Manual On Contracts 2007 Reprint 2012 Inc Chapter On E Tendering

MILITARY ENGINEER SERVICES
IANUAL ON CONTRACTS, 2007

Reprint 2012
Incorporating Amendments Upto and Including 85.

3-25
1.1 General 3
1.2 Categories of Works for Registration 3
1.3 Classification of Contractors 4
1.4 Criteria for Fresh Enlistment/Upgradation 5
1.5 Documents required to be submitted by the Contractor for enlistment in MES 10
1.6 Income Tax Clearance Certificate 12
1. 7 Verification of Character and Antecedents of Contractors and their Agents 12
1.8 Procedure for Enlistment of Contractors 14
1.9 Enlistment in Adjoining Command 16
1.10 Facility for Working for other Services at same Station 16
1.11 Transfer of Enlistment on Reorganisation of MES Formations 16
1.12 Provisional Enlistment of Contractors 17
1.13 Upgrading of Contractors 17
1.14 Renewal of Enlistment 18
1.15 Standing Security Bond 19
1.16 Suspension, Down-grading, Removal, etc., of Contractors 20
1.17 Refund of Standing Security 22
1.18 Procedure for Refund of Standing Security Deposit 23
1.19 Related Firms 24
1.20 Re-enlistment of Proprietorship Firm with Revised Constitution in Favour of Legal
heirs of Contractors in Case of Death of the Proprietor 24
1.21 Change in Constitution of Enlisted Contractors 25
1.22 Parent Command 25
Section. 2 : Earnest Money . and Security Deposit, Bank Guarantee 1loll.d for
securityDeposit . 26,-33
2.1 Earnest Money and Individual Security 26
2.2 Earnest Money Deposit and its Refund 28
2.3 Recovery of Individual Security Deposit/ Additional Security Deposit 29
2.4 Security Deposit for Term Contracts 29
2.5 Periodical Review of Market Value of Securities 29
2.6 GP Notes Accepted as Security-Examination of Endorsements 29
2. 7 Treasury Savings Deposit Certificates Transferred by Way of Pledge of Secu-
rity-Acceptance by Government Departments 29
2.8 Pledging/Releasing of Postal Savings Certificates and Post Office Savings Bank
Accounts 30
2. 9 National Plan Savings Certificates and Treasury Savings Deposit Certificate-Dif-
ficulties involved in Acceptance of Pledges where Nominations have been Regis-
)
tered Against the Certificates 30
2.10 Appropriation of Security Deposits for other Contracts 30
(v)
J
2.11 Procedure for Refund of Securities for Individual Contracts
2.12 Refund of Security Deposit when Contractor's Claim Against Government is
Sub-Judice 31
2.13 Provisions in MES Regulations (1968) etc. 31
2.14 Release of Additional Security Deposit in two Stages 31 .
2.15 Acceptance of Bank Guarantee Bond in lieu of Security Deposit 32
2.16 Procedure for acceptance of Bank Guarantee Bonds in lieu of Security De-
posit/Retention Money. 33
3.1 General 34
3.2 Blank 34
3.3 Notices Inviting Applications for Issue of Tenders 34
3.4 Issue of Tender Documents on Payment 35
3.5 Selection of Contractors 37
3.6 Rejection of Applications for Issue of Tenders 41
3.7 Issue of Tender to Central Public Sector Enterprises (CPSEs) 41
3.8 Removal of Difficulties and Build up of Competition 42
3.9 Period of Submission of Tenders 42
3.10 Receipt and Opening of Tenders 43
3.11 Scrutiny of Tenders and Market Analysis 43
3.12 Tenders Submitted by Contractors not accompanied by Earnest Money 44
3.13 Late Tenders 44
3.14 Acceptance of Tenders 45
3.15 Blank 47
3.16 Re-invitation of Tenders 47
3.17 Tie between two Lowest Tenders 48
3.18 Acceptance of Tenders, Permission of next higher engineer authority when only
one Quoted Valid Tender is received out of several issued. 48
3.19 Award of Works to Contractors who have close relations in MES and Ministry
of Defence- Procedure to be followed by Contractors and Officers 49
3.20 Despatch of Contract Documents to Principal Controllers/Controllers of Defence
Accounts 49
3.21 Supply of Contract Documents to users 50
3.22 Single Tender Contracts 50
3.23 FC Cases so
3.24 Acceptance of Tenders while proceeding on Posting/Retirement 51
3.24A Exercise of powers in executive appointment beyond three years 52
3.25 Revocation/Upward Revision of Offer/Voluntary Reduction by lowest tenderer
after opening of tenders 52
4.1 Introduction 53
~-2 Definition of a Contract 53
4.3 Legal Requirements 53
4.4 Contractors and their Agents 54
4.5 Contract Voidable at Inception 55
4.6 Contract Voidable by Subsequent Default 55
4.7 Communication of Proposal, Acceptance and Revocation 55
4.8 Revocation of Proposal and Acceptance 55
INDEX (vii)
4.11 Types of Contract 56
4.12 Contract Forms 60
5.1 to 5.12 General 61

5.13 Important Provisions in Tender Documents 62
5.14 Importance of Correct Pre-Pricing : Contracts Based on Pre-Priced Schedule 'Pl. 63
5.15 Importance of Correct Quantities in Item Rate Contracts 64
5.16 Issue of Stores 65
5.17 Issue ofT & P on Hire to Contractors 65
5.18 Hire of Transport 65
5.19 Materials obtained from Demolition of Buildings 65
5.20 Lump Sum Tender Document 66
5.21 Pre-tender Conference 68
;~~~~~~!~,, :f~-f~11r~i~;b~~~~~i~~-fi~~~l\~~-"' ;''~9'115

6.1 Stores to be Issued Under Schedule B 69
6.3 Issue Rate for Government Stores 70
6.4 Stores to be Issued Free for Fixing 70
6.5 Issue of Stores During Execution, Which are not Included in Original Contract 70
6.6 Place of Issue 70
6.7 Recovery for Schedule 'B' Stores for making good damage caused to Buildings 71
6.8 Issue of Stores During Maintenance Period 71
6.9 Recovery of Stores Issued under Schedule 'B' 71
6.10 Technical check of Stores Statement attached to Final Bill 72
6.11 Over Issue of Stores to Contractors 72
6.12 Under Issue of Stores of Contractors 74
6.14 Issue of Cement to Contractors under Schedule 'B' for incorporation in the
works and to avoid its pilferage (Applicable in contracts, where provision of is-
sue of cement under Schedule B exists) 74
6.15 Cement Constants 75
8.1 Special Conditions ~~--- · 79

8.2 Other Provisions 79
8.3 Special Condition for Tubewell Boring 85
8.4 Alteration of Standard Tender Documents 85
8.5 Approval of E-in-C for Alteration in Printed Conditions 85
-.--,--.,
'se~titi9! ·,$p~¢ffi.~~ti~tJ.~·-·.··· 86...9.7
9.1 Art of Writing Specifications 86
9.2 Decision on Specifications 89
9.3 General Specifications and Particular Specifications 89
9.4 Materials 90
9.5 E-in-C's Technical Instructions 90
J
(vill} INDEX
9.6 Steel 90
9.7 Cement 93
9.8 Design Mix Concrete 97
ri~~~,i~t ~~~'#~~~~~':il'9'ri~~,~~,~~~~t~,~~, · .· ·;·,.· ,,,,., ., . . . .;.··,••!'ls::.:too
10.1 Introduction 98
10.2 Procedure 98
10.3 Term Contracts 98
10.4 Periodical Services 100
12.1 General 104

12.2 Procedure 104
12.3 Validity Period for Acceptance 107
12.5 Tenders Based on Design by Consultants 108
12.6 Tenders Based on Contractor's own Design 108
12.7 New Techniques or Materials 108
12.8 Boring of tube-well~special conditions 108
12.9 Sales Tax 109
12.10 Issue of Form 'D' for Inter-State Sales Tax 109
12.11 Training of MES Personnel 109
12.12 Foreign Exchange 109
f~~:fi'! t"!~!i~~!Jl~~Pi~~i~~i~'-~T: :)A~s;2'· ,;•.,.~, i '·········· •:tttW.114
13.1 Introduction llO
13.2 Acceptance of Tender llO
13.3 Conditions of Contract llO
13.4 Deviation (Condition 5) llO
13.5 Valuation of Deviations (Condition 31) 111
13.6 Time, Completion, Extension of Time and Compensation for Delay (Conditions,
6, 7 and 24) 111
13.7 Stores (Condition 8) 111
13.8 ;~ Samples 112
13.9 f~ Packages (Condition 9) 112
13.10 '., Duties and Other charges (Condition 10) 112
13.11 • Assignment (Condition 13) 112
13.12 Performance (Conditions 16 and 20) ll2
13.14 Cancellation and Termination ll3
13.15 Valuation and Payment (Conditions 33 and 34) ll4
~•~!~:. ~!i~,,~~Jt~t,am~t~a;~~~~--M~~r~~i·',~·
'
. .·.
l•U Introduction 115
14.2 Schedule 'N. 115
14.3 Area of Applicability 115
14.4 Term 115
14.6 Correct Application of Rates in Schedule 'N. 116
14.7 Piece Work/Additional Work 116
14.8 Work Reserved 116
INDEX (ix)
14.9 Refund of Security Deposit 117
14.10 Daily Return 117
14.11 Water 117
14.12 Breakage and Losses 117
14.13 Termination of Contract before Completion 117
14.14 Rates for Additional Work 117
s¢etioi1is ; con.n~ct8 for A.pRoinhnent of Auctll}rleelf&.fornisposa}·•.•b'y ..AI1~<t11 ·
· 11f S]1J1.'lusCamp!;/~umtings l:Jclongingto 1\IIES, ··· ·
·f.·.·.t.'.:._·.·.·-. . i.······· ~~-·:·•:.- .•...•
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Seciion !6 { 'i;~~tra'* ... ~4ntinl~trttrl6J1;. J.len~rltl ?nnciples · and Sp~eime.n
I.¢tt~sfJ!o1'lltat8 · ·· ·1~1..···125
16.1 General 121
16.1A Measures to incorporate genuine material in works 122
16.2 Passing and Inspection of works 122
16.3 Visit to site of works by Surveyors 123
16.4 Assistance to Contractor 124
16.5 Clearance of site on completion of works 124
16.6 Defects liability period 124
16.7 Confidential reports on the performance of Contractor 125
seetio.n17: 1;imef'ol<Com,letiop..ofw~:r~.~el1Si~IJ.«l(Tiitt,~, c;~p.peqsation(or. . . .·· ..·
• J)~la~.SU!;pe'*siop. ofWQrk, · · · · ·· · i2.&;,tai
17.1 Time for Completion of Work 126
17.2 Extension of Time 127
17.3 Compensation for Delay -·-· 128
17.4 Suspension of Work and Extension of TimV/ 129
··s~¢ti!lJ1 ;1& :· •. lntefi1tl Paytnent(ltAAs), ttn.der···coJtip~satioh,BG)Is.~tieq . o{• lWt
:Retell.titm Mone~ Measu1'es to avoid overpayme11tin ~ ··· · · :..a•2:.ii'8
18.1 Interim Payments (RAR) Advance on Account- Procedure 132
18.2 Assessment of value of work executed 132
18.3 Materials brought at site 133
18.4 Preparation of RAR 133
18.5 Running account payments to contractors working under Government, claim of
compensation for delay in completion of works 134
18.6 Bank Guarantee Bond in the lieu of retention money 135
18.7 Surprise checking of RARs 137
18.8 Measures to prevent over payment to Contractors in RARs 138
s¢eti.P#.1.9·: •nevfatiof1 ()rd~l's~ no.umit; .·A.J~ AlneD.4men.ttq.cQntf~ct 1a9.,.;14~
19.1 Deviation limit 139
19.2 Approval in principle and ordering of DO 142
19.3 Pricing, checking and distribution of Works/ Deviation Orders 144
19.4 Issuing one combined order for a number of deviations 145
19.5 Orders for extension of time 145
19.6 Ordering Deviations on No Cost Basis 145
19 ·7 Deviations and amendments to Contracts 146
I
ll
(x) INDEX
19.8 Reimbursement of increase in prices under Condition 63 of IAFW-2249/ Condi-
tion 32 of IAFW-1815 Z 146
s~ctiun. 20':. llin~billsl''M«:!ll.sures t~.llvciitl;.d:eJaYs, Payment: llf.~ritifi~~ i~..is; ···
< 0 .Jtefwl.!i of teenveey{ Spec,iaJ<.,itfel:s~ J:ate · ' .. · · ··. ·· <'141~155
20.1 Measures to avoid delay in preparation and settlement of final bills 147
20.2 Payment of bills to Contractor's bank 153
20.3 Claiming payment for items of work omitted from the final bill. 153
20.4 Refund of recovery from Final bill of a Contractor on account of an anticipated
overpayment. 154
20.5 Water charges on star rates 154
20.6 Special rate/Star rate 154
20.7 Technical Check of Final Bills 154
·sectic>rt'!!t~ ~~eu~el>(liiJ1$fl't1(!6ons;tik~Js~¢ ofl¥~.n@ilJ'u•tl~l1,<~·~·.·•'···••···· · .· . . ·
• · •· .>·..••·.. " ·•· (:<t11CeJt•1ion 0£. CoJ1*l.'<tct> 1tell'¥&.ti0nof j®\¢el1at;i~Uli n¢d:n~ol1·cfJf··. ·•·· ·•· •·
l'fcat:$ouree,. Fak~g..es, liabO\u<lomill!i!.ete•;. •> ·. •·• .t:f:5.,..t6:&.

21.1 Issue of water from MES sources to Contractors 156
21.2 Devaluation of works 156
21.3 Procedure to be followed in the event of Contractor's death 157
21.4 Revocation of cancellation of contract 158
21.5 Deduction of Income tax at source 158
21.6 Fair wages clause and Contractor's Labour Regulations 158
Contract Labour (Regulation and Abolition) Act, 1970 159
Points to be taken care of before cancellation of contracts and conclusion of risk
22.1 Introduction 165

22.2 Organisation 165
22.3 Area of Responsibility 166
22.4 Command and Control 166
22.5 Charter of Duties • 166
~~tt~i:~t }'lsi~ ;~1'1~ •.-.q,eeti.(J#s, ~¢liitte~J;E:x~~~-~#..?~tifiiflll-~., z.o£ .··.I.···. ·.··.· . . . . . . .
'.6 ~>i ··•· · · .OlJse~atieb$ ~illlteJ.';lcti,onW!thiS~ ·..· • . i~i? >·~·. i~7"-1~~
23.1 General 167
23.2 Guidelines for Inspections 167
23.3 Conduct of inspection 168
23.4 Verification of Rectification of Defects 168
23.5 Scrutiny of Contract Agreements 169
23.6 Site Examination of Works 169
23.7 Vouchers/Test Certificates 170
23.8 Inspection of Works-Special Reports 170
23.9 Checking of Paid Final Bills/RARs 170
23.10 Formulation and Issue of Observations 171
23.11 Minor Observations 171
INDEX (xi)
23.12 Major Observations 171
23.13 Observations on Scrutiny of Contract Agreements 171
23.14 Special Observations 172
23.15 STE Interaction with Station Commanders 172
23.16 STE Interaction with Stn HQ After Return to HQ 172
23.17 STE Presentation to Comd HQ 172
23.18 Verification of Rectification of Defects 173
23.19 Progressing of Observations 173
23.20 Monitoring at Integrated Headquarters of Defence Level 173
23.21 Monitoring at Command Level 173
23.22 Periodical Meetings between STE/TE and CWE 174
,,~~~12~# ;~~~~~,~~>~,s~Jfili\t~.Ai~~~(sc~l·"
24.1 Draft Paragraphs 176
24.2 Serious Cases 176
24.3 Procedure to deal with ADGTE's Draft Paras (Dps) 177
.·
24.4 Procedure to deal with ADGTE's serious cases (SCs) 177
;=~-~~~~;~~-~::~~~~tJtZ~~~~~~u:~~&;t~.·········· t'l~.
· iiO-ul-4
26.3 Difference between right of adjustment and right of demand 181
26.4 Procedure to realise dues from the Contractors 181
28.6 Guidelines for appointment of arbitrators by CE Zone (appointing authority) in

CsWE & GEs Contracts 187
28.7 Other aspects to be borne in mind while dealing cases pertaining to appoint-
• ment of arbitrators 187
28.8 Guidelines for appointment of arbitrators by E-in-C in CE's contracts 188
.se¢tt~ti~~l ;~~~~iJ.~oni,..~cJ,~ret'l~~or,\r~ttr~ti~#li~e~. · . ·.19o-t93
29.14 Venue of Hearing 192
29.15 Arbitration Hearing (Defence) 192
t~t~~~r~~•:~u~~;~~t~~~~~~~~tlJ~t=;:~
4•t1·~Witi~n;~~ ~;.
.• :s,_::t:>? • •• · · .· :••:-· . ,, • ~~4--·:mi
30.1 Examination of Awards : (Correction and Interpretation of Award : Additional
Award) 194
30.2 Implementation of Awards/Filing objections on awards after obtaining advice of
LA(Def) 194
30.3 Memorandum of Award 203
30.4 Stamp Duty on Award 203 .I
30.5 Regularisation of excess payments arising out of awards 204
30.6 Disposal of awards not filed in courts 204 I
30.7 Miscellaneous Issues Relating to Arbitration Cases 204
I
I
I
~-
--------~---------------------------------
( xii) INDEX
Section31: · civill'rocee~ings : c6urt Cases. 20~21~
31.1 Initiation of legal action in Courts 206
31.2 Action to be taken by the CE Zone/Project on receipt of Notice to Suit. 206
31.3 Action to be taken by the Dte/Branch concerned at Integrated HQ of MOD (Army)
and Admin. Section of Ministry of Defence on receipt of the Report from Lower For-
mation 207
31.4 Action to be taken when a suit is filed in a Court 207
31.5 Action to be taken when the Defence of the Suit is sanctioned 208
31.6 Important Points for Continual Attention 209
31.7 Appeals 209
31.8 Appeal by the Opposite party 210
31.9 Payment Relating to Court Decrees/Arbitration Awards 210
31.10 Blank 210
31.11 Writ Petitions in the High Courts 210
31.12 Conduct of Central Government Cases in Courts in Delhi : District Courts and
Delhi High Court 210
31.13 Conduct ofGovernment Cases in Supreme Court 211
31.14 Legal Notice U/S 80 CPC 211
31.15 Time Barred Cases 212
31.16 Advice of Ministry of Law in Cases where Legal or Constitutional Issues are In-
volved 212
31.17 Procedure Relating to Disposal of Court ProhibitoryI Attachment Orders 212
31.18 Conduct of Litigations : Delhi High Court- Instruction Regarding 214
31.19 SOP for Dealing Court Cases 215
' -- .•
\-,- --- --_. -_. :_ ,' -,,- -..
sz ;
,'
~ct.tcm IJl1pol'tarit Court Jndg~ments 216+228

32.1 Supreme Court of India Judgement in SBP & Co. Vs. Patel Engineering Ltd. and
Anr. 2005 (3) Arb. LR 285 (SC) delivered on 26 Oct. 2005. 216
32.2 Supreme Court of India Judgement in UOI and Another Vs MP Gupta (Civil Ap-
peal No. 2053 of 1999, 2005 (1) Arb. LR 368 (SC) decided on 5 Feb, 2004. 217
32.3 Supreme Court of India Judgement in General Manager Northern Railway and
Anr Vs Sarvesh Chopra JT 2002 (2) SC 445 decided on 1 March 2002 218
32.4 Supreme Court of India Judgement of Union of India Vs M/s Momin Construc-
tion Co (AIR 1995 SC 1927) decided on 10 Jan 1995 218
32.5 Supreme Court of India Judgement in M/s PK Ramaiah & Company Vs Chair-
man and Managing Director, National Thermal Power Corporation (1994 Suppl
31 Supreme Court Cases 126) decided on 01 Oct 1993 218
32.6 Supreme Court of India Judgement in Datar Switchgears Ltd. Vs. Tata Finance
Ltd. 2000 (3) ALR 447 219
/ 32.7 Delhi High Court Judgement in Vaish Brothers and Co. Vs. UOI and Another
I
i 2004 (3) Arb. LR 225 (Delhi) decided on 06 Sept 2004 65 providing 219
32.8 High Court of Kerala at Ernakulam Judgement in Engineer-in-Chief and CE
(Navy) Cochin Vs M/S Bharath Builders, WP (C) No. 10520 of 2004 (R) decided
on 19 Jan 2005. 219
32.9 Madras High Court Judgement in M/s Kamala Solvent Vs Manipal Finance Cor-
poration Ltd. and others, AIR 2001 Madras 440, decided on 19 June 2001 219
32.10 Supreme Court of India Judgement in Steel Authority of India Limited Vs JC
Budharaja Government and Mining Contractor (1999 Arb. W.L.J. 714} decided
on 1 Sep. 1999 219
"'?"'
....~----------c--------------------------------
INDEX ( xiii )
32.11 Supreme Court of India Judgement in Oil and Natural Gas Corporation Ltd. Vs.
SAW Pipes Ltd., 2003(2) Arb LR 5 (SC), decided on 17 April2003. 220
32.12 Punjab and Haryana High Court order in UO! Vs. Pavani Civil Contractors (P)
Ltd. and another in CR No. 1989 of 2002 delivered on 16 Nov. 2002 222
32.13 Calcutta High Court Judgement in KC Boul alias Kajoj Chandra Roy Vs. Union of
India in WP No. 1077, 2001 decided on 13 Aug 2001. 222
32.14 Allahabad High Court Judgement in UOI Vs. MIS Kohli Construction Company
in FAFO No. 671 of 1997 decided on 11 November 1998. 223
32.15 Supreme Court Judgement in United India Insurance Co. Ltd. Vs. JA Infrastruc-
ture Pvt. Ltd.; 2006 (3) Arb LR 369 (SC) decided on 30 Aug 2006. 223
32.16 Supreme Court judgement in the matter of M/s Shring Construction Company
Pvt Ltd Vs UO! (Civil Appeal No 4516 of 2006) :Whether section 14 of the Limi-
tation is applicable to the Arbitration and Conciliation Act 1996. 224
32.17 Hon'ble Supreme Court Judgement in the matter of Ramnath International Con-
struction Pvt Ltd V/s UOI and ANR 2006 (4) ARB R 385 (SC) decided on 11th
Dec 2006 (Civil appeal Nos 3167-3168 of 2005) : Contractor not entitled for
compensation of any nature on account of delays attributable to employer due
to prohibition contained in condition 11 (C) of IAFW-2249. 225
32.18 No claim certificate leading to full and final settlement of all the claims : ARB
appeal 3/2000 in Sikkim High Court : Sagarmull Agarwala Vs UOI. 226
32.19 Honble Supreme Court Judgement in the Matter of R L Kalathia & Co. Versus
State of Gujrat in Civil Appeal No. 3245 of 2003 decided on 14 Jan. 2011 227
32.20 Hoble Supreme Court Judgement in matter of JG Engineers Pvt. Ltd. Versus Un-
ion of India & ANR in Civil Appeal No. 3349 of 2004 decided on 28 April 2011 227
32.21 Extract from the Supreme Court's Decision in Fateh Chand Vs Balkishan (Air
1963 SC Page 1045) 227
._·PA~t.±l'\t~~EPQR1"S·A~Q··REtURNs
Section 33 : Reports and Retul'lis ifl respect of Dte of Contract Management/E8 ·
Section . · 231-234
Appendix 1.1 Application for Enrolment as Contractor 237

Appendix 1.2 · Form of Solvency and Working Capital Certificate from Nationalised/ Sched-
uled Bank ' 240
Appendix 1.3 Check List for Registration/Upgrading of Contractors 241
Appendix 1.4 Bond to Secure Performance of Agreement 243
Appendix 1.5 Specimen Enlistment Letter 245
Appendix t;6 Application for Renewal as Contractor for the Next Cyclic Period 01 Jan ..... to
31 Dec ..... 248
Appendix 1.7 Specimen Letters for Removal of Contractor 250
Appendix2.1 Guarantee Bond (to be used by Approved Scheduled Banks]. 251
Appendix 2.2 Guarantee Bond (to be used by Unapproved Scheduled Banks) 252
Appendix 2.3 Extension Deed of BGB 253
il
( xiv) INDEX
>.~pPen~~:2;4 ·. Encashment Letter of BGB 254
A~~~n~fi< ~Jt(¥> Notice Inviting Tenders 256
.:!\.pp~nllh 3,2 •••. Register of Bank Drafts 257
.J\PP~~dlx>g'.a · Selection of Contractors for Issue of Tenders 258
'Appendix 3;4. ·· Report on Issue/Non-issue of Tenders 259
a
. Appendix iS! •Receiving and Opening of Tenders 260
• AJfpettdfx.a.6 · Scrutiny of Tenders 264
Apperi~a:1·· Analysis of Lump Sum Tenders Based on SSR 265
Appe~diX ~-~ Rules for Dealing with "FREAK RATES" 267
.· Appetl,~a.9 Form of Acceptance Letter 269
Apperi:db: a::u) 'Form of Letter to be Issued Simultaneously in Continuation of Acceptance
Letter 271
Appendix 3:11 . Blank 272
Appi'mdix 3.12 Report showing reasons for acceptance of tender when only one priced ten-
der is received and accepted out of several issued. 273
Appendix 3.1.3 Single Tender Report 274
.·· Allpen,!l~ 3.14 32 Point-Proforma 275
Ap~jJdiXl:t·l~ Purchase Preference Policy 276
Appe~4.·:[ • 'JYpes of Contracts in Common use in MES 277
Appen,diX 4.:! •. Contract Forms used in MES 279
Ap~rldfx 5.1 Guidelines for Information to be collected before going out to Tender with
· · · ·· · · .. ··. ······ · ' Regard to Ground Data, Site Factors and Availability of Materials which En-
ables Drafting of Technical Sanction, Special Conditions and Particular
'· ··•• Specifications 281
Appen&x·!i.~, ·Particulars to be Furnished by Planning Section to the E8 Section for Prepara-
. tion of Tender Documents 285
. Apt>en!liX 5,3 - Some General Factors to be taken into Consideration while Fixing Period of
Completion for Works 287
• App~~>§.j; •. Statement of Stores Required Under CAGE III (c) of IAFW 2262 289
Apf~~~?6.:2•• Details of Recoveries for Empty Containers 290
. APPe~<fikP·~ Cement Constants 291
·· Appendix '7 ;1 Statement of Hire Charges for T & P 293
Appe11dix fl;l List of Special Conditions 294 I
'
Appe~iux 8.2 Specimen Conditions/Provisions to be Included in Tender Documents 314 I
Appendix 8.3. Special Condition to be Incorporated in tenders for boring Thbe Wells I
wherein Payment is to be made on the Basis of the Depth of Boring 323
Appendix 9,1 Steel Supply and Acceptance Register 324 I
-I
Appenclix 9.2 Frequency for Normal Mass, Tensile, Bend and Rebend Test of Steel 325 I
AppendiX 9.3 Cement Supply and Acceptance Register I
326
I
Appendix 9.4. Checklist/Guidelines for Drafting Specifications 327
AppendiX 11.1 • Consultancy Agreement 328
I
I
I'
I
T INDEX
A:ltP¢11~;,;1~\t'X Comparative Statement of Tenders (Part-A)
(XV)
331
~--tl§I~~~~~E~~Et~=::·:::::~~u;:
332
333
333
roo-
. :; ·· \ elusion of a contract 334
.~Iimi~f6?z' Form of Diligence notice to be issued by GE to the Contractor when there is
. i~~~nd~l~.~> ~~:~::::ri~o: i::::::c::::t:::::n::::o:::o:: ::::~:a:;:f ::~ 338
A})pendix1~.4· ~~~ a:fdN~:i~::~s:: ~::~ed by GE warning the Contractor about his liabil-
339
ity to pay compensation for delay-to be issued 15 days prior to due date of
· completion 340
AiiP4eD.ili.J{ ~6.$ Form of letter to be issued by the GE to the Contractor to claim compensation
for not completing the work on Lhe due date-to be issued immediately after
AppenJ~ f~.6 .~~:~~~ f:~:::oc~:fs~e!~\~~~:l~~:~~ctor by GE for suspending work

341
342
.!\,ppen(lix.·;l6.7 Form of letter to the Contractor to be issued by GE for resumption of work af-
·> ·-:·-.·--::
, ','_, _ -_ ';_> .:._
~fut~tt~:L~.$ •~:::e~:~:trer to the Contractor to be issued by GE regarding his contin-

343
•. ····.···.··· .. ( ;;• ued negligence in rectification of defects/bad workmanship pointed out to his
·i\pP4en~ik~ ~~~e~;~:~~~~~:~!~ifi~:;~::~: ~~~:~ ~~ !e GE to the Contractor

0 344
345
. Ap~ndi:JI::J.6.10 Form of Notice to the Contractor to be issued by the GE to warn the Contrac-
··A;perid~!~j~i; ·~~:~I:~~~:~~I~0:~l~~t!::~~~~:::;:b:;::::~~:r ::ec::::~t::nA:: 346
:~~p;~i:6.i~· ;::a~; the letter to be addressed to the Contractor by the Accepting Officer
347
ApPe~~i~.~~ ··~~:~a~~e;!:!~~~~:h:~~~:~:~~ ~: ::o~::~:a:~rc:;::t~~~~!~~ :r Works

1 348
· ·•· · · · •· '• <..... · Engineers for foreclosing a contract by the Government 349
Appen.dk.16.t4- Form of the letter to the Contractor from GE/CWE/CE to guard against Sec-
350
. Ap!len~¥~-~~. :~;; ~~ :dl~=e~ft~~~~:~=~~~ ~~! ~E :~ the Contractor for rectification of
6
defects during Defects Liability Period 351

