1

PROCEDURE ORDER

Ref.No: PO/03/02 Dated: 21.08.1993

(PO/03/02, dt. 21/08/93; Amd.1, dt. 11/04/96; Amd.2, dt. 13/04/00; Amd.3, dt.

26/10/02; Amd.4, dt. 05/01/04; Amd.5, dt. 06/01/06; Amd.6, dt. 06/08/07)

1.Subject

2. Purpose

3. Effective from

4. Replaces earlier PO Nos.:

Contract Procedure for Works Division.

This order deals with the detailed procedure for award of

works by Works Contract Section, including tendering,

receipt and opening of tenders, formation of T.C.,

preparation of agreements and other related matters.

21.08.1993

Nil

Agencies Involved

Agency Abbreviation

Concerned Department CD

Works Contract Section WCS

Head of the Department HOD

Competent Authority CA

Finance Department FIN

Tender Opening Committee TOC

Tender Committee TC

Sl.No. Step/Activity Agenc

y

1.0

1.1

1.2

1.3

2.0

2.1

RECEIPT OF PROPOSALS

The proposal for tendering shall be prepared in the Proforma given at

Annexure-I alongwith all necessary enclosures. After taking the approval

of the competent authority, the proposal shall be forwarded to the Works

Contract Section/Construction Contract Section, as the case may be.

In case of additions / modifications / rectification proposals, the approval

of the competent authority shall be taken as per the approved AMR

Procedure and the proposal for tendering shall be prepared as mentioned

above and forwarded to Works Contract Section/Construction Contract

Section, as the case may be.

In case of item rate tenders, indenting department shall furnish item-

wise estimated rates in line with BOQ in a sealed cover and forward the

same along with specification and total estimated value of work to the

contract awarding dept.

PREPARATION OF TENDER DOCUMENTS

Comprehensive tender document shall be prepared based on the

proposal given by the department, to enable the tenderers to submit a

comprehensive and complete tender. The documents shall normally

consist of the following :

i) Tender notice as per the proforma given at Annexure-II.

ii) Instructions to the tenderer as per the Annexure-III. iii) General Conditions of Contract for construction works iv) Scope and specification of work v) Tender schedule (B.O.Q) as per the proforma given at

Annexure-IV.

vi) Drawings / sketches, wherever necessary.

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CD

CD

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2.2

3.0

3.1

3.2

3.2.1

3.2.1.1

3.2.1.2

3.2.1.3

3.2.2

Consider the following aspects while preparing the tender documents :

i) Whether water, power and compressed air for the works can be made

available by VSP.

- Check-up the availability of the same in the particular site of work

before stipulating the provision for such clause. If they cannot be

provided, stipulate that the same would be contractor’s responsibility

at his cost.

ii) Whether escalation clauses are provided or not.

iii) Whether the clauses for various advances (mobilisation, secured

advance on materials, shuttering, machinery etc.) are as per

approval.

iv) Any specific conditions to be confirmed by the tenderers.

v) List of materials to be issued by VSP (free or on recovery)

vi) List of equipments (free or on hire charges) like cranes etc. to be

provided.

- if the equipments cannot be provided, stipulate that it would

be contractor’s responsibility at his cost.

MODE OF TENDERING

The following shall be the modes of tendering/awarding the work

contracts.

i) Short open tender

ii) Open tender with press publicity

iii) Limited tenders

iv) Single negotiated tender

v) Award of work at approved schedule of rates.

vi) Deposit works

Tender notices shall be issued in the cases (i), (ii) and (iii) of above para

3.1.

Short Open Tender

[Amendment No. 6:- Henceforth for SOT cases against eligibility criteria

only the required Registration Category and Class shall be indicated in

the NIT and the tenderers are required to submit copy of the registration

letter to this effect to qualify themselves for the tender. In case there are

any other eligibility criteria specific to a particular tender the same shall

also be mentioned in the NIT]

In respect of work of estimated value upto Rs.25 lakhs, short open

tenders shall be invited giving wide publicity among the contractors by

displaying on the notice boards of the Works Contracts section, the

works departments and other places.

In case of works of specialised nature etc., where head of works contract

section and the concerned department are of the opinion that

competitive tenders are not likely to be received by local circulation,

publish the tender notices in local newspapers.

The tender documents shall be issued on payment of the required cost,

to the intending contractors, who are registered with the works contract

section. While issuing the tender documents, the category of registration

in terms of capability and discipline shall be strictly followed.

Open Tender with press publicity

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HOD

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3.2.2.1

3.2.2.2

3.2.2.3

3.2.2.4

3.2.2.5

3.2.3

3.2.3.1

3.2.3.2

3.2.3.3

3.2.3.4

3.2.3.5

3.2.3.6

3.3

Tender notices shall be published for all works of value more than Rs.25

lakhs in the news papers as given at Annexure-V.

The tender documents shall be issued on payment of the required cost,

to the intending contractors, after verifying the capabilities and field of

experience.

It shall be ensured that the contractors shall have executed at least one

similar work of value equivalent to 50% of the estimated value of work

being tendered out. Also ensure that the tenderers shall have an annual

turnover at least equivalent to the estimated cost of the work with a

completion period less than one year. In the case of works with

completion period of one year and above, the contractors’ turnover shall

not be less than the turnover per year required for completing these

works. The minimum turnover per year required shall also be mentioned

in the tender notice on the above basis. Any relaxation felt necessary in

the minimum requirement as mentioned above shall be approved by GM

(W)/Addl.GM (W). The documents shall be issued to those contractors

who satisfy the requirement as stipulated in the tender notice with

clearance of officer not below the rank of a Manager.

Prequalified bids shall be invited with the approval of GM (W) in the case

where execution of the work calls for high skill, specialisation and

experience in the field. Consider the tenders invited from the prequalified

parties as open tenders.

All the DDs collected as above shall be sent to the Cash Section after the

closing date of issue of tender documents of each tender in a

consolidated form.

Limited Tender

Limited tenders may be called for under the following circumstances.

i) Where the parties are to be fixed at very short notice and

sufficient time is not available for open tender notice.

ii) Where the work has to be done by specialised parties only and

limited parties are available in the line of the particular work.

The approval of the competent authority shall be obtained where

approval is not available.

The tender notices shall be issued as per Proforma given at Annexure-II,

to at least six parties who are registered in the required category.

In case it is not possible to identify six parties, the reasons for the same

shall be recorded and the approval of the next higher authority shall be

obtained.

If the required expertise is not available with the registered parties, the

non-registered parties may be included with the approval of the GM (W).

The cost of the tender documents shall not be charged from the parties

considered for limited tender enquiry.

Single Negotiated Tender

Award of work against single negotiated tender to be restricted to the

following situations only :

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3.3.1

3.3.2

3.3.3

3.3.3.1

3.3.3.2

3.3.3.3

3.3.3.3.1

3.3.3.4

3.3.3.4.1

3.3.3.4.2

3.4

3.4.1

3.5

3.5.1

3.6

To a Public Sector Undertaking which will carryout the work with its own

departmental workmen, where work is to be started immediately. The

rates are to be negotiated and fixed by a committee approved by the

competent authority or as per previous approved rates, if available.

Repair jobs of specialised and critical nature which can be done only by

the equipment manufacturers, authorised representative or agencies

having specialised expertise.

Under emergency conditions, where in a job has to be started

immediately, there may not be time to go through the normal tendering

and negotiating procedure. In such a situation, follow the procedure

given below.

Contact the enlisted parties for similar job by telephone or contact their

representatives available on the shop-floor and ask them to come up

with quotations immediately.

If more than one party comes up with quotations, select the lowest

bidder with due approval of the competent authority (as per the

approved delegation of powers shown at the Annexure). Ask him to

immediately start the job and issue him with letter order by department

followed by formal WO in 2 (two) days time.

If only one enlisted party is available for the job, give the job to him on

nomination basis with due permission from the GM of the concerned

zone.

The rates should be fixed based on the existing and/or approved rates/or

rate analysis from first principle and the cost of the job should be

certified by the concerned HOD.

If no suitable enlisted party comes up for the particular job, record the

same, and follow the procedure mentioned above for non-enlisted

parties.

In these cases, at least verbal approval should be obtained from the

Concerned GM of the zone before beginning of the job and written

approval should be obtained from him on the next working day.

In all these cases the rates should be fixed based on the existing and/or

approved rates/or rate analysis from first principle and the cost of the

job should be certified by the concerned HOD.

Award of work at approved schedule of rates

Work shall be awarded to the enlisted parties on rotation basis, with the

consent of the parties at the approved rates as per the delegation of

powers.

Deposit Works

The deposit works shall be resorted to for the works through the

Government agencies like CPWD, Railways or Government undertakings,

with the approval of the competent authority.

