale

REMARKS

47 Rly. Bd’s letter No. 97/ M(L)/24/3 dt.10.07.98 & 2004/LML/18/30 dated 27.04.04 & 13.04.2006.

Temporary licensing of Railway land activities including cultural and sports activities, commercial activities concerning Railways, meals and carnivals.

NIL Full powers for licensing Upto 15 days only.


Note : i) This excludes functions related to religious activities. ii) All other cases of licensing such as temporary shops, carnivals or circus shows, held for commercial purposes, will

continue to require General Manager’s personal approval, as per existing procedure. iii) This power is applicable for item No.24 of USOP/Part – “E”/Commercial Matters.

Sl. No



Officers D R Ms JAG

Sr. Scale

REMARKS

48 Re-appropriation within same plan heads under demand No.16

NIL DRM / CWM –

Full powers to re-appropriate within the Divisional budget grant under each plan head.


Note : The re-appropriation is to be within the same department and same source.

Sl. No



Officers DRMs JAG

Sr. Scale

REMARKS

49 Re-appropriation of Grants Revenue – Ordinary working expenses

Full power to re-appropriate within the same grant and same primary unit of the divisional allotment for it departmental budget sub-head.

DRM / CWM –

Full power to re-appropriate within the same grant and same primary unit of the divisional allotment for it departmental budget sub-head.

NIL NIL Finance concurrence is

necessary.

A 23


ANNEXURE – “A” CONSTITUTION OF TENDER COMMITTEE AND ACCEPTING

AUTHORITIES THEREOF IN RESPECT OF WORKS TENDERS (OPEN, LIMITED & SPECIAL LIMITED)

Value of Acceptable Tender offer Accepting Authority Constitution of Tender Committee

Executive Sister Finance

Head Quarters (open line)

Upto Rs.20 Lakhs JA Grade Jr. Scale - Jr. Scale

Above Rs.20 Lakhs & Upto Rs.50 Lakhs JA Grade Sr. Scale Sr. Scale Jr. Scale

Above Rs.50 Lakhs & Upto Rs.3 Crores JA Grade Sr. Scale Sr. Scale Sr. Scale

Above Rs.3 Crores & Upto Rs.12 Crores SA Grade JA Grade JA Grade JA Grade

Above Rs.12 Crores & Upto Rs.50 Crores PHOD(HAG)/CHOD (SAG) SA Grade SA Grade SA Grade

Above Rs.50 Crores & Upto Rs.75 Crores PHOD (HAG)* / AGM SA Grade SA Grade SA Grade

Above Rs.75 Crores & Upto Rs.150 Crores GM PHOD/CHOD PHOD/CHOD PHOD/CHOD

* Where the department is not headed by PHOD (HAG), AGM will be Accepting Authority and if AGM is also not posted then such tender shall be accepted by GM.

Construction (Field & HQrs.) Upto Rs.20 Lakhs JA Grade Jr. Scale - Jr. Scale

Above Rs.20 Lakhs & Upto Rs.50 Lakhs JA Grade Sr. Scale Sr. Scale Jr. Scale

Above Rs.50 Lakhs & Upto Rs.3 Crores JA Grade Sr. Scale Sr. Scale Sr. Scale

Above Rs.3 Crores & Upto Rs.12 Crores SA Grade JA Grade JA Grade JA Grade

Above Rs.12 Crores & Upto Rs.50 Crores CAO/C (HAG) / CAO/C(SAG) SA Grade SA Grade SA Grade

Above Rs.50 Crores & Upto Rs.75 Crores CAO/C (HAG)** / AGM SA Grade SA Grade SA Grade

Above Rs.75 Crores & Upto Rs.150 Crores GM

CAO/C (HAG) / CAO/C(SAG)

PHOD/CHOD FA & CAO/C #

** If CAO/C is in SAG, then Acceptance Authority will be by AGM and if AGM is also not posted then such tender shall be accepted by GM. # FA&CAO/C who is co-ordinating in Construction Accounts.

Value of Acceptable Tender offer Type of Tender

Accepting Authority

Constitution of Tender Committee

Executive Sister Finance

Division / Workshop

Upto Rs.20 Lakhs Open / Limited JA Grade Jr. Scale - Jr. Scale

Single SA Grade Sr. Scale Sr. Scale** Sr. Scale

Above Rs.20 Lakhs & Upto Rs.50 Lakhs Open / Limited JA Grade Sr. Scale Sr. Scale Jr. Scale

Single SA Grade JA Grade JA Grade Sr. Scale

Above Rs.50 Lakhs & Upto Rs.3 Crores Open / Limited JA Grade Sr. Scale Sr. Scale Sr. Scale

Single SA Grade JA Grade JA Grade JA Grade

Above Rs.3 Crores & Upto Rs.8 Crores ADRM / CWM JA Grade JA Grade JA Grade

Above Rs.8 Crores & Upto Rs.12 Crores DRM / CWM JA Grade JA Grade JA Grade

**Since Finance Member is Sr. Scale.

Above Rs. 3 crores, there will be no Tender Committee at Divisional Level for Single Tender cases.