Appe11Qix 1()'.16 Form of the letter to be issued to the Contractor on completion of rectification
·. of all defects notified during the Defects Liability Period under para 4 of Con-
dition 49 of IAFW-2249 . 352
. Appendix 1,6.• 1'7 Form of the amendment to the Contract 353
I I · ~pen<UX 16•18 Performance Report of Contractors Stage-Iii! 354
· Appendix 17.1 Report for Grant of Extension of Time Exceeding 25% of the Original Con-
tract Period or Exceeding 3/9 Months, whichever is more 356
Appendix 18.1. Form of Yardstick 357
Appendix ~8.2 Bank Guarantee Bond (In Lieu of Retention Money) (To be used by Approved
Scheduled Banks) 360
(xvi) INDEX
AJ?t>end.ix 18.3 Bank Guarantee Bond (In Lieu of Retention Money) (To be used by Unap-
. . . . · proved Scheduled Banks) 362
App~ndixJ8.4 Format for Extension of Bank Guarantee 364
At)pe.idbris,'s Encashment Notice for BGB 365
·Appendix 19.1 .. Check List of Documents/Details to be Initiated while Seeking Approval for
Enhancement in DO Limit 366
Appemlix 19.2 Government of India, Ministry of Steel, (SAIL-PC Section) Letter No.
· · 16(9)/2004- SAIL(PC) Dated : 9th July, 2004 368
Appe):ldix 20.1 .•. Check List for Engineer-in-Charge and JE (QS&C) to verify that all documents
. . · comprising and accompanying Final Bill are complete. 369
Appendix ~0.2 Examples of Objections Pertaining to Administrative or Procedural Matters
and Matters Entirely within the Discretion of Engineers 372
Appendix 20.S ·. · Para 258 of Financial Regulations Part I 373
;\ppendix 20.4 Form for Approval of Special Rate 374
;\ppendix 20.5 Form for Analysis of Special Rate 375
Appendix :.a1;1
& ' ', --
Latest File Validation Utility for quarterly e-TDS/TCS returns 376
Appendix 21.2 Common Types of Irregularities in Labour Regulations Implementations 379
Appendix 21.3 Advice of Ministry of Law with regard to actions in the event of Contractor's
death 380
Appendix 22<1 Charter for Additional Directorate General of Technical Examination 382
Appendix 2ll.t · Common Defects Noticed During Inspection of Work By Technical Examiners
Including Errors in Recording Measurements. 384
Appendix.2s;1 Intensive Examination of MES Works by CVC (CTE's Organisation) 388
Appendix: 27.1 Measures to Reduce Arbitration Cases 389
·Appendix 28.1 • Particulars for Appointment of Arbitrator 392
.1\ppeJ:ld,ix 2.8.2 Letter by Accepting Officers where reference to Arbitration is not concurred. 393
Appen<liX 30.1 Statement of Case Seeking Advice of LA(DEF)/MOL Branch SECTT 394
Appendix.30.2 Memorandum of Award 395
Appendix 30.3 Format of letter by GElAGE (I) to CWE for taking decision with regard to im-
plementation of Arbitration Award. 397
Appendix 30.4 · Form of letter to Contractor when he includes claims over and above listed
while signing the final bill. 398
Appendix· 30.5 New Dispensation for Settlement of commercial disputes between Public Sec-
tor Enterprises inter-se and Public Sector Enterprise(s) and Government De-
partment(s) through Permanent Machinery of Arbitrators (PMA) in the
· Department of Public Enterprises. 399
Appendix 30.6 Letter of Appointment of Arbitrator. 403
•· .
Appendix 30.7 Appointment of Arbitrator-Court Order. 405
AppendiX 31.1 Specimen Reply to Contractor's counsel's notice under Section 80 CPC in the
event of the Contractor ignoring the arbitration clause and threatening to ini-
tiate court action against Government. 407
Appendix 33.1 List of Reports & Returns (Contract Management/E8 Section) 408
I
}_
'. ----------------~
"..,_
lit
l
~~~~~- ~~----~-~ -~~
P rtl
PRE:-COOTRUCT STUGE:
•
SECTION
ENLISTMENT OF CONTRACTORS, STANDING SECURITY

DEPOSIT, UPGRADING, REMOVAL AND
DOWN GRADING OF CONTRACTORS
u Gimehir'
(a) Applications for enlistment will be submitted by the contractors on [IAFW-2190 (Revised
2009) (Appendix 1.1) to the appropriate enlisting authority.
(b) Fresh enlistment in MES is opened from time to time as per separate notification by the
E-in-C's Branch. However in respect of certain remote and difficult areas, enlistment may be done at
any time after satisfactory completion of work(s) by the contractor in MES in such areas with prior
permission of E-in-C's Branch in respect of D to S Class and CE Command in respect of E Class.
(c) Fresh enlistment in MES is done (whenever opened) in respect of those contractors only,
who have already completed satisfactorily at least one work in MES. No other firm is enlisted
either on the basis of having worked on power of attorney or under any other capacity or on the
basis of Job orders etc. Other firms who have not executed any MES work but are performing
exceptionally well in other Government Departments and their enlistment is considered in the
interest of MES, may also be enlisted after prior approval of CE Zone [or CE Command/ADG (OF &
DRDO) where there is no CWE Office] in respect of enlistment in 'E' Class, CE Command/ADG (OF
& DRDO) in respect of enlistment in 'D' toW. Class and E-in-C's Branch in respect of enlistment in'S'
Class.
(d) Applications received for enlistment in MES from the contractors during ban period shall be
returned advising them that presently enlistment is banned and they will be informed, whenever
enlistment is open, to apply at that time. However they will be sent the criteria for enlistment in
MES, to comply with. Record of such contractors and provisionally enlisted contractors shall be
maintained in a separate register in each office of enlisting authorities and these contractors will be
informed to apply whenever enlistment is open.
1.2 Categories of Works for Regj.stratiol!_
Contractors will be enlisted for one or more of the following categories of works for which they
are considered suitable :
(a) Civil Engineering Works
(i) Building and Roads
(ii) Water Supply and Sewage Disposal
(iii) Runways and Pavements
(iv) Marine and Harbour Works
(3)
-- --
4 PART-I : PRE-CONTRACT S'I'JU
(b) Electrical Engineering Works

(i) Low Tension Electric Works (upto 1100 Volts)
(ii) High Tension Electric Works (excluding 33 KV)
(iii) 33 KV and Extra High Voltage Installations
(c) Electrical/Mechanical Engineering Services
(i) Air Conditioning and Refrigeration
(ii) Lifts
(iii) Electrically Operated Cranes
(iv) Incinerators
(v) Mechanical Laundry
(vi) Fire Fighting and Fire Detection System
(vii) Water and Effluent Treatment
(d) Miscellaneous
(i) Manufacture of Furniture
(ii) Handling of Engineer Stores and Transport
(iii) Horticulture and Landscaping
(iv) Information Technology Services
.
(v) Maintenance and Operation of ElM Installation

(vi) Repair of Transport Vehicles
(vii) Energy Audit Services
(viii)Auction Services
Note : Contractors of class )f and above only shall be eligible for enlistment in categories (a}(iii) Runways and Pavements
and (a)(iv) Marine and Harbour Works, subject to prior approval of E-in-C.
1.3 Classificatlonof Contti\~td('

The Classification, value of Standing Security Deposit, Competent Enlisting Authority and
Registering Authority shall be as under :
... ..
. ........
. . . ·< . . ·····.;c· ..••. ·.•· · ..•.
A~thofity (:ol)ipetent to
Cl_~s • Vlil~e ofS~ding
. ~"nlpeti91\"to .·. · · ·
Upper ... · .. 1 . ·•···.·eruiSt
Tendering 11Jl1it Secu,~ Dep~sit .......
.· ···.. ....
··. .. .. ·.•··.. . .. ./!.utiU>"tj'
• • • • . ·. (Rs;) .. . (Rs•) > •····· ·..·•. ·. ·..••.... ·..•. ·•···.•·.• · . < < .·
·:· · ·
• .. · .• >· .
···· ·· R.egfstet
•••• ; . · .
•••••••••••••
(1) (2) (3) (4) - (5)
ss No limit 15 Lakhs E-in-C's Branch E-in-C's Branch
s 1500 Lakhs 11 Lakhs CE Connnand/ ADG (OF & DRDO) CE Command/ADG (OF & DRDO)
A 750 Lakhs 7 Lakhs CE Zone/Project CE Command/ADG (OF & DRDO)
B 300 Lakhs 4Lakhs CE Zone/Project CE Connnand/ADG (OF & DRDO)
c 100 Lakhs 1.75 Lakhs CE Zone/Project CE Command/ADG (OF & DRDO)
~-
- ---- ·-
\
•
'li·······
..
·~:I
'
1 011 23009151 Dte of Contract Management

Military Engineer Services
Engineer-in-Chief's Branch
r
I
Integrated HQ of MoD (Army)
Kashmir House, Rajaji Marg
II New Delhi-110 011
!
f!C- 36073/MESBAI/Gen/ 02- /ES o'i5 Aug 2013
CLARIFICATION : CATEGORY OF ENLISTMENT
·!. It has bee11 observed that tenders for maintenance works of'internar water·
;ur;ply, 1ntemal electr·ification an·d-Tr1ternal plumbing works are denied. to
cor1tracto1·s enlisted in cate(JOry a (i) Building & Roads whereas these works are
executed alorl£JWith Buildings most of the time.
2 After· due considel·ation on this issue taken up by MES BAI recently; it is

cldrrlred that tenders pertaining to maintenance of internal water supply, internal
el~ctrification & plumbin"Q shall not be denied to the contractors enlisted i11 ciCJss 1:
[in(3) (i) category.
..:'. Thrs si·raii be str·ictly cornpiied witir in futur·e .
~~-
(ND Bhagatkar)
Jt DG (Contracts)
for Engineer-in-Chief
Copy to :-
HI ') Builders Association of India (Regd)

Hl!ad Office 807-808, Sahyog 58
l'r'ilru Place, New Delhi-110019
I
I
I
I
N
•
d
\PART-I : PRE-CONTRACT STAGE 5
I D 50 Lakhs 1. 00 Lakh CE Zone/Project CE Command!ADG (OF & DRDO)

E 25 Lakhs 50,000/ CWE (CE Zone/Project in case there CWE (CE Zone/Project in case there
is no CWE Office) is no CWE Office)
1.4 Criteria for Fresh El1l1sful~nt/Upgi~«tli:l_

(a) Criteria for Fresh E,1!istment/Upgradation in various classes shall be as under :
Li!tlit' \ Of lninfmulli.
res~esit;otat o{movable
~r ~ble prop~ ;,.
fixe<{, as•et.S . (ili case.< or
"?niJiaines>. . (80% Of
tiiinJ.mun:, res~rves/ assets
•)utll be in .. sb~pe ·, Of
. l.imiiovable .property) cas.
In Iakitil) .
(a) Three graduate Engineers 120.00

crores crores from a Government
each or recognised institution with
or financially sound for minimum experience of 5
One work costing not less engagement upto Rs. 40.00 years
than Rs. 20 crores crores and
and (b) working capital not less (b) Five diploma Engioeers
(b) Average annual turn over than Rs. 75.00 lakhs from Government recognized
for last two consecutive years institution with mm1mum
shall not be less than Rs. 20 experience of 8 years
crores. and
(c) One of the Engineers
should have capability to use
Project Management Software
like MS Projects/Primavera in
all ro·ects
'S' (a) Two works costing not (a) Solvent upto Rs. 4.00 (a) Two graduate Engineers 80.00
less than Rs. 7.50 crores crores from a Government
or or recognised institution with
One work costing not less financially sound for minimum experience of 5
than Rs. 12.00 crores engagement upto Rs. 15 years
and crores and
(b) Average annual turn over (b) working capital not less (b) Three diploma Engin~ers
for last two consecutive years than Rs. 50.00 lakhs from Government recogmzed
shall not be less than Rs. institution with nummum
12.00 crores experience of 5 years.
'A' (a) Two works costing not (a) Solvent upto Rs. 2.00 (a) One graduate Engineer 75.00
less than Rs. 4.00 crores crores from a government recog-
or or nised institution with mini-
One work costing not less financially sound for mum experience of 5 years
than Rs. 6.00 crores engagement up to Rs. 7.50 and
and crores (b) Two diploma Engineer
(b) Average annual turn over (b) working capital not less from Government recog-
for last two consecutive than Rs. 30.00 lakhs nized institution with
financial years shall not be minimum experience of 5
less than Rs. 6.00 crores years.
'B' (a) Two works costing not (a) Solvent upto Rs. 100.00 (a) One graduate Engineer 60.00
less than Rs. 1.50 crores lakhs from a government
or or recognised institution with
One work costing not less financially sound for minimum experience of 4
than Rs. 2.50 crores engagement upto Rs .
. 3 00 years
or crores and
(b) Average annual turn over (b) worlting capital not less (b) One diploma Engineer
for last two consecutive years than Rs. 12.00 lakhs from Government reco~
shall not be less than Rs. gnized institution with
300.00 lakhs minimum experience of 5
years
'C' (a) Two works costing not (a) Solvent upto Rs. 40.00 (a) One graduate Engineer 25.00
less than Rs. 50.00 lakhs lakhs from a government recog~
or or nised institution with mini-
One work costing not less financially sound for mum experience of 2 years
than Rs. 80.00 lakhs engagement upto Rs. 100.00 and
1
Ii' or
(b) Average annual turn over
for last two consecutive years
lakhs (b) One diploma Engineer
(b) working capital not lesslfrom Government recognized
than Rs. 10.00 lakhs institution with minimum
j shall not be less than Rs. experience of 4 years
'r 100.00 lakhs
'D' (a) Two works costing not (a) Solvent upto Rs. 20.00 One graduage Engineer from 12.50
less than Rs. 25.00 lakhs lakhs a government recognised in-
or or stitution with minimum expe-
One work costing not less financially sound for rience of 2 years
than Rs. 40.00 lakhs engagement upto Rs. 50.00 or
or lalths One diploma Engineer from
(b) Average annual turn over (b) working capital not less Government recognized
for last two consecutive years than Rs. 7.50 lakhs institution with minimum
shall not be less than Rs. experience of 4 years
50.00 lakhs
'E' (a) Three works costing not (a) Solvent upto Rs. 10.00 One graduate Engineer from a 8.00
less than Rs. 7.50 lakhs lakhs Government recognised
or or institution
Two works costing not less financially sound for or
than Rs. 10.00 lakhs engagement upto Rs. 25.00 One diploma Engineer from
or lakhs Government recognised
One work costing not less (b) working capital not less institution with minimum
than Rs. 2.1.00 lakhs than Rs. 5.00 lakhs . experience of 2 years
or
(b) Average annual turn over
for last two consecutive years
shall not be less than Rs.
25.00 lakhs
PART-I : PRE-CONTRACT STAGE 7
(b) The Contractors shall also meet the requirement of minimum T & P/Machinery and
'llli' •·
Transport for fresh enlistment/upgradation in various categories corresponding to their classes as
un der: ./'
~~•.s·~:;<-.t ·-· -
<>~~c,~~-~
r~~~z~~·,>,"•,;;~M;~':cri··~n~~/(
·.Y-' >~>-•>~ .>.~';;···~~!
,-• z ~t.aa ~-ci"'
.k<.• • ._,C .•·<<c\ <
.-. .- < ··•. ·r·•.•-• ;;t;.;;.;.~~ •c;;; r r. c.. .: ?i ./

I~ CiTe- - - ·- - ·•·- - "-:..~ c:.- --~ --- ~- --; T ;--:- :---->--cz---··c ·- - .·-· ·-· -·- -.- .·- ·- · - · ·;· ·-.-.·-·-·-·---..· <·.···---··.< .•.•
1. One baR concrete mixer 3 2 1 1
i 2. Vibrators and Plate type) 20 15 6 4 4 2 2
!3. Tower/btilder"s hoist 4 2 1 1 1 - -
14. Steel with spans, props etc. (sqm) 16000 4000 lzooo 1500 11000 500 200
5. ~- -'· 5 2 1 1
6. DG Sets 5/10 KVA 3 2 1 1 - - -
7. Total Stations 3 2 1 1 - - -
i 8. Concrete cube testin~r machine 3 2 1 1
!9. Fullv automatic concrete ( olant 1 1 1
10. Transit Mixers 3 2 2 - ~
- -
11. Concrete Pumos 3 2 2 2 1 - -
12. Concrete mobile weilzh batchers 3 2 2 2 1 - -
13. Cranes 2 2 1 1 - - -
114. Excavators [Power 2 2 1 1

15. Bull dozers 2 2 1 1 - - -
16. Road Rollers 2 2 1 1 - - -
117. machines 3 2 1 1
18. Boring rig 5 4 3 2 1 1 1 in case
Iof tube well
IbotinR work
19. Pile driving equipment (sets) 5 4 3 2 1 1 1 in case
ot pming work
I20. Pile testinR t (sets) 3 2 1 1 do-
--< .~ ;;
·.
lcaJ(iii] Runways
· - ·- &-- ---c .< . .> >< .. . -...·. .· .· .·.
. •• .• .-· ·- .. ··---···--·-·
1. rollers 1 1 1
lz. Pneumatic wheeled roller 1 1 1 - - - -
\3. Fully automatic concrete' 'plant 1 1 1 '

\4. Concrete Paver finisher 1 1 1 - - - -
I5. Continuous type hot mix plant 1 1 1 - - ~ ~ •
I
16. Cold MillinR Machine 1 1 1 - - - -
7. Paver finisher (Hydraulically controlled) 1 1 1 - - - --
sensors operated electrically for the pave
finisher controlled)
~ 5 5 5
'(a) On shore piles with devices 2 2 2

(b) Off shore pile driving device with complete equipment 2 2 2
to facilitate :of rift, mixer, etc.
2. Bentonite circulation eqpt 2 2 2
3. Kelly grab for wall construction 2 2 2
;4. Crawler mounted crane of suitable capacity with clam 2 2 2
shell attachment for
5. Diesei/Elec operated hammer/devices for sheet pile 2 2 2
driving and extraction
6. Concrete Mobile Weigh hatchers 3 2 2
7. sets elec/diesel of suitable 2 2 2
8. Drifter for rock anchors 2 2 2
9. Sand r facility for of rift of rock anchors 2 2 2
10. Under water cutting of"" "· 2 2 2
11. : eqpt and for testing of joints 2 2 2
12. Field testing ' 2 2 2
13. Concrete 2 2 2
14. Needle and plate type vibrators 4 4 4 - - -
ciiJ.hi) (':.~ ;;.. ' ' ~·.··· .. · .··.·. . .·· .. ··· ..
...; (lup Tension and l!'l<tra High _Tension Electric Works) . •, .·
•,,
1. Steel/Aluminum ladders 1.5 m. to 8m. (Nos) 10 8 6 4 3 2 2

2. Chase cutting machines 3 2 2 2 1 1
3. Torque wrench for ,fh,l• 3 2 2 2 1 1
4. and 3 2 2 2 1 1
[5. Dielectric ' testing eqpt 3 2 2 2 1 1
[6. dial indicator for 3 2 2 2 1 1
[7. Conduit die set 3 2 2 2 1 1
[8. Pipe vice 3 2 2 2 1 1
[9. Bench vice 3 2 2 2 1 1
10. LT 500 volts 3 2 2 2 1 1
11. HT 5000 volts 3 2 2 2 1 1
I12. Tong tester 3 2 2 2 1 1
9
.. . ' ..
.;, ~;
~·
{\ .·.···•··
·"'2•'; • ···). ••.;.. ;.':' c
-.-
13. Hydraulically operated & hand operated crimping 3 2 2 2 1 1

machines
114. Earth tester 3 2 2 2 1 1

15. Portable drilling ' 3 2 2 2 1 1
16. Over head conductor puller 3 2 2 2 1 1
17. Test bench for light fittings 3 2 2 2 1 1
18. Cable fault location 3 2 2 2 1 1
19. Oil testing set 3 2
.,
~ 2 1 1
20. Multi~meter 3 2 2 2 1 1
led) (i) · ManufactUre of fumitu~e.....·.. ·. .......... ·•.·.
·········.·.•
·.
. ·.
1. fitted · · 1 1 1
·.1 ····· 1 1 1
2. machine 2 2 1
3. machine 4 3 2 2 1 1 1
.
4. Machme for :& 4 3 2 2 1 1 1
5. for sorav 4 3 2 2 1 1 1
6. machines 4 3 2 2 1 1 1
17. sets 4 3 2 2 1 1 1
8. Machines for screw drivinsr 4 3 2 2 1 1 1
9. Drilling machine 4 3 2 2 1 1 1
..· .
l<dJ em :of ' .· .
.. .. ···•····.······ .· .· ·.. · ..•....... · . ·..•.·.. ··.··• .· .···•·· ..•......... •· •.. • .... ·.··•· .•·
1. Trucks 7 5 5 5 3 3 3
i, (c) Verification of character and antecedents of Proprietors/ Partners/Directors shall be done

! through police authorities (not below the rank of Superintendent of Police) before he is brought on
the approved list.
Notes:
1. For enlistment in class 'SS~ the company incorporated under the 'Companies Act 1956' shall only be eligible.
2. The categories for enlistment shall be decided on the basis of nature of works executed by Contractor and T&P/machinery
possessed by him.
3. For enlistment in category (b) Electrical Engineering Works, one of the engineers employed by the Contractor should be
degree/diploma holder in electrical engineering with requisite experience and for enlistment in category (b) (ii) and (iii), the
Contractor should also employ persons having valid electrical licence from competent authority on their parmanent
establishment (Two persons for class 'SS' and one person for class'S' to 'E'). For this, he will submit requisite affidavits and
attested copies of Licences.
4. Working capital with the Contractor shall be judged from balance sheet/bank's certificate as per Appendix 1.2/bank
statement for last 6 months/overdraft facility from bank/fixed deposit receipts with banks.
5. Immovable/movable property (minimum reserve) shall be exclusively in the name of Contractor and not in the name of I
family members/relatives/others. In case of limited companies immovable/movable property (considered for minimum
reserve) shall be exclusively in the name of company and should be reflected in the Balance Sheet of the Company.
I
'
10 PART-I:PRE-CONTRACTSTAGE
6. Requirements of Engineering establishment shall not be insisted vpon if enlistment is to be done for following categories
only: (d) Miscellaneous : (i) Manufacture of Furniture, (ii) Handling of Engineer Stores and Transport, (iii) Horticulture and
Landscaping, (iv) Energy Audit Services, (v) Auction Services.
7. Upgradation of an enlisted Contractor shall be done gradually in stages. Before a Contractor is considered for
up gradation, he should have worked at least for 2 years in the present tendering limit and also meets the criteria laid down.
Normally upgradation will be done only to one next higher class at a time. However, if performance of any particular
Contractor is found to be of very high order and Enlisting Authority considers upgradation of such Contractor by more than
one class justified, the same shall be done only with prior approval of E-in-C's Branch. Following considerations shall only be
applied to ascertain whether the performance of Contractor is of ve~y high order or otherwise :
(a) Contractor has completed the works value of which is more than 1.25 times the requirements in which the upgradation is
being considered.
(b) Average Annual Turnover of the Contractor is more than 1.25 times the requirement in which the upgradation iJ; being
considered.
Example : Contractor enliJited in class 'C' having tendering limit of R.s. 100 lakh proposed to be upgraded to class !4' having
tendering limit of Rs. 7.50 crore, minimum value of works completed and/or turn over shall be as under :
(i) Two works completed costing not less than Rs. 5.00 crore each (1.25 x 4.00)
Or
One work costing not less than R.s. 7.50 crore (1.25 x 6.00)
(ii) Average annual turnover Rs. 7.5 crores (1.25 x 6.00)
(c) Average marks secured in Performance Reports (Stage II) for the works completed in last five years shall not be less than
70%. Where report for any work is not available, it will be deemed to contain only 60% average marks.
8. The criteria laid down above for enlistment/upgradation may be relaxed in the case of Contractors whose performance has
been found to be of a very high order. Such relaxation may, however be given only with the prior approval of E-in-C's Branch.
9. Contractor of class !4' and above shall only be eligible for enlistment in categories (a) (iii) Runways and Pavements and
(a) (iv) Marine and Harbour Works, subject to prior approval of E-in-C.
1.5 Documents required to be submitted by the Contract«Jl' tol'~ij~j~~~ti!i,Jtl

(a) Applications for enrolment as Contractor on IAFW-2190 (Photographs affixed on
Application shall be got attested by any Government Gazetted Officer).
(b) Affidavit for constitution of firm (only limited companies shall be enlisted in 'SS' Class).
I
'~ (c) List of works executed during last 5 years.
'(d) Annual turnover certificate from CA/Income-tax deduction at source (TDS) certificates
from GEs in support of annual turnover during last 5 years.
(e) Balance sheet of last 5 years in case of limited companies.
(f) Affidavit for immovable properties indicating present market value and containing
following endorsements :
(i) That the immovable property is free from mortages, hypothecation or any other disputes
and encumbrances and clearly belongs to the Contractor.
Or
![ That the immovable property is free from any disputes and encumbrances and clearly
belongs to the Contractor. The immovable property has been mortagaged/hypothecated
for Rs .............. Market value of immovable property as per valuation report No ............ .
given by Registered valuer .............. is Rs ................. Therefore balance market value of
lj
property i.e. Rs ................ (Market value minus mortagaged value) is free from any
'I mortgage/ hypothecation.
,--~~~~~~----------------------------------
PART-I: PRE-CONTRACT STAGE 11
(ii) That the said immovable property has not been shown for seeking enlistment of a sister
concern in MES.
(iii) That the said immovable property will not be sold, transferred, gifted or otherwise
disposed off without prior intimation to the registering authority in MES. While giving
such prior intimation, new affidavit for alternate immovable property of value at least
equal to minimum requirement as per scales alongwith valuation report from registered
valuer shall also be submitted; failing which the Registering Authority may declare the
contractor unenlisted or may take action as deemPd fit till acquiring alternate immovable
property by the Contractor.
Note : In ca.se of partnership firm, the partner having immovable property in his name, shall also endorse the following in
addition to above :
"Irrespective of my share in partnership firm, my whole property may be utilised by the Government for realising their
dues/recovery, if the firm fails to deposit the same".
(g) Valuation report from Registered (with any Government body) valuer for immovable
property clearly indicating ownership details. Alternatively the Contractor may submit
certificate from the Deputy Commissioner/ Collector/First Class Magistrate or assessment of
wealth tax authorities.
(h) Affidavit for movable property (T & P, machinery, transport etc.) : If certain
movable property is being considered towards requirements of minimum reserve,
endorsements as required for immovable property shall also be given on affidavit for
movable property and valuation report from Registered (with any Government body)
valuer for movable property clearly indicating ownership details shall also be submitted.
(j) Solvency certificate from the scheduled bank as per specimen given in Appendix-1.2
(k) Working capital certificate from the scheduled Bank as per specimen given in Appendix
1.2. Alternatively Contractor may submit bank statement for the last 6 months/attested
copies of fixed deposit receipts/balance sheet in support of Working Capital.
(1) Affidavit from contractor for employment of Engineers.
(m) Affidavit from Engineers for employment with the Contractor.
(n) Experience and Degree/Diploma certificates of Engineers.
(o) Affidavit from Contractor that there is no Government dues/recovery outstanding against
him. (If there is any Government dues/recovery outstanding from the Contractor,
enlistment/upgradation shall not be done)
(p) Affidavit from Contractor that he is not involved in any arbitration/litigation cases. If he is
involved, he will give brief details of such cases on affidavit and enlisting authority will
critically examine such details and if contractor is considered habitual litigant, his
enlistment/ upgradation shall not be done.
(q) Two photographs of proprietor/partners/directors of firm for verification of character and
antecedents from the police authorities.
(r) Copy of partnership deed in case of partnership firm.
(s) Memorandum and Articles of Association in case of Limited Companies.
(t) Copy of Registration Certificate of firm/company with Registrar of Companies.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-------
(u) Affidavit that no near relative(s) of the contractor or their employees/agents is/are
working as Gazetted/ Commissioned Officer in MES/Corps of Engineers/ Ministry of
Defence. If his/their near relative(s) is/are working in such capacity, he/they shall furnish
details. The contractor shall not be entitled to tender for the works in entire area of CE
Zone/Project under whose control his/their near relatives are working as Gazetted/
Commissioned Officers.
(v) Affidavit that no near relative(s) of the contractor is/are working as Junior Engineer in
MES/Corps of Engineers. If his near relative(s) is/are working in such capacity, the
contractor shall furnish details. The contractor shall not be entitled to tender for the works
in entire area of GE (1)/GE in which his near relative(s) is/are working as Junior Engineer.
(w) Copy of power of attorney given to any person/partner/ director by the Contractor.
(x) Copy of last income tax return.
(y) A separate sheet containing specimen signatures (signed in black ink) and affixed with
photographs of proprietor/ partners/directors. (To be used as Appendix B of enlistment
letter).
Notes : (i) All the documents submitted by the Contractor shall be signed by him.
~----
_ (ii) Photo copies of documents shall be attested by the Gazetted OfficerI Notary Public.
__ ,...- .. ~-
,;:;:;;;
'f;in~;~ll the affidavits shall be given on non-judicial stamp paper of appropriate value duly signed by the contractor and attested
~_,____ ·•·• ,bythe!l{agistrate/NotaryP~blio;,
~· • 1V, f_,iZ<"W'Jt &Wti,'J ;:!;~ Crvi:l Ve'fl
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I\!J;r;:~'1~" LS.l On receijjt ofletter from enlisting u'thority askin' tanding s curity d('iposit and standing
~~ '(rsecurity bond (Bond to secure performance of agreement), and unless the contractor decides to
. ~eposit individual security for each work he secures, he shall furnish the following :
•C4'f r (a) Standing security deposit of appropriate value (Acceptable form of standing security
ll'bDirl: ·He) deposit shall be as given in para 2.1 (h) of sectiqn 2 except Bank Guarantee Bonds)
(!.!Abn"
':$i' jd~=.:~·:~~~;;::,:,~~;~~~~fo""
(b) Standing security bond (Bond to secure performance) on non judicial stamp paper of
"Appendix 1.4 dilly <ign<d by Contractm ~d

tiNf
kJ-y i 114.6 Incmhe Tax Clearance Certific~tlf
rt)r;! ~~---~----------· -·-·-·-
~ W.e.f. 30.10.03 requirement of submission of ITCC by the contractors for enlistment purposes
.frn.,...) has been dispensed with. _ .. . . . ...
I . . .. . . . . . ·. .. •·.·· .•·.. . . . .... •· . .. .J: •< <· •'···•••.;.;
·~~leu:\ 1.7 Verification of Character and Anteceden_ts of Gontractorsan~,~~~h' 4fe:Jt~~
(a) There have been cases where foreign nationals and other anti-social elements were found
associated with Defence works. In the interest of security, therefore, the following action
will be taken :
(i) Character and Antecedents of a Contractor (Proprietor/ Partners/Directors) shall be
verified through police authorities (Not below the rank of Superintendent of Police) before
he is brought on the approved list.
(ii) Character and Antecedents of agents of contractors shall be verified through police
authorities (Not below the rank of Superintendent of Police) before they are associated
with the contract work.
PART~:P~CONTRACTSTAGE 13
(iii) Character and Antecedents of a sub-contractor shall be verified through police authorities
(Not below the rank of Superintendent of Police) before he is associated with the contract
work.
(iv) Character and Antecedents of an unregistered contractor to whom a tender may be issued
shall be verified through police authorities {Not below the rank of Superintendent of
Police) before a tender submitted by him is opened. In case the police verification is not
received till the date of opening of tender, the tender of such Contractor shall not be
opened.
(v) Foreign nationals including labour shall be excluded from all contracts unless for reasons
of technical collaboration or some other consideration, their inclusion is unavoidable.
(b) The following instructions shall be followed for verification of character and antecedents
of contractors :
(i) Verification of character & antecedents of contractors and their agents shall be taken up
with Superintendent of Police of the District to which the individual belongs.
(ii) If an unregistered original equipment manufacturer and multinational company applies
for issue of a tender and he is considered otherwise suitable, immediate action shall be
taken to get the Police verification done. It may not, however, be possible to know the
result of the Police verification before issue or even before acceptance of a tender
submitted by such a tenderer. In such a case, the Accepting officer must, before issuing a
tender, satisfy himself about the character and antecedents of the Contractors. If necessary;
references to other departments with whom the Contractor may have been working may
be made for the purpose.
(iii) Provision shall be made in all tender documents to the effect that Contractor shall employ
only Indian Nationals after verifying their character, antecedents and loyalty. Attention of
tenderers shall also be drawn to Condition 25 of IAFW-2249 (or other similar condition in
the applicable Contract form).
(c) All possible steps shall be taken to ensure that a person of doubtful character and
antecedents is not associated with Defence Works. If in doubt, a reference shall be made to
police authorities for fresh verification.
(d) It has been clarified by the Ministry of Home Affairs that verification of antecedents in case
of Government Undertakings is not necessary:
(e) It has been decided by the Ministry of Defence that verification of antecedents in respect
of the following shall be got done through Intelligence Bureau, Ministry of Home Affairs :
(i) Indian Firms of Contractors having both Indian as well as foreign nationals as
Directors.
(ii) Foreign firms of Contractors.
(iii) Indian Firms of Contractors having Indian Nationals as Directors living in India as
well as Directors of Indian nationality living abroad.
(iv) Indian Firms of Contractors having Indian Directors living in India as well as Directors
oflndian origin having acquired foreign nationality/ citizenship and living abroad.
(f) Any Indian firm having one or more Directors of Indian Nationality but living abroad or
having one or more Directors of Indian origin having taken up foreign nationality/
citizenship may not be enlisted. However, in exceptional cases only and with the approval
of Ministry of Defence, work can be awarded to such firm after verification of their
antecedents and their performance through CBI.
(g) Verification of antecedents of Proprietor/Partners/ Directors of the Firm in connection
with issue of tender and or Enlistment shall be Govt. responsibility and accordingly
payment to police authorities towards verification of antecedents shall be made by
contractor.
(h) Verification of antecedents of Contractor's representatives/labour deployed at site in
connection with execution of work under the contract, as per security requirements of
User Unit/installation shall be the responsibility of the contractor and all expenses in
connection with verification of antecedents by Police Authority/Security Agency shall be
borne by the contractor. An appropriate clause to this effect shall be incorporated in the
contract.
1.8 Procedure for Enlistnient of'c~~ti~~ii~
To ensure uniformity of the procedure for enlistment/ upgrading, the various points to be
checked are enumerated in the 'Check List' given at Appendix 1.3. The points given in the list
should be checked while examining the case of enlistment/upgrading and complied with. Following
procedure will be followed for enlistment of contractor.
(a) 'SS' Class : Application for enlistment as an approved contractor in 'SS' Class is to be
submitted by the Contractor to E-in-C for decision. A contractor of 'S' Class already
enlisted by CE Command should normally apply through that CE Command.
(b) 'S' Class : (i) Application for enlistment as an approved contractor in 'S' Class is to be
submitted by the Contractor to the Command CE for decision. A Contractor not enlisted
with MES may submit his application direct to Command CE but a contractor of 'X Class
already enlisted by a Zonal/Project CE should normally apply through that CE. Having
••
taken a decision to enlist a contractor in 'S' Class the Command CE will inform the
contractor about it and the categories for which it is proposed to enlist him, and call upon
him to deposit the required Standing Security Deposit and to execute the Standing
Security Bond, unless the contractor decides to deposit individual security for each work
he secures.
(ii) On receipt of the Standing Security Deposit and Standing Security Bond from the
Contractor, the Command CE, after having completed the bond by making the following
endorsement at the bottom of the last page, allot a number and issue enlistment letter to
the Contractor under intimation to theE-in-C, CEs of other Commands, all Zonal/Project
CEs, CsWE, GEs and Independent AGEs in his Command :
''Accepted for and on behalf of the President of India
Signature and Designation of CE Command"
--pr---------------------------------------
PART-I:PRE-CONTRACTSTAGE 15
(c) 'N to 'D' Class : (i) Application for enlistment as an approved contractor in any of the
financial classification 'Pl. to 'D' is to be submitted by the Contractor to the Zonal/Project
CE who will decide as to whether the applicant is to be enlisted and if so, in what class and
for what categories of work. Having taken a decision, the Zonal/ Project CE will inform
the Contractor of the class and categories for which he proposes to enlist him. He will also
call upon the Contractor to deposit the standing security appropriate to that class and to
execute the Standing Security Bond, unless the contractor elects to deposit security for
each work he secures.
(ii) On receipt of the security and t.'le bond, Zonal/Project CE will forward these alongwith
contractor's application together with all supporting documents to the CE Command for
safe custody and allotting an index number and issue of enlistment letter to the
Contractor.
(iii) On receipt of the documents, the CE Command shall ensure that Index Number is
allotted and enlistment letter issued as early as possible but in no case later than TWO
months from the date of receipt of documents in his office. All actions in such cases should
be dealt with expeditiously.
(iv) The Command CE will complete the bond by making endorsement at the bottom of
the last page as stated in para 1.8 (b) above. Thereafter the CE Command will issue a
letter of enlistment to the Contractor concerned, under intimation to the E-in-C, CEs of
other Commands and all Zonal/Project CEs, CsWE, GEs and Independent AGEs in his
Command. This letter will, inter-alia, indicate the Index number allotted to the Contractor
in the Command.
It is hereby clarified that while, no doubt, the competent authority for enlisting Contractors in
Classes 'Pl. to 'D' is the Zonal CE, the Command CE may at his discretion scrutinise the enlistment
papers forwarded by Zonal CEs and satisfy himself about the correctness and eligibility of
enlistment, before allotting Index Number etc. Command CEs are advised that such checks to be
carried out by them should be institutionalised. It need hardly be emphasised that delays should not
occur in finalising enlistments, by entering into protracted correspondence with the Zonal CEs.
Note : (i) The documents pertaining to securities in respect of enlistment in 'S' and l\' to 'D' Classes will be forwarded by
Chief Engineer Command to the PCDNCDA concerned for safe custody and periodical drawal of interest and payment
thereof to the Contractor.
(ii) Wherever standing security deposit is required to be released in respect of contractor of'S' and l\' to 'D' Classes, necessary
action to obtain "Clearance" from all concerned and to release it shall be taken by the CE Command.
(iii) From the above, it will be observed that authority on whose register Contractors of'S', l\' to 'D' Classes will be deemed to
be borne shall be the CE Command.
(d) 'E' Class : (i) Application for enlistment as an approved Contractor in 'E' Class is to be
submitted by the contractor to the concerned CWE/CE (where there is no CWE Office)
who will decide as to whether the applicant is to be enlisted and if so for what categories
of work.
(ii) Having taken a decision, the CWE/CE will take appropriate action to intimate the
contractor of his decision and to obtain Standing Security Deposit and Standing Security
Bond as described in para 1.8 (b) above. After completing these formalities, he will allot
an Index number and issue enlistment letter to the Contractor under intimation to
·---- ---~~-
Command CE, Zonal/Project CE, CsWE in the Command, GEs and Independent AGEs in
his Area.
(iii) Documents pertaining to security in respect of enlistment of contractors of Class 'E'
will be forwarded by the CWE/CE to the PCDA/CDA concerned for safe custody and
periodical drawal of interest and payment thereof to the contractor.
(e) Specimen copy of enlistment letter to be issued by the registering authority is given at
Appendix 1.5
_!.9 E!!listmentin AdjoilllngQ~~~~
Contractors of following classes who are enlisted and have lodged Standing Security Deposit
and executed Standing Security Bond in one command (i.e., the Contractor's parent command) can
get themselves enlisted without lodging fresh Standing Security Deposit and Standing Security
Bond in:
Any Command or Command(s) For'S' Class Contractors
Any TWO Additional Command(s) For 'Pl. Class Contractors
Any ONE Additional Command For 'B' to 'D' Class Contractors
For this purpose the interested Contractors may forward their application for enlistment to the
CE of the new command through CE of their parent Command, who will give his recommendations
in this regard which will be accepted by the other command CE without further scrutiny.
_qo Facility for working foroiliel'se.rvi~~s0~t~~~-,.~z

The Contractors of 'E' to 'S' Class registered with any one MES formation providing services to
either Army or Navy or Air Force or Ordnance factories or R&D, and who have deposited Standing
Security Deposit and executed Standing Security Bond will be allowed to execute work in respect of
GEs working for other services also without depositing separate security deposit provided the works
pertaining to other services are located at same station (i.e., within the same municipal
corporation/cantonment limit) at which GEs/AGEs of his enlisting authority are located and also
provided that such works come under the jurisdiction of the same PCDA/CDA to which the enlisting
authority has furnished Standing Security Deposit and Standing Security Bond for safe custody.
1.11 Transfer of Enlistment

(a) If any MES formation is disbanded/reorganised, the contractors enlisted with that
formation may get their enlistment transferred to any one other formation at their
willingness. In such cases the contractor will have to submit fresh Standing Security Bond.
They will also have to submit fresh Standing Security if PCDA/CDA also changes and his
old standing security will be refunded.
(b) If any new MES formation is raised, the enlisted contractors, who are willing to work in
area of new formation, may get their enlistment transferred to new formation and will
have to submit fresh Standing Security Bond. They will also have to submit fresh Standing
Security if PCDA/CDA also changes and his old Standing Security will be refunded. After
enlistment in new formation, their enlistment with old formation will cease to exist.
-- T
PART~:PRE-CONTRACTSTAGE 17
(c) There is no requirement of lodging separate Individual Security Deposit for running
contracts, on account of reorganization of MES formations.
1.12 Provisiona1Enlistmenl1l1 tq~ji~~~~
(a) Para 419 of the Regulations for the MES-1968 states that tenders will normally be issued
to contractors borne on the approved list of the MES.
(b) Due to dearth of contractors in some areas and with a view to attracting more contractors
to MES, advertisements for MES tenders mention that Contractors not borne on the MES
list may also apply. On receipt of applications from such Contractors they are asked to
submit particulars with regard to their financial and technical capabilities. Simultaneously,
action is also taken to obtain police verification.
(c) On the basis of the particulars submitted, tenders are then issued to such Contractors
whom the Accepting officer considers suitable for the work in question. Should the tender
of any un-enlisted Contractor happen to be the lowest and considered otherwise
acceptable, it should be ensured that the contractor is first provisionally enlisted after
pbtaining all documents required for enlistment in MES corresponding to value of work.
~tt J<· .• . ·..· ·... ·. .· i ..... ).
1.13 Upgrading of Contr~c~o-
Ca) Criteria for upgradation of Contractors shall be same as given in para 1.4 here-in-before.
(b) For upgrading from'S' Class to 'SS' Class, the Contractor will apply toE-in-C through CE
Command with whom he has been working~. · ~- ·
(c) For upgrading from 'N. Class to 'S' Class, the Contractor will apply to the CE Command
through the Zonal/ Project CE with whom he has been working.
(d) (i) For upgrading to higher classes upto 'N. Class, a Contractor will normally apply to the
concerned Zonal/Project CE. Occasions may; however, arise when a Zonal/Project CE may
himself consider that a contractor should be upgraded to a higher class upto 'N. Class. In
both these cases, the concerned Zonal/Project CEs will ascertain the views of the other
Zonal/Project CEs in the Command, if necessary and after deciding the higher class in
which the contractor is to be placed, intimate his decision to the Command CE.
(ii) If any of the other Zonal/Project CE does not recommend upgrading, then the
Command CE should be informed of the views of the Zonal/Project CE who has not
recommended and the Command CE shall exclude Zonal/Project CEs in which
Contractor's reports are unsatisfactory; whilst issuing letter of upgrading of the
Contractors. Further action for intimating the Contractor of his upgrading and allotting
fresh Index number in the new class will be taken by the Command CE. All formalities for
obtaining from the Contractor, fresh Standing Security Bond and additional standing
security deposit shall be completed by Zonal/Project CE who. takes the decision on
upgrading of the Contractor and he shall forward necessary documents to CE Command
for further action as stated in para 1.8 above. 'I
(e) The upgradation of _contractors shall be subj_ect to provision~ contained in Note 7 and 8 I
under para 1)l.her!!ffiDefore:--; ' ~ CV.\J'i w
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1.14 Renewator En~$~~~~;

The enlistment of Contractors (in respect of Contractors of 'D' to 'SS' Class) is done for the
cyclic period of 5 years i.e. from 01 Jan 2006 to 31 Dec. 2010, 01 Jan 2011 to 31 Dec. 2015 and so
on. With a view to ensure completion of the process of renewal well before expiry of the validity
period, the action shall be taken by the registering authorities as indicated hereunder :
(a) Format for Renewal : The format for the application for renewal will be as indicated in
Appendix 1.6, alongwith the document stated therein. (No renewal of enlistment is
required for E class Contractors)
(b) Stages of Renewal : The process of renewal will be carried out in two stages as
indicated below :
First stage 'SS', 'S', 'Pl. Class
Second Stage 'B', 'C' and 'D' Class
(c) Time Schedule The following time schedule is laid down for the various activities
involved in renewal:
Sr. Activity First Stag<:>
no . {latest: b .)
(a) Dispatch of letters by registering authorities to 31st Jan of last year of cyclic period 28th Feb of last year of cyclic period
Contractors asking the application for renewal.
(b) Receipt of applications from Contractors 31 May of last year of cyclic period 30 June of last year of cyclic period
(c) Issue of renewal letters 30 Sep oflast year of cyclic period 31 Oct of last year of cyclic period
(d) Last date for appeal by the contractors against non- 31 Oct of last year of cyclic period 30 Nov of last year of cyclic period
renewal of enlistment.
(d) Criteria for Renewal: All Contractors who apply for renewal will be re-enlisted except
those falling under the following categories :
(i) Contractors whose contracts have been cancelled and unrealized recoveries exist thereto.
Cases, where cancellation of contract has been declared invalid/illegal in arbitration/
court of law; shall be decided after obtaining approval of E-in-C Branch.
(ii) Contractors in whose completed works during the last 5 years, serious defects were
noticed which are substantially attributed to the performance of Contractors, established
through Court of Inquiry or Technical Boards and disciplinary action is pending.
(iii) Contractors who could not secure any work in the last 5 years either in MES or any Govt.
Dept./ Public Sector Undertaking/ AWHO/ANWHO/ DGsNP; or in case they could not
secure any work, they have not participated in tendering in MES or have participated in
tendering but have not been in first three lowest.
(iv) Contractors who are habitual litigants.
(v) Contractors who are already removed on account of any default on their part, or banned,
but ban period is not yet over. i
I
(vi) Contractors not found fit for renewal for reasons other than (i) to (v) above, i.e., unethical o j
conduct. 1
I'
li
---~-----------------------------
Some of the criteria listed above and action to be taken are elaborated as under :
(1) Regarding criteria (i) above, action needs to be taken to obtain the explanation of the
Contractor allowing 4 weeks time to furnish replies and the issue decided taking into
account the replies of the Contractor.
(2) In respect of criteria (iv) above, a Contractor will be considered a habitual litigant if he
moves the court more than once ignoring arbitration clause and the court does not uphold
his view.
(3) Regarding criteria (vi) above, the Registering Authority will intimate the specific reasons
to the next higher Engineer Authority alongwith the Contractor's explanation and his
views on the same.
(e) Any case of unusual nature may be referred toE-in-C Branch latest by 31 July of last year of
cyclic period for advice/ clearance.
1.15 Standing.s!c~}!iffill
(a) The Standing Security-Bond form is given at Appendix 1.4. Such of the Contractors who
have executed this bond will not be required to deposit earnest money and security deposits for
individual works.
(b) This bond form covers past contracts also and if Contractors execute the bond on this form,
securities deposited by them in respect of contracts concluded prior to the day of execution of the
bond may be either refunded to them or appropriated against the Standing Security of the Bond.
(c) The Standing Security Bond must be stamped and may be registered in accordance with the
law of the State in which it is executed. Registration of bond however, is not compulsory, but it
should necessarily be stamped in accordance with the law of the State.
(d) Execution of Standing Security Bond will not be a condition of contract; it will be
independent of any or all contracts. However, in the case of Contractors who decide to execute
Standing Security Bond, the execution of the Bond will be a condition precedent to their enlistment.
(j!) In the case of Contractors, who execute Standing Security Bond, recovery of amount(s) due
from them will be regulated as per the terms of the Bond.
(f) One bond only will be required of any one Contractor irrespective of the trade group in
which he is registered.
(g) Contractors of 'SS' class will be required to execute bond withE-in-C. Contractors of 'S' & 'Pl
to 'D' Classes will be required to execute a bond with the Chief Engineer of each Command and in
the case of 'E' Class Contractors with CWE/CE concerned (where there is no CWE office).
(h) Should the value of the Bond be reduced by an enforceable claim, the Contractor will be
required to make up the deficiency (or meet the claim without touching the Bond) before he is
invited to tender for further works.
'
(j) The value of a bond will not limit the value of a claim bv Government under the conditions
of the contract.
(k) In case of Contractors of 'S' and 'N. to 'D' Classes, the jurisdiction to be indicated in the blank
space in the first sentence of para 2 of the bond shall be the Command in which the contractor is
enlisted and in para 3 of the bond, the CE Command will be entered as the Registering Officer.
----------------,------------1
20 PART~:PRE-CONTRACTSTAGE
1.16 Suspension, Down-grading,Refuo'lr~I. et~:!IJ{pt}"'titiqtQ'I

(a) (i) The Standardised Code for registration, demotion, removal, suspension of business and
banning of business etc. of building contractors, agreed to by Ministry of Defence is contained in
E-in-C's letter No. 36461/P-l/ES dated 24 Nov 76. Provision of removal/suspension due to
non-production of ITCC shall not be applicable, since this requirement has been dispensed with by
Government now. The decision regarding removal from registration/ suspension of
business/removal from approved list taken after the issue of show cause notice and consideration of
representation, if any, in reply thereto should be communicated to the firm concerned. (see
Appendix 1.7)
(ii) Copies of the orders of demotion/ suspension of business/ removal from the approved list,
with a memorandum of reasons, therefore, shall be sent by the concerned Department through its
administrative Ministry, to the other Ministries responsible for major construction work for such
action as they may deem necessary.
(iii) In respect of a contractor registered for various categories of works viz. building and road
works, furniture, electrical, sanitary and water supply order regarding removal would apply only to
one category unless otherwise specified.
(iv) The Ministries of Defence, Railway, Urban Development, Water Resources, Surface
Transport, Information and Broadcasting are the Ministries concerned with major construction
works.
(b) Suspension on account of minor technical offences on the part of a
Contractor : The Code provides that the competent authority may order suspension of business
with a Contractor for a specific period on account of comparatively minor technical offences.
(i) Under the existing rule in the MES, temporary suspensions for a period not exceeding one
year may be ordered by the registering authority as a result of minor technical offences on
the part of the Contractors, such as adoption of inferior material, workmanship and the
like. In such cases, though the next higher Engineer Authority will be kept informed, prior
permission of that authority is not necessary. This action of temporary suspension is
'
normally taken as a disciplinary measure with a view to enabling the Contractor to
improve his organisation etc. It, therefore, becomes necessary to inform the Contractor of
the reasons for the suspension.
(ii) Suspension for similar reasons for a period exceeding one year shall be ordered only with
the prior approval of the next higher Engineer Authority. In this case also the Contractor
shall be kept informed of the reasons.
(iii) Suspension for reasons other than technical lapses referred to above, such as suspected
malpractices or suspected disloyalty to the State, shall be done only with the prior
approval of theE-in-C because in such cases other CEs may have to be kept informed. No
communication is to be sent to the Contractor in such cases.
(c) Demotion to a Lower Class
(i) Demotion to lower class or removal shall be done with the prior approval of the next
higher Engineer Authority.
(ii) In the case of demotion to a lower class, the communication to the Contractor shall
normally be a bare intimation of the fact.
(d) Removal from Approved List :Action to remove a Contractor normally falls in the
undermentioned categories :
(i) Where a contracor himself desires his name to be removed;
(ii) For any of the reasons mentioned in the Standardised Code.
In the above two cases, the communication to the contractor shall be on the ljnes indicated in
Appendix 1. 7.
(e) In the cases mentioned above, where intimation to Contractors regarding suspension,
demotion, and removal is given on the lines indicated above, reference to a legal adviser with
regard to the form of communication to be adopted is not necessary. However, in special cases,
where doubt arises about the form of communication to be adopted, a reference should be made to
a legal adviser.
(f) Before a final decision to demote, remove or suspend business with a Contractor borne on
the list of approved Contractors is taken, the Registering Authority may at its discretion, with hold
issue of a tender in respect of any particular work to the Contractor whose case is under reference
with the next higher Engineer Authority.
(g) Action on Cancellation of Contract :
(i) As soon as a contract is cancelled on account of Contractor's default, the Accepting Officer
of the contract shall immediately bring the same to the knowledge of the registering
authority who shall examine the case for taking necessary action in terms of the
'Standardised Code' depending upon the merits of the case. Further his default shall
invariably be brought to the notice of other Zonal Chief Engineers by a separate letter
immediately. This action shall be, besides including the case in the quarterly work load
,return on Contractors with clear direction against further issue of tenders to the said
Contractor.
(ii) Once a contract with a Contractor has been cancelled due to his continued default in
completing the works, no tenders shall be issued by any MES formation either to the said
Contractor or to any of his partners individually or to any of his allied firms, till clearance
is obtained from E-in-C's Branch. In exceptional cases where the Command Chief Engineer
considers that action against the Contractor in terms of the Standardised Code (or
with-holding issue of further tenders) is not advisable, he should forward the case to
E-in-C's Branch with his detailed recommendations for a decision. However, pending
decision on such cases from E-in-C's Branch, issue of tenders to the firm shall stand
suspended.
(h) Suspension, down-grading and removal of contractors of 'S' Class shall, however be done
only with the prior concurrence of the E-in-C. Cases may arise wherein an 'S' class Contractor's
performance in one Command may be unsatisfactory, though he may be executing works quite
satisfactorily in other Commands. The following procedure should therefore be adopted with regard
to suspension/ downgrading/removal of a 'S' class contractor :
22 PART-I : PRE-CONTRACT STAGE
(i) If the performance of 'S' Class contractor is found to be unsatisfactory in the Command
where he is initially enlisted (i.e. parent Command) and suspension/ downgrading/
removal from the approved list is contemplated, the Command CE will initiate action
including issue of Show Cause Notice where necessary and seek the prior approval of
E-in-C subsequently. Simultaneously the Command CE will keep the other Command CEs,
in whose Commands the Contractor is also enlisted (based on the enlistment in his
Command), informed of the action proposed to be taken. On receipt of approval of the
E-in-C, the Command CE will take action to suspend/downgrade/remove the Contractor.
Disciplinary action taken by the Command CE, will equally apply to the other Commands.
(ii) If the performance of a 'S' Class Contractor is found to be unsatisfactory in a Command
other than the parent Command in which he was initially enlisted and
suspension/downgrading/removal from the approved Jist is contemplated, the Command
CE will initiate action including issue of Show Cause Notice where necessary and
subsequently seek concurrence/ comments from other Commands, where the contractor is
enlisted including the parent Command. There after the case will be referred to the E-in-C,
alongwith the views of other Command CEs for prior approval. E-in-C shall then convey
his decision to the Command CE, keeping the parent Command as well as other
Commands also informed of his decision.
(iii) Temporary suspension on account of minor technical offences, may be done by any CE
Command under whom the Contractor is enlisted. Such temporary suspensions will apply
only to the particular Command. However the other Command CEs as well E-in-C will be
kept informed.
(j) With regard to Contractor of other classes namely 'Pl. to 'D' the following procedure will be
followed:
(i) If a Contractor's performance is found to be unsatisfactory in any Zone/Project and
suspension, downgrading, removal from the approved list is contemplated by the
Zonal!Project CE, he will inform other Zonal!Project CEs in the Command of the action he
proposes to take and asks for their concurrence/ comments thereon and in the meantime,
temporarily suspend the Contractor so far as his Zone/Project is concerned and will
intimate to all CsWE and GEs under him and Command CE. If all other Zone/Project CEs
agree or indicate no objection to the proposed action of the Zonal!Project CE concerned,
he will forward his proposal to the CE Command for his decision.
(ii) If, however, any Zonal!Project CE does not agree to the aforesaid action and considers the
Contractor to be suitable for work in his Zone/Project, no change will be made in the
registration of the Contractor in so far as that Zone/Project is concerned.
(iii) CE Command will inform the Contractor and all concerned of the decision indicating, if
necessary the Zone/Projects in which Contractor's enlistment remains unaffected.
1.17 Refund ofStM~I!IIIII
(a) The Standing Security deposited by a Contractor will be refunded to him either on
removal of his name from the approved list or on change of category from (a) to (b) of
Para 497 of MES Regulations on production of No Demand Certificate (IAFA-451) by the
Contractor.
'
l'
i''i ~,¥;;J-".::?6k:,;0/9j-;;- '·""'=""'~~
(b) The refund of Standing Security Deposit will always be subject to the provisions that there
are no dues to be recovered from the Contractor by the Government, the prescribed
defects liability period of contracts has expired and that the other conditions for the
release of the Security Deposit have been fulfilled (also see paras 512, 513 and 514 of
MES Regulation, 1968 including amendments thereto).
1.18 Procedure for Refund. of Standing Se~llittyij~~~~~~
1.18.1 The following procedure is to be followed for refund of standing security of contractors
enlisted in 'S' to 'D' class, who have deposited standing security in one Command only even though
they are parallel enlisted in more than one Command.
1.18.2 Action by Executive Authorities
(a) The Contractor will be required to apply to the Chief Engineer Command, with whom the
standing security is lodged, for release of the security deposit alongwith 'No Demand Certificate'. If
he does not send the 'No Demand Certificate' on IAFA-451 (which should cover all contracts held in
the entire area of his operations) alongwith his application or if the release is necessitated by the
contractor having been removed from the list, the Chief Engineer Command will write to him to
furnish a 'No Demand Certificate' on IAFA-451.
(b) The Chief Engineer Command will. wTite under advice to the PCDA, to all GEs and OsC
ESDs/EPs in his Command with a copy to CsWE to render to him (under advice to CsWE) a 'No
Claim Certificate' to the effect that :
(i) there are no claims outstanding against the contractor.
(ii) a period of 12 months has passed since the completion of the last contract executed by the
contractor.
(iii) any guarantee period in any particular contract executed by the contractor is over.
(iv) final bills in respect of all contracts have been paid. "'
(c) Simultaneously with the action at (a) and (b) above, the CE Command will call for 'No
Claim Certificate' in respect of the contractor from the CEs of the other Commands where contractor
is having parallel enlisted. A copy of this communication will also be endorsed to PCDNCDA of
these Commands. Orr receipt of this request the CEs of other Commands will take action similar to
that at para (b) above. On receipt of 'No Claim Certificate' from all the GEs in their Commands, the
CEs will forward 'No Claim Certificate' in terms of para (b) above, to the Chief Engineer initiating
the case.
(d) On receipt of the 'No Demand Certificate' on IAFA-451 from the Contractor and 'No Claim
Certificate' from other CEs Command and from the GEs of his own Command, the CE Command
initiating the case will send to his PCDA the contractor's 'No Demand Certificate' and a 'No Clair
Certificate' based on the certificates received from his GEs and other CEs. It will be his responsibili
to see that 'No Claim Certificate' has been rendered by all parties.
1.18.3 Actions in Offices of Principal Controllers of Defence Accounts
(a) The PCDA of the Command in which the security is lodged will, on rece1pt of intimation
from CE Command (vide para 1.18.2 (b) above) calls for 'No Claim Certificate' from
AAOs/RAOs/IAOs etc. of his own Command and also from other PCDNCDA.
(b) The PCDNCDA of other Commands will also take similar action in respect of their areas on
receipt of the first communication on the subject (vide para 1.18.2 (c) and 1.18.3 (a) above).
(c) On receipt of (i) 'No Demand and No Claim Certificate' from the CE of his Command (ii)
'No Claim Certificates' from his MOs/RAOs/IAOs etc. (iii) 'No Claim Certificate from other
PCDNCDA, the PCDA of the Command where the Contractor has lodged the standing security will
authorise the CE of his Command to release security to the Contractor.
1.18.4 In the case of Contractor other than those stated in para 1.18.1, the procedure to be
followed is the same as at paras 1.18.2 and 1.18.3 above, except that the action to write to CEs of
other Commands is not necessary.
1.18.5 In case of Contractors of 'SS' Class who have deposited standing security to E-in-C's
Branch, the procedure to be followed is same as 1.18.2 and 1.18.3 above except that action is to be
taken byE-in-C's Branch who will write under advice to PCDNCDA and all Commands CEs.
1.18.6 In case of Contractors whose standing security is lodged with an authority other than the
E-in-C's Branch!CEs Command, the Officer with whom the standing. security is lodged shall follow,
mutatis mutandis, the procedure set out in para 1.18.2 to 1.18.4 above.
1.19 Rel;,.t~~~~~~
(a) In the trade of works contracts, "business relationship" is the most important factor. This is
corroborated with the provision to be made in the notice of tender as such a Contractor or
Corporation, wishing to be registered as an approved Contractor, should give particulars of all MES
registered Contractors with whom he/it has business relationship, irrespective of the fact whether
there is blood/close relationship or not. These would include all sister concerns of the Contractor or
Corporation also.
(b) In case of Contractors having blood/close relation with each other but not any business
relation whatsoever, particulars of such related contractors need not be given under serial no. 7 of
the enlistment form. In such cases, it would not be correct to deny issue of tenders to these
!lei contractors if they otherwise fulfill all requirement in selection for issue of tenders. However, while
deciding a tender.in favour of one party; it shall be ensured that fair competition has taken place.
IIIII (c) A Contractor/Corporation is termed to have "business relationship" with other
Contractor(s)/ Corporation(s) when one or more partner(s)/directors (s) are common.
1.20 Re-eDllstment or Proprietorship Firm witll Re\llsed Constitution)n Favour orteg3111~"1lr
Contractors in Case of Death ofthe Propnetlll'. <c~ .,\1
The Government has accorded sanctions to enlist one of the legal heir of a proprietorship firm
with revised constitution in case of death of the proprietor provided they meet the following
conditions :
(a) A newly constituted firm shall meet all the criteria as laid down for fresh enlistment of
Contractors.
(b) One of the partners (in case the newly re-constituted firm seeking re-enlistment as
partnership firm) or the legal heir seeking re:enlistment as a proprietorship firm was the
power of attorney holder of the original proprietorship firm and had executed work in the
original firm in such capacity to the satisfaction of the department.
11!1!!11!1!!~~~~~~~~~~~~~~~~~~~~---~-~~ -
(c) Only one firm will be enlisted as reconstituted firm of the original proprietary concern and
all the legal heirs other than those who are part of the reconstituted firm shall render
irrevocable under taking in the form of affidavit to the newly constituted firm in this
regard.
(d) Reconstituted firm shall take over all liabilities and assets of the original proprietary
concern. ~;=;;;:__
l.3l.:!::,~~~=~ bo •pproved by <hoY~~:;"

after proper scrutiny and verification that newly constituted firm meets the enlistment criteria and is
I·
considered capable of executing the works. Due inquiry shall be conducted about the bonafides of
newly inducted partners to avoid any proxy enlistment/transfer of enlistment.
1.22 Parentto~
The up-gradation, change in constitution, addition/ alteration in categories of enlistment and
disciplinary action on the contractor shall be approved only by the parent Command. The Command
where contractor is enjoying facility of parallel enlistment shall not have any power to alter the
particulars of the contractor than those approved/ amended by parent Command. In case where due
to reorganization, original folder of the contractor has been transferred to new Command, the
Command taking over the folder shall be considered as parent Command.
I
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~.~----------------------------~------ -
SECTION
EARNEST MONEY AND SECURITY DEPOSIT,

BANK GUARANTEE BOND FOR SECURITY DEPOSIT
_2.1_Eamest Money and IniiMduaJS~~~~ij\;

(a) The scale for earnest money to be lodged by Contractors borne on the MES approved list
but who have not executed the Standing Security Bond and unenlisted Contractors will be as
follows:
~l~:
N<>
. .
..•._.
. ..
. ..·
.•..
Estlmatedt,st:ofworl<s
._--
.
,·.- .· ;··. -•- ··-.•- L
- .
... -- '.·,·_ . .
. ..
. --_
- ... ... .. -. ; --
.- ·· llarnes~-·•-.-~oney
-- .• ._.- __ ·····- - - -.· •...-- <
.-
•·· ·.•.·.· >• < ·- ,_·'.·'\
···--·
(i) Upto Rs. 50 lakhs 2% of the amount subject to a minimum of Rs. 5000/ ~
(ii) Over Rs. 50 lakhs and upto Rs. 100 lakhs Rs. 1,00,000/· + 1.5% of amount exceeding Rs. 50 lakhs
(iii) Over Rs. 100 Jakhs and up to Rs. 500 lakhs Rs. 1,75,000/· + 1% of amount exceeding Rs. 100 lakhs
-
(iv) Over Rs. 500 lakhs and upto Rs. 1500 lakhs Rs. 5,75,000/- +0.50% of amount exceeding Rs. 500 lakhs
(v) Over Rs. 1500 lakhs Rs. 10,75,000/· +0.50% of amount exceeding Rs. 1500 lakhs subject
to maximum of Rs. 15,00,000/·
(b) Security Deposit : Security Deposit for individual works i.e., Individual Security Deposit
shall be 25% more than the amount of Earnest Money calculated as per the scale laid down in para
2.l(a) above (i.e., 1.25 times) based on the tendered cost subject to the provisions that in no case
the Individual Security Deposit shall exceed Rs. 18,75,000/-
(c) A Contractor, who is not enlisted with the MES/who is enlisted but has not executed the
Standing Security Bond, while submitting a tender shall be required to furnish Earnest Money
;,, alongwith the tender, as calculated in accordance with the scale given in para 2.1 (a) above only:
However, if the tender submitted by such a Contractor is accepted, he will be required to lodge with
11
; !1, the Principal Controller/Controller of Defence Accounts concerned, Security Deposit ("Individual
Security Deposit" for the specific work) calculated as per para 2.1 (b) above, within thirty days of ·
the receipt by the Contractor of notification of acceptance of his tender, failing which this sum shall
be recovered from the first RAR payment or from the first final bill. In the case of Term/Running
Contracts if the amount from the first final bill is not adequate, the remaining sum shall be
recovered from the subsequent bill(s) of the Contractor in full. However, in cases, where any
payment is made to the Contractor within thirty days of the receipt by him of notification of
acceptance of tender, the amount of Security Deposit shall be recovered from such payment. The 1
Earnest Money will be refunded to the Contractor after the Security Deposit is lodged by the , 1
1
Contractor or recovered from payments due to him. 1
In the alternative, Earnest Money deposited alongwith the tender may be converted into part of I
"Individual Security Deposit", wherever such a transaction is feasible, in which event, the 1
(26) 1
I
I
Contractor shall lodge the balance amount of "Individual Security Deposit", with the Principal
Controller or Controller of Defence Accounts concerned, within thirty days of receipt by him of
notification of acceptance of tender, failing which the balance sum will be recovered from the first
RAR payment or from the first final bill all as stipulated above.
(d) In the case of a Contractor who is enlisted and who has lodged the "Standing Security
Deposit" and executed a Standing Security Bond if the tendered cost of work exceeds the financial
limit of the Contractor (i.e. his class of enlistment) and the Accepting Officer decides to accept his
tender, such a Contractor (except as provided for in para 2.1 (e)), shall be required to lodge with the
Accepting Officer concerned ''AdditionalSe~urity Deposit", equal to the difference between the
"Individual Security Deposit" caicuil.teCf as~per para 2.1 (b) and the "Standing Security Deposit"
already lodged by him, within thirty days o£the receipfby him of notification of acceptance of his
tender, failing which this stun wlli be r~coV:ered in the same manner as stipulated in para 2.1 (c).
~.~-=--~·
(e) Specialist Firms, will also be required to deposit earnest money and individual security
deposit in the same manner as prescribed in para 2.1 (c).
(f) Any Contractor, borne on the approved list of contractors of any MES formation and who
has executed a Standing Security Bond, may be permitted to tender for works under any. other MES
formation, without furnishing Earnest Money alongwith his tender. If the tender submitted by such -
a Contractor is proposed to be accepted, the Contractor will be required to lodge with the Principal
Controller or Controller of Defence Accounts concerned, the amount of "Individual Security
Deposit", calculated as per para 2.1 (b) within 30 days of receipt by him of notification of
acceptance of his tender failing which this sum shall be recovered in same manner as stipulated in
para 2.1 (c) above.
(g) The "Tender Forwarding Letter" shall include the following points :
(aa) Tenders issued to Contractors who are not enlisted with the MES/who are
enlisted but have not executed the Standing Security Bond.
(i) The amount of "Earnest Money" for the work to be furnished along with the tender.
(ii) The amount of "Individual Security Deposit" for the work, in case the tender is accepted
indicate that the "Individual Security Deposit" would be the amount, calculated with
reference to the Tendered Cost, as per the scale laid down by the MES for calculation of
"Earnest Money", enhanced by 25% subject to a maximum of Rs. 18,75,000/-
(bb) Tenders issued to Contractors who are enlisted and who have lodged the
S.S.D., but of a lower class
The amount of ''Additi~!lal ~ecurity ])eposit" for the work in case the tender is accepted
indicate that the amount<6f"Kit<'Iii:ionafsecurfcy Deposit"; would be the difference between, the
"Individual Security Deposit" calculated with reference to the Tendered Cost, as per the scale laid
down by the MES for calculation of "Earnest Money'', enchanced by 25% (subject to a maximum of
Rs. 18,75,000/-) and the "Standing Security Deposit" lodged.
(h) Acceptable Forms of Security Deposit : Forms of securities which are acceptable as
security deposit are laid down in Para 505 of Regulations for the Military Engineer Services-1968.
These are as follows : ·
~~~~~~~~~~~~~~-~~~~~~-~~~~~~~~~-----------
(i) Govermtten·~ Securities At 5 per cent below market price or at
face value, which ever is less.
(ii) Deposit Receipts of the State Bank of India and its Subsidiaries and other At market price
Nationalised banks and Scheduled Banks.
(iii) Guarantee Bonds executed by the State Bank of India and other Nationalised At market price
Banks; Guarantee Bonds by a Scheduled Bank.
(iv) Post Office Cash Certificates. At market price
(v) Post Office Savings Bank Pass Book. At market price
(vi) National Savin~s Certificates At market price
(vii) National Defence Certificates At market price
Notes : (i) National Savings Certificate and National Defence Certificates mentioned in at Serial (vi) and (vii) above and
Post office Savings Bank Account at Serial (v) above when accepted by Central Govt, as security should be pledged in favour
of the President of India.
(ii) Securities other than those mentioned in Note (i) above shall be pledged in favour of the PCDA Command (in case of
individual securities)/Accepting Officers (in case of additional securities)
(j) Acceptable Forms of Earnest Money : Para 506 of the MES Regulations (1968) lays
down that earnest money may be deposited by a Contractor either in any of the forms prescribed for
security deposit or in the form of deposit at call receipt of a Scheduled Bank or where facilities exist,
it may be paid into a Government Treasury, a branch of the Reserve Bank of India or the State Bank
of India.
In view of this, tenders accompanied with earnest money in the form of National Savings
Certificates are not liable for rejection. Since the procedure for depositing and encashing National
Savings Certificates is rather cumbersome, it would be in the interest of the Contractor himself to
lodge earnest money in the form of treasury challan or deposit at call receipt of Scheduled Bank
because earnest money is generally required by the MES for a very short period. It is therefore,
desirable that while sending tender documents to Contractors they are advised in the forwarding
letter that as far as possible they should deposit earnest money in the form of Treasury Challan or
deposit at call receipt of a Scheduled Bank.
(k) In respect of "Piece Works" and "Specific Jobs" for which tenders are invited on IAFW-1780
and IAFW-1780-A, contractors will not be required to deposit any earnest money. Security Deposit
will, however, be recovered from them through the running payments.
(!) In exceptional cases, Chief Engineers are authorised to exempt specialist firms from
depositing earnest money and security deposit as laid down above. Such discretion will, however, be
exercised with the prior concurrence of the E-in-C.
2.2 Earnest Money Deposltandltsit~~~J
(a) Para 499 of MES Regulations-1968 stipulates that a Contractor who has not executed the
standing security bond will be required to deposit earnest money with each individual tender. The
scales of earnest money and individual security and acceptable forms thereof are given in para 2.1
above.
(b) Earnest money submitted by tenderers other than the lowest tenderer should be refunded
immediately.
--------------------· -------
-~-----~----------:-~-~~--
2.3 RecoveryoUndividuaJ·security Depo$it(A~~~~nat~!&uftij~,i~~

