Transmission Line Case Study

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    PROJECT DESCRIPTION Design, Supply of Materials, Erection including Civil Works, Testing& Commissioning of 220 kV Transmission Line on Total Turnkey basis.

    SCOPE OF WORK:

    The salient features of the Scope include, but not limited to, the following:

    a) O verall Project Management, Coordination.b) Conducting of detailed survey, & Check Survey.c) Preparation of fabrication drawings and shop drawings, fabrication and supply of towers

    as per Standard Drawing and Bill of Materials.d) Supply of Conductor, Ground Wire, Conductor accessories, earthing sets, Number

    plates, Phase plates, Danger boards and all other materials required for completeness of the line.

    e) Excavation, casting of tower foundation, stub setting, erection of complete towers withextensions and fixing of all accessories, hoisting of insulators, stringing of conductor andground wire, fixing of line hardware including all Civil and Structural works as perspecification.

    f) All statutory clearance, wherever required shall be arranged by the owner. The Biddershould clear any way leave problems, but the owner shall extend all help/co-operationin this regard.

    Techno Commercial Documents -

    The Techno- Commercial Bid consists of following:i) Techno - Commercial Sheetsii) Data Requirement Sheets.

    General

    The transmission lines shall be designed and constructed meeting the requirementsmentioned in these regulations, requirements of applicable Indian Standards as well asother rules & regulations as per latest amendments. The Contractor shall follow all theprudent utility practices in the design and construction of the transmission lines. Also, thedesign and construction of the transmission lines shall be such that they perform theirintended functions under the License.

    ConductorThe conductor of appropriate size shall be selected considering power flow requirementsand other system considerations in consultation with neighboring transmission andgeneration utilities. It shall be so selected so as to ensure satisfactory performance of transmission lines from corona and interference aspects.

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    The conductors may be of type ACSR, AAAC or other and shall generally conform torelevant IS or IEC standards. O ther new technology conductors conforming to Internationalstandards and specifications may also be used depending on system requirements.

    EarthwireThe earthwire of appropriate size to cater to predicted and design fault currents andlightning shall be used. The earthwire shall be either of galvanized stranded steel (GSS) oralternatively ACSR or AACSR conductor type. O ptical fiber ground wires may also be used asearthwire. O ther new technology earthwires conforming to international standards andspecifications may also be used. Generally, one earthwire shall be used for transmissionlines up to 220 kV.

    Towers

    The towers shall be self-supporting lattice steel type and shall be a fully galvanizedstructure. The standard drawings for the Towers are available with the owner & theContractor shall supply the towers as per the standard drawings. The Type of towers, designand ruling span, wind & weight spans, extension and truncation provisions, Live-metalclearances, mid-span clearance, shielding angle etc. shall be decided as per prudent utilitypractices following applicable standards and codes and keeping in view electrical systemparameters and requirements, line altitude and other service conditions and factors.Ground clearance shall be as per requirements of Central Electricity Authority (Measuresrelating to Safety and Electricity Supply) Regulations as and when these are notified by theAuthority.The loads at conductor and earthwire points under different loading conditions viz.reliability conditions (normal condition), security conditions (broken wire condition), safetyconditions, anti-cascading condition etc. (as per relevant IS or IEC Standards) consideringvarious combinations of design temperatures, wind and snow loads shall be calculatedaccordingly.

    Tower MaterialsMild steel and high tensile steel sections of tested quality in conformity with relevant ISshall be generally used in towers and their extensions. O ther equivalent grade of structural steel angle sections and plates conforming to International Standards may alsobe used.Fasteners, bolts and nuts shall be generally as per relevant IS.

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    Tower fabricationTower fabrication shall generally conform to relevant IS. Tower parts shall be galvanizedas per relevant IS.(iv) Tower accessories

    Various tower accessories viz. danger plates, number plates, phase plates, circuit plates,anti-climbing devices, bird guards etc. shall be provided conforming to relevant IS.Remedial measures shall be taken by the O wner to put spike type Bird guards on theUpper (tie members), Lower main members and also on Plan bracings in the barrel of thetower at all the cross arm levels to prevent birds from making nests. This measure willalso help to improve the performance and availability of the system.