Note: 1. The Tender Committee member cannot function as Accepting Authority also. In such cases, tender will be accepted at next higher level. 2. In case of Single Tender, the Tender Committee and Accepting Authority should be one stage higher than in case of Open Tender / Limited Tender i.e. Sr. Scale

in place of Jr. Scale, JAG in place of Sr. Scale, SAG in place of JAG and so on excepting where General Manager is the Accepting Authority. 3. In case of JAG Finance officer not being posted, the Sr. Scale officer of the Division / Workshop will be the finance member of both Sr. Scale as well as JAG

Tender Committees (Note : In the above table, JA Grade denotes both JAG and SG level officers for all departments). 4. AENs in the charge of field units should not be Tender Committee members. However, under exceptional circumstances with duly recorded reasons, Sr. DEN/Co-

ordination of the Division may nominate AENs (Open Line – attached to the field) in Tender Committee.

5. For Tenders pertaining to Construction Organisation, including those for supply of Stores of Construction Works, the Finance members of the Tender Committees shall be from Construction Accounts.

6. In any Tender Committee case, if the respective grade officer of the Accepting Authority is not available, then Tender Committee’s recommendations may be accepted by the next higher authority.

7. The Accepting Authority can be considered as controlling authority and responsible for all post Contract Management like Termination, Variation etc. even if the delegation constitution of Tender Committee is changed subsequently.

8. For the tenders above Rs.20 lakhs, T. C. Members should be three i.e. from Executive Department, Finance Department and Sister Department in terms of Railway Board’s letter No. 2007/CE-I/CT/18 dated 07.03.2008.

9. The above Constitution of Tender Committee will come into effect for those tenders whose Tender Committee meetings have not been held till the date of issue of this correction slip.

A 24


ANNEXURE : “B”

THE LIST OF SISTER DEPARTMENTS FOR THE PURPOSE OF CONSTITUTION OF TENDER COMMITTEE.

Department Sister Department

1. Civil Engineering (Open Line) 1. (a) Civil Engineering (Con.)

(b) Electrical

(c) Signal & Telecommunication

(d) Mechanical

(e) Commercial (Passenger Amenities Works)

2. Civil Engineering (Con.) 2. (a) Civil Engineering (Open Line)

(b) Electrical


(d) Commercial (Passenger Amenities Works)

3. Mechanical 3. (a) Civil Engineering (Open Line)

(b) Electrical

(c) Commercial (Passenger Amenities Works)

4. Operating 4. (a) Civil Engineering (Open Line)

(b) Commercial (Passenger Amenities Works)

5. Electrical 5. (a) Civil Engineering (Open Line)

(b) Mechanical



6. Signal & Telecommunication 6. (a) Civil Engineering (Open Line)

(b) Civil Engineering (Con.)

(c) Electrical


NOTE : The level of officers shall be as per Constitution of Tender Committees, Annexure – “A”, SOP/Part – “A”/Works Matters.

Sub : Clarification for Post Tender Cases.

It is herby clarified that for all Works Tender Cases Whether finalized on the basis of earlier

Schedule of Power (SOP) or new Unified Schedule of Power (USOP), all items (i.e. introduction of new items,

variation, extension of DOC, termination, etc.) where approval of Tender Accepting Authority is required will

be guided as per the new USOP.

This issuers with the consent of Finance.

( This Office letter No. G.176/15-W/Works/USOP dated 07.08.2007).

A 25


ANNEXURE – “C”

CONSTITUTION OF TENDER COMMITTEE

FOR

Cleaning of Factory Waste / Rubbish / Garbage and Ash Handling Contract (including sick-lines, depots and POH depots)

Value Limit


Executive Department

Sister Department

Finance Department

Upto Rs.5 Lakhs Sr. Scale

Sr. Scale Sr. Scale, if not available Jr. Scale

Above Rs.5 Lakhs & Upto Rs.10 Lakhs JA Grade JA Grade JA Grade

Above Rs.10 Lakhs & Upto Rs.20 Lakhs SA Grade SA Grade SA Grade

Above Rs.20 Lakhs PHOD PHOD SA Grade

NOTE : The Tender Committee will be for both Open and Limited Tenders.

ANNEXURE – “D”

SELECTION COMMITTEE & ACCEPTING AUTHORITY AS PER MONETARY SLABS OF APPROVED LIST OF CONTRACTORS.

(Existing power as per Railway Board letter No. 94/CE-I/CT/4 dated 17.10.2002.)

Class of Contractors Selection Committee Composition Accepting Authority

Class “A” One SAG Officer each of Executive Department and Finance Department

Executive Department PHOD

Class “B” and Class “C” One JAG Officer each of Executive Department and Finance Department

DRM in the Division/SAG Officer of the Executive Department

Class “D” One Senior Scale Officer each of Executive Department and Finance Department

Sr. DEN(Coordination), Sr. DEE(G); Sr. DSTE & Sr. DME in Division and Dy. CE(C) in Construction.

NOTE : - Normally, in Construction, no contract below Rs.10 Lakhs value should be called.

