Pre Award Presentation New

7/31/2019 Pre Award Presentation New

1/51

ContractContract

Promise to do SomethingPromise to do Something

Written Promise to Supply GoodsWritten Promise to Supply Goods

or to do Work at a Certain Priceor to do Work at a Certain Price


2/51

Make a ContractMake a Contract

Enter into AgreementEnter into Ag

reement


3/51

Stitching of Woolen (Coat +Pant) for Brothers MarriageStitching of Woolen (Coat +Pant) for Brothers Marriage

Decide Quality & Qty. of WoolenDecide Quality & Qty. of WoolenColour of ClothColour of ClothPrice of ClothPrice of Cloth

Select a competent Tailor Select a competent Tailor Style of Coat (Open/Double Breast)Style of Coat (Open/Double Breast)Type of ButtonsType of Buttons

Finalise stitching chargesFinalise stitching chargesTrial before final stitchingTrial before final stitchingDelivery timeDelivery time


4/51

Activities in Construction of HouseActivities in Construction of House

Prepare layout planPrepare layout planPrepare cost estimatePrepare cost estimatePrepare specifications of your requirementPrepare specifications of your requirementPrepare Bill of Material (qty. of cement, steel, bricks etc.)Prepare Bill of Material (qty. of cement, steel, bricks etc.)Search/decide suppliers of various materialsSearch/decide suppliers of various materialsSearch/decide a competent contractor Search/decide a competent contractor Settle the rates & place the order for various materialsSettle the rates & place the order for various materials(Cement, Bricks etc.)(Cement, Bricks etc.)Finalize unit rates for various construction activities (Brick Finalize unit rates for various construction activities (Brick work, Plastering, Flooring etc.)work, Plastering, Flooring etc.)Decide completion period with contractor Decide completion period with contractor Monitor constructionMonitor constructionComplete the constructionComplete the constructionSettle extra worksSettle extra worksFinal PaymentFinal Payment


5/51

Purchase vs. ContractPurchase vs. Contract

PurchasePurchase

Supply of Equipments/ GoodsSupply of Equipments/ Goods

ContractContract

Civil Construction (Buildings+Civil Construction (Buildings+Foundation etc.) + Supply +Foundation etc.) + Supply +ServicesServices **

Services*Services*

- Shipment, Inland TransportationShipment, Inland Transportation- InsuranceInsurance-

Erection/ Installation &Erection/ Installation &SupervisionSupervision- Testing & CommissioningTesting & Commissioning


6/51

Quality PolicyQuality Policy

Contract Services is committed to achievingContract Services is committed to achievingCustomer Satisfaction through completion of Customer Satisfaction through completion of the process of Appointment of Subcontractor the process of Appointment of Subcontractor and Ensuring Availability of Specified Works,and Ensuring Availability of Specified Works,Goods and Services at Project withinGoods and Services at Project withinScheduled Time and at Optimum Cost.Scheduled Time and at Optimum Cost.Towards this end we shall continue to followTowards this end we shall continue to follow

Fair, Transparent, Flexible and a ResponsiveFair, Transparent, Flexible and a ResponsiveContract Management System.Contract Management System.


7/51

Quality ObjectivesQuality Objectives

To ensure appointment of Sub-Contractors within initialTo ensure appointment of Sub-Contractors within initialvalidity period of bids.validity period of bids.

To ensure that equipment and materials are available atTo ensure that equipment and materials are available at

project site for completion of trial operations as per project site for completion of trial operations as per schedules identified in the Sub-Contracts.schedules identified in the Sub-Contracts.

To ensure that amendment to the Sub-Contract is issuedTo ensure that amendment to the Sub-Contract is issued

before the Sub-Contractor undertakes the modified scope. before the Sub-Contractor undertakes the modified scope.

To ensure closing of Sub-Contracts within a maximumTo ensure closing of Sub-Contracts within a maximum period of one year from completion of warranty period. period of one year from completion of warranty period.


