UTTAR PRADESH STATE ROADS PROJECT Under IBRD Loan No. …Final).pdf · namely PWD T-1, PWD T-2 and PWD T-3 have been introduced with effect from April 1, 2007. The new forms and documents

PUBLIC WORKS DEPARTMENT Government of Uttar Pradesh, India

UTTAR PRADESH STATE ROADS PROJECT Under IBRD Loan No. 4684-IN

Technical Assistance for Implementation of Institutional Reforms in the Road Sector of Uttar Pradesh

REPORT TO REVISE PWD BIDDING AND CONTRACT DOCUMENT TO CURRENT GOI STANDARDS

(FINAL)

Report No. 21

July 2007

LEA International Ltd., Canada in joint venture with

LEA Associates South Asia Pvt. Ltd., India in association with

Ministry of Transportation of Ontario, Canada

Technical Assistance for Implementation of Institutional Reforms in Road Sector of Uttar Pradesh Report No. 21

July 2007 i

TABLE OF CONTENTS

A REVIEW OF CONTRACT DOCUMENTS .........................................................................................1

INTRODUCTION................................................................................................................................1

REVIEW OF DOCUMENTS...............................................................................................................1

B REVIEW OF DOCUMENT PWD T-1: FOR WORKS UP TO RS. 40 LACS .....................................2

SECTION 1: PRESS NOTICE / NOTICE INVITING TENDER..........................................................2

SECTION 2: INSTRUCTION TO BIDDERS (ITB) .............................................................................3

SECTION C: PREPARATION OF BID ..............................................................................................5

SECTION 3: QUALIFICATION INFORMATION................................................................................8

SECTION 4: GENERAL CONDITIONS OF CONTRACT..................................................................8

C REVIEW OF DOCUMENT PWD T- 2: WORKS COSTING ABOVE RS 40 LACS.........................11

SECTION 2: INSTRUCTIONS TO BIDDERS..................................................................................11

SECTION 3: QUALIFICATION INFORMATION..............................................................................16

SECTION 4: GENERAL CONDITIONS OF CONTRACT................................................................17

D DOCUMENT PWD T- 3: FOR SUPPLY OF MATERIALS..............................................................23

SECTION 1: PRESS NOTICE .........................................................................................................23

SECTION 2: CONDITION OF CONTRACT.....................................................................................23

SECTION 3: SPECIAL CONDITIONS FOR THE STONE METAL COLLECTION .........................23

E MINUTES OF MEETINGS WITH FOCUS GROUP D - CONTRACT, PROCUREMENT AND MANAGEMENT...............................................................................................................................24

F PRESENTATION TO PROJECT STEERING COMMITTEE...........................................................42

Glossary

ADB Asian Development Bank MSS Mixed Seal Surface

ADT Average Daily Traffic NABARD National Bank of Agricultural and Rural Development

AE Assistant Engineer NITHE National Institute for Training of Highway Engineers

BoQ Bill of Quantities NH National Highway

BOT Build Operate Transfer NHAI National Highways Authority of India

CBR California Bearing Ratio NIT Notice Inviting Tender

CE Chief Engineer ODR Other District Road

CEO Chief Executive Officer PAN Permanent Account Number

CRF Central Road Fund PCC Project Coordinating Consultant

CRRI Central Road Research Institute PCI Pavement Condition Index

CSR Civil Service Reforms PCU Passenger Car – equivalent Unit

DAO Divisional Account Officer PICUP Pradeshya Industrial & Investment Corporation of UP

DASP Diversified Agriculture Support Program PMS Pavement Management System

DBC Dense Bitumen Concrete PRI Panchayat Raj Institution

DRDA District Rural Development Authority PWD Publics Works Department

EE Executive Engineer RES Rural Engineering Services

E-in-C Engineer in Chief RIDF Rural Infrastructure Development Fund

GNP Gross National Product RMMS Road Maintenance Management System

GO Government Order RSPEU Road Safety Planning and Engineering Unit

GOI Government of India RSC Road Safety Cell

GoUP Government of Uttar Pradesh SDBC Semi Dense Bitumen Carpet

GSDP Gross State Domestic Product SE Superintending Engineer

HDM Highway Design Model SH State Highway

HGV Heavy Goods Vehicle SRF State Road Fund

HQ Head Quarter SRP-II State Road Project-II

HR Human Resource SRB State Road Safety Board

HRD Human Resource Development SRSC State Road Safety Council

HRM Human Resource Management SRSF State Road Safety Fund

IBRD International Bank for Reconstruction and Development TA Technical Assistance

IDS Institutional Development Strategy ToR Terms of Reference

IDSP Institutional Development And Strengthening Plan TNA Training Needs Assessment

IRC Indian Road Congress UP Uttar Pradesh

ITB Instruction To Bidders UPRNN Uttar Pradesh Rajkiya Nirman Nigam

ISAP Institutional Strengthening Action Plan UPSBCC Uttar Pradesh State Bridge Construction Corporation

ILO International Labour Organisation UPSRTC Uttar Pradesh State Road Transport Corporation

JE Junior Engineer UPSRP Uttar Pradesh State Road Project

MDR Major District Roads UPSHA Uttar Pradesh State Highway Authority

MLA Member of Legislative Assembly UNDP United Nations Development Programme

MIS Management Information System VOC Vehicle Operating Cost

MOST Ministry of Surface Transport VR Village Roads

MoSRTH Ministry of Shipping, Road Transport & Highways WB World Bank

MoRTH Ministry of Road Transport and Highways WBM Water Bound Macadam


July 2007 1

A REVIEW OF CONTRACT DOCUMENTS

INTRODUCTION

The Government of Uttar Pradesh has taken the decision to repeal the existing tender documents and forms No. GPW-8, GPW-9 and MF –69/70, MF 79/97, and MF-72 in the Public Works Department. This decision has been conveyed by the Secretary to the Government of Uttar Pradesh Public Works Depart vide Government order No. 6738/23-7-2006-176©/06 dated 5th January 2007. Against the repealed tender documents and form three new documents namely PWD T-1, PWD T-2 and PWD T-3 have been introduced with effect from April 1, 2007. The new forms and documents will be applicable for the following type and nature of works in UP PWD:

1. Document No. PWD – T-1: This document for tendering and contracting shall be applicable for construction works with a value of less than Rs.40.00 lacs.

2. Document No. PWD – T-2: This document for tendering and contracting shall be applicable construction works with a value of more than Rs.40.00 lacs.

3. Document No. PWD – T-3: This document for tendering and contracting shall be applicable for the supply of materials.

In 1972 the UP PWD drafted the Contract Documents, which have been in use till recently. The basic draw back of the existing Contract Documents is inequity in conditions regarding the contractual relationship between the Owner and Contractor, which has been identified as one of the major maladies in Project Execution. Against this backdrop, the GoUP took the initiative to develop a harmonized and transparent set of Contract Documents. The new Contract Documents adopted by GoUP with effect from April 1st 2007, should lead to reduction in delays as well as improvement in the productivity of both the Owner (PWD) as well as the Contractor.

REVIEW OF DOCUMENTS

Contract Documents PWD T-1 and PWD-T-2 are mostly based on standard Contract Document for domestic bidding recommended by Government of India, Ministry of Statistics and Programme Implementation Infrastructure and Project Monitoring division. These Contract Documents are generally a modified version of the World Bank’s National competitive bidding document.

This Report is a review of the latest Contract Documents that came into effect from April 1st 2007. Following our review of these documents we found some minor anomalies and inconsistencies which have been highlighted for each of the three Contract Documents, PWD T-1, PWD T-2, and PWD T-23


July 2007 2

B REVIEW OF DOCUMENT PWD T-1: FOR WORKS UP TO RS. 40 LACS

This document is applicable for tendering and contracting for construction works with a value of less than Rs.40.00 lacs. Basically this document is based on GOI’s tender document but with some of the provisions relating to the Instructions To Bidder and other clauses of the General Conditions of Contract, which have either been modified or deleted in order to simplify its application for works of smaller magnitude. Review has been made to cover all aspects of tendering and contracting. i.e. starting with the Press notification or Notice Inviting Tenderers to the final stage of award of work.

The Section numbers given below relate to those given in the PWD T-1

SECTION 1: PRESS NOTICE / NOTICE INVITING TENDER

1.1 Condition No.1. Eligibility of class of Contractor:

According to this notice the percentages rate bids are invited from the eligible and approved contractors registered with UP PWD, under class A, B, C, and D as the case may be. In the Table given in this notice there is no column that provides information as to which class of registered contractor is eligible for which work. There should be a column in the Table (Press Notice, paragraph 2), which should indicate the class of registered contractor eligible to bid for that particular work.

1.2 Table (Press Notice, paragraph 2) - Column 5: Bid Security

In this table column 5 relates to Bid Security. Under paragraph 8 of Notice Inviting Tender (NIT) the term ‘Bid Security’ has again been used. In the Instructions to Bidders and in the General Conditions of Contract the term 'Bid Security' has not been used. In its place the term 'Earnest money' has been used.

In order to maintain consistency the same term should be used uniformly throughout all Contract Documents. In this context the term ‘bid security’ is most appropriate. It is therefore proposed that the term ‘Ernest money’ should be replaced with by ‘Bid Security’.

1.3 Condition No 4:

According to Press Notice paragraph 4 of NIT paragraph 4, ‘Bids once submitted cannot be withdrawn’. This indirectly implies that though the bidder cannot withdraw his bid once submitted the option of modification is still open for him. It would be more appropriate if the second line of paragraph 4 was modified as under;

“Bids once submitted can neither be modified nor withdrawn”


July 2007 3

1.4 Condition No.15.

According to Press Notice paragraph 15, the Bidder is required to submit all information / documents using the prescribed proforma (T-4, T-5, T-6) with each bid. However the necessary proforma (T-4, T-5 and T-6) have not been appended with the bid documents. Further more it is not clear which information is required to be furnished along with the bids. Redrafting of this Paragraph is suggested.

SECTION 2: INSTRUCTION TO BIDDERS (ITB)

Instruction to Bidders, Table of Clauses

In this table of clauses, Clause-2 “Source of Funds” is indicated but in the text of ITB this clause does not exist. Because of this the serial numbering of all clauses listed in ITB does not match with those given in the Table of clauses.