A 26


ANNEXURE – “E”

TENDER COMMITTEE FOR CONSULTANCY CONTRACTS AT HEAD QUARTERS AND DIVISIONAL LEVELS

Value of Tender Accepting Authority


Executive Member Sister

Department Finance Member

Head Quarters

Upto Rs.5 Lakhs (Civil Engg. Contract)

PCE / CAO(C) SAG SAG FA & CAO (F&B)

FA & CAO(C) if tender is of Construction

Upto Rs.5 Lakhs (For Other Department)

AGM SAG SAG FA & CAO (F&B)

FA & CA)O(C) if tender is of Construction

Rs.5 Lakhs to Rs.15 Lakhs AGM SAG SAG FA & CAO (F&B)

FA & CA)O(C) if tender is of Construction

Divisions

Upto Rs.50 Thousand DRM / ADRM JAG JAG JAG

Note :: 1. If JAG / SG finance officer is not available in the Division, then the DFM shall be the Tender Committee Member.

2. All proposals except of Engineering and Construction departments Upto Rs.5 Lakhs and of DRMs upto Rs.50,000/- are to be personally approved by GM.

3. PCE / CE (Co-ord) and CAO/C can Award consultancy contracts upto a limit of Rs.5 lakhs per case with the annual ceiling limit of Rs.10 Lakhs with the personal concurrence of FA&CAO / FA&CAO(C). Tender should be approved by PCE / CAO (Con) in case of Engineering Tender. In case of Division, consultancy tender should be approved personally by DRM.

4. The Ceiling limit of Rs.10 Lakhs each to PCE and CAO/C will be within the ceiling limit fixed for the Zonal Railway.

RECORD OF CORRECTION SLIPS

Sub : Empowerment of Field Organizations (Works Contract Matters).

A 27


Sub : Empowerment to Field Organisations (Works Contract matters) Ref : Railway Board’s letter No. (i) 2003/CE.I/CT/4/Pt.I dated 12/16.05.2006, (ii) 72/W-I/CT/12 dated 11.03.1981,

(iii) 94/CE.I/CT/4 dated 17.10.2002, (iv) 94/CE.I/CT/4 dated 17.09.1997, (v) 2007/CE-I/CT/18 dated 28.09.2007, (vi) F(X)II/2006/PW/17 dated 04.12.2006.

-------------------------

Subsequent to the issue of Board’s letter dated 28.09.2007 cited as reference (v) above, Board have reviewed certain aspects of existing works contract management practise for the purpose of further empowerment of field organizations in works contract matters. Accordingly, certain existing clauses in GCC have been modified and certain new clauses have been introduced as detailed below :- 1. Stage Payment on supply of steel in the Works Contract. As per the existing procedure, payment for steel supplied by a works contractor is generally arranged only after actual usage of steel in the

work. However, it has not been decided that where considered necessary by CAO/C in contracts of value more than Rs. 15 crore each, a suitable clause for making stage payment for steel physically brought by the contractor to the site (even before its actual use in the work), may be incorporated as part of the tender conditions. This clause, inter alia, should cover the following aspects:-

a) The material shall be strictly in accordance with the contract specifications. b) The tender schedule shall provide for individual NS rate to be quoted by the tenderers for steel separately. c) The material shall be delivered at site and properly stored under covered sheds in measurable stacks. d) The quantities of materials shall be brought to the site only in such instalments that would facilitate smooth progress of work and

consumed in reasonable time. e) Proper accountal in the material register to be maintained in the prescribed format at the site for the receipt and use of the material. f) Ownership of such material shall be deemed to vest with the Railways for which the contractor should submit an indemnity bond in

prescribed format. g) Before releasing the stage payment, the contractor shall insure the material at his own cost in favour of Railways against theft, damages, fire etc.

h) Stage payment in all such cases shall not be more than 75% of the rate of steel awarded in the contract. The balance payment shall be released only after the material is actually consumed in the work.

i) The price variation claim for steel would continue to be governed as per extant PV clause and with reference to delivery at site. 2. Security Deposit As per the Board’s letter No. 2003/CE.I/CT/4/Pt.1 dated 12/16.05.2006, following conditions for security deposit was prescribed: “Unless otherwise specified in the special conditions, if any, the Security Deposit / Rate of recover / Mode of recovery shall be as under:- (a) Security Deposit for each work should be 5% of the contract value, (b) The rate of recovery should 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 BG, FD etc. shall be accepted towards Security Deposit. Security Deposit shall be returned to the contractor after the physical completion of the work as certified by the Competent Authority. The Competent Authority shall normally be the authority who is competent to sign the contract. If this Competent Authority is of the rank lower than JA Grade, then a JA Grade Officer (concerned with the work) should issue the certificate. The certificate, inter alia, should mention that the work has been completed in all respects and that all the contractual obligations have been fulfilled by the contractors and that there is no due from the contractor to Railways against the contract concerned. Before releasing the SD, an unconditional and unequivocal no claim certificate from the contractor concerned should be obtained”. In partial modification to the above instructions, it has now been decided that:-

(i) 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.

(ii) In case of contracts of value Rs.50 crore and above, irrevocable Bank Guarantee can also be accepted as a mode of obtaining security deposit.