    EarthingEach tower shall be earthed such that tower footing resistance does not exceed 10 ohms.Pipe type or Counterpoise type earthing shall be provided in accordance with relevant IS.

    Aviation requirements and warning signalsDay and/or night visual aids and markers for denoting transmission line or structures asper requirements of Directorate of Flight Safety or relevant IS or ICA O shall be provided.

    Insulators, Insulator Strings and Hardware FittingsRequisite type of suspension and tension insulator strings with disc insulators or long rod

    insulators offering equivalent performance shall be used. The Drawings for the Insulatorsshall be provided by the owner. Number of insulators and creepage distance shall beselected based on electrical system parameters and requirements taking into accountother factors and conditions viz. line altitude, expected environmental and pollutionconditions etc. However, for critical locations with high pollution level, antifog typeinsulators or polymer insulators may be used for better performance.Insulators shall generally conform to relevant IS or IEC standards. Polymer or compositeinsulators conforming to relevant IEC or other international standards may also be used.

    Insulator strings shall be complete with all required hardware fittings. The fittings shallgenerally conform to relevant IS.

    Accessories for Conductor and Earthwire

    The accessories required for the conductor and earthwire viz. mid-span compression joints, repair sleeve, T-connector, flexible copper bond, vibration dampers, spacer or

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    spacer-dampers, earthwire clamps etc. shall be used as suitable for type and size of conductor and earthwire used for the transmission line. The accessories shall generallyconform to relevant IS.

    Q uality AssuranceThe Quality Management System to be followed should be built around a philosophy of "prevention" rather "detection and cure". The quality Management system is time testedand may have an IS O -9001 certification. The Various Steps involved in the Quality SystemManagement are given below:

    Inclusion of Quality Requirement in the Contract.Selection of good quality vendors/sub vendors.Approval of unambiguous Manufacturing Quality Plan (MQP)

    Finalization of Field Quality Plan (FQP)Ensuring regular, timely and consistent inspection at various stages, viz. Raw material,during in- process stage and final inspection and testing prior to dispatch.Implementation of Quality Systems and Procedures as per IS O 9001.

    System of Vendor and Sub Vendor ApprovalsThe list of approved sub vendors is maintained for all the sub vendors irrespective of thefact whether the Technical Qualifying Requirements are specified in the contract or not.The contractors can choose any sub vendor from the list possessing a large number of subvendors to choose from, with full transparency. The list is continuously revised based onthe feedback obtained from the inspection reports, surveillance audits and failure reports,etc.

    Manufacturing Q uality PlanA standard format is developed for the approval of Manufacturing Quality Plan (MQP)which includes the quality requirements at the raw material stage, in process testing andfinal inspection and testing requirements as per Technical specifications of the contract,National and International Standards and Manufacturer s internal plant standards and wellknown good engineering practices of the industry. This document has to be self-sufficient

    and it should include sample size, acceptance norms, place of testing, requirements of testreports and hold point beyond which the work can progress only after clearance from theowner. By standardizing the various testing requirements and procedures it is to beensured that it is not biased towards any particular manufacturer. These MQP(s) may beapproved for a period of three years instead of approval on contract-to-contract basis; thisalone could reduce the project execution time substantially by eliminating therequirements of submission of MQP, discussions and approval for each contract.

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    InspectionCustomer Inspection Points (CIP) are identified in MQPs to be carried out at various stagessuch as raw material stage, in-process stage and final stage. A certificate known as CIP is tobe issued at each stage; if the material/product/Sub System meets the variousrequirements specified in the specification, Standards, Approved data sheets/Drawings etc.In other words issuance of CIP certifies the various routine checks and technical features.However it does not certify the various contractual obligations, which are necessary forrelease of payment. Material Inspection and Clearance Certificate (MICC) is to be issued forall billable items as per contract after all the CIP stages, type tests, Bill of Quantities andother requirement are checked by the inspection engineer. Issuance of MICC does notrequire any inspection of the equipment but it requires checking of other contractualdocuments. It is a responsible job as it enables dispatch and payment to the contractor.Inspection is most critical and important activity in the quality system