8/51

Contract FunctionsContract Functions

Procurement of :Procurement of :

System as Whole (Turnkey Basis)System as Whole (Turnkey Basis)

EquipmentEquipmentCivil WorksCivil Works

ServicesServices

Construction MaterialsConstruction Materials- CementCement- SteelSteel


9/51


Procurement of:Procurement of:

System as Whole (Turnkey Basis)System as Whole (Turnkey Basis)

EquipmentEquipment

Civil WorksCivil Works

ServicesServices

Construction MaterialsConstruction Materialso CementCemento SteelSteel


10/51


Objectives:Objectives:

Most Economic PurchaseMost Economic Purchase

Equity in PurchaseEquity in Purchase

Meeting Project scheduleMeeting Project schedule

Meeting Specified Quality Requirements within theMeeting Specified Quality Requirements within theframework of Company Policies and Appropriate Rulesframework of Company Policies and Appropriate Rules

& Regulations& RegulationsAlso resulting in contribution to improvement of Systems,Also resulting in contribution to improvement of Systems,

procedures & policies for the corporation procedures & policies for the corporation


11/51

Types of TenderingTypes of Tendering

InternationalInternationalCompetitive BiddingCompetitive Bidding(ICB)(ICB)

Domestic CompetitiveDomestic Competitive

Bidding (DCB)Bidding (DCB)

Open Tender Open Tender

Limited Tender Limited Tender

Single Tender Single Tender


12/51


13/51

Project Time ScheduleProject Time Schedule

ThermalThermal

200 MW200 MW -- 48 Months48 Months500 MW500 MW -- 60 Months60 MonthsFGUTPP-II (2 x 210 MW)FGUTPP-II (2 x 210 MW) -- 34 M/39 M34 M/39 MVSTPP-II (2 x 500 MW)VSTPP-II (2 x 500 MW) -- 51 M/60 M51 M/60 MSimadhri(2 x 500 MW)Simadhri(2 x 500 MW) -- I 43 M/II 48 MI 43 M/II 48 M

(with oil)(with oil) -- I 38 M/II 40 MI 38 M/II 40 MTSTPP(4 x 500 MW)TSTPP(4 x 500 MW) -- I - 36 MI - 36 M

II - 46 MII - 46 MIII - 52 MIII - 52 MIV - 58 MIV - 58 M

Aravali STPPAravali STPP -- I 36 MI 36 MII - 39 MII - 39 MIII - 42 MIII - 42 M

NCPP (Dadri)- 2X490 MW NCPP (Dadri)- 2X490 MW -- 39 M/45 M39 M/45 MGas ProjectsGas Proje ctsOpen CycleOpen Cycle -- I 18 MI 18 M

II 20 MII 20 M

Combined CycleCombined Cycle -- 30 M30 M


14/51

Package/Turnkey Procurements-Why?Package/Turnkey Procurements-Why?

Single Point ResponsibilitySingle Point Responsibility

Timely Project CompletionTimely Project Completion

Optimum Interface ResponsibilityOptimum Interface Responsibility

Optimum Utilization of In-house Manpower Optimum Utilization of In-house Manpower ResourcesResources

Drawing upon Resources of Experienced ContractorsDrawing upon Resources of Experienced Contractors

RESULT: Better Overall Project ManagementRESULT: Better Overall Project Management


15/51

PackagingPackaging

For effective implementation, divide a projectFor effective implementation, divide a projectinto various packages.into various packages.

Constitute a committee for formation of Constitute a committee for formation of various packagesvarious packageso Supply+ ErectionSupply+ Erectiono Supply+ Civil Works+ ErectionSupply+ Civil Works+ Erectiono Supply+ Supervision of ErectionSupply+ Supervision of Erectiono ConsultancyConsultancy


16/51

Packages identified for various Current ProjectsPackages identified for various Current Projects

Project Name No. of Pckg.Singrauli STPP/ Ramagundam STPP 100+

Kh STPP 90

VSTPP-II 55Simhadri TPP-I 11

VSTPP-III 20

Rihand-III 27Ennore (TNEB) 35

Aravali STPP 38


17/51

NTPC Project CostNTPC Project Cost

Projects InstalledCapacity

ApprovedInvestment

Cost per MW

Singrauli 2000MW 1190.69 Cr. Rs. 0.6 Cr.