The EMD amount and the cost of the tender document as required to be

tendered by the tenderer shall be clearly specified in the tender notice

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CD

CD

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CD

CD

CD

CD

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3.7

3.8

4.0

4.1

4.1.1

4.1.2

4.1.2.1

4.1.2.2

4.2

4.3

4.4

4.5

4.5.1

4.5.2

5.0

for guidance of the tenderer. Enlisted contractors need not submit EMD.

Specified time and date of the tender opening shall be mentioned in the

tender notice.

In case the sale of the document is to be extended on reasons such as

poor response etc., the addendum to tender notice shall be published in

the same manner as the original tender notice.

RECEIPT OF TENDERS

Time for submission of tenders

Short Open Tenders

A minimum of one week or a maximum of three weeks shall be given

depending upon the involvement of bought out items and urgency of the

work.

Open tender by Press Publicity

A minimum of four weeks may be allowed from the date of publication of

tender notice in the cases where bought out items are substantial and

the contractors would require time to obtain back-up quotations.

A minimum of two weeks may be allowed from the date of publication of

tender notice in the cases where bought out items are limited.

Tender Box shall be closed and locked before 09.30 AM on the date of

tender opening, keeping open the slit through which the tender

documents are to be dropped. The slit meant for dropping the tender

documents shall be closed and locked exactly at the time of closing of

receipt of tenders. The above two keys shall be in the personal custody

of the concerned officer of the works contract section.

The bulky documents which will not go through the slit shall be received

by the dealing officer and kept in his personal custody under lock and

key after entering the time of receipt of tender and signing on the

envelope. The receipt of these documents shall be entered immediately

in the register for tender opening.

The time and date of receipt shall be entered and signed on the envelope

of the tenders received by post prior to the closing time of receipt of

tenders. The receipt of these documents shall be entered immediately in

the register for tender opening and the documents shall be dropped in

the tender box before the closing time of receipt of tenders.

Late tenders

The time of receipt shall be entered and signed on the envelope for the

late tenders i.e., the tenders received after the closing time. The receipt

of these documents shall be entered immediately in the register. These

cases shall be put up to the competent authority.

Competent authority shall decide whether to open the tenders or not,

depending on the response, technical acceptability etc. and give approval

accordingly.

OPENING OF TENDERS

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5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

5.10

The opening of tenders shall be done by a committee consisting of the

representatives from the works contracts section and Finance.

The representative of Finance shall be informed in advance about the

specific time and date of tender opening as mentioned in the tender

notice.

The tender shall normally be opened at the time and place as mentioned

in the tender notice. Any change in the same shall be done only with

prior approval of the head of the contracts section after recording the

reasons therefor in writing.

If the date of opening is postponed as the time allowed for preparation

and submission of tender is found insufficient and the sale is already

closed, the same shall be informed by displaying a notice on the notice

board of works contract section.

In case the tender opening date happens to be a holiday or the tenders

cannot be opened for certain extraneous reasons, the tenders shall be

opened on the next working day after ensuring that the intended

tenderers have been informed accordingly.

The tenders shall be opened at the specified time by the tender opening

committee members in the presence of tenderers.

Numbering of the tenders received shall be written on all the envelopes

of the tenders taken from the tender box as well as the tenders of bulky

documents received by hand. The numbering of the individual tender

shall be done indicating the total number of tenders in the denomination

and the serial number of that particular tender in the numerator (ex:1/7,

2/7 etc. in the case of seven tenders received). These envelopes shall

also be signed with date, by the officers of the tender opening

committee.

The envelopes shall be opened one by one.

The following shall be specifically mentioned on the first page of every

tender and initialed by the tender opening committee members.

i) Serial number of document, as specified above in the Para 5.7

ii) Whether EMD/exemption documents submitted or not. If

submitted, the amount of EMD, and the details of the

documents.

iii) Number of pages of covering letter including annexures. The

serial number of the tender shall be mentioned and initialed by

the tender opening committee members on the first page of

covering letter also.

iv) The rebate, if any, offered either in BOQ or in the covering letter. When there is no rebate anywhere, it shall be mentioned

as “No Rebate”.

The above details shall also be read out to the tenderers present.

All cuttings and corrections shall be attested by the tender opening

committee members. The rate/rates corrected if any, shall be rewritten

and initialed. If there are no corrections in any page of Bills of quantities,

it shall be mentioned as “No Correction.”

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FIN

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TOC

TOC

TOC

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TOC

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5.11

5.12

5.13

5.14

5.15

5.16

5.17

5.18

The total value quoted of all the tenderers, the rates of the first two

lowest tenders and the specific conditions quoted by the tenderers

including the rebates, if any, offered by the tenderers shall be read out

for the information of the tenderers, present.

All the tenders received shall be entered in the register indicating the

name of the tenderer, the EMD/exemption documents submitted and the

total value quoted. The signature and tenderers present at the tender

opening shall be obtained in this register against their names. The

officers opening the traders shall also sign in this register, stating the

number of tenders received and opened.

In case of tenders for electrical, mechanical and other works where

consultants, Design department or/and the indenting department will be

required to study/and give their comments and technical evaluation is

also necessary, copies of tenders submitted shall be forwarded

immediately (within 4 days) after the tenders are opened.

Wherever the tenders are called in two parts system (which is to be done

in such cases where the scope of all aspects is not definite or number of

variables are likely to be quoted by the parties), the technical and

commercial bids will only be opened on the prescribed tender opening

date. The price bids shall not be opened but shall be kept in the safe

custody of the dealing officer concerned. After freezing the technical and

commercial conditions with the parties based on discussions and

exchange of correspondence, revised price bids may be obtained from

the parties whose offers are technically and commercially acceptable.

The parties shall be asked to submit these bids within the prescribed

time and date and the price bids shall be opened in the same manner as

prescribed in paras 5.7 to 5.12. If time permits, the parties may be

called for opening of revised price bids.

In case of item rate tenders, the sealed envelopes containing the item

wise estimated rates shall be opened by Tender Committee after opening

of the price bids.

Close watch on the validity of the tenders and validity of the EMDs shall

be kept by the dealing officer of the tender. These shall be noted on the

inside cover page of the file concerned.

The EMD drafts/Bank Guarantees deposited by the parties shall be

released in the case of unsuccessful tenderers immediately after the

finalisation and acceptance of the work by the successful tenderer. The

EMD drafts/bank guarantees pertaining to the successful tenderer shall

be forwarded to works accounts section immediately after award of work

and acceptance by the successful tenderer.

The comparative statement shall be prepared based on the rates quoted

by the parties. In the comparative statement, conditions given by the

parties shall also be briefly indicated. While preparing the comparative

statement the following shall be noted.

“ The rates quoted in words shall override the rates in figures, if there is

any discrepancy between these two”

The comparative statement shall be initialed by the officers preparing

and verifying the comparative statement.

After the comparative statement is made the same shall be forwarded to

Finance along with the original copies of the tenders. The details of the

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6.0

6.1

6.2

6.3

6.4

6.5

6.6

documents (specifying the numbers) shall be indicated in the covering

letter.

FINALISATION OF AWARD OF WORK

After comparative statement is checked in Finance department, the

meeting of the tender committee shall be convened. The composition of

the tender committee shall be as specified in Annexure-VI.

In case of tenders of value of above Rs.50 lakhs, a brief containing the

approval, final position of the parties, the relevant conditions quoted by

the parties, the clarifications given by the parties etc., shall be circulated

in advance to the members of the tender committee. In case any of the

tenderers have issued any letter which will materially alter their

quotation including the conditions the same shall also be put upto the

tender committee. The copies of the technical evaluation as made by the

indenting department, design department, consultants etc. shall also be

put up to the tender committee.

In those cases in which the tenderers have submitted number of

counter-conditions and in which the clarifications are required from the

parties, the tender committee may call the parties, discuss with them in

order to bring their quotations in line with the standard conditions of

VSP. The tender committee may decide on the number of parties with

whom the discussions to be held initially depending on the initial

assessment of the capacities of the parties, their competitive position

etc.

While selecting the parties for discussion the tender committee shall take

into account the following :

i) Where the lowest bid is higher by 10% or more than the

updated estimated cost, negotiation to be recommended with L1

to L3 parties (If there is no proposal to divide the work between

two or more agencies) in that order, for matching price with the

estimated cost. In case there is a proposal to divide the work

between two or more agencies, more numbers of tenderers can

be recommended for negotiations accordingly. The tender

committee shall take a note of the guidelines issued regarding

the negotiations from time to time.