Individua]/Additional,securi!ZB!:!l?l?~it§h!/:[lbe recovered as stated in para 2.1 above. A copy of
letter, written to the Contractor-immediately after acceptance of tender bringing to his notice other
points should also be endorsed to the AAO so that in addition to the GE, the AAO may also watch
that the amount of additional security deposit is deducted from first RAR in case the Contractor fails
to deposit that sum within 30 days of receipt of acceptance letter.
2.4 Security DeposltJor Term C(111tt~~
Detailed instructions regarding Security Deposit for Term Contracts has been given in Section
10.
2.5 Periodical Review of Market Value O;fSe~~jj.ij~~;,
(a) Para 510 of MES Regulations-1968 deals with acceptance of Government Securities and
Periodical Review of their market value.
(b) Where Contractors furnish security deposit partly in GP Notes and partly in National
Savings/National Defence Certificates the periodical review of GP Notes will be conducted
exclusively with reference to the values of GP Notes. Any appreciation of value in National
Savings/National Defence Certificates at the time of periodical review will not be taken into
consideration for offsetting the additional amount that may be required to be deposited by
Contractors as a result of depreciation of the market value of GP Notes tendered by them as security.
2.6 GP Notes Accepted as Security-Examtnatlonnt;Eij((~~~e;~f!i{j~
(a) As per paragraph 100 of the Government Securities Manual (3rd Edition), if a Government
Officer who is required to accept GP Notes as security deposit has any reason to think that any of the
endorsements on a GP Notes is irregular, or if he is not satisfied as to the title of the person
presenting the same, he should refuse to accept the GP Notes and instruct the presentor first to get
the notes renewed by the Public Debt Office.
(b) If a Government Officer desires verification of endorsements on the GP Notes by Public
Debt Office he should, as far, as possible, arrange for the notes to be lodged at the counter of the
Public Debt Office for necessary examination. In case where this is not possible, the Contractor will
be required to have the notes renewed by the Public Debt Office as per (a) above. Where, however,
the Contractor expressly authorises the Officer concerned to send the notes for examination to the
Public Debt Office at his risk and cost, the officer may accede to such request. The party should
clearly be informed that, if the securities are lost in postal transit, they will have to follow the usual
Lost Notes procedure which would not be waived. In such cases the Notes should invariably be sent
to the Public Debt office by registered post and insured for a sum of Rs 100/-.
2.7 Treasury Savings Deposit Certificates Transferred bY
•, ',',, .- -·.o.:-
Wai of)Pitilg~ Df'Se~Ufiij',:.
.,. ____._-_-_ ·:.-.---<:-·_·-_:·--_-- ... <</><<,.<:·<-:- -~>.:;->_·::::.->
Acceptance by Government Departments

(a) Under Rule 7 (3A) (d) of Public Debt Rules, no transfer of a Deposit Certificate shall take
effect until it is registered by the Public Debt Office and fresh certificate issued in favour of the
transferee. It is necessary that Government Officers accepting Treasury Savings Deposit Certificates
as security or pledge, should get a formal transfer deed in respect thereof completed and secure a
I
30 PART-I: PRE;_CONTRACT STAGE
fresh certificate from Public Debt Office in their own favour before the acceptance of certificate as
pledge; otherwise a dishonest pledger can render the security worthless in Government's hands by
reporting the Certificate as lost and obtaining a duplicate thereof on swearing an affidavit.
(b) So far as long-term deposits are concerned, the Government Officers would, as a matter of
course, have the Deposit Certificate transferred and registered in their names; but in case of short
term deposits of a year or so, they may be inclined to accept them without getting a transfer-deed
completed or without getting the transfer-deed registered at the Public Debt Office.
2.8 Pledging/Releasing ·or Postal Savingscertiticat~$!W~,pcjiii2Qfftci1~~~~~'Jfl'fiJIIi
In accordance with Government of India, Min. of Law notification No G.S.R. 1161 dated 1st
Dec 1958, Gazetted Officers of the Central Government who, for performance of their duties, are
required to accept and release securities, are duly authorised under Article 299 (i) of the
Constitution of India to accept pledge of the Postal Savings Certificates and Post Office Savings Bank
Accounts as security and release them from the pledge on behalf of the President of India. The
Government Officer concerned can, therefore, certify to the postal authorities that he is duly
authorised to execute such instruments or deeds on behalf of the President of India.
2.9 National Plan Savings Certificates .and. Tl'e1ali1llrYiSII
involved in Acceptance of Pledges Wbere Nctmilmation,s lJ.,atter(DetiJ~Itel
Certificates
As per Public Debt Act and Government Savings Certificates Act, where a nomination made
purports to confer on any person the right to receive payment due on a Government Security, on the
death of the holder of the security, he becomes entitled to the security and to the payment thereon
to the exclusion of all other persons. Where these certificates are accepted by way of pledge or
security and if after pledge of these certificates, the pledger dies, the pledge will be faced with a
difficulty in the matter of release of the certificates. In view of the provisions of the above Acts, the
certificates will be required to be released to the nominee only. To avoid any unnecessary hardship
to the registered nominee or the pledgee, it would be desirable that before these certificates are
accepted as pledge, the pledges may adopt the following precautions :
(a) The certificate should be scrutinised to see that it bears no brand to the effect that a
nomination in respect thereof has been registered in the issuing Public Debt Office;
(b) The Pledger may be required to give a declaration as to whether or not the certificate is
subject to a nomination. If so, he should also state the name(s) of the nominee(s) to
facilitate delivery in the event of pledger dying before the termination of pledge; and
(c) Before actually transferring the certificate to person other than the pledger, the pledger
may check up with the concerned Public Debt Office or Post Office as to the fact of
nomination.
At the request of a contractor, his security deposit or any portion thereof which has become due
for refund as per rules, may be appropriated in whole or in part towards the security deposit for
another contract that has just been or is about to be entered into with the contractor. (Para 517 of
MES Regs-1968)
!
I
~
..'I'•,,.·
2.11 Procedure tor Refund of Securtf.ie~ for!!ilii~\t~o~~~~~~

2.11.1 When the security is lodged for a particular contract, the following procedure is to be
followed:
(a) The Contractor applies to the Accepting Officer with a 'No Demand Certificate' on
IAFA-451 for release of security.
(b) Where CE is the Accepting Officer he writes (under advice to the PCDA) to the GE
concerned with a copy to the CWE to render a 'No Claim Certificate' to the effect that :
(i) there are no claims outstanding against the contractor.
(ii) the defects liability period is over.
(iii) the final bill has been paid.
(c) PCDA on intimation from the CE will call 'No Claim Certificate' from AAO/RAO/LAO etc.
(d) The CE writes to the PCDA with the contractor's 'No Demand Certificate' and the GE's 'No
Claim Certificate' to authorise GE to release the security.
(e) The PCDA authorises release of the security after the receipt of certificates at (d) above
and also the 'No Claim certificate' from AAO!RAO etc.
2.11.2 When the Accepting Officer is other than the CE the procedure laid down in para 2.11.]
above will be followed with necessary modifications.
2.12 Refund of Security Deposit when Contractor's Claim Again$t Goye~ei:J~i~.$~~~~0~ ;
2.12.1 As long as there are no outstanding dues from the Contractor to the Government, the
Security Deposit of the Contractor may be refunded to him on production of a No Demand
Certificate irrespective of the fact that the No Demand Certificate is rendered without prejudice to
any of his sub-judice claims.
2.12.2 It is not necessary to deduct the cost of the suit from the security deposit. In case the suit
is dismissed with cost, necessary action may be taken to realise the cost.
2.13 Provisions in MES Regulations (l968}etc~
The following Paras in the MES Regulations deal with the following :
{a) Para 508-Issue of receipt for deduction of Security Deposit from contractor's bills.
(b) Para 509-Custody of Security Deposit documents.
(c) Para 518-Procedure for refund of Security.
(d) Para 515 and 516-Refund of portion of Security Deposit.
(e) Para 585-Maintenance of Register of Securities (IAFW-2286)
(f) Para 586-Filling of acknowledgement of depositors and certificate on the Register.
~.14 R~_~eas~__oj Additional Securi!Y Dep_~sit_in two Stages
The additional security deposit referred to in para 2 of Condition 22 of IAFW-2249 may be
refunded to the contractor by the GE in two stages, viz 50% of the additional security on payment of
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the undisputed portion of the Final Bill provided there are no claims outstanding against the
Contractor and the balance SO% after expiry of the Defects Liability Period (vide Condition 46
IAFW-2249) provided the Contractor shall first have rendered a No Demand Certificate (IAFA-451).
2.15 Acceptance!!_to~f~~~~~~~.!!ID~~~
2.15.1 Bank Guarantee Bond in lieu of Security Deposit is applicable to the following cases :
(a) When a Contractor has not furnished standing security and is to deposit security for each
individual work.
(b) Where a Contractor borne on the approved list is awarded a work, the value of work in
excess of his tendering limit and consequently he is required to deposit additional security.
2.15.2 The forms of Bank Guarantee Bonds to be executed by the Scheduled banks are at
Appendices 2.1 and 2.2 respectively. The Bank Guarantee form at Appendix 2.1 will be used in
case of approved scheduled banks. The Bond form at Appendix 2.2 will be used in the case of
unapproved Scheduled Banks.
2.15.3 The Bank guarantee may be for part of Security amount and the balance i.e. the
difference between the full amount of the security and Bank Guarantee may be in shape of other
form of securities.
2.15.4 The Bank Guarantee may be furnished by Contractor at any stage and accepted by the
department. The amount lodged in any other form of security shall be released on acceptance of the
Bank Guarantee Bond.
2.15.5 One or more Bank Guarantees may be furnished by Contractor to cover the amount of
security in part or in full.
2.15.6 In accordance with the General Conditions of Contracts IAFW-2249 and IAFW-1815Z,
security deposit is refundable to a Contractor after the expiry of the defects liability period provided
the final bill has been paid and the contractor has rendered a No Demand Certificate. The date in
para 3 in blank space of Bond form shall be filled in as decided by the Accepting Officer (while
accepting the bond), keeping in view the magnitude and nature of work and the time likely to be
taken in finalisation and payment of the bill and the defects liability period.
2.15.7 In case where at a later stage it is considered, on account of delay in completion of work,
delay in payment in final bill, that the validity date stipulated in the bank guarantee should be
extended, the concerned Contractor and the bank shall be desired to have the validity date extended
before the date expires. The standard format for getting extension of Bank Guarantee is given at
Appendix 2.3. If the Contractor fails to do so, the bank guarantee shall be encashed before its date
of expiry. Standard format for notice for encashment of Bank Guarantee is at Appendix 2.4
2.15.8 PCDNCDA concerned shall certify that the terms and conditions of the contract have
been fulfilled and properly carried out before discharging the Guarantee Bond. To enable the
PCDNCDA to render the certificate the following procedure shall be adopted :
(a) In case of CE/CWE's contracts the GE shall alongwith the 'No Claim Certificate' render the
following certificate to the Accepting Officer of the contract :
"Certified that the terms and conditions of Contract Agreement No .................. have been
fully and properly carried out by Shri!S' Shri!M/s".
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The certificate rendered by GE shall be countersigned by the Accepting Officer or.by an
Officer authorised by him to do so on his behalf and he will forward one copy of it to the
PCDNCDA alongwith the 'No Claim Certificate'.
(b) In case of contracts accepted by GE the certificate shall be rendered by the GE to the
PCDNCDA.
2.15.9 In case of Nationalised Banks, the following modifications shall be made :
(a) The word 'Limited' is to be omitted.
(b) Similarly the word 'The' occuring in the names of the existing banks should also be
omitted e.g. for "The Central Bank of India Limited" the title shall be "Central Bank of
India".
2.15.10 The blank space in para 3, "................ Office/Deptt" of the Bond forms (Appx 2.1 &
2.2) shall be filled to indicate the PCDNCDA concerned who will also accept the Guarantee on
behalf of the President of India.
2.15.11 In the Bond form at Appendix 2.2 the date in para 3 in blank space "............... the
date referred" shall be the same as the date of completion filled in the blank space, in para 1 "and
ending on .............. the extended" of the Bond form.
2.15.12 No advice from Reserve Bank of India will be required to be obtained in case of Bank
Guarantees issued by Scheduled Banks.
2.15.13 The Guarantee should be drawn on a non-judicial stamp paper of appropriate value.
2.15.14 It should be ensured that the signatory of the Guarantee is competent to bind the
Guarantor Bank.
2.15.15 If guarantees by banks not operating in India are offered, these should be accepted only
after counter signature by a Scheduled Bank.
2.16 Procedure for acceptance of Bank GuaramtEle E1(1AI~!I)lnltel(
(a) Bank Guarantee Bonds will be sent by the Manager of the Banks under Registered Post to
the Accepting Officer of the contract under the covering letter on their Printed Letter
Head. Banks should also indicate that copy of the letter has been endorsed to their
superior office.
(b) A Guarantee Bond received as mentioned above may be accepted by the competent
authority if found otherwise in order. The office receiving the Bond from the Bank will
acknowledge the same to the Bank concerned and enclose a certificate or a photostat copy
of the Bond for their record. A copy of this letter alongwith a copy of the Bond will also be
endorsed to the superior office of the Bank as aforesaid for their information and record.
Both the above communications to the Banks shall be sent under Registered Post.
(c) The above instructions will also be applicable to extension of validity to Bank Guarantee
Bonds.
SECTION
ISSUE, RECEIPT AND ACCEPTANCE OF TENDERS
3.1 Gell~
3.1.1 The points to be kept in view in issue, receipt and acceptance of tender documents are
enumerated in the succeeding paragraphs.
3.1.2 Separate instructions regarding issue and acceptance of Tender for Specialised jobs are
given in Section 12. Separate instructions regarding procedure for entering into agreement for
specialised consultancy jobs are given in Section 11.
3.2Biari
3.3 Notices Invitmg Applications_fcl~tssl(~;~~~~ili~\
3.3.1 Notices inviting applications for issue of tenders should be published in newspapers and
Indian Trade Journal for all works costing Rs. 5 lakhs and over and also for works costing less than
Rs. 5 lakhs, whenever considered necessary by the Accepting Officer except with regard to works
which are of 'TOP SECRET' nature. In case of works of top secret nature the practice of
advertisement in the news paper will be dispensed with and all tenders will be issued to selected
eligible Contractors who are already on the approved list of MES and have got the capacity and
experience to carry the proposed work. Notice inviting applications for issue of tenders for works
costing between Rs. 5 lakhs and Rs. 20 lakhs may be advertised in local newspapers by direct press
advertisement and for works above Rs. 20 lakhs shall be advertised in newspapers through DAVP.
Format of NfT to be published in newspapers and Indian trade journal shall be as given in
Appendix 3.1. Estimated cost of work shall be at market rate.
3.3.2 Notices inviting applications for issue of tenders shall also be published in respect of all
works (irrespective of value) on MES website by opening the site www. mes. gov.in/zadmin.
3.3.3 Besides advertisement in press/Trade journal/website all notices of tenders (IAFW-2162)
should be got displayed on the notice boards of the offices mentioned below :
(a) Superintending Engineer and/or Executive Engineer of the CPWD and State PWD
stationed in and around the place of work/HQ of the formation inviting the tenders.
(b) Local Public Bodies like Municipality; Cantonment Boards.
(c) State Bank of India, Local and/or, branches nearest to the places of work/HQ of formation
inviting the tenders.
(d) Railway offices and post offices nearest to the place of work/HQ of the formation inviting
tenders.
(34)
(e) MES formations concerned and those around the place of work/HQ of the formation
inviting the tenders.
(f) Notice of Tender and Copy of material for advertisement should be sent to head office of
Builders Association of India, G-1/G-20 Commerce Centre, 7th Floor, J. Dodajee road,
Tardeo, Bombay-400034 and toMES Builders Association of India, 807 'Sahyog', 58 Nehru
Place, Delhi-110019 and to their local branch offices.
3.3.4 In case of works valued at Rs. 20 lakhs and over, the notice inviting tenders should also be
sent to all Command and Zonal Chief Engineers.
3.3.5 In order to give wider publicity to the notice inviting tenders, a copy of the material for
advertisement which is sent by CEs/CsWE to the Indian Trade Journal, is also endorsed to the Hony
Secretary of the Builders Association of India, G-1/G-20 Commerce Centre, 7th Floor, Tardeo,
Bombay-40034 and Head Office of MES Builders Association of India, 807 'Sahyog', 58 Nehru Place,
Delhi- 110019 to enable them to publish some of these in their Bulletin.
3.3.6 Estimated cost of work in the notice of tender shall be the net cost at market rates as
indicated in AE Part II of AA of tendered items with addition of percentage included at the end of
the AE to cover market variation and difference in mst of stores. At the time of issue of tender
documents, if the detailed cost at market rates is known and if it is found to differ very much from
the cost originally exhibited in the notice of tender, then, an amendment to notice of tender will be
issued to indicate the correct cost at par.
3.3.7 The approximate amount of security and earnest money and the class/category of the
contractor to be indicated in para 8 of Notice of Tender, should be decided on the basis of
instructions given in Sections 1 & 2.
3.3.8 The following important points must be borne in mind while advertising for tenders :
(a) Advertisement as well as the tender documents should not contain information of a
classified nature. Only such details as are required by tenderers for deciding to apply for
tenders should be included in the advertisement and only such details as are required by
tenderers for submitting priced quotations should be included in the tender document, e.g;
work of the nature like magazines, ammunition depots, ops room etc. should be described
as technical buildings, and airfields/runways as pavements. Similarly details which are
required only at the time of execution of the work should not be included in the tender.
(b) The advertisement should be worded carefully so that details of a secret nature like the
strength of the unit, composition, role, location and the like are not disclosed.
(c) With regard to projects which are of TOP SECRET nature the practice of advertising them
in the newspaper will be dispensed with and tenders will be issued to selected eligible
contractors who are already on approved list of the MES and have got the capacity and
experience to carry out the proposed work. In such cases documents may be made
available to Audit for scrutiny when demanded by them.
3.4 Issue of Tender Documents oll.R~~~t;
Tender documents shall be issued to the Contractors on payment as given below :
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(a) Cost of tender (inclusive of sales tax, if any) based on notice of tender :
(i) Estimated cost of work as per SSR upto Rs. 5 lakhs Rs. 300/-
(ii) Estimated cost of work as per SSR beyond Rs. 5 lakhs but upto Rs. 50 lakhs. Rs. 500/-
(iii) Estimated cost of work as per SSR beyond Rs. 50 lakhs but upto Rs. 200 lakhs. Rs. 1000/-
(iv) Estimated cost of work as per SSR beyond Rs. 200 lakhs but upto Rs. 500 lakhs. Rs. 2000/-
(v) Estimated cost of work as per SSR beyond Rs. 500 lakhs. Rs. 3000/-
(b) The cost of tender forms/documents (in blank) shall be in the form of Demand Draft/Pay
Order/Banker's Cheque from any Natioualised Bank/Scheduled Bank in favour of
concerned Garrison Engineer/Asst. Garrison Engineer as notified by the Accepting Officer
of the Contract, which shall be attached to the application requesting issue of tender by
the contractor. The DD/Pay Order/Banker's Cheque shall be non-refundable if the
application for issue of tender forms is accepted and tender documents in blank are issued
to the Contractor after scrutiny and selection. However, it shall be returned to the
applicant by the Accepting Officer in case the tender form is not issued or the tender form
is withdrawn from the applicant due to any reason whatsoever after issuance of tender
form subject to returning the tender documents by the applicant. The Contractor shall
bear the cost of Bank Charges for procuring and encashing the same and he shall not have
any claim whatsoever on this account on Govt. The applicant contractor shall not become
automatically entitled for issue of tender by virtue of enclosing Demand Draft/Pay Order/
Banker's Cheque, along with the application and the Accepting Officer shall reserve the
right to deny issue of tender to any applicant Contractor. Suitable clauses shall accordingly
be inserted in the notice of tender and the press advertisement.
(c) Rejection of application resulting in non-sale of tender shall not be treated as loss to the
Government.
(d) The amount so collected by sale of tender shall be credited to the Miscell;meous Receipt.
(e) In case of selective tendering or where inadequate applications are received for issue of
tender, suitable Contractors may be selected by the Accepting officer from the approved
list of Contractors and they shall also be asked to forward Demand Draft/Pay
Order/Banker's Cheque towards the cost of tender. The tenders will be issued to such
Contractors only after receipt of DD/Pay Order/Banker's cheque.
(f) Where the nature of work is required to be kept "Secret" and publicity cannot be given,
tenders shall be issued to selected tenderers without any cost. However tenderers shall
return the tender documents either quoted or blank, failure to which recovery of Rs. 300/-
shall be made.
(g) RE-TENDER : In case of re-issue of tenders, no additional cost of tender documents is
required from the same contractor to whom the tender was issued in the earlier calls on
payment. Additional tenderers only i.e. new applicants and new Contractors selected by
the Accepting Officers shall pay the cost of tender documents in case of re-issue of tenders.
The advertisement at the stage of retendering should be issued on MES website and the
print out are to be kept on record.
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(h) Since tenders are now issued on payment, no amount shall be recovered from the
tenderers for non return of Blank quoted tenders.
G) If application accompanied by bank draft is received by post, the details of the draft shall
be entered in "Register of Bank Drafts" and shall be signed by the officer authorised to sign
the tender documents. This register shall be put up to the Accepting Officer while deciding
the issue of the tender to the Contractor and/ or at the time of returning the Bank draft in
case of non-selection of Contractor for issue of tender. Since the contractors are expected
to send their applications together with demand draft by registered post being financial
instrument, separate acknowledgement may not be required. However, if the Contractors
want separate ack.11owledgement, they may be advised to attach a self addressed &
stamped post card which shall be signed as acknowledgement by the officer authorised to
sign the tender document and returned to addressee instructions to Contractors forming
part of tender shall be suitably amended.
(k) If application together with Bank draft is received "By Hand" from the Contractor, an
acknowledgement towards receipt of bank draft shall be signed and handed over to the
Contractor without insisting for post card. Details of Bank draft shall however be entered
in 'Register of Bank Drafts' and procedure as brought out in para 2 G) hereinbefore shall
be followed strictly.
(!) Return of bank draft to the contractor in case of non-selection for issue of tender shall be
done by registered post with Acknowledgement Due.
(m) Format of "Register of Bank Drafts" shall generally be as given in Appendix 3.2.
However, Chief Engineer Command may further modify it for their respective CEs Zone
depending upon the circumstances.
3.5 Selection ot Ooll.tr~ct~'
3.5.1 All applications received from Contractors for issue of tenders shall be carefully recorded
on the file and page/folio numbered and shall be kept in safe custody.
3.5.2 Selection of contractors through tender selection committee :
3.5.2.1 Selection and short-listing of Contractors for issue of tenders for all high value works
(costing more than Rs. 25 crores at current market rates), consultancy (costing more than Rs. 50
lakhs at current market rates) and specialist works (costing more than Rs. 2 crores at current
market rates) e.g. runway and pavements, structural steel works, marine and harbour works, high
tension, distribution systems, central air-conditioning works, sewage and water treatment works,
hospital services, electrically operated cranes of large capacity, etc. shall be done by constituting a
"Tender Selection Committee". The composition of the Committee shall be as under :
(a) Principal Director/ACE (Plg~s) of Zone (Chairman)/ Senior most Director in the Zone
I (Chairman). ·
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(b) Director (Contracts).
Ii (c) Director/SOl of the Zone (depending on the nature of works and availability of the
officer)
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(d) One officer of the rank of Director/SOl from outside the Zone (to be detailed by
Command Chief Engineer)
3.5.2.2 Decisions on late applications (received after finalisation of proceedings of "Tender
Selection Committee") shall be taken by the Accepting Officer himself without reconvening the
"Tender Selection Committee" to avoid delay in tendering action.
3.5.2.3 The basic data for the selection of Contractors shall be furnished by Director (Contracts)
of Zone as stipulated in Appendix 3.3. In the event of insufficient applications, Committee is
empowered to suggest suitable Contractors for issue of tenders.
3.5.2.4 Parameters for selection of Contractors for all high value and specialist works shall be as
detailed below :
(a) Financial Status : Classification, Liquidity status, etc.
(b) Technical Competence : Organisational set up, past experience and reputation of the
consultant/firm, architectural/structural design facilities.
(c) Resources : Equipment and T & P required for the specific task.
(d) Record of Service : Works completed, performance on on-going works, response to
defects rectification of completed works.
(e) Attitude : Finalisation of Bills/Star Rates and contractual disputes.
3.5.2.5 For consultancy projects, the Selection Committee will short-list the firms to facilitate
the Chief Engineer to issue tenders only to a few selected firms. While short-listing, the
conceptualistic capacity of the firms will also be considered in detail besides checking the
parameters given in Para 3.5.2.4 (a) to (e) above.
3.5.2.6 Selection made by the Committee would be recommendatory in nature. Cases where
Chief Engineer deviates from Committee's recommendations, specific reasons must be placed on
record for any future scrutiny and also submitted to Command Chief Engineer.
3.5.2.7 The members of Tender Selection Committee shall give an undertaking that none of
them has any personal interest in the Contractors participating in the tender process. Any member
having interest in any applicant Contractor should refrain from participating in the Tender Selection !
Committee. I'
3.5.3 Selection of Contractors without Tender Selection Committee : Selection of ·.I
Contractors in respect of works other than as stated in para 3.5.2.1 above shall be done as under :
3.5.3.1 Director (Contracts) in CE's office, DCWE/ACWE (Contracts) in CsWE office and AGE 1,
(Contracts)/JE (QS & C) in GE's office will complete the statement given in Appendix 3.3. J,
3.5.3.2 The Accepting Officer shall record his orders personally in Column 11 of the statement I
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with dated initials in respect of each entry. In case of non-issue of tender to any Contractor the i
reasons for non-issue will be recorded against the entry concerned. J
3.5.4 The completed statement together with all applications will be filed in a separate folder 'I
and kept in safe custody for future reference if need be. Accepting Officers may open a register as I
per statement given in Appendix 3.3 for issue of tenders to facilitate future reference if need be.
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3.5.5 The following instmctions shall be kept in view while deciding issue of tender :
3.5.5.1 All works costing more than Rs. 50 crores, Runway works costing more
than Rs. 30 crores and specialist E/M services costing more than Rs. 5 crores on
pre-qualification basis : For issue of tenders in respect of all works costing more than Rs. 50
crores, Runway works costing more than Rs. 30 crores and specialist E/M services like air
conditioning, lifts etc. costing more than Rs. 5 crores, tenderers shall be selected based on eligibility
criteria fixed in view of CVC guidelines as given below. For other prestigious buildings/structures
where pre-qualification criteria for issue of tender is considered desirable, prior approval of the
E-in-C's Branch shall be obtained. Eligibility criteria shall be clearly brought out in notice of
tender/press advertisement.
(i) Average Annual financial turnover during the last 3 years, ending 31st March of the
previous financial year, should be at least 30% of .the estimated cost.
(ii) Experience of having successfully completed similar works during last 7 years ending last
day of month previous to the one in which applications are invited should be either of the
following:
(a) Three similar completed works costing not less than the amount equal to 40% of the
estimated cost.
or
(b) Two similar completed works costing not less than the amount equal to 500/o of the
estimated cost.
or
(c) One similar completed work costing not less than the amount equal to 80% of the
estimated cost.
(iii) Definition of "similar work" should be clearly defined.
(iv) In addition to above, the criteria regarding satisfactory performance of works, personnel,
establishment, plant, equipment etc. may also be incorporated according to the requirement of the
Project.
Pre-qualification criteria shall be given in NIT, Indian Trade Journal and MES Website.
(B) For Store/Purchase Contracts
Pre-qualification/Post Qualification shall be based entirely upon the capability and resources of
prospective bidders to perform the particular contract satisfactorily, taking into account their (i)
experience and past performance on similar contracts for last 2 years (ii) capabilities with respect to
personal, equipment and manufacturing facilities (iii) financial standing as per balance sheet and
Profit & Loss Account of last 4 years. The quantity, delivery and value requirement shall be kept in
view, while fixing the PQ criteria. No bidder should be denied prequalification/post qualification for
:, reasons unrelated to its capability and resources to successfully perform the contract.
. Notes : (a) Cases for approval or Pre-qualification criteria be taken up with the E-in-C's Branch on(y in case of deviation
', from eve guidelines and not othelwise.
, (b) Average annual turnover 30% specified in eve guidelines is for three years period and where the period of completion is
' less than 3 years, the requirement of average turnover be proportionq.lly specified.
(c) For the purpose of value of completed works, the value of previously completed works be enhanced @ 5% per year to
bring them at par with present cost.
3.5.5.2 All works costing less than Rs. 50 crores, Runway works costing less than
30 crores and specialist E/M services costing less than Rs. 5 crores :
(a) Sufficient/Insufficient Applications for issue of tender : When 7 (seven) or more
eligible class applicant Contractors are available for issue of tender only then it will be considered
that sufficient applications are received for issue of tender. Otherwise the response to tendering
shall be treated as poor and case shall be dealt with as one where insufficient applications from
eligible class contractors are received for issue of tender.
(b) Issue of tender to applicant Contractors of one class below the eligible
class:
(i) When sufficient applications are not received from eligible class Contractors for issue of
tender, then tender will be issued to such applicant Contractors who are one class below the eligible
class provided their past performance is satisfactory and are considered capable of handling that
particular work. However tender for work costing more than twice the tendering limit of such
Contractor will not be issued without prior approval of next higher authority. In cases where even
afrer selecting the one class below applicant Contractors sufficient Contractors are not available for
issue of tender, the Accepting Officer will furnish a detailed report to the next higher authority in
addition to normal "Non issue Report'' along with his recommendations/proposal to infuse proper
competition and shall take further action as advised by next higher authority.
(ii) When sufficient applications are received from eligible class Contractors, the tender will
normally be issued to eligible class applicant Contractors only. However to infuse better competition
Accepting Officer may issue tender to applicant Contractors who are one class below the eligible
class also who have previously completed similar value work satisfactorily and are meeting the
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criteria of upgradation. The tender may also be issued to such applicant Contractors who are though j
one class below the eligible class and have completed two years in the present class of enlistment j
with good performance and are considered fit for upgradation except that the Contractor has not l
completed a single work of requisite value which would make him eligible to apply for upgradation,
provided the value of work is less than twice the tendering limit of such Contractor. l
(iii) In case of delegated works, the term next higher engineer authority shall be with reference
to authority delegating the work. The same interpretation is to be taken in other cases including all 1
other contractual matters such as extension of time case, D.O. enhancement cases etc.
Note :In case of remote/difficult areas notified as such by CEs Command, tender to applicant contractors one class below
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the eligible dass may be issued by Accepting Officer without seeking approval of next higher authority.
(c) Issue of tender to applicant Contractors who are two class below the eligible l
class : Tender to applicant Contractors who are two classes below the eligible class will not be
issued by any Accepting Officer except for remote/difficult areas notified as such by the CEs I'
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Command. In other cases if issue of any particular tender to applicant Contractors of two classes I
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below the eligible class is considered unavoidable, then tender will be issued only afrer prior written
approval of CE Zone concerned in case of tender of GEs & CsWE and CE Command in case of tender
of CE Zone/Project.
(d) Issue of tender to Un-enlisited Contractors : Tender to un-enlisted applicant
Contractors may be issued, even if sufficient applications are received from eligible enlisted
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Contractors, after obtaining approval of next higher Engineer Authority provided such un-enlisted
Contractors meet the enlistment criteria corresponding to value of work. Next Engineer Authority
while granting permission shall ensure that un-enlisted contractors are not loaded beyond their
financial capabilities (Normally twice the tendering limit of class, of which they meet the criteria for
enlistment)
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/ (e) Selection of Contractors for issue of tenders shall be carried out carefully keeping in view
that no Contractor is burdened with a.totalload of more than 4 to 5 times of upper tendering limit
and in case of insufficient applications 6 to 7 times of upper tendering limit. Part of work already
completed shall be excluded.
(f) Tenders in MES are issued based on class and categories of the Contractors in which they
are enlisted and after ensuring that there are no adverse remarks on performance/issue of tenders
to Contractors in work load returns or known from any other sources.
3.6 Rejection·ofApplic~~on(~tssil~i;llllll
3.6.1 The Accepting Officer has the discretion not to issue tenders to a Contractor in a
particular case such as :
(a) the Contractor is already overloaded.
(b) there are adverse remarks in work load returns circulated by appropriate authority or
known from any other sources.
3.6.2 The Accepting Officer shall record his decision in writing giving brief reasons for
non-issue of the tender at the time of issue of tender. These may be made available if the PCDNCDA
wants to know these in any particular case.
3.6.2.1 The reason for rejection of application for issue of tender is to be sent to next higher
engineer authority within a period of three days as per Appendix 3.4. The next higher authority
should examine the validity of the reason stated in the report and if the reasons are not convincing,
they should not hesitate to direct the concerned officer to issue tenders to deserving Contractors.
The names of tenderers to whom tenders are issued shall also be intimated to next higher authority.
In case of tenders issued on basis of tender selection committee, the complete proceedings
alongwith decision of the Accepting Officer for issue/non issue shall be furnished to next higher
engineer authority.
3.6.3 The names of tenderers to whom tender have been issued shall not be confidential and
shall also prominently be displayed on the notice boards.
3.6.4 The contractor not issued with the tender shall be intimated reasons for non-issue of
tender within 3 days of decision on contractor's application by Regd Post.
3.7 Issue of Tender to Central PubtlcS~~to~'E~~ifiififJiil
3.7.1 Before taking a decision to issue tender to CPSEs, their past performance should
invariably be kept in mind and those Enterprises who have had a background of unsatisfactory or
sub-standard work should not be issued tender documents. Reasons for rejecting their application
for issue of tender should, however be kept on record as is done in other cases.
3.7.2 Purchase Preference Policy : The Government has decided to extend the Purchase
Preference Policy for a period upto 31.3.2008 with certain modifications/conditions as given in
Appendix 3.15. The provisions relating to purchase preference should be specified in the Notice
Inviting Tenders (NIT) for Rs. 5 crore and above but not exceeding Rs. 100 crore.
3.8 Removal of Difficulties and Build u~otC'ori:tP~k~~
3.8.1 Every attempt should be made to attract suitable eligible renderers to quote for the work
and environment created to stimulate healthy competition amongst the renderers.
3.8.2 The Accepting Officers should discuss the probable problems and the difficulties faced by
the renderers so that renderers come forward to quote forMES works.
3.8.3 The tender documents issued to Contractors must be sent by Registered
Acknowledgement Due Post and should not be delivered by hand. However in respect of time bound
projects as sanctioned under para 37 and 38 of Defence Works Procedure, 2007 wherein specific
stipulation by Government for completion of facilities by the specific date and certain dispensations
accorded in administrative approval, the Accepting Officers in such cases only may consider
desirability of delivery of bulky drawings and amendments by hand, by a responsible officer and
Accepting Officer will record his orders in writing.
3.8.4 Sufficient time should be given to the renderers to work out their rates to enable them to
quote reasonable rates.
3.9 Period of Sublllt$'s~~tf:'~~-
3.9.t It is essential that time allowed to renderers should be adequate to enable them to
correctly calculate and check their tenders before submission. Hurried calculations on their part
may involve an element of approximation or an error on the safe side, which may not be in the
interest of the State. Allowing a short period to renderers for submitting their quotations may not
save time in the long run because the work may have to be put to retendering due to an
unreasonable quotation received at the first instance.
3.9.2 The following periods excluding the time of transit should normally be made available to
tenders for submission of tenders :
9, <GE
ci.nti:L'l{~ >
(a) Extensive External Service Tender 6 5 4
(b) Md. Accommodation 4@ 3@ 3@
(c) O.T.M. Accommodation 6@£ 5@£ 4@£
@ One more week for Tender with Extensive External Service

£ Tender covering complex/prestigious building may take two more weeks
3.9.3 In case of small jobs or where circumstances otherwise warrant or where retendering is
resorted to without addition of new competitors, a lesser period may be allowed but the aim should
be to make available a minimum period of 21 days for all contracts and 14 days for Item Rate
Contracts besides the period of transit. If, however, the work sanctioned is of the value of Rs.
60,000/- or less, the same may be ordered on Term Contract under condition 4 (A) (f) of General
Conditions of Contracts (IAFW-2249).
::
',-------------~---------:-
1
I
3.9.4 In urgent cases i.e. works sanctioned under para 35 of the Defence Works Procedure 2007
periods less than those mentioned above may be allowed to tenderers for submission of their
tenders but in that case circumstances necessitating adoption of such a course shall invariably be
placed on record by the Accepting Officer himself. In such cases, it must also be ensured that there
is no delay in scrutiny and acceptance of tenders and also the delay does not take place on the part
of the GE in issuing Works Order to the Contractor for the commencement of work.
3.9.5 It is important that tender documents should be drawn out carefully and checked before
issue so as to avoid extension of time for submission of tenders on account of amendments or
alterations to the tender documents. Drawings and tender documents should, before finalisation, be
forwarded to the GE and Engineer-in-Charge concerned for scrutiny to ensure that they are correct
and fit on the ground and suit local requirements and that there are no fundamental errors in
design.
3.9.6 Sufficient time should be allowed to the tenderer to study the amendments and allow for
these in their quotation in addition to the time required in dispatch/receipt of the amendments and
tender. It is, therefore, essential that when an amendment to the tender effects the quotation, date
of submission of tender is suitably extended.
3.9.7 As soon as it is apparent that some amendments to tender documents have to be issued, it
is important that this fact is brought to the notice of all tenderers immediately through a letter, a
telegram, or a fax if necessary, informing them that amendments are under issue and they should
withhold despatch of tender documents.
. ..... p~iJMj{;~~~~~~~
3.10 Recelpt and·O . . . ·. '.!1,!0,.•..• ' ..•.,, .•... ···"'
3.10.1 Instructions on receiving and opening of tenders are given in Appendix 3.5 and para
422 ofRMES.
3.10.2 It may be ensured that officers selected for opening and scheduling tenders are aware of
these instructions and rightly adhere to these.
3.10.3 All tenders, of whatever description will be opened immediately after the time stipulated
in the tender documents for their submission, in the presence of such tenderers as may wish to be
present. It should be borne in mind while fixing the time for opening of tenders that all registered
post would have come in and there should be a margin of not less than half an hour between the
receipt of registered post and opening of tenders. It shall be made clear at the time of opening of
tenders that rates/amounts quoted are subject to check.
3.11 Scrutiny of Tenctetiil~'fi#i-
3.11.1 Refer to Appendix 3.6 and paras 423 to 432 of RMES for scrutiny and acceptance of
tender.
3.11.2 Before a tender is accepted, a certificate on the following lines shall be obtained from
the GE:
"Certified that :
(a) site is available for all works and free from all encumbrances;
(b) arrangement exists for issue of water to Contractor at the points marked on the layout
plan or water is not available;
(c) arrangements have been made for issue of electric energy to the Contractor upto ......... .
KW at the point(s) marked on the layout plan or is not available.
(d) stores procurement action in respect of Schedule 'B' stores has progressed sufficiently and
enough stores will be available for issue to the Contractor on acceptance of contract.
(e) layout and plinth level of building(s) can be supplied to Contractor immediately on
acceptance of the tender.
(f) Tender documents have been thoroughly studied by the Engineer-in-Charge and is fully
conversant with the provisions of contract."
3.11.3 Market analysis : Market analysis shall be done based on rates of materials and
labour as received from the GE and/or based on independent market inquiry and shall be kept in
record prior to receipt of tenders. Guidelines for analysis of lump sum tenders based on SSR are
given in Appendix 3.7.
3.UA Freak rates : Rules for dealing freakrates are given in Appendix 3.8.
3.12 Tenders Submitted by Gon~aet~r8 lll)f~~~ijifiiJ~~~~;~I'ilfti[JIUI
(a) Para 499 of RMES 1968 and sub para 3 of para 6 of Notice of Tender (IAFW-2162) provide
that a Contractor who has not executed the Standing Security Bond but is issued tender(s) by the
Accepting Officer in pursuance of para 419 RMES, should deposit the full amount of security
worked out in accordance with Section 2 as earnest money with each tender. It is, therefore,
imperative that this requirement is highlighted in the forwarding letter enclosing tender documents
to Contractors, making it quite clear that the Contractors who have not executed the Standing
Security Bond fail to deposit the requisite earnest money alongwith their tender, will be treated as
non-bonafide and will not be considered for acceptance.
(b) In addition to the above, a separate letter should also be addressed by registered post to
such Contractors who have not executed the Standing Security Bond, making it quite dear to them
that if they fail to deposit the requisite earnest money alongwith their tender, their offer will be
treated as non-bonafide. It should also be brought out in the same letter that, in accordance with
sub-para 3 of para 6 of the Notice of Tender, the amount of earnest money is to be deposited in the
form of receipted treasury challan or a deposit prescribed for security deposit or in the form of
deposit at call receipt of a Scheduled Bank or where facilities exist, it may be paid into a
Government treasury, a branch of Reserve Bank of India or State Bank of India.
(c) If tenders are received without earnest money having been deposited, such tenders shall be
opened and recorded in the comparative statement of tenders alongwith others, but with
appropriate remarks indicating such tenders to be non-bonafide. Such tenders will not be
considered for acceptance. The Accepting Officer will then decide, on the merits of each case, as to
whether or not the tenders should be reinvited.
3.13 Late T~tlltiil~
3.13.1 (a) Late Tenders are those about which the Accepting Officer is satisfied that these were
despatched before the time fixed for their submission and should have normally reached in time but
were received after this time, though before the acceptance of a tender.
(b) An endorsement shall be made on the envelope of a late tender by the Administrative
Officer/Concerned Office Superintendent, who received the tender to the effect that the tender was
received late, giving the date and time of receipt of the tender. Late tenders shall be opened by the
Opening Officers or any two officers deputed by the Accepting Officer and shall be scheduled in a
separate register maintained for the purpose, in the same manner as laid down for tenders received
in time. The covers and the post office marks shall be properly preserved.
(c) Late Tenders shall on no account be considered for acceptance but may be taken into
consideration for deciding the desirability of retendering.
(d) Tender received after the time fixed for receipt of tenders and about which the Accepting
Officer is not satisfied that it was despatched in time so as to reach before the time fixed for receipt
of tenders, shall be returned to the tenderer unopened. All late tenders received after the acceptance
of a tender shall also be returned unopened.
(e) If a revised offer in a sealed or unsealed cover is placed by the tenderer in the tender box or
is received by post before, the time prescribed for opening the tenders had expired, the revised offer
in that case shall NOT be considered as 'late' or 'non-bonafide' and the Opening Officers shall take
the revised offer into consideration while scheduling the tenders and shall make a mention of this
letter in the Comparative Statement in front of his previous tender.
(f) Revision of original quotation by a tenderer received after the time fixed for opening the
tender should also be dealt with as late tender. The revised offer may be taken into account for the
purpose of deciding the desirability of re-tendering.
3.13.2 Suitable action against Contractors revising their rates without valid reason should also
be considered.
3.13.3 No cognizance will be taken of telegrams received from Contractors regarding their
telegraphic quotations. Unless the tender proper is received in time, it shall not be considered for
acceptance.
3.14 Aceeptaneeo'f~~t~~
3.14.1 Lapses and general principles to be followed in acceptance of tenders :
3.14.1.1 Major lapses in acceptance of tenders and violation of laid down procedure/
instructions are as under :
(a) Reduction in scope of work/tender after opening of tenders, so as to bring it within
available funds for acceptance of tender.
(b) Affecting major changes in scope of tendered work after opening of tenders.
(c) Negotiations with lowest tenderer, by referring items containing freak rates accounting for,
to the extent of more than 50% of tendered amount, and then accepting lowest tender
after obtaining marginal reduction.
(d) Obtaining voluntary reduction from lowest tenderer to bring the quotation within
available funds or to bring it to acceptable level to accept the tender.
(e) Acceptance of tender without properly analysing the lowest tender at market rate.
(f) Resorting to retendering without proper evaluation of quoted rates, resulting in to higher
quotation in the 2nd call.
PART-I : PRE-CONTRACT STAGE
3.14.1.2 It is the responsibility of the Accepting Officer to satisfy himself with regard to
reasonability of the rates quoted, before lowest tender is considered for acceptance. Therefore, he
must ensure that the rates quoted are competitive and reasonable. Quotations must be analysed
carefully before considering the lowest quotation for acceptance, by taking into account the market
rate of materials and labour and other relevant factors affecting the quotation. However, if tender
selected for acceptance after market analysis is found to be containing few freak rates, then these
rates shall be dealt with as per guidelines contained in Appendix 3.8.
3.14.1.3 As per procedure in vogue in MES, no negotiations, even with the lowest tenderer are
permissible. Only when the lowest tender after detailed analysis is found competitive, reasonable
and most acceptable as a whole, but is containing few freak rates, then under such circumstances
only the freakishly high rates should be referred to lowest tenderer in writing for reconsideration
and revision. If the lowest tenderer offers reduction, the same shall be accounted for in acceptance
and if lowest tenderer declines to reduce the rates, tender may be accepted with freak rates and
such rates including freakishly low rates shall be dealt with as per guidelines contained in
Appendix 3.8.
3.14.1.4 It must be clearly borne in mind that practice of negotiation even with the lowest
tenderer to obtain reduction in quoted rates to bring the quotation to acceptable level is a serious
violation of procedure. Such a quotation can neither be termed as competitive nor reasonable. In
case the rates quoted by lowest tenderer are considered unreasonable/high, the tender should be
reinvited, instead of obtaining reduction from lowest tenderer. Similarly practice of obtaining
voluntary reduction from lowest tenderer after opening of tenders just to bring it within available
funds/acceptable level, is an unethical practice and must cease forthwith. Contractors indulging in
practice of offering voluntary reduction after opening of tenders shall be liable for action as per para
3.25 hereinafter.
3.14.1.5 As regards affecting major changes in tendered scope of work, after opening of
tenders, though may be with the consent of lowest tenderer, is against the spirit of competitive
tendering because other renderers are not given equal opportunity to consider and quote for revised
scope of work. It may be possible to get lower rates if retendering would have been resorted to with
revised scope of work. Acceptance of such a tender with revised/changed scope of work can even be
termed as acceptance of single tender to that extent. Therefore whenever such an eventuality arises,
where change in scope of work comes to notice after opening of tenders, in all fairness such a tender
should be re-invited with revised scope of work. However, if the changes are of minor nature, the
same may be regularised through Deviation Order during execution of the work.
3.14.2 Form of acceptance letter shall be as given in Appendix 3.9. Simultaneously with the
issue of acceptance letter, a separate letter shall be issued to the contractor on the form given in
Appendix 3.10. Form of Amendment to contract (if required subsequently) is given in
Appendix 16.17
3.14.3 It will be ensured that the Accepting Officer is, conversant with the powers of acceptance
of tenders as laid down in Table 'B' of RMES 1968 and para 428, 440, and 441 thereof.
3.14.4 Normal method of contracting is by competitive tendering and only in special cases,
GE/CWEs/CEs are authorised to conclude contracts on a single tender basis. Separate instructions
have been given on this subject in para 3.22.
I'
~
1
i
ll
......................... --------------
~-_'·,
'1
..
3.14.5 It is the responsibility of the Accepting Officer to satisfy himself with regard to
reasonableness of the prices quoted whenever a tender is considered for acceptance. He must,
therefore, take adequate steps to stimulate competition. Quotations must be analysed carefully
before acceptance by taking into account market prices of materials, labour and other relevant
factors. However, if acceptance of a tender containing rates, which are considered high, cannot be
avoided, reasons for accepting it must be placed on record at the time of acceptance of tender.
Market analysis to verify the reasonableness of quoted tender based on current market rates for
material and labour should be worked out for each and every tender and market analysis should be
kept on record for future reference.
3.14.6 Accepting Officer must critically analyse tendered rates and satisfy himself about the
reasonability before acceptance. Market analysis to verify the reasonableness of quoted tender based
on current market rates for material and labour should be worked out for each and every tender and
should be correct and factual. The Accepting Officer may also get rates of speciali~ed E/M items
examined from ElM Officer posted in E4 section from reasonability/freakishly high/freakishly low
rates point of view. Market analysis should be kept on record for future reference. Apart from
comparing with the prevailing market variation, percentage on/below MES SSR, plinth area rates
based on tendered rates should be worked out taking into account difference in cost of Schedule 'B'
stores and compared with completion cost of similar building executed/being executed by other
agencies in the station.
3.14.7 Despatch of Acceptance Letter To avoid any legal complication, the Acceptance
Officer should be careful to ensure timely acceptance of tender including despatch of letter of
acceptance.
Copies of Acceptance letters shall also be endorsed to the following :
(a) Registering Authority of Contractor (RAC)
(b) Assistant Labour Commissioner (ALC)
(c) Labour Enforcement Officer (LEO)
(d) Regional Labour Commissioner Central (RLC Central)
(e) Officer-in-Charge, Employment Exchange of the area where work is situated.
3.15 BLANK
3.16 Re-tnvttation olTencie~i
3.16.1 Re-invitation of tenders is normally resorted to :
(a) When the lowest tender obtained is unreasonable; or
(b) When the lowest tender obtained exceeds the amount available under the Administtative
Approval and it is proposed to modify the design to bring down the cost.
(c) When lowest tender is revoked or revised upward or withdrawn for any reasons, there
shall be retendering in transparent and fair manner.
3.16.2 Re-tendering must not be resorted to as a matter of routine. Wherever a lowest tender
received is considered unreasonable or high, the reasons for high tender should be ascertained from
- --------~ ~
48 PART-I: PRE-CONTRACT STAGE
tenderer and fully examined before deciding to re-tender the work. Before re-tendering, it must be
further ensured that suitable modifications are made in the design and time requirement as
considered necessary and where possible tenders issued to additional Contractors to stimulate
competition.
3.16.3 All aspects of specifications, design and cost should be thoroughly considered at the time
of issue of Technical Sanction before inviting tenders. The technical sanction should be realistic and
based on proper cosring and not based on approximate Plinth Area rates. If the cost is found to be
on the higher side the design may be modified where necessary and architectural features reduced
to bring down the cost.
3.16.4 On receipt of tenders, if the amount of the lowest tender is found to be on the higher
side, there can be no justification for reducing standard specifications or elimination of authorised
items of work merely to bring down the tendered amount within administrative approval.
3.17 Tie bet\\feellt\\td~u'!Mi~st~iillfi
3.17.1 In case of a tie between the two lowest renderers, where the quotations are reasonable
and Contractors are of equal capability, it is up to the Accepting Officer to decide which one to
accept and in this, he will be guided by the past records of the Contractor.
3.17.2 If, however, the Accepting Officer thinks it is hard to choose between the two lowest
renderers (and only where he feels that either one or both the Contractors concerned when apprised
of the tie, would requote in competition a slightly reduced figure) he may send for the renderers and
after explaining to them that their tenders are on the same level, ask them to requote on the spot
confidentially. Care shall be exercised that the Contractors are NOT allowed to consult each other.
3.17.3 The revised quotations will be opened in presence of these contractors and the lower of
the two (provided of course it is not more than the previous tenders in tie) accepted immediately.
3.17.4 It shall be ensured that all necessary checks in connection with the tenders have been
completed prior to asking the two lowest renderers to requote.
3.17.5 Where this procedure is adopted, the fact shall be recorded on the Comparative
Statement of Tenders under the signatures of the Accepting Officer.
3.17 .6 As the above procedure might also lead to the two renderers either resiling from
competition or else quote higher tenders, this procedure shall be adopted only in exceptional cases
where the officer accepting the contract cannot really make up his mind to select one of the two
renderers, in tie, and provided only he is sure of their not enhancing their original tenders. Where
any doubt exists in this respect, Accepting Officer will be well advised to choose at his discretion,
of the two Contractors whose tenders are at the same level.
3.18 Acceptance of Tenders, Permission of next higher engu,.~~l' atftllqJ,it;vx<w~rt!J~~~i'~~~~
Quoted Valid Tender is received out of severalissued. ·~·•
---'-----
2 3~i~ c~s?'i.~.:~!;~.• r~~t~~~'~
In case only a resultant single quoted tender is received, the same shall only be accepted after
permission of next higher Engineer Authority and a report to the same shall be furnished to the
concerned CDNPCDA as per format given Appendix 3.12.
49
3.19 Award of Works to Coittractot~s 'v-lto M.v~cl~~~~.