    Field Q uality PlanField Quality Plans (FQP) should be followed for various construction activities at site likeSurvey, Civil Construction, Tower Erection, Insulator Hoisting, and Stringing & Earthing. TheFQP(s) describe the various stages for checks and testing requirements at each stage. TheFQP defines the requirement with regard to proper unloading/receipt of equipment andmaterial at site, storage, testing requirements of erection material, sampling andacceptance norms, test report requirements, pre commissioning checks. The responsibilityof implementation FQPs is with the site organizations, which are ensuring itsimplementation through Project Managers responsible for construction.

    Q ualifying Requirements -The eligibility criterion for the bidder is so designed that only those companies whichpossess minimum technical & commercial capability are allowed to bid so as to ensure thatthe project is executed without any technical or financial problem.The Qualifying Requirement of the Bidders consists of two requirements

    i. Technical - This criterion defines the minimum technical experience which the

    prospective bidder should posses to participate in the bid. This is defined in termsof the minimum of projects of similar nature which has been successfullycompleted & is in commercial operation for a minimum period of at least twoyears.

    ii. Financial - This defines the financial capability which the prospective biddershould possess so as to enable him to execute the project successfully without

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    having to face financial problem during the execution of the projects. This isdefined in terms of the net worth & the turnover of the prospective bidder of thepast three years.

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    Bidding System - O nce the Technical Specifications are finalized & the necessary approvalsare in place for the bid, the next step is initiation the process for inviting bids.For such bids first the number of packages are decided which can be either one for theentire scope or split the numbers into two three etc. one for Conductors supplies one forinsulators & the one for the balance supplies & turnkey execution of the project. In theinstant case the entire scope is defined as one package.For such type of tenders Single Stage one envelope or single stage two envelope process isadopted.The following Bid documents for the bid are prepared

    VO LUME- I CO MMERCIAL REQUIREMENTS

    Section I Invitation for Bids - IFB

    Section II Instruction to Bidders - ITBSection III General Terms and Conditionsof the Contract - GCC

    Section IV Erection Conditions of Contract - ECCSection V Special Conditions of Contract - SCCSection VI ANNEXURE - ANNEX

    VO LUME-II TECHNICAL REQUIREMENTS

    VO LUME- III BID PRO PO SAL SHEETS

    The bidders are to submit their bids based on the above documents in two sections as below.

    Section I TECHNO CO MMERCIAL SHEETSSection II PRICE SHEETS

    The documents are prepared on the following basis1. Define the pre qualifications of the eligible parties based on the project complexity,

    the prospective bidders past experience, financial & technical capabilities requiredfor faithful execution of the project.

    2. Modalities of bidding i.e. International Competitive Bid or Domestic Bid.3. Bid Validity Period - Based on the anticipated time required for evaluation &

    placement of orders, the Bidders are advised to submit their offers valid for aspecific period.

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    4 . Payment terms are so made that the materials are sequentially supplied to theproject as per the project needs. The payments for supplies are staggered so asensure commercial interest of the Parties at the same time ensure that theirfinancial needs in execution of the project is taken care of.

    5. The Bidders shall be given access to the prospective Project sites to familiarizethemselves with the site conditions.

    6. Suitable time is also given to the bidders to go through the documents & seekclarifications or deviations which they propose. O nce all the comments are receivedthen clarifications are issued to all the parties to establish a level playing field. If required a pre bid meeting is also arranged.