3. Two Members Tender Committee for tenders of value of Rs.20 lakh and less each.

In partial modification of Board’s letter No.72/W-I/CT/12 dated 11.3.1981, it has been decided that for Works Tenders of value upto Rs.20 lakh, the Tender Committee shall hereafter be constituted with only two Members out of which, one should essentially be from the Accounts Department and the other from the concerned Executive Department However, the existing practice of three member Tender Committee will continue to be applicable for tenders of value more than Rs.20 lakh each.

4. Minimum Tender Notice Period for contracts of small value. In partial modification to para 1238 of Engineering Code, it has been decided that CAO/C / DRM be empowered to reduce the minimum

tender notice period of one month to 21 days where considered necessary without Finance concurrence. Needless to say, this should be resorted to only after the bid document, site survey reports, plans etc. are ready and that such reduction in Tender Notice period does not restrict the level of competition. Further reduction of this Tender Notice period from 21 days (but not less than 15 days in any case) in rare exceptional circumstances in the case of small value works shall be exercised by CAO/C with the concurrence of the FA & CAO/C.

5. Eligibility Criteria for Works Tenders.

A 28


In partial modification to para 2.3.4.1 and 2.3.4.2 of Board’s letter No. 94/CE-I/CT/4 dated 17.10.2002 and subsequent amendments thereon, Board have reviewed the eligibility criteria that are presently adopted and have decided as under:- The existing eligibility criteria mazy normally be taken as a general guideline for adoption in works tenders. However, in case of special circumstances, warranting some relaxation in the eligibility criteria, CAO/C with the personal concurrence of FA & CAO/C may effect relaxation in the existing eligibility criteria prescribed in para 2.3.4.1 and 2.3.4.2 of Board’s letter dated 17.10.02 referred above, and subsequent amendments thereon. This relaxation would need personal approval of CAO/C and exercise of this power shall not be re-delegated. Moreover, these powers shall be exercised judiciously duly recording the special circumstances surrounding the tender in question and not in a routine manner.

6. Incentive Bonus Payment Clause. Considering the need of early and time bound completion of throughput enhancement works primarily those coming under the Plan Heads ‘Doubling’ and ‘Traffic Facilities’, it has been decided to introduce an Incentive Bonus Payment Clause as part of tender conditions in tenders relating to such throughput enhancement works. This clause, inter alia, should cover the following parameters: (i) The incentive bonus payable shall not be more than 1% of the initial contract value or revised contract value whichever is less for

every one month of early completion ahead of the original completion period or revised completion period whichever is less. (ii) The maximum incentive payable shall not be more than 6% of the original contract value or revised contract value whichever is

less. (iii) This incentive scheme shall not apply if extension to the original completion period is given irrespective of on whose account

(Railways account or contractors account). (iv) Period less than a month will not be reckoned for the incentive bonus calculation. 7. Adoption of Two Packet System of tendering for high value contracts. Instructions already exist vide Board’s letter No. 94/CE-I/CT/4 dated 17.09.97 for adopting two packet system of tendering for large value works. These instructions are again reiterated and Railways may follow two packet open tender system instead of resorting to single packet open tender for high value tenders. The Railway may also resort to prequalification tender to avoid delays in verification of credentials of contractors. 8. Single Tender As per Engineering Code para 1214-A, General Managers are empowered to award contracts on single tender. In partial modification to this para, it has now been decided to empower CAO/C with the personal concurrence of FA & CAO/C to float and finalise single tenders of value not more than Rs. 2 crore each only for the purpose of early completion of last mile of throughput enhancement works relating to ‘Doubling’ and ‘Traffic Facility’ plan heads. Tender Committee in all such cases would be at SAG level with acceptance by CAO/C. The exercise of this power would be done personally by CAO/C with the personal concurrence of FA & CAO/C. 9. Application of Mobilization Advances Clause and Interest Rate for Mobilization Advances. The rate of interest on advances extended by Railways to contractors was downwardly revised to 14% vide Board’s letter No. 2007/CE.I/CT/18 dated 28.09.2007. On a further review of this clause, Board have decided as under:- a) The interest rate applicable to mobilization advance is further reduced from 14% to 12%. b) The mobilization advance clause henceforth be restricted only to high value tenders of value Rs. 10 Crore and above each. 10. Amendment to Price Variation Clause in Works Contract. In partial modification to item 2 (iii) of Board’s letter No. 2007/CE-I/CT/18 dated 28.09.2007, it has been decided to delete the existing lower limit of 5% for disallowing the PV claim. 11. Part Estimate. In partial modification to item 40(5) of Board’s letter No. F(X)II/2006/PW/17 dated 04.12.2006, GMs are now authorized to sanction part estimate costing upto 2% of the total value of the work, as originally sanctioned in the budget to incur expenditure towards preliminary activities viz., FLS, Geotechnical Studies, Design, Preparation of Plans, Drawings etc. These modified clauses / provisions shall be applicable with prospective effect in all future works contracts. This issues with the concurrence of Finance Directorate of Ministry of Railways.