Defence-Procedure to be
3.19.1 Civilian Officers & Junior Engineers of the MES and Service Officers & Junior Engineers
of the Corps of Engineers serving in MES should declare if any of their near relatives are working as
contractors in the MES or as Directors, Senior Executive or Employees with Corporations taking up
contracts. It shall be the responsibility of the officers concerned to notify the changes, if any, as and
when they occur. Such contractors or corporations should not be permitted to tender for works
which his near relative will deal or with which he may be connected. If on transfer from one place to
another an officer finds that his 'near relative' is concerned with any work which he may have to
deal, he should immediately report the matter to his next higher officer for deciding future course of
action.
3.19.2 Similarly every Contractor and Corporation wishing to be registered as an approved
Contractor should submit a list of those persons who are working with him/it in any capacity
(including themselves i.e., proprietor, partners, directors) and who are 'near relative' of any gazetted
civilian officer/commisioned officer employed in the MES or Corps of Engineers or Ministry of
Defence and Junior Engineers in MES. The Contractor/Corporation should also intimate names of
such persons if they are subsequently employed by him/it. The Contractor/ Corporation should also
be informed that he/it is not entitled to tender for any work which his 'near relative' will deal or
with which he may be connected in any way and that any breach of this condition may be
considered sufficient to debar him/it from registration or to remove him/it from an approved list.
Note : By the term 'near relative' is meant wife, husband, parents, children, brother, sister, brother/sister-in-law,
son/daughter-in-law, uncle, first cousin and father/mother-in-law.
3.20 Despatch of Contract Documents to.. Prtnclpalicmii~ii~~~~~~~~~-11111

~~.-.: '- , ,, - ' , ' - , 'o", , ., , "" •,, ' ' ,',_,_,,_ .,,.,_,-.,,_,;-'_, .,• ., ._.,. "•' ,' '".,'' ,,,._._.,, ... ,• .,,,,.,_--,,,._.,-.,~:._."/·'<.;',_"'•M•,.'ifi~-.~~«
Accouim
3.20.1 The following periods are laid down for despatch of original contract agreements to the
PCDNCDA concerned, reckoned from the date of acceptance of contract.
.·.• 1116n.t~ai.f:!9~ti-.-d:~
lOweeks
(b) CWE (i) 3 weeks in case of contracts for which time for (i) 4 weeks in case of contracts for which time for
completion is less than two months completion is less than 'two months
(ii) 4 weeks for other contracts (ii) 8 weeks for other contracts
(c) G.E. 4weeks 8 weeks
3.20,2 The periods laid down above are the maximum periods. The contract documents should
be sent to the PCDNCDA concerned soon after these are signed by the Contractor and to achieve
this, it is desirable that after intimating a suitable date to the Contractor to attend the office of
Accepting officer for signing the documents (a period of 10 to 15 days but not exceeding 15 days
may be given to the Contractor) the matter should be persis< tly pursued with him to finalisation.
So far as the Department is concerned, it should be ensured that the documents complete in all
respects are kept ready (including copies for distribution) and are distributed to all concerned
immediately after contractor's signatures/initials on the original.
3.20.3 To enable the PCsDNCsDA to preserve properly, it should be ensured that drawings,
copy of Administrative Approval and Technical Sanction are invariably forwarded alongwith
contract agreements neatly stitched. Where these are bulky these should be forwarded in separate
folders neatly stitched with Contract Agreement Number and year clearly endorsed on the cover of
the folder.
3.20.4 Safe Custody of Original Contract Documents : While forwarding original
contract documents from one office to other, it should be sent separately in a sealed envelope under
insured registered post. The acknowledgement receipt should be watched for and duly recorded.
Original agreement should not be combined alongwith other dak/documents while despatching the
same to other office.
3.21
There is no embargo on the contract documents being shown to users whenever required and
the provision of the contract explained to the users by the Engineers. However there is no
requirement of forwarding a copy of all contracts concluded to the users as a matter of routine.
3.22
(a) In pursuance of Para 432 RMES 1968, the Accepting Officer is required to report the
circumstances for entering into a Single Tender Contract upto his powers as laid down in Table 'B' to
his next higher Engineer Authority.
(b) The report shall be submitted to the next higher Engineer Authority with a copy to the
concerned PCDNCDA as per Appendix 3.13 as and when the contract is concluded.
(c) GE, CWE and CE shall exercise their powers to· conclude contracts on single tender in
consultation with PCDNCDA except where for reason .of urgency {to be recorded) it is not
considered to do so.
(d) The report on receipt by the next higher engineer authority shall be examined to establish
that the reasons for dispensing with cmnpetition are adequate and that the rates accepted are
reasonable.
(e) The E~in~C/DGW are authorised toconclude contract on aSingle Tender as per powers laid
down in Table B of RMES in consultation with Financial Adviser (Defence Services). The reason(s)
for dispensing with competition and method of determining the rates will be. placed on record in
writing at that time. Particulars as per Appendix 3.13 will also be furnished to E-in-C's Branch
when applying for E-in-C's priorapprovalfor concluding Single Tender Contract together with self
contained note stating the circumstances necessitating conclusion of Single Tender Contract and
details in support of rates at which it is proposed to conclude the contract.
The following informations/confirmations/documents shall be submitted from E-8-side:

. (a) Abstract in duplicate for the building/works for which market analysis is submitted.
(b)· Comparative Statement of Rates/lumpsum amounts.
(c) Confirmation that market rates for materials are those at which materials are being
actually procured by contractors on ongoing works or independently verified from
manufacturers or their authorised dealers whichever is less.
(d) Confirmation that market wages for labour are those actually being paid by contractors
presently on ongoing works verified from contractor's wage books and wage sheets and at
the time of disbursement.
(e) Confirm take off and pricing is counter checked w.r.t. tender provisions including drawings
by AE (QS & C)/Astt. Dir (C)/Dy. Dir (C)/Jt. Dir (C).
(f) CTC of tender documents duly amended.
(g) 32 Point proforma as per format given at Appendix 3.14.
(h) Market analysis of building/works including services.
G) Certificate under signature of CE that lowest tender is reasonable and retendering is not
likely to reduce the rates substantially.
Note: The 15 Point profonna as per para 3.23(g) above is to be further developed into standard 32 Point profonna. 32
point profonna shall only be submitted with the FC documents.
3.24 Acceptance of Tenderswltilellfoq~~~if~ltPo-11111111

Following procedure shall be followed for acceptance of tenders and placing Supply/Job Orders
at the time of transfer/retirement of Accepting Officer :
(a) No tender, Supply/Job Order shall be accepted/ placed by any executive i.e., CE/CWE/GE
(I)/ GElAGE (I) or their officiating incumbent during the period of last 20 days prior to
the move date indicated in posting order/date of retirement.
(b) In case the Officer is to move on relief, he shall not accept any tender/place supply/Job
order, 20 days prior to date of reporting by the new incumbent, till he relinquishes his
charge.
(c) In case the Officer is to move on relief but relief is either not posted or date of move of
relief is not indicated in the posting order, then he may accept tender/place supply/job
order with the prior written approval of next higher engineer authority till the date of
move of relief is decided. Once the date of move of relief is notified, then the time frame
given in (b) above shall be followed.
(d) In case the move date of Officer or his relief is extended due to any reason whatsoever, he
may accept tender/place supply/job order after obtaining prior written approval of next
Engineer Authority. However once the revised move date is fixed, he shall noi: accept any
tender/place any supply order/job order during the last 20 days as stipulatedin Para (a) &
(b) above.
(e) In case the Officer is to move out forthwith without relief, then he shall not accept any
tender/place any supply order/job order on receipt of posting order till he relinquishes his
charge.
(f) In case of tender for which FC case has already been initiated and concurrence of
competent financial authority is received any time ~Jefore handing over the charge to the
relieving officer, then the tender may be accepted.
(g) Tenders for works of urgent nature like works_ sanctioned under Para 35, 37 and 38 of
Defence Works Procedure 2007 and maintenance contracts, the period of which is expiring
'11------------ -- ------
during the period stated in sub para (a) above and the like, may be accepted with prior
permission of the next higher HQ i.e. CWE, CE Zone and CE Command. The complete
documents including justification for urgency shall be forwarded for scrutiny to the next
higher authority for according permission without any delay. The scrutiny by next higher
authority shall be done on priority and permission shall be given within 15 days if the
tender documents are found in order.
(h) CE Zone shall not delegate any work to CWE/GE for conclusion of contracts 03 months
prior to his move on posting/retirement.
G) Delegation of powers to CWE/GE for conclusion of contract will not be made in respect of
original & specialized works, except with prior approval of Command CE in exceptional
cases.
Powers vested in terms of Table 'B' of RMES in such officials who continue in a particular
executive appointment beyond three years, shall be exercised only with the written prior
concurrence of next higher engineer authority on case to basis with full justification.
3.25 Revocation/Upward Revision of offc~r/voluirlta:ryreii~Lctl~~n bJ~Lo,W"el~t~E!~i
of tenders
In the event of lowest tenderer revoking his offer or rev!Slng his rates upward/offering
voluntary reduction, after opening of tenders, the earnest money deposited by him shall be
forfeited. In case of MES enlisted contractors, the amount equal to the earnest money stipulated in
the Notice of tender, shall be notified to the tenderer for depositing the amount through MRO. Issue
of tender to such Contractors shall remain suspended till the aforesaid amount equal to ·the earnest
money is deposited in Government Treasury. In addition, such tenderer and his related firm shall not
be issued the tender in second call or subsequent calls. No other disciplinary/administrative action
shall be taken against such renderers. On revocation or upward revision of offer by lowest tenderer,
next lowest offer shall not be accepted, instead retendering shall be resorted to in transparent and
fair manner. Reduction offered by the tenderer on the freak high rates referred for review shall not
be treated as voluntary reduction.
lfu
~~---------~
SECTION
LEGAL REQUIREMENTS, TYPES