    PREFERENCE TO DOMESTICBIDDERS In single responsibility turnkey, a margin of preference shall be applied to the domestically

    manufactured goods in accordance with the following provisions:(a) The margin of preference shall not be applied to the whole package but only to thedomestically manufactured goods within the package(b) Goods offered from outside the territory of the Borrower shall be quoted CIF and goodsoffered domestically shall be offered ex-factory or ex-works (free of sales and similar taxes)(c) All other cost components, such as design as well as works, installation and supervision,shall be quoted separately(d) In the comparison of bids only the CIF price in each bid of the goods offered fromoutside the territory of the Borrower shall be increased by the applicable duty and othertaxes payable by a non exempt importer or by 15 percent, whichever is less

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    (e) If duties vary from item to item within a package, the appropriate tariff for each itemshall apply(f) No margin of preference shall be applied to any associated services or works included inthe package(g) Bidders will not be permitted or required to modify the mix of domestic and foreigngoods after bid opening.Bidders applying for the preference shall provide evidence necessary to establish theeligibility of a bid for the preference.The bidding documents shall clearly indicate the preference to be granted, the informationrequired to establish the eligibility of a bid for the preference claimed, and the proceduresto be followed in the comparison of bids, all as set forth above.

    BID EVALUATION -

    The bid is evaluated in four stagesStage 1 - In stage 1, the basic data & the record of the bid opening & the preliminarycompleteness of the bid is prepared.

    Stage 2 - In stage 2, the detailed examination of the bid is done to evaluate the substantialresponsiveness of bid. The substantial responsiveness is done for commercial terms &conditions as well as technical requirements. Various points like major deviations, oncommercial terms, execution period, non availability of signatures by authorized personnel,submission of bid security, conditional bids, deviations technical parameters, type testreports etc. are examined to eliminate bidders who are substantially unresponsive.

    Stage 3 - In Stage 3 detailed evaluation of all substantive responsive bids are done onCommercial & Technical Terms.

    a. The Commercial Terms list all the important commercial conditions specified in thebidding documents such as the bid security amount and validity period, terms of payment, liquidated damages etc., and list any deviations from requirements of thebidding documents. Further, it should be stated whether a financial adjustment tothe bid is considered necessary as a consequence of any minor deviation.

    b. The Technical Requirements sets out the scope of supply, delivery or work schedule,the important technical specifications of all major items of equipment and materialand warranty period. Every bid being evaluated should then be scrutinized in detailand its salient features entered into the table against the listed items of the biddingdocuments. As in the detailed evaluation of commercial terms, any substantialdeviations from the technical requirements of the bidding documents should be

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    listed and it should be determined whether a financial adjustment to the bid isnecessary or the bid should be rejected as nonresponsive .

    c.

    Financial Adjustment of Bid Prices (Commercial Aspects ) Bid price comparison is thefinal and most critical step in due bid evaluation process.The bid prices are adjusted for the purpose of bid comparison for those deviationswhich are permissible and which can be "translated" fairly into monetary values inthe manner specified in the bidding documents.All the adjustment factors and the basis of price comparison specified in the biddingdocuments must be taken into account. Factors not listed in the bidding documentsshall not be introduced during the bid evaluation.As a standard practice bids deviating in the terms of payment or Delivery scheduleare not accepted. Any bidder offering such deviation is asked to withdraw suchdeviations failing which they are considered substantially non responsive & rejected.

    Financial Adjustment of Bid Prices (Technical Aspects)Major deviations from the technical requirements which will result in the rejection of bids are discussed in Stage 2 of this Evaluation Procedure. O ther deviations,classified as minor or non substantive, which will not have any effect on price orquality of the goods and services offered, can be accepted for evaluation purposeswithout a price adjustment. O ther deviations, which will affect the cost, should be

    expressed in monetary terms and added to the bid price for purposes of evaluation.All cost adjustments should be made by without any consultations with the bidderregarding the justification for the amount of the adjustment.Adjustment for Completeness in Scope of SupplyThe cost of minor omissions or missing items in the scope of supply, services, etc.should be added to the bid price to allow for bid comparison on an equal basis. Theprice adjustment should be based on a reasonable estimate of the cost by theO wner, taking into consideration the corresponding quoted prices from otherconforming bids. The price adjustment should be based on the fair price of theomitted item. In the event of uncertainty, the average quoted price by the otherresponsive bidders may be used.Adjustment for Technical ComplianceSimilarly, a minor deficiency in technical compliance should not be a cause forrejection of the bid.