A 29


Sub: Empowerment to Field Organizations (Works Contract matters).

Ref: (i) Board’s Letter No. 94/CE-I/CT/4 dated 17/10/2002.

(ii) Board’s Letter No. 2003/CE-I/CT/4 dated 12/16.05/2006. (iii) Board’s Letter No. 2007/CE-I/CT/18 dated 07/03/2008. (iv) Board’s Letter No. 2007/CE-I/CT/18 dated 28/09/2007. (v) Board’s Letter No. 2007/CE-I/CT/18 dated 05/03/2009.

(vi) Board’s Letter No. 2008/CE-I/CT/Con/7(PCE/GM) dated 15/12/2008.

Pursuant to the recommendations of EDs’ Committee, constituted by Railway Board to give recommendations regarding further empowerment to field organizations of Indian Railways for speedy implementation of projects/works, Board have decided to amend certain Clauses in the existing General Conditions of Contract. These modified clauses/provisions shall be applicable with prospective effect in all future works contracts. 01 Performance Guarantee (PG)

The clause on Performance Guarantee was introduced as Clause 16(4) to GCC vide item(03) of Board’s Letter No. 2003/CE-I/CT/4 dated 12/16.05/2006 and subsequently modified vide item(1) of Board’s Letter No. 2007/CE-I/CT/18 dated 07/03/2008. Board have now decided to supplement following to the Clause 16(4) of the General Conditions of Contract(GCC):

“The successful bidder shall have to submit a 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 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.”

Accordingly, Clause 16(4) of the General Conditions of Contract stands modified as detailed in Annexure- A.

02 Variations in Quantities of Items of Contracts- Limits & Rates There is general experience that significant effort & time are involved in negotiating the rates with the contractor where quantities of certain items in the agreement are required to be operated beyond 125% of the tendered quantity for those items during the actual execution of the work. After examining pros and cons of the issue, Railway Board have decided that Para 9(ii)of Board’s Letter No. 2007/CE-I/CT/18 dated 28/09/2007 be modified as under: “01 In case an increase in quantity of an individual item by mo re 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 subject to the following conditions:

(a) Operation of an item by more than 125% of the agreement quantity needs the approval of an officer of the rank not less than S.A Grade; (i) Quantities operated in excess of 125% but up to 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 up to 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 agreemental 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. 2. 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.

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(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. ( c) It should be certified that the work proposed to be reduced will not be required in the same work. 3. 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. Accordingly, on the subject of ‘Variation In Quantities Of Items Of Contracts’ Clause 42(4) to the General Conditions of Contract is incorporated as detailed in Annexure – B. 3. Power For Awarding Single Tender Powers have already been delegated to CAOs/C to award contracts on a single tender basis up to a value of Rs. 2 crore each to expedite ‘Doubling’ and ‘Traffic Facility’ works vide Para- 8 of Board’s Letter No. 2007/CE-I/CT/18 dated 07/03/2008 which is reproduced below verbatim- “As per Engineering Code Para 1214-A, General Managers are empowered to award contracts on single tender basis. In partial modification to this Para, it has now been decided to empower CAOs /C to float and finalize single tenders of value not more than Rs. 2 crore each only for the purpose of early completion of last mile of throughput enhancement works relating to ‘Doubling’ and ‘Traffic Facility’ plan heads. Tender Committee in all such cases would be at SAG level with acceptance by CAOs/C. The exercise of this power would be done personally by CAOs/C with the personal concurrence of FA&CAOs/C.”

Railway Board have decided that the above quoted powers for accepting single tender given to CAOs/C for ‘Doubling’ & ‘Traffic Facility’ Plan Heads be extended to ‘New Lines’ and ‘Gauge Conversion’ projects also, for only those projects, which are targeted for completion in 2010- 11. 04 Eligibility Criteria For Finalizing Tenders. Ref : Para- 2.3.4.1 of the recommendations of the committee of Shri B. S. Sudhir Chandra-Railway Board’s Letter No. 94/CE-1/CT/4 dated 17/10/2002, modified vide Board’s Letter No. 2008/CE-I/CT/Con/7(PCE/GM) dated 15/12/2008. As per extant instructions of Railway Board, issued vide letter No. 2008/CE-I/CT/Con/7(PCE/GM) dated 15/12/2008, the eligibility criteria prescribed by Sudhir Chandra Committee would apply only to tenders of value more than Rs. 20 lakh. Since this limit was fixed in the year 2008 and considering the need to increase this limit, Board have now decided that this limit be enhanced to Rs. 50 lakh. Other conditions given in the letters referred above shall, however, remain same. A thorough review maybe undertaken by the Zonal Railways on the extent of implementation of the liberalized powers delegated by the Board on contract management from 2007-08 till date and a report on the benefits derived may be submitted to Board by 31/03/2011. This issues with the concurrence of Finance Directorate of Ministry of Railways.