It is suggested that in the text clause 2 "Sources of Funds" and other clauses, which are not applicable, or intended to be used, may be included but against such clause the term ‘Deleted’ may be mentioned. This arrangement will neither change the serial numbering of clauses nor would it affect the inter-referencing of the various clauses.

There are several other Clauses mentioned in this table which are not actually included in ITB. There are total of 29 clauses in ITB, whereas, the Table under Instructions to Bidders shows 34.

A. General

Clause 3: Qualification of the Bidder (For Works Costing More Than 10.00 Lacs)

Under clause 3.2 (b) and 3.2 (c) the bidder is to required to furnish information for the last five years, but the relevant years for which such information is required has not been specified. In order to maintain the uniformity and consistency the relevant years for which the information is required should be specified in these clauses.

Clause 3.2 (b) and 3.2 (c) should be amended as under:

3.2 (b) Total monetary value of civil construction works performed for each of last five years relevant to financial year e.g. 2001-02 to 2006-07

3.2 (c) Experience in works of a similar nature and size for each of the last five years Relevant to financial year e.g. 2001-02 to 2006-07

3.2 (d) Refers to Clause 4.4 B (b) (i) of ITB but no such clause exists in ITB.

This error has occurred because “clause 2 source of funds” is not included in the ITB. If clause-2 is included in ITB then the error can be rectified.

3.2 (e) Refers to clause 4.1 B (b) (ii) of ITB but no such clause exists in ITB.

This error has occurred because “clause 2 source of funds” is not included in the ITB. If clause-2 is included in ITB then the error can be rectified.


July 2007 4

3.4. A (a) Financial Turnover:

According to this clause the Financial Turnover of construction work should be at least equal to the estimated cost of work. The financial turnover as specified in GOI and WB documents is given below:

GOI- Not less than two and half times that of the estimated annual payments under the contract.

WB – Not less than two times that of the estimated annual payments under the contract

The turnover is an indicator of financial capacity of the Bidder to execute the work. In order to attract a financially sound bidder to bid for the work the turnover in a year during last five years should be at least twice that of the estimated annual payments under the contract. In cases where the duration of work is for 12 months the value of turnover shall be twice the value of work put to tender. If the duration of work is for 24 months the financial turnover would be equal to the estimated value of the work put to tender.

3.4 (b) Satisfactory Completion of similar work:

According to this clause a Bidder must demonstrate that he has satisfactorily completed as prime contractor, at least one similar work equal in value to one third of the estimated cost of work for which the bid is invited.

On comparison of value of work indicated in the WB and GOI document the value included in this clause is low. The values prescribed by WB and GOI are:

WB - 70% of value of work put to tender; and

GOI - 50% of value of work put to tender.

This parameter is an important indicator of the technical capability of the Bidder to execute the work for which the bids are invited. This is a very important parameter therefore the value of work should not be as low as that quoted in PWD T-1. It is suggested that the value of similar work should be at least 70% of the cost of work being bid for.

1.2 B (a) (i) Income Tax Clearance Certificate:

Under this clause the bidder is required to produce the current income tax clearance certificate. The Income tax department has now stopped issuing the income tax clearance certificate, with the result that the contractor will not be able to produce the desired certificate. It is suggested that the Bidder produce proof of submission of his latest income tax return along with his Permanent Account Number (PAN).

1.3 B (b) (i) – Construction Equipment:

This clause relates to the availability for construction work of the owned key equipment as stated in the appendix to ITB. It is suggested that word 'owned' should be amended to include 'leased or hired'.


July 2007 5

1.4 Sub Contractor’s Experience:

According to this clause a Sub-contractor’s experience and resources shall not be taken in account in determining the Bidders compliance with the qualifying criteria. Sometimes interpretation of term ‘sub-contractor’ leads to the conclusion that if a Bidder has executed work as a sub-contractor to the main contractor, such experience gained as a sub-contractor is not considered towards qualifying criteria. This interpretation of this clause is erroneous.

In fact the term sub contractor used here relates to proposed sub-contractors to execute specific parts of the work. The clause should be modified as “The proposed sub-contractor’s -------- “

3.6. Bid capacity:

In PWD T-1 the Value of factor 'M' has been set at 2.5. The value recommended by GOI and the WB is:

• GOI documents 'M' is 2.0

• World Bank documents 'M' is 1.5

A high value of ‘M’ enhances the bid capacity of the Bidder, which may some times have very disastrous results on the work. It is proposed that a reasonable value of 'M' is 2.0.

3.7 Poor Performance:

According to this clause a Bidder may be disqualified on the basis or a poor performance record such as abandoning the works, not properly completing the contract, inordinate delays in completion, litigation history, or financial failures. This clause is vague and discretionary. In order to enforce this clause proper parameters need to be set together with a tolerance limit.

New Parameter (Technical Experience)

According to the GOI document a qualifying criteria exists where the bidder should have executed in any one year a minimum quantity of key items. This criterion is not included. This criterion if included in ITB would lead to selecting more competent / capable Bidders.

SECTION C: PREPARATION OF BID

Clause 11. Documents comprising the Bid:

Though the term “Document Comprising the Bid” is included in the Bid documents the actual documents which comprise the Bid have not been specified. For the sake of clarity and transparency it is advisable to specify the documents, which the contractor shall submit.

This clause should be modified as under:

“The bid submitted by the Bidder shall comprise the following:

(a) The Bid (In the format indicated in Section--)

(b) Bid Security / Earnest money


July 2007 6

(c) Priced Bill of Quantities

(d) Qualification Information Form and documents

(e) Any other documents required to be completed and submitted by the Bidders in accordance with these instructions. The documents listed under serial no 3 and of Sub clause 7.1 shall be filled in without exception.

Clause 15: Earnest Money:

In the Press Notice / NIT the term ‘Bid Security’ has been used. But in this clause the term ‘earnest money’ has been used. Using different terms for the same item may lead to confusion and disputes.

It is advisable to use one term for this item throughout the Contract Documents. The term ‘bid security’ is more appropriate than ‘Earnest money’.

15.6 (a)- Forfeiture of Earnest Money:

According to this clause the Earnest Money may be forfeited if the bidder withdraws his bid after bid opening but within the period of bid Validity. What will happen if the Bidder modifies his bid? The text of this clause should be modified as under:

‘The earnest money / bid security may be forfeited if the Bidder withdraws or modifies his bid after bid opening, even if withdrawal or modification takes place during the period of bid validity’.

Clause 23 Corrections of Errors

Since the intention of GoUP is to invite tenders based on percentage rate method, the Bidder is to simply quote the percentage rate above/below/at par of the schedule of rates given in BOQ. Under this process of tendering the entire BOQ comprising of description of item, unit, quantity, unit price and amount, line total and grand totals etc is filled up by the employer prior to issue of tender documents to the Bidders. It implies that the employer has already corrected all arithmetic errors in respect of unit, unit price and line total etc. Under such circumstances there is no possibility of arithmetical errors so for percentage rate method bidding process this clause is redundant.

Adjudicator or Conciliator

There is no provision in the ITB and General Condition of contract for resolution of dispute other than Arbitration. In order to speed up the resolution of disputes an Adjudicator or Conciliator could be adopted to settle disputes between the Contractor and the Engineer.

Provision for an Adjudicator or Conciliator should be made in the ITB as well as in the General Conditions of Contract.

Appendix to 'Invitation' to Bidders (ITB)

The caption should be “Appendix to Instructions to Bidders (ITB)”


July 2007 7

1. The Employer is Executive Engineer

Generally Employer is Governor of Uttar Pradesh represented by the Chief Engineer/ SE/EE - UP PWD. The term 'Executive Engineer' should be replaced by an acceptable term determined by the PWD.

4.4 B (b) (i) Key equipment. The clause number is wrong - it should be 3.4B (b) (i)

It should also include owned / leased / hired

A list of equipment is given in the Contract Documents but this list should vary for different types of work. It should not be a generalised list but one that is tailor-made for each work.

According to the Contract Documents all equipment for a site laboratory should be provided as per SP-20-2002 / MORTH / UP PWD. With three types of standards specified there is likely to be confusion and misunderstanding. Since MOSRT&H specifications shall be designated as basis standard specifications for the works to be executed under these Conditions of Contract, stating only MORST&H is adequate.

It is proposed that since the MOSRT&H specification clause 121 is quite specific about the equipment to be installed in the laboratory this requirement should be deleted.

4.4. B (b) (ii) Availability of Technical Personnel

Requirement of technical personnel has been compiled in A. Table. For proper planning, execution, and administration of works the Position of Project Manager is most important. The Project Manager should have a minimum of 5 years experience to execute works with a value around 40 lacs. A degree holder with only two years experience will not normally be capable of satisfactorily handling the project work.

The technical personnel essential for works ranging between 10 to 40 lacs are:

Project Manager – Degree Holder in Civil Engineering with 5 years of relevant roads or structural works experience.

Material Engineer - Degree holder in Civil Engineering with three years experience in a relevant field.

Clauses 16.1 and 16.3 replace Earnest Money with Bid Security.


July 2007 8

SECTION 3: QUALIFICATION INFORMATION

1. Individual Bidders

TABLE

Insert the relevant Financial Year against clause 1.2

For Example;

Particular Financial Year

Value in Rs. lacs

Total annual volume of Civil engineering construction work executed and payments received in last five years immediately preceding the financial year in which bids are invited

2001-02 2002-03 2003-04 2004-05 2005-06

Table;

1.3.1 Insert Financial Year after sentence 'Attach certificate from Engineer in Charge, e.g. (From Financial Year 2001-02 to Financial Year 2005-06)

1.4 Replace 'Owned, leased or to be purchased' by 'Owned, leased, hired or proposed to purchase'

1.7 Insert after last five years (e.g. 2001-02 to 2005-06)

Forms:

Contractor’s Bid:

No form regarding Contractor’s bid has been included in the Bid Document. As per Indian Contract Act 1872 without an offer from the promisor (Contractor) the contract is not legally constituted. In order to legalize the contract the Contractor’s bid must be included in the forms, which the Bidder is required to submit after duly filling them in.

SECTION 4: GENERAL CONDITIONS OF CONTRACT

A- General

1. Definition:

1.1 Contract Data is referred to but no contract data is included in the Document

Definition of Contract Data should also be included.

Contract data is referred to in several definitions, therefore it should be included.

The Executive Engineer is designated as Employer: In contracts with the State Government the “Employer” is Governor of the State represented by an officer designated by the Government.