If the price is not matched with the estimated cost, sealed re-

bids to be invited and case finalised.

ii) Where the lowest bid is below 30% of the estimated cost and if

T.C.feels that the price is unworkable, negotiation with the L1

party shall be carried out to examine the rate-analysis and the

work ability of the price quoted. The recommendation to award

of work to L1 party shall be made only after T.C. satisfies itself

about the work ability of the rates quoted. L2 party may be

considered otherwise, for recommendation of placing order as

per rules.

All the deliberations of the tender committee shall be recorded in the

form of minutes. The final recommendation of the tender committee shall

also be in the form of minutes.

The value of recommended by the tender committee shall be generally

within +10% to -30% of the updated estimated cost. In case the value

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6.7

6.7.1

6.7.2

6.7.2.1

6.7.2.2

6.7.2.3

6.7.2.4

6.8

6.9

6.10

recommended is more than 10% or less than 30% specific reasons for

such recommendation shall be mentioned in the minutes of the tender

committee.

Freak Rates

The Tender Committee shall also discuss with the party to whom the

work is being recommended, for correcting the freak rates if any. This

shall not be construed as “negotiation”.

Case of item rate tenders

Tender Committee shall identify the freak rates on higher side i.e., with

wide variation (above 50%) of the quoted rates of L-1 tenderer with the

estimated rates. After identifying, these item rates shall be marked as

freak rates and TC shall make efforts to negotiate with L-1 tenderer to

reduce the rates to the extent possible.

For Projects works and AMR works, there need not be any ceiling on the

estimated BOQ quantities for execution, in case the rates for certain

items remain freak as compared with the estimated rates even after

negotiation with the L-1 tenderer, since these quantities are not firm and

may vary substantially with site conditions. Such freak rates will not be

considered as a basis for estimation for subsequent works. Such items

will be informed to Indenting Department by Tender Section.

For maintenance works awarded as item rate contract, the quantities

against the items having freak rate(s) on higher side (i.e., above 50% of

estimated rates) shall be restricted to 130% of the estimated BOQ

quantities. However, if execution of such items beyond 130% of the

estimated BOQ becomes a necessity (reasons to be recorded), the same

shall be carried out upto 150% of the BOQ estimated quantity with the

approval of D (O) with concurrence of Finance. Any deviation thereafter

shall require approval of CMD.

On comparing quoted rates of L-1 tenderer with estimated rates, in case

of wide variation (below 50%), such rates are considered freak on lower

side. Such rates will not be considered as a basis for estimation for

subsequent works. Such item rates will be informed to indenting

department by Works Contracts Section.

The recommendations of the tender committee shall be comprehensive

in giving complete background details, the basis of the decision, the

basis of rejections if any, details of important correspondence etc. In the

recommendation of the tender committee, the details of the value

recommended and the final conditions over and above the standard

conditions of VSP which are recommended for acceptance shall also be

brought out specifically. In case the recommendations is for award of

part work, the relative completion time for the part work if any, shall also

be mentioned.

The recommendations of the tender committee shall be processed for

approval of the competent authority. In those cases where the award of

the work is to a tenderer other than the lowest, the case shall be

processed for concurrence of Finance before submitting for approval of

the competent authority as per delegation of powers.

For approval of award of work, the delegation of powers as applicable

may be referred. The work order/LOI shall be prepared based on the

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6.11

6.12

7.0

7.1

7.2

7.3

recommendations of the tender committee duly approved by the

competent authority. The work order shall be issued for awarded value

upto 3 lakhs in the proforma given at Annexure-VII. For the works of

more than 3 lakhs of awarded value, letter of intent (LOI) shall be issued

in the Proforma given at Annexure-VIII, which shall be followed by

preparing and signing of contract agreement. The work order/LOI shall

contain all the conditions accepted by the successful tenderer over and

above those contained in the tender documents issued to the party. The

work order/LOI shall also contain a sentence that the other conditions, if

any, submitted by the contractor shall be deemed to have been

withdrawn by them. The work order/LOI shall be issued within fifteen

days from the date of issue of Telex/Telegram intent. The contractor

shall be asked to submit the following the work order/LOI.

1) Copy of the labour licence or clearance certificates from personnel

department of VSP in respect of Labour Licence.

2) Copy of the P.F.Code number of letter of exemption from

personnel department of VSP.

3) Copy of the Insurance coverage to the workers employed.

The contractor shall also be asked to give an unqualified acceptance to

the work order/LOI within 15 days from the date of issue of the same. In

case the contractor while accepting the LOI issued by VSP has made

remarks or furnished qualified acceptance to the LOI, the matter has to

be sorted out immediately, and the award of work shall be completed

only after the unqualified acceptance obtained from the contractor.

The EMDs of all the unsuccessful parties should be refunded only after

the successful party has given the unqualified acceptance and initial

Security Deposit. In the event of undue delay in submission of initial

security deposit by the successful tenderer, refund of EMD shall be done

after confirmation of starting of work at site by Engineer-in-charge.

PREPARATION OF THE AGREEMENT

A formal agreement (for all the works of more than 3 lakhs of awarded

value) to be concluded with the contractor shall be prepared after the

contractor has submitted the following :

(1) Unqualified acceptance to LOI

(2) Initial Security Deposit in the form of Bank Guarantee or

Demand Draft.

(3) Clearance from Personnel Dept. of Labour Licence.

(4) Provident Fund Code number or clearance from personnel

department for the same.

(5) Copy of Insurance coverage for the worker engaged.

The contractor shall also be required to submit non-judicial stamp paper

for value of Rs.100 purchased OR for such value as may be required

under law in the name of Contractor form the State of Andhra Pradesh

for the Agreement, the Proforma of which is given at Annexure-IX.

The contractor shall also be required to submit the power of Attorney

authorizing one of his representatives to sign the agreement on behalf of

the contractor, in case of proprietary Firm. In case of partnership, the

contractor shall submit a true copy of the partnership deed and authorize

any one of the partners to sign the agreement or a power of Attorney or

any authorisation executed by all the parties on a stamp paper in favour

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7.4

7.5

7.6

7.7

of the person (Partner or otherwise) to sign the agreement. In case of a

company, the contractor shall submit the Memorandum and Articles of

Association of the company and a power of Attorney by duly constituted

authority in favour of a person who will sign the agreement. It may be

ensured that the person signing the agreement on behalf of the

contractor is fully authorised to sign the agreement on behalf of the

contractor either a partnership firm or limited company or sole-

proprietary firm.

After receipt of the unqualified acceptance, Security Deposit and stamp

paper, the agreement shall be prepared containing the following (in the

order from bottom to top).

(1) The tender document as issued to the party containing :

a) Specification and Bill of quantities with rates and amounts as

accepted duly filled in.

b) General Conditions of Contract for Construction works. A

confirmation letter from the agency to have gone through the

GCC in detail.

c) Special Conditions of Contract for the work / job. d) Amendments / addendum, if any, issued to the tenderer.

(2) Covering letter of the tenderer.

(3) Copies of the correspondence having bearing on the finalization of

the contact.

(4) Letter of Content (LOI)

(5) Amendment, if any, to the detailed work order

(6) Unqualified acceptance for the LOI

(7) Form of agreement in the stamp paper (as per the Proforma in the

General Conditions of the Contract)

The draft agreement for works of above Rs.1 crore shall be got vetted by

Finance.

The agreement shall be signed on behalf of VSP either by Supdt.

(Contracts) or any other authorised officer.

The original agreement along with the comparative statement shall be

kept by the concerned officer in lock and key. The file containing the

approval and all the related papers upto the approval stage shall be

closed and this also shall be kept along with original agreement. These

documents are to be arranged in such a manner so that the same would

be readily available for reference/audit. Similarly the unsuccessful

tenders received against the tender shall also be marked and tied

together and kept in an arranged manner so that the same would be

available to the Audit when needed. The original agreement shall not

normally be taken out for reference.

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WCS

**********

Dept's Ref.No.&Date:File No:

Name of Work:

Dept: Section: Engineer-in-charge:Designation:

Responsibility Code Phone No.:Name of Equipment :Equipment Code : Location :PURPOSE :Repair : Modification : Labour Supply:Transport : Loading etc.: Cleaning :Others (specify) :Estimate by dept. : Basis of estimate: (for quantities & rates and Ref. to previous rate if anyCompletion time : Defect Liability / Guarantee Period …………….Period of Contract : Months from the date of completion of work.Brief on the Work / Reasons for off-loading to external agencies :

Mode of tendering Proposed : Limited Open(LTE)

If the proposal is for LTE,give justification. (tick) mark.

ENCLOSURES : (Tick Mark)

Financial Year :- FOR USE BY MMSBudget Head :- Budget details /Budget availability.Availability:

Signature of initiating officerName :Design. :Phone No.:

neatly typed in the approved format. 4. Spl.conditions of contract or / and spl.instructions to the tenderers, if any, 5. Others (Specify)

Note: The proposal and all the enclosures shall be signed by an officer not below the rank of Manager.