Ramagundam 2100 MW 2059.22 Cr. Rs. 1 Cr.

Simhadri 1000 MW 3650.79 Cr. Rs. 3.65 Cr.

KayamkulamGas Proj.

350 MW 1310.58 Cr. Rs. 3.74 Cr.

Koldam HydroProj.

800 MW 4527 Cr. Rs. 5.65 Cr.


18/51

New Areas of Working: NTPCNew Areas of Working: NTPC

HYDRO SECTOR HYDRO SECTOR

POWER DISCTRIBUTION NESCL POWER DISCTRIBUTION NESCL (NTPC ELECTRIC SUPPLY CO. LTD.(NTPC ELECTRIC SUPPLY CO. LTD.

COAL WASHERIES DEVELOPMENTCOAL WASHERIES DEVELOPMENT

CAPTIVE MININGCAPTIVE MININGWIND FARMWIND FARM


19/51

Current ProjectsCurrent Projects

Rihand-III (2 X 500 MW)Rihand-III (2 X 500 MW)

Barh-II (2 X 660 MW)Barh-II (2 X 660 MW)

Bongaigaon (750 MW)Bongaigaon (750 MW)TNEB-Vallur (2 X 500 MW)TNEB-Vallur (2 X 500 MW)

Nabinagar (1000 MW) Nabinagar (1000 MW)

Aravali STPP (3 X 500 MW)Aravali STPP (3 X 500 MW)


20/51

New ProjectsNew Projects

Mauda STPP(1000 MW)Mauda STPP(1000 MW) North Karanpura STPP(3 X 660 MW) North Karanpura STPP(3 X 660 MW)

Marakkanam STPP(4000 MW)Marakkanam STPP(4000 MW)

Meja Tehsil (2 X 660 MW)Meja Tehsil (2 X 660 MW)Cheyyur STPP (2000/2400 MW)Cheyyur STPP (2000/2400 MW)

Wind Farm (100 MW)Wind Farm (100 MW)


21/51

Bidding ProceduresBidding Procedures

A)A) Single StageSingle Stage

(1)(1) Single Stage, Single EnvelopeSingle Stage, Single Envelope

Ideal for all Clearly specified goodsIdeal for all Clearly specified goods

Technical & Price Bid in one envelopeTechnical & Price Bid in one envelope Opened at the same timeOpened at the same time


22/51


(2) Single Stage, Two Envelopes(2) Single Stage, Two Envelopes Employed for Complex EquipmentEmployed for Complex Equipment Technical & Price Bids in separate envelopesTechnical & Price Bids in separate envelopes 11 stst Bid Opening- Technical Envelope onlyBid Opening- Technical Envelope only

o Review for ResponsivenessReview for Responsivenesso Adjustment of technical features to make bids responsiveAdjustment of technical features to make bids responsive

with corresponding adjustment in Pricewith corresponding adjustment in Price 22ndnd Bid Opening- Prices of responsive bidders onlyBid Opening- Prices of responsive bidders only

(including adjustment in Price, if any)(including adjustment in Price, if any)


23/51


(B) Two-Stage Bidding(B) Two-Stage Bidding

Ideal for complex equipmentIdeal for complex equipment

Projects with different technical solutionsProjects with different technical solutions

First stage invite Technical ProposalFirst stage invite Technical Proposal

Discuss and Finalize Technical SpecificationDiscuss and Finalize Technical SpecificationSecond stage invite Price BidsSecond stage invite Price Bids


24/51

BidBid OpeningOpening

Purpose:Purpose:

To Insure that Receipt & price of all the bidsTo Insure that Receipt & price of all the bidssubmitted in time for Bid Opening are publiclysubmitted in time for Bid Opening are publiclyread and recorded.read and recorded.


25/51

Bid OpeningBid Opening

Procedure:Procedure:* Before Bid Opening* Before Bid Opening

-- Inform all prospective biddersInform all prospective bidders(Place, Date, Time etc.)(Place, Date, Time etc.)-- Finalize Tender CommitteeFinalize Tender Committee-- Obtain Approval of Cost EstimateObtain Approval of Cost Estimate-- Finalize members for opening the bidsFinalize members for opening the bids

received.received.