July 2007 9

The Assistant Engineer is designated as the ‘Engineer’ for administration of the Contract. For contract administration the Engineer should be vested with financial powers therefore it should be ensured that the AE is delegated adequate financial authority to administer the contract. It would be more appropriate to designate the Executive Engineer as “Engineer” and Assistant Engineer as ‘Engineer’s Representative’

Clause2 Interpretation

Sub Clause 2.3:

Contractor’s bid and Contract data have not been shown. These should be included in the document forming the Contract.

Sub Contracting:

Under Clause-3.2 (k) of ITB, the Bidder has to supply information for his proposal to sub-contract the component of works for construction/up-gradation with the total value of work sub-contracted amounting to not more than 25% of the contract price. Conditions regarding the sub-contracting of works are not included under the General Conditions of Contract. Since sub-contracting work up to 25% of the contract value is permitted, a clause regarding sub-contracting of works must be included in the Contract.

Insurance

No provision for insurance has been made under the conditions of contract. In order to safeguard the interest of both Employer and Contractor against any eventuality it is essential to have adequate insurance to cover the risk.

Clause 20 Dispute Redressal System:

According to this clause any disputes or differences of any kind that arise in connection with or arising out of this contract shall be referred for settlement to the competent authority. The competent authority shall be above the rank of ‘Engineer’ but in this clause the competent authority has not been named or designated. For clarity in the Conditions of Contract the competent authority must be clearly defined and designated.

It will be more appropriate if for settlement of disputes the services of an Adjudicator or Conciliator are availed.

Clause 23.1 Extension of Intended Completion date

According to this clause the competent authority shall extend the intended completion date. The competent authority has not been designated and should be clearly laid out.

Clause 24.1

According to this clause the competent authority may issue instructions to delay the start or progress of any activity within the works. The competent authority has not been defined. There cannot be multiple authorities to administer the contract.


July 2007 10

Clause 24.2 Milestone to be achieved during the contract period:

Milestones stated under this clause are related to the financial progress of the work. Invariably the milestones relate to the physical progress of the work. The milestones cannot be generalised and will vary from work to work.

Clause 45 Payment upon termination:

According to this clause if the Contract is terminated because of a fundamental breach of contract by the Contractor, the Engineer shall issue a certificate for the value of the work done and materials ordered, less any liquidated damages, less any advance payments received up to date of the issue of the certificate, and less the percentage indicated in the Contract data to apply to the value of the work not yet completed.

In this document neither the Contract Data is appended nor the Percentage to apply has been stated, therefore this clause cannot be enforced.

Advance:

There is no provision for Advance payment. Normally mobilization advance and Secured advances are made to the Contractor.

Price Adjustment:

The contract is for a fixed price. A fixed price contract is suitable if the stipulated time of construction is 12 months or less. In the absence of a price adjustment clause for a longer duration contract the Bidder most likely load the bid price. In India steel, cement and bitumen prices varies abnormally therefore the price adjustment clause should be included only for those contracts where duration of time exceeds 18 months.


July 2007 11

C REVIEW OF DOCUMENT PWD T- 2: WORKS COSTING ABOVE RS 40 LACS

Press Notice / Notice Inviting Tender

1.1. Condition No.1. Eligibility of class of Contractor:

According to this notice the percentages rate bids are invited from the eligible and approved contractors registered with UP PWD, under class A, and B as the case may be. In the Table given in this notice there is no column that provides information as to which class of registered contractor is eligible for which work. There should be a column in the Table (Press Notice, paragraph 2), which should indicate the class of registered contractor eligible to bid for that particular work.

1.2. Table - Column 5- Bid Security

In this table column 5 relates to Bid Security. Under paragraph 8 of Notice Inviting Tender (NIT) the term ‘Bid Security’ has again been used. In the Instructions to Bidders and in the General Conditions of Contract the term 'Bid Security' has not been used. In its place the term 'Earnest money' has been used.

In order to maintain consistency the same term should be used uniformly throughout all Contract Documents. In this context the term ‘bid security’ is most appropriate. It is therefore proposed that the term ‘Ernest money’ should be replaced with by ‘Bid Security’.

1.3. Condition No 4

According to Press Notice paragraph 4 of NIT paragraph 4, ‘Bids once submitted cannot be withdrawn’. This indirectly implies that though the bidder cannot withdraw his bid once submitted the option of modification is still open for him. It would be more appropriate if the second line of paragraph 4 was modified as under;

“Bids once submitted can neither be modified nor withdrawn”

SECTION 2: INSTRUCTIONS TO BIDDERS

A. General

4. Qualification of the bidder (for works costing more than 10.00 lacs)

Under clause 3.2 (b) and 3.2 (c) the bidder is to required to furnish information for the last five years, but the relevant years for which such information is required has not been specified. In order to maintain the uniformity and consistency the relevant years for which the information is required should be specified in these clauses.


July 2007 12

Clause 4.2 (b) and 4.2 (c) should be amended as under:

4.2 (b) Total monetary value of civil construction works performed for each of last five years relevant to financial year, e.g. 2001-02 to 2006-07

4.2 (c) Experience in works of a similar nature and size for each of the last five years relevant to financial year e.g. 2001-02 to 2006-07

4.2 (h) Evidence of access to lines of credit and availability of other financial resources / facility certified by the banker equal to 10% of the contract value. According to the WB this should be equal not to 10% of the contract value, but to the cash flow required for 3 months during peak construction stage. This amount shall vary from contract to contract. We propose that this clause should be modified in accordance with the WB requirement.

4.4. A

4.4 (a) Financial Turnover:

According to this clause the Financial Turnover of construction work should be at least equal to the estimated cost of work. The financial turnover as specified in GOI and WB documents is given below:

GOI- Not less than two and half times that of the estimated annual payments under the contract.

WB – Not less than two times that of the estimated annual payments under the contract

The turnover is an indicator of financial capacity of the Bidder to execute the work. In order to attract a financially sound bidder to bid for the work the turnover in a year during last five years should be at least twice that of the estimated annual payments under the contract. In cases where the duration of work is for 12 months the value of turnover shall be twice the value of work put to tender. If the duration of work is for 24 months the financial turnover would be equal to the estimated value of the work put to tender.

4.4 (b) Satisfactory Completion of similar work:

According to this clause a Bidder must demonstrate that he has satisfactorily completed as prime contractor, at least one similar work equal in value to one third of the estimated cost of work for which the bid is invited.

On comparison of value of work indicated in the WB and GOI document the value included in this clause is low. The values prescribed by WB and GOI are:

WB - 70% of value of work put to tender; and

GOI - 50% of value of work put to tender.

This parameter is an important indicator of the technical capability of the Bidder to execute the work for which the bids are invited. This is a very important parameter therefore the value of work should not be as low as that quoted in PWD T-1. It is suggested that the value of similar work should be at least 70% of the cost of work being bid for.


July 2007 13

4.4 B (a) (i) Income Tax Clearance Certificate:

Under this clause the bidder is required to produce the current income tax clearance certificate. The Income tax department has now stopped issuing the income tax clearance certificate, with the result that the contractor will not be able to produce the desired certificate. It is suggested that the Bidder produce proof of submission of his latest income tax return along with his Permanent Account Number (PAN).

4.4 B (b) (i) – Construction Equipment:

This clause relates to the availability for construction work of the owned key equipment as stated in the appendix to ITB. It is suggested that word 'owned' should be amended to include 'leased or hired'.

4.5 Sub Contractor’s Experience:

According to this clause a Sub-contractor’s experience and resources shall not be taken in account in determining the Bidders compliance with the qualifying criteria. Sometimes interpretation of term ‘sub-contractor’ leads to the conclusion that if a Bidder has executed work as a sub-contractor to the main contractor, such experience gained as a sub-contractor is not considered towards qualifying criteria. This interpretation of this clause is erroneous.

In fact the term sub contractor used here relates to proposed sub-contractors to execute specific parts of the work. The clause should be modified as “The proposed sub-contractor’s -------- “

4.6 Bid capacity:

In PWD T-2 the Value of factor 'M' has been set at 2.5. The value recommended by GOI and the WB is:

• GOI documents 'M' is 2.0

• World Bank documents 'M' is 1.5

A high value of ‘M’ enhances the bid capacity of the Bidder, which may some times have very disastrous results on the work. . A reasonable value of 'M' is 2.0.

4.4 (ii) Poor Performance:

According to this clause a Bidder may be disqualified on the basis or a poor performance record such as abandoning the works, not properly completing the contract, inordinate delays in completion, litigation history, or financial failures. This clause is vague and discretionary. In order to enforce this clause proper parameters need to be set together with a tolerance limit.

New Parameter (Technical Experience)

According to the GOI document a qualifying criteria exists where the bidder should have executed in any one year a minimum quantity of key items. This criterion is not included. This criterion if included in ITB would lead to selecting more competent / capable Bidders.


July 2007 14

Clause 15.2 Bid Validity:

Bid Security has been termed earnest money in this clause, which does not match with that of Press notice. It is suggested to replace the term ‘Earnest Money’ wherever appears in this clause by ‘Bid Security’

Clause 16 Earnest Money:

In the Press Notice / NIT the term ‘Bid Security’ has been used. But in this clause the term ‘earnest money’ has been used. Using different terms for the same item may lead to confusion and disputes.

It is advisable to use one term for this item throughout the Contract Documents. The term ‘bid security’ is more appropriate than ‘Earnest money’.

16.6 (a) Forfeiture of Earnest Money

According to this clause the Earnest Money may be forfeited if the bidder withdraws his bid after bid opening but within the period of bid Validity. What will happen if the Bidder modifies his bid? The text of this clause should be modified as under:

‘The earnest money / bid security may be forfeited if the Bidder withdraws or modifies his bid after bid opening, even if withdrawal or modification takes place during the period of bid validity’.

Clause 22 Bid Opening:

There is no clause whereby clarification on bids in respect of historical data needs to be provided by the Bidder. Mostly the Bidders do not furnish the information as desired so a clause needs to inserted with respect to provision and clarification of historical data. Clause 25 as given in GOI document is most suitable for this.

Clause 22.3

The term 'Earnest Money' should be replaced by the term 'Bid security'.