2. Work has to be done by specialised agencies & only limited agencies are available in the line of work

Full Name and Local Postal addresses & Telephone No. of the parties for LTE (Minimum six). (Give Full and Correct Names after verification)

1. Detailed scope of work including scope of supply of materials by VSP (Neatly typed). 2. Detailed estimate 3. Bill of Quantities

For use by Works Contracts

PROPOSAL FOR TENDERINGANNEXURE-I

1. Parties are tobe fixed in a shosrt notice and sufficient time is not available for open tender notice.

ANNEXURE-II

VISAKHAPTNAM STEEL PLANT, VISAKHAPATNAM – 530 031, INDIA

GRAMS: UBEAM, TELEX: 0495, 284, 344

WORKS CONTRACT SECTION, AGM (MECH) BLDG, MAX: 2775, 2527, 2348 P&T 88763

LIMITED/SHORT/OPEN TENDER NOTICE NO.VSP/WC/ DATED:

Sealed item rate tenders in the prescribed form are invited from

experienced Contractors for the following work

1. NAME OF WORK:

2. Earnest money deposit: Lumpsum Amount of Rs. ---------------------

3. Cost of Tender Documents: Rs. --------- by and or Rs. ------- by

post. The cost of tender documents can be paid by an account payee

Demand draft drawn in favour of RASHTRIYA ISPAT NIGAM LTD.,

VISAKHAPATNAM STEEL PROJECT ON STATE BANK OF INDIA, STEEL PROJECT

BRANCH (Code: 6318) Visakhapatnam – 530 031. No other mode of

payment or bank will be acceptable.

4. Receipt of requisitions for issue of tender documents upto 1 P.M.

on -----------

5. Last date & time of receipt and time: Upto 3 P.M on ------------

of opening of tenders and venue : in the office of Supdt.

(Works Contracts DGM (Mech)

Bldg. Visakahaptnam steel

plant, Visakhapatnam-31.And

tender opening immediately

thereafter.

6. Completion Period:

7. Period of Contract:

8. Defect Liability period:

9. Special Instructions to tenderers: i) Tenderers should have

executed a SINGLE work of similar nature and of minimum value of

Rs. ------ and turnover of atleast Rs. -----------in any one year

during the preceding five years. ii) The request for issue of

tender documents shall be accompanied by the proof of such

experience and a copy of latest income tax clearance certificate

or else tender schedules may not be issued.

10. Rashtriya Ispat Nigam ltd. Will not be responsible for any delay,

loss or nonreceipt of tenders by post.

11. Tenders will be opened in the presence of such tenderers or their

representative who choose to be present.

12. Issue of Tender documents by post is limited to outstation

agencies.

13. Before quoting for the work the tenderer shall contact ________

who is the Engineer-in-charge for the work.

14. Rashtriya Ispat Nigam ltd., reserves the right to issue/refuse

tender documents and to accept/reject any or all tenders either in

part or infull or to split and award the work to more than one

agency without assigning any reason thereof and without any

liability to RASHTRIYA ISPAT NIGAM LTD.

For Supdt. (Works Contracts)

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

Regd. Office:RASHTRIYA ISPAT NIGAL MTD., VISAKHAPATNAM STEEL

PLANT, VISAKHA-31.

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

ANNEXURE-III

I/We have gone through the general conditions of contract of VSP and

noted the contents therein I/We hereby confirm that I/We shall abide by

the terms and conditions of General conditions of the contract including

form of tender, invitation to tender, articles of Agreement etc. I/We

hereby declare that I/we have visited, inspected and examined the site

and its surroundings and satisfied overselves before submitting this

tender, information about the nature of work, facilities that may be

required and obtained necessary information about working conditions,

risk contingencies etc. which may influence this tender.

---------------------------------------SIGNATURE OF THE TENDERER

1. INSTRUCTIONS TO TENDERERS:

a) Tenders shall be submitted in the prescribed form issued by VSP. Tender documents issued are not transferable. Tender

documents issued shall be submitted wholly without detaching

any part.

b) Tenderers shall be agree to VSP’s terms and conditions

specifications/scope of work and quote their rates

accordingly.

c) Tender shall be for the entire scope of work mentioned in the tender documents.

d) Tenderers shall quote the rates for all items in the BoQ issued by VSP in figures and words and all corrections

initialed. Rates quoted in words shall govern in case of

variance between figures and words. Quoted rates shall

govern for working out amounts.

e) The rate quoted in figures and words shall be tallied before submission of the tender and all mistakes corrected.

Quotation shall be preferably type written or written in

neat and legibly handwriting.

f) If by any reason the tender opening is postponed to any

other date, the details will be displayed in the notice

board of works contracts cell. Tenderers shall see the

notice board regularly and keep themselves informed in this

matter.

g) Before quoting, the tenderers shall necessarily contact the Engineer-in-charge and fully understand the job, scope of

works, unit of measurement, mode of measurement scope of

supply of materials by VSP if any working conditions, shut

down arrangements. Labour deployment requirements risk

contingencies and such other factors which may effect their

tender.

h) General conditions of contract of VSP (printed book) are

available in the office of Supdt (Works Contracts) for

reference. The tenderers shall study and understand the same

before quoting.

i) Tenders shall be kept open for acceptance for a period of 4 months from the date of opening of tender.

2) EARNEST MONEY DEPOSIT (EMD)

a) Earnest money deposit shall be in the form Demand Draft

(drawn in favour RIN Ltd., Visakhapatnam Steel Plant, payable

at Visakhapatnam) or a bank guarantee issued by a scheduled

bank. BGs & DDs shall be valid for a period of 3 months from

the tender opening date.

b) Small scale industrial units who request for exemption from

submission of EMD shall submit a copy of their PERMANENT

REGISTRATION in a separate sealed cover stapled or attached

with their sealed tender. Only such SSI units registered for

the same. Trade/item for which the tender is relevant will be

exempted from submission of EMD.

c) Bank guarantee for EMD shall be submitted along with a

covering letter in a sealed envelope directly from the Bank.

d) EMD’s pf unsuccessful tenderers will be refunded after

reasonable time without interest.

3. MODE OF SUBMISSION OF TENDER:

a) Earnest Money Deposit/Certificate of SSI unit registration to get exemption from EMD, and the tender shall be in two separate

sealed covers super scribing the contents Name of work, name of

tenders, tender notice No. etc. These separate sealed covers

shall be stapled/tied together and submitted.

b) While opening the tender, the cover containing EMD/proof for

exemption from payment of EMD shall be opened first and if the

EMD requirements are met with, the tender will be opened.

c) Tenders not satisfying the above requirements may not be

opened.

4. SPECIAL CONDITIONS OF CONTRACT (SCC):

4.1 General: The special conditions of the contract (SCC) are

complementary to and shall be read in conjunction with General

Conditions of Contract (GCC) of VSP, Scope of work, Bill of quantities

and other documents forming part of the Tender Documents.

In case of any conflict of meaning between SCC & GCC provisions of SCC

shall override the provisions of GCC.

4.2 Visakhapatnam Steel Plant reserves the right to accept or reject

the lowest or any other tender without assigning any reason and the work

may be allotted to one of the tenderers or to more than one tender.

4.3 The contract shall be treated as having been entered into from the

date of issue of the letter of intent work order to the successful

tenderer.

4.4 WATER, POWER AND COMPRESSED AIR:

Unless otherwise specified to the contrary any where in the tender

schedule, the contractor is entitled to use in the work such supplies of

water, power and compressed air (Basing on availability) from VSP’s

sources from approved tapping points, free of cost. The contractor shall

make his own connections for drawing the same to the work spot.

4.5 Immediately on receipt of work order, the successful tenderer

shall submit the following documents to the Engineer-in-charge with a

copy to Supdt. (Works Contracts). The contractor’s bills shall not be

processed unless these documents are submitted.

a) Insurance policy covering all the workmen against injury,

permanent disability, death etc. which shall be effective from

the date of start of contract and cover for the entire period

of contract including extended period if any.

b) Labour licence obtained from State Government Authorities. c) A certificate from the regional P.F.Office Certifying

submission of Provident Fund contributions towards all the

employees engaged by the contractor.

4.6 The Contractor shall submit wage records, work

commencement/completion certificates etc. and obtain necessary clearance

from contract labour cell of VSP for final bills clearance.

4.7 The rate quoted shall remain form and shall be inclusive of all

taxes, duties, royalties, overheads and the like and no request for

escalation in the rates will be allowed under any circumstances.