OFCONTRACTSANDCONTRACTFORMS
4.1Inttolliji\ll~
4.1.1 For getting work services jobs executed efficiently; economically and in the least possible
time, employing the agency of contracts has always proved to be the best course of action.
4.1.2 Various standard forms of contracts appropriate for the different kinds of work
requirements and situations have been evolved and are in use in the MES department. The choice of
the most suitable type of contract for the particular kind of work to be executed is of considerable
importance.
4.1.3 Contracts concluded in India are governed by the Indian Contract Act (1872).
4.2
(a) Every set of promises forming consideration for each other is an agreement.
(b) An agreement which is enforceable by law is a contract. That which is not enforceable by
law is said to be 'Void'. That which is enforceable by law at the option of one of the parties, but not at
the option of the other is 'Voidable'.
4.3 Legal Re
... ~t~ii~ltJ}
1
.•.>•>•<·•···
In any contract generally; as also in a building contract, the following requirements must be
satisfied :
(a) Parties : The agreement implies the existence of two or more parties. Such parties must
be competent i.e., not disqualified either by infancy or insanity or by other special qualification by
personal law. They must be of sound mind at least when the contract is made. (Sections 11 and 12
of the Contract Act). Otherwise the contract becomes un-enforceable.
Note-An Indian attains his majority at the age of 18 unless he is under the jurisdiction of the Court of Wards or if a
guardian of his property is appointed by any court, in which case he becomes major at the age of 21.
(b) Consideration : Consideration is a promise or a set of promises made by one party to
another and vice-versa. These promises form the consideration to each other mutually in an
agreement. In a legal contract it is necessary that there exist a consideration although it need not
necessarily be adequate to the promise. Total absence of consideration will render it un-enforceable.
Consideration must not be unlawful (Sec. 23 of the Contract Act).
(c) Other requirements : The other requirements to be fulfilled, are that the contract must
not be:
(i) in restraint of the marriage of any person other than a minor (Sec. 26 of the Contract
Act).
(53)
(ii) in restraint of trade (Sec. 27 of the Contract Act) e.g., A, a tailor was employed by Bon
the terms that during his employment and six months after its termination, A will not
work as a tailor within one km of B's shop. Here the restriction during employment is
enforceable but not after the termination of the employment.
(iii) in restraint of legal proceedings (Sec. 28 of the Contract Act) e.g., If an agreement
contains a provision that neither party shall have any right to have recourse to a court of
law in case of any disputes, such a provision is void though both parties had agreed.
(iv) of uncertain meaning (Sec. 29 of the Contract Act) e.g., A agrees to sell to B "a hundred
tonnes of oil" there is nothing whatever to show what kind of oil was intended. The
agreement is void due to uncertainty.
(v) by way of wager (Sec. 30 of the Contract Act) e.g., A agreed to sell his horse to B for Rs.
300/- if the horse should trot at a speed of 18 Km per hour but for one rupee if it failed
to do so. The horse failed to do so. B claimed the horse from A for one rupee. The
transaction is really a bet and hence void.
(vi) for an impossible act (Sec. 35, 36 and 56 of the Contract Act) e.g., A agrees to pay Rs.
1000/- if B will marry N.s daughter C. C was dead at the time of agreement. The
agreement is void.
(vii) involving a mistake of both parties on to the essential matters i.e., matter offact (Sec. 20
of the Contract Act), e.g., A agrees to buy from B a certain horse. It turns out that the
horse was dead at the time of the bargain, though neither party was aware of the fact,
the agreement is void.
(viii) entered into due to a mistake of both parties as to a foreign law (Sec 21 of the Contract
Act). Explanation : Mistake based on ignorance of any foreign law is treated a mistake
as to a matter of fact (refer Sec. 20 of Contract Act).
Note-In a building contract, items (iii) and (iv) above are important. Any provision in the contract that has the effect of
transgressing the jurisdiction of law is objectionable. For example a provision that a dispute will not be referred to
Court for settlement is illegal but a provision that the dispute shall be referred to arbitration for settlement is NOT
illegal as the later is legislated as a method of settling the disputes.
4.4 contractorsli~llllrf&
(a) It must be noted that it is no use contracting with a man who either has no legal power to
bind himself, or no legal authority to bind those for whom he proposes to act. If he proposes to
contract on his own behalf it should be ascertained that the person is a major, sound in mind, and
not disqualified from contracting by any law to which he is subject (Sec. 11 and 12 of the Contract
Act). If he proposes to contract as some one else's agent it should be ascertained whether the man
has received the authority that he claims and whether it has been given in the legal form. The power
of attorney should be verified as to the exact nature of the agent's powers, whether the agent is
entitled to manage the whole work or merely to receive payments, sign bills or measurements. (Sec.
182, 190, 191, 196,200 and 201 of the Contract Act).
(b) Before a contract is concluded with any one acting in the capacity of an agent, it should be
verified whether the agent representing the party holds the proper power of attorney as otherwise
his action will not bind his principal.
_4.5 contract~o~~~~-i~lillll
A Contract is voidable at inception when the consent is caused by any of the following under
sections of the Contract Act referred to against each :
(a) Fraud (Section 14, 17 and 19).
(b) Coercion (Section 14, 15 and 19).
(c) Misrepresentation (Section 14, 18 and 19).
(d) Undue influences (Section 14, 16 and 19).
4.6 Contract
The contract is voidable by subsequent default in the following cases :
(a) Where offer of performance is not accepted (Section 38).
(b) When one party prevents performance of reciprocal promise (Section 53).
(c) When a party fails to perform at the time fixed if time is of the essence of the contract
(Section 55).
4.7
4.7.1 Section 7 of the Contract Act makes it obligatory that the acceptance must be absolute
and unqualified. It also lays down the manner of acceptance. In MES, it is usual to send aletter.of
acceptance to the Contractor.
4.7.2 Sections 4 and 5 of the Contract Act lay down the legal position as to when the
communication of the proposal (offer or tender) and that of acceptance is complete and as to when
these could be revoked by either patty.
4.7.3 (a) The communication of a proposal is complete when it comes to the knowledge of the
person to whom it is made.
(b) The communication of an acceptance is complete,
(i) as against the proposer, when it is put into the course of transmission to the proposer so
as to be out of the power of the acceptor.
(ii) as against the acceptor when it comes to the knowledge of the proposer.
(c) The communication of revocation is complete,
(i) as against the person who makes it, when it is pnt into a course of transmission to the
person to whom it is made, so as to be out of the power of the person who mqkes it,
(ii) as against the person to whom it is made, when it comes to his knowledge.
4.8
(a) A proposal may be revoked at any time before the communication of its acceptance i'
complete as against the proposer, but not afterwards.
(b) An acceptance may be revoked at any time before the communication of its acceptance is
complete as against the acceptor, but not afterwards.
(c) Acceptance letters should invariably be sent through registered acknowledgement due post
and· the proof of the time and date of despatch secured, and kept on record. After despatch of the
acceptance letters a contract situation is considered to have been established. Any letter or
intimation of revocation of the tender by the tenderer if received after the despatch of the
acceptance letter is ineffective even in cases where letter revoking the tender is dated prior to the
date of the Acceptance letter.
Revocation of a tender is effective only if the letter of revocation is received before despatch of
the Acceptance letter.
!I BLANK
4;JJBLANK
4.11
Building contracts can broadly be divided into two types as follows :
(a) Lumpsum contracts.
(b) Measurement contracts.
4.11.1 Lumpsum Contracts
In the lumpsum type of contracts, as the name indicates, the contractor undertakes to carry out
the work to completion for a fixed sum.
The complete, fully detailed and exact scope of work required to be done under the lumpsum
contract is laid down by way of drawings and specifications incorporated into the tender
documents, which when accepted become the contract. Recording of detailed measurements at site
is not necessary.
In lumpsum contracts, interim payments (termed as Running Account Receipts-RARs) are
made to contractors on the basis of assessment of the progress of work actually done, and this does
not involve recording of detailed measurements. The day to day supervision by MES, however,
ensures that the work being done is in accordance with the dimensions etc, laid down in the
drawings and specifications.
4.11.2 Measurement Contracts
In measurement contracts, quantities involved in the scope of work are stated approximate in
Schedule 'Pi. of the contract. The exact amount payable to Contractor for RARs and final bills is
decided only after measurement of work done at site priced at rates quoted for each item of work.
General : In works to be let out through a lumpsum contract it often happens that the exact
final quantities for a comparatively small portion of the work cannot be worked out accurately in
advance, e.g. electrification, water supply; sewage lines etc., required in a building. For such
portions of the work the itemwise description with approximate quantities are kept separate as
measurable, against which the contractor quotes rates that he will charge. These measurable
portions of work are made part of the lumpsum contract. By this procedure, concluding contracts of
small amounts for the measurable portion of work is avoided.
~~~~-------- -----
4.11.3 Types of Lumpsum Contracts (IAFW-2159)

(a) Based on Bills of Quantities (BQ) : In this type of contract the tenderer is supplied
with a complete set of drawings, specifications and quantities of each item of work like excavation,
brickwork, concrete etc. The correctness of the quantities of work given in the bills of quantities
(B.Q.) is guaranteed by the MES. The tenderer quotes his rates for each item of work and arrives at
the lumpsum that he will charge for the entire work.
Interim payments are made by assessment not involving measurements at site. Variations, if
any, from the original scope of work are measured in detail and the contract price adjusted on the
basis of rates quoted in the BQ.
This is considered as the ideal type of building contract as it combines the best features of
lumpsum and measurement contracts. Preparation of tender documents requires considerable effort
and expertise.
This type of contract, is suitable for large prestigious buildings and for works involving
construction of many units of a type design e.g. married accommodation.
(b) Based on prepricing by MES : In tenders for this type of contract, the cost of each
building, structure etc, at par with the MES Standard Schedule of Rates (SSR), is estimated in
advance by the MES and inserted in the Schedule 'N. (List of works and prices). Quantities of items
of work like excavation, brickwork etc. involved in each building/structure are not supplied to the
tenderer, and the accuracy of the prepricing done by MES is also not guaranteed. A complete set of
drawings and specifications is supplied to the tenderer.
The tenderer is required to work out the detailed quantities for each building/structure listed
in Schedule 'N., apply his own rates and quote the lumpsum that he will charge for the work.
Th,LO!llY purposeserved by the prepricing done by MES is to arrive at the percentage on/off
'l the SSR rat:sJoi" ~~rki!lg- mit:_t~e adjustment to contract price on account of variations.
A majority of lumpsum contracts concluded in MES for any kind of building or structure are of
this type.
(c) Based on drawings and specifications : In tenders for this type of contract, the
tenderer is neither supplied with detailed quantities nor with cost of work prepriced by MES at par
with SSR. The tenderer is required to work out the quantities, apply his own rates and quote
lumpsum against each building/structure etc. listed in Schedule 'N.. The tenderer is supplied with a
complete set of drawings and specifications.
A Special Condition is inserted in the tender documents laying down a percentage on/off the
SSR level of rates for the purpose of pricing variations, if any, from the original scope of work. This
percentage is preassessed by MES before issue of tenders.
This type of tendering is considered as inferior to tenders based on prepricing by MES, as the
level of rates at which variations are priced, depend on the assessment of market rates by MES and
not on that done by the tenderer. Use of this type of contract should, as far as possible be restricted
to technical buildings of non-repetitive nature and when time is not available for prepricing.
(d) Sale of buildings for demolition, removal and clearance of site (IAFW-2352) :
When, for any reason existing buildings are required to be demolished, lumpsum contracts may be
concluded. The tenderer quotes lumpsum price for demolition of buildings and removal of debris
etc. away from Government land. He also quotes a credit which he will afford for salvaged
materials. A special form is devised for these types of contracts.
(e) Piece-work for specific job (IAFW-1780-A) : Small specific jobs like minor works,
repairs to plant and machinery etc. not exceeding Rs. 10,000 where the scope of work is exactly
known may be executed through lumpsum contracts, duly stipulating the period of completion. The
contractor quotes a lumpsum for the complete job. As the nature of work does not warrant elaborate
conditions of contract etc. a simple and concise contract is devised for use in MES.
(f) Contracts for specialist Consultancy services : Due to excessive planning load in a
particular MES formation or due to the complexity or specialist nature of a job it may be found
expedient to employ the services of a professional consulting firm for working up a scheme, design
calculations, preparation of drawings, bill of quantities, drafting specifications etc.
A standard contract form has been devised for this purpose, use of which is restricted to Chief
Engineer's formations.
MES supplies the consultant with data, information, parameters etc in the form of stipulations
in the contract.
The schedule of fees payable can be so made out whereby the consultants become entitled for
payment of fees on satisfactory completion of the entire consultancy service. Alternatively
stipulation for item wise stage payments may also be made.
As this standard form is approved by the Ministry of Defence the consultancy agreemems are
not required to be vetted by legal authorities or by concerned PCDNCDA.
Note : Use of the form for tender and lumpsum contract for the supply of stores and materials (which includes furniture
items)·lAFW 1815 is suspended.
4.11.4 Types of Measurement Contracts.
(a) Item rate contracts (IAFW-1779-A) : This type of contract is ideally suitable where
large approximately estimated quantities of work involving a small number of items have to be
carded out, eg; road work, external water supply; sewage and electrical mains, periodical services
etc.
The Schedule 'Jli contains items with approximate quantities. The description of items cover
specifications in brief for each item. The tenderer quotes his rates for each item of work, to be
measured in detail before payment. Detailed specifications and drawings are also supplied to the
tenderers.
Though the quantities given in the Schedule 'Jli are stated to be approximate, care is taken to
ensure that they represent final requirements within 10% accuracy. This is to avoid the possibility of
the lowest tender accepted on the basis of approximate quantities turning out not to be the lowest
on. the basis of quantities actually executed at site.
(b) Term contract for artificers work (TC) (IAFW-1821) : This is a contract for a fixed
term (or period-usually 12 months). The area within which work can be ordered (e.g. boundaries of
a military cantonment or part of it, clearly marked on a map) is laid down. The Contractor
undertakes to carry out any number of works which may be ordered on him during the fixed term
PART-l:PRE-CONTRACTSTAGE 59
within the specified area. The contract imposes certain restrictions on the value of each individual
work that can be ordered, and also on the kind of work that can be ordered.
The tenderer quotes a percentage on/off the SSR. Works are ordered as and when necessity
arises. Work is measured against items listed in SSR, priced at rates given in SSR, and adjusted by
the percentage quoted by the contractor.
Term contracts are suitable for carrying out minor works, repairs and maintenance of existing
buildings/ structures etc, and are of great importance and convenience to a GE's division where
considerable maintenance work is involved.
(c) Percentage rate contract (IAFW-1779): In this type of contract the tenderer quotes a
percentage on/ off the SSR for a specific work or group of works. Amounts payable under RARs and
final bills are decided on the basis of measurement of work done priced at rates given in SSR,
adjusted by the quoted percentage.
Tender documents contain information on the nature and broad scope of work, estimated cost,
period of completion, specifications and a set of drawings, but neither the quantities, nor
description of the items of works in the form of Schedule '!I. are supplied.
Use of this type of contract should be restricted as far as possible to following cases :
(i) When there is difficulty in estimating quantities and identifying the exact items of work
until the work has commenced, e.g. extensive roof and floor repairs, renovation to
dilapidated structures etc.
(ii) For maintenance services falling beyond the limits of term contracts for a single work.
(iii) AI; an alternative to lumpsum contract for original works when time constraints do not
permit complete planning, designing and production of working drawings required for
concluding lumpsum contracts.
(iv) In urgent special cases when contractors capable of tendering on lumpsum basis are
neither available locally nor can be inducted from outside.
Use of this type of contract by GE or CWE requires prior approval of the Next Higher Engineer
Authority. I
(d) Rate contract for supply of stores, materials and furniture (IAFW-1815 Z) I
This type of contract is suitable for procurement of any specific kind or kinds of materials, items of I
furniture, stores for maintenance to be used by departmentally employed labour (DEL), petty stores
for office use, etc.
The tenderer quotes his rates for supply of each item listed in the Schedule '!\. during a fixed
period of time of usually six months or one year. Orders for supply can be placed as and when the
requirement arises, in bulk or piece-meal. Items or stores delivered are measured and payment
made at rates quoted. Bill is prepared separately for each supply order completed.
At the time of inviting tenders, the items of stores, furniture etc. may be divided into groups
and separate contracts concluded for each group with the lowest tenderer for the particular group
or groups.
'
I
The General Conditions of Contracts (IAFW 1815-Z) lay down separate percentages for
permissible variation in quantities ordered as against those shown in the Schedule '!\ in contracts for
"Supply of Building Materials," "Supply of Furniture" and "Supply of Bazar Materials".
In practice, therefore, separate tenders -are called for 'Supply of Building Materials', 'Supply of
Furniture' and 'Supply of Bazar Materials'.
The term 'Bazar Materials' signifies items/articles like brooms, brushes, glass tumblers, earthen
pots, durries, door-mats etc.
(e) Contract for handling and conveyance of stores (IAFW-2320) : This type of
contract is used for loading, unloading, removal, conveyance (transporting), stacking and
preservation of stores of any description.
The tenderer is required to quote a percentage on/off a priced schedule of rates attached to the
tenders.
This is a running contract, usually concluded for twelve months period. Work orders duly
stipulating the period of completion are placed as and when need arises. The contractor is required
to keep vehicles and labour gang available for deploying at a short notice. In this contract, when
employed for use for unloading of stores received by railway wagons, demurrage/wharfage charges
levied by railway authorities are recovered from the contractor if the delay has occurred due to his
fault.
(f) Piece-work contract (IAFW-1780) : This type of contract caters for small items of work
of recurrent nature e.g.; recaning of furniture, emptying of septic tanks, restringing of charpoys and
the like. Contracts usually made are for a single item of work, which can be ordered in bulk or
piecemeal as and when necessity arises during a stipulated period of time. Total value of work
ordered is not to exceed Rs. 5000/- during the entire period of contract. A short and concise
contract form incorporating conditions of contract has been devised considering the simple nature
of work involved.
(g) Agreement for appointment of auctioneers for disposal of surplus buildings
(IAFW-2320) : Conducting auctions requires some expertise. In order to ensure that competitive
bids are received for disposal of surplus buildings, agreement is made between government and
auctioneers stipulating commission payable, for any auctions that may be ordered to be conducted
during a fixed period of time. As the number of buildings to be auctioned, and the number of
auctions to be conducted is not known at the time of entering into the agreement, the commission
depends on the extent of services rendered.
4.12 oon~ai'ltill
The various kinds of lumpsum and measurement contracts concluded in MES with the
appropriate standard contract forms and applicable set of General Conditions of Contracts to be
used, and the IAFW (Indian Army Form of Works) number allotted to them are listed at Appendix
4.1. Para 403 of MES Regulations also refers.
List of various contract forms used in MES is given at Appendix 4.2
SECTION
PREPARATION OF TENDER DOCUMENTS
5.1 to fi~iz'~BII
5.1 The points to be watched and observed in the preparation and issue of tender documents are
more or less the same for all types of contracts. Various tender and contract forms as well as
General Conditions of Contracts which are to be used for different types of contracts are given
in Appendix 4.1 and para 403 of RMES.
5.2 Guidelines for information to be collected before going for tender action with regard to ground
data/site factors and availability of materials are given in Appendix 5.1.
5.3 (a) Preliminary information for preparation of tender documents (PIP) shall be furnished by
the planning officers to E8 Section for framing tender documents as per Appendix 5.2.
(b) Costed schedule of works is to be prepared and technically sanctioned by CEA before
tender documents are issued and that the TS allows for the contractor's anticipated
percentage. The only exception is in case of works carried out by specialist firm on own
designs. In such case, TS will be accorded on basis of actual design on receipt of tender but
before acceptance of tender.
5;4 General factors to be taken into consideration while fixing period. of completion of works are
given in Appendix 5.3. Since short completion period has a direct bearing on the quoted
rates, it becomes imperative on the Executives to ensure that the works are completed within
the stipulated period so that intended results are obtained. Any extension of time granted in
such cases would defeat the purpose of concluding such a contract. Period of completion shall
be fixed keeping into consideration all factors affecting the progress of work particularly, site
conditions availability of site, electricity, Schedule 'B' stores, tools and plant, etc.
5.5 Para 408 of MES Regulations-1968 stipulates that contracts based on drawings and
specifications should be restricted to works involving complicated designs or elaborate
architectural features and should be used when there is insufficient time for preparation of bills
of quantities or prepriced Schedule 'Pl.. It further stipulates that special care should be taken in
case of contracts based on drawings & specifications and that drawings & specifications should
be completed in all respect.
5.6 Efforts must, therefore, be made to conclude lumpsum contracts based on bills of quantities.
Where however, this is not possible either, due to difficulty in finalisation of complete drawings
in time or due to inadequacy of time or staff, lumpsum contracts must be based on prepriced
Schedule 'Pl. so as to derive the following advantages :
(a) The drawings and specifications would be complete in all respects and free from
discrepancies and ambiguities because, any discrepancies and ambiguities would come to
light while taking off quantities and these will get rectified before issue of tenders.
(61)
(b) Contracts free from discrepancies and ambiguities can be administered more effectively
because, disputes with contractors and any consequent delay would be minimised. This
would considerably reduce the number of arbitration cases also.
(c) Items of works for which rates are not available in the MES Schedule of Rates, come to
light at the time of pricing the quantities for Schedule 'Pl. and a list of supplementary rates
for these can be included in tender documents. This would obviate, to a considerable
extent, preparation of special rates at the time of ordering DOs, which is one of the causes
of delay in finalising bills and also cause of dispute with Contractors.
(d) Pricing of deviation orders is more realistic as DOs would be priced based on the
percentage quoted by tenderers, instead of a predetermined percentage inserted by the
department. The latter may be disadvantageous to the Government or the contractor.
Consequent disputes arising out of DOs would also be reduced.
(e) Evaluation of tenders and checking of reasonableness of rates is simpler and faster.
Possibility of freak rates creeping into tenders is altogether eliminated.
(f) Preparation of AEs based on the percentages quoted by tenderers would be more realistic.
5.7 Contracts for Technical accommodation should also be lump sum contracts based on B!Q or
prepriced Schedule '/\ preferably unless there are extenuating circumstances for concluding
contracts differently; in which case, approval of the Chief Engineer of the Zone in respect of GE
& CWE contracts and CE Command in respect of CE's contracts will be obtained prior to the
issue of tender.
5.8 All contracts for domestic accommodation should be based on either BQ or pre-priced Schedule
'N..
5.9 Blank
5.10 Item Rate Contracts (IAFW-1779-A) should be concluded when large quantities of work
involving small number of items have to be carried out such as for roads, runways, internal and
external services.
5.11 Rates in MES Standard Schedule of Rates will under no circumstances form part of Item Rate
Contracts envisaged in Condition 62 ofiAFW-2249.
5.12 Sanction of theE-in-C prior to issue of tenders will be obtained in all cases where it is proposed
to include Special Condition(s) which constitute any alteration to the printed General
Conditions of Contracts except those covered under para 46(e) of Defence Works Procedure
2007.
5.13 Important ProvisiQns in.Teijder~~~~mli

5.13.1 As per General Conditions of Contracts, Contractor has the option to take the T & P
provided by MES or use his own and he has similar option either to utilise water from Govt. sources
or make his own arrangement for it. The Contractor should be asked to indicate in the forwarding
letter to tender how he wishes to exercise these options.
5.13.2 Deviation Limit : Limits to be included in contract agreement shall be all as per
Section 19.
63
5.13.3 Schedule of Minimum Fair Wages : All contracts should indicate Minimum Fair
Wages. Alternatively it may be specified that minimum fair wages shall be same as minimum wages
fixed by Central/State Government.
5.13.4 Schedule of Supplementary Rates : Supplementary rates should be included in
tender, after approval by Accepting Officer, to avoid special rates/star rates.
5.13.5 Appointing authority for appointing Arbitrators : Tenders should cater for
appo'nting
1 authority for appointing arbitrator as given below·
(a) For contracts concluded 1JyGEs/CsWE. Zonai/Froiect CE.
(b) For contracts concluded bv ZonaVoroject CE and bv Command CE E-in-C
5.13.6 Instructions to Tenderers : The instructions as under shall be included in

'Instructions to Tenderers' forming part of tender documents :
(i) The tenderer shall quote his rates on the Schedule 'N. and General Summary pages only.
(ii) In case the tenderer has to revise/modify the rates quoted in the Schedule 'N. and/or
General Summary, he may do so only in the Schedule 'Pi/General Summary.
(iii) In case a tenderer has to revise his offer, after it is deposited in Tender Box, he may do so
on his letter head before the time fixed for opening of tenders in a sealed/ properly closed
cover only. Any revision/modification in offer in the form of an open letter shall not be
taken into account, while considering his originally quoted offer.
(iv) In the event of lowest tenderer revoking his offer or revising his rates upwards/offering
voluntary reduction after opening of tenders, the earnest money deposited by him shall be
forfeited. In case of MES enlisted contractors, the amount equal to the earnest money
stipulated in the Notice of tender, shall be notified to the tenderer for depositing the
amount through MRO. Issue of tender to such contractors shall remain suspended till the
aforesaid amount equal to the Earnest Money is deposited in the Government Treasury. In
addition, such tenderer and his related firm shall not be issued the tender in second call or
subsequent calls. Reduction offered by the tenderer on the freak high rates referred to the
tenderer for review shall not be treated as voluntary reduction.
5.14Importance of Gorrectl're,PJ.1cillg:i:oJ1~~,8-il4,ir~~iici~~~i~iliil
5.14.1 A case is cited below which brings out the importance of correctly estimating the unit
rates based on MES Schedule of Rates for insertion in Schedule 'N. of lumpsum contracts based on
pre-priced Schedule 'N.. In this case the cost in Schedule 'N. was under estimated. Contractor's
lumpsum, therefore, worked out at a much higher percentage above MES Schedule of Rates than
the reasonable percentage for similar current works in the area. Whereas the percentage of the
successful tenderer in this case was 38%, the corresponding percentage on the basis of the correctly
worked out estimated cost at par on the MES Schedule of Rates was 24%. In· this type of contracts,
deviations are priced on the basis of MES Schedule of Rates subject to the percentage quoted by the
contractor in the general summary. Since, the percentage for pricing deviations could not have been
amended at the time of acceptance of the tender, additional work which became necessary during
the currency of the contract had to be priced on the basis of 38% above MES SSR This naturally
resulted in an unintended benefit accruing to the Contractor.
5.14.2 The extra expenditure in this case would have been avoided if :
(a) no deviations had been ordered, particularly for the additional work.
(b) a single tender contract could have been concluded with the Contractor on the basis of the
correct and reasonable contract percentage in respect of additional work that was found 0
necessary during the currency of the contract.

(c) By carrying out amendment to contracts for pricing additional work at 24% above
MES·SSR, where additional work is not separable from main work.
5.14.3 The importance of correctly estimating the costs based on MES Schedule of Rates to be
inserted in Schedule 'P( and getting the details cross-checked against corresponding plinth area rates
cannot be overstressed. Any hurry in issuing tenders without proper estimation and planning must
be avoided. In the case in point, it was seen that the Contractor had to be allowed extension of time
due to delay in handing over sites, changes in lay-out and the like and the hurry in letting out the
contract did not really result in any saving of time.
5.15 Importance otcorrectQnantltte~~'ft~,,lll«~(-
5.15.1 There have been cases of Item Rate Contracts, in which estimated quantities shown
against certain items were much lower than the quantities which were ultimately found to be
actually required. That resulted in the deviation percentage in respect of the relevant trade items
exceeding the limits stipulated in Condition 7 (Deviations) of General Conditions of Contracts
(IAFW-2249).
5.15.2 In one of the contracts the rate quoted against an item was low whereas in another
contract the rate was high. In neither of these cases action was taken to make the Contractor to
agree for a reasonable rate for the item of work involved with a view to applying it to the quantity
ordered in excess of the deviation limit. In the former case, the explanation offered for not
negotiating a reasonable rate with the Contractor, was that if the matter was taken up with the
Contractor; he would ha·.'e demanded a higher rate which would involve references to higher
authorities and consequent delay in execution of the work. In the latter case the Accepting Officer
refrained from asking the Contractor to reduce the rate because he apprehended that the Contractor
would not only disagree to reduce the rate but might even stop the work. Although the fear of the
executives is appreciated, but lack of proper action at the appropriate time results in disputes and
arbitrations.
5.15.3 The two cases referred to in para 5.15.2 above bring out the importance and the
necessity of taking the following action :
5.15.3.1 Adequate ground data must be collected before going for tender action so that a
reasonable estimate of requirement of different items is given in the List of Works.
5.15.3.2 Whenever the deviation limit in respect of a trade item is likely to be exceeded, the
question of the rate to be allowed for that item should be taken up with the contractor immediately
instead of leaving it to be resolved at some later date by reference to arbitration or otherwise so that
an agreement is arrived at with the Contractor in respect of the rate to be allowed for the work in
excess of the deviation limit.
:PRE-CONTRACT STAGE 65
5.16 Issue ofStn~::es

-· Guidelines are contained in Section 6.
5.17 Issue of T & P onJiire to-.-.contta.~tofs
--~~--------~·~·- ' ' -··-----··------
,·
Guidelines are contained in Section 7.

5.18. Hire of Translioli'
5.18.1 No transport is to be issued to contractor and Schedule 'D' will, therefore, normally be
NIL. If in any special case issue of transport, tipper lorries or water lorries is contemplated, prior
sanction of the competent authority should be obtained. Hire charges shall be fixed as per para 94 7
ofRMES.
5.19 Materials obtained from Demolition or B\lildilfgs
5.19.1 Materials obtained from demolition may be divided into the following categories :
(a) Materials which are fit for and are required for re-use in the same job or in other jobs.
(b) Materials which are not fit for or are not required for re-use in the same job or in other
jobs.
5.19.2 Materials referred to at para 5.19.1(a) above should be taken on books and then issued
for re-use in the same job or in other jobs.
5.19.3 With regard to materials referred to at para 5.19.l(b) above, it is a matter for the
Accepting Officer of the contract to decide whether the salvaged materials should remain with the
Government or be sold to the Contractor. In the former case, the salvaged materials should be taken
on books and subsequently auctioned. In the latter case the procedure outlined under para 5.19.4
hereinafter shall be followed.
5.19.4 The procedure to be followed when it is intended that the salvaged materials should
become the property of the contractor, would depend on the type of contract under which the
materials are to be obtained from demolition.
5.19.4.1 Lump sum contracts based on pre-priced Schedule 'A' and Percentage
Rate Contracts : The market price of materials obtainable from demolition shall be assessed and
inserted in the tender as the amount of credit to be afforded by the tenderer. The credit shall be
shown separately for each building and the total amount carried to the General Summary. The
percentage quoted by the tenderer above/below MES Schedule of Rates for execution of the Works
shall not be applicable to the amount of credit for materials inserted by the Department.
5.19.4.2 Lump sum contracts based on Bills of Quantities or on Drawings and
Specifications and Item Rate Contracts : Tenderers shall be asked to quote the Lump Sum
amount of credit separately for each building that they would offer to Government towards the
materials obtainable from demolition and carry the total of the credit to the General Summary. The
cost of materials obtainable from demolition as assessed by the MES shall be indicated in the tender
separately for each building.
5.19.4.3 It will be made clear in the tender that the cost mentioned in paras 5.19.4.1 and
5.19.4.2. above is only a rough indication and that the contractor will have no claim whatsoever
against the MES if the actual value of salvaged materials turns out to be different from the cost
given by the MES.
5.19.5 There will not be any option of retaining the salvaged materials if it is found that the
credit afforded by the lowest tenderer in the case of contracts referred to at para 5.19.4.2 is less
than that afforded by other tenderers or does not compare favourably with the cost assessed by the
MES.
5.20 Lump sum Tenderij6c~~¢~f
A tender document for a lumpsum contract comprises of the following :
(a) Forwarding Letter to the Tender Documents : This inter-alia includes the date and
time of receipt and opening of tenders as also the designation and addrc~ss of the Accepting Officer
of the contract. Some important points/special conditions included in the tender may also be
high-lighted to draw attention of the tenderer to such provisions.
(b) An 'Index' or a 'Contents' Page : A full sheet as 'Index' or 'Contents' which clearly sets
out the documents forming part of the tender along with their respective page numbers is attached.
(c) Notice of Tender-IAFW-2162 : This includes name of work, estimated cost of work,
dates for receipt of applications from contractors, issue of tender and r<:ceipt of tender, and certain
other conditions pertaining to the issue and receipt of tender documents.
(d) Lumpsum Tender and Contract for Works-IAFW- 2159 : This form includes the
following:
(i) Authorisation page : On the first page of this form the issuing officer authorises the
tenderer to submit his tender. This page is to be signed in ink by the issuing officer. To
prevent misuse of the tender form by any contractor who is not issued tender by the
Accepting Officer, a cyclostyled/photostat/stamped signature is not allowed on the
authorisation page.
(ii) Schedule 'N (List of works and prices) : This embodies various works/items which
are required to be executed, the number of units required, the unit rates, the extended
amount in amount column and the time allowed for completion of the work along with
phasing, if any. Different categories of work like building work, electrification, water
supply; roadwork etc. are kept separate as Parts I, II, III, IV etc. of Schedule 'N. for
convenience of quoting and working out different applicable percentages over the SSR.
Notes: (1) It should be ensured that reasonable time i.s stipulated for completion of work. (Refer Appendix 5.3)
(2) In case of contracts for additions and alterations, where all the buildings cannot be handed over to the contractor at the
same time, indicate phasing for handing over and completion of buildings in Schedule .:4'.
(iii) Schedule 'B' (List of stores to be issued to contractor) : This includes stores to
be issued to the contractor on payment as well as those to be issued free for fixing.
(iv) Schedule 'C' (List ofT and P to be hired to the contractor) :This includes all the
details of tools and plant which the MES will (at the time of going to tender) issue to the
contractor on hire at the rate specified therein. "Working day'' charges and "off day''
charges are to be separately shown. The details as aforesaid should include numbers,
capacity; crew to be supplied with the T and P and the exact place from where the T and P
will be issued.
If any alternative plant of same capacity but of different nomenclature is to be issued

under schedule 'C' e.g.; one 8 ton petrol driven road roller or one 8 ton diesel driven road
roller, in such cases same hire charges (higher of the the two rates) should be included in
respect of both T and P. This is essential to avoid any guess work on the part of the
tenderers at the time of submission of tenders and to avoid any dispute at a later date.
If considered desirable, a note may be inserted in schedule 'C' to make it compulsory and
obligatory on the part of contractor to hire any particular item or items ofT & P listed in
Schedule 'C' for the execution of the work.
In respect of item of T & P, hire of which is not stipulated as compulsory; the contractor
should be instructed (through a note in schedule 'C') to indicate whether or not he will
need the items to be hired to him. Items of T & P not indicated by tenderer as his
requirement, automatically stand deleted from schedule 'C'. (Refer Condition 15 of
IAFW-2249)
(v) Schedule 'D' (List of Transport to be hired to the Contractor) : This includes
details and conditions. for hire of transport when it is available with the MES for issue to
the contractor. The present policy is not to issue any Govt. transport to the contractor and
hence the Schedule 'D' is normally to be marked 'Nil'..
(vi) General Summary : Total amount of various parts of Schedule 'Pl. are brought forward
to the General Summary. In case of tenders based on prepricing by MES, the percentages
over SSR applicable to the various parts of Schedule 'Pl. are worked out and inserted by the
Contractor.
The provision, if any; of amounts against prime-cost items and provisional sums are also
indicated. The total of amounts of various parts of Schedule 'Pl., prime-cost items and
provisional sums added together is treated as the contract sum.
(vii) Tender Page : This embodies the total tendered sum, deviation limit, the designation of
the authority who will appoint an arbitrator in terms of the arbitration clause, the rate of
recovery for water, amount of earnest money to be deposited etc., and the stamped, dated
signature of the tenderer. Appointing authority for contracts concluded by GEs/CsWE shall
be Zonal!Project CE and for contracts concluded by Zonal/Project CE and by Command
CEs/ADG (OF & DRDO) shall beE-in-C.
(viii) Acceptance page : The Accepting Officer signs on this page in ink after acceptance of
the tender (but before distribution of copies of Contract Agreement) authorising an officer
by name to sign and initial (for the purpose of identifying all documents forming part of
the contract) and authenticating all corrections to the documents made before acceptance
on his behalf and indicating the amount and the date on which it was accepted.
(e) Schedule of Supplementary Rates (attached where required) : Includes a;1y
rates not included in SSR but which may have been adopted in pricing the items included in the
estimates and required for pricing deviations. These rates are either derived from the available SSR
rates or worked out at market rates and brought to the level of SSR. A note to the effect that these
supplementary rates are subject to contractor's percentage should be included in this schedule.
(f) General Conditions of Contract (IAFW-2249) : Including all amendments and errata
issued upto the date of issue of tender documents (Only an agreement).
(g) Special Conditions (Including yardsticks) : Special conditions peculiar to the
contract are included here e.g.; restricted working hours, issue of electric energy etc. A special
condition in variance with the General Conditions of Contract (IAFW-2249) if required may be
included at the pre-tender stage on approval by the CE. CEs are empowered to alter standard special
conditions at pre-tender stage to suit urgent requirements, particularly with reference to security
deposits, percentage payments, periodicity of payments, issue of stores, deviation limits and the
like. CEs will consult their PCsDA where possible. Where the opinion of CE on an alteration involved
a major departure from an existing procedure, he shall send a copy thereof to the E-in-C/DGW for
information. (Ref para 46 (e) of Defence Works Procedure 2007).
(h) Particular Specifications : This includes the scope of work to be carried out, the
Particular Specification (as distinct from the General Specification) and any further particulars
applicable to buildings or items of work included in the tender. The SSR forms a part of the tender
documents and therefore, repeating portions of specification given in the SSR (termed as 'General
Specification') is not necessary: Where specifications in SSR give alternatives, the particular
Specification should indicate the particular alternative which may be intended to be applicable to
the work included in the tender. A note should be added at the beginning to the effect that the
Particular Specification given in the tender, if at the variance, shall take precedence over the General
Specification given in the SSR.
(j) List of Drawings : This includes the drawing numbers with their particulars including
dates (and latest date of revision if any) in respect of drawings which are applicable.
(k) One Complete Set of Drawings : As indicated in the list of drawings.
5.21 Pre-tender CC)~~~~~~
The pre-tender conference with the Contractors to whom the tenders have been issued, should
be encouraged. For tenders costing more than Rs. 10 crores, pre-tender conference is mandatory: It
should be held preferably prior to tender presentation by the executives and all the
suggestions/deficiencies pointed out by the tenderers shall be thoroughly deliberated and recorded
and shall be given due consideration where ever feasible while issuing amendments to tender
documents.
SECTION
ISSUE OF STORES TO CONTRACTORS FOR INCORPORATION

IN THE WORKS UNDER SCHEDULE B
The following stores/materials will be issued to contractors for incorporation in works under
Schedule B:
(a) Stores available on DGS & D rate contracts (except cement & steel) as given below:
'!lei~ ·.c.· ..... . ~ ' / >:••>.:• {: ... .. .•. ,,.·
£•. ., .• If · :•'' • Malnt·•·····•·•. .·. . . ·. ·.
1 Window Tvoe A/C Refri~erators Desert Coolers. Yes Yes
2 Ceilin2 Fans. Yes Yes
3 Electric meters/Water meters Yes Yes
4 U!G HT/LT Cable (PVC & XLPEl Yes Yes
5 Bulbs/Tubes. Yes Yes
6 Enerl>!Y efficient li2ht fittinRs/TL fittinRS Yes Yes
7 Street light fittin2s & accessories (chokes !miters) Yes Yes
8 CI/DI/GI nines w/o accessories Yes Yes
9 Water stora2e tanks HDPE Yes Yes
10 Sketch fittin2s. Yes Yes
11 Transformer oil durin!.! maintenance - Yes
12 Comouters & oerioherals. - Yes
13 Photostat machines. - Yes
14 Proiection svstems. - Yes
15 AC Sheets. Yes Yes
16 Plvwood & Boards - Yes
Notes:
(i) Any other item which Zonal CE decide in addition to above list can also be procured through DGS & D and issued under
Schedule B.
(ii) In case at the time of receipt of tender, such items are not on DGS & D rate contracts and the delay in conclusion of rate
running contract is likely to hamper the progress of work, then these items can be tendered as 'supply & fix'.
(iii) It will also be ensured that only lSI marked brands available on DGS & D are procured. In case lSI marked brands are
not available on DGS & D Rate Contracts (RCJ, Brands conforming to IS can be procured and if lSI marked! conforming to
IS brands are not available on RC with the DGS & D, reputed brands on RC with DGS & D can be procured.
(iv) In case of specific prestigious projects/maintenance services, the CE Zone/Indenting Officer is at liberty to procure desired
articles from the open market in limited quantities or cater in the tenders as contractor's supply under intimation to CE
Command.
(b) Serviceable stores obtained from dismantling! demolition.
(c) Stores held by GEs.
6.2 In cases where the total quantity in respect of any one item is small, the Accepting officer may
at his discretion make a suitable provision in me contract whereby the contractor will be
required to provide such items under his own arrangement.
(69)
.6.3 Is~~e Rat~ for ~ovef!!lnentstifie$ .

Issue rates for Government stores referred to in para 6.1 above will be the net rates of I
1
"Materials supplied only" as contained in MES Standard Schedule of Rates or rates prorata thereto.
If no rate is available in the MES Standard Schedule of Rates, the issue rate shall be fixed by the
Accepting Officer at the local market level prevailing on the date of issue of tender in accordance
with para 445 of RMES.
6.4 Stores to belssued Free ror.Ftiihg
Stores which do not involve wastage and do not lose their identity when incorporated in the
work and which can be easily accounted for (for example : water tanks, electric fans, meters, etc.)
should be issued free for fixing only: Other considerations which govern occasional free issue of
Government stores are :
(a) When "fixing only" price of an article is very small as compared to the cost of the article,
which, if issued on payment, would normally result in a large element of profit being
allowed to the contractor on the cost of the article.
(b) Absence of readily available data for framing a special rate when "Supplied & Fixed" rate
of an article is not available in the MES Schedule of Rates and issue of tenders cannot be
delayed.
6.4.1 To safeguard Government's interest where free issue of stores is included in Schedule 'B'
of the contracts, suitable provision should invariably be made for recovery of such stores at penal
rates which should be at double the prevailing market rate, in the event of any loss, breakage of
damage to such stores while in the custody of the contractor.
~~5 .Issue. of Stores Dufing Execution,. Which are not Includedin ol'ig&tt..t9jn~~t
Cases may arise during the execution of the work wherein the contractor is unable to procure I
certain stores from the market and the Department has a ready stock which can be released to the
contractor. The issue rate of such stores will have to be fixed bearing in mind that neither the
Department loses in the transaction nor the contractor makes a profit not contemplated in the \
contract. Whenever, therefore, the Accepting Officer decides to issue Government stores which are
not included in the original contract, the issue rate fixed shall be the highest of the following rates :
(a) Stock book rate as on the date of issue of stores;
(b) Market rate as on the date of issue of stores;
(c) Rate deduced from the tendered rates, in case of contracts based on Bills of Quantities and
Item rate contracts;
(d) Rate in the MES Schedule adjusted by the contractor's percentage in case of contracts
based on MES Schedule of Rates.
6.6 Place oUssue'
As far as possible stores to be supplied under Schedule 'B' should be issued from the MES store
yards in the normal manner.
pART-l : PRE-CONTRACT STAGE 71
6.7.1 Condition 48 of General Conditions of Contracts OAFW-2249) provides that the Works
and all materials including those provided by the Government on the site shall stand at the risk of
the contractor and Contractor shall be responsible for making good any loss or damage thereto
arising from any cause whatsoever other than the accepted risks. Sometimes due to severe storm, an
incomplete building gets damaged and the Contractor has to make good the damage at his own cost
because damage by storm does not come within the purview of accepted risks as defined vide
Condition 1 (p) of IAFW-2249.
6.7.2 The cost of procurement of Schedule 'B' stores is generally higher than the issue rates
shown in Schedule 'B' and the difference between the procurement cost and the issue rate is debited
direct to the concerned work. If, therefore, stores listed in Schedule 'B' are issued to the Contractor
for making good damage to buildings ar the rates stipulated in Schedule 'B', a further difference in
cost of stores will have to be debited to the works. This will be contrary to the intention of Condition
48 of IAFW-2249 because according to this Condition, the entire cost of making good damage to
buildings has to be borne by the Contractor. Consequently, recovery for the stores listed in Schedule
'B' issued to the Contractor for making good damage to buildings must be made on the basis of stock
book rates or market rates whichever are higher.
6.7.3 A note as given below will be included in Schedule 'B' of all tenders so as to make the
above intention binding on the contractor.
"NOTE FOR INCLUSION IN SCHEDULE 'B'
If the contractor requires any of the items of stores listed above issued to him for making good any loss or damage to Works
arising from any cause whatsoever other than the accepted risks, and the Government issues the same to him, the rate of
issue for such items of stores shall be MES Stock Book Rate or market rate on the date of issue of stores, or the issue rate
mentioned in this Schedule, whichever is higher."
6.8 Issue of Stores DurtngMaintelt@~~,'i~tiij~~

Government stores included in Schedule 'B' and issued to Contractor for rectification of defects
during the maintenance period should be charged to the Contractor at the rates shown in Schedule
'B' in the absence of stipulation to the contrary in the contract agreement.
6.9 Recovery. of Stores Issuedup(ler S~h~4ijl~fltf0

All issue of stores to contractors shall be regulated through USRs.
· (i) MO/AO will keep a record of all blank Unstamped Receipt Book (IAFW-1826) and all
issues of these books will be made through him in the same manner as is done in case of
Measurement Books.
(ii) Only one USR Book will be issued to Incharge Sub-Division. In the case of a large project
an additional book may (at the discretion of the GE/EE) be issued for use on that project
only.
(iii) The USR will be in triplicate and duly priced. It will be signed by the MES Representative
and the contractor's duly authorised agent and all corrections will be initialled by both the
parties.
(iv) The original will be sent to the AAO/AO immediately after transactions. One copy will be
handed over to the contractor and the other will remain intact in the USR Book. Where old
books are still in use, as receipts are printed in duplicate, a loose sheet will be inserted for
an additional copy. This copy will be given the same serial number as the original and the
duplicate and will be the one to be handed over to contractor. In case any USR is
cancelled, the cancelled Receipts (original) endorsed with reasons for the cancellation and
signed by the Engineer-in-Charge will also be sent to AAO/AO.
(v) When on account payment is made to a contractor, all USRs prior to that date will be
adjusted and a statement showing the adjustment in respect of all USRs will be attached
for check by AAO!AO with the original USRs, in his possession. When the final bill is
prepared, a consolidated statement showing the adjustment in respect of all USRs will be
attached to it for check by AAO/AO with the original USRs.
6.10 Technical check of Stores Statementatl:acbed.iOD:ii1BII
6.10.1 The Form of Statement of stores to be attached to the final bill is at Appendix 6.1. Form
IAFW-2264 may be used for collecting the details in support of Col. 5 of the Stores Statement. It will
be noted that in contracts where accounting for empty containers is involved, a separate statement
showing the particulars (See Appendix 6.2) will be attached to the Stores Statement. Containers
returned in an unserviceable condition will not be taken back. In case of bitumen drums, which
have necessarily to be cut open before heating and using the bitumen, the rate of issue for same
should be fixed as inclusive of the cost of containers.
6.10.2 In the case of bills selected for Technical Check by DCWE/ACWE (Contract) in CWE's
office, and Director (Contracts) in CE office (where there is no CWE Office), the Stores statement
will invariably be checked and Cage IV of the bill signed by the EE/AEE (QS & C) without deleting
certificate (d) therein.
6.11 Over Issue of Stores to Contractors
6.11.1 Over-issue upto 5% of the estimated requirements for a whole contract (for the
particular item of stores) may be condoned by a GE, if satisfied that the over-issued material was
actually incorporated in the work.
6.11.2 Similar over-issue above 5% and upto and including 10% may be condoned by a CWE if
satisfied with the GE's explanation.
6.11.3 Reference should be made to para 451 of the Regs. forMES.
6.11.4 With respect of items of Schedule 'B' stores which are issued "free for fixing only'', if any
such stores are lost or damaged while in the custody of the Contractor, the cost thereof should be
recovered at a penal rate of recovery stated in the tender documents under a Note to Schedule 'B'.
The penal rate at which such recoveries should be effected should be double the market rate. For the
sake of uniformily Zonal/Project CEs should lay down market rates for items which are normally
issued "free for fixing only'' for adoption by all CsWE/GEs under them. These rates should be
reviewed by the CE once a year.
6.11.5 The orders which follow, apply to all over-issues exceeding 10% and to any cases under
6.11.1 and 6.11.2 above where the CWE is not satisfied:
(i) Since the stores were issued for a specific purpose i.e. for incorporation in works, the
Contractor is under a contractual liability to return the surplus to the place of issue and to
claim credit at the rate he paid for them subject to the stores being in good condition. If he
does not return these stores but retains them for his own use, or disposes off them to his
personal gain, he becomes liable to be prosecuted for misappropriation.
(ii) In the first place the MES should send the Contractor (by registered and ND post) a letter
asking him to return the over-issued stores in good condition by a given date (say within
two weeks), and informing him that if he fails to do so, it is proposed to either suspend
him from further tendering or to strike him off the list of approved contractors, without
prejudice to any other remedies open to Government.
(iii) Failing compliance by the Contractor with the above, no further warning is to be given,
but the matter is to be referred to the Chief Engineer for orders.
(iv) The Chief Engineer, if satisfied that the over-issue has actually occurred, may, at his
discretion send a final registered letter to the Contractor demanding return of the stores
by a given date. If the Contractor still does not comply, or if such a final warning is
considered unnecessary, the Chief Engineer after complying with the instructions
regarding show cause notice etc. will order that the Contractor be either suspended from
further tendering for a specific period or struck off the list of approved contractors and
report this action toE-in-C's HQ with details of the case. In deciding as to whether action
to suspend or remove from the approved list is to be resorted to, the Chief Engineers will
be guided by the following factors :
(aa) whether the instance reported is the first of its kind as far as the Contractor is
concerned in the Zone/ Project.
(bb)whether, the Contractor, in the CE's opinion had not wilfully misappropriated the
stores for his personal gain.
(cc) whether misappropriation of stores was wilful with personal gain as the sole motive.
(v) The Chief Engineer will also enquire into the circumstances in which theMES made the
excess issue to the Contractor, and will take suitable disciplinary action against any officer
or subordinate found guilty of gross slackness or neglect of duty. Should the investigation
disclose a possible case of fraud, a Court of Inquiry will be convened which will
recommend what action is considered desirable to safeguard Government interests and to
punish any offenders.
(vi) For the over-issued stores issued beyond the limit stipulated in paras 6.11.1 and 6.11.2
(stores issued on payment under Schedule 'B') in addition to the disciplinary action taken,
recovery will be affected at double the issue rates stated in Schedule 'B' in accordance with
Condition 10 of General Conditions of Contracts (IAFW-2249).
6.11.6 The limits of 5% and 10% given above refer to over-issue after making reasonable
allowance for unavoidable waste, laps, joints and other technical requirements. The Statement of
stores attached to a final bill will show requirements, thus calculated and the actual issues. Officers
and other responsible for technical checks JEs (QS & S) and AE (QS & C)!AEE (QS & C)/EE (QS &
C) will sign each statement of stores checked by them in token of the correctness of the quantities '
shown as actual requirements. Should they consider that any quantities are incorrect and that an
over-issue has occurred they will bring the matter to the notice of their immediate superiors for a
decision in accordance with the aforementioned provisions of para 6.11. It must be realised that the
percentage to be allowed for waste, laps, joins, etc., may vary owing to such circumstances as the
condition of the stores when issued, the nature and types of the constructional details etc.
Estimating data given in text books etc, are for guidance only and such factors should be applied
judiciously according to the circumstances of each case. Any instance presenting difficulty can be
settled by experiment at site under the supervision of an officer, a careful record being kept of the
details and results. Issued lengths of reinforcement bars should be noted on the back sheet ofUSRs.
6.11.7 Should any doubt arise as to whether a particular over issue exceeds or does not exceed
10% of actual requirements, the Chief Engineer's decision shall be final
"6.11.8 The Chief Engineer will, when necessary, consult the PCDA on any financial implications
of these orders and will inform the PCDA of his decision in any case under 6.11.4 above.
6.12 ullde.r.Jssu.·.e.. o.t./st.······.u.i-.e.· .~· · ·. o.·.•.r.~m..·.<·.·.··~····.•"''"''fll.·.1
' . ----·-' ,.
__ __ ,~,~----,
6.12.1 Cases of under-issue of stores noticed as a result of technical check of Final bills will be
dealt with as follows : ,
(a) Where GE is satisfied that the work has been carried out according to specifications, under
issues upto 2-1/2% may be condoned by him under a personal certificate.
(b) Where under-issues work out to more than 2-1/2% bur GE is satisfied that the work has
been carried out according to specifications the matter will be referred to the CWE with
the GE's recommendations and the under issue upto a maximum of 5% may be condoned
by the CWE under a personal certificate.
(c) Cases of under-issue exceeding 5% will be referred to the CE with specific
recommendations in the light of explanation offered by the Contractor so that the CE may
decide each case on its merits, i.e. whether the work accepted by the MES be devalued and
suitable action taken against the Contractor concerned or the work accepted without any
adjustment in price.
6.13 In regard to paras 6.11 and 6.12 above, keeping in view practice followed in indenting and
accounting of stores, it has been decided that for the purpose of assessing over issue/under
issue, bars, flats, and structurals of different diameters/sizes shall be treated as separate items.
6.141ssue of Cement to Contractors un•ler ~ltl!d.Jlllli·'"~.r..r Jiti!orli!J
avoid its pilferage (Applicable 1n ~olltralrts~'W
Schedule B · ·.•·. . . . . Y.{Y·,,·,•~;,•;t·~~·'•
6.14.1 A few instances of misappropriation/pilferage of cement issued under Schedule 'B' for
incorporation in the works, have come to notice. These indicate that there is a laxity in
implementing the existing instructions even though these are in sufficient detail. A summary of
these instructions is briefly recapitulated hereunder :
(a) Every cement godown shall be provided with 2 locks on each door and the key of one lock
at each door shall remain with the Engineer-in-Charge or his representative and that of the
other lock with contractor's authorised agent at site of work.
PART-I ! PRE-CONTRACT STAGE 75
(b) Issue of cement is to be so regulated that at no point of time, stock of stores issued under
Schedule 'B' lying unconsumed with contractor should exceed the requirement for
incorporation in the work during the next fortnight.
(c) In order to avoid any misuse of Govt stores, contractor will be asked by the Engineer-in-
Charge at the commencement of the work to furnish details of materials required by him
and the specifications of respective perparatory works. These details will be examined
before authorising issue. A record of perparatory works executed by the contractor,
specifications adopted, and quantities of Govt materials consumed, shall be entered in the
measurement books, as and when these are completed with the remarks 'Not to be billed'.
(d) The special conditions in contract stipulate that cement register showing the cement
issued and consumed in the works and the balance at the end of each day is required to be
maintained. This register is required to be signed daily by the representative of the
Engineer-in-Charge and contractor's representative.
6.14.2 In order to ensure strict compliance of the above referred instructions and to minimise
the cases of any possible pilferage/misuse of cement, the following further actions shall be taken by
the concerned officers :
(a) CE Zone and CE Commands should include checking of cement godowns of the
contractors as one of the vigilance items. Surprise checks should be carried out at their
level.
(b) During the periodical inspections, CEs/CsWE should make it a point to check the
contractor's godowns and to see whether 2 locks systems is being complied with. GEs and
AGEs should carry out periodical checks of stock of stores issued under Schedule 'B' lying
unconsumed with the contractor and to ensure that excess stores are not issued.
(c) CsWE/GEs should introduce surprise checks of the contractor's cement godowns to see
that the balance cement as recorded in the cement register is lying there physically.
6.15 Cemenfcon~~~~
6.15.1 Cement constants based on experiments carried out by CEs, the Central Building
Research Institute Roorkee, and the Concrete Association of India are at Appendix 6.3. These
constants include and allowance of 2-1/2 % for wastage which may occur due to droppings of
cement mortar and cement concrete during the execution of works and as such no additional
allowance for wastage should be allowed for purposes of assessment of estimated quantities of
cement required for the work. As some contractors may minimise wastage and a small variation in
requirement of cement is also possible depending on the percentage of voids in aggregates available
locally, no adjustment need be made if the actual issue of cement is less than the estimated
quantities upto 2-1/2%.
6.15.2 Zonal/Project CEs may supplement or modify these constants to suit local factor peculiar
to any station depending upon the type of RR masonry adopted in a locality, type and quality of
stone, bricks, etc. available locally, under intimation to E-in-C HQ.
SECTION
ISSUE OF T & P ON HIRE TO

CONTRACTORS UNDER SCHEDULE C
7.1 T & P shall be issued to a contractor only on receipt of a demand in writing from him.· The
demand shall be forwarded by the Engineer-in-Charge to the E/M Officer-in-Charge ofT & P
who will prepare a "Loan Issue Voucher" on IAFW-2096. The voucher shall be signed by the
E/M officer-in-Charge ofT & P, the Engineer-in-Charge and the contractor before T & P is
issued to the contractor. A copy of voucher signed by all parties shall be endorsed to the
AO/AAO attached to the GE's office.
7.2 The Engineer-in-Charge shall ensure that the following particulars pertaining to each item of
the T & P are shown in the relevant Log Book :
Number of working hours each day ..................................... .
Breakdown Periods .............................................................. .
Overtime working ............................................................... ..
Maintenance days ................................................................ .
Authorised holidays ............................................................. .
Fuel issued ........................................................................... .
Each entry shall be signed both by the Engineer-in-Charge and the contractor and shall be
dated.
7.3 During examination of certain claims of a contractor it was noticed that the Log Books for the
constructional plant hired to the contractor had not been properly maintained. Though the
printed Log Books provided separate pages for recording the plant data, accessories, tools and
spares, plant staff, issue and transfers, stores issued, operating hours or record of work done,
lubricants and maintenance, repairs and spare parts fitted, inspections/remarks by inspecting
officers, etc., the entries were not made in the appropriate places. This created difficulties in
establishing the break down periods and classification of certain plants for purposes of recovery
from contractor.
7.4 Log Book of constructional plant is an important document which is of great help in sorting out
disputes with contractors at the time of preparation of Final Bills and in deciding on recoveries
in respect of Tools & Plant. It is, therefore, essential that entries therein should be clear and in
the appropriate place so that complete record of the working of the plant, breakages,
maintenance etc., are available from it.
7.5 The Engineer-in-Charge shall prepare once a week a USR showing hire charges of TIP issued to
the contractor. A copy of the USR, signed by the Engineer-in-Charge and the contractor shall be
forwarded to the AO/AAO.
(76)
PART-I:PRE-CO~CTSTAGE 77
7.6 On return of the T & P by the contractor, the E/M Officer-in-Charge T & P shall prepare a
"Receipt Voucher" on IAFZ-2096. This voucher shall be signed by the E/M Officer-in-Charge,
the Engineer-in-Charge and the contractor. The receipt Voucher and the Log Book shall be
forwarded to the AAO to enable him to cross-check entries in the Log Book with those
contained in USRs.
1.1 On completion of the work, a Statement of Hire Charges forT & P issued to Contractor shall be
prepared by the Engineer-in-Charge as per Appendix 7.1 This statement is to be attached as
an enclosure to the Final Bill.
7.8 In order to have uniformity, following procedure will here-after be adopted in working out
hire/stand-by charges forT & P issued to contractors under Sch. 'C'.
(a) At tender stage : The hire/stand-by charges worked out in terms of para 943 of RMES
should be used for including in Sch. 'C' at the tender stage.
Various items ofT & P and the number of each, proposed to be issued under Sch. 'C' should be
decided after reviewing their availability. If only one type of T & P of a given capacity be available
for issue to the contract01; only the hire rate for this type ofT & P should be inserted in Sch. 'C' e.g. 8
ton road roller (petrol). If, however, T & P of the same capacity but in different type using different
fuel is available for issue e.g. road roller 8 ton (petrol)/8 ton (diesel) then all the types should be
stipulated in the Sch. 'C', but the hire rate inserted shall be the highest of all the types worked out in
terms of para 943 of RMES.
Where T & P of different capacities are intended to be issued under Sch. 'C' the rate shall be
worked out in accordance with para 943 of RMES and inserted in Sch. 'C' as separate items.
(b) During currency of contract : As far as possible, hiring ofT & P should be restricted to
that stipulated in Sch. 'C'. If, however, it is decided in the interest of work, to hire T & Pother than
that in Sch. 'C' the following procedure shall be adopted :
(i) When on a request from the contractor : The additional items ofT & P either, other
than those stipulated in Sch. 'C' or, more in number of the items already included in Sch.
'C' or, of higher capacity, should be issued at hire rates which should be the hire rates
worked out in terms of para 943 of RMES, normally inserted in Sch. 'C' in the tender
stage, but enchanced by 20%.
(ii) Alternative type ofT & P to be issued consequent on the failure on the part
of the Department in not being able to issue the type of T & P included in
Sch. 'C' : When alternative type ofT & P of the same capacityI equal performance to that
included in Sch. 'C' is issued to the contractor, no adjustment in the rates stipulated in Sch.
'C' shall be made. However; where T & P of a much higher or lower capacity/performance
is issued in lieu of that included in Sch. 'C' the rates of recovery shall be those which
would have been adopted at the tender stage for such types of plants. The 20% addition
referred to in sub para 7.8 (b) (i) above will not apply in such cases.
Before it is decided to issue alternative type of T & P to the contractor; in such cases, /
approval of the authority next higher to the accepting officer should be obtained. In the ./
case of contracts concluded by CEs, however, they will be the deciding authority.
(iii) Suitable amendment to contract agreement shall be made to cover hiring of T & P in all
cases mentioned in para 7.8 (b) (i) & (ii) above.
7.9 Condition 15 of General Conditions of Contracts (IAFW-2249) provides that the contractor
shall indicate while submitting his tender, whether or not he would require any T & P out of the
T & P shown in Schedule 'C'. Where the contractor expresses his intention of taking the
Government T & P on hire, a phased programme of his requirement should be drawn up and
agreed to in writing jointly between him and the GE. The phased programme should be further
reflected in the CPM chart.
7.10 If on the other hand the contractor categorically declines to take the T & P listed in Schedule 'C'
the same should be diverted to other works as early as possible so as to make the optimum use
of the T & P available with Department.
SECTION
SPECIAL CONDITIONS AND OTHER PROVISIONS FOR

INCLUSION IN TENDER DOCUMENTS
8.1 SpeciatOon~i~
Various special conditions circulated from time to time for incorporation in tender documents
are listed in Appendix 8.1. These special conditions will be incorporated in tenders as and where
applicable.
8.2 Other PtoJtSt~
In addition to the specimen special conditions at Appendix 8.1 suitable provisions should
also be made in tender documents, where applicable, for the following as indicated against them :
(Specimen conditions for certain provisions are given in Appendix 8.2 and shall be suitably
modified to suit local requirements).
(a) Employment of Personnel : Provision shall be made in all tender documents to the
effect that the Contractor shall employ only Indian nationals after verifying their antecedents and
loyalty. Attention of the Contractor should also be drawn to condition 25 of General Conditions of
Contracts (IAFW-2249) or similar conditions in the applicable contract form.
(b) Approval of Sample of Workmanship in Buildings: A clause should be included in
all tenders wherein a sizeable number of buildings are included requiring the Contractor to carry
out in one selected building with a sanitary annexe, samples of workmanship of various trades, to
be passed initially by the GE to serve as guiding samples for the Engineer-in-Charge and JE.
(c) Supply of Water:
(i) Refer Condition 31 of IAFW-2249.
(ii) Where water is contemplated to be issued to the Contractor, a specific provision will be
made in Special Conditions forming part of the tender documents for the tenderer to
indicate whether he is desirous to buy water from the MES or not while submitting his
tender. It should also be mentioned in the above Special Condition that in the event
Contractor fails to exercise his choice in the tender at the time of submission, it shall be
deemed that the Contractor will not buy water from MES but will make his own
arrangement for the same at his own cost from source out side Defence land and no claim,
whatsoever, shall be entertained in this regard.
(iii) In case where MES contemplates to insert clause for issue of water to the Contractor under
Condition 31, following provisions shall also be clearly brought out in the tender
documents besides other normal provisions :
(1) Size of ferrule at each point of supply shall be indicated.
(2) Average duration of water supply during the day shall be indicated.
(79)
80 · PART-I : PRE-CONTRACT STAGE
(3) Number of points, from where the water is proposed to be supplied shall be
mentioned and clearly indicated on site plan.
(iv) In case where piped water supply system does not exist at the site of works, tender
documents will contain a specific provision that water will, not be supplied by MES and
that the contractor shall make his own arrangement for water from sources outside M.D.
land. In case shallow wells exist on M.D. Land or nallahs/rivulets flow through M.D. Land,
the contractor can be permitted to draw water from such sources. Futther if contractor is
permitted to dig shallow/ deep wells on M.D. Land, specific provisions in this regard will
be made in the tender. In either case the provision should to made that no charge will be
levied on the contractor but he should make good ground on completion of work as
directed by GE. In any case water used shall be subject to prior written approval of EIC.
(v) If the supply of water is metered, the all in cost rate as worked out by GE for recovery for
water should be included in tenders.
If however, the supply of water is not metered, this will be so stated in the special
condition and rate of recovery shall be as per condition 31 of IAFW-2249. (Accepting
officer may also modify standard conditions to provide for a free issue of water in terms of
para 454 of MES Regulations for works in which there may be very few items of works
requiring use of water).
(d) Guarantee of Water Proofing Treatment to Buildings in Contracts including
Special water Proofing Treatment : Provision should be made in tenders under. Special
Condition to cater for the following :
(i) The period of guarantee.
(ii) The contractor shall furnish guarantee in favour of the Garrison Engineer for the efficacy
of the water-proofing treatment during the guarantee period. If the work is executed
through a Sub-Contract, the guarantee furnished by the Sub-Contractor should be in
favour of the Garrison Engineer and not in favour of the main Contractor.
(iii) An appropriate sum, equal to the amount of security deposit calculated as per scales laid
down for individual securities deposit on the amount of water proofing treatment at the
contract rates under the contract, should be retained out of the final bill amount as
Security Deposit for the water-proofing work, and it should be released to the Contractor
only after the expiry of the guarantee period. The facility of furnishing fixed deposit
receipt/BGB in lieu of the sum to be retained as security, may be accepted.
(e) Valuation of DOs for Lump Sum Contracts Based on Drawings and
Specifications : In terms of Condition 62 (c) of General Conditions of Contracts (IAFW-2249),
applicable to lump sum contracts based on drawings and specifications, the rates in MES Schedule
referred to in sub paras (c) and (d) of the condition are subject to percentage inserted in tenders. A
percentage shall, therefore, be provided through a special condition in tenders.
(f) Refund of Additional Security Deposit to Contractors : Refer to Condition 68 of
IAFW-2249 regarding refund of Additional Security Deposit to Contractors.
i''
'
(g) Advance on account Against Materials : The condition is given in Annexure XIV to
Appendix 8.1. The Bank Guarantee Bond (in lieu of Retention Money) may be used after suitably
amending the opening sentences as under :
"In consideration of the President of India (herein after called "the Government") having
agreed not to retain Rs ............ (Rupees .............. ) out of the reserve of(*) .............. % ( ................ .
percent) of the value of certain items of materials brought on the Site as provided under the terms
and conditions of Contract Agreement No ................... (here-in-after called "the said Agreement")
made between the President of India and Shri!S' Shri .......................... from the claims of the said
Contractor(s) for the due fulfilment by the said Contractor(s) of the terms and conditions contained
.................... in the said Agreement.
(*) insert 25% or 15% as applicable.
(h) Mobilisation Advance : Payment of mobilisation advance upto maximum of 10% of the
Estimated Cost can be given to the Contractor for work costing Rs. 10 crore or more in tender for
works to be carried out in remote/difficult location and/or requiring mobilisation of special
equipment, tools or plants or/and works to be completed in stringent time frame or/and specialised
;~~~aT~~~~i~~2e~~f~:'~bfai~~~o~~~~~i~n~~~rsL~rg;a~~-:~h~~~:~~!I ~~~~~~~ne~~;;
Aitnexure-XVIrto AppendiX 8.f.The present -rate oflnterest to be indicated is 10% (Simple
Interest) per annum.
(j) Mobilisation Advance for Work at Andaman and Nicobar Islands : CE,
Andaman and Nicobar Zone, Port Blair has been authorised to include at pre-tender stage clause as
per Annexure XVIII to Appendix 8.1 for payment of interest free Mobilisation Advance for all
work of Army, Navy and Air Force upto 10% of contract value against Bank Guarantees. The above
amount shall be recovered in suitable number of equal monthly/fortnightly instalments.
(k) Provisions shall invariably be made in the tender documents for providing a
stone/plaster engraving informations in the project work :
/
(a) JobNo. b 1Lt·\'h

(b) CA No. and Year 0, -+o i'!lc.k~ or 0
(c) Name of work.
~OVI';:Io¥1
(d) Name of contractor.
0:0 \! Clkl ct6 o V\ C-'M ~
(e) Name ofGE.
(f) Name of Engineer-in-Charge.
~..{It -tv 8lo,(,B1AY ':1 (', CLr»~
ct!.Ld ~..-11 ~h'oJA
(g) Date of commencement.
j:P.Y'AP 1M . 1.1 .
(h) Detail of completion phasewise. af}..{j C1s c.,.-
(i) Date of expiry of defects liability period. hfZ_l>o) 01"'
(j) Date of expiry of warranty period given against ATT, water proofing etc. w-f'lf('W\ e,.l . 7:;1
(1} Inclusion of yard sticks in tender documents:
',_.,J,.&. ~ W
~vl';;:i~Jt<
"' re-v~.h'ne_d
H..ol- k 1
(1.) "rard stlc
. k WI'II b e me
. Iu d e d.m tend er d ocuments· m
· aIllump"~Uffl'Teru!trs tor common an ~h~'<t.
standard buildings. Yardsticks shall be prepared based on estimates (at market rates) done I
I
at tender stage. The yardsticks shall be prepared by JE (QS & C) of the office of Acepting
Officer and shall be technically checked by AE (QS & C)/AD/Dy Dir/Jt Dir (Contracts) of
the office of Accepting Officer at the tender stage itself. The GE shall also forward his
comments on yardsticks in respect of CWE's/CE's contracts at tender stage itself alongwith
other comments. Comments received from GE as well as from renderers (if any) shall be
duly considered and wherever required necessary corrections shall be made to yardstick
while issuing other amendments to tender documents. Yardstick shall be approved by the
Accepting Officer at tender stage.
(ii) In case of complicated and unusual buildings, where inclusion of yardsticks at tender stage
is considered not feasible, the Accepting Officer shall record his reasons for the same. The
yardsticks in such cases shall be prepared by JE (B/R) & AGE of concerned Sub Division
immediately on acceptance of contract and shall be technically checked by JE (QS &
C)/AGE (Contracts) of GE office. In respect of GE's contracts, yardsticks shall be approved
by the GEs. In respect of CWE's/CE's contracts these shall be submitted to the office of
CWE for further technical check by the DCWE/ACWE (Contracts) of CWE office and shall
be approved by the CWE. Copy of approved yardsticks in respect of CE's contracts shall be
tendered to office of Accepting Officer for his record and comments. Where there is no
CWE office, yardsticks in respect of CE's contracts shall be submitted to the office of CE for·
further technical check by the AE (QS & C)/AD/Dy Dir/Jt Dir (Contracts) of CE office and
shall be approved by the CE.
(iii) The yardstick shall be finalised well in time so that the payment of RARs is not held up on
this account. The 3rd RAR will be paid by the GE only after technical check and approval
of Yardstick. Accepting Officers shall personally monitor this aspect.
(iv) While preparing and approving yardsticks, it shall be ensured that sufficient funds are \
available towards internal and external finishes of the project. In case of contracts~·:
progressing slow towards final completion stages, the Accepting Officer may order for :.·• ·
technical checks of RAR by ACWE/DCWE (Contracts) of CWE's office. However, there •
shou~d not be any ·unreasonable delay on this account, and Accepting Officer shall closely ~.·.
momtor such contracts. 'j
(m) Setting of site laboratory by Contractors and testing of materials : t
(i) Site laboratory for all contracts of Rs. 1 crore and above shall be set up by the contractor
and a suitable clause for the same shall be included in the tenders. The contractor may be
permitted to set up site lab for the works costing less than Rs. 1 crore at his option. The ·
type of tests and frequency of tests to be carried out in such site lab (A-level tests), in MES
(CE/CWE/GE) lab (B-level tests) and in Govt. approved test house/Engg. Colleges
(C-leve! tests) are attached as given in Annexure-! to Appendix 8.2 for guidance.
Accepting officer depending on the nature of work if required may add additional test
checks to this list. List of tests shall be included in the tender documents depending upon
the actual requirement and nature of work and shall be modified accordingly.
(ii) The contractor shall be responsible for tests to be carried out in site lab established by him
and for that they shall employ a competent technical representative as approved by the GE
and all such tests shall be carried out in the presence of Engineer-in-Change. The charges
!~
..
.
:PRE-CONTRACT STAGE
for the tests carried out in site laboratory of the contractor shall not be r 83
charges for W. level tests shall be recovered if they are not done in sC:cov-erect. The
established by the contractor and in tum are got done in MES lab (CE/CW~te laboratory
random tests of A level tests as decided by the acceptin~ officer shall /bGE:). Cenain
independently in the Zonal/Govt. Approved lab and expenditure for such e &ot done
borne by the department. tests shall b~
(iii) Recovery of 'B' level tests shall be made from the contractor's RAR/final bill
convenient to get 'B' level tests done at Govt. approved test house/Engg. c~ ~erever it is
1
can be done at the cost of the contractor and no separate recoveries shan be ege the same
deptt. for such tests. . Illade by the
(iv) Charges of 'C' level tests shall be borne by the contractor as actual ch
Approved test houses/Engg. College irrespective of rates indicated in ~&es of Govt
Appendix 8.2. The rates of 'C' level tests have been indicated for the PUrp ne:xure-J t~
if these tests are done in MES laboratories (if facility available) or these a Ose Of recovery
non-testing of 'C' level tests is accepted by the accepting officer. re not done and
(v) Testing facilities available in SEMT Wing, CME Pune : SEMT w·
has secured ISO/IEF 17025 : 1999 Certificate by National Accredition Bo tng CM£, Pune
Cal Lab (NABL) Deptt. of Science & Technology. A list of 25 Civil engineerj ard Testing and
which SEMT Wing CME has been accredited to conduct the tests is gi ng materials for
These facilities may be used in MES works. Ven here Under.
Civil Engineering Materials for. Which NAl~LJl~cr~~
Putti
--·-·:/<'
1. Cement
2. Sand/Fine Aggregate
3. Soil
4. Fly Ash
5. Lime
6. Water Proofing Compound
7. Acid Resistant Tiles
8. Paving Bitumen/Industrial Bitumen
9. Hot Applied Joint Sealing Compound (Grade A & B)
10. Bricks
11. Terrazo Tiles
12. Timber
13. MS Bars
14. AC Sheets (Corrugated and Non Corrugated)
15. Bitumen Felt
16. Wooden Particle Board
17. Clay Roofing Tile
'
84 PART~:PRE-CONTRACTSTAGE ,
18. Wooden Door and Window Shutter
19. Cement Paint
20. SWG Pipes
21. Block Board
22. AC Building Boards
23. Fresh Concrete
24. Hardened Concrete
25. Flush Door
(n) Issue of Form 'D' for Inter sales tax : The following clauses may be included in
tender documents for issue of form 'D' or like :
(i) Form 'D' shall be issued by the Deptt. to the Contractor is respect of such items of the
equipment required for the works, the procurement of which shall involve payments of ;
inter-state tax by the contractor.
(ii) If sales tax authorities abolish Form 'D' for inter state tax, no such form shall be issued and ;
no claim in respect of compensation or otherwise on this account shall be admitted from
the contractors.
(o) The following conditions as per specimen given in Appendix 8.2 may also be included as
applicable :
(i) Inspection of site by the tenderer (Sr. 5). I
(ii) Condition for working in unrestricted/Restricted area (Sr. 6A or 6B).
(iii) Damage to existing structures (Sr. 7). I
(iv) Approaches (SJ: 8)
(v) Location of Buildings and Works (SJ: 9) Ij
(vi) Coordination with other Agencies (Sr. 10) I
(vii) Record of materials and purchase voucher (Sr. 11). Condition 10 of IAFW-2249lays down~
that all materials to be provided by the contractor shall be new and in conformity with the 1
specifications laid down in the contract and contractor shall, if requested by the
Engineer-in-charge, furnish proof, to the satisfaction of the Engineer-in- Charge. It has.
been seen that many of the Engineers-in-Charge do not ask the contractor to submit;
vouchers for the purpose of verification leading to incorporation of substandard and J
spurious materials, because of the wording of the condition "if requested by the!I
Engineer-in-Charge". Therefore production of purchase vouchers of certain materials!
(Quantities of which cannot be ascertained after incorporation in work, II
proprietary/branded articles, specialised E/M items, cement, steel etc.) should be made(
mandatory before payment towards materials lying at site and where Engineer-in-Charge!
is having doubt regarding quality/ genuiness of materials, he should demand purchase!
vouchers of such materials, before payment of materials lying at site. Original purchase]
voucher, shall be defaced by the Engineer-in-Charge and photocopies shall be kept inl
record. If Engineer-in-Charge is having any doubt regarding genuiness of purchase1
voucher, the sarrie shall be verified by him. r
I
pAR.T-1 : PRE-CONTRACT STAGE 85
These instructions shall also be applicable in case of contracts based on IAFW-1815 Z.

(viii) Watch/Lighting (Sr. 12)
(ix) Cleaning down (Sr. 13)
(x) Minimum wages payable (Sr. 14)
(xi) Materials and samples (Sr. 15)
(xii) Handing over of site (Sr. 2)
8.3 SpeciaiCQnditions.fQ~~~j~j~l'i~
Special conditions in respect of boring tubewells where payment is to be made on the basis of
depth of boring shall be included as per Appendix 8.3 (Please also refer para 12.8 of Section 12).
8.4
Para 46 (e) of Defence Works Procedure 2007 empowers Chief Engineers to alter standard
contract document at pre-tender stage to suit urgent requirements particularly with reference to
security deposit, percentage payments, periodicity of payment, issue of stores, deviation limits and
similar matters in consultation with the PCDA wherever possible.
8.5.1 The procedure which should be adopted when applying forE-in-C's approval for inclusion
of a Special Condition in tenders in terms of para 393 of Regulations for MES-1968 is outlined
below:
(i) The application must invariably be forwarded to E-in-C's Branch through the PCDNCDA
concerned, enclosing a copy of the special condition proposed to be included in tender
documents.
(ii) The financial effect of the condition should be assessed (approximate amount calculated
where firm amount cannot be assessed).
(iii) Reasons for recommending the inclusion of the condition, also stating whether approval to
a similar condition had been given by the E-in-C in the past.
8.5.2 Where a special condition requiring approval of the Government is stipulated by tenderer
whose tender is recommended for acceptance, the following additional information should be
furnished to the E-in-C .Branch :
(i) It should be indicated whether a similar condition has been included by other tenderers,
particularly by the next lowest.
(ii) A copy of comparative statement of tenders must also be forwarded.
8.5.3 Should the PCDNCDA raise any queries which require further clarification by the CE, the
same should be forwarded toE-in-C's Branch with a copy to the PCDNCDA, as early as possible.
8.5.4 As such matters have to be referred to the Financial Authorities atE-in-C HQ and they
prefer to see PCDNCDXs comments thereon, it should be ensured that the PCDNCDA concerned
forwards his comments to E-in-C's Branch without delay.
8.5.5 Para 394 of the Regulations forMES in this connection shall also be referred.
SECTION
(a) One of the main causes leading to disputes is faulty and ambiguous provisions in tende~
documents. The correct drafting of specifications for inclusion in tender documents is, therefore,
supreme importance. The following instructions, would help in drafting correct specifications.
(b) Specifications are written instructions which supplement the drawings. They describe
quality of materials and workmanship desired by the department and serve as a standard
tenderers to quote. They guide the men on the site in physical performance of the cor!tratct.l
Generally, the drawings represent "what'' is to be done whereas, the specifications state "how'' it
to be accomplished. The specifications, being the written instructions, are given greater
strength than the drawings. The general conditions of contracts forming part of MES co1rrtrac1:sl
stipulate that the particular specifications shall take precedence over drawings in case
discrepancies. It is, therefore, imperative that the combination of drawings and specifications sh(>ul<dl
define completely the physical, technical and operating characteristics of the finished
adopting a logical and systematic method whereby repetition, omissions and conflicting statements
are eliminated.
(c) Essentials in writing : The essential requirements of specification writing can be
summed up as under :
(i) Sufficient knowledge and understanding of the work and the materials and methods
available to accomplish it.
(ii) Sufficient thought and expression in a manner readily understandable by those
responsible for the execution of the work.
(d) The technique of specification writing depends on the application of a few basic principles
of grammar, word usage, subject matter, composition and punctuation. Judged from the technical
requirements associated with building contracts,legal phraseology in specifications is not necessary
if other contract documents are properly prepared. Legal requirements of the contract are embodied
in standard contract forms and the General Conditions of Contracts (IAFW-2249).
(e) Style : Specification should be written in short, concise sentences, in the simplest style
possible. The style and tense should be same through out. Unfamiliar words, having more than one
meaning and unusual technical expressions should be avoided. All sentences should be complete,
definite and unambiguous. Punctuation needs special attention because, lad of proper care in its
use may completely change the meaning of a sentence and misrepresent the intentions of the
contract. Tabulations are often advantageous in preference to lengthy descriptions and should be
resorted to, where possible.
(86)
pART-1 : PRE-CONTRACT STAGE 87
(f) Precision : Difficulties and disputes frequently arise in the form of varying interpretations
of the intentions of the specification writer on the use of words susceptible to more than one
meaning. For this reason, it is necessary to use words in their exact meaning. The following is a list
of typical words which are frequently used incorrectly in specifications :
(i) Any, all : "He shall make good any defect", should read, "He shall make good all defects."
(ii) Either, both : "Eitl1er side of the wall shall be plastered" should read, "Both sides of the
wall shall be plastered."
(iii) And, or : "It shall be free from defects of workmanship and material which would impair
its strength or durability." Interchanging the two words in this sentence results in an
entirely different meaning. Use of "and/or", though common in legal documents, is not
desirable in specifications because of lack of certainty.
(iv) Will, shall : Use "will" in connection with the acts of the Department and "shall" with
reference to the contractor. This is not based on considerations of grammar but is a helpful
and customary distinction between the commitments of the Government and the
obligations of the contractor.
Do not use apparent synonymous, eg; 'must' and 'shall', as different degrees of their
mandatory nature may be inferred. Adopt one or the other, and use it consistently.
(v) Amount, quantity : Amount should be used in connection with money and quantity
when referring to volume, number of objects, and the like.
(vi) Same, said : Use of the word 'Same' as a pronoun is a poor style and should be avoided
as in, "if bracing is required the Contractor shall furnish same at no additional cost".
Similarly; 'said' should not be used as an adjective, as in "said bracing shall be furnished at
no additional cost". "It" can be used instead.
(vii) Refix, Renew, Replace : "Refix" or "Replace" means use of the old materials and does
not imply new. 'Renew' must be used if new materials are required.
(viii) Etc. : This expression is vague in meaning and should be avoided, if possible.
(g) Subject Matter : The subject matter of the specifications should be confined to the
information and directions necessary for construction work and should be sufficient so that
tenderers can price their work completely.
(h) The specifications are intended to amplify; but not to repeat the information shown on
drawings. ~
(i) The specification writer should have definite reasons in mind for every requirement
specified; but these reasons or explanations should not be given in the specifications.
G) Cross references should be avoided but where inevitable reference should not be made to
paragraph numbers alone but also to its title and number and section under which it is to be found.
(k) Balanced Composition : Requirements in the specifications should commensurate with
the size and importance of the work. Careless application of broad standard requirement may result
in refinement unnecessary for small size works. Requirements and details in specifications have a
direct influence on the character and construction cost of the works. A satisfactory specification is
one which contains a minimum of requirements consistent vvith the results.
(1) Definite requirements : The instructions in specifications should be in the manner o

specific directions and not as suggestions or explanations or in the alternatives.
(m) Expressions, "reasonable, best quality, and the like" commonly observed in specifications
should be avoided. These have been the cause of many disputes because no fixed definitions could
be assigned to these terms. Similarly; the "or equal" expression used frequently in connection with
specifications for proprietary materials is indefinite.
(n) The expression 'as directed by the Engineer-in-Charge', is also indefinite because Contractor
cannot predict in advance what the Engineer-in-Charge, will direct. Nevertheless, it may be
necessary to specify some items to the discretion of the Engineer-in-Charge such as shades of
finishes or exact location where Contractor may dump excavated material. Care, in such cases,
should be taken that the arbitrary action of the Engineer-in-Charge does not involve a change in
cost.
(o) Inaccurate wording and vague clauses invariably result in increased construction cost
because Contractors increase their offer to cover the possibility of arbitrary decisions during
construction.
(p) Accuracy: Information rendered in the specifications should be accurate and complete as
the inaccuracy may lead to claims for extras by the Contractor. Repetition is a common source of
error and discrepancies in specifications. A requirement should therefore, not be repeated after if
has once been stated in the specifications or in other documents forming part of the contract.
(q) Errors also may creep in from the use of symbols such as"%" for percent, "-"for minus,
"+" for plus x sq metre for ten square metre etc. Writing out the meaning of the term in full is
advisable.
(r) Practicability : Specifications should be practicable giving due regard to the limitations of
materials and workmanship. Standards of tolerance and finishes should be consistent with
functional, architectural and structural requirements of the completed work. Constructional
requirements should conform to standard sizes and patterns available in the market. Special sizes
are expensive and require extra time for manufacture and delivery. It is also important to visualize
1, , an article which is being specified lest on actual execution it is found completely off proportion with
the type of construction.
(s) Conflicting requirement : Conflicting requirements may result from typographical
errors, mistakes, lack of coordination between the drawings and specifications and the like. Such
faults can be obviated by thoroughly checking the specifications before issue.
(t) FairneliS : Although the first responsibility for the specification writer is to safeguard
Government's interests but it should not be done by imposing harsh and unfair conditions on the
Contractor. All available and relevant information relating to any specific difficulty or hazard
existing in connection with the work should be furnished to the Contractor.
(u) Brevity : The provisions in specifications should be brief and to the point. Expressions
such as "as indicated on the drawings", "in accordance with these specifications", "to the satisfaction
of the Engineer-in-Charge", "in an approved manner" and "Contractor would make good all defects"
need not be repeated. It would be preferable for brevity to provide a general clause or note once and
for all to allow for such requirements.
i,
i
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pART-1 : PRE-CONTRACT STAGE 89
(v) Consistency : The order of writing dimensions viz length, width and height and sizes by
either the 'finished' or 'nominal' sizes should be as laid down in the MES Schedule of Rates. There
should, however, be consistency in whatever form adopted over the entire specifications.
(w) Clause Headings and Numbering : Clauses in specification should have marginal
headings to indicate their contents and preferably be given sectional numbering, e.g. 4.12 (clause
12 of section 4). If the set of specifications is extensive, it will be desirable to provide an index to the
specifications containing clause headings and clause numbers.
(x) Standardisation of specifications : Standardisation of specifications by keeping spare
sets to be attached to a number of similar contracts is fraught with great risk of absurd provisions
going into contracts. This practice should therefore, be adopted only where it is to be restricted to
particular type of building based on the same drawings.
(y) Certain common errors in drafting specifications in contracts are brought out in CTE's Half
Yearly Reports and in various instructions issued from E-in-C's Branch from time to time. These
should be studied carefully by all concerned with the drafting of tender documents so as to ensure
that these do not recur in future.
9.2 Decision on~Jf~~~~~~~
The decision on the specifications to be adopted for a particular work is that of the Engineers
(i.e. E2 Pig) and the job of the Surveyor cadre is restricted to presenting the specifications in the
proper form and language/style suitable for contract documentation.
Before embarking on the job of drafting specifications the Surveyor cadre personnel must go
through the relevant drawings, Technical Sanction and AE. Zonal specifications prescribed by the
Zonal!Project CE should also be kept in view. Specifications followed by other zone for the common
stations shall be taken into consideration after joint discussions.
9.3 General
Specifications contained in Part I of MES Standard Schedule of Rates (SSR) cater for all items
of work and different variations of each item of work likely to be encountered in the Works services.
Though the MES schedule forms part of contracts, all the items of work for which specifications are
given in the MES Schedule will not be relevant to a particular contract. For example the MES
Schedule contains complete and elaborate specifications for plastering using all different kinds of
mortar and various finishes that can be obtained in plaster work like smooth/sand faced/rough
cast/pebbledash etc. The particular finish required and the proportion of mortar mix to be used in a
particular work is required to be stipulated in the contract.
Specifications contained in the MES Standard Schedule of Rates Part I are termed as 'General
Specifications'. The particular kind of materials/workmanship (out of the various alternatives in the
MES Schedule) applicable for a work in question are stipulated in the 'Particular Specification'
applicable for the contract in question.
As all the detailed and elaborate specifications are available in the 'General Specifications' the
'Particular Specifications' are by their very nature, very brief.
9.4 Mat~tii~~
(a) Nowadays most of the items are being manufactured ISI marked. List of BIS!ISI Licence
holders/manufacturers is available on web site (www.bis.org.in) of Bureau of Indian
Standards.
(b) The materials/items, which are being manufactured as ISI marked and are readily
available in market, such materials shall be specified as ISI marked only without
mentioning makes/brands except certain products such as paints, tiles, electrical goods of
reputed firms etc. which do not carry ISimark but are known and proved to be superior in
performance to those having ISI marked, such products shall be specified by
makes/brands with models/quality.
(c) The materials/items which are not being manufactured as ISI marked or lSI marked are
not readily available, such materials shall be specified by makes/brands with
models/quality.
(d) It shall be ensured that makes/brands specified in tender, are readily available in market
and there should not be more than 15% price difference between cheapest and costliest
makes/brands. At least 3 makes/brands shall be specified for each item/equipment. The
word "equivalent" in makes should be avoided. The "equivalent" makes may be specified
only under unavoidable circumstances and the approval for equivalent makes will only be
accorded after ascertaining non-availability from manufacturers specified in contract and
not otherwise.
(e) With regard to materials of local origin like bricks, sand, stone and the like, the GE's
should display representative samples (duly sealed and signed to avoid tampering) to
indicate the quality/shape/grading etc. as would be acceptable. Such samples before
display should be got approved by the CWE, and should be referred to in the tender
documents. While approving and displaying samples, it should be remembered that there
is no point in having samples which are ideal and cannot be procured in quantities that are
required. Approved sources of local origin materials may also be specified.
9.5
Materials, workmanship, architectural norms, tests, acceptance criteria, methods for mix
design, quality control, and such aspects preferred for Defence Works Services are circulated by
E-in-C's Branch from time to time in the form of 'E-in-C's Technical Instructions'. These can be
suitably incorporated in tenders by repeating the provisions in the Particular Specifications.
Reference to E-in-C's Technical Instructions should not, however, be made in the Particular
Specifications as the Tis are not available to the contractor and he is not concerned with them.
When repeating provisions of E-in-C's Tis, the type, nature and importance of the job in
question should be kept in mind to avoid specifying unnecessary rigid and sophisticated
requirements for comparatively simple work.
Special attention should be paid to the Tis (in so far as these are applicable) when drafting
specifications as circulated byE-in-C's Branch from time to time.
9.6siil
9.6.1 Following types of steel are in use in MES works :
(a) Reinforcement Steel :
High strength deformed steel bars produced by Thermo Mechanical Treatment Process
(TMT steel bars of grades Fe 500/Fe 500 D/Fe. 550/Fe 550 D) meeting all other
requirements ofJS : 1786.
(b) Structural Steel:
(i) Standard Quality-Conforming to IS : 2062.
(ii) Ordinary Quality-Conforming to IS : 1977.

(c) Galvanised Steel Sheets (Plain & Corrugated) Conforming to IS : 277.
(d) Fabric Reinforcement for Concrete. Conforming to IS : 1566.
9.6.2 All steel in MES works shall be contractor's supply. In exceptional circumstances CEs
Command may permit selective issue of steel under Schedule 'B'.
9.6.3 Materials.
(a} Reinforcement Steel :
TMT Steel bars manufactured by SAIL/RINL/TISCO/Other primary producers approved by
E-in-C's Branch shall be procured directly from manufacturers for the works.
(b) Structural steel :
Structural Steel shall also be procured from primary producers as approved byE-in-C's Branch.
In case of non availability with primary producers, the structural steel can be procured from
approved secondary producers with a reduction of 5% (five percent) of the accepted rate of
structural steel. In case the desired section of structural steel is not rolled/manufactured by primary
producers, there shall be no price adjustment in use of structural steel procured from approved
secondary producers.
(c) Galvanised Steel Sheets & Fabric Reinforcement for concrete :These shall be
procured directly from main producers as approved byE-in-C's Branch and shall be lSI marked.
(d) Steel sections for railings, gates, fencing, guard bars, grills, steel chowkhat, holdfasts etc.,
which do not constitute structural members, can be procured from main producers/secondary
producers/BIS marked manufacturers or their authorised dealers at the option of Contractor
without any minus price adjustment. Tests will not be insisted upon for such steel sections.
9.6.3.1 Procurement
(a) The GE for every lot of steel shall obtain the particulars of the manufacturer/supplier of
steel from the contractor separately. The form given at Appendix 9.1 will be used for this purpose.
(b) The site staff and GE shall verify the original documents in support of the purchase of steel
and will retain certified true copy of the results in GE's office.
(c) The CEs will ensure that contractors place their demand/ requisition of steel with adequate
lead-time. The steel will be procured from the storage depots of the main producers/approved
secondary producers (as applicable) and not from their authorised agents/dealers as the authorised
agents deal with the steel manufactured by more than one manufacturer.
(d) However, reinforcement steel, Structural steel and Galvanised Steel sheets and Fabric
reinforcement for concrete may be permitted from authorised dealers of main producers in case of
small contracts of value not exceeding Rs. 7.5lakhs.
(e) Secondary producers for structural steel are approved byE-in-C's Branch from time to t;me.
(f) ThermexJTempcore/EVCON Turbo/SIEMEN's HYQST/TMT Process of
manufacturing TMT Steel is being installed by some more manufacturers. The case for their
approval will be progressed in due course as and when the installation of Thermex, Tempcore,
EVCON Turbo or SIEMEN's HYQST/TMT process of manufacturing TMT steel is completely
installed.
9.6.4 Testing of Steel : The manufacturer is to carry out inspections and testing of steel in
accordance with relevant BIS provisions. The Contractor shall submit the manufacturer's test
Certificate in original along with the Test Sheet giving the results of each mechanical test as
applicable and the chemical composition of the steel or authenticated copy thereof, duly signed by
the manufacturer with each consignment. The Engineer-in-Charge shall record these details in Steel
Acceptance Register, as given at Appendix 9.1 after due verification and send a certified true copy
of test sheet to GE for his records. The GE/CWE shall also organise independent test of random
samples of steel drawn from various lots from National Test House, SEMT Wing CME, Regional
Research Labs, NABL approved labs, etc. as per the recommended minimum frequency shown in
Table at Appendix 9.2. Sample from each lot should be tested for quality and elongation. The
elongation shall not be less than 18%. Cost of samples, transportation and testing shall be borne by
the contractor. The records of such checks shall be maintained in steel test register.
9.6.5 Documentation : The Contractor shall submit original purchase vouchers from the
manufacturer for the total quantity of steel supplied under each consignment to be incorporated in
the work. The GE shall inspect all consignments received at the work site along with relevant
documents before acceptance. The original vouchers and the Test Certificate shall be defaced by the
Engineer-in-Charge and kept on record in the office of the GE duly authenticated and with cross
reference to the control number recorded in the Steel Acceptance Register. The Steel Acceptance
Register will be signed by JE, Engineer-in-Charge, GE and Contractor. The entire quantity of all steel
items shall be suitably recorded in the Measurement Book as not to be abstracted, before
incorporation in the work and shall be signed by the Engineer-in-Charge and the Contractor.
9.6.6 Contract Specifications : Particular Specification for supply of steel by the Contractor
shall be carefully framed so that no ambiguity is left with regard to its quality, testing, and source of
procurement. Specification should cover all relevant requirements specific for the particular work
and should not become general specification covering all types of works and grades of steel. For
details on delivery, inspection, testing facilities, identification and marking of Steel by the
manufacturers, reference be made to the relevant BIS Codes.
9.6.7 Following points inter-alia shall suitably be covered in the Contract Specifications :
(a) Type of Steel: Refer Para 9.6.1 here-in-before.
(b) Source of Procurement : Refer Para 9.6.3 here-in-before. Contractors can quote for
steel produced by any producers (main or approved).
(c) Testing of Steel: Refer Para 9.6.4 here-in-before.
(d) Documentation: Refer Para 9.6.5 here-in-before.
(e) Storage, accounting and preservation of steel by the Contractor till consumed in the work
(f) Schedule of Supply.
(g) Procedure for making payments for steel including measurements, conversion weight etc.
9.6.8 The steel directly procured by the department for issue under Schedule 'B' required under
exceptional circumstances will also be procured from main producers.
All contracts c.oncluded by CEs, CsWE, GEs/GEs (I) & AGEs (I) will have cement as Contractor's
supply and specifications shall be drafted keeping in view following guidelines.
9.7.1 Types of Cement : The details of various types and grades of cement are enumerated
below:
(i) Ordinary Portland cement Grade 43 (IS : 8112-1989).
(ii) Ordinary Portland cement Grade 53 (IS : 12269-1987).
(iii) Rapid Hardening Portland Cement (IS: 8041-1990).

(iv) Portland Pozzolana Cement (IS : 1489-1991 Part I).
(v) High Allumina Cement (IS: 6452-1989).
(vi) Sulphate Resisting Portland Cement (IS : 12230-1988).
The type of cement to be selected will invariably depend upon the specific usage in the
work(s). 33 grade OPC will not be used in works.
9.7.2 Control on Cement supplied by Contractors. Following checks shall be carried out
before the cement supplied by the Contractor is accepted and is approved for incorporation in the
works:
(a) Procurement. The Cement supplied by the Contractor will be procured from main
producers of cement. However where estimated requirements of cement is less than 1200 bags and
in all term contracts, contractor can procure cement from the authorised distributors/dealers of the
approved firms but the contractor will have to submit test certificates of the batch issued by the
main producers. The particulars of the manufactures of cement along with the date of manufacture
shall be obtained from the Contractor for every lot of cement separately. The documents in support
of the purchases of cement shall be verified by the site staff and GE.
(b) Manufacturers. The following are the main producers of OPC & PPC :
(i) The Associated Cement Companies Ltd.

(ii) Grasim Industries Ltd.
(iii) Ultra Tech Cement.
(iv) The India Cement.
(v) Dalmia Cement.
(vi) Andhra Cement Ltd.
(vii) Century Cements.
(viii) Saurashtra Cement.
(ix) Binani Cement.
(x) Madras Cement.
(xi) Mangalam Cement.
(xii) Birla Corp Ltd.
(xiii) Orient Cement.
(xiv) Lafarge Cement.
(xv) Shree Cement.
(xvi) JK Cement.
(xvii) Jaypee Rewa Cement
(xviii) Lakshmi Cement
(xix) Ambuja Cement
(xx) Star Cement Meghalaya (to be used in CE Shillong Zone & CE (AF) Shillong Area)
(xxi) Sarfco Cement Pvt. Ltd.
(xxii) Zuari Cement Ltd.
(xxiii) Toshali Cements Pvt. Ltd.
(xxiv) Parasakti Cements Ltd.
Besides the above, only OPC can be procured from the following producers in CE Northern
Command Area only :
(i} J & K Cement Corporation, Kathua, ,J & K
(ii) Shiva Industries, Kathua, J & K
(The above list is updated from time to time by Design Dte. of E-in-C's Branch and same shall
be followed)
(c) Use of PPC : Use of PPC (Portland Pozzolana Cement) of required strength with the fly ash
content as per IS 1489-1999 Patt-I is also permitted. While using PPC, the following conditions will
generally be met :
(i) Strength criteria for PPC will be as per IS-8112-1989.
(ii) Stripping time shall be 14 days.
(iii) Both OPC and PPC shall not be permitted for use in the same building except for plaster
and mortar.
(iv) Mandatory certificates of testing and quality assurance will continue to be submitted as
hither-to-fore, with fly ash content as per IS-1489-1999 Part I.
(v) Specifications for use of PPC would be compiled and incorporated suitably by accepting
officers for inclusion in tender documents.
(vi) The Accepting Officers are required to ensure that PPC meets the strength criteria of 43
Grade OPC as laid down in IS-8112-1989.
(vii) In cold climate regions, where temperature is lower than 15°C, only OPC shall be used
(However during working seasons in cold climate regions, where OPC is not available
use of PPC may be permitted provided it shall be ensured that while using PPC,
atmospheric temperature should be more than 15°C).
(viii) Mixing of OPC and PPC shall not be allowed in a work. However with the strict control
of the ground executives, different buildings can have different types of cement.
(ix) While procuring PPC, the following requirements are to be ensured and certificate to
that effect is to be obtained for each batch from the manufacturer.
(aa)The quality of fly ash is strictly as per IS 14989 (Parti)-2002.
(bb) Flyash is inter-ground "o/ith clinker not mixed with clinker.
( cc) Dry fly ash is transported in closed containers and stored in silos. Only pneumatic
pumping should be used.
(dd)The fly ash received from thermal power plants using high temperature combustion
above Iooooc should be used.
(d) Testing of Cement: The manufacturer is to carry out inspections and testing of cement
in accordance with relevant BIS provisions. The Contractor shall submit the Manufacturer's Test
Certificate in original along with the Test Sheet giving the result of each physical test as applicable
and chemical composition of the cement or authenticated copy thereof, duly signed by the
manufacturer with each consignment. The Engineer-in-Charge shall record these details in the
Cement Acceptance Register, as given at Appendix 9.3 after due verification. The GE shall also
organise independent physical tests of random samples of cement drawn from various lots from
NABL laboratories, National Test House, SEMT CME, Regional Research Laboratories, IITs, MES
Zonal Laboratories, Govt. Engg. Colleges and National Institutes of Technology as per IS 3535
(Method of Sampling Hydraulic Cement) IS-4031 (Methods of Physical Test for Hydraulic Cement)
and IS 4032-1985 (Methods of Chemical Analysis of Hydraulic Cement). In order to undertake
departmental testing, requisite facilities shall be organised. For repair, maintenance and works
where entire requirement of cement is less than 1200 bags, same can be procured from authorised
dealers of the firms approved byE-in-C Branch.
(e) Storage : Cement shall be stored over dry platform at least 20 em high in such a manner
as to prevent deterioration due to moisture or intrusion of foreign matters. In case of store rooms,
the stack should be at least 20 em away from fl.oors and walls. The stacking of Cement shall not be
more than 10 bags high. It shall be ensured that tested and untested cement are segregated and
stored separately with distinct identification.
(f) Documentation : The Contractor shall submit original vouchers from the manufacturer
for the total quantity of cement supplied under each consignment to be incorporated in the work.
All consignments received at the work site shall be inspected by the GE alongwith relevant
documents before acceptance. The original vouchers and the Test Certificates shall be defaced by
the Engineer-in-Charge and kept on record in the Office of GE duly authenticated and with cross
reference to the Control Number recorded in the Cement Acceptance Register. This register will be
signed by JE, Engineer-in-Charge, GE and the Contractor. The Accepting Officer may order a Board
of Officers for random check of cement and verification of connected documents. The entire
quantity of cement shall also be suitably recorded in the Measurement Book for record purpose
"not to be abstracted" before incorporation in the work and shall be signed by the
Engineer-in-Charge and Contractor.
9.7.3 Contract Specifications : Particular specifications for supply of cement by the
Contractor shall be carefully framed so that no ambiguity is left with regard to its quality; testing,
storage and source of procurement in the contract. Specifications should cover the entire relevant
requirements specific for the particular work and should not have general specifications covering all
types of works and grades of cement. For details on Delivery, Inspection, Testing Facilities,
Identification and Marking of Cement bags by the Manufacturers, reference be made to the relevant
BIS Codes.
Following points, inter alia, shall be suitably covered in the Contract Specifications :
(i) Source of Procurement.
(ii) Testing and Test Certificates including procedure to be adopted if test results on samples
are not within the acceptable limits.
(iii) The cost of test, samples etc. shall be governed as per condition 10 A of IAFW 2249.
(iv) Schedule of supply shall be so ensured and specified so as to match with the progress
contemplated in the CPM prepared for that project.
(v) Procedure for making payments for cement including accounting, weighing, etc.
9.7.4 Chief Engineers Zone will prepare the necessary specifications after taking into
consideration the aforesaid points and these are required to be approved from their Chief Engineer
Command before inclusion in the tenders at various levels.
9.7.5 For running contracts having provision of Ordinary Portland Cement (OPC), the use of
Pozzolana Portland Cement (PPC) may be permitted without insisting on non-availability certificate,
subject to the minus price adjustment. The price adjustment shall be on the basis of percentage price
difference between the OPC and PPC, which shall be determined through a Board of Officers.
However, the contractor shall be required to give an undertaking that he shall not claim anything
extra whatsoever on account of extra time for stripping formwork etc. for use of PPC in lieu of OPC.
9.8 Design Mix u()]till:~t~
(a) With implementation of SSR Part-II 2010, there will be no requirement of specifying
cement contents for pricing purpose of design mix concrete. Thus there is no requirement of
inclusion of clause for price adjustment in tender for variation in actual cement contracts of design
mix approved and that specified in tender.
(b) Only the grade of concrete required for each location will be given in the tender, while
providing all other basic data required for design mix like exposure conditions all as per
IS-456-2000. Contractor shall be required to quote his offer keeping in view the given parameters
and other relevant provisions of design mix concrete. Accepting Officers shall however specify
minimum cement contents for each grade of design mix concrete for various stations on the basis of
trial mix design to be carried out in reputed Labs/Zonal Lab to arrive at optimum cement contents
to be specified in tender documents alongwith exposure condition.
(c) There shall be no provision for price adjustment on account of variation in cement contents
of design mix approved and minimum cement indicated in tender. However it shall be made clear
that even if cement contents as per actual mix design are working out lower than minimum cement
contents indicated in tender, the contractor shall provide minimum cement contents indicated in
tender and nothing extra shall be payable on this account. Accepting Officer shall also list out names
of reputed test labs for the purpose of design of concrete mix, in the tender itself.
9.9 Check list/Guide lines as per Appendix 9.4 shall be kept handy in each office while drafting
specifications. All the disputed points observed during performance of various contracts,
lessons learnt during arbitrations, suggestion of ADGTE etc. shall be kept on adding in this list
in each office for ready reference in drafting future tenders. Important points shall also be
circulated to other CE's offices by the ZonaVProject CE for guidance with copy to E-in-C's
Branch.
~~~~~~~~~~~~~-~~~---c-~-~~~~~~~~~~--~-----
SECTION
TERM CONTRACTS AND CONTRACTS