Clause 26 Corrections of Errors

Since the intention of GoUP is to invite tenders based on percentage rate method, the Bidder is to simply quote the percentage rate above/below/at par of the schedule of rates given in BOQ. Under this process of tendering the entire BOQ comprising of description of item, unit, quantity, unit price and amount, line total and grand totals etc is filled up by the employer prior to issue of tender documents to the Bidders. It implies that the employer has already corrected all arithmetic errors in respect of unit, unit price and line total etc. Under such circumstances there is no possibility of arithmetical errors so for percentage rate method bidding process this clause is redundant.


July 2007 15

Adjudicator or Conciliator

There is no provision in the ITB and General Condition of contract for resolution of dispute other than Arbitration. In order to speed up the resolution of disputes an Adjudicator or Conciliator could be adopted to settle disputes between the Contractor and the Engineer.

Provision for an Adjudicator or Conciliator should be made in the ITB as well as in the General Conditions of Contract.

Appendix to 'Invitation' to Bidders (ITB)

The caption should be “Appendix to Instructions to Bidders (ITB)”

Generally Employer is Governor of Uttar Pradesh represented by the Chief Engineer/ SE/EE - UP PWD. The term 'Superintending Engineer' should be replaced by an acceptable term determined by the PWD.

4.2 (g) The figure given is 10%: but this percentage cannot be generalized uniformly for all types of contracts. According to WB the given percentage should depend upon the cash flow required for 3 months during peak construction stage. This has to be worked out from cash flow statement for each works.

4.4 A (b) Percentage should be as recommended in Clause 4.4 (b) of ITB 'Satisfactory Completion of similar work'.

4.4 B (b) (i) Key equipment

It should also include owned / leased / hired

A list of equipment is given in the Contract Documents but this list should vary for different types of work. It should not be a generalised list but one that is tailor-made for each work.

According to the Contract Documents all equipment for a site laboratory should be provided as per SP-20-2002 / MORTH / UP PWD. With three types of standards specified there is likely to be confusion and misunderstanding. Since MOSRT&H specifications shall be designated as basis standard specifications for the works to be executed under these Conditions of Contract, stating only MORST&H is adequate.

It is proposed that since the MOSRT&H specification clause 121 is quite specific about the equipment to be installed in the laboratory this requirement should be deleted.

4.4. B (b) (ii) Availability of Technical Personnel

Requirement of technical personnel has been compiled in A. Table. For proper planning, execution, and administration of works the Position of Project Manager is most important. The Project Manager should have a minimum of 5 years experience to execute works with a value around 40 lacs. A degree holder with only two years experience will not normally be capable of satisfactorily handling the project work.


July 2007 16

The technical personnel essential for works ranging between 10 to 40 lacs are:

Project Manager – Degree Holder in Civil Engineering with 5 years of relevant roads or structural works experience.

Material Engineer - Degree holder in Civil Engineering with three years experience in a relevant field.

4.2 B (b) (iii): Minimum amount of liquid assets:

The figure quoted is 10% of contract value. According to WB this figure should depend upon the cash flow required for 3 months during peak construction stage. This has to be worked out from cash flow statement for each work.

Clause 4.7: M - 2.5 is too high: we propose that it should be 2.0 in accordance with GOI

Clause 16.1. & 16.3: Replace Earnest Money by Bid security

SECTION 3: QUALIFICATION INFORMATION

1. Individual Bidders

TABLE: Insert the relevant Financial Year against clause 1.2, for example:

Particular Financial Year

Value in Rs. lacs

Total annual volume of Civil engineering construction work executed and payments received in last five years immediately preceding the financial year in which bids are invited.

2001-02 2002-03 2003-04 2004-05 2005-06

Table

1.3.1 Insert financial year after sentence 'attach certificate from Engineer in Charge' e.g. from Financial Year 2001-02 to Financial Year 2005-06)

1.4 Replace 'Owned, leased or to be purchased' by 'Owned, leased, hired, or proposed to purchase'.

1.7 Insert after last five year ---------- ( e.g. 2001-02 to 2005-06)


July 2007 17

Forms:

Contractor’s Bid

No form regarding Contractor’s bid has been included in the Bid Document. As per Indian Contract Act 1872 without an offer from the promisor (Contractor) the contract is not legally constituted. In order to legalize the contract the Contractor’s bid must be included in the forms, which the Bidder is required to submit after duly filling them in.

SECTION 4: GENERAL CONDITIONS OF CONTRACT

A- General

Clause 2 Interpretation

Sub Clause 2.3 :

At serial No.4 Contractor’s bid is specified but not included. Should be included in the document forming the Contract.

7. Sub Contracting

The clause number 7 has been repeated for 'Other Contractors'. In order to set right this error the clause numbering may be done as under:

7.1 Sub Contracting

7.1.1. The contractor may sub contract part of the Construction work-------shall not alter the contractor’s obligations.

7.1.2. Beyond what is stated in clause 7.1.1 if the ------- following before according approval.

(a) --------

(b) ------

7.1.3. The Engineer would satisfy -------------- to the Employer whether

(a) ---------

(b) ---------

7.2 Other Contractors:

7.2.1. The Contractor shall co-operate ---------------- such modification

7.2.2. The Contractor should --------------------till the completion of works

Clause 24 Dispute Redressal System:

It will be more appropriate if for settlement of disputes the services of an adjudicator or conciliator are availed.


July 2007 18

Clause 28 Delays Ordered by the Engineer

Under these contract Documents the Superintending Engineer is designated as the Employer and there cannot be the 'Engineer'. Instructions regarding delays can only be given by the 'Designated Engineer' who under these Conditions of Contract is the Assistant Engineer.

36 Payment of Variation:

36.1 According to this clause if rates for variation items are specified in the Bill of Quantities, the contractor shall carry out such work at the same rate. This shall apply for variations up to the limit prescribed in the contract data. However no figure is given in the Contract data. We propose that a figure for the limit of variation works should be given in the Contract data.

39. Payment

39.2 According to this clause the Employer may appoint another authority, as specified in the Contract data, for making payment to the Contractor. However the Contract data does not include anywhere to enter this appointment. We recommend that provision be made in the Contract data so that it includes for the appointment of another authority.

40. Compensation Events:

The compensation event clause has not been fully described or elaborated. The major events which can result in compensation events have not been specified. The Procedure for dealing with compensation events has not been described.

It is proposed that this clause be amended in accordance with the WB / GOI as follows:

40.1. The following shall be Compensation events unless they are caused by the Contractor:

(i) The Employer does not give access to a part of site by the site possession date stated in the contract

(ii) The Employer modifies the schedule of other contractors in way, which affects the work of the contractor under the contract.

(iii) The Engineer or his nominee orders a delay or does not issue drawings, specifications or instructions required for execution of works on time.

(iv) The Engineer or his nominee instructs the Contractor to uncover or to carry out additional tests upon work, which is then found to have no defects.

(v) The Engineer or his nominee unreasonably does not approve for a sub-contract to be let.

(vi) Ground Conditions are substantially more adverse than could reasonably have been assumed before issuance of letter of acceptance from the information issued to the Bidders, from information available publicly and from visual inspection of the site.


July 2007 19

(vii) The Engineer or his nominee gives an instruction for dealing with an unforeseen condition, caused by the Employer, or additional work required for safety or other reasons.

(viii) Other Contractors, public authorities, utilities or the Employer does not work within the dates and other constraints stated in the Contract that cause delay or extra cost to the contractor.

(ix) The advance payment is delayed

(x) The effect on the Contractor of any of the Employer’s risk

(xi) The Engineer or his nominee unreasonably delays in issuing a certificate of Completion

(xii) Other Compensation event listed in Contract data or mentioned in the Contract.

Whenever any compensation event occurs, the contractor will notify the Employer within 14 days and provide a forecast cost of the compensation event.

40.2 If a compensation event would cause additional cost or would prevent the work being completed before the intended Completion Date, the Contract Price shall be increased and/or the intended completion date shall be extended. The Engineer or his nominee shall decide whether any by how much the Contract price shall be increased and whether by how much the intended completion date shall be extended.

40.3. As soon as information demonstrating the effect of each Compensation Event upon the Contractor’s forecast has been provided by the Contractor, it is to be assessed by the Engineer or his nominee and the Contract Price shall be adjusted accordingly. If the Contractor’s forecast is deemed unreasonable the Engineer or his nominee shall adjust the Contract Price based on Engineer or his nominee’s own forecast. The Engineer or his nominee will assume that the Contractor will react competently and promptly to the event.

41.1 Taxes

The contract does makes no allowance regarding reimbursement of new taxes, levies, or duties imposed by notification of Central or State Government after signing the contract. The Bidder could not have foreseen these changes in tax laws and therefore made no provision for them. This clause should be modified to incorporate provision for changes in the tax laws.

Price Adjustment

A price adjustment clause has not been included. It is proposed that such a clause in included in accordance with WB / GOI.

43. Security Deposit / Retention and release of Performance Security

43.3. Clause 51, which is referred to here does not pertain to securities. Clause 46 should have been referred.

43.4 Here again referred clause 51 is erroneous. The exact clause which should be referred is 46 Security,


July 2007 20

Advance payment

Repayment of Advance Payment

The language of this clause is vague. It does not lay down any condition as to when the recovery shall commence or at what rate.

It is proposed that this clause should be amended in accordance with GOI as follows:

“Recovery of Mobilization and Equipment advances will start when 15% of the work is executed and the recovery of total advance should be completed by the time 80% of the original Contract work is executed.”

5.2 Termination

According to this clause the only Employer can terminate the contract if the Contractor causes a fundamental breach of the Contract. This is not correct. The Contractor also has the right to terminate the Contract if the Employer causes a fundamental breach. This clause should be modified accordingly.

Fundamental breaches of Contract caused by the Contractor have been defined under this clause. In accordance with GOI it is proposed that the fundamental breaches caused by the Employer should also be included as follows:

• The Engineer or his nominee instructs the Contractor to delay the Progress of the Works and the instruction is not withdrawn within 28 days.

• A payment certified by the Engineer or his nominee is not paid by the Employer to the Contractor within 50 days of the date of the Engineer’s or his nominee’s certificate:

Contract Data:

1. Employer is shown as Superintending Engineer. In fact the Employer is the Governor of Uttar Pradesh represented by Chief Engineer.