4.8 ADVANCES: No advances of any sort will be given by VSP.

4.9 PAYMENT TERMS: Payment will be made monthly on recommendations of

the engineer basing on the quantities executed, at accepted rates.

4.10 MEASUREMENTS: The contractor shall take measurements jointly with

the Engineer or his representative and keep joint records for the same.

Bills shall be prepared and submitted by the Contractors basing on

agreed measurements.

4.11 INITIAL SECURITY DEPOSIT (ISD): Initial Security Deposit for the

work shall be a 2% of contract price. Earnest Money Deposit shall be

adjusted against ISD, and the difference between ISD and EMD shall be

deposited in the manner mentioned in the work order / Letter of Intent.

4.12 RETENTION MONEY: Retention Money at the rate of 7.5% of the bills

will be deducted from each bill until this amount together with the

Initial Security Deposit reach the limit of retention which is 7.5% of

the value of work. The Retention Money shall be released after the

satisfactory completion of defect liability period after liquidating the

defects.

4.13 Recovery on Income Tax at source will be made from contractor’s

bills and deposited with Income Tax department.

4.14 The Contractor shall ensure strict compliance with provisions of

the employee’s Provident Fund Act 1952 and the scheme framed there under

in so far as they applicable to their establishments and agencies

engaged by them. The contractor is also required to indemnify the

employer against any loss or claim or penalties or damages whatsoever

resulting out of non-compliance on the part of the contractor with the

provisions of aforesaid act and the schemes framed thereunder. A copy of

the provident fund membership certificate/P.F.code number shall be

submitted by the contractor.

4.15 The contractor shall follow the provisions of Indian Factories Act

and all rules made thereunder from time to time as applicable, and shall

indemnify the Employer against all claims of compensations under the

provisions of the act in respect of workmen employed by the contractor

in carrying out the work against all costs and expenses and penalties

that may be incurred by the Employer in connection therewith.

4.16 SAFETY:

a) The Contractor and his workers must strictly take all the safety precautions and shall supply to his workers dependable efficient

safety appliances. He shall also ensure that his workmen

intelligently use only the dependable safety appliances supplied

to them.

b) All safety appliances must be checked for their dependability by the contractor before use. For this purpose, the contractor should

provide safety appliances for use by his workmen as per

requirement like Hand gloves, Safety boots, Safety helmet, Duster

cloth, Dust mask/Nostril filter etc. In addition to this, basing

on requirement, the contractor shall also provide additional type

of safety appliances for safe working. The quoted rate shall be

inclusive of all these.

c) Only full insulated electrode holders shall be used by the welders deployed for the work. The contractor shall obtain necessary

clearances from the engineer everyday every time before starting

the work.

4.17 SHUT DOWNS:

Necessary shutdowns will be arranged by VSP to be contractor for

carrying out the work basing on requirement. No claims on account of

delayed/prolonged shutdown will be entertained.

4.18 The works assigned to the contractor by the engineer from time to

time shall be completed within the time schedule fixed by the engineer-

in-charge in each case or within the approved shutdown period.

4.19 Only experienced and skilled/trained workers acceptable to the

engineer shall be engaged on this work. Work shall be executed as per

specifications to the satisfaction of the engineer.

4.20 LABOUR DEPLOYMENT:The contractors shall deploy his labour as per

requirement and as instructed by the engineer. It may be necessary to

carryout the work round the clock basing on requirement and shutdowns

arranged. The contactor’s rate shall cover such eventualities.

4.21 SECURITY REGULATIONS:

The contractor shall abide all security regulations, promulgated

from time to time by the employer.

4.22 STORING STACKING OF MATERIALS: Storing / stacking / placing of

materials shall be only at the places designated by the engineer.

4.23 After completion of work activity, the site has to be cleared of

all debris, construction materials and the like.

4.24 The successful tenderer shall start the work immediately after

receiving intimating from VSP to start the work.

4.25 SCOPE OF WORK :---------------- Enclosed /As per BOQ ------------.

4.26 PAYMENT OF MINIMUM WAGES

Wages paid to the workmen by the contractor should not be less than the

rates notified by the Commissioner of Labour, Andhra Pradesh, Hyderabad

published in the Andhra Pradesh Gazette from time to time with regard to

the minimum wages applicable to the respective category of workmen.

Wages to the workmen should be paid on or before the 7th of the

subsequent month. If 7th falls on a holiday or weekly off day, the

payment should be made one day prior to that. Payment of PF for the

month, both the employer’s (in this case contractor) and employee’s (in

this case workmen employed by the contractor) contributions should be

deposited in the bank in the permanent PF code numbers and challan

obtained before the 15th of the subsequent month and forwarded to the

“Engineer”.

In case of failure of the contractor to comply with any of the above,

the following action will be taken by VSP.

LAPSE ACTION BY VSP

1

Payment of wages at rates

less than those notified

under the minimum wages

notification.

An amount equivalent to the

differential amount between

wages to be paid under Minimum

Wages notification of the Govt.

applicable for the period less

actual wages paid shall be

recovered from the bills as

certified by the Engineer.

2. Non payment of wages An amount equivalent to wages

payable by the contractor

applicable for the relevant

period shall be recovered from

the bills as certified by

Engineer.

3 Non payment of PF Recovery of PF amount and an

amount equivalent to maximum

penalty leviable by Regional

Provident Fund Commissioner for

the delayed period under the

provisions of EPF & MP Act and

Rules for delayed remittance of

PF contributions (both the

employee’s and employer’s

contributions), shall be

recovered from the bills of

contractor as certified by

Engineer.

4 Delayed payment of PF An amount equivalent to maximum

penalty leviable by Regional

Provident Fund Commissioner for

the delayed period under the

provisions of EPF & MP Act and

Rules for delayed remittance of

PF contributions (both the

employee’s and employer’s

contributions), shall be

recovered from the bills of the

contractor as certified by

Engineer.

Annexure to VSP/WC/Name of Work

1

2

SIGNATURE OF CONTRACTOR

DESCRIPTIONS.NO.RATE

Rs.AMOUNT

Rs.QUANTITYUNIT

Wherever old items are replaced for fixing new items, all related connections are to be made good for proper functioning of new items, dismantled/old items are to be handed over to the stores.

ANNEXURE-IVBILL OF QUANTITIES (BOQ)

The quantities indicated are approximate and may vary to a wide range. Payment shall be made as per the actual work carried out at corresponding accepted rate.

S.No. Value of the Tender1) Locals English - 1 Paper Upto Rs.20 lakhs (for all works)

Vernacular - 2 Papers

2) South Zone English - 2 Papers Upto Rs.50 lakhs (for civil works only)Vernacular - 2 Papers Upto Rs.30 lakhs (for other works)

3) South Zone English - 2 Papers Upto Rs.50 lakhs for works other than civil)Vernacular - 2 Papers

East Zone English - 2 Papers

4) South Zone English - 2 PapersVernacular - 1 Paper Upto Rs.100 lakhs

East Zone English - 2 Papers

West Zone English Times of India, Bombay

North Zone Hindustan Times, DelhiOne Hindi Daily

5) South Zone English - 2 Papers

East Zone English - 2 Papers

West Zone Times of India, Bombay Above Rs.100 lakhsEconomics Times, -do-

North Zone Hindustan Times, DelhiTimes of India, DelhiOne Hindi - Daily

ANNEXURE-VDetails of Newspapers

Limited Tenders

Open Tenders

GM(W)/Addl.GM(Maint.) DGM(Mech)

CFM/ACFM ACFM/Dy.CFM Dy.CFM/Manager(Fin) Dy,Mgr/Asst.Mgr(Fin)

ANNEXURE-VI

Sub: Composition of tender committee for work of repair, maintenance, loading unloading, transportation and other related jobs handled by Works Department.

Rs.100 lakhs to Rs.250 lakhs

Above Rs.250 Lakhs Rs.25 lakhs to Rs.100 lakhs

Above Rs.100 Lakhs Rs.50 lakhs to Rs.100 lakhs

Rs.15 lakhs to Rs.50 lakhs

Upto Rs.15 lakhs

Director (Operation) GM(W)/ Addl.GM(W) AGM/CS of Dept.concerned

Upto Rs.25 lakhs

Supdt./Manager of department concerned.

Head of concerned department

Head of concerned department

Supdt./Mgr.(Works Contracts)

Dy,Mgr/Asst.Mgr(Works Contracts)

ANNEXURE-VII

VISAKHAPATNAM STEEL PLANT (A GOVT.OF INDIA ENTERPRISE)

VISAKHAPATNAM-530 031 INDIA

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

WORKS CONTRACTS SECTION, AGM (MECH) BLDG., PHONE: 2775, 2327, P&T: 88763

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

Ref.No.VSP/WC/ /93-94/ Dated:

To: BY REGD.POST

Sirs,

Sub: Work Order

Name of Work:

1. Ref: -------------------------------------------------------------

We are pleased to inform that you are awarded the above subject

work at a cost of Rs----------------------------- (Rupees --------

---------------------------) as per the bill of quantities with

the rates enclosed.