FOR PERIODICAL SERVICES
The MES is responsible for maintaining all ihe building and other allied services. This involves
constant occurrence of small repair works. Sometimes small new works (Minor Works) are also
required to be carried out.
10.2 PJ.'o~~ilill
" '' ',',<:'-">"<'>,"''-'''<'
(a) The necessity for repairs is ascertained from scrutiny of Umt Repair Book (IAFW-1805),
monthly inspection by AGEs incharge of Sub Division, quarterly inspection by GEs and other
inspections.
(b) Repair works are carried out by any one of the following agencies :
(i) Term Contracts (TC).
(ii) Directly Employed Labour i.e. Muster Rolls or Casual Personnel (DEL).
(iii) Measurement or Lump Sum (LS) Contracts.
(iv) Troop labour for minor repairs.
·<:·· .- - y,·<:<,_'"'?:Y:rf::<?fi~
10.3 Term contracfS:,
,··,, v·,···''''•'.',','.'. ""·•O;.·Yoc:.:~:
(a) In compliance with the general principles of open tendering, all tenders including term
contracts estimated to cost Rs. 5 lakhs and over should be advertised.
(b) According to MES Regulations, tenders will be issued to those Contractors within whose
financial limit the amount of the proposed work lies. In the case of term contracts tenders
might also be issued to Contractors in 'E' Class irrespective of the amount of work required
to be executed. (RMES para 417 refers).
(c) Term contracts, as far as possible, should be for a period of one year from 1 April to 31
March of the year. Action for concluding contracts should, therefore, be initiated in
Jan/Feb so that the new term contract can be concluded in Feb/March and the same can
be operative from 1st April.
(d) Work orders should, as far as possible, be placed once a month so that the Contractor can
plan and organise his labour and resources. In this connection attention is also invited to
para 362 of MES Regulation-1968 which provides for placing of orders on term contracts
in phased programme of work so that the same number of men are employed throughout
the year.
(e) Normally; term contracts are for a specific term (period) without reference to cost as
stated in the Notice of Tender IAFW-2162 (Revised 1960) Cage B III, Clause 1. Contractors
(98)
of 'SS' to 'E' Class are eligible to tender for term contracts irrespective of the value of work
that may be ordered during the period of the contract.
(f) Security deposit whether held under the Standing Security Bond or as a separate sum
should relate to the anticipated maintenance grant for the period covered by the contract
which should normally be one financial year. In cases where anticipated maintenance
grant exceeds the monetary limit of the Contractor, additional security to cover the
difference according to the scale laid down as per Section 1 shall be collected from the
Contractor as stipulated in the Notice of Tender (Revised 1960) Cage A, Clause 6.
(g) The Accepting Officer of the contract shall be the officer within whose powers of
acceptance the anticipated expenditure under the contract lies. In cases where
expenditure under the contract exceeds the powers of the officer who accepted the
.contract, the higher competent authority shall be informed of the anticipated total
e'xpenditure and his prior concurrence obtained.
(h) To maintain uniformity of procedure, copies of all work orders on term contract and
deviation orders for extension of time in respect thereof will be forwarded to the AAO
concerned simultaneously when these are issued to the Contractor.
G) Deviation orders for extension of time will also be issued on Contractors order slip form
IAFW 1823-A and numbered with suffix "Dev''.
(k) Also refer Condition 4 (A) of IAFW-2249 for various restrictions on placing orders in TC
Contracts.
(l) Conditions :The documents forming part of T.Cs. (except the use of IAFW-1821-Tender
and Contract Form) are the same as L.S. Contracts. However, it should be noted tnat there
are certain conditions in IAFW-2249 applicable to TCs only.
(m) Stores :As in L.S. contracts Schedule 'B' indicates the materials to be issued free and on
payment by the Govt. The rates of recovery for the materials issued on payment will be
those given in SSR for materials "Supplied only."
(n) Materials salvaged from dismantling and refixed in the same building or another building
situated within a radius of 200 metres will be issued for 'fixing only'. Old serviceable
materials not included in Schedule 'B' may be issued by GE at SSR rates plus/minus
Contractor's percentage or at market rates for new materials, whichever is higher.
Materials such as oanitary fittings for which rates for 'fixing only' exist and not for 'supply
and fix' in SSR, can be issued 'free for fixing only' even though such materials are not
exhibited in Schedule 'B', without amending the contract.
(n) Transport: No motor transport is hired to the Contractor under term Contracts.
(o) Tools and Plant : Normally no tools and plant are included at the tender stage at the
same rate of hire charges as in the L.S. Contracts. T and P not shown in Schedule 'f.' can
be hired at rates 20% higher than normal rates after amending the contract to include the
items concerned. It would be noted that once the T and P is included in Schedule 'C' by an
amendment it becomes incumbent on the MES to supply T and P for all future works, in
that contract in absence of any stipulation in the amendment, to the contrary.
(p) Water : The Contractor is permitted to draw water from the nearest MES source and
recovery is made at the rate of Rs. 3. 75 for every Rs. 1,000/- value of work carried out by
the contractor where the water supplied is unmetered. In case the supply of water is
metered, the recovery shall be effected at the 'Ail-in-Cost' rates intimated by GE/GE
utility section.
(q) Delay: Time is of the essence of the contract and due dates of completion are shown on
each Work Order. If the Contractor fails to complete the work, compensation can be
claimed by the Government at the rate given in condition 50 of IAFW-2249 the estimated
value of the requisition or Work Order. Proper notices must be issued as in the case of L.S.
contracts.
(r) Cancellation/Termination : As in the case of Lump Sum Contracts, Government can
cancel the Term Contract for insolvency; default, death and corrupt acts. Further this
contract can be terminated by either party by giving a six weeks notice to the other
provided the contract remains in force for a period of not less than 6 months. Any works
order issued by the MES during the period of notice must be carried out by the Contractor ·
within the time shown, even if the period of completion extends beyond the date of
termination.
(s) Payments : Advance payments can be made under a T.C. against each individual works .
order at an interval of not less than thirty days provided the estimated value of work
performed is not less than as given in condition 64 of IAFW-2249.
(t) A final bill can be paid for one or more work orders, of T.C. if found convenient.
10.4 Pertodi~~~~~~~
(a) Though the allotment of funds for periodical services and repair works are given together, '
the periodical services are carried out through a separate contract. (see restriction in
cor:dition 4 (A) of IAFW-2249).
(b) Only measurement contract (based on IAFW-1779-A) shall be prepared for periodical
services and the following footnote should be insetted in the Schedule 'Pi :
"For measurement purposes in respect of those buildings for which audited periodical
. services measurement books are available; quantities shall be taken from PSMBs direct
and entered in Measurement Book (IAFW-2261) and in respect of those buildings for
which audited PSMBs are not available, detailed measurements of works shall be taken
and entered in Measurement Book (IAFW-2261) in the usual manner."
(c) Provision is to be made in the contract for a phased programme for carrying out these
~ili. I
1
~l
SECTION
11.1 The procedure to be adopted for entering into agreement for specialist consultancy services has
been given in this section.
11.2 (a) CEs Zones/Projects are authorised to enter into agreements with private consultants for the
purpose of obtaining Consultancy services on specialist items of work, after settling the terms and
conditions through competitive tendering.
(b) Full justification for the proposed consultancy as well as names/addresses of consultants
proposed to be consulted should be furnished to theE-in-C's Branch in the first instance. Details of
past experience and other relevant particulars of the consultants should also be furnished.
Concurrence of E-in-C's Branch should be obtained regarding the necessity for entering into
consultancy agreements as well as the names of consultants. E-in-C has delegated powers to
Command CEs for approval of consultancy through specialist consultants in respect of Zonal CEs
within their commands as under :
(i) The amount of consultancy shall be restricted to Rs.J.S_l!!!<hs or 2% of the project cost
whichever is less.
(ii) Funds for consultancy will be met out of project contingencies which should be available.
(c) After obtaining approval of E-in-C's Branch/CE Command as aforesaid, offers should be/
invited through competitive tendering. The terms and conditions stipulated in the most acceptable
offer received, may be settled through negotiations. If for any particular specialist service, not more
than one consultant is available, negotiations may be done with that consultant.
(d) Government of India, Min. of Def. has approved a standard consultancy agreement form as
per Appendix 11.1. CEs, now; are not required to consult Legal Authorities or PCDNCDA before
conclusion of Consultancy Agreement as per the standard form. Other documents like, Forwarding
letter, Content page, Notice of tender, Authorisation page, Acceptance page, arbitration agreement
(Appointing authority shall be E-in-C in respect of consultancy contracts concluded by CEs) as
applicable shall also form part oftender documents.
(e) Expenditure incurred for consultancy services will be debited to the 'contingencies' item of
Admin Approval unless a separate item exists therein.
11.3 With reference to Clause 11 of the Standard Form and Annexure 'C' thereto, the schedule of
fees should be so made out that, either
(a) the consultant becomes entitled for payment of fees only on satisfactory completion of the
entire consultancy services covered by the Agreement, or
(101)
(b) if payment in stage is contempbted the consultant becomes entitled for the item-wise
stage payment only on satisfactory completion of distinct stage eg. on completion of
design and drawings complete for a particular structure. This will ensure that even if per
chance, the consultant ultimately fails to complete the entire consu!tancy service in terms
of the Agreement, the fees already paid does not become infructuous. (Note-the part
service rendered which is complete in itself, could be made use ofby the department).
11.4 Further, if and when item-wise stage payment is contemplated, a note should be added in the
said Annexure 'C' to the effect that consultant shall be entitled to be paid fees to the extent of
90% only of the respective stage payment as per the schedule of fees, on satisfactory
completion of that stage, the remaining 10% shall be paid with the Final Bill on satisfactory
completion of the entire consultancy service as required under the Agreement.
11.5 If in any particular case, a consultant fails to render the Consultancy services satisfactorily in
terms of the Agreement, a report should be submitted toE-in-C's Branch promptly so that other
CEs can also be suitably apprised.
11.6 The department has the capacity to take on design load to some extent :
(a) E-in-C's Branch has the capacity for handling design for airfield pavements and roads, in
addition to the design of hospitals of more than 600 beds and other selected structures.
(b) ADG Design and Consultancy; Pune is capable of handling design load in respect of marine
structure, architectural and structural design of buildings, central sewage disposal scheme
and sound proofing.
If a Zonal/Project CE desires to go for outside consultancy in respect of the above items of
work, the matter should be first referred toE-in-C's Branch so as to enable it to consider whether it
is in a position to take on the load and, if not, approval will be accorded.
11.7 For any advice on design, specifications and allied matters (not involving detailed
design/drawings) as well as checking designs considered essential by the CEs, they may refer
the matter directly to ADG Design and Consultancy.
11.8 In respect of consultancy for other types of specialist works as well as Consultancy for
investigation of collapses/ distresses of structures, CEs may resort to consultancy with
specialists, whenever necessary. However, an intimation should be sent to E-in-C's Branch as
soon as it is proposed to go in for such Consultancy alongwith the names of consultants.
11.9 A list of approved consultants who are specialised in different disciplines has been circulated by
the E-in-C's Branch. Consultants shall be selected based on their past performance, track
records, establishment etc. CVC guidelines circulated by E-in-C's Branch letter No.
93345/Misc/ consult/07/E2 (Design) dated 5.2.03 as amended up to date shall also be kept in 'I
view. National Directory of Consultancy Services published from time to time by Consultancy
Development Centre IHC, Lodhi Road New Delhi and PHDCCI directory of members published
by Chambers of Commerce and Industry; New Delhi should be referred for checking the
capabilities of the private consultants.
I'
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·
....
;
'
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103
pART-1 : PRE-CONTRACT STAGE
11.10 Whenever Govt/Semi-Govt agencies like CBRl Roorkee, Structural Engineering Research
~
Centre, Roorkee and Chennai, Indian Institute of Technology etc. or other local bodies are in a
position to provide consultancy services, preference should be given to such agencies without
inviting tenders for competitive tendering.
11.11 Procedure of competitive tendering shall be followed as given in Section 2. However
requirement of immovable/ movable property; solvency certificate and working capital
certificate shall not be insisted upon for provisional enlistment. Security Deposit shall be
released alongwith final bill to the consultant. No tisk and cost action shall be taken.
SECTION
CONTRACTS FOR
SPECIALIST WORKS BASED ON T & Q BIDS
12.1 GeO.etil~
Notice of Tender (IAFW-2162) Para 9 stipulates that any tender which proposes any alteration
in any of the conditions laid down or which proposes any other condition, is liable to be rejected. In
spite of such a stipulation, specialist Contractors for works like air conditioning, cold
storage/refrigeration, water purification plants, sewage disposal schemes, provision of lifts and
other specialist works, often submit conditional tenders. As all tenders are opened in presence of
tenderers, there is a tendency on the part of the some of the tenderers to take advantage of their
knowledge regarding the amounts quoted by others and to modify their quotations, when they are
asked to withdraw the condition(s) stipulated by them. To obviate such an unhealthy practice,
tenderers should be informed (in the tender forwarding letter) that if any of the condition(s)
stipulated in the tender documents is/are desired to be modified by them, the financial effect
involved in the event of Government insisting on retention of the original condition(s) should be
indicated in the tender and that any tender which does not comply with this requirement is liable to
be considered as non-bonafide. Past experience shows that such a stipulation in the tenders had not
the desired effect. Specialist tenderers continue to quote with conditions (both technical and
financial). If such tenders are rejected outright, treating them as non-bonafide, the same may result
in accepting tenders containing higher rates or delay in commencement of work.
12.2 Procedttrt
Considering the foregoing, it has been decided that the following procedure will henceforth be
followed with regard to tenders for specialist works :
(a) Tenders for specialist works will continue to be prepared and issued as per the existing
procedure, except for the modifications explained here-in-after. While forwarding tender
documents tenderer's attention will be invited. to para 9 of the Notice of Tender and he will
be informed that if any of the condition (s) stipulated by Government in the tender
documents, is sought to be modified by him, the financial effect involved, in the event of
the Accepting Officer insisting on retention of the original condition, should be indicated
by the tenderer in his tender.
(b) Departmental tender documents will be prepared in two parts. Schedule 'N. and "General
Summary" will constitute one part (Part I) and the remaining will constitute the second
part (Part II). Serial page numbering, etc; will be retained as per the existing practice, so
that both the parts could be merged into one document, later on.
(c) (i) At the time of issue of tenders, tenderers will be specifically directed to submit their
tenders in two Parts, each in a different sealed envelope duly marked. For this purpose, the
Accepting Officer will forward (along with the departmental tender documents) twG
(104)
I
self-addressed cloth lined envelopes one marked "(T)"- Tender for ............. (name of
work) .. .. .. .... .. due on . ... .. .... at .. ... .... ... hrs" ..... .. ... .. and the other marked "Q"-
Prices/Rates in respect of tender for ............... (name of work) ............. Tender due on
............. at ............. Hrs". Another large size self-addressed cover will also be forwarded
by the Accepting officer, to enable the tenderer to submit his tender, comprising both the
Parts (separately sealed) together with an outer cover.
The name of the work and the last date and time of receipt of tenders will be indicated by
the Accepting Officer on the outer cover also.
(ii) The documents to be submitted by the tenderers in sealed envelopes 'T' will comprise
Part-II of the departmental tender documents, the tenderer's tender forwarding letter and
its enclosures and any other documents proposed to be submitted by him including
modified sch. '!\ (unpriced), if any. (Note-In some cases, especially Air Conditioning works,
specialist Contractors prepare and submit their own schedule Jl' i.e. List of Works, which are
at slight variance with the departmental Schedule Jl' but at the same time such Modified
Schedule Jl' turns out to be technically more suitable).
(iii) The documents to be submitted by the tenderer in the sealed envelope 'Q' will include Part
I of the departmental tender documents (priced Schedule '!\/priced modified Schedule '!\
(if any) and General Summary). Tenderers will be directed not to give any indication with
regard to their tendered rates or amounts, in any of the documents submitted in the sealed
envelope "(T)"-such details to be given in the documents submitted in the sealed envelope
' ( Q)', only. If per chance, a tenderer indicates any rate/rates for items of works in his
tender vide documents submitted in sealed envelope '(T)', the tender need not be treated
as non-bonafide.
(iv) The tenderer will also be. instructed to indicate the financial effect of condition (s), if any
stipulated by him, in his tender forwarding letter (see para 12.2 (a)).
(d) The Comparative Statement of Tenders (CST) will be in two parts. Part'!\ and Part 'B'.
(Appendices 12.1 and 12.2)
(e) Immediately after the date and the time fixed for receipt of tenders, all tenders received
will be opened by two tender opening officers nominated by the Accepting Officer (outer
cover as well as sealed envelopes marked 'T') in the presence of tenderers who choose to
be present and scheduled in the CST, in the normal manner. Except that the sealed
envelope marked 'Q' containing the tenderer's quotation shall NOT be opened on that
date. However, the opening officers shall sign and date the sealed envelopes marked 'Q'.
Each page of the tenderer's tender forwarding letter (received in envelope 'T') will be
initialled and dated by the tender opening officers. Part '!\ of the CST will then be
completed by the tender opening officers. Against each tenderer's name, a remark will be
endorsed "~ender received with forwarding letter" or "No tender'' (suitable modified
remarks to suit the circumstances of each particular case may be endorsed by the opening
officers). If the sealed envelope 'T' only has been received a remark to that effect should be
made in the CST Part '!\ and the tender received not considered, being incomplete. If on
the other hand, the sealed envelope 'Q' has only been received after making a suitable
remark to the effect in CST Part '!\, the sealed envelope 'Q' shall be returned to the ·
tenderer unopened.
(f) All sealed envelopes marked 'Q' received from the tenderers will be put together
[unopened in a large cover (LC)], in the presence of renderers, sealed and signed by both
the tender opening officers, with suitable remarks endorsed on the cover, indicating the
contents of the cover.
(g) After opening of tenders vide envelopes marked 'T' and completion of Part 'N. of CST, the
documents including the sealed cover (LC) containing the envelopes marked 'Q' will be
handed over by the tender opening officers to SE (QS & C)/EE (QS & C)!AEE (QS &
C)!AE (QS & C) or to any other officer as authorised by the Accepting Officer. The sealed
cover (LC) containing the envelopes marked 'Q' will be kept in safe custody; separately.
(h) The SE (QS & C)/EE (QS & C)/AEE (QS & C)!AE (QS & C) will then scrutinise all the
tenders received (documents received in sealed envelopes 'T') from the contractual angle
and later get all the tenders technically scrutinised by the E2 Section (Plg)/E 4 Section
(E/M) as the case may be.
G) (i) Clarifications on the tenderer's proposals, if any needed, shall be sought in writing,
from the respective tenderers. Tenderers will also be asked to withdraw conditions, if
any; which are not in conformity with the departmental tender. If the tenderers
indicate any financial effect consequent on withdrawal of the conditions, the same
will be taken note of.
(ii) The Accepting Officer may take a decision to totally ignore the offer of any particular
tenderer;
(aa) if the tenderer does not respond to the letter issued by the Accepting Officer or
delays furnishing the replies without any convincing reasons ;
(bb)iftenderer's offer is unable to comply with the stipulations made by the Department;
(cc) if the tenderer is unwilling to withdraw his stipulations which are not acceptable to
the Department.
In all such events, the sealed envelope marked 'Q' of such a tenderer will not be
opened-See para (m)-but shall be returned to the tenderer in due course. Such
tenderers shall, however, be informed of this position well before the date fixed for
opening of the envelopes marked 'Q'. Reasons for not opening and returning the
envelope marked 'Q' shall be kept on record by the "Accepting Officer".
(iii) If any condition has already been stipulated with financial effect (para 12.2 (a)
above), no reference back to the tenderer on such condition will be made.
(iv) Discussions with tenderers with regard to the conditions and other technical aspects,
by the Accepting Officer or by any officer on his behalf, if any needed, may be held.
(k) During scrutiny of tenders, if any particular condition made by a tenderer is considered
acceptable to the Dept. (e.g. issue of electric power from departmental sources, though not
originally stipulated) then all the other tenderers will be informed of the same and asked
to intimate the reduction in tendered amount, if any; they are prepared to offer, if such a
condition is incorporated in their tenders.
(!) After receipt of written replies from all the tenderers, a summary sheet containing brief·
details of the points referred alongwith financial effect, if any; indicated by the tenderers
pART~:PRE-CONTRACTSTAGE 107
(withdrawal/settlement of conditions) will be prepared and signed/dated by theSE (QS &

C)IEE (QS & C)/AEE (QS & C)/AE (QS & C). Due care shall be exercised to ensure that
the "financial effect" aforesaid is worked out accurately. All correspondence exchanged
between the Accepting Officer and the tenderers will be properly kept on record, duly
signed/initialled by the SE (QS & C)/EE (QS & C)/AEE (QS & C)/AE (QS & C) and dated.
(m) All the tenderers shall then be given a written notice of not less than ten clear days, to be
present if they so desire, for opening of the sealed envelopes 'Q'. The date/time, of
opening of the sealed envelopes 'Q' will also be intimated. On the appointed date/time,
the sealed cover (LC) containing the envelopes marked 'Q' (refer para (0) shall be opened
by two officers nominated by the Accepting Officer, may be the same two officers who had
earlier opened the tender and sealed envelope 'T'-refer para (e) in the presence of
tenderers who choose to be present and the amounts quoted by the tenderers as well as
the enhancement in the tendered amounts, if any sought (vide summary sheet refer para
(l) above) shall be read out by the opening officers to the tenderers. CST Part 'B' will then
be completed by the opening officers. Each and every page of the documents received vide
envelope 'Q' shall be initialled and dated by both the opening officers.
(n) Discrepancies and adjustment of errors, if any, in the documents received vide envelope 'Q'
shall be set right in accordance with Condition 6A of IAFW-2249.
The lowest acceptable tender, after taking into account the enhancement if any (vide
summary sheet) may then be considered, for acceptance, if reasonable and otherwise in
order. Reference to the lowest tenderer (acceptable tender) in respect of 'freak' high rates
may be made as per existing instructions.
(o) After opening of the sealed envelopes 'Q'-refer para (m)-no reference shall be made to any
tenderer other than the one whose tender is being considered for acceptance. Similarly,
any revision in the offer by any tenderer, subsequent to opening of sealed envelope 'Q'
shall also not be considered. However any such revised offers may be taken into
cognisance, for the purpose of deciding the desirability of retendering.
(p) The procedure for opening of tenders will be intimated to the tenderers in the tender
forwarding letter (i.e. tender documents in two separate sealed envelopes to be submitted
by the specified date/time, only the envelope marked 'T' to be opened on the said date and
the envelope marked 'Q' to be opened on a date/time to be intimated later, etc).
(q) "Late tenders" if any received shall not be considered. After opening the outer cover of
such late tenders, the envelope marked 'Q' containing the tenderer's quotation shall be
returned to the tenderer immediately, intimating him the fact that his tender was received
late and hence is not being considered.
(r) All existing instructions with regard to preparation and issue of tenders for specialist
works, procedure for receipt, opening and scheduling of tenders etc., shall continue,
except for the modifications, referred to hereinbefore.
12.3 Validity Period fol' Acct1Jita~ci~;
The validity period for which tenders are open for acceptance, (which is generally stipulated at
the time of issue of tenders) should commence from the date specified for receipt of tenders (vide
para (e) above), irrespective of the fact that the sealed envelopes marked 'Q' are opened on a later
date. This aspect should be highlighted in the departmental tender forwarding letter. The validity
period should be so .fixed so as to cater for the time taken for scrutiny of tenders, settlement of
conditions etc.
12.4 S.uch tenders will be accepted under the. powers delegated in Table B of MES Regs for
acceptance of competitive tenders unless a single tender is resorted .to, in which case the
powers for single tender will apply.
12.5 Tenders
Tenders for all buildings works including RCC or other Reservoirs (whether overhead or other
wise), RCC framed buildings and steel structures shall normally be invited on the basis of MES
designs which shall be thoroughly checked and technically sanctioned before issue of tender
documents to contractors. If expertise to design such structures are not available with MES/ADG,
Design and Consultancy Pune, then first these shall be got designed through consultancy
agreements and then tenders shall be invited based on designs done by consultants and verified by
E2 (Plg)/E2 (Design).
12.6
Tenders based on contractor's own designs shall normally be restricted to specialist works, such
as:
(a) Air Conditioning
(b) External Electrification (HT/LT Switchgear)
(c) Sewage disposal plants
(d) Water purification plants
(e) Lifts
(f) Other specialist work certified as such by the Chief Engineer concerned.
12.7New
Where any new technique or material is specified in the tender, a technical appreciation on use
of the new technique or material will be rendered to the Jt. Director General Designs at E-in-C's
Branch before the tender is issued.
12.8 Boring of...tuiJe.,'ll61.1;_.:~cr.·~·····.~.>fjl.~
.·...· . . Slt .. . ;':~~.fqt:+;t•.1':if"!Js•-.'"';:
l~
(a) The special condition as given in Appendix 8.3 is suggested for inclusion in all tenders for
tube well so as to obviate the necessity of prior sanction of the Govt. in each case. The special
condition does not in any way restrict Accepting Officers to make suitable provisions in the tender
documents for payments for unsuccessful borings or for transportation of rig, etc from the side of
abandoned bore to another. It only stresses that the number of bores and the maximum depth of
each bore should be specifically stated in tender documents so as to define and restrict the
commitments of both the parties under the contract. It also obviates the element of uncertain
liability which is not permissible in terms of para 394 of the Regs for the MES viz a contract
involving an uncertain liability or any condition of unusual character requires prior sanction of
Government.
(b) Where the entire contract or entire boring of the welVwells is decided to be given up due to
successive trials, bores proving unsuccessful, the expenditure incurred thereon is to be viewed as
I··'·I
infructuous and regularised in terms of para 607 of RMES. Where, however, any triaVbore is
successful out of successive trials/bores, the expenditure on unsuccessful trials/bores will not be
treated infructuous.
t2.9Sal~~-
ca) The Ministry of Law advised on the basis of a Supreme Court judgement that when
contracts for air conditioning, supply and installation of lifts and the like are accepted as lump sum
contracts, the question of paying sales .tax does not arise because the contract is treated as a
composite and indivisible one. In such cases the contractors quote composite rates for supply and
installation.
(b) A special condition as in Appendix 12.3 will be included in lump sum or Item Rate
contracts for Specialist Works like External Electrification and specialised supply contracts like
supply of pre-fabricated parts for sheds etc. to avoid disputes with regard to payment of sales tax by
Contractors. Reference to this condition should be highlighted in the forwarding letter to renderers.
(c) Appendix 12.4 gives the special condition to be included in specialist contracts that may
be concluded on forms IAFsW-1779-N 2159/2249 and 1815 (R)/1815 (Z). Reference to this special
condition should be highlighted in the forwarding letter to renderers.
12.10
It should be ensured that suitable provision for the issue of Form 'D' and like for inter-state
sales tax is made in the tender documents for specialist works so that no ambiguity/doubt in this
respect arises later and at the same time Govt. derives the benefit of the concession the Form 'D'
affords.
The clause to be included in the tender documents in respect of Form 'D' may be as given in
Section 8.
12.11 TrainingQf~S'Itr~i!®JI
It is very necessary that in respect of specialist works e.g. Air-Conditioning, Lifts, Sewage
Disposal etc. the MES personnel who shall eventually run and maintain the equipment are properly
trained for this purpose by the specialist firms. A suitable clause should, therefore, be inserted in the
tender documents for training of MES personnel by the Contractor. For proper training of such
personnel, it is advisable that they are associated with the work during installation and testing of
the equipment.
12.12 Foretgnj~lj~il
Endeavour should be made to use indigenous materials to the maximum extent possible and in
rare cases where the Contractors demand foreign exchange, the special condition will have to be
sent for approval of Government.
SECTION
CONTRACTS FOR SUPPLY OF STORES