2. The 'Authorized Representative' should be Superintending Engineer, and not Executive Engineer.

3. The 'Engineer' should be Executive Engineer and not Assistant Engineer

4. Description of work shall vary as per nature of work involved. It cannot be the same for all contracts.


July 2007 21

12. The Technical Personnel

Clause 9.1 The requirements set out in this clause are not sufficiently stringent and should be amended as follows:

Project Manager – Degree Holder in Civil Engineering with 5 years of relevant road works experience.

Material Engineer: Degree holder in Civil Engineering with three years experience in the relevant field.

13 (a) Insurance

Clause 13.1 Amount and Deductibles for insurance

The costs associated with each item need to be given a value and not a percentage.

The percentages given in the table are considered to be too low.

It is proposed that the amount to be insured against each item should be as shown in the table below.

It is assumed that (d) 'Personal injury or death', relates to members of the public and that 13 (b) relates to those actually engaged on the works.

Event Amount for which insurance cover to be taken Deductibles

(a) Loss of or damage to the works, plant, and materials Total estimated cost of work

(b) Loss of or damage to equipment

To be assessed by the Employer depending upon the nature of the work

(c) Loss of or Damage to property (except works, plant, and equipment) in connection with the contract

To be assessed by the Employer depending upon the nature of the work

(d) Personal injury or death

For total estimated cost works less than 2 crores - Rs 5.00,lacs per occurrence, and for maximum of three occurrences For total estimated cost of works more than 2 crores - Rs 5.00,lacs per occurrences, and for maximum six occurrences

Deductibles for insurance shall be as per tariff of General Insurance Company plus 20% of the premium amounts on items A,B,C,D

13 (b) Amount to be insured should be Rs. 10 lacs for one occurrence per year.

18 Clause 31.1 The key equipment for field testing laboratory

Two sources are given in the table, but the key equipment should be in accordance with Clause 121 of MORST&H


July 2007 22

21 Clause 44.1 (a) Milestones

Milestones stated under this clause are related to the financial progress of the work. Invariably the milestones relate to the physical progress of the work. The milestones cannot be generalised and will vary from work to work.

Bill of Quantities

On perusal of the Bill of Quantities the Bidder is required to quote a percentage above/below/at par against each item listed in the BoQ. When compared with this method the one in which the Bidder quotes the unit price for each item is far better. Such a method forces the Bidder to make a proper analysis of each item of BoQ and determine a competitive unit rate. Under the present method the Bidder may well be biased by the rates quoted in the BoQ and may therefore quote a higher rate than if he had to determine the rates from first principles.

In case the percentage rate system is to be followed it will be more appropriate if the Bidder quotes his rate in percentage above/below/at par on overall cost of work shown in BoQ. In such case the bidder is require to quote percentage above/below/at par at the end of BoQ and work out the bid price. This is illustrated below:

Item No. Description Unit Quantity Unit price In figures

and in words Amount

1

2

3

Grand Total A

We quote .......% above/below or at par on the Grand Total cost of work shown at A.

The percentages shall be quoted in words and figures. (In case of discrepancy in words and figure, the percentage quoted in words would prevail.)

Recommendation: We propose that rather than adopt the method given in the Bid Document that consideration is given to either of the two methods outlined above.


July 2007 23

D DOCUMENT PWD T- 3: FOR SUPPLY OF MATERIALS

SECTION 1: PRESS NOTICE

The first line of the press notice suggests it is applicable for construction work and has nothing to do with supply of materials. The terms 'percentage rate bids' and 'approved contractor' are generally applicable to works contracts. The text of the press notice needs to be modified.

SECTION 2: CONDITION OF CONTRACT

Though the caption of Section 2 is ‘Condition of Contract’ the text covers Instruction to the Bidder as well as to the Condition of Contracts.

Condition numbers 1, 2, 19, and 20 relate to Instructions to Bidders. Condition numbers 3 to 18 may be termed 'conditions of contract'. It is proposed that the Instructions to Bidders and the Conditions of Contract are separated.

SECTION 3: SPECIAL CONDITIONS FOR THE STONE METAL COLLECTION

PWD T-3 document is meant for obtaining supply of materials in general. However Section – 3 indicates that this document is typically used for the supply of stone metal and mainly deals with the specification aspects of this material.

Outcome of Review:

1. The text of contract conditions included in this document are biased in favour of the owner i.e. purchaser.

2. Instructions to the Bidder are not explicit.

3. Contract conditions comprise Instructions to the Bidders and Conditions of Contract, which create confusion.

4. Some of the conditions are repetitive

5. Condition regarding Inspection and testing of supplies is not included.

6. Conditions are silent about taxes, duties, and insurance.

7. Clause regarding warranty has not been included.

8. According to clause 17 the purchaser can order an increase or decrease to the quantity shown in BoQ at the same unit price and conditions. In all fairness a limit on change of quantities should be indicated.

9. It is evident from the text of clause numbers 2 to 9 that right from the stage of signing the bond the purchaser assumes that the supplier will fail to supply the goods within the specified period and that the quality of material supplied will be sub-standard. This is a clear example of inequity in the stated conditions.

Recommendations:

A most appropriate and suitable document for procurement of goods in UP PWD would be, with certain modifications, the World Bank’s Standard Bidding Documents for procurement of goods.


July 2007 24

E MINUTES OF MEETINGS WITH FOCUS GROUP D - CONTRACT, PROCUREMENT AND MANAGEMENT

Objective: to review Report No.21 - Revise PWB Bidding and Contract Document to current GOI standards:

Focus Group meeting was held on 25th May 2007 at 15.00 hrs. Following persons were present:

UPPWD

1. Mr. Jagdish Prashad Jain EE RSD-4 Lucknow

2. Mr. N.K.Bishayee EE IDS Cell Lucknow

3. Mr. Rajesh Kumar AE IDS Cell Lucknow

4. Mr. P.K.Saxena A.E. IDS Cell Lucknow

5. Mr. Anaya K Srivastava AE IDS Lucknow

6. Executive Engineer C.D-1 vice Smt Chitra Swaroop SE WB project Circle. Meerut

TA Consultant

1. Mr. S.K. Pancholy – Contract and Procurement Specialist

2. Mr. Uday Bhaskar Rao

1. QUALITY OF WORK EXECUTED:

Focus Group members expressed concern about the Quality aspects in road construction works. The group was of the view that under the current scenario the supervisory engineers are responsible for quality of work executed by the contractor. According to Focus Group the contractor should be made fully responsible for the Quality of work executed by him. Focus Group advised to include quality management system in the bid document.

FG desired to incorporate stringent conditions regarding Quality Control and the Contractor should be made responsible if it is discovered that the quality of work executed is inferior.

The TA Consultant brought to the notice of the Focus Group that conditions pertaining to quality control already exist in the General Conditions of Contract. (Clauses 25 to 28 for T-1 and clauses 30 to 33 for T-2) which are adequate to ensure the quality of work executed by the Contractor. It is implied from these conditions in the General Conditions of Contract that the Contractor is fully responsible for quality control of works. The quality assurance aspect of the work executed by the Contractor is taken care of by the Department’s Supervisory Engineers.

A third party should conduct a Quality Audit of works. A quality system is being developed for UP PWD organisation wherein functions, responsibilities and duties of various agencies related to quality shall be clearly defined and laid out. Focus Group desired to incorporate the following conditions under clause relating to C. Quality Control of General Conditions of the Contract.

33.2. The Contractor shall cooperate and provide all assistance to the Technical Audit team appointed by the Employer.


July 2007 25

33.2 If the Employer or his representative discovers at any time up to the expiry of defect liability period that the quality of materials used and workmanship of the work executed is not in conformity with the prescribed specifications, the contractor will be solely responsible to make up the deficiency in work and rectify the defects. If in the opinion of Employer the deficiencies on account of inferior quality of materials and workmanship at the stage of discovery cannot be corrected, the Contractor will pay the compensation as determined by the Employer.

33.3. The Contractor will submit every month along with invoice a statement of results of quality control tests conducted by him in the field-testing laboratory and the frequency. The contractor shall be responsible for the correctness of this statement in respect of frequency of Quality control tests and test results. The Engineer will check the statement submitted by the Contractor. If it is discovered at any stage that the statement submitted by the contractor is not conformity with the actual tests conducted and the results thereto, the Contractor will pay compensation

2. Correctness of Quantities in Invoices:

The Focus Group pointed out that under the existing departmental set up the JE/AE and EE are required to discharge multiple responsibilities therefore in some isolated cases mistakes and errors are most likely to occur in measurement of work executed. The Focus Group stated that there are instances where criminal cases were instituted against the departmental officers for such errors or shortcomings in measurements. The contractor is seldom made accountable for shortcomings and errors in measurement of works.

The Focus Group wanted a mechanism developed in the General Conditions of Contract wherein the Contractor should also be made responsible for accuracy of measurements of works.

The TA Consultants are of the view that as per PWD financial and account rules the Supervisory Engineers take the measurements of the executed works in the presence of Contractor and records same in the measurement books. With this provision it is implied that the Supervisory Engineer after satisfying himself has recorded the measurements, therefore he is responsible for the correctness of measurements.

The Conditions of Contract must be in conformity with the prevalent Public Works Financial and Accounts Rules of the State. In order to make a Contractor fully responsible for the correctness of measurements, revision of Public Works Financial and Account Rules would be necessary. It is possible to provide relief to the Departmental Engineers with respect to taking and recording measurement under Output and Performance - based Road Contracting (OPRC) system. For implementation of OPRC in UP PWD the consultants are assisting the Department.

In this context the Focus Group pointed out some anomaly/discrepancies regarding General Conditions of Contract Clauses No. 33 and 38 in T-1 and T-2 respectively in connection with Payment Certificate. TA Consultant commented on this anomaly while reviewing GCC clause by clause.


July 2007 26

3. DISCUSSIONS ON ITB AND GC OF DOCUMENT PWD T-1 AND PWD T-2

PWD Document Reference section/clause / condition

Brief Description Consultant’s view Decision of Focus Group

Action required

T-1 T-2

Section - 1 Press Notification/Notice Inviting Tender

Condition-2 Table

Condition-2 Table

Eligibility of class of Contractor

Indicate the class of contractor eligible to bid in Table

Agreed Revise the Table

Condition No. 4 Condition No. 4 Revision of sentence “Bids once submitted cannot be Withdrawn”

Bids once submitted can neither be modified nor withdrawn.