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    STAGE 4: DETERMINATION OF THE LOWEST EVALUATED SUBSTANTIALLY RESPONSIVEBIDAfter going through the above stages, the lowest evaluated substantially responsive bidshall be determined in accordance with the provisions of the bidding documents. As a finalstep prior to award, the O wner should always ensure that the bidder whose bid has beenevaluated as the lowest evaluated substantially responsive bid has the financial andtechnical capability to execute the contract satisfactorily. If this is determined as positive,the contract shall be awarded to the bidder which submitted the lowest evaluatedsubstantially responsive bid.

    ADB Guiding Principles

    The Bid Evaluation Report should include such information and documentation to establishto the satisfaction of the ADB that principles pursuant to the Loan Agreement and theProcurement Guidelines are satisfied in the bidding and bid evaluation process, and the

    proposed award of contract. These principles are as follows:(i) goods, services and works are sourced from the eligible member countries of the ADB

    (ii) the transparency of the bidding process has provided adequate, fair and equalopportunity to manufacturers, suppliers and contractors from all the eligiblemember countries of the ADB and

    (iii) The principle of economy and efficiency has been applied in the bidding andin the bid evaluation process by establishing the lowest evaluatedsubstantially responsive bid.

    The information and documentation to be submitted as part of, or with, the EvaluationReport should include the following:a) Basic Data Sheetb) A photocopy of the Invitation for Bids advertised in an English language local

    newspaper of wide circulation and evidence of copies of the Invitation for Bidstransmitted to designated addresses of the ADB's member countries

    c) The Record of Bid O pening including the attendance sheet of the representatives of bidders

    d) Tables of Bidders and Bid Prices including discounts offered as submitted and ascorrected for arithmetical errors; if substantial arithmetical error corrections areinvolved, evidence that corrections for arithmetical errors have been accepted bythe bidders concerned

    e) Table of Substantive Responsiveness showing the bidders' compliance with majorcommercial terms and conditions

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    f) Table of Detailed Evaluation of Bids with respect to salient commercial features of the bids, showing for each bid the adjustments made to the bid prices for deviationswith references to the clauses in the bidding documents on which they are based,and indicating the methods used in computing the adjustments

    g) Table of Detailed Evaluation of Bids with respect to salient technical features of thebids, showing for each bid the adjustments made to the bid prices for deviationswith references to the clauses in the bidding documents on which they are based,and indicating the methods used in computing the adjustments

    h) Table of Bid Price Comparison showing all bids selected for detailed evaluation, thebid price as opened, discounts if any, the arithmetically corrected bid prices, thefinancial adjustments for commercial terms and conditions, the financialadjustments for technical requirements to obtain the total evaluated prices for allbids concerned

    i) Records of discussions and/or copies of correspondence with bidders relating toclarifications of their bids

    j) Recommendation for award of contract

    The evaluation report should include a narrative section in which information not suitablefor presentation in the form of tables is presented, together with any supplementaryexplanations and information necessary for a complete understanding of all the factorsconsidered during bid evaluation. Particularly, the reasons for rejection of bids which areconsidered non-responsive to the bidding documents should be fully explained and

    justified in the narrative section. Similarly, the basis for adjustments in the bid pricesshould be adequately explained and, where appropriate, cross references made to therelevant provisions in the bidding documents. Finally, there must be a clear statementsetting out fully the rationale for the recommendation for contract award.

    The recommended amount for award of contract should be the bid price submitted bythe bidder as corrected for arithmetical errors plus the additional amount to make goodany deficiencies in the scope of supply or technical compliance. In agreeing with the

    successful bidder to make good any minor deviations in the contract price for scope of supply or technical compliance, the O wner should note the following.

    The cost of making good the minor deviations should be included in the contract price

    The final amount agreed between the O wner and the successful bidder should not exceedthe bid price (as corrected for arithmetical errors plus the amount to make good any

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    minor deviations in the scope of supply and technical compliance) of the second lowestevaluated substantially responsive bidder .

    The bid evaluation report and recommendation for contract award should be sent to theADB as early as possible. In any event, no later than 30 days prior to expiration of bidvalidity, the ADB should be furnished with three copies of the complete bid evaluationreport together with a covering letter. This is necessary to enable the ADB to reviewthoroughly the report and recommendation in order to obtain the necessary formalapproval within the ADB for transmission to the O wner.