Annexure-A

Revised Clause 16(4) to Indian Railways General Conditions of Contract (Ref : Item-1 to Railway Board’s Letter No. 2007/CE.I/CT/18 Pt.XII dated 31/12/2010) Cause 16(4) Performance Guarantee The procedure for obtaining Performance Guarantee is outlined below : (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(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 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 the Performance Guarantee (PG) in any of the following forms, amounting to 5% of the contract below:

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(i) A deposit of Cash; (ii) Irrevocable Bank Guarantee; (iii) Government Securities including State Loan Bonds at 5% 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 Deposit Receipts tendered by all Scheduled Banks; (vi) A Deposit in the Post Office Savings 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% below market value or at the face value whichever is less.

Also, FDR in favour of FA & CAO(free from any encumbrance) may be accepted.

NOTE: The instruments as listed above will also be acceptable for Guarantees in case of Mobilization Advance. (c) 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. (d) The value of PG to be submitted by the contractor will not change for variation up to 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 shall be deposited by the contractor.” (e) The Performance Guarantee (PG) shall be released after physical completion of the work based on ‘Completion Certificate’ issued by the Competent Authority stating that the contractor has completed the work in all respects satisfactorily. The Security Deposit shall, however, be released only after expiry of the maintenance period and after passing the final bill based on ‘No Claim Certificate’ from the contractor. (f) 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 & 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 in his/her individual capacity or as a partner of any other JV/Partnership firm. (g) 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) in the event of :

(i) Failure by 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 by 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.

Annexure-B New Clause 42(4) to Indian Railways General Conditions of Contract

Ref : Item-9 to Railway Board’s letter no. 2007/CE-I/CT/18, dated 28.09.2007 and Item -2 to letter no. 2007/CE.I/CT/18 Pt. XII, dated 31.12.2010

The procedure detailed below shall be adopted for dealing with variations in quantities during execution of works contracts:

1. Individual NS items in contracts shall be operated with variation of plus or minus 25% and payment would be made as per

the agreement rate. For this, no finance concurrence would be required.

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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 subject to the following conditions:

(a) Operation of an item by more than 125% of the agreement quantity needs the approval of an officer of the rank not less than S.A. Grade;

(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 agreemental 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. 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.

(c) It should be certified that the work proposed to be reduced will not be required in the same work. 4. 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.

5. No such quantity variation limit shall apply for foundation items. 6. As far as SOR items are concerned, the limit of 25% would apply to the value of SOR schedule as a whole and not on individual 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). 7. For the tenders accepted at Zonal Railways level, variations in the quantities will be approved by the authority in whose powers revised value of the agreement lies. 8. For tenders accepted by General Manager, variations upto 125% of the original agreement value may be accepted by General Manager. 9. For tenders accepted by Board Members and Railway Ministers, variations upto 110% of the original agreement value may be accepted by General Manager. 10. The aspect of variation 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.

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Sub : Empowerment of Field Organizations(Works Contract matters) Ref : (i) Board’s letter No. 85/W-1/CT/7-Vol.1 dated 4.4.96 (ii) Board’s letter No. 94/CE-1/CT/4 dated 17.10.02 (iii) Board’s letter No. 85/W-1/CT/7-Pt.1 dated 18/19.4.06 (iv) Board’s letter No. 2003/CE-1/CT/4 Pt. dated 12/16.5.06, 30.5.06 & 7.12.06. ……… Pursuant to the recommendation of EDs committee constituted by Board to give recommendation on the above subject, Board have amended certain clauses in the existing General Conditions of Contract (GCC) and provisions in the extant policy circulars relating to works contracts, as detailed below, to enable more effective and efficient contract management. These modified clauses/provisions shall be applicable with prospective effect in all future works contracts. 1. Introduction of Performance Guarantee (PG) A clause on Performance Guarantee was introduced in GCC vide item (3) of Annexure to Board’s letter No. 2003/CE-1/CT/4 (Pt) dated 12/16.5.06 in lieu of risk action procedure. This clause stands modified as under:- “The procedure for obtaining Performance Guarantee is outlined below :- a. The successful bidder shall submit a Performance Guarantee (PG) in the form of an irrevocable bank guarantee amounting to 5% of the contract value. b. A Performance Guarantee shall be submitted by the successful bidder after the letter of acceptance has been issued, but before signing of the agreement. The agreement should normally be signed within 15 days after the issue of LOA and the Performance Guarantee shall also be submitted within this time limit. This guarantee 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 Performance Guarantee extended to cover such extended time for completion of work plus 60 days. c. The Performance Guarantee(PG) shall be released after the 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’. d. Wherever the contract is rescinded, the security deposit shall be forfeited and the Performance Guarantee shall be enchased and 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. e. 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) in the event of:

i) Failure by the contractor to extent 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 by 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.

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2. Amendment to PVC clause in works contract. In partial modification of Board’s letter No. 85/W-1/CT/7-Vol.1 dated 04.4.96, the following changes are introduced regarding Price Variation Clause:

(i) The minimum prescribed limit of one year of contract completion period for incorporating Price Variation Clause in tenders (para 1(a) of above referred letter dated 04.4.96) stands deleted.

(ii) Price Variation Clause (PVC) shall be applicable for tenders of value more than Rs.1 crore irrespective

of the contract completion period and PVC shall not be applicable to tenders of value less than Rs.1 crore.