26/51

Bid OpeningBid OpeningProcedure:Procedure:

* During Bid Opening* During Bid Opening-- Get signatures of BiddersGet signatures of Bidders Representatives (notRepresentatives (notexceeding 2)exceeding 2)-- Check for Imp. Conditions stipulated inCheck for Imp. Conditions stipulated in BiddingBidding

DocumentsDocuments-- Bid Guarantee (value, validity etc.)Bid Guarantee (value, validity etc.)-- Acceptance of Imp. Conditions (BG, CPG, LDAcceptance of Imp. Conditions (BG, CPG, LD for for Delay, TOP, Price Basis, Currency & Payment)Delay, TOP, Price Basis, Currency & Payment)-- Letter of UndertakingLetter of Undertaking

-- Open Bids (meeting above) & Read loudly Price, Imp.Open Bids (meeting above) & Read loudly Price, Imp.Deviations/DifferencesDeviations/Differences-- in case bidder doesnt comply with stipulatedin case bidder doesnt comply with stipulatedconditions. His bid should be considered Unopened.conditions. His bid should be considered Unopened.


27/51


Procedure:Procedure:* After Bid Opening* After Bid Opening

-- Prepare Bid Opening StatementPrepare Bid Opening Statement

-- Forward Statement, if Required, to beForward Statement, if Required, to be sentsentto Funding Agencyto Funding Agency

-- Send a copy to Cost Engg.Send a copy to Cost Engg.

-- Distribute Bids received to allDistribute Bids received to allconcerned (TC Members, CQA etc.)concerned (TC Members, CQA etc.)


28/51


General Conditions:General Conditions:TLX/Telegraph/Fax Bids should not be accepted.TLX/Telegraph/Fax Bids should not be accepted.

Late tenders should not be accepted.Late tenders should not be accepted.

Omissions, cuttings, erasures, overwritings shouldOmissions, cuttings, erasures, overwritings should be properly recorded. be properly recorded.

Members present during Bid Opening must signMembers present during Bid Opening must signeach page of Bid.each page of Bid.


29/51

Bid EvaluationBid Evaluation

Purpose:Purpose:

To determine the cost of each Bid to the Employer To determine the cost of each Bid to the Employer in a manner that will permit a comparison of Bidsin a manner that will permit a comparison of Bidson the basis of their Evaluated Cost.on the basis of their Evaluated Cost.


30/51

Preliminary EvaluationPreliminary Evaluation

Check Bid Security & Validity of BidsCheck Bid Security & Validity of BidsCheck if Bid properly signed, Dated &Check if Bid properly signed, Dated &StampedStampedCheck Power of AttorneyCheck Power of AttorneyCheck JDU/ JV Agreement, if ApplicableCheck JDU/ JV Agreement, if ApplicableCheck deviations to Important ConditionsCheck deviations to Important ConditionsCheck if Bids cover complete scopeCheck if Bids cover complete scopeCheck for computational ErrorsCheck for computational ErrorsCheck for Material DeviationsCheck for Material Deviations


31/51

Factors to be considered for EvaluationFactors to be considered for Evaluation

Cost of Deviations:Cost of Deviations:- All bids to be brought at par with specifications and- All bids to be brought at par with specifications and

other provisions of Bid Documentsother provisions of Bid Documents

- Use cost if quoted by bidder for withdrawal of - Use cost if quoted by bidder for withdrawal of DeviationDeviation- If cost not quoted, Employer to use data as may beIf cost not quoted, Employer to use data as may be

available with himavailable with him- For some general deviations like Terms of PaymentFor some general deviations like Terms of Payment

etc., Evaluation Criteria may be stipulatedetc., Evaluation Criteria may be stipulated


32/51

Evaluated PriceEvaluated PriceEvaluated Price= Arithmetically Corrected Bid PriceEvaluated Price= Arithmetically Corrected Bid Price

++Taxes & Duties (if applicable)Taxes & Duties (if applicable)

++

SparesSpares

++Differential PriceDifferential Price

++Cost of DeviationsCost of Deviations

++Facilities to be provided by Employer Facilities to be provided by Employer

++Differential of PreferenceDifferential of Preference


33/51

Bid Evaluation ProcedureBid Evaluation Procedure

Purpose:Purpose:

To determine To determine the lowest evaluated bidthe lowest evaluated bid from the substantially responsive bid received.from the substantially responsive bid received.