Agreed Press Notice Paragraph 4 Read “Bids once submitted can neither be modified nor withdrawn” in stead of “Bids once submitted cannot be withdrawn”

Condition No.15 NA Form T-4, T-5 and T-6

Prescribed form T-4, T-5 and T-6 not attached with documents

Agreed Attach forms T-4, T-4 and T-6

Section - 2 Instruction to Bidder (ITB)

Instructions to Bidder Table of clauses

NA INDEX of clauses of ITB

Table of clauses as shown should be retained but the clauses which are not required may be shown deleted in ITB

Agreed Revise Table


Clause-3 Qualification of the Bidders 3.2 (b), 3.2 (c) 3.2 (f)

Clause-4 Qualification of the Bidders 4.2 (b), 4.2. (c) and 4.2 (f)

Last five years Define the last Five years Accepted Write relevant financial year in the bid document


July 2007 27



Action required

T-1 T-2

3.2 (d) and 3.2 (e)

Refereed clause 4.4 B (b) (i) of ITB

Clause numbered referred is wrong

Accepted Correct the clause numbering

4.2 (g) and 4.2 (h) Credit lines Access to credit lines – Should be equal to cash flow required for 3 months during peak construction. Meaning of conditions g and h is the same

Accepted Credit lines shall be equivalent to Cash flow for 3 months during peak rate of construction shall be

3.4 (A) Financial Turnover


Last five years Specify the last five years Accepted Write relevant financial year in the bid document

3.4 A (a) financial Turnover

4.4 A (a) Financial Turnover

Minimum Financial Turnover

Should not be less than two times that of estimated annual payments under the contract

Agreed Revise the clause

3.4 A. (b) Satisfactory Completion of Similar work

4.4 A (b) Satisfactory Completion of Similar work

Value of one Similar work completed

Should be 70% of value of work put to tender

Accepted Revise the clause

3.4. B (a) (i) 4.4 B (a) (i) Income Tax clearance certification

Bidder to produce proof of submission of his latest Income tax return along with his PAN

Agreed Revise the relevant clause

3.4 B (b) (i) 4.4 B (b) (i) Construction Equipment

Amend word ‘owned’ “to include leased or hired”

Agreed Amend word ‘owned’ “to include leased or hired”


July 2007 28



Action required

T-1 T-2

Delete laboratory Equipment And Delete laboratory Equipment

3.5 4.5 Sub Contractor Revise ‘The proposed sub contractor-----“

Agreed Revise

3.6 4.6 Bid Capacity Factor- M= 2 Accepted Amend the clause

3.7 (ii) 4.7 (ii) Poor performance Set Parameter with tolerance limits

Should be recorded and quantified. Parameter shall be in terms of percentages of litigation cases with respect to net worth of the contractor

Modify and attach the proforma for supplying the required information

New New Technical Experience Include criteria of experience of executing minimum quantities of key items

Accepted Incorporate the criteria under a new sub clause 4.4 A (c)

11 Document Comprising Bid

Document comprising bid should be mentioned

Agreed Mention the Bid documents

14.1 15.2 Bid Validity Replace “Earnest money” by “Bid security.”

Agreed Change Earnest money by Bid security wherever it appears

15 15.1 to 15.6

16 16.1 to 16.6

Earnest Money Replace “Earnest money” by “Bid security.”

Agreed Change Earnest money by Bid security wherever it appears

15.6 (a) 16.6(a) Forfeiture of Earnest money

“ The bid security may be forfeited if the bidder

Agreed Change


July 2007 29



Action required

T-1 T-2

withdraws or modifies his bid after bid opening, even if withdrawn al or modification takes place during the bid validity”

22 Bid Opening No Provision to obtain historical Data, modify on the lines of GOI Doc

Agreed Modify the clause to account for collection of historical data.

23 26 Correction of Errors Not applicable for % above/below bid

Should be made applicable for item rate where required

Write a note to this effect

New New Adjudicator Not included should be included

May be included under T-2 Doc.

Make provision in T-2 by inserting required conditions

Appendix to ‘Invitation to Bidders (ITB)



Caption It should be read as appendix to Instructions to Bidders (ITB)

Agreed Make necessary corrections

1. 1) 1.1) The Employer Should be Governor of UP represented by T-1 SE T-2 CE

Agreed Should be filled in while preparing bid Document for individual contract

4.2 (g) The percentage is ten It should be equal to requirement of funds for 3 months during peak rate

Agreed to have credit lines equivalent to the 3 months


July 2007 30



Action required

T-1 T-2

requirements of fund at peak rate

4.4 B (b) (i) 4.4 B (b) (i) Key Equipment Owned/leased/hired List vary according to nature of work

Agreed Make needful correction in the doc

4.4 B (b) (ii) Availability of Technical manpower


Technical Personnel Project Manager – Degree holder with 5 years exp Material Engr- Degree holder with 3 yrs exp

Proj Man- 5 yrs degree holder or 8 years diploma holder Material Engineer Degree with 3 yrs or Diploma with 6 yr exp

QC equipment MORT&H to apply MORT&H only Delete the clause which reads as “ For Field testing Laboratory – All equipment should be provided at site lab and central lab as per SP-20-2002/MORT&H /UP PWD

Section - 3 Qualification Information

1 Clause 1.2

1 Clause 1.2

Last five years Specify the relevant years Agreed To be written while preparing bid for individual contract

Clause 1.3.1 Clause 1.3.1. Last five years Specify the relevant years Agreed To be written while preparing bid for individual contract


July 2007 31



Action required

T-1 T-2

1.4 1.4 Major Contractor’s items

Specify the items as per requirement of work Add Owned, leased, hired or to be purchased

Agreed Modify the clause

1.6 1.7 Last five years Specify the relevant years Agreed To be written while preparing bid for individual contract

Forms Forms Contractor’s bid Should be included Agreed Add the Contractor’s bid proforma

Section - 4 General Conditions of Contract

1 Definition Define “Contract data” Agreed Revise definition clause after incorporating definition for Contract data

Definition EE is Employer in T-1 and SE is Employer in T-2 Revise

Revise as above To be filled in for individual Contract document

2 .3 c 2.3 Interpretation Contractor’s bid not attached

Include Contractor’s Bid Agreed Add Contractor’s bid

7 Sub Contracting T-1 No clause for sub contracting T-2 Repeated as shown

25% sub contracting may be allowed

Amend the clause

Insurance Insurance T-1 No clause for Insurance should be included

Should be included for works costing above


July 2007 32



Action required

T-1 T-2

Rs.15.00lacs

20 24, 25 Dispute Redressal system

Adjudicator not included in T-1 In T-2 Comp Authority mentioned Adjudicator Should be appointed – T-1 Competent Authority to be defined – T-2

May be included for works >40 lacs

Define competent authority

23.1 Extension of Intended Completion date

Clarify Competent Authority Shall be as per the financial powers delegated to the PWD Officers

In Contract data specify the authority

24.1 28 Delay ordered and work progress by the Engineer

Competent authority be defined

Specify Engineer instead of competent authority

In Contract data specify the authority

24.2 Milestones Physical milestones not financial

Ok – Milestones in terms of Kilometre completed should be included

Should be included for each document suiting to the specific requirements

36 Payment of Variation Limit of variation should be fixed

Agreed Decide limit and specify


July 2007 33



Action required

T-1 T-2

39 Payment Employer may appoint another authority as specified in the Contract data

Authority should be shown in Contract data

Agreed Write in Contract data

40, 40.1 to 40.3 Compensation event Compensation events are not fully elaborated

Include as suggested

Modify the clause

41.1 Taxes Allowance be made regarding new taxes, levies or duties

Agreed

New Price adjustment Should be included Be allowed for works of value Rs.40 lacs and above. T-2 doc

43.3, 43.4 Security Deposit Wrong clause no referred. Refer clause 46

Should be corrected


Modalities of recovery of advance payment should be incorporated

Suggestion of Consultant agreed

44 52 Termination Fundamental breaches of contract caused by Employer should be included

Not accepted hence no change is needed

45.1 53.1 Payment upon termination

Percentage apply should be mentioned in the Contract

20%


July 2007 34



Action required

T-1 T-2

data

Contract Data

Contract data Employer Employer should be defined properly

Agreed

Contract data Authorized Rep of Employer

Define properly - T-2 SE representative of Employer

Contract data Engineer EE

Contract data Description of work Description of work shall vary depending upon the nature of work.

Agreed

Contract data 9.1 The Technical Personnel

The requirements set out in this clause are not sufficiently stringent

Agreed as stated earlier


July 2007 35



Action required

T-1 T-2

Contract data 13.1 Insurance Amount and deductible indicated I T-2 are not adequate

Insurance clause should be applicable for works costing Rs.15 lacs and above.

Contract data 31.1 Key Equipment for Field testing Laboratory

Two sources are given it should be as per clause 121 of MORT&H

Agreed

Contract data 44.1 Milestone s Milestone should be related to physical progress

Agreed

Bill of Quantity

BOQ Section 7 BOQ for percentage rate bids

As per the Document the Contractor is to quote above/below percentage for each item, which is very cumbersome. Quoting % above/below on the total amount of BOQ is better alternative

Agreed


July 2007 36

Meeting held with the Chairman of the Focus Group on 28th May 2007 at 5.00 pm.

The meeting was attended by S.K. Pancholy – Contract and Procurement Specialist and Mr. Uday Bhaskar Rao

The following issues were discussed with the Chairman the Focus Group D

Quantity Issue:

The Engineer is equally responsible for the correctness of measurements. However, the measurements should be recorded jointly to avoid any dispute between the contractor and the Engineer. The clause 33 / 38 requires amendment to this effect. Suggested amendment is placed below:

The Contractor shall submit to the Engineer or his nominee fortnightly/monthly statements of the value of the work executed less the cumulative amount certified previously supported with detailed measurements of the items of work executed in measurement books authorized by UP PWD. The measurements of works executed shall be taken jointly by the contractor and the Engineer or his nominee continuously and need not be connected with the billing stage.

The Engineer based on the joint measurements taken by him (or his nominee) and the contractor shall determine the value of work executed.