2. Terms and Conditions: The contract shall be governed by the

Special Conditions of Contract and the General Conditions of

Contact of VSP.

3. Initial Security Deposit (ISD): The Initial Security Deposit for

the work shall be Rs. --------------- (Rupees --------------------

------------) which is 2% of the value of work. The difference

between Initial Security Deposit and your EMD of Rs. -------------

--------------- (Rupees ----------------------------------) shall

be deducted from your first bill.

4. Retention Money: Retention money at the rate of 7.5% of the bills

will be deducted from each bill until this amount together with

your Initial Security Deposit reach the limit of retention which

is 7.5% of the value of work.

5. Retention money thus deducted shall be released on the

recommendation of the Engineer after satisfactory completion of

the defect liability period of ------------------ months from the

date of completion of the work.

6. All defective works observed during the defect liability period

shall be rectified by you at your cost immediately.

7. a) Completion Period:

The works assigned to the contractor by the Engineer from time to

time shall be completed within the time schedule fixed by the

Engineer in each case or within the approved shutdown period.

b) Period of Contract:

8. You shall contact --------------------------- (who will be the

engineer under the contract and competent authority to pass your

Bills) for further instructions / to start the work immediately.

He shall also be engineer under the contract vide clause no.1.1.3

of G.C.C. for construction works.

PARTY CODE: JOB CODE:

9. Only experienced workers acceptable to the Engineer shall be

engaged on this work. Work shall be executed as per specifications

to the satisfaction of the Engineer.

10. Immediately on receipt of this letter, you shall submit copies of

the following documents to the Engineer with a copy to

Superintendent (Works Contracts). The contractor’s bills shall not

be processed unless these documents are submitted.

a) Insurance policy covering all the workmen against injury,

permanent disability, death etc., which shall be effective from

the date of start of contract and cover for the entire period of

contract including extended period if any.

b) Labour licence obtained from state government authorities. c) A certificate from the regional P.F. office certifying submission

of Provident Fund Contributions awards all the employees engaged.

11. The rates shall remain firm and no escalation in the rates will

be allowed under any circumstances.

12. You shall adhere to all safety rules and regulations and to the

provisions of Indian Factories Act and shall supply dependable

safety appliances to your workmen. Only fully insulated electrode

holders shall be used by the welders deployed for the work. You

shall obtain necessary clearances from the Engineer concerned

every day before you start the work.

13. Acceptance: You are required to give your unqualified acceptance

to this work order in the Proforma appended to this letter. This

work order with the enclosures and letters/tender under reference

together with your acceptance shall form a binding contract

between you and VSP for the subject work.

This is issued with the approval of competent authority.

Yours faithfully

For VISAKHAPATNAM STEEL PLANT,

Supdt. (Works Contracts)

Encl: 1) Bill of Quantities & Scope of Work

2)

Copy to:

ACCEPTANCE OF WORK ORDER

I/We hereby give our unqualified acceptance to this work order and agree

to carry out the subject work as per the terms and conditions and

specifications of VSP at the rates mentioned in the bill of quantities.

Signature of Contractor

Name:

(SEAL)

ANNEXURE-VIII

VISAKHAPATNAM STEEL PLANT (A GOVT.OF INDIA ENTERPRISE)

VISAKHAPATNAM-530 031 INDIA

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

SUPDT. (WORKS CONTRACTS SECTION), AGM (MECH) BLDG., PH: MAX: 2775, 2327,

P&T: 763

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

Ref.No.VSP/WC/ /92-93/ Dated:

To: BY REGD.POST

Sirs,

Sub: Letter of Intent (LOI)

Name of Work:

1. Ref: -------------------------------------------------------------

We are pleased to inform that you are awarded the above subject

work at a cost of Rs------------- (Rupees ------------------------

-----------) as per the bill of quantities with the rates

enclosed.

2. Terms and Conditions: The contract shall be governed by the

Special Conditions of Contract and the General Conditions of

Contact of VSP.

3. Initial Security Deposit (ISD): The Initial Security Deposit for

the work shall be Rs. --------------- (Rupees --------------------

------------) which is 2% of the value of work. The difference

between Initial Security Deposit and your EMD of Rs. -------------

--------------- (Rupees ----------------------------------) shall

be deposited within 10 days from the date of issue of this letter

in the form of demand draft or bank guarantee.

4. Retention Money: Retention money at the rate of 7.5% of the bills

will be deducted from each bill until this amount together with

your Initial Security Deposit reach the limit of retention which

is 7.5% of the value of work.

5. Retention money thus deducted shall be released on the

recommendation of the Engineer after satisfactory completion of

the defect liability period of ------------------ months from the

date of completion of the work.

6. Any defective works observed during the defect liability period

shall be rectified by you at your cost immediately.

7. a) Completion Period:

The works assigned to the contractor by the Engineer from time to

time shall be completed within the time schedule fixed by the

Engineer in each case or within the approved shutdown period.

b) Period of Contract:

8. You shall contact --------------------------- (who will be the

engineer under the contract and competent authority to pass your

Bills) for further instructions / to start the work immediately.

PARTY CODE: JOB CODE:

9. Only experienced and skilled workers acceptable to the Engineer

shall be engaged on this work. Work shall be executed as per

specifications to the satisfaction of the Engineer.

10. Immediately on receipt of this letter, you shall submit copies of

the following documents to the Engineer with a copy to

Superintendent (Works Contracts). The contractor’s bills shall not

be processed unless these documents are submitted.

a) Insurance policy covering all the workmen against injury,

permanent disability, death etc., which shall be effective from

the date of start of contract and cover for the entire period of

contract including extended period if any.

b) Labour licence obtained from state government authorities. c) A certificate from the regional P.F. office certifying submission

of Provident Fund Contributions towards all the employees engaged.

11. The rates shall remain firm and no escalation in the rates will

be allowed under any circumstances.

12. You shall adhere to all safety rules and regulations and to the

provisions of Indian Factories Act and shall supply dependable

safety appliances to your workmen. Only fully insulated electrode

holders shall be used by the welders deployed for the work. You

shall obtain necessary clearances from the Engineer concerned

every day before you start the work.

13. Acceptance: You are required to give your unqualified acceptance

to this letter of intent in the proforma appended to this letter.

This letter of intent with the enclosures and letters/tender under

reference together with your acceptance shall form a binding

contract between you and VSP for the subject work till a formal

agreement is executed.

14. Formal agreement: After depositing the Initial Security Deposit,

you are required to execute a formal agreement with VSP in the

prescribed Proforma on a non-judicial stamp paper. The typed

Proforma on non-judicial stamp paper along with Labour Clearance

Certificate from Contract Labour Cell of VSP, should be submitted

to this office for preparation of contract agreement. Non-judicial

stamp paper shall be of value Rs.100/-.

This is issued with the approval of competent authority.

Yours faithfully

For VISAKHAPATNAM STEEL PLANT,

Supdt. (Works Contracts)

Encl: 1) BOQ 2) Scope of Work

3) Prescribed Proforma for Agt.

ACCEPTANCE TO LOI

I/We hereby give our unqualified acceptance to this Letter Of Intent and

agree to carry out the subject work as per terms and conditions and

specifications of VSP at the rates mentioned in the BOQ.

Signature of Contractor

Name:

(SEAL)

ANNEXURE-IX

(Proforma for Agreement)

NON JUDICIAL STAMP PAPER

FOR Rs.100/-

AGREEMENT NO.VSP/WC/AGT –

DATE:

ARTICLES OF AGREEMENT

ARTICLES OF AGREEMENT made at Visakhapatnam this __________________ day of

_____________ 1991 between RASHTRIYA ISPAT NIGAM LIMITED, Visakhapatnam Steel

Plant, Visakhapatnam having its Registered Office at Project Office Complex, Visakhapatnam-530

031 (hereinafter referred to as the Employer which expression shall include its successors and

assigns) of the part and ____________________________________________________________

____________________________________ (hereinafter referred to as Contractor which

expression shall include its successors and assigns) of the other part.

Where the Employer is desirous that certain works should be executed viz., ____________

______________________________________________________________________________

___________________________________________________________ and has accepted a

Tender by the Contractor for the execution, completion and maintenance of such works.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this agreement words and expressions shall have the same meaning as are respectively

assigned to them in the general conditions of contract hereinafter referred to.