34/51


* Step-1:* Step-1: General ParticularsGeneral Particulars

(Project Name, Package & Spec. No., Financing, Cost(Project Name, Package & Spec. No., Financing, CostEstimate, Bid Response, Mode of Tendering etc.)Estimate, Bid Response, Mode of Tendering etc.)

* Step-2:* Step-2: Bid Opening & Quoted PriceBid Opening & Quoted Price

Sl. No. Bidder Quoted Price in Eqvt. INR as on

1.2...

AB..

----


35/51


Step-3:Step-3: Completeness & ResponsivenessCompleteness & Responsivenessof Bids (Technically & Commercially)of Bids (Technically & Commercially)

Check for- Failure to satisfy Eligibility Req.Check for- Failure to satisfy Eligibility Req.

- Failure to meet Q.R.- Failure to meet Q.R.

- Major Deficiency in Scope of Work - Major Deficiency in Scope of Work

- Technical Parameters- Technical Parameters

- Failure to meet Work Schedule- Failure to meet Work Schedule

- Conditional Bids etc.- Conditional Bids etc.


36/51


37/51


Step-6: Final Evaluated PriceStep-6: Final Evaluated PriceStep-7: Capacity & Capability to perform the work Step-7: Capacity & Capability to perform the work

(Present Work Load, if new party Assessment to be done)(Present Work Load, if new party Assessment to be done)

Step-8: Award Recommendations & Put up to CA for Step-8: Award Recommendations & Put up to CA for Approval.Approval.

Time frame for Bid EvaluationTime f rame for Bid Evaluation

Completion of Evaluation Report Comp letion of Evaluation Report to be done within Scheduleto be done within Schedule


38/51

Evaluation Factors & AnalysisEvaluation Factors & Analysis

TechnicalTechnicalScope deficienciesScope deficiencies

Scope deviationsScope deviations

Deviations in Technical ParametersDeviations in Technical ParametersGuaranteed Technical ParametersGuaranteed Technical Parameters

Heat RateHeat Rate

OutputOutput

Auxiliary Power ConsumptionAuxiliary Power Consumption

Guaranteed Consumption of Cement & SteelGuaranteed Consumption of Cement & Steel


39/51

Evaluation Factors & AnalysisEvaluation Factors & Analysis

CommercialCommercialArithmetic ErrorsArithmetic ErrorsUnit Rates vs Total PriceUnit Rates vs Total PriceTerms of PaymentTerms of PaymentTime ScheduleTime Schedule

Contract SecurityContract SecurityPrice BasisPrice BasisDomestic Price Preference (In case of ICB financed by multilateralDomestic Price Preference (In case of ICB financed by multilateralagencies)agencies)Purchase Preference for Public Sector in case of DCBPurchase Preference for Public Sector in case of DCB

Factors such as Completeness of Scope, LD for Delay, Force Majeure,Factors such as Completeness of Scope, LD for Delay, Force Majeure,Defect Liability, Time Schedule, Limitation of Liabilities, Risk Defect Liability, Time Schedule, Limitation of Liabilities, Risk Distribution etc. play an important part in determining the substantiveDistribution etc. play an important part in determining the substantiveresponsiveness of the bid.responsiveness of the bid.