Review of Contract documents of MES and CPWD;

The Focus Group were of the opinion that for suggesting best procurement practices, the consultant should also study the contract documents applicable for Railways, CPWD and MES. In this context the provisions contained in TA Consultant's Description of Services under Action milestone-1 activity description is reproduced below:

“To revise PWD bidding and contract documents to current GOI standards”

In order to achieve milestone –1 the stipulated action required is clearly laid out, which reads “Consultant to review existing PWD Bidding and Contract Documentation, reviewing these in conjunction with World Bank and CIDC standards documents and make recommendation to PWD FG”.

The review of contract documents applicable for Railways, MES and CPWD is not included under the scope of services. The TA Consultants would like to further bring to the notice of the Focus Group that the focus of IDS study is on all those activities, which are connected with Roads in UP PWD. None of the Central Government’s Departments cited by the Focus Group are exclusively involved in the design, construction or maintenance of roads. Therefore the contract documents of this department cannot be applied to the road wing of UP PWD. Moreover, these Departments of Central Government are still managing with the old contract documents.


July 2007 37

The bidding document issued by the World Bank is recognized all over the World as the best model-bidding document. The documents issued by CIDC of GOI are based on the World Bank‘s sample bidding documents, therefore for review purposes these documents have been considered most appropriate, which is in conformity with the requirements set out in the Description of Services.

The Focus Group would like to see the CPWD and Railway Contract Document. The Focus Group desired that the Consultant to make available these documents for their review.

Smaller works:

For works costing Rs.15 lacs or less the Focus Group agreed to adopt the World Bank’s Document “Procurement of very small works under National Competitive Bidding procedures. Minor changes as UP PWD requirements should be made to this Document.

Miscellaneous:

In order to finally approve the recommendations for revising bidding documents under Report No.21, the Chairman of the Focus Group would like to have final interactions with the Consultant after studying the TA Consultant’s recommendations in the light of discussions held in aforesaid meetings.

It is anticipated that after the issue of this Report another Focus Group meeting will be scheduled for the week beginning 18th June 2007.


July 2007 38

Minutes of Meeting with Focus Group D – Contract, Procurement and Management, held on 18th July 2007

Action milestone: To review Report No.21 – Revise PWD Bidding and Contract Documents to current GOI standards.

Focus group meeting was held on 18th July at 15.30 hrs to discuss and finalize Report No.21.

Following persons were present:

UP PWD;

1. Shri Onkar Singh Kadam CE (Building) PWD, Lucknow

2. Smt. Chitra Swarop SE, World Bank Project Circle, Meerut

3. Shri Jagdish Prasad Jain EE, RSD-4, Lucknow

4. Shri Rajeev Swami EE, PD, Bulandshahar

5. Shri Pawan Verma SRP-II, W.B. Division, Kanpur

6. Shri N.K. Bishyee EE, IDS Cell

7. Shri Rajesh Kumar AE, IDS Cell

TA Consultant

1. Shri S.K.Pancholy – Contract and Procurement specialist

2. Shri Uday Bhaskar Rao

1. Review Contract Documents of CPWD and Railways

As agreed in Focus group meeting dated 28th May 2007 the Consultant placed before the Focus Group members the Bidding and Contract Documents applicable in CPWD and Indian Railways. The consultant brought to the notice of Focus Group that the CPWD and Indian Railways are still following the traditional contracting system of bidding and contracting, which in general is similar to the practice followed hitherto in UP PWD.

2. Time Control & Cost Control

Focus Group Chairman desired that the 'Competent Authority' to approve the extension of the Intended Completion date and variation in contract should be clearly defined and stated in the contract document T-1 and T-2. Further he desired that the competent authority should be in accordance with the powers delegated by the Government to the various officers in the PWD hierarchy.

The Consultant opined that Conditions of Contract for approval of extension of intended completion date are directly related to the provisions contained in the contract regarding variations and compensation events. An authority while considering time extension case will


July 2007 39

have to examine the matter after taking into consideration the impact on account of variations issued and compensation events occurred. Because of the inter-relationship of various clauses in the Contract it is pertinent to examine the authorities named in the Contract Document T-1 and T-2 to decide the matters relating to Variation and Compensation events.

Contract provisions regarding aforesaid matters in respect of Document T-1 and T-2 are given in the Table below:

Document T-1: Document T-2: B: Time Control Clause 23 Extension of the Intended Completion Date:

Clause 27 Extension of the Intended Completion Date:

Sub Clause 23.1. The authority to approve extension of intended completion is named as ‘Competent Authority’. According to Sub clause 23.2 the “Engineer” shall decide whether and by how much time to extend the intended completion date

Sub Clause 27.1 The authority to approve extension of intended completion is named as ‘Engineer’. According to clause 27.2 the “Engineer” shall decide whether and by how much time to extend the intended completion date

D Cost Control Clause 30 Variation Sub clause 30.1 According to this clause the “competent authority” have powers to order variations

Clause 35 Variation Sub clause 35.1 According to this clause the “Engineer” have powers to order variations

Clause 31 Payment for Variation Sub clause 31.3 The Engineer is to determine the rate for variation item

Clause 36 Payment for Variation Sub clause 36.3 The Engineer is to determine the rate for variation item.

Clause 35 Compensation Events Sub clause 35.1: The effects on the Contractor of any of the Employers Risk’s Clause 35.2: The competent authority shall decide whether and by how much the Intended Completion Date shall be extended.

Clause 40 Compensation Events Sub clause 40.1; the effects on the Contractor of any of the Employers Risk’s Sub clause 40.2; the “Engineer’ shall decide whether and by how much the Intended Completion Date shall be extended

Basically under a civil works contract the parties involved are:

1. Employer 2. Engineer 3. Contractor

The definition of Contract, Employer, Contractor and the Engineer stated in the contract document is stated below:

The Employer is the party who employs the contractor to carry out the Works, including routine maintenance. The employer may delegate any or all functions to a person or body nominated by him for specified functions.


July 2007 40

The Contractor is a person or corporate body whose bid to carry out the Works, including routine maintenance has been accepted by the Employer.

‘The contract is the contract between the Employer and the Contractor to execute, complete and maintain the works, it consists of documents listed in clause 2.3”.

The employer in turn appoints an Engineer on his behalf to supervise the work and to administer the contract. The Engineer is defined as a person appointed by the Employer who is responsible for supervising the execution of works and administering the contract.

The Contractor will either approach the Engineer or Employer for any action necessary for administration of the contract. His only concern is with respect to the powers delegated to the Engineer. In case the Engineer finds that for deciding a particular matter he has not been delegated the authority, under such circumstances he may obtain the approval from the employer, or his superior as the case may be. The process by which the Engineer obtains approval from the employer or his superior is purely an internal matter; the Contractor is not concerned about this.

It is noted that in T-1 Document the authority named for deciding extension of intended completion date, variation and compensation event is generally the ‘ Competent Authority’. In the case of document T-2 the authority named for deciding extension of intended completion date, variation and compensation event is ‘Engineer’.

In the Standard Bidding Document (SBD) of the World Bank and GOI the authority named for administrating the above mentioned contract clauses is ‘Project Manager’ and ‘Nodal officer’ respectively. Functionally the position of Project Manager / Nodal Officer is equivalent to the Engineer.

The Consultant believes that the authority to decide the above mentioned matters should be vested with the Engineer. This is inline with the World Bank and GOI standard bidding document. However, the Engineer may internally seek the approval from the Employer or a competent authority in Government hierarchy.

In case GoUP requires specifying the authority to decide and approve on the above-referred matters in the contract text, the concerned clauses may be amended as under.

Clause 23 for Document T-1 and 27 for Document T-2 Extension of the Intended Completion Date

23.1 (T-1) and 27.1 (T-2):

“The Engineer shall extend the Intended completion Date if---------------- to incur additional cost.” The Engineer will not approve the extension of Intended Completion without obtaining approval from the Employer or his nominee as the case may be.


July 2007 41

23.2 (T-1) and 27.2 (T-2): “The Engineer shall decide whether and by how much-----------------assessing the new Intended Completion Date”. The Engineer shall obtain prior approval from the Employer or his nominee for determination of extension in time.

Clause 30.1 (T-1) and Clause 35.1 (T-2)

“The Engineer shall issue variations within the scope of works, which are considered necessary by him. The Engineer will obtain prior approval of variation orders from his superiors or Employer as the case may be. Such variations shall form part of the Contract and the Contractor shall carry them out and include them in updated Programmes produced by him. Oral instructions of the Engineer for variations, unless followed by written confirmation shall not be taken into account.”

Clause 31.3 (T-1) and 36.3 (T-2)

“ If the rate for variation item cannot be determined in the manner specified in clause 31.1 or 31.2 (for T-1) / 36.1 or 36.2 (T-2), the contractor shall, within14 days of the issue of the order of variation work, inform the Engineer the rate which he proposes to claim, supported by analysis of the rates. The Engineer shall assess the quotation and determine the rate based on prevailing market rates within thirty days of submission of the claim by the contractor. The Engineer shall determine the rate after obtaining prior approval from the Employer or his nominee as the case may be. As far as possible, the rate analysis shall be based on the MORT&H standard data book and the prevailing schedule of rates of the district of PWD. The decision of the Engineer on the rate so determined shall be final and binding on the contractor.”

Clause 35 for T-1 and 40 for (T-2) Compensation event

Sub clause 35.2 (T-1) and 40.2 (T-2) Clause 40.1

If a Compensation Event prevents the works being completed before the Intended Completion Date, the Intended Completion date shall be extended. The Engineer with prior approval from Employer or his nominee shall decide whether and by how much the intended completion dates shall be extended.

4. Final approval:

The Focus Group approved Report No.21 with a remark that the Consultant shall submit a proposal for changes as advised by FG regarding Extension of Intended date and variation etc as explained under Pargraph-2 above.


July 2007 42

F PRESENTATION TO PROJECT STEERING COMMITTEE

UPSRP IDS

Report No. 21: Report to Revise PWD Bidding and Contract Document to Current GOI Standards

Sound and Efficient Contracts and Procurement Process

UPSRP IDS

PWD Focus Group - G

Shri Onkar Singh Kadam CE (Building) PWD, Lucknow

Smt. Chitra Swarop SE, World Bank Project Circle, Meerut

Shri Jagdish Prasad Jain EE, RSD-4, Lucknow

Shri Rajeev Swami EE, PD, Bulandshahar

Shri Pawan Verma SRP-II, W.B. Division, Kanpur

Shri N.K. Bishyee EE, IDS Cell

Shri Rajesh Kumar AE, IDS Cell

LEA International Ltd. and LEA Associates South Asia Pvt. Ltd.