(iii) The present stipulation that “Price Variation Clause will not apply if the price variation is upto 5% and

that reimbursement/recover due to variation in prices will continue to be made only for the amount in excess of 5% of the amount payable to the contractor” vide para 1 of above referred letter dated 4.4.96 shall continue to be enforced. However, the existing upper limit prescribed at 15% and 25% (vide para 1 (b) and I(c) of Board’s letter dated 4.4.96 referred above) for price variation claim stands deleted.

3. Earnest Money Deposit(EMD) The rules concerning Earnest Money Deposit modified vide Board’s letters Nos. 2033/CE-1/CT/4 Pt.1 dated 12/16.5.06 (item (i) of the Annexure) and letter no. 2003/CE-1/CT/4 Pt-1 dated 7.12.06 are further amended as under :-

Value of the Work (Tender Value) EMD

For works estimated to cost upto Rs.1 crore 2% of the estimated cost of the work.

For works estimated to cost more than Rs.1 crore Rs. 2 lakhs plus ½% (half percent) of the excess of estimated cost of work beyond Rs.1 crore subject to

a maximum of Rs.1 crore.

4. Interest Rate for Advances extended by Railways The extant interest rate for advances extended by Railways to contractors fixed at 18% vide Board’s letter No. 90/CE-I/CT/1 dated 21.5.97 and advance correction slip issued under Board’s letter No.F(X) II-97/PW/4 dated 5.5.98 has since been reviewed by Board and the same has now been downwardly revised as 14%. 5. Solvency Certificate In partial modification to para 2.3.4.1 of Annexure -1 of Board’s letter No. 94/CEI/CT/4 dated 17.10.2002, the requirement of Revenue/Banker Solvency Certificate as one of the minimum eligibility criteria(vide item (i) of the table under para 2.3.4.1 of the above referred Board’s letter) stands deleted. However, the Tender Committee shall still examine the overall financial soundless of the tenderers based upon the volume of work handled, turn over, balance sheet etc. 6. Imposition of token penalty for delay in the completion of work. The existing clause 17(B) of GCC provides for recovery of liquidated damages from the contractor for delay in completion of work. It has now been decided that the competent authority while granting extension to the currency of contract under clause 17(B) of GCC may also consider levy of token penalty as deemed fit based on the merit of the case.

7. Limited Tenders

Paras 2.4.4.4 and 2.4.4.5 of Annexure-1 of Board’s letter No. 94/CE.1/CT/4 dated 17.10.2002, which deal with monetary slabs for calling limited tenders stand modified as under :

2.4.4.4 The existing monetary ceiling for calling limited tenders may be raised from Rs.1 crore to Rs.5 crore.

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2.4.4.5 Existing four monetary slabs for calling limited tenders stand reduced to three and revised as under :-

Sl. No. Monetary slab for LT Lowest Authority competent to approve calling of LT

1 Upto Rs. 25 lakhs. JAG and SG

2 More than Rs. 25 lakhs and upto Rs.1 cr. SAG/DRM

3 More than Rs. 1 Crore and upto Rs.1 cr. PHOD/CHOD

Individual Railways may decide the “category of works” for which list of approved contractors should be maintained for each monetary slab. 8. Special Limited Tender(SLT) In partial modification to item (i) of para 2.6.4.1 of Annexure- 1 of Board’s letter No. 94/CE-1/CT/4 dated 17.10.2002, it has now been decided that CAO(C) with the concurrence of FA & CAO(C) may invite Special Limited Tenders not only for specialized nature of work but all types of works depending upon the merit of the case. 9. Variation to contract quantities In supersession of paras 5.3.6, 5.3.7 and 5.3.9 of Annexure-1 of Board’s letter No. 94/CE-1/CT/4 dated 17.10.2002, the procedure as detailed below shall be adopted for dealing with variation in quantities during execution of works contracts:

(i) Individual NS items in contracts shall be operated with variation of plus or minus 25% and payment would be made as per the agreement rate. For this, no finance concurrence would be required. (ii) In case of increase in quantity of an individual item by more than 25% of the agreement quantity is considered as unavoidable, the same shall be got executed by floating a fresh tender. If floating a fresh tender is considered not practicable, negotiations may be held with the existing contractor for arriving at reasonable rates for additional quantities in excess of 125% of agreement quantity. (iii) 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. (iv) No such quantity variation limit shall apply for foundation items. (v) As far as SOR items are concerned, the limit of 25% would apply to the value of SOR schedule as a whole and not on individual 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) (Vi) For the tenders accepted at the Zonal Railways level, the variation in the quantities will be approved by the authority in whose powers the revised value of the agreement lies. (vii) For tenders accepted by General Manager, variations upto 125% of the original agreement value (even if the revised agreement value is beyond GM’s competence to accept tenders) may be accepted by General Manager. (viii) For tenders accepted by Board Members and Railway Ministers, variations upto 110% of the original agreement value may be accepted by General Manager. (ix) The aspect of variation of tender with respect to variation in quantities should be checked and avoided.