2. The following documents shall be deemed to form and be read and constructed as part of

this agreement Viz.,

i) LOI/NO.VSP/WC/ Dated :

ii) Your letter No.------------------ Dated :

iii) General Conditions of Contract

iv) Special Conditions of Contract

v) Bill of Quantities.

3. In consideration of the payments to be made by the employer to the contractor as

hereinafter mentioned the contractor hereby covenants with the employer to execute,

complete and maintain the works in conformity in all respects with the provisions of the

contract.

4. The employer hereby covenants to pay to the contractor in considerations of the execution,

completion and maintenance of the works the contact price at the times and in the manner

described by the contract.

5. No amendment to this agreement shall be valid or be of any affect unless the same is

agreed to in writing by both the parties here to and specially stated to be an amendment to

this agreement.

6. All disputes arising out of or in any way connected with this agreement shall be deemed

to have arisen in Andhra Pradesh and only the courts in Andhra Pradesh shall have

jurisdiction to determine the same.

7. The several parts of this contract have been read to us and fully understood by us.

AS WITNESS our hands this _______________ day of __________________ 1992.

Signed by the same in the presence of

_______________________ _____________________

Signed by the said in the presence

________________________ _____________________

NAME OF WORK:

AGENCY :

DECLARATION

1. I/We declare that I/We am/are aware of my/our contractual obligations and the precautions

are to be taken to ensure the safety of all the workmen and to be deployed by me/us for

this work.

2. I/We hereby declare that I/We have visited, inspected and examined the site and its

surrounding and satisfied myself before submitting my tender about the nature of work,

facilities that may be required and obtained necessary information about working

conditions, risk contingencies etc., which may influence this work.

3. I/We undertake to strictly observe and comply with all the safety precautions and I/We

shall apply to our workers new dependable and efficient safety appliances only. I/We shall

ensure that our workers intelligently use only the dependable safety appliances supplied to

them.

4. I/We shall provide the following safety appliance for use by our workmen as per

requirement:

i) Hand gloves

ii) Safety boots

iii) Safety helmets

iv) Duster cloth

v) Safety belts.

5. In addition to this, if the work required, I/We shall provide additional type of safety

appliances for safe working.

SIGNATURE OF THE CONTRACTOR.

DECLARATION

I/We have gone through the General Conditions of Contract and noted the contents therein. I/We

hereby confirm that I will abide by the terms and conditions of the General Conditions of Contract

including Form X of Tender, Invitation to Tender and Articles of agreement for construction

works. I/We hereby declare that I/We have visited, inspected and examined the site and its

surroundings and satisfied myself before submitting this tender about the nature of work, facilities

that may be required and obtained necessary information about working conditions, risk

contingencies etc., which may influence this tender.

SIGNATURE OF THE CONTRACTOR

5 To enter into contract 1. Subject to budget provision

without calling for tenders 2. Reasonability of rates to be

in emergent cases with certified

reasons to be recorded. 3. With CFA Rs.10 lakhs Rs.5 lakhs Rs.3 lakhs Rs.2 lakhs Rs.50,000 No Power

in each case in each case in each case in each case in each case

4. Without CFA Rs.3 lakhs Rs.2 lakhs Rs.1 lakh Rs.50,000 No Power No Power

in each case in each case in each case in each case

E-7 E-6 E-5FNL.

DIRECTORBELOW E-5

Extant of Powers

ANNEXURE

EXTRACTS FROM APROVED DELEGATION OF POWERS

(VIDE NO.CA-XVI/2/93 DT.31st July 1993)

DELEGATION OF POWERS - WORKS DEPTT.

REMARKSNATURE OF POWERSS.NO.E-9/E-8

CONTRACT PROCEDURE FOR WORKS DIVISION

(PO/ 03/02 dt.21/8/1993 )

AMENDMENT NO.1 Dt:11/4/1996

EXISTING CLAUSE AMENDED

Cl.

No.

Clause

Cl. No. Clause

3.3.3

Under emergent conditions

where the work is to be started

immediately. Rates to be fixed

on earlier working rates if

available or by inviting spot

quotations from minimum 3

empanelled parties available at

site. Care to be taken not to

repeat award of such work to

same party.

AGENCY : WCS

3.3.3

3.3.3.1

3.3.3.2

3.3.3.3

3.3.3.3.1

Under emergency conditions,

where in a job has to be started

immediately, there may not be

time to go through the normal

tendering and negotiating

procedure. In such a situation,

follow the procedure given

below.

AGENCY : CD

Contact the enlisted parties for

similar job by telephone or

contact their representatives

available on the shop-floor and

ask them to come up with

quotations immediately.

AGENCY : CD

If more than one party comes

up with quotations, select the

lowest bidder with due approval

of the competent authority (as

per the approved delegation of

powers shown at the Annexure).

Ask him to immediately start

the job and issue him with letter

order by department followed

by formal WO in 2 (two) days

time.

AGENCY : CD

If only one enlisted party is

available for the job, give the

job to him on nomination basis

with due permission from the

GM of the concerned zone.

AGENCY : CD

The rates should be fixed based

on the existing and/or approved

rates/or rate analysis from first

principle and the cost of the job

3.3.3.4

3.3.3.4.1

3.3.3.4.2

should be certified by the

concerned HOD.

AGENCY : CD

If no suitable enlisted party

comes up for the particular job,

record the same, and follow the

procedure mentioned above for

non-enlisted parties.

AGENCY : CD

In these cases, at least verbal

approval should be obtained

from the Concerned GM of the

zone before beginning of the job

and written approval should be

obtained from him on the next

working day.

AGENCY : CD

In all these cases the rates

should be fixed based on the

existing and/or approved

rates/or rate analysis from first

principle and the cost of the job

should be certified by the

concerned HOD.

AGENCY : CD

--------- xx ---------

CONTRACT PROCEDURE FOR WORKS DIVISION

PO/03/02 dt.21.08.1993

Amendment No.2; dt.13.04.2000

4.26 PAYMENT OF MINIMUM WAGES

Wages paid to the workmen by the contractor should not be less than the rates notified

by the Commissioner of Labour, Andhra Pradesh, Hyderabad published in the Andhra

Pradesh Gazette from time to time with regard to the minimum wages applicable to the

respective category of workmen. Wages to the workmen should be paid on or before

the 7th of the subsequent month. If 7th falls on a holiday or weekly off day, the payment

should be made one day prior to that. Payment of PF for the month, both the

employer’s (in this case contractor) and employee’s (in this case workmen employed by

the contractor) contributions should be deposited in the bank in the permanent PF code

numbers and challan obtained before the 15th of the subsequent month and forwarded

to the “Engineer”.

In case of failure of the contractor to comply with any of the above, the following action

will be taken by VSP.

LAPSE ACTION BY VSP

1

Payment of wages at rates less

than those notified under the

minimum wages notification.

An amount equivalent to the differential

amount between wages to be paid under

Minimum Wages notification of the Govt.

applicable for the period less actual wages

paid shall be recovered from the bills as

certified by the Engineer.

2. Non payment of wages An amount equivalent to wages payable

by the contractor applicable for the

relevant period shall be recovered from

the bills as certified by Engineer.

3 Non payment of PF Recovery of PF amount and an amount

equivalent to maximum penalty leviable

by Regional Provident Fund Commissioner

for the delayed period under the

provisions of EPF & MP Act and Rules for

delayed remittance of PF contributions

(both the employee’s and employer’s

contributions), shall be recovered from

the bills of contractor as certified by

Engineer.

4 Delayed payment of PF An amount equivalent to maximum

penalty leviable by Regional Provident

Fund Commissioner for the delayed period

under the provisions of EPF & MP Act and

Rules for delayed remittance of PF

contributions (both the employee’s and

employer’s contributions), shall be

recovered from the bills of the contractor

as certified by Engineer.

CONTRACT PROCEDURE FOR WORKS DIVISION (PO/03/02 dt.21.08.1993)

(AMENDMENT NO.3; Dt:26.10.2002)

EXISTING AMENDED Sl.

No. Cl. No. Clause

Cl. No. Clause

1

2

3.2.1

3.2.1.1

3.2.2

3.2.2.1

Short Open Tender

In respect of work of estimated

value upto Rs.10 lakhs, short

open tenders shall be invited

giving wide publicity among the

Contractors by displaying on the

notice boards of the Works

Contract Section, the works

departments and other places.

AGENCY : WCS

Open Tender with Press Publicity

Tender notices shall be published

for all works of value more than

Rs.10 lakhs in the news papers

as given at Annexure-V.

AGENCY : WCS

3.2.1

3.2.1.1

3.2.2

3.2.2.1

Short Open Tender

In respect of work of estimated

value upto Rs.16 lakhs, short

open tenders shall be invited

giving wide publicity among the

Contractors by displaying on the

notice boards of the Works

Contract Section, the works

departments and other places.