AND MATERIALS
Work involved in supply of stores and materials is different in nature than that involved in
construction of buildings. Normally requirements cannot be fully known at the tender stage and
hence a "measurement contract based on 1815 (R) and 1815 (Z)" is concluded for this type of work.
IAFW-1815(R) is the form for tender and IAFW-1815 (Z) is the form for general conditions of
contract.
13.2 Acceptance of;'l'~~[el;
Tender form IAFW-1815 (R) provides for acceptance of tender as a whole or in parts. The
Accepting Officer can divide the items in Schedule 'N. in groups, considering the nature of materials
to be supplied and convenience of work. Even one item can form one group. The intention to so
divide the items in groups is to be made clear to the Contractors in the tender itself and the
Accepting Officer will then use his discretion to conclude contracts(s) for each group separately; or
for a few groups together or for all the groups combined. If the Schedule 'N. is not divided into
groups at tender stage only the overall lowest tender can be accepted.
13.3 Conditlonsqt(~~ij~J!
Due to difference in nature of work involved, conditions for this type of contract differ in a few
important details from those for construction of buildings. Important conditions are brought out in
the following paras.
13.4 Deviati&~]~!!_li~t~qfi\j1
Only the officer, who has concluded the contract (and not the Contractor) can make changes in
the provisions of the contract. His decision shall be communicated to the Contractor by the GE
through an order in writing. Such changes are divided in two types as detailed below :
(a) Changes by way of modification of design of Furniture Items etc. : These can
be ordered provided the value of each supply order is not thereby varied on the whole by
more than ten percent.
(b) Changes in quantities originally included : These can be ordered upto the
following limits :
(i) In contracts for supply of building materials or furniture, the quantity of any item
shall not vary by more than 50%.
(ii) In contracts for supply of bazar materials, the quantities may be varied to any extent
at the discretion of the GE provided the total value of the supplies given in a group in
the contract does not vary by more than 25%.
(110)
f
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13.5 Valuation orn~vi~ti(I1J~(M~~~~~~l~

Deviation orders are issued on form IAFW-1823 and IAFW-2212-A. Every D.O. must mention :
(a) Details of work;
(b) Financial effect;
(c) Effect on period of completion; and
(d) Mode of payment (whether 'lump sum' or 'measurable').
The value of deviations shall be ascertained as follows :
(a) Based upon rates/prices for similar supplies in Schedule 'N. in so far as such rates/prices
apply.
(b) Based upon rates/prices deduced from those in Schedule 'N. (as far as it is practicable to do
so) failing method (a) above.
(c) Based on rates/prices agreed upon between GE and the Contractor failing methods (a)
and (b) above.
If contractor disagrees with the GE about pricing of DO, he is required to give notice within
seven days of his receiving the DO and the decision of the CWE shall be final and conclusive.
13.6 Time, Completion, Extension of Time and CompellsatipU:for pel@c£Cb~l!i~~~~~~jir~fff~il£l
(a) Time is of the essence of contract and the Contractor is required to complete the work on
or before the date of completion mentioned in the work order.
(b) Extension of time can be granted by the Accepting Officer in the following circumstances :
(i)When the delay is caused by any reason beyond the control of Contractor (many
possible happenings of this nature have been given in Condition 7).
(ii) When alterations have been ordered.
(c) The decision of the Accepting Officer will be communicated to the Contractor by the GE.
(d) The GE himself can give extension of time if he orders suspension of work under
Condition 6.
(e) If the Contractor.fails to complete the work in time he is liable to pay compensation as per
Condition 24 of 1815Z.
(f) Close watch is kept on the progress of the work and if the progress is slow, Contractor is
given notice drawing his attention to the slow progress and warning him of his liability to
pay compensation.
13.7 stores(Condft~~~:si
(a) Stores intended to be issued to the Contractor are included in Schedule 'B'. It is the
responsibility of the Govt. td issue such stores to the Contractor and the Contractor is also
required to receive such stores from the Govt. It should be noted that IAFW 1815 (Z) does
not cater for payment of advances on account of materials collected at site, whether
arranged from market or issued under Schedule 'B'.
(b) During execution, issue of Schedule 'B' stores is checked with the actual requirements. All
surplus stores are to be returned by the Contractor. Full recovery of materials issued under
Schedule 'B' is to be made when paying advances on account (RAR) as well as Final Bills.
(c) If during execution, stores not included in Schedule 'B' are required to be issued to
Contractor Schedule 'B' will be amended to include these stores. Rates of recovery for such
stores will be the stock book rates on the date of issue of the stores or market rates
whichever are higher.
13.8 satit~i~~,
(a) Contractor is required to submit samples for approval before commencing supplies.
Approved samples can be counted against supplies or can be returned to the Contractor
after supplies are completed.
(b) Where supplies are required to conform to theMES samples, such samples, can be loaned
to the Contractor for his general guidance; the cost of carriage both ways, shall be borne
by 'the Contractor.
13.9 Packages (Condlij~qj~
(a) Generally all packages supplied by Contractor along with his supplies are considered as
non-returnable.
(b) If Schedule 'N. specially mentions that the packages are returnable, the GE may return
them subject to the requirements of Government, at the Contractor's expense, but no
claim will be entertained by Govt. in respect of containers not so returned to the
Contractor.
(c) If Schedule 'N. provides for returnable containers to be separately priced, the Contractor
shall afford full credit for those returned.
13.10 Duties and Othercnarges(Condi~o~)gj
Contractor is exempted from paying octroi or terminal tax, sales tax and other duties on
materials, issued under Schedule 'B'. All such charges are required to be paid by the contractor for
materials obtained from other sources.
13.11 Assigmnent{C!)n!!l¢~!1~~~}
Contractor is not allowed to sublet or assign the contract wholly or in part without the prior
written approval of the Accepting Officer.
13.12 Performance (Conditlonsli~ ~nil 2M;
Only written orders are valid. GE is the final authority to decide whether materials and
workmanship are according to the contract and whether to accept or reject the supplies. The
Contractor shall afford all facilities as may be required for inspection and examination by the
concerned MES officers of any of the supplies under the contract.
The Engineer-in-Charge is entitled to have tests made of any of the supplies delivered by the
the Contractor who shall provide at his own expense all facilities which the Engineer-in-Charge may
require.
If during the contract period or prior to the expiry of the defects liability period (i.e., six
calendar months after the supplies have been accepted by the Govt.), GE considers any portion of
supplies unsatisfactory or unsound or of quality inferior to that contracted for, or not in accordance
with the contract (GE's decision being final and conclusive) the Contractor shall on demand in
writing from the GE, rectify the defects or remove the supplies complained of and replace by proper
and suitable supplies at his own expense. In the event of the Contractor failing to do so within a
period specified by the GE in his demand, the GE shall be at liberty either to :
(a) rectify the defects at the Contractor's risk and expense; or
(b) return rejected supplies at the Contractor's risk and expense; or
(c) sell all or any of the rejected supplies by public auction or private contract on the
Contractor's behalf and to retain such portion of the proceeds as may be necessary (to
cover any loss or expense incurred by Govt. in connection with such sale) and to replace
the rejected supplies at the risk and expense of the Contractor. The Accepting Officer may
at his discretion decide to accept supplies below specification at such reduced rates as the
GE may consider fair and reasonable (GE's decision is final and binding.)
The GE should convene a board of officers to check furniture items before accepting the articles
delivered by the Contractor, to assist and help the GE in determining the quality/standard of
materials and workmanship before he issues the certificate of acceptance. Convening a board of
officers for such checking shall not, however, in any way, absolve either the Engineer-in-Charge or
the GE of their respective responsibilities in terms of the General Conditions of
Contracts-IAFW-1815 (Z).
Furniture work with opened out/loose joints or warped/ cracked joinery members, substandard
block board with ply facing peeling off/blistered, wooden planks of lesser width/thickness and other
serious defects which by their nature would affect usability/life of furniture, must be got
rectified/replaced instead of resorting to devaluation.
13.13 No supplies will be considered as accepted without GE's certificate of acceptance. To avoid
delay in accepting and taking over supplies/articles of furniture by MES due to non availability
of storage space etc., and resultant hardship to Contractors, it should be ensured that contract
for supply of stores and furniture are concluded only when the Department is in a position to
accept the deliveries and take over the supply as and when ready:
13.14 Cancellation and Termint~.iion
(a) Accepting Officer may cancel the contract if :
(i) the Contractor assigns, transfers or sublets the contract (Refer Condition 27).
(ii) the Contractor is adjudged bankrupt (Refer Condition 27);
(iii) the Contractor defaults (Refer Condition 28).
(b) In case of such cancellation, the Accepting Officer may complete the delivery of the
supplies at the risk and cost of the Contractor.
(c) CWE shall cancel the contract for corrupt acts of the Contractor and any loss or damage
resulting from any such cancellation (Refer condition 26) shall be recovered from the
Contractor.
114 PART-I:PRE-CO~CTSTAGE
(d) Accepting officer has an option of terminating the contract (without compensation to the
Contractor) if the Contractor dies. (Refer condition 29).
(e) Either party (Govt. or Contractor) can terminate the contract by giving six weeks notice to
the other party provided the contract has remained in force for six months or half the
contract period whichever is less. This is applicable only to Rate contracts (Refer Condition
30-A).
13.15 Valuation andPaYJ.llen~(C~ti'i~lfiilllfl

(a) On demand from the Contractor, advance payment can be made to him to the extent of
90% of the value of accepted supplies (priced at contract rates) provided the net amount,
after deducting all recoveries, is not less than as indicated in conditions. There is no
restriction on time interval between two consecutive advance payments. Every advance
payment is to be supported by signed delivery notes and certificates of acceptance.
(b) Final bill is to be prepared by the Contractor, after acceptance of all supplies by Govt. and
is supported by signed delivery notes and certificates of acceptance. No claims are to be
entertained after receipt of the signed final bill. (Refer Condition 33).
(c) Govt. has a right to carry out post-payment audit and technical check and to recover from
the Contractor any over payment detected in such check. Govt. has also a right to adjust
overpayments and underpayments detected in such checks against any amounts due to the
Contractor. This right of Government extends only for a period of two years from the date
of payment of the final sum. (Refer Condition 34). The Government can sue the
Contractor for recovery of overpaid amount, upto a period of thirty years as per the
provision of Atticle 112 of the Limitation Act, 1963, if the Contractor fails to deposit the
amount on demand.
(d) All disputes (between the parties) on contractual matters for which no Engineer officer
has been empowered in the contract conditions to give a final and conclusive decision can
be referred to a sole arbitrator. In case of GE's and CWE's contract~, CE/Zonal CE is the
appointing authority for an arbitrator and in case of Chief Engineer's Contracts, E-in-C is
the appointing authority.
Note: If conditions of IAFW-1815 Z are amended, the above provisions shall also be deemed amended accordingly.
Therefore IAFW-1815 Z shall be referred to firstly before applying above provisions.
CONTRACTS FOR HANDLING
AND/OR CONVEYANCE OF STORES
14.1 Introduction
Tender and contract form IAFW-2320 is used for concluding contracts for handling and
conveyance of stores.
There are two methods for handling and/or conveyance of engineer stores :
(a) By Contract
(b) By DEL
This Section deals with the important points connected with first method.
14.2 Schedule 'A'
In the tenders for handling and conveyance of stores by contract, the Schedule '!\. is the most
important part. It contains a comprehensive list of items of work which the Contractor is likely to be
called upon to execute during the contract period. The standard form in use contains rates per unit
of work. The Contractor when he submits his tender, has to quote a uniform percentage over the
rates applicable to all the items in Schedule '!\. to cater for his actual costs, overheads and profits.
The estimated cost of work likely to be ordered against each item is also mentioned, but without
guarantee of its accuracy.
14~-J'!~~!!-~f Appli~~b_!!l_!y
The area of operation (like whole or part of the cantonment etc.) and the important nodal
points like the applicable railway station (s) (from which stores will be required to be
loaded/unloaded), the various MES stores yard(s)/Engineer Parks/Depots to (or from) which the
stores will have to be transported/handled (or other items of work listed in Schedule '!\. executed)
are indicated in the tender. The indication of area of applicability is either shown on a site plan •
attached to the tender or dearly described.
14.4 Term
The period during which the work can be ordered on the Contractor, on 'as and when required'
basis is mentioned in the tender, This term or period is usually 12 months.
14.5 (a) Orders for work: All orders are given in writing to the Contractor signed by theMES
official (usually the BSO) authorised to do so by the GE. Work orders are given on IAFW 2331
specially devised for ordering work on handling and conve,:mce to Contractor, in which the date
(and time where relevant) for starting and completing the work (ordered through the particular
work order) are laid down. No claim in respect of verbal orders can be entertained.
(115)
~-----------------
(b) Payment for Work Done : All work done is measured and entered in measurement
books (MB) and paid for, on claims. for payment being submitted by Contractor, usually on
completion of work against each work order.
(c) Hours of Work : The Contractor is required to carry out work at any time by day or by
night as ordered. Sundays and holidays are considered as working days.
(d) Charges levied by the Railways from MES towards demurrage (Le. delay caused in
unloading railway wagons beyond time allotted as per Railway rules) and wharfage (i.e. delay
caused in removing and clearing goods from the Railway platforms/siding! goods shed beyond time
allotted) are recovered from the payment due to the Contractor if the delay is caused due to
contractor's default. In respect of other work not involving any question of demurrage/ wharfage,
compensation for delay is recovered from Contractor if no extension in time for completion of work
is considered due to Contractor by the GE. Maximum compensation for delay that can be recovered
is 10 percent of the estimated value of the particular work order.
(e) Distance Boards : The distances between various points over which the Contractor is
likely to be ordered to transport and convey goods are measured and fixed by a Board of Officers
ordered by the GE. Payment for transportation is done on the basis of the distances as fixed by
Board of Officers.
14.6 Correct Application of Rates lnSchedul~ ·A~_
Wherever a composite item of work (e.g. item 3 (a) of the Schedule 'Pi.) is available covering all
activities involved, such an item should be used for payment of work. Splitting the work and paying
for it under different items (in case of transfer of cement to different divisions from consignee) leads
to overpayment.
14.7 Piece Work/Additionl\l'W~tli.:
Piece work or any additional work in connection with the handling and conveyance of stores as
may be required from time to time during the period of the contract, can be ordered on the same
Contractor at the rates as determined in accordance with clause 32 of the conditions of contract.
14.8 Work Reserved
---·----··--·-----·
--~ ..
Work included in the scope of this contract may be carried out through Departmental Labo'ur or
other agency at the discretion of the GE in the following cases :
(a) When the work involves use of mechanical appliances such as crane etc.
(b) In special circumstances.
(c). In any emergency.
However, work involving use of a crane or other mechanical appliances may be ordered on ,the
Contractor in which case he will be allowed the use of Govt. crane or other mechanical appliance
(including crew) without any charge and he will be paid the cost of labour plus ten percent to cover
his overhead and profit. In such cases work order should specifically say that the payment shall be
made on a "Non-Schedule" rate sanctioned in terms of condition 32.
~l : PRE-CONTRACT STAGE 117
'''li~tunll·ofSecuricyn~lili~
-~-----~--~·--·-~-· '-"-'"'
Security Deposit may be refunded 3 months after the due completion of the contract provided
(a) Bills against all work orders have been paid.

(b) A No-demand Certificate (IAFA-451) has been rendered by the Contractor.
0 DallY Retil~
The Contractor must submit the following two returns (in duplicate) by 1000 hours every day
eGE:
(a) All labour employed on the contract.
(b) All mechanical transport engaged, showing recorded weight capacity of each vehicle.
o special arrangement shall be made to afford drinking water facilities to Contractor and his
but the normal facilities available in the area shall be made available to them without any
B~eakag~!Jid ~os_se~
e Contractor shall be responsible for all breakage and loss sustained in transit except when
ss is within permissible limits stipulated in Condition 17. It is the responsibility of GE to
e these limits in the tender (before going out to tender).
Tel'IJ!i.nati_on_ of Contract befor., CQ,l#IJfi(imt!
ontract may be terminated by either party after a period of three months from the date of
encement provided that six weeks notice in writing to that effect has previously been given to
er party.
Rates for·Addltlonatwclti
e rate to be paid to the Contractor for any additional work not specified in the Schedule 'N.
fixed by the Accepting Officer within thirty days of receipt of Work Order by the Contractor.
lf conditions of IAFW-2320 are amended, the above provisions shall also be deemed amended accordingly. Therefore
-2320 shall be referred before applying above provisions.
SECTION
CONTRACTS FOR APPOINTMENT OF AUCTIONEERS

FOR DISPOSAL BY AUCTION OF SURPLUS
CAMPS/BUILDINGS BELONGING TO MES
15.1 The MOD (Fin/works-l) has directed that the panel of auctioneers be finalised in terms of para
165 of RMES through competitive tendering and has stated that there is no need to approve
panel of auctioneers as per past practice.
15.2 In view of above the following procedure shall be followed :
(a) AB per para 165 of RMES, auction sales will be conducted by auctioneers appointed for
each district by the CWE in respect of properties of MRP value not exceeding Rs. 5 lakhs
each and for each command by the CE for properties exceeding this value. Since quantum
of disposal work is not much at each CWE level, it has been decided that auctioneer will be
appointed by the CE command for each command irrespective of the MRP value o
property. Auctioneer will be appointed for the period of one year.
(b) The auctioneer will be appointed through normal tendering procedure by invitin
applications for issue of tender through notice of tender and press advertisements.
(c) The renderers will be selected on basis of the past performance and other credentials.
Since there is no category for enlistment for auctioneer work and there are no enliste
Contractors in this category; therefore no permission is required from next higher enginee
authority i.e., E-in-C for issue of tenders by CE Commands. Command CEs may like t
have a panel of auctioneer firms after due verification of their credentials.
(d) Tender documents shall be issued on IAFW-2353 and tenderers will be asked to quot
percentage below/above on the commission amount calculated at the rates given in firs
schedule of IAFW-2353.
(e) The renderers will be asked to submit security deposit/ Bank Guarantees of Rs 10000/- fo
each Command alongwith tender documents in terms of para 403 (viii) and para 503-i) o
MES Regulations. This security deposit will be refunded to unsuccessful tenderers afte
acceptance of lowest offer.
(f) Necessary contract agreement on IAFW-2353 will be concluded by the CE Command wit~
the lowest tenderer and security deposit/Bank Guarantee as stated above shall b~
deposited with concerned PCDNCDA. !
I
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{118)
Part II
conTnncT sTnGE:
SECTION
CONTRACT ADMINISTRATION-GENERAL
PRINCIPLES AND SPECIMEN LETTERS/FORMATS
16.1 General
16.1.1 The contract stage includes day to day correspondence with the Contractors and
decisions on contract matters. For an effective contract administration a thorough knowledge of
IAFW-2249 (General Conditions of Contracts), preambles of SSR and relevant contract provisions is
a must. In addition to this, the Officers and staff dealing with contracts are expected to have
working knowledge of law particularly of Indian Contract Act-1872, Arbitration and Conciliation
Act-1996 (ACA-1996) and Right to Information Act-2005 apart from latest orders of vigilance
machinery of Government of India and other statutory rules and regulations. In the modern era of
Internet, the officers and staff are not required to run around to different offices for obtaining such
information. Some of the useful websites in contract administration are enumerated below :
(a) www.cvc.gov.in Home site of Central Vigilance Commission
(b) www.bis.org.in Home site of Bureau of Indian Standards
(c) www.cic.gov. in Home site of Central Information Commission (under Right to Information Act 2005)
(d) www.tin.nsdl.com/eTDS Link site of Income Tax Department of India for Tax deduction at source.
(e) www.courtnic.nic.in Home site of Supreme Court of India and all High Courts of India.
(i) Link JUDIS This site displays detailed court Judgements and affords sorting by Case No, judge name,
date etc.
16.1.2 During contract administration officers have to have a just and fair approach to the
problems and convey their decisions in a transparent manner leaving little chance for review at a
later date. The disposal of cases in a time bound and expeditious manner is always beneficial to
Government. As such every effort should be made to cut bureaucratic delays and too many channels
of recommendations. The language used in communication with the Contractor shall be polite and
official.
16.1.3 The contract administration means fulfilment of contractual obligation and generally
involves following actions :
(a) Nomination of Engineer-in-Charge, issue of work order No 1 and handing over of site
within two weeks after acceptance.
(b) Omission DOs for all provisional items and adding back DOs for provisional quantities and
prime cost sum. In case add back DO details are not ready due to any reason whatsoever,
the provisional quantities catered for in respective measurable schedules shall be ordered
back on the Contractors.
(c) To keep a watch on deviations from contract provisions and issue necessary notices to the
Contractor as and when required.
(d) Processing of running account payments including checking of escalation claims.
(121)
122 PART-II : CONTRACT STAGE
(e) Finalisation of deviation orders, amendments to contracts, decision of competent

authority on disputed matters, keeping watch on BGB and issue of completion certificate.
(f) Reconciliation of issue and receipt of stores under Schedule 'B', forwarding of abstracts of
work done and recovery statement, processing of final bill and initiation of performance
reports of Contractors.
(g) Monitoring of defects observed during defects liability period and issue of certificate of
defect rectification by the GE.
16.1.4 During currency of work and during defects liability period, a number of letters/notices
are required to be issued. Depending on progress/hold ups at various stages of the contract, the
formats for these notices are given in Appendix 16.1 to 16.17.
16.1.5 Guidelines on some of the topics of contract administration are given in succeeding
paragraphs of this section and the balance points are covered in subsequent sections.
16.1A Measures to incorporate genuinemateriailn~~~
(a) For obtaining sample approval, contractor will download list of BIS marked manufacturers
from BIS site www.bis.org.in. He will select manufacturer(s) meeting contract
specifications criteria and handover the report with a request letter to Engineer-in-Charge
with his signatures. The Engineer-in-Charge will verify its correctness by visiting the BIS
site and process it to GE with his recommendations. AE/JE (QS and C) of GE will recheck
the same from internet, endorse his recommendation and put up for approval of GE.
(b) The printout having signature of all concerned including GE will be kept on record and
approval will be conveyed within 7 days of contractor's request.
(c) After sample approval, GE shall send an e-mail to manufacturer (not the authorized
dealer) intimating him name of firm, approx quantity of material being procured by the
contractor and request the manufacturer to ensure that his product only is purchased by
the contractor from proper authorized source. A printout of the e-mail sent to
manufacturer shall be kept on record duly signed by GE and a copy thereof will be sent by
post to the manufacturer.
(d) In cases involving suspected procurement of spurious material, purchase vouchers shall be
verified through the manufacturer and proof of payment shall be obtained from the
contractor. The payment of such doubtful material shall be allowed only after GE satisfies
himself about the genuineness of material.
16.2 Passing andlnspectt~t~nr«filij
16.2.1 Para 267 of theMES Regulations enjoins on CEs and CsWE to inspect works in progress
from time to time to ensure that :
(a) Works are executed in accordance with approved designs and without unauthorised
deviations or additions ;
(b) Supervision is efficiently directed in ensuring that the quality of materials and
workmanship is in accordance with the specifications; and
(c) The work is proceeding satisfactorily.
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PART-II : CONTRACT STAGE 123
16.2.2 With a view to improve the quality of work, passing and inspection of works by
Engineers at all levels should be intensified.
16.2.3 Chief Engineers would, therefore, lay down the periodicity of inspection by GEs/CsWE.
During inspections CEs/CsWE should satisfy themselves that GEs and Engineer-in-Charge do not
shirk their responsibility in regard to passing of work at important stages and sign the required
columns of the works passing register after each inspection.
16.2.4 It is desirable and necessary that during inspections. CsWE and GEs have with them a
comprehensive check list to go through various connected aspects with proper administration of
contracts and to ensure that follow up action is taken promptly by all concerned.
16.2.5 In order to improve the quality of work, Chief Engineers must ensure that samples of
workmanship of various trades for approval of the GE, are executed in a selected building having
sanitary annexe included in the contract and passed by the GE and kept as a guide for the
Contractor, as also for the supervisory staff.
16.2..6.1 Attention should also be paid to the common defects noticed during technical
examination of works. These observations reveal that adequate steps have not been taken to
overcome defects/irregularities of repetitive nature already pointed out by the ADGTE in his Half
yearly reports. CE are, therefore, requested to take deterrent action against the defaulters.
16.2.6.2 To ensure effective supervision and control of works, it is suggested that the
supervisory staff should work out their own list of defects and errors from ADGTE's reports and
based on their own experience according to the nature of works entrusted to them as aide memoire,
and check the works accordingly before passing/measuring the same. CEs and CsWE should also
make it a point during their inspection to check such lists, which should be available with the
supervisory staff and satisfy themselves in this regard.
16.2.7 Precautions against risk and MES safety code
16.2.7.1 Condition 36 of IAFW-2249 provides that the contractor shall be responsible for taking
precautions to prevent loss or damage from any and all risks and for the provision of all protective
works etc. required for the purpose until the works have been handed over complete to the
Engineer-in-Charge. The MES safety code included in IAFW-2249 vide Annexure 'B' lists some of
the precautions and steps which the contractor is required to take with a view to prevent chances of
any loss or damage to the works or the workmen employed thereon. It therefore, becomes
incumbent upon the administrative and the supervisory staff incharge of the works to ensure that
the contractor takes suitable precautionary measures to ensure that neither the works are
endangered at any stage during execution nor are workmen exposed to risk of accident.
16.2.7.2 It is essential that contractor's attention is drawn to the provisions in IAFW-2249 for
taking suitable precautionary measures for safety of structure especially when constructions reach
critical stage. If a contractor does not pay heed to the instructions given to him, his work should be
suspended in full or in part till such time he takes satisfactory measures for ensuring safety of the
works under construction.
16.3 Visit to site of works by $ueyeyQ~
16.3.1 Every half yearly CTE's report brings out some cases wherein specifications included in
contracts provide for materials/ workmanship which are not in conformity with the quality of
materials manufactured in the country or available in the locality.
---------------------------------------------
16.3.2 In order that the specifications are realistic, it is essential that Surveyors visit works in
progress so that they are fully conversant with the quality of materials/workmanship available in
every locality. Where Indian Standard specifications contain alternative specifications or indicate
permissible tolerances, the particular specification of contracts should categorically indicate the
particular material and tolerances out of the alternatives mentioned in the IS.
16.3.3 Defects similar to those pointed out byTEs, when noticed by Surveyors during their visit
to site, should be immediately brought to the notice of the CWE to enable him to instruct the GE to
either get these rectified or to issue minus DO where rectification is not possible.
16.3.4 CEs/CsWE will also ensure that their Surveyors visit works frequently during execution
and avoid repetition of discrepancies in specifications.
16.4 Assistance to contractOr
16.4.1 On being awarded a contract, a Contractor may sometime request the MES authorities
that his application for allotment of wagons or trucks and for permits for materials in short
supply such as steel, diesel, petrol etc, be recommended and forwarded to the appropriate
authorities. Such application may be forwarded by the MES authorities to the appropriate
authorities for their consideration. While doing so, a certificate stating that the wagons, trucks,
petrol or diesel as the case may be for which the Contractor has made a request is required for
executing defence works may be given.
16.4.2 In order to safeguard Government interest the following action is outlined :
(a) Before arranging any concession for a contractor, it should be ascertained whether it
would result in an un-intended benefit to him. If so, it should be evaluated and adjustment
in contract rates/ recovery to be made from the contractor before allowing him to make
actual use of the concession.
(b) The contract should be suitably amended before the contractor is permitted to operate the
concession.
16.5 Cl!!arance of Site on Completion ofworks
16.5.1 Temporary workshops, stores, offices and other structures which are constructed by a
Contractor in connection with execution of works are sometimes left standing at the time the works
are completed and taken over from him. This practice encourages unauthorised encroachments and
is also otherwise undesirable. It must therefore be ensured that all such structures are cleared away
and the site reinstated and left clean and tidy to the entire satisfaction of the Engineer-in-Charge at
contractor's expense. This is obligatory under Condition 32 of the General Conditions of Contracts
(IAFW-2249).
16.6 Defects liability peJ;i!}d
16.6.1 Numerous demands for minor repairs like easing of doors and windows, stopping of
leaks in water taps, easing of switches, clearance of drains, adjusting flushing tanks and the like, are
normally received from the users on occupation of newly constructed buildings. Though the
contractor is required to rectify all defects that come to light within the defect liability period of the
contract, it may not always be possible to allow the repairs of the nature stated above to wait till
such time the formalities of giving notice to the contractor are gone through and his attending to
such minor repairs. In order to attend immediately to such defects in newly constructed buildings
which though may be minor but still irksome to the users, the CWE!GE should be able to persuade
the contractor to deploy a team of suitable tradesmen under the administration of the GE so that the
users could conveniently and expeditiously avail of the services of this team. This arrangement is
very essential particularly in case of residential accommodation and for the first few months after
completion of the work when some of the teething troubles are likely to be brought to the notice of
GE by the users.
16.6.2 Condition 49 of IAFW-2249 requires that the GE shall certify to the Contractor the state
of the item or group of the item of the works at the end of the defects liability period. This certificate
is important as the contractor can claim refund of his security deposit only after issue of this
certificate and it should therefore be issued on the expiry of the defects liability period. Attention is
also invited to the provision of para 375 of MES Regulations.
16.6.3 Whether any particular defect is due to unsound, imperfect or unskillful workmanship or
due to normal wear and tear or user's negligence, should always be kept into consideration before
giving notice to the Contracts for rectification under defects liability period.
16.6.4 To make fullest use of defects liability period, it becomes mandatory for the Accepting
Officers (CsWE in case of CE's Contracts) to order a BOO to identify the defects developed in the
work due to unsound, imperfect or unskillful workmanship or due to inferior materials used in the
work at least two months before expiry of defects liability period. The defects observed should be
duly notified to the Contractor for rectification under condition 46 .of IAFW-2249.
16.7 Confidential reports on the performaneeotContr&ct!#s
16.7.1 Performance report of Contractors shall be initiated as under :
Stage-! : 50% of the contract period in respect of following:-
(i) All 'S' and 'SS' class contractors irrespective of the work and period of contract.
(ii) All un-enlisted Contractors where either value of work is more than Rs. 7.5 crores or
period of contracts is more than 18 months.
Stage-II : Within one month of completion of work for all works.
16.7.2 Format of PR stage I/II is given in Appendix-16.18. PR shall be reviewed upto level of
Accepting Officer except GEs contracts which will be reviewed upto CWE levei/CE level (where
there is no CWE Office).
16.7 .3 In case of'S' and 'SS' Class Contractors, CE Command shall be final level of review.
16.7.4 Performance reports shall be processed to the Registering Authorities by final review
authority.
16.7 .5 The Registering Authorities will maintain the records of the contractors and review their
performance from time to time. If a contractor consistently scores below 60 marks, he may be issued
proper diligence notice(s) for improvement in performance by Registering Authorities and action
may also be taken against him as per Standardised Code of Registration, Demotion, Removal,
Suspension of Business and Banning of Business etc. of Contractors (Refer sub-section 1.16).
SECTION
TIME FOR COMPLETION OF WORK, EXTENSION OF TIME,

COMPENSATION FOR DELAY, SUSPENSION OF WORK
17.1 Time for Completlon.otwol'k

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17.1.1 General : Condition 50 of General Conditions of Contracts (IAFW-2249) stipulates

that:
(a) Time is of the essence of the contract and in the event of delay in completion of a work,
Government is entitled to recover compensation from Contractor,
(b) The Accepting officers have authority to extend period of completion under certain
circumstances, if extension is justified.
17.1.2 Cases continue to be brought to the notice of E-in-C HQ which reveal that extensions
granted have not been commensurate with completion period initially allowed. It appears that it has
not been appreciated that the completion period allowed in a contract has direct bearing on rates
quoted and that more competitive quotations are received, if completion period allowed is
reasonable. It is, therefore in the interest of both the Government and the contractor that adequate
period of completion is allowed in every contract.
17.1.3 A scrutiny of completion periods in several contracts and of extensions granted revealed
that if proper attention had been paid to the following aspects, extensions could have been
minimised :-
(a) Collection of correct ground data initially and devoting more time to proper planning .
(b) Giving more time to GEs to comment on provisions made in tender documents to enable
them to suggest modifications to suit site factors/ local conditions.
(c) Checking of layout and grouping of buildings to fit these on the ground and consulting
users, where possible, particularly in case of technical buildings.
(d) Agreeing (in writing) with users, a well thought out programme for handing over
sites/buildings, before going out to tender.
(e) Earmarking for implementation in future construction, failing which, keeping to the
absolute minimum, changes initiated by users or improvements considered desirable by
engineers, during the course of construction.
17.1.4 The relevant factors must be taken into account by an Accepting Officer before laying
down adequate completion period for a work.
17.1.5 In case of important or urgent works, Accepting Officers are advised to consult
Contractors who have experience of work in the particular area and ascertain their views with
regard to completion period considered reasonable.
17.1.6 A careful analysis should be made of extension granted in respect of works executed
during the course of the previous two to three years. This should be of great assistance in fixing
completion period.
{126)
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17.1.7 Although it is appreciated that in certain cases local staff authorities may exert pressure
for reducing completion period, engineers must be careful to ensure that the minimum period
required for completing a work to an acceptable standard is not reduced.
17.2 Extel\Si(}ijlfl!itBi
11.2.1 Condition 11 of General Conditions of Contracts (IAFW-2249) provides for extension of
time for completion of work for causes beyond Contractor's control, as mentioned therein. This
condition also provides that the Contractor shall give notice in writing to the GE of the happening of
any event causing delay immediately but not later than 30 days, of the happening of the event and if
he fails to do so, he shall forfeit his right to claim extension of time for the delay. It should,
therefore, be impressed upon contractors that they must apply immediately after the need for
extension arises.
17.2.2 Contractor should always be advised to forward his application well in time through the
GE but, at the same time, he should always be asked to forward an advance copy to the
Accepting Officer so that the latter could ensure expeditious action in the matter.
17.2.3 The practice of granting piecemeal, interim and provisional extension shall be
discouraged. Such practice in the past has weakened Government case in arbitration as the
Contractor's have taken stand that they were unable to plan their resources due to uncertainty about
grant of extension of time. It is therefore desirable to assess the time required for completion of
balance work and grant extension of time in a manner as if the period of completion had been
revoked and refixed.
17.2.4 Extensions may also become necessary where additional work has been ordered on a
contractor through a deviation order. In such cases, the extension should be decided by the
competent authority while approving the deviation order and should be covered in the DO itself
without waiting for an application from the contractor.
17.2.5 There may be some occasions where delay is mainly attributable to non availability of
Govt. stores or such other causes attributable to Government. In such cases the Accepting officer
may himself consider the matter and grant the extension as necessary to the contractor without
waiting for application from him.
17.2.6 On receipt of the comments/information from the GE/CWE, the Accepting Officer will
take a prompt decision on the extension of time to be granted and inform GE/CWE accordingly
with a copy to CDA. On CDA:s copy, reasons for the extension should be indicated in brief.
17.2.6.1 Extension of time by Accepting Officer(s) shall be regulated as under :
(a) CWE/GE's Contracts. 25% of the original period of contract or three months,
whichever is more.
(b) CE's Contracts. 25% of the original period of the contract or nine months whichever is
more.
17.2.6.2 All cases of extension of time beyond the period specified above, shall be reported to
the higher authorities; CE Zone and CE Command respectively. CEs Command/Zone are also
advised to identify projects from the QPR (Quarterly Progress Reports) which are not progressing as
per Schedule and investigate the causes for delays. Cognizance need to be taken of lapses and
disciplinary/ administrative action initiated both against the executive(s) and the contractor(s) as
warranted. Failures on the part of contractors to meet the contractual obligations should also be
ret1ected in the Performance Report(s).
17.2.6.3 Extension beyond the limits specified above should therefore be granted by the
Accepting Officer only after submitting the report (as per format given in Appendix-17.1) to
higher authorities and after carefully weighing all the pros and cons of the issues mentioned above
including possibility of disciplinary/adm action for granting extension on invalid grounds or more
than that justified. However, no prior approval of next higher authority is required for
grant of the extension by the Accepting Officer.
17.2.7 On receipt of a copy of this letter, the GE will immediately prepare and issue a deviation
order for extension of time, also showing the financial effect as 'Nil'.. Such deviation orders for
extension of time should be endorsed as "technically checked" by JE (QS & C)/AE (QS & C) of GE,
but there is no necessity for further technical check or signature of DCWE/ACWE (Contracts) of
CWE or the CWE since the letter of the Accepting Officer is already quoted on the deviation order
and there is no further technical check involved in such deviation orders.
17.2.8 It is important that deviation orders for extension of time are signed by both the parties
well in time i.e. soon after the decision of the Accepting Officer to extend time has been received by
the GE. This should normally be before the expiry of the date(s) of completion prescribed in the
contract/phase of the contract.
17.2.9 Where the decision with regard to extension of time has not been conveyed to the
contractor by the GE before the date(s) of completion prescribed in the contract/phase of the
contract, the GE shall ensure that immediately on expiry of the prescribed date, notice of
Government's intention to claim compensation on standard format is issued to the contractor.
17.2.10 The cases of extension of time should be dealt with utmost promptitude. The Accepting
Officer should ensure that the decision in this regard is conveyed to the Contractor before the expiry
of the date(s) of completion prescribed in the contract/ phase of the contract and where it is not
practicable, he should make all efforts to ensure that such cases are, as far as possible, finalised
within 12 weeks from the date of completion of the work. Once a final decision has been conveyed
to the Contractor, it shall not be reviewed either by the Accepting Officer himself or his successor in
office.
17.3 Compensation forDehtf
17.3.1 According to Condition 50 of lAFW-2249, the compensation for delay is leviable on the
value of work as actually ordered including all deviation orders. The following points are to be
noted:
(a) Notice in terms of Section 55 of Indian Contract Act 1872 immediately after expiry of
contract period is mandatory to sustain Govt's claims of compensation in arbitration.
(b) In case of cancellation of contract, Government is not entitled to claim compensation if the
contract is cancelled before date of completion of work.
(c) In case of cancellation of contract afrer date of completion of work, Government is entitled
to claim compensation as per condition 50 in addition to recovery of extra expenditure
incurred in risk and cost contract.
: CONTRACT STAGE 129
(d) Attention is invited to Supreme Court judgement of liquidated damages in case of

Fateh Chand Vs Balkishan (Air 1963 SC 1045). This judgement needs to be kept in view
while deciding the cases of compensation. Extract of judgement is given in Para 32.21.
17.3.2 Under Condition 11 of IAFW-2249, General Conditions of Contract no doubt an
l'lilgillleE~r Officer is mentioned as the final authority to grant or refuse extension of time. Hence the
lllnt•fest1on whether extension should have been granted or not, cannot be agitated before the
larbitJ:atcJr and he has no jurisdiction on this aspect.
17.3.3 Wherever possible, documentary evidence of losses incurred by Government on account
delay in completion of work should be preserved and produced during arbitration. For this
1nun:1ose, suitable letters from users may be obtained and kept on record.
3.4 Para 494 of MES Regulations empowers CE and CWE to reduce the compensation for
ldiljlay. The CE may waive or reduce compensation in the case of contracts concluded by him or by
Similarly, a CWE may waive or reduce compensation in case of contracts concluded by GEs.
17.3.5 The concurrence of the PCDNCDA for abandonment or reduction of Government claims
compensation is not necessary, but reasons will be communicated to PCDNCDA as soon as a
llclaun is abandoned or reduced.
17.4 of Work and
17.4.1 Refer Condition 9 of IAFW-2249.
17.4.2 Suspension of work under Condition 9 of IAFW-2249 can be ordered for any of the
following reasons :
(a) On account of any default on the part of the Contractor, or
(b) For proper execution of works or part thereof for reasons other than default of the
Contractor, or
(c) For safety of the works or part thereof.
17.4.3 Following are some examples which fall under categories 17.4.2 (b) and (c) above.
[a] Under 17.4.2 (b)
(i) When there is doubt whether the works would be required to be executed at all;
(ii) When accommodation requirements and lay-outs are to be revised for administrative
reasons;
(iii) When changes in designs or specifications have become unavoidable and these cannot be
ordered within a reasonable time.
[b] Under 17.4.2 (c)
(i) When the works or part thereof are in danger due to anticipated natural calamities, enemy
action, civil war, etc.
17.4.4 Suspension order for reasons 17.4.2 (a) above should be issued with the prior approval
of the CWE in case of contracts concluded by CE and the CWE and, by the GE in case of contracts
concluded by him.
130 PART-fi : CONTRACT STAG
17.4.5 Suspension order for reasons 17.4.2 (b) and (c) should be restricted to the absolut
minimum issued only when inescapable, with prior approval of :
(a) The Chief Engineer in case of contracts concluded by him or his CsWE.
(b) The CWE in case of contracts concluded by his GEs.
17.4.6 If works are suspended on account of default on the part of the Contractor vide par
17.4.2 (a) above, the Contractor is not entitled for any extension of time on resumption of work
This must be made clear to the Contractor at the time of issue of suspension/ resumption orders.
17.4.7 When works are suspended due to reasons other than default of the Contractor vide par
17.4.2 (b) and (c) above:
(a) The Contractor shall be entitled to an extension of time equal to the period of every sue
suspension plus 25% extra time for completion of the item or group of items of works fo
which separate period of completion is specified in the contract and of which th
suspended work forms a part.
(b) In case the total period of all suspensions due to reasons vide 17.4.2 (b) and (c) in respec
of an item or group of items of work for which a separate period of completion is specified
exceeds 60 days, the contractor. shall in addition to the aforesaid extension of time b
entitled for compensation in respect of salaries and/or wages paid by the contractor to hi
employees and labour at site actually remaining idle during the period of suspension.
(c) However, when the work is suspended due to reasons 17.4.2 (b) and (c) above, for mor
than four months at a time, the contractor has the option to serve a written notice on the
GE requesting his permission within fifteen days of receipt by him (G.E) of the said notice
to proceed with the works or part thereof in regard to which progress has been
suspended. If such permission is granted or when the contractor decides not to make an~
request to the G.E, proceeds with the works, the contractor shall be entitled for extension,
of time as in para 17.4.7 (a) above and for compensation in respect of salaries and/o~j
wages paid by the Contractor to be employees ang labour at site actually remaining idl~
during the period of suspension as in para 17.4.7 (b) above. In cases wherein th~
contractor requests for permission to proceed with the works and such permission is no~
granted by the GE within a period of 15 days from the date of receipt of notice by the GE \
the contractor may treat the suspension where it affects only a part of the works as1
omission of such part by Government under Condition 7 of IAFW-2249 and abandonmen~
of the works by Government, where it affects the whole of works. In either case, it i~
necessary that the Contractor notifies his intention within a period of 10 days form th ;
date of expiry of 15 days notice as aforesaid. In case the contractor treats such suspensio~
as abandonment of the works by the Government, the contractor shall, besideS,~'
compensation mentioned in para 17.4.7 (b) above, be also entitled to compensation for;!
loss on materials collected which could not be utilised on the works including 5% foi1!
overheads on materials.
01
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17.4.8 In view of above, all possible steps should be taken to assess the probable period otf
suspension realistically; taking into consideration. all the aspects and to restrict the period o ;'·
suspension to the minimum. CsWE must ensure that in case of GE's contracts proposals fo .
suspension of work are properly and carefully scrutinised by them before approval is accorded. J
17.4.9 Whenever it is decided to suspend execution of work, the anticipated period of

suspension shall be given in the order of suspension. If this anticipated period of suspension is
expected to be exceeded, the revised anticipated period of suspension shall be intimated to the
contractor, as soon as possible but not later than the date of expiry of the anticipated period of
suspension previously mentioned. If the suspension is ordered on account of any default on the part
of the Contractor, this fact shall be indicated in the suspension order.
17.4.10 Every suspension and resumption order shall be sent in duplicate in the form of a letter
to the Contractor who will be requested to return one copy for record after signing it. However,
when the works are suspended on account of any default on the part of the Contractor, obtaining
contractor's signature may be dispensed with. A copy of every suspension and resumption order
shall be endorsed to the Accepting Officer immediately after it is issued, quoting authority for the
order. Copies of suspension and resumption orders shall be filed with relevant contract documents.
17.4.11 When the works are suspended for reasons stated in para 17.4.2 (b) & (c) above, a
deviation order shall be issued immediately after resumption of works, indicating the changes in
date(s) of completion. If the total period of all suspensions is more than 60 days, the deviation order
shall also indicate the financial effect in respect of salaries and/ or wages paid by the Contractor to
his employees and labour at site which has actually remained idle during the period of suspension.
17.4.12 In order to avoid disputes at a later date, GEs must keep a record of Contractor's
employees and labour at site actually remaining idle during the period of suspension. This record
shall be signed by the GE and the Contractor with date. Similar record of materials collected but
which could not be utilised in the work, shall also be maintained by the G.E.
17.4.13 When the Contractor gives notice to treat the suspension as an omission of such part by
the Govt. under condition 7 of IAFW-2249, or as an abandonment where it affects the whole of
works, Contractor shall be paid at contract rates for the full amount of the works executed. The
Contractor will be permitted to take back at his expense the materials collected which could not be
utilised on the works, provided advances, if any, in respect of any such materials are fully adjusted.
Such materials shall be removed by the contractor with the written approval of the Garrison
Engineer. The Contractor shall intimate the GE in writing supported by documentary evidence, if he
has incurred any loss on such materials, in order to enable the GE to assess the loss to the
Contractor on such materials.
17.4.14 Wherever the works are to be suspended under condition 25 of IAFW-2249, which
would bring it under the classification of suspension due to Contractor's default, prior sanction of
the CWE should be obtained for contracts concluded by GEs, CsWE and CEs.
17.4.15 Suspension of work under Condition 9 of IAFW-2249 will not be ordered for reasons
given in Condition 11 nor, for any temporary stoppages due to inclement weather e.g. temporary
stoppage of concreting in frosty weather, etc.
17.4.16 Proper planning is essential to ensure that delays in execution of works do not occur as
a result of default on the part of MES. When delays occur inspite of proper planning, vigorous action
must be taken to reduce such delays to the absolute minimum.
I
SECTION
INTERIM PAYMENT (RARs), RAR UNDER COMPENSATION,