10. This issues with the concurrence of Finance Directorate of Ministry of Railways.

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Sub : Addendum & Corrigendum Slip (ACS) No.01 to GCC, July,2014 : Amendment in Para 5(2) of Part-I of GCC and Clause 65.5 to GCC.

Ref : Railway Board’s Circulars:(i) No. 2003/CE-I/CT/4 Pt.I dated 04.04.2008

(ii) No.2002/CE-I/CT/37, dated 07.09.2011 1. Vide Board’s circular, dated 04.04.08 under reference (i): the forms in which Earnest Money Deposit (EMD) may

be accepted were revised, as mentioned in Para 5(20 of Part-I of General Conditions of Contract (GCC). Further, vide circular, dated 07.9.11 under reference (ii), Clause 65 to GCC, regarding Participation of Joint Venture (JV) Firms in works tenders, was incorporated.

2. These Para & Clause have further been examined in Board’s office. Board (ME and FC) have decided that Para

5(2) of Part-I of GCC and Clause 65.5 to Part-II of GCC may be amended as follows :

Para / Clause Para / Clause (as existed so far) Para / Clause (as revised now)

Para 5(2) of Part-I of GCC

5. Earnest Money : (2) The Earnest Money should be in cash or in the

form of deposit receipts, pay orders or demand drafts, executed by State Bank of India or any of the Nationalized Banks or by a Scheduled Bank.

5. Earnest Money : (2) The Earnest Money should be in Cash or

Banker’s Cheques / Demand Drafts in favour of FA&CAO of the Railway, executed by State Bank of India or any of the Nationalized Banks or by a Scheduled Bank.

Clause 65.5 to Part-II of GCC

65. Participation of Joint Venture (JV) Firms in Works Tender :

65.5 Normally Earnest Money Deposit (EMD) shall be submitted only in the name of the JV Firm and not in the name of constituent member. However, in exceptional cases, EMD in the name of Lead Member can be accepted subject to submission of specific request letter from Lead Member stating the reasons for non submitting EMD in the name of JV Firm and giving written confirmation from JV members to the effect that EMD submitted by the Lead Member may be deemed as EMD submitted by JV Firm.

65. Participation of Joint Venture (JV) Firms in Works Tender :

65.5 The Joint Venture Firm shall be required to submit Earnest Money Deposit (EMD) alongwith the tender in terms of the provisions contained in Para 5 (Earnest Money) of Part-I of GCC.

3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

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Sub : Powers to dispense with calling of tenders (calling of quotations).

Ref : Railway Board’s letter No. 94/CE-I/CT/4 dated 17.10.2002. -------------------------

Board have reviewed the powers to call for quotations to execute works as laid down in

Board's letter referred above (para 2.7.4.1) and have decided to enhance the same as follows, subject to the conditions mentioned in para 1211 E as modified and enumerated below :

Rank of Officer Present financial limit to dispense with tenders and accept Quotation per case. (Rs.)

Present Annual Ceiling Limit (Rs.)

Revised financial limit to dispense with tenders and accept Quotation per case. (Rs.)

Revised Annual Ceiling Limit (Rs.)

Sr. Scale (Independent Charge)

50,000/- 2,00,000/- 1,00,000/- 5,00,000/-

JAG / SG 1,00,000/- 5,00,000/- 2,00,000/- 20,00,000/-

SAG 2,00,000/- 10,00,000/- 4,00,000/- 40,00,000/-

Note : These powers will be exercised by the officers with their own administrative approval and no separate administrative approval is necessary.

(i) Normally powers to dispense with calling of tenders should be exercised sparingly. The circumstances under which quotations have to be called should be spelt out.

(ii) The work should not be split up for the purpose of bringing it within the ambit of this dispensation. (iii) The reasonableness of rates should be gone into objectively and in detail by the accepting

authority. (iv) Quotations should not be for items which can be executed through the existing contracts including

zonal contracts. (v) Quotations should not be for fancy (expensive but of low utility) items. (vi) Quotations should only be for works which are urgent in nature. (vii) Quotations should normally be invited from at least three well experienced contractors / agencies

not necessarily borne on the approved list Division / HQ. (viii) Accepting Authority must take precautions to see that the quotations are from genuine firms (and

not from fictitious firms). (ix) A Register showing the full particulars of works authorised through quotations will be maintained

by the officer having powers to dispense with calling of tenders. The register shall be sent to associate finance while seeking their concurrence. DRM/ADRM should have a monthly review as a matter of control.

(x) These powers shall be exercised only by field officers and their controlling HODs and not by other Head Quarters Officers' incharge of Planning, Design etc.

(xi) DRM/CWM power is subject to the CWM being a SAG Officer, If not, CWMs will be guided by JAG/SG’s Power.

This issues with the concurrence of Finance Directorate of Ministry of Railways.

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Sl. No. of the Schedule

Correction Slip Authority for Correction Slip As appearing after correction

No. Date Letter no. Date

Documents

DELEGATION OF POWERS IN RESPECT OF WORKS MATTERS - Eastern Railwayer.indianrailways.gov.in/cris/uploads/files/... · · 2018-05-01DELEGATION OF POWERS IN RESPECT OF WORKS MATTERS