AGENCY : WCS

Open Tender with Press Publicity

Tender notices shall be published

for all works of value more than

Rs.16 lakhs in the news papers as

given at Annexure-V.

AGENCY : WCS

--------- xx ---------

Contracts Procedure for Works Division

(PO/03/02 dated 21.8.1993)

Amendment No.4 dated 05.1.2004

(w.r.t. item rate tenders)

EXISTING AMENDED

Cl.

No.

Step/Activity

Sl.

No. .

Step/Activity

Nil

5.14

Nil

L

Wherever the tenders are called

in two parts system (which is to

be done in such cases where the

scope of all aspects is not

definite or number of variables

are likely to be quoted by the

parties), the technical and

commercial bids will only be

opened on the prescribed tender

opening date. The price bids

shall not be opened but shall be

kept in the safe custody of the

dealing officer concerned. After

freezing the technical and

commercial conditions with the

parties based on discussions and

exchange of correspondence,

revised price bids may be

obtained from the parties whose

offers are technically and

commercially acceptable. The

parties shall be asked to submit

these bids within the prescribed

time and date and the price bids

shall be opened in the same

manner as prescribed in paras

5.7 to 5.12. If time permits, the

parties may be called for opening

of revised price bids.

AGENCY : TC

1.3

5.14

In case of item rate tenders,

indenting department shall

furnish item-wise estimated rates

in line with BOQ in a sealed cover

and forward the same along with

specification and total estimated

value of work to the contract

awarding dept.

AGENCY : CD

Wherever the tenders are called

in two parts system (which is to

be done in such cases where the

scope of all aspects is not definite

or number of variables are likely

to be quoted by the parties), the

technical and commercial bids will

only be opened on the prescribed

tender opening date. The price

bids shall not be opened but shall

be kept in the safe custody of the

dealing officer concerned. After

freezing the technical and

commercial conditions with the

parties based on discussions and

exchange of correspondence,

revised price bids may be

obtained from the parties whose

offers are technically and

commercially acceptable. The

parties shall be asked to submit

these bids within the prescribed

time and date and the price bids

shall be opened in the same

manner as prescribed in paras 5.7

to 5.12. If time permits, the

parties may be called for opening

of revised price bids.

In case of item rate tenders, the

sealed envelopes containing the

item wise estimated rates shall be

opened by Tender Committee

after opening of the price bids.

AGENCY : TC

6.7 The tender committee shall also

discuss with the party to whom

the work is being recommended,

for correcting the freak rates if

any. This shall not be construed

as “negotiation”.

AGENCY : TC

6.7

6.7.1

6.7.2

6.7.2.1

6.7.2.2

6.7.2.3

Freak Rates

The Tender Committee shall also

discuss with the party to whom

the work is being recommended,

for correcting the freak rates if

any. This shall not be construed

as “negotiation”.

AGENCY : TC

Case of item rate tenders

Tender Committee shall identify

the freak rates on higher side i.e.,

with wide variation (above 50%)

of the quoted rates of L-1

tenderer with the estimated rates.

After identifying, these item rates

shall be marked as freak rates

and TC shall make efforts to

negotiate with L-1 tenderer to

reduce the rates to the extent

possible.

AGENCY : TC

For Projects works and AMR

works, there need not be any

ceiling on the estimated BOQ

quantities for execution, in case

the rates for certain items remain

freak as compared with the

estimated rates even after

negotiation with the L-1 tenderer,

since these quantities are not firm

and may vary substantially with

site conditions. Such freak rates

will not be considered as a basis

for estimation for subsequent

works. Such items will be

informed to Indenting

Department by Tender Section.

AGENCY : WCS

For maintenance works awarded

as item rate contract, the

quantities against the items

having freak rate(s) on higher

side (i.e., above 50% of

estimated rates) shall be

restricted to 130% of the

estimated BOQ quantities.

However, if execution of such

items beyond 130% of the

estimated BOQ becomes a

6.7.2.4

necessity (reasons to be

recorded), the same shall be

carried out upto 150% of the BOQ

estimated quantity with the

approval of D(O) with

concurrence of Finance. Any

deviation thereafter shall require

approval of CMD.

AGENCY : WCS

On comparing quoted rates of L-1

tenderer with estimated rates, in

case of wide variation (below

50%), such rates are considered

freak on lower side. Such rates

will not be considered as a basis

for estimation for subsequent

works. Such item rates will be

informed to indenting department

by Works Contracts Section.

AGENCY : TC, WCS

--------- xx ---------

1

CONTRACT PROCEDURE FOR WORKS DIVISION

(PO/03/02 dt. 21/08/93)

(Amendment No.5, dt:06/01/06) (wrt enhancing value of tenders to be processed on SOT basis)

EXISTING AMENDED Sl

No Cl. No. Clause Cl. No. Clause

1 3.2.1

3.2.1.1

Short Open tender

In respect of work of estimated

value upto Rs.16 lakhs, short

open tenders shall be invited

giving wide publicity among the

contractors by displaying on the

notice boards of the Works

Contracts section, the works

departments and other places.

Agency : Works Contract Section

3.2.1

3.2.1.1

Short Open tender

In respect of work of estimated

value upto Rs.25 lakhs, short

open tenders shall be invited

giving wide publicity among the

contractors by displaying on the

notice boards of the Works

Contracts section, the works

departments and other places.

Agency : Works Contract Section

2

3.2.2

3.2.2.1

Open tender with press publicity

Tender notices shall be published

for all works of value more than

Rs. 16 lakhs in the newspapers

as given at Annexure-V.

Agency : Works Contract Section

3.2.2

3.2.2.1

Open tender with press publicity

Tender notices shall be published

for all works of value more than

Rs. 25 lakhs in the newspapers as

given at Annexure-V.

Agency : Works Contract Section

VISAKHAPATNAM STEEL PLANT

MANAGEMENT SERVICES DEPARTMENT

Ref.No.MS/PRO/07/ Dt:06/08/07

Sub : CONTRACT PROCEDURE FOR WORKS DIVISION (PO/03/02, dt. 21/08/93)

AMENDMENT -6

Henceforth for SOT cases against eligibility criteria only the required Registration

Category and Class shall be indicated in the NIT and the tenderers are required to

submit copy of the registration letter to this effect to qualify themselves for the

tender. In case there are any other eligibility criteria specific to a particular tender

the same shall also be mentioned in the NIT.

This is issued with the approval of competent authority.

Sd/

(K JAGADISH)

DCM (MS)

CONTRACT PROCEDURE FOR WORKS DIVISION

(PO/03/02 dt. 21/08/1993)

AMENDMENT NO.7 Dt: 25/07/2008

(wrt Return of EMD/ Bids to the Tenderers)

1.0 Return of EMD/ Un-opened bids to non-qualified/ rejected bidders: 1.1 Intimation with reasons about ineligibility/ rejection to be communicated by

E-mail/ FAX/ Post/ By hand to respective bidders within seven (07) working days, from the date of approval of Competent Authority to proceed further with the tenders.

1.2 EMD and un-opened bids to be dispatched by Registered Post within fifteen

(15) working days from the date of approval of Competent Authority to open the second cover (Technical and/ or Commercial bids or Price bids, as the case may be), in all cases, where the bidder was found to have not qualified in the evaluation against PQC.

1.3 EMD & un-opened price bid to be dispatched by Registered Post within

fifteen (15) working days (preferably before opening of the price bids of qualified agencies) from the date of approval from the Competent Authority to open the price bids, in all cases where the bidder was found to have technically and/ or commercially not qualified in the second cover evaluation i.e. techno-commercial bid evaluation.

1.4 Wherever Integrity Pact has been made a part of the NIT/ Tender

document, it needs to be ensured by respective contracts section before release of EMD amount that the party has complied with the requirements of Integrity Pact.

1.5 Prospective bidders should furnish their Bank account number and details of

Bank to enable RINL to refund EMD/ SD, etc., of un-opened/ rejected bids to non-qualified/ rejected bidders electronically.

2.0 For bids received in case of postponement of Tender Opening Date (TOD) Insert the following clause in all NITs. “Tenders submitted against the NIT/ Tender shall not be returned in case

the tender opening date is extended/ postponed. Tenderers desirous to modify their offer/ terms may submit their revised/ supplementary offer(s) within the extended TOD, by clearly stating the extent of updation done to their original offer and the order of prevalence of revised offer vis-à-vis original offer. The employer reserves the right to open the original offer along with revised offer(s)”.

3.0 Retention of un-opened price bids with dealing officers: To retain all un-opened price bids in the custody of a separate section of the

respective division, entrusted to retain the bids confidentially and in tamper proof/ leak proof environment.

**********