    Utilization of knowledge available with the bidders- It is possible that some bidder mayoffer solutions which could be better than the one proposed by the owner. In such case if abetter technical solution is anticipated then it is better to go for Two Stage Bidding Process.In the Two-Stage bidding procedure, the bidders first of all submit their technical proposals,

    in accordance with the specifications, but without prices. The technical proposals areopened at the date and time advised in the bidding documents. The technical proposals areevaluated by the O wner and discussed with the bidders. Any deficiencies, extraneousprovisions and unsatisfactory technical features are pointed out to the bidders whosecomments are carefully evaluated the bidders are allowed to revise or adjust their technicalproposals to meet the requirements of the O wner. The objective of the exercise is toensure that all technical proposals conform to the same acceptable technical standard andmeet the technical requirements of the O wner Bids of bidders who are unable or notprepared to amend their technical bids so as to conform to the technical standard requiredby the O wner may be rejected, as deficient bids. After the evaluation of technical proposalshas been approved, the second stage is to invite bidders to submit revised technicalproposals and to submit price proposals based on the Bid Evaluation Procedure revised andagreed upon technical proposals. The price proposals and revised technical proposals areopened in public at a date and time advised by the O wner. In setting the date, the O wnershould allow sufficient time for bidders to prepare price proposals and incorporate thechanges required in the technical proposals. The price proposals and revised technicalproposals are evaluated and, the award of contract is made to the lowest evaluatedsubstantially responsive bidder.

    Ambiguities -As far as possible all ambiguities should be cleared & clarified at pre bid stage itself so as tomaintain fairness & transparency. However if any ambiguity is still existing in bidding stagethe same should be removed at techno commercial stage before price opening.

    PREBID STAGE-

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    The following steps are taken to ensure a level playing field & all the ambiguities areaddressed & evaluation done in a fair manner.Suitable time is also given to the bidders to go through the documents & seek clarificationsor deviations which they propose. O nce all the comments are received then clarificationsare issued to all the parties to establish a level playing field. If required a pre bid meeting isalso arranged wherein all such issues are addressed. All data required for the purpose of bidding like the topography, climate conditions & otherinformation are provided to the bidders.The Bidders shall be given access to the prospective Project sites to familiarize themselveswith the site conditions.

    PO ST BID STAGE -Even after addressing all possible ambiguities at pre bid stage, if some issues crop up atpost bid stage, every effort is made to resolve it prior to opening the price bid. Minor issues

    which do not materially affect the bid in substance or price can be accepted. All suchclarifications are properly documented & recorded.

    Deviation in Bidder s Proposal - In case if a bidder has submitted which is otherwise goodby deviates from some specification then the following methodology is adoptedIn case of major deviations, on commercial terms, execution period, non availability of signatures by authorized personnel, submission of bid security, conditional bids, deviationsin major technical parameters, type test reports etc. are not acceptable & the bids arerejected. However in case of any minor deviations the same is examined in detail & the bidprices are adjusted for the purpose of bid comparison for those deviations which arepermissible and which can be "translated" fairly into monetary values in the mannerspecified in the bidding documents. All the adjustment factors and the basis of pricecomparison specified in the bidding documents must be taken into account. Factors notlisted in the bidding documents shall not be introduced during the bid evaluation. As astandard practice bids deviating in the terms of payment or Delivery schedule are notaccepted. Any bidder offering such deviation is asked to withdraw such deviations failingwhich they are considered substantially non responsive & rejected. The cost of minoromissions or missing items in the scope of supply, services, etc. should be added to the bidprice to allow for bid comparison on an equal basis. The price adjustment should be basedon a reasonable estimate of the cost by the O wner, consultant or bid evaluationcommittee, taking into consideration the corresponding quoted prices from otherconforming bids. The price adjustment should be based on the fair price of the omitteditem. In the event of uncertainty, the average quoted price by the other responsive biddersmay be used.

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