40/51

Arithmetic Correction: An Illustrated ExampleArithmetic Correction: An Illustrated Example

Observed Arithmetic Correction:Observed Arithmetic Correction:

Rs. 1,00,62,000- Rs. 1,62,00,000= (-)Rs. 61,38,000/-Rs. 1,00,62,000- Rs. 1,62,00,000= (-)Rs. 61,38,000/-

S. No. Item Quoted Price1 Equipment Price Rs. 153.95 Lacs

2 Spares Rs. 8.05 Lacs

Total (In Figures)(In Words)

Rs. 162.0 LacsRupees One Crore Sixty TwoThousand only


41/51

Guaranteed Parameters: An Illustrated ExampleGuaranteed Parameters: An Illustrated ExampleWater Treatment Plant (Declared Guaranteed Parameters for Sulphuric AcidWater Treatment Plant (Declared Guaranteed Parameters for Sulphuric Acid

Consumption )Consumption )

Bidder Acid Consumption(Tons) in 6 months

Differential AcidConsumption

LD on Excess AcidConsumption (Rs.)@ Rs.4000/- per Ton

A 1100 500 Rs. 20,00,000/-

B 980 330 Rs. 14,20,000/-

C 600 Base Nil

Bidder Quoted Price (Rs.) LD due to Excess AcidConsumption (Rs.)

Evaluated Price(Rs.)

A Rs. 505 Lacs Rs. 20 Lacs Rs. 525 LacsB Rs. 450 Lacs Rs. 14.20 Lacs Rs. 464.20 Lacs

C Rs. 600 Lacs Nil Rs. 600 Lacs


42/51

Guaranteed Parameters: An Illustrated ExampleGuaranteed Parameters: An Illustrated Example(Declared Guaranteed Parameters for Power Consumption of Pumps )(Declared Guaranteed Parameters for Power Consumption of Pumps )

Bidder Power Consumption(KW)

Differential Power Consumption

LD on Excess Power Consumption (Rs.)@ Rs.2000/- per KW

A 580 Base Nil

B 900 320 Rs. 6,40,000/-

C 700 120 Rs. 2,40,000/-

Bidder Quoted Price (Rs.) LD due to Excess Power Consumption (Rs.)

Evaluated Price(Rs.)

A Rs. 245 Lacs Nil Rs. 245 Lacs

B Rs. 240 Lacs Rs. 6.4 Lacs Rs. 246.4 Lacs

C Rs. 300 Lacs Rs. 2.4 Lacs Rs. 302.4 Lacs


43/51

Computation of Final Evaluated PriceComputation of Final Evaluated Price

Award to be placed on Lowest Evaluated Bidder Award to be p laced on Lowest Evaluated Bidder

Bidders A B C

Quoted Price A1 B1 C1

Cost Compensation due toTech. Deviations

A2 B2 C2

Cost Compensation due toComm. Deviations

A3 B3 C3

Domestic/Purchase Preference(if any)

A4 B4 C4

Final Evaluated Price A1+A2+A3+A4 B1+B2+B3+B4 C1+C2+C3+C4


44/51


45/51

Pre Award Discussions & Contract FinalizationPre Award Discussions & Contract Finalization

Resolution Of DeviationsResolution Of DeviationsTechnical DeviationsTechnical Deviations

Commercial DeviationsCommercial Deviations

Work Schedule-L2 Network Work Schedule-L2 Network QA PlansQA Plans

Approval of agreements reached during Pre-Approval of agreements reached during Pre-

Award Discussions from ManagementAward Discussions from ManagementAward of ContractAward of Contract

d fI C di i f C


46/51

Important Conditions of ContractImportant Conditions of ContractQualifying RequirementsQualifying RequirementsValidity of BidsValidity of BidsBid SecurityBid Security

Comprehensive Evaluation CriteriaComprehensive Evaluation CriteriaPrice PreferencePrice PreferenceCurrency Provisions (Currency of Bids & Conversion for Bid Compensation)Currency Provisions (Currency of Bids & Conversion for Bid Compensation)Construction of ContractConstruction of ContractAward of ContractAward of ContractPerformance Security/ Contract Performance GuaranteePerformance Security/ Contract Performance Guarantee

Work Schedule: Time- The Essence of ContractWork Schedule: Time- The Essence of ContractLiquidated Damages (For Delay and/or for shortfall in Performance)Liquidated Damages (For Delay and/or for shortfall in Performance)Taxes & DutiesTaxes & DutiesTerms and Method of Payment (Initial Advance, Interim Advance, PaymentTerms and Method of Payment (Initial Advance, Interim Advance, Paymentagainst Dispatch, Payment Against Receipt, Payment Against completion of Trialagainst Dispatch, Payment Against Receipt, Payment Against completion of TrialOperation, Payment Against satisfactory completion of Performance & GuaranteeOperation, Payment Against satisfactory completion of Performance & GuaranteeTests)Tests)