Shri S.K. Pancholy Contract & Procurement Specialist

Report No. 21: Report to Revise PWD Bidding and Contract Document to Current GOI Standards

Review of Contract Documents

• Government Notification dated 5th January 2007 repealed existingtender documents and forms which were applicable since 1972

• New Bidding and Contract Documents introduced with effect from 01.04.07

UPSRP IDSReport No. 21: Report to Revise PWD Bidding and Contract

Document to Current GOI Standards

Forms of New Tendering and Contracting Documents



• PWD –T-1: Applicable for tendering and contracting for works with a value of less than Rs.40.00 lacs

• PWD –T-2: Applicable for tendering and contracting for works with a value of more than Rs.40.00 lacs

• PWD –T-3: Applicable for tendering and contracting for the supply of materials



Documents Reviewed

PWD T-1

PWD T-2

PWD T-3

CPWD Contract Documents

GOI’s Standard Bidding Document

World Bank’s Standard Bidding Documents

Indian Railway Contract Documents



Highlights of review

• PWD T-1 and T-2 Documents are based on Standard Bidding Document (SBD) developed by Government of India (GOI)

• GOI’s SBD is modified version of the World Bank’s NCB document

• New Document should result into reduction in delays and improvement in the productivity of both owner and Contractor.

• Noted Some anomalies and inconsistencies in Doc T-1, T-2 and T-3



Focus Group meetings were held on

25.05.07

28.05.07

18.07.07


Document to Current GOI StandardsFinal Recommendations:

1. Accept the Recommendations of Consultant regarding rectifications of anomalies, inconsistencies and abnormalities in documents T-1, T-2 and T-3.

2. Quality Control; Incorporate additional conditions:• Contractor to cooperate and provide assistance to the Technical audit team• Contractor to pay compensation for defects noted and cannot be rectified till the expiry

of Defect Liability Period. • Contractor to submit statement of QC test results along with invoice.

3. Measurements of works executed should be recorded jointly by the Engineer and the Contractor

4. For Smaller works of value less than Rs.15 lacs adopt WB’s Document “Procurement of very small works under NCB”.

5. Use the World Bank’s Standard bidding Document for procurement of goods with modifications in place of Document PWD T-3 Supply of material

6. Engineer to extend the intended completion date after obtaining approval from the Employer

7. Engineer to issue variation orders after obtaining prior approval from the Employer8. Engineer to determine time extension on account of compensation event after obtaining

prior approval of the Employer



Accepted Define the last Five years Last five years Clause-4 Qualification of the Bidders4.2 (b), 4.2. (c) and 4.2 (f)

Clause-3 Qualification of the Bidders3.2 (b), 3.2 (c) 3.2 (f)


Agreed Table of clauses as shown should be retained but the clauses which are not required may be shown deleted in ITB

INDEX of clauses of ITB NAInstructions to Bidder Table of clauses


Agreed Prescribed form T-4, T-5 and T-6 not attached with documents

Form T-4, T-5 and T-6 NACondition No.15

Agreed Bids once submitted can neither be modified nor withdrawn.

Revision of sentence “Bids once submitted cannot be Withdrawn”

Condition No. 4Condition No. 4

Agreed Indicate the class of contractor eligible to bid in Table

Eligibility of class of Contractor

Condition-2 Table

Condition-2 Table

Section - 1 Press Notification/Notice Inviting Tender

T-2T-1

Decision of Focus Group

Consultant’s viewBrief DescriptionPWD Document Reference section / clause / condition



Agreed Bidder to produce proof of submission of his latest Income tax return along with his PAN

Income Tax clearance certification

4.4 B (a) (i) 3.4. B (a) (i)

Accepted Should be 70% of value of work put to tender

Value of one Similar work completed

4.4 A (b) Satisfactory Completion of Similar work

3.4 A. (b) Satisfactory Completion of Similar work

Agreed Should not be less than two times that of estimated annual payments under the contract

Minimum Financial Turnover

1.A (a) Financial Turnover

3.4 A (a) financial Turnover

Accepted Specify the last five years Last five years 4.4 (A) Financial Turnover


Accepted Credit lines shall be equivalent to Cash flow for 3 months during peak rate of construction shall be

Access to credit lines –Should be equal to cash flow required for 3 months during peak construction. Meaning of conditions g and h is the same

Credit lines 4.2 (g) and 4.2 (h)

Accepted Clause numbered referred is wrong Refereed clause 4.4 B (b) (i) of ITB

3.2 (d) and 3.2 (e)

T-2T-1





Agreed Replace “Earnest money” by “Bid security.”

Earnest Money 1616.1 to 16.6

1515.1 to 15.6

Agreed Replace “Earnest money” by “Bid security.”

Bid Validity 15.2 14.1

Agreed Document comprising bid should be mentioned

Document Comprising Bid 11

Accepted Include criteria of experience of executing minimum quantities of key items

Technical ExperienceNew New

AcceptedSet Parameter with tolerance limits –Quantify in terms of % of litigation cases in relation to net worth of contractor

Poor performance 4.7 (ii) 3.7 (ii)

Accepted Factor- M= 2 Bid Capacity 4.6 3.6

Agreed Revise ‘The proposed sub contractor-----“

Sub Contractor 4.5 3.5

Agreed Amend word ‘owned’ “to include leased or hired”Delete laboratory Equipment

Construction Equipment4.4 B (b) (i) 3.4 B (b) (i)

T-2T-1





Agreed Should be Governor of UP represented by T-1 SET-2 CE

The Employer 1.1) 1. 1)

Agreed It should be read as appendix to Instructions to Bidders (ITB)

Caption Appendix to ‘Invitation to Bidders (ITB)



May be included under T-2 Doc.

Not included should be included Adjudicator New New

Should be made applicable for item rate where required

Not applicable for % above/below bid Correction of Errors 2623

Agreed No Provision to obtain historical Data, modify on the lines of GOI Doc

Bid Opening 22

Agreed “ The bid security may be forfeited if the bidder withdraws or modifies his bid after bid opening, even if withdrawn al or modification takes place during the bid validity”

Forfeiture of Earnest money

16.6(a) 15.6 (a)

T-2T-1





Agreed Specify the relevant yearsLast five yearsClause 1.3.1. Clause 1.3.1

Agreed Specify the relevant years Last five years 1Clause 1.2

1 Clause 1.2

Section - 3 Qualification Information

MORT&H to apply QC equipment

Proj Man- 5 yrs degree holder or 8 years diploma holder Material Engineer Degree with 3 yrs or Diploma with 6 yr exp

Project Manager – Degree holder with 5 years expMaterial Engr- Degree holder with 3 yrs exp

Technical Personnel 4.4 B (b) (ii) Availability of Technical manpower


AgreedOwned/leased/hired List vary according to nature of work

Key Equipment4.4 B (b) (i) 4.4 B (b) (i)

Agreed to have credit lines equivalent to the 3 months requirements of fund at peak rate

It should be equal to requirement of funds for 3 months during peak rate

The percentage is ten 4.2 (g)

T-2T-1





May be included for works >40 lacs

Adjudicator not included in T-1 In T-2 Comp Authority mentioned Adjudicator Should be appointed – T-1 Competent Authority to be defined – T-2

Dispute Redressalsystem

24, 25 20

Should be included for works costing above Rs.15.00lacs

T-1 No clause for Insurance should be included

Insurance Insurance

25% sub contracting may be allowed

T-1 No clause for sub contractingT-2 Repeated as shown

Sub Contracting 7

AgreedInclude Contractor’s Bid InterpretationContractor’s bid not attached

2.3 2 .3 c

Revise as above EE is Employer in T-1 and SE is Employer in T-2 Revise

Definition

AgreedDefine “Contract data”Definition 1

Agreed Specify the relevant years Last five years 1.7 1.6

Agreed Specify the items as per requirement of work Add Owned, leased, hired or to be purchased

Major Contractor’s items 1.4 1.4

T-2T-1





Be allowed for works of value Rs.40 lacs and above. T-2 doc

Should be included Price adjustment New

Agreed Allowance be made regarding new taxes, levies or duties

Taxes 41.1

Include as suggested Compensation events are not fully elaborated

Compensation event 40, 40.1 to 40.3

AgreedAuthority should be shown in Contract data

Payment Employer may appoint another authority as specified in the Contract data

39

AgreedLimit of variation should be fixed

Payment of Variation 36

Ok – Milestones in terms of Kilometre completed should be included

Physical milestones not financial

Milestones 24.2

Specify Engineer instead of competent authority

Competent authority be defined

Delay ordered and work progress by the Engineer

2824.1

Shall be as per the financial powers delegated to the PWD Officers

Clarify Competent Authority

Extension of Intended Completion date

23.1

T-2T-1

Decision of Focus GroupConsultant’s viewBrief DescriptionPWD Document Reference section /clause / condition



Agreed as stated earlier

The requirements set out in this clause are not sufficiently stringent

9.1 The Technical Personnel

Contract data

AgreedDescription of work shall vary depending upon the nature of work.

Description of work Contract data

EE Engineer Contract data

- T-2 SE representative of Employer

Define properlyAuthorized Rep of Employer

Contract data

AgreedEmployer should be defined properly Employer Contract data

Contract Data

20% Percentage apply should be mentioned in the Contract data

Payment upon termination 53.1 45.1

Not accepted hence no change is needed

Fundamental breaches of contract caused by Employer should be included

Termination 5244

Suggestion of Consultant agreed

Modalities of recovery of advance payment should be incorporated


Should be corrected Wrong clause no referred. Refer clause 46

Security Deposit43.3, 43.4

T-2T-1





AgreedAs per the Document the Contractor is to quote above/below percentage for each item, which is very cumbersome.Quoting % above/below on the total amount of BOQ is better alternative

Section 7 BOQ for percentage rate bids

BOQ

Bill of Quantity

Agreed Milestone should be related to physical progress

44.1 Milestone sContract data

Agreed Two sources are given it should be as per clause 121 of MORT&H

31.1 Key Equipment for Field testing Laboratory

Contract data

Insurance clause should be applicable for works costing Rs.15 lacs and above.

Amount and deductible indicated I T-2 are not adequate

13.1 Insurance Contract data

T-2T-1

Decision of Focus GroupConsultant’s viewBrief DescriptionPWD Document Reference section / clause / condition