Price AdjustmentPrice AdjustmentLong Term Availability of SparesLong Term Availability of SparesQuality Assurance RequirementsQuality Assurance RequirementsDispute Resolution & ArbitrationDispute Resolution & ArbitrationDefect Liability (Latent Defects)Defect Liability (Latent Defects)Limitation of LiabilitiesLimitation of Liabilities

InsuranceInsurance


47/51


48/51

Flow Chart of Contract Pre-Award Activities (Page-2 of 2)Flow Chart of Contract Pre-Award Activities (Page-2 of 2)

IssueOf Bid

Documents

Contracts

Reply BiddersQueries/

Clarifications

Contracts

Openingand

Distribution of Bid Documents

Contracts

Short ListingOf

Bidders

Contracts

FinalizationOf Evaluation

Report& Approval

Contracts

Obtain Approval of

Funding Agency

Contracts

FinalizePre-AwardDiscussion

Contracts

Nomination of Tender

Committee

Contracts

Issue of LOA

Contracts


49/51

DOP-2005 (Section-I)DOP-2005 (Section-I)Calling of TendersCalling of Tenders

Tendering ED GM DGM SM

Open Tender Full Powers UptoRs. 10 Cr.

UptoRs. 3 Cr.

UptoRs. 1 Cr.

LimitedTender

UptoRs. 5 Cr.

UptoRs. 2 Cr

UptoRs. 50 Lacs

UptoRs. 25 Lacs


50/51

DOP-2005 (Section-I)DOP-2005 (Section-I)Approval of Award of Contract/ Acceptance of TenderApproval of Award of Contract/ Acceptance of Tender

For value exceeding delegation of ED & upto Rs. 25 Cr. Approval for For value exceeding delegation of ED & upto Rs. 25 Cr. Approval for Award of Contract shall be accorded by D (T) & D (Proj) withAward of Contract shall be accorded by D (T) & D (Proj) withconcurrence of ED(F).concurrence of ED(F).For value more than Rs. 25 Cr. & upto Rs. 100 Cr., approval for Award of For value more than Rs. 25 Cr. & upto Rs. 100 Cr., approval for Award of Contract by Sub-committee of Board.Contract by Sub-committee of Board.For value more than Rs. 100 Cr. Approval for Award of Contract by FullFor value more than Rs. 100 Cr. Approval for Award of Contract by FullBoard.Board.

Tendering ED GM DGM SMOpen Tender Upto

Rs. 15 cr.UptoRs. 4 Cr.

UptoRs. 50 Lacs

UptoRs. 25 Lacs

Limited TenderUpto

Rs. 4 Cr.

Upto

Rs. 1 Cr

Upto

Rs. 20 Lacs

Upto

Rs. 5 Lacs


51/51

Types of GuaranteesTypes of GuaranteesBid Guarantee: to ensure that the bidder does not backout of the offer at aBid Guarantee: to ensure that the bidder does not backout of the offer at alater date.later date.

Value- A percentage of the Cost EstimateValue- A percentage of the Cost Estimate(2% < Rs. 5 Crs.; 1%> Rs. % Crs.)(2% < Rs. 5 Crs.; 1%> Rs. % Crs.)

Validity- 7 Months from opening of Bid DocumentsValidity- 7 Months from opening of Bid Documents

Contract Performance Guarantee: to secure faithful performance of theContract Performance Guarantee: to secure faithful performance of the

contractcontractValue- 10% of Contract ValueValue- 10% of Contract ValueValidity- 60 days after the end of Defect Liability PeriodValidity- 60 days after the end of Defect Liability Period

Advance Bank Guarantee: To secure the initial advance paid to theAdvance Bank Guarantee: To secure the initial advance paid to thecontractor even before he has done any work contractor even before he has done any work Value- VariableValue- VariableValidity- 60 days after the schedule date for successful completion of TrialValidity- 60 days after the schedule date for successful completion of TrialOperationsOperations