BGBs IN LIEU OF RETENTION MONEY,
MEASURES TO AVOID OVERPAYMENT IN RARs
.18.1 Interim Payments (BAR) Advances On!Ccol.llltc-'P!ii~e~~~~·

18.1.1 The General Conditions of Contracts (IAFW-2249) applicable to Lump Sum, Term and
Measurement Contracts and those applicable to other types of contracts provide for claim by
Contractors for payment of advances on account. These lay down interalia, the intervals at which
such payments become due and the percentage of advance payment on the value of work done and
of materials collected at site.
18.1.2 Advances on materials issued under Schedule 'B' lying at site but not incorporated in
works are payable after the cost of such materials is recovered from the Contractor, in a manner
similar to advance on materials directly arranged by him.
18.1.3 Payment on account is admissible to a Contractor even in a case where value of stores
issued to him under Schedule 'B' of the contract exceeds the value of work actually done.
18.1.4 Advances of fabricated materials such as trusses, joinery; reinforcement, etc., brought to
site but not incorporated in the work are also payable at 85% of the amount worked out as under :-
(i) Cost of materials at site (supplied only)
plus
(ii) Cost of fabrication.
18.2 Assessment of value of work executed
18.2.1 Yardstick will be included in tender documents in all lump sum tenders for common and
standard buildings. Yardsticks shall be prepared based on estimates (at market rates) done at
tenders stage. The yardsticks shall be prepared by JE (QS&C) of the office of Accepting Officer and
shall be technically checked by AD/Dy Dir/Jt Dir (Contracts) of the office of Accepting Officer at the
tender stage. The GE shall also forward his comments on yardsticks in respect of CWE's/CE's
contracts at tender stage itself along with other comments. Comments received from GE as well as
from renderers (if any) shall be duly considered and wherever required, necessary corrections shall
be made to yardstick while issuing other amendments to tender documents. Yardsticks shall be
approved by the Accepting Officer at tender stage.
18.2.2 In case of complicated and unusual buildings, where inclusion of yardsticks at tender
stage is considered not feasible, the Accepting Officer shall record his reasons for the same. The
yardsticks in such cases shall be prepared by JE (B/R) & AGE of concerned Sub Division
immediately on acceptance of contract and shall be technically checked by JE (QS&C)/AGE
(Contracts) of GE office. In respect of GE's contracts, yardsticks shall be approved by the GEs. In
respect of CWE's/CE's contracts these shall be submitted to the office of CWE for further technical
check by DCWE/ACWE (Contracts) in CWE office and shall be approved by the CWE. Copy of
(132)
pART-U: CONTRACT STAGE 133
approved yardsticks in respect of CE's contracts shall be forwarded to the Accepting Officer for his
record and comments. Where there is no CWE office, yardsticks in respect of CE's contracts shall be
submitted to the office of CE for further technical check by the AD/Dy Dir/Jt Dir (Contracts) of CE
office and shall be approved by the CE.
18.2.3 The yardstic:. shall be finalised well in time so that the payment of RARs is not held up
on this account. The 3rd RAR will be paid by the GE only after technical check and approval of
yardstick. Accepting Officers shall personally monitor this aspect.
18.2.4 While preparing and approving yardsticks, it shall be ensured that sufficient funds are
available towards internal and external finishes of the project. In case of contracts progressing slow
towards final completion stages, the Accepting Officer may order for technical check of RAR by
ACWE/DCWE (Contracts) of CWE's office. However, there should not be any unreasonable delay on
this account, and Accepting Officer shall closely monitor such contracts.
18.3 Materials Brought!l.tSita
18.3.1 Materials proposed to be included in "on account" payment should be those which have
been brought by the Contractor to the site for incorporation in works, and of quality and
specifications stipulated in the contract, and approved by the GE. The rate allowed in "on account"
payment for such materials shall be the market rate or the rate derived from the contract, whichever
is lower. The quantity of such materials should also be checked carefully to ensure that materials in
excess of requirement for the work in question are not paid for. The form for statement of stores to
be attached to RAR (Form IAFW-2263) shall be as per Appendix 18.1
18.4 Preparatlon.of RAR
18.4.1 With a view to ensure that Contractor's claim for interim payment allows for all
recoveries due from him in respect of Government stores, tools and plant, water and electricity
charges, rent for accommodation or any other recovery agreed/withholding of outstanding
amounts, (in particular against STE's observations) against the contractor from RAR under
Condition 67 of IAFW-2249 upto the date of the bill, the GE shall forward to the Contractor a
statement of transactions of all debits and credits upto date, in duplicate out of which the contractor
will retain a copy for his office use, and the original signed by him (the contractor) and attached to
his interim bill in support of the recovery on account of debits raised against him by the MES. All
previous "on account" payments made to the Contractor should also be taken into account before
making a further "on account" payment.
18.4.2 All deviation orders should be initiated, finalised and distributed within six weeks ftom
the date of ordering these on the Contractor through a letter from the GE. Minus DOs in respect of
completed stages of works will also be taken into account and payment restricted accordingly. Star
rates for proprietary materials shall be finalised before allowing payment therefor. Major items lik<
Cement & Steel being non Sch. 'B' now; it should be ensured by the executives and technical!_
checked by AGE (Contract)/JE (QS & C) in GE's office that estimated quantities of major stores vi;o.
Cement & Steel have been incorporated in the work to avoid any chance of underconsumption of
the stores into the works at each stage till final completion of the work. This aspect shall be checked
by DCWE/ACWE (Contract) in CWE's office/Surveyor Officer in CE's office (where there is no CWE
- Office) while exercising technical check of Final Bill. Necessary store statement in this regard shall
form part of RARs/Final Bill.
PART-II : CONTRACT STAG!!
!.4.3 After completion of work and before receipt of the final bill, RAR payments shall
'continue to be governed by the terms of the contract i.e. restricted to percentages stipulated in the
condition for advances on account.
18.4.4 In case of any dispute, undisputed part of bill can be considered for interim payment and
disputes be referred to arbitration. In case during arbitration proceedings any agreed payment
becomes due this payment shall be released and Arbitrator informed accordingly.
18.4.5 To ensure that the correct procedure is followed, every Interim bill shall be accompanied
by the following certificates signed by the GE :
"CERTIFIED THAT:
(a) No work has been ordered on the Contractor without a proper Deviation Order duly
approved by the officer authorised to do so under existing orders and without settlement
of rates with the Contractor.
(b) All special rates involved in the deviation orders have been checked and approved by
competent authority.
(c) No Government stores and T&P have been issued without prior settlement of the issue
rates.
(d) All amendments including those necessitated by issue of stores and T & P not included in
Schedules 'B' & 'C' have been approved by the competent authority.
(e) All recoveries in respect of stores and T&P issued to the Contractor under Schedules
'B' & 'C' and in respect of water, electricity and other miscellaneous charges have been
made to date.
(f) All unresolved disputes have been referred to proper authorities for decision.
(g) All transactions with the Contractor have been recorded on regular official forms at the
correct time.
(h) The Contractor has/has not submitted his final bill".
18.5 Running account payments. ·'tit·. cbntta.ctort wllrlt}rtg 11Ad'lr' Go\Yetli~t~~;>t~t~ln.·•••··~~
compensation tor delay fit ~ompt~tfoJIOf"W'oi:ij$ •;r< ·~~.~ ~ l~i;;;·;. ·• ·:
18.5.1 When a Contractor has failed to execute the work within the stipulated period, he may
be permitted to complete the work subject to the Government reserving the right to claim
compensation for delay under the relevant condition of the General Conditions of Contracts.
18.5.2 Such claim of RAR shall be checked by Surveyor Officer of CWE (or of CE where there is
no CWE in the chain of command). In making payment on account to the Contractor, the following
procedure will be adopted :
(i) The value of work actually executed by the Contractor will be carefully worked out by the
Garrison Engineer and checked at the CWE's level. The value of defective work carried out
by the Contractor will not be taken into account.
(ii) The value of materials brought by the Contractor to the site for incorporation in the work
and properly stored to the approval of the Engineer-in-Charge will be accurately worked
out and checked by the G.E. These materials shall become the property of the Government
and shall not be allowed to be removed from the site.
(iii) All recoveries due from the Contractor in respect of Govt. stores, T & P, water and
electricity charges, rent of accommodation or on any other account will be fully
determined and checked by the Garrison Engineer.
(iv) All previous payment made on account will be added up.
(v) If the total of (i) plus 85% of (ii) minus the sum of (iii) and (iv) exceeds maximum
compensation recoverable under the contract, the same may be paid to the Contractor as
RAR. However, if the compensation amount is lower than applicable retention money; the
retention money in lieu of compensation is to be deducted from total of (i) plus 85% of (ii)
minus the sum of (iii) and (iv).
18.5.3 With regard to the quantum of retention money/ Compensation to be withheld from
RARs in respect of contracts of which one phase has been completed after the stipulated date of
completion but the completion periods of remaining phases are not yet over, even in such cases the
RAR payments may be made to the Contractor after withholding the sum as intended in para 18.5.2.
However, the maximum compensation amount shall be worked out with reference to those phases
only in which the work could not be completed within stipulated time.
18.5.4 In case a Contractor objects to method of payment indicated in paras 18.5.2 and 18.5.3
above, the payment should the regulated in accordance with the existing procedure i.e. recovery on
account of compensation for delay should be effected from RAR payment on the basis that
compensation for delay has become due to Contractor's default and that Government is entitled to
recover the amounts as soon as notice to claim compensation has been served on him immediately
on expiry of the stipulated period of completion.
18.5.5.1 Instructions in paras 18.5.2 and 18.5.3 above do not apply after the work has been
completed. In accordance with Condition 65 of IAFW-2249, the Contractor has to forward a certified
final account on IAFW-2267 as soon as possible after the completion of work to the satisfaction of
the Engineer-in-Charge. Normally therefore, the question of payment on account should not arise
after the work is completed as this would be a stage when the final bill is to be submitted by the
Contractor. However, where considerable payment is due to the Contractor on completion of work
and/or he insists for payment on account before submission of his final bill, RAR payment is to be
governed by the terms of the contract i.e. restricted to percentage payment as laid down in the
condition for advances on account and full amount of compensation will be recovered from the
payment due to the Contractor.
18.5.5.2 It may be added that whereas 15% of the value of stores brought on site by the
Contractor remain as retention money with the Government in case of RAR payments during the
progress of the work, the same is not the case after the completion of work as all stores brought on
site are by that time incorporated in the work. In view of this, the procedure outlined in para
18.5.5.1 above is to be followed to safeguard Government interest.
18.6 Bank Guarantee Bond in thelf~ti~~\titlltlll:lll
18.6.1 Condition 64 of IAFW-2249 provides for payment of advances on account, to the full
value of work executed on Contractor's furnishing Guarantee Bonds or Fixed Deposit Receipts from
Scheduled Banks. .
136 PART-II : CONTRACT STAG!\
18.6.2 Bank Guarantee Bond forms in lieu of Retention Money both for approved and
un-approved Scheduled Banks duly approved by Min of Def and Min of Finance are at Appendix
18.2 & 18.3 respectively.
18.6.3 Bank Guarantee Bond form at Appendix 18.2 will be used in case of approved
Scheduled banks irrespective of the fact whether they issue guarantees under free limit or have to
lodge Govt. Securities and/or cash as cover. The Bank Guarantee Bond Form at Appendix 18.3
will be used in case of un-approved Scheduled Banks. Format for extension of Bank Guarantee will
be used as given in Appendix 18.4.
18.6.4 Bank Guarantee Bond may be for part of the amount of retention money, balance being
recovered from on account payments (RARs).
18.6.5 Bank Guarantee Bond may be furnished by a Contractor at any stage and accepted by
the Department.
18.6.6 One or more Bank Guarantee Bonds may be furnished by the Contractor to cover the
amount of retention money in part or in full.
18.6.7 The date of validity of Bank Guarantee Bond mentioned in para 3 of the form shall be
filled in by the Accepting Officer of the contract keeping in view the magnitude and nature of work,
the time likely to be taken in finalisation and payment of the final bill. It is suggested that in respect
of works of large magnitude, the date of validity should be about 12 months beyond the original
stipulated date of completion. Accepting Officers are at liberty to fix the validity date of Bank
Guarantee Bond short of 12 months beyond the stipulated date of completion, provided the validity
date covers the period till anticipated date of payment of final bill.
18.6.8.1 The Bank Guarantee Bond in lieu of retention money should be kept in the custody of
the Accepting Officer. This is mainly because extention of time, if any; on a contract has to be
approved by the Accepting Officer and he would, therefore be in a better position to decide
regarding extension, if any required of the validity of Bond or initiate action for encashment of the
Bond in the event of the Contractor not extending its validity.
18.6.8.2 The original Bank Guarantee Bond along with necessary certified copies should be sent
to the PCDNCDA by the Accepting Offier for verification and then returning the original to the
Accepting Officer and the certified true copies to the CWE, GE & MO.
18.6.8.3 The Accepting Officer should evolve a procedure to ensure that timely action is
initiated to have the validity date of the Bond extended by the Contractor, or to have it encashed
before the same expires. For this purpose, a suitable register should be maintained by the Accepting
Officer.
18.6.9 In case at a later stage, on account of delay in completion of work or delay in paym.ent of
final bill, it is considered that the validity date stipulated in the Bank Guarantee should be extended,
then the contractor shall be directed by the Accepting Officer of the contract to have the validity
extended before the date expires. If the Contractor fails to do so, the Bank Guarantee shall be
encashed before expiry. Refer encashment notice at Appendix 18.5
18.6.10 In case the BGB is not encashed by the concerned Bank, the matter should be referred
to the Central Office of RBI in Delhi and Mumbai at the following address :
pART-II: CONTRACT STAGE 137
(a) Jt. Chief Officer (b) Reserve Bank of India

Deptt. of Banking and Operations Central Office
Reserve Bank of India Department of Banking Operations & Development
Parliament Street, New Delhi-llOOll Centre-1, World Trade Centre
Cuffe Parade, Colaba
Mumbai-400005
18.6.11 Immediately on completion of work BGB exceeding Rs. 1.5 lakhs or 1 o/o of the contract
an/tount as executed (which over is more) shall be released in terms of amendment to IAFW-2249.
18.6.12 Bank Guarantee Bond in lieu of Retention Money is due for discharge as soon as the
Final Bill is paid. In accordance with General Conditions of Contract (IAFW-2249) and IAFW-1815,
no amount is therefore to be retained when the final bill is paid. Immediately after the final bill is
paid, the GE concerned shall intimate this fact to the Accepting Officer who shall release the Bond
duly discharged to the Contractor. In the case of contracts concluded by CE, GE should send
intimation in respect of payment of final bill direct to CE with a copy endorsed to CWE. Accepting
Officers are requested to ensure that no delay occurs in releasing the Bank Guarantee.
18.6.13 When a work under a contract is not completed by the stipulated date and when
compensation for delay has become payable under the conditions of the contract, running payment
is to be regulated as stipulated in para 18.5 above. Any Bank Guarantee Bond executed by the
Contractor to cover normal retention money would not be adequate in case of works exceeding Rs.
5 lakhs, to cover the maximum retention money mentioned in para 18.5 above. In such cases where
the value of bond (s) does not fully meet the total amount for compensation for delay; one of the
following procedures need to be adopted to safeguard Government interest :
(i) The Contractor may furnish Bank Guarantee Bond for the maximum amount of
compensation.
or
(ii) In addition to the value of the Bank Guarantee Bond already furnished by him (in lieu of
retention money), the difference of compensation payable less the value of the bond
should be recovered from RAR payments.
18.7 Surprise Oheeldng!J(~.
18.7.1 In accordance with para 479 of MES Regulations, RARs are not to be checked by
DCWE/ACWE (Contracts) in CWE's office as a matter of routine even in case of important work.
This was as a result of recommendation of the Departmental Committee to streamline the procedure
in MES and to ensure prompt payment of Contractor and to avoid a likely source of corruption. The
provision in para 479 of MES Regulations is to enable CWE, CE or his nominee to undertake surprise
check of any RAR on the spot with reference to value of work done and cost of stores collected in
respect of any contract. This spot check is meant to be carried out in exceptional cases where the
CWE/CE has reasons to believe (either on the basis of information received by him about certain
malpractices or on account of previous reputation of contractor or suspected integrity of the
executive staff) that there is a likelihood of over payment made to the Contractor.
138 PART-11 : CONTRACT STAGE
18.7.2 RARs will, however, be checked by DCWE/ACWE (Contracts) of CWE where there has
been delay in completion of the work and the Contractor has become liable to pay compensation for
delay. This is necessary as per procedure laid down in para 18.5 above and to ensure that RAR is
correctly prepared, various recoveries have been effected and that there is no chance of over
payment to the Contractor at any stage.
~.8 Measures to prevent ovel' p~ymenttif:Con~f9iiitlilti
111.11.1 Causes leading to over payment to Contractors through advances on account are :-
(a) incorrect assessment of the value of work executed.
(b) incorrect assessment, both qualitative and quantitative of the materials brought by the
Contractor to the site for incorporation in works.
(c) Short recovery of materials and tools and plant issued to the Contractor under
Schedules 'B' and 'C', water and electricity charges and rental for Government
accommodation for storage purposes, etc.
(d) payment allowed in RAR for defective substandard work.
(e) delay in finalisation of minus deviation orders, star rates, etc.
(f) not making recovery for additional security deposit.
(g) not having valid Bank Guarantee Bond for retention money.
(h) not accounting for recoveries in particular on account of settled STEs observations in the
same contract or in respect of other contracts in terms of Condition 67 of IAFW-2249.
18.8.2 Careful observance of the steps described in paras 18.2 to 18.7 will undoubtedly obviate
the possibility of over payment to Contractors through RAR. Following further steps should also be
taken in this connection :
(a) Requirement of Schedule 'B' stores should be carefully worked out to avoid over issue
resulting in excess recoveries from Contractors at the final bill stages.
(b) Recovery for any additional security deposit shall be made from the first payment "on
account" in terms of Condition 22 of General Conditions of Contracts (IAFW-2249). The
Bank Guarantee Bonds for retention money should be accepted by the Accepting Officer
before payment is allowed to the Contractor against the same through "on account"
payment.
18.8.3 The precautions listed hereinbefore are for general guidance. The GE, however, remains
personally responsible for the correctness of the payment "on account" made to contractors. In this
connection reference is invited to para 468 MES Regs which states that the GE will verify the claims
for advance payment preferred by the Contractor by personal general inspection. Para 479 MES
Regs provides that such payment shall be made on the personal certificate of the GE. Para 481 MES
Regs provides that the GE will sign the following certificate on the statement of stores attached to
the Running Account Receipt :
"Certified that the quantities of materials detailed above have actually been brought by the
Contractor and are lying at the site of work on the date of issue of this certificate; that any previous
advances made on them have been accounted for in this bill, and that these materials are of an
imperishable nature and are all required by the Contractor for use in the work under the contract".
SECTION
DEVIATION ORDERS, DO LIMIT, AlP,

AMENDMENT TO CONTRACT
Hl.1.1 Under existing instructions deviations may be ordered for various types of contracts and
are not to exceed th~ following percentages :
(a) Lump sum contracts based on drawings and specifications - 10%
(b) All other types of contracts :
(1) Contracts estimated to cost not more than 10 lakh -20%
(2) Contracts exceeding Rs. 10 lakhs. - 10%
1!1.1.2 Condition 7 of General Conditions of Contracts (IAFW-2249) lays down certain further
restrictions with regard to the Deviation limit included in the contract. Important restrictions
mentioned in Condition 7 are :
(a) In no case shall additions/deductions exceed twice the deviation limit.
(b) Deviations ordered on items of any individual trade included in the contract shall not
exceed25o/o ofthe value of that trade in the contract as a whole/or half the deviation limit,
whichever is less, except in the case of prime cost and provisional sum where the parties to
the contract may agree to a different percentage for any particular item.
(c) The value of additions of items of any individual trade not already included in the contract
shall not exceed 1Oo/o of the deviation limit.
19.1.3 The percentage indicated in para 19.1.1 above are the upper limits. Each contract should
be considered on its merits and deviation limit fixed as low as practicable. Cases are frequently
referred where sanction is sought for a higher deviation percentage than that mentioned in para
19.1.1 above. To avoid such cases adequate ground data must be collected before going out to
tender so that a reasonable estimate of requirements of different items is initially included in
Schedule 'N.- the list of works/items.
19.1.4 Deviations executed under and within the original terms of Condition 7 of IAFW-2249
shall not have the effect of increasing the value of the work beyond the powers of acceptance of the
Authority of the contract.
19.1.5 To illustrate, a CWE may conclude a contract which at the time of concluding it, does
not, exceed his powers of acceptance, but may execute deviations upto the full limits allowed in the
Deviation Condition referred to above even though the final value of the contract as deviated
· exceeds his financial powers. In such cases the fact shall however be brought to the notice of the
Higher Engineer Authority within whose powers of acceptance the total expenditure lies and his
sanction obtained. No amendment to the contract is necessary as the contract has in no way been
vitiated.
(139)
140 PART-II : CONTRACT STAG!l
1!1.1.6 The question of ordering work in excess of deviation limit should arise only if such a
course is considered unavoidable e.g. when the additional work is closely connected with the
original work and it is necessary and in Govt. interest to order it on the same contractor instead o
concluding a fresh contract for it.
19.1.7 When work in excess of the permissible deviation limit is required to be executed by the
contractor, it is obvious that action to arrive at a settlement with him with regard to price
adjustment, if any; has to be taken at a suitable stage as soon as it becomes evident that the
permissible deviation limit is going to be exceeded. This is necessary so that work does not have to
be suspended for want of such settlement.
19.1.11 When the Accepting Officer is convinced that bringing in a new agency to carry out the
work is not feasible and it is necessary to get the work executed through the same contractor, he
must take the initiative to come to an agreement with the contractor, with regard to the rates
payable for the proposed additional work. it should be borne in mind that for work in excess of the
deviation limit, the Contractor is entitled to a reasonable rate.
Cases may arise :
(a) Where the existing contract rate is considered reasonable i.e. at par with current price
level.
(b) Where the existing contract rate is beneficial to the Govt.
(c) Where the existing contract rate is beneficial to the Contractor.
19.1.!1 In case of 19.1.8 (a) and 19.1.8 (b), it would naturally be advisable for Govt. to take
initiative and come to an agreement with the contractor to make an amendment to the contract to
include the additional work.
19.1.10 In case of 19.1.8 (b), cases may arise where the contractor may demand a higher rate
and it may be necessary for the Accepting Officer to ascertain the prevailing conditions and then
come to a settlement with the Contractor with regard to the reasonable rate payable for extra work.
19.1.11 In case of 19.1.8 (c), it will be necessary to enter into negotiation with the Contractor.
to agree to a reasonable rate based on the prevailing market rate or rates for similar work on other
comparable current contracts.
19.1.12 In the negotiations with contractor, referred to above, it is important to obtain
Contractor's proposals in writing. In cases where the additional work is inseparable from the
original work and cannot be got completed by other means but Contractor demands a high rate
which is not acceptable to Accepting Officer, he should be informed that the rate is exorbitant and
not acceptable. Effort should however be made to ensure that the contractor still proceeds with the
work on the understanding that the question of settlement of rate, if necessary; would be referred to
arbitration. In all cases, the next higher engineer authority must be kept informed.
19.1.13 Work ordered in excess of deviation limit will not be viewed as a single tender and no
report is to be rendered to the next higher authority as it amounts to duplication and does not serve
any useful purpose. Accepting Officer of the contract must submit a detailed report to the competent
authority mentioned below, through the concerned PCDNCDA for sanction of the increase in
deviation liinit beyond the limits laid down in the contract i.e. those mentioned in para 19 .1.1
above, giving inter alia, particulars about the rate decided, if any. Necessary approval will be
accorded by the competent authority after taking into consideration the comments of the
PCDNCDA.
pART-ll : CONTRACT STAGE 141
(a) Zona]/Project CEs are authorised to approve excess over the deviation limits mentioned in
para 19.1.1 above to the extent of 10% on contracts concluded by CsWE and GEs in
consultation with PCDNCDA. Cases involving excess of deviation limit over 10% shall be
regularised by the Command CE, in consultation with PCDNCDA.
(b) Command CEs are also authorised to approve any excess over the deviation limits
mentioned in para 19.1.1 above to the extent of 10% on contracts concluded by
Zonal/Project CEs in consultation with PCDNCDA. Cases involving excess of deviation
limit over 10% shall be regularised under orders of the E-in-C in consultation with
Ministry of Defence (Finance).
(c) In case of variation of DO limit on minus side, no consultation with PCDNCDA shall be
necessary and Accepting Officer may issue necessary amendment to contract with
intimation to next higher authority.
(d) Proforma for seeking approval of DO limit case from competent authority is given in
Appendix 19.1.
1!1.1.14 Cases may occur where the actual expenditure under the contract exceeds because of
the deviation limit provided under the contract having been exceeded. In these cases not only the
prior concurrence of the Engineer Authority, within whose powers of acceptance of contract, the
actual expenditure lies, is necessary but also an amendment to the contract agreement to suitably
increase the Deviation percentage shall be approved by that authority.
19.1.15 Ordering wod<s against Lump Sums, Prime Cost Sums, Provisional sums
and Provisional Quantities : The following procedure should be followed in ordering works
against lump sums, prime cost sums, provisional sums, and provisional quantities :
(a) The work as included in the contract shall be ordered through Work Order No. 1.
(b) Simultaneously with Work Order No. 1 the following deviation orders shall be issued:
(i) Deviation Order No.2 omitting all Prime Cost sums;
(ii) Deviation Order No.3 omitting all Provisional Lump sums;
(iii) Deviation Order No. 4 omitting all Provisional Quantities.
Note : With reference to (b) (i}, (ii) and (iii) above, it is not necessary to reproduce the complete relevant portion of
Schedule Jl' or General Summary pertaining to these items as an Annexure to the DO and it will be sufficient if the DO
is worded on the following lines:-
OMIT : Provisional items as per Schedule 'Pi Part ....................................................................... ..
Serial items Nos .................................. to .......................................................................................... .
or
OMIT : Prime Cost Sums all as per General Summary on Serial page No ............................ of the
Contract Agreement.
(c) The extent of work actually required to be executed against Prime Cost Sums, Provisional
Lump Sums and provisional quantities shall be ascertained as early as possible and added
back through separate DOs for the following:-
(i) Prime Cost Sums; f
(ii) Provisional Lump Sums;
(iii) Provisional Quantities.
I'
Where necessary, the work on c (i), (ii) and (iii) may be ordered piecemeal. While ordering
back the work omitted against Prime Cost Sums, provisional sums and provisional quantities, the
work actually required to be carried out should only be ordered. It may not always be possible to
include firm quantities in such Deviation Orders and when such be the case, the quantities should
be as near as possible to the actual requirements. To achieve this object the Engineer in-Charge
should work out the quantities based on the final layout of the buildings and other site conditions.
An endorsement will be made on the DOs concerned that the quantities given are approximate and
the work will be measured and paid for as actually executed. Since working out approximate
quantities based on the final layout may require a few days from the date of start of work, while
framing Time and Progress Chart/CPM, the stages at which such items occur will be indicated
separately.
(d) Deviations pertaining to firm items in the contract shall be ordered separately.
19.1.16 In nominating firm for PC sum, Accepting Officer shall issue guidelines to CWE/GE to
get users requirement, identify sources of procurement and call for quotations upto certain financial
limit. The Contractor shall be asked to arrange the supply or execution of work by nominated firm
at rates not exceeding the rates obtained and reasonability assessed by Government.
19.1.17 Separate abstracts shall be prepared for the categories of works covered under para
19.1.15 above and Deviation Order (excepting the lump sum Deviation Orders to be billed direct
for which no abstracts are required) with a view to facilitate carrying over the totals of these items
to the bill and to ensure that no Deviation Order is covered more than once.
19.2 Approval in principle to ~uuiqfd.~i~~~~l
19.2..1 (a) Condition 7 of General Conditions of Contracts (IAFW-2249), interalia, provides that
the Accepting Officer (AO) or persons authorised by him on his behalf, may order deviation either
by way of addition or deduction from work.s so prescribed, provided that the contract sum will not
thereby be varied on the whole, by more than the percentage set out in the tender documents.
Note : It is understood that types of deviations which Cs WEICEs are specifically authorised to approve on behalf of CEs have
been laid down by every CE.
(b) Condition 7 further provides as under:
Whenever the AO intends to exercise such right, his intention shall be communicated to the
contractor by the GE whose order in writing shall specify :
(i) Deviations which are to be made;
(ii) Lump sum assessment or the proposed basis of payment, and
(iii) Change, if any, in the date of completion of the relevant phase.
1!}.2..2. It will thus be seen from paras 19.2.1 (a) and 19.2.1 (b) above, that the basic
requirement of Conditions of Contracts is prior approval in principle to a DO to be obtained from
the AO or from the officer who is specifically authorised by him as aforesaid.
19.2.3 The Accepting Officer, while conveying his approval in principle to the DO, shall also
decide whether the deviatimyin question shall be a lump sum DO (i.e. details to be priced and
attached to the DO itself) or whether it will be a measurable DO in which case the DO will state that
the work will be measured in Measurement Books and abstracted. A copy of the letter according
pART-II : CONTRACT STAGE 143
approval in principle to the deviation shall, as and when issued, be endorsed to the PCDNCDA and
AO/MO concerned. Brief reasons for the deviation e.g. for technical reason, due to site conditions,
due to user's requirements due to non-availability of specified material and the like, and
approximate financial effect shall invariably be stated in the copies of letters endorsed to PCDN
CDNAO/MO. If the PCDNCDA wishes to raise any observations with regard to the deviation being
ordered, it will then enable him to address letter direct to the Accepting officer instead of waiting
for the copy of the formal deviation order on IAFW-1823 from the GE. This will enable expeditious
settlement of observation if any raised by the PCDNCDA, with regard to the subject matter of DO.
19.2.4 On receipt of the letter approving the deviation in principle, the GE will address a letter
to the contractor with copy to the CWE, the Accepting Officer and the Engineer-in-Charge clearly
bringing out in that letter the following three aspects viz :-
(a) Details of deviation i.e. addition to or omission from or alterations in the work;
(b) Proposed method of payment (this should be indicated in clear terms so that there can be
no doubt about it in the mind of the contractor); and
(c) Effect of the deviation order on the date of completion of the relevant phase and or the
entire contract.
This letter will also include a para on the following lines in pursuance of Condition 7 of
IAFW-2249:
"Please note that objection, if any, to the deviation shall be notified by you in writing to me
within 15 days of receipt of this, but in no circumstances the progress of the work shall be stopped
on the plea of any objection. If no such objection is received from you within this period, you will be
deemed to have accepted the order and the conditions stated therein without in any way affecting
the right of the patties to rectify any mistake in the basis of payment, only to the extent it differs
from Condition 62 of IAFW-2249"
19.2.5 Within about one week of the receipt for the copy of the GE's letter addressed to the
contractor, intimating the deviation, the Engineer-in-Charge shall in consultation with AGE
(Contracts)/JE (QS & C) where possible, prepare a draft deviation order in the proper form
(IAFW-1823). In case of Contracts concluded by CEs/CsWE, the GE shall ensure that within about
two weeks of the issue of the above mentioned letter to the contractor, the draft DO with supporting
details and duly checked by his Surveyor in GE office is forwarded for technical check of the
surveyor in CWEs office. The CWE shall similarly ensure that the draft DO is checked and amended,
as necessary, by his surveyor within three weeks of the receipt of the draft DO and fair copies of the
draft DO, duly endorsed as "Technically Checked" by his surveyor are returned to the GE for
signature by him, his surveyor an~Jhe contractor, for distribution to all concerned. The aim should be
that as for as possible, distribution of fair copies of the DO to all concerned is not delayed by more than
six weeks from the date the deviation was ordered on the contractor through the letter of GE mentioned
above.
1 19.2.6 When a proposal for deviation is initiated at GEs level, he will, however, forward the
~roposal together with a draft DO in proper form suppo. rted by details, as necessary, to the CWE.
\"ubsequent action will be taken as indicated in paras 19.2.4 and 19.2.5 above.
19.2.7 Details of measurements in case of measurable deviation order are not necessary, at the
time of requesting approval in principle for the DO but the GE should send details prepared by
144 J>ART-U : CONTRACT STAGE
Engineer-in Charge in support of the DO in manuscript to CWE so that the financial effect can then
be worked out and checked. These manuscript details should indicate approximate quantities of all
major items and method of pricing. This would also enable the surveyor to check the method of
pricing adopted and to verify whether any special rates are involved. It is however, not necessary to
attach all these details of measurement with the DO and only an abstract of quantities and rates
need be attached.
1j. :1.9.2.8 ThefoliQ¥Ying types of DOs will be issued by GEon the proper form without it being
lmecessary to be checked by CWE's surveyor. In these cases-~check by GE's surveyor is considered
sufficient.
(a) DOs for omission of provisional quantities, PC sums and provisional lump sums
(b) DOs for ordering back work against provisional items where quantities involved are within
the limits laid down by CE.
(c) DOs in respect of grant of extension of time.
19.3.1 All works/Deviation orders on contracts concluded by GEs and all works orders on
contract concluded by CsWE and CEs shall be technically checked by Surveyor in GE's office prior to
issue to contractors. Deviation Orders on contracts concluded by CsWE and CEs shall be technically
checked by Surveyor of CWE's Office (except those ~ioned in para 19.2.8 above) in addition to
check by Surveyor in GE's office. 1 --
It is clarified that works orders placed on the form IAFW 1823-A (TC WOs) need not be
technically checked by the Surveyor in GE's office.
19.3.2 All works/Deviation orders should be got signed from the contractor before distribution
but these issue should not be withheld or delayed on account of contractor's non-availability or
unwillingness to sign. If a work/deviation order cannot be got signed from the contractor within a
reasonable time (i.e. 3 to 4 days), the same should be sent to the contractor under Registered Ack
Due cover (refer Condition 23 of IAFW 2249) and the postal receipt/ aclmowledgement retained in
safe custody. With reference to para 19.2.4 above, where the contractor raises an objection within 7
days, it must be dealt with expeditiously and if a dispute arises, steps should be taken to resolve the
dispute as early as possible by referring the matter to the next higher Engineer Authority.
19.3.3 Copies of Works/Deviation Orders for all contracts except in respect of running contracts
such as handling and conveyance contract (IAFW-2320), supply of materials contracts (IAFW-1815
Z), term contracts, and the like will be distributed to all concerned, endorsing two copies to the
Principal CDNCDA, through the AO/AAO. With regard to term contracts, handling and conveyance
contracts, supply of materials contracts and the like, copies of works orders and deviation orders
will be distributed to all concerned endorsing copies to the Principal CDNCDA through the
AO!AAO, who will retain one copy and send the other to the Principal CDNCDA for his record.
AOs!AAOs will not wait for receipt of attested copies of works orders/Deviation Orders pertaining
to term contracts, handling and conveyance contracts and supply of materials contracts and the like
for passing of final bills except for the following :
(a) Works orders and deviation orders for new works (Costing upto Rs. 60,000/- ordered on
term contracts).
!,I
(b) Deviation orders (i) containing star/prorata rates (unless such rates had received the prior
approval of CDA) and (ii) involving changes in specifications.
Further as regards terms contracts (IAFW-1821) regarding pre-attestation of DOs/work orders
on term contracts the AAOs are under instructions not to withhold payment of Final Bills if only
pre-attested copies of work orders in respect of term contracts are awaited from their CDA.
19.4 Issuing one combined order tor. a J1Um~il:'(i~;~~t~~~~~
19.4.1 It is not advisable to include a number of deviations in one DO. This is likely to lead to
unnecessary delays at billing stage, particularly when any item is disputed by the contractor. It is
simpler and always desirable to issue a separate deviation order for each variation.
19.4.2 As already stated in para 19.2.4 above, a written order must be given to the contractor
by the GE for every deviation. Even though a deviation order on the proper form (IAFW-1823) may
have been issued subsequent to the issue of the letter by the GE, such deviation order shall not be
treated as "Covering Deviation Order". Cases may, however arise when during technical check of
works by an Engineer authority (including CE, CWE, ADGTE, STE and TE) or during the technical
check of bills before payment, discrepancies may come to light which may require
regularisation!adjustment, by further deviation order. Any such deviation order aftt!y_~JQ:~jry of the
contract (which includes the extended period) will be treated as "Covering-Deviation Order"
------ !! ~-- --- -
.~<-~ g .~" ~
19.5 Orders for Extension oftbli~ _ ~-/_.~~ · '~' ~ ... -· -· -------
19.5.1 Deviation orders for extension of'rlrrnrwlll be issued on Contractor'S.Order Slip Form
(IAFW-1823) and numbered with suffix (Dev.).
19.5.2 When, as stated above, the question of extension admissible is being examined by the
Accepting Officer after completion of work, preparation and progressing of final bill shall not,
however be held up since it is only the quantum of compensation, if any, to be deducted from the
final bill that is dependent on the extension finally approved by the Accepting Officer. Preparation
and check of final bill by all concerned will continue without waiting for the approval by the
Accepting Officer to the extension of time applied for by the contractor.
~. .~9rdering Deviations on No Gost88.~i~-
19.s.1 Deviations on 'No Cost basis' for providing work to a superior specification should be
discouraged because contractors are likely to take advantage of this for concession in other spheres.
19.6.2 The following procedure will be adopted when resorting to use of superior specification
than that catered for in the contract:-
(a) An authorised superior work not originally catered for in the contract shall be ordered by a
proper DO with financial effect.
(b) An authorised superior work not originally catered for in the contract but agreed to be
executed by the contractor on his own initiative on 'No Cost basis' e.g. provision of
better class of door and window fittings or sanitary fittings and the like, when those
specified are not readily available in the market, · · ·mld be ordered on 'No Cost Basis'.
(c) When an unauthorised work is required to be done on the request of the users who agree
to pay for the extra cost involved, the same should be ordered through a proper DO with
financial effect, provided-
146 l'ART-Il: CONTRACT STAG!l
(i) Users obtain approval of the CFA.

and
(ii) Users agree to deposit the extra cost involved in the treasury before the work is
taken in hand, and the money is credited to the work.
As far as possible, deviations coming under category (c) above be discouraged.
19.7 Deviations and Amendmentsto,Contt~~tSi
19.7.1 Condition 7 of General Conditions of Contracts, IAFW-2249 inter-alia includes that, "No
work that radically changes the original nature and scope of the contract shall be ordered as a
Deviation and in the event of disagreement between the Contractor and the Accepting Officer, the
decision of the next higher authority (or of the Chief Engineer in case of contract cY<:epted by him)
shall be final and binding on the contractor."
19.7.2 The dividing line between a Deviation and Amendment to CCi.tract is one for
judgement. The point for decision is whether the basis for the existing contract will not be
materially affected by the alteration in design, scope or circumstances which it is proposed to
introduce. If it will, then an Amendment to contract will be required to effect the desired alteration
in agreement with the contractor.
19.7.3 It is essential on grounds of equity, that the aforesaid principle is adhered to the
maximum extent possible and that anything that tends to a violation of this principle is discouraged.
19.7.4 All Accepting Officers are advised to bear the above principle in mind and to ensure that
alteration that materially or radically affect the basis and the scope of the contract are avoided.
19.8 Reimbursement of increase in prices under Condition 63 of IAF\\f·2249{~on~.ijti(ln'32'\~
IAFW-1815 Z ·.;;
.··----·~--- . --.. ---~---- . -----------··-·-·----·------·--·--------·-c..-.. -~--------'.-.-·------------ - -,_ .___ ,.>--'£:,
19.8.1 In one furniture (Steel Racks) contract of CE(FY) Hyderabad the contractor has raised
claim pertaining to reimbursement of increase in price of steel. During arbitration hearing the
contractor has filed a judgement of Allahabad High Court which states that SAIL is considered
"STATE" and contended that his claim for reimbursement of escalation due to rise of prices by
should be reimbursed as per Condition 32 of General Conditions of Contract IAFW-1815Z; since
SAIL being a "STATE" comes within the provisions for the said condition.
19.8.2 The CE(FY) Hyderabad has sought clarification/opinion from Ministry of Steel. Milnistry
of Steel has clearly stated that in a .liberalized and deregulated environment, the Govt. does
interfere to influence the prices. Pric~ are determined by free interplay of market forces of cternarw
and supply and fixed by the company without any intervention of the Government. Clarification
Ministry of Steel is given at Appendix 19.2.
19.8.3 In view of above the increase in prices of steel by SAIL is not to be treated as 'stattutory
order'. The meaning of "statutory order" is a "law expressly enacted by the Legislature."
19.8.4 Similarly increase in prices of petroleum products, bitumen etc. due to free interplay
market forces of "demand & supply'' should be refuted on above lines, if contractor so demands.
FINAL BILLS, MEASURES TO AVOID DELAYS, PAYMENT OF
OMITTED ITEMS, REFUND OF RECOVERY, STAR RATE/SPECIAL RATE
20.:1..1 Delay in settlement of final bills are mainly due to :

(a) Settlement of stores transactions;
(b) Settlement of transactions pertaining to T & P;
(c) Delay in issue of DOs and settlement of special rates for work ordered as deviation;
(d) Delay in completion of measurements and preparation of abstracts;
(e) Delay in settlement of contractor's claims for extra, the matter having not been referred to
proper authority as soon as it was first raised by the Contractor.
(f) Contractors coming forward for grant of extension of time after completion of work and
pending decision, not submitting or signing their bill.
(g) Delay in Principal CDA/CDA:s office in forwarding certified true copies of DOs to AAO and
this, in turn resulting, in delay in submission of bills by AAO to the Principal CDNCDA.
20.1.1 For contracts the gross value of which exceeds Rs. 5 lakhs, are to be preaudited by
PCsDNCsDA and for contracts the value of which is less than Rs. Slakhs, the final bill could be audited
and passed by AAO, without preaudit by PCDNCDA.
However, where the office of AAO, GE has been upgraded to AO, GE, the preaudit of final bill
for contracts, the gross value of which does not exceed Rs. 10 lakhs shall be audited and passed by
AO, without preaudit by PCDNCDA.
20.1.2 To avoid the above delays, the following remedial measures are suggested at various
stages:
(a) During Administration of Contract.
(i) To ensure that all transaction are brought upto date once a month, the GE shall render a
certificate on every RAR that relevant points have been checked.
(ii) A periodical review is made by GE and CWE as technical administration of contract, viz,
progress made on finalisation of deviation orders, rates, amendments, recovery rates for
non-schedule 'B' stores and non-schedule 'C', T & P and the like. This review is
recommended at regular intervals.
(iii) Since delay in finalisation of DOs is the main cause, it is necessary to curtail the number of
deviations to the absolute inescapable minimum.
(iv) No deviation should as for as possible be initiated during the last two months of the
contract period.
(147)
(v) A DO Register should be maintained by the Engineer- in-charge at the site of work and the
GE must examine this register periodically at site to ensure that the Engineer-in- Charge
has been taking all steps necessary for speedy preparation of DOs and where delay is
attributable to the Contractor to warn him that the financial effect of the DO will not be
taken into account while paying him the RAR if he does not co-operate in producing
vouchers etc. It must also be remembered that once the work is completed, the Contractor
may not be readily agreeable to settle the rates or resolve disputes.
(vi) The GE should hold periodical discussions with concerned subordinates and the MO.
Surveyor of GE should also maintain a record of DOs approved, issued and to be issued
and the GE should go through this Register during these discussions in his office.
(vii) The CWE should hold regular and frequent conference between him and his GEs and also
look into the DO Register maintained by the Engineer-in-Charge during his visit to works.
(viii)The PCDNCDA are expected to complete certification of DOs/amendment within two
weeks of their receipt in his office and after this period the CDA should allow a bill to be
submitted to his office by the AAO even if some DOs/amendments remain uncertified by
that time.
(ix) GE/DCWE (Contracts) should settle CDA:s observations through personal contacts by
periodical visits to CDA:s office with prior intimation to the CDA. Such visit should not take
place only in the months of January or February.
(x) Immediately on completion of work, the Engineer-in charge will ensure that items of work
still left to be measured including deviations, are measured jointly with the Contractor and
measurements recorded in measurement books. In case of measurements pertaining to
deviations not yet authorised by competent authority; it should be made clear in the
measurement book that the recorded measurements do not imply acceptance of work not
covered by proper deviation orders. Contractors should be encouraged to keep copy of
measurement in their own measurement books having pages numbered and ruled similar
toMES MBs.
(xi) Two weeks after completion of work, technical review should be made by the GE to ensure
that all transactions still needing to be regularised are expeditiously completed.
(b) At the stage of completion certificate
(i) Within 24 hours of completion of work, the Contractor shall report this fact .to the GE.
Soon after completion of work to the satisfaction of GE but in no case later-than 7 days a
completion certification shall be issued by GE to the Contractor (CE may authorise a
period of 15 days in case of outstations). Copies of this certificate shall be sent to the
Accepting authority and on that copy the GE will further certify as under :
"There are no deviation orders or settlement of rates either for materials issued or for T &
P and the like outstanding in this work''.
(ii) If any items are outstanding, they shall be clearly stated in this certificate.
(iii) The accuracy or otherwise of these certificates should be checked by the CWE every time a
completion certificate is received and suitable action taken to ensure expeditious disposal
of pending DOs and special rates.
PART-II: CONTRACT STAGE 149
(c) At the stage of preparation of Final Bill

(i) Within 15 days of completion of work, the GE must ensure that a consolidated statement to
cover all debits and credits including all details of previous RARs as well as abstracts of
measurements (as prescribed vide para 465 of MES Regulations) are furnished to the
Contractor to en'\ble him to prepare and submit the final bill.
(ii) On submission of the final bill, the Engineer-in-Charge must ensure that all requisite
documents are attached to it. The details of the documents, which are required to be
attached to final bill & check list are given in Appendix 20.1. The certificate to be
rendered by the Contractor shall be as under :
CANo.:
Name of work:
Name of Contractor :
AGREED PART
It is certified that I have prepared this final bill for claiming entire payment due to me from this
contract agreement. This Final bill includes all claims raised by me from time to time irrespective of
the fact whether they are admitted/accepted by the department or not. I now categorically certify
that I have no more claims in respect of this contract beyond those already included in this Final bill
by me and this amount so claimed by me shall be in full and final satisfaction of all my claims under
this contract agreement. I shall however reserve my right to raise claim to the extent disallowed to
me from this Final bilL
DISPUTED PART
-NIL-
OR
Priced details to be given by the Contractor
Sd/XXX Sd/XXX
Engineer-in-Charge (Contractor)
Dated .................. . Dated .................. .
(iii) Disputed and delayed cases : In disputed/delayed cases, a further on account
payment to the extent of agreed portion of the final bill may be allowed to the contractor
after scrutiny/audit of the final bill by the CDA by retention of Rs. 20,000/- or 5% of the
agreed portion of the bill (whichever is less). In such cases where the Engineer Officer at
the request of the contractor, agrees to do so, he will convey his intention to the CDA at
the time of submission of the Final Bill or, at a later date, and at the same time, indicate
reasons for the desirability of such an authorisation by the CDA. Consequent to this the
Bank Guarantee Bonds accepted in lieu of retention money should be released to the
contractor after payment of the items of the final bill in respect of which there is no
dispute.
(iv) In cases where the contractor needs assistance of MES in completing the final bill, the GE
should render him necessary assistance. Similarly where the Contractor has unduly
delayed submission of the final bill, the GE should take initiative to expedite the
preparation of final bill. It should however, be made clear to the contractor that if he fails
to submit the final bill for any reason whatsoever, delay in payment will be entirely his
responsibility.
(v) Every endeavour should be made to complete the final bill within one month of
completion of work and, as a rule, all checks by the MES and Audit should be completed
as early as possible but not later than four months in respect of contracts of value not
exceeding Rs. 5 lakhs. For contracts of value exceeding Rs. 5 lakhs it should be within 6
months, of completion of work and payment made to the contractor within the time limit
prescribed in Condition 66 of IAFW-2249. In case of small jobs, it should be possible to
reduce this period and the period of four months mentioned above which should be
treated as the maximum. The technical check of bills by Surveyor in GE's office, Surveyor
in CWE's office must be completed within six weeks of the date of contractor's signature
on final bill, thereby leaving not less than one clear month for the Audit check by the MO
and the PCDNCDA.
(vi) Bills under Reservation : A final bill with Contractor's reservations shall not be
accepted as a final bill. Disputes of the contractor shall be recorded in Part 'B' 'Disputed
Portion' of final bill. Contractor's reservations fall under following categories :
(aa) Vague reservations without any financial effect; OR vague remarks such as "signed under
protest or subject to claims submitted separately"-and so on.
(bb) When a bill is signed by the Contractor with vague reservations and in spite of pressing
him to specify the financial effects he does not co-operate but demands settlement of
disputes through arbitration.
(cc) Claims specifically defined, priced and valued and included in the final bill.
In case of (cc) above, bills be checked and an 'on account payment' allowed and disputes
settled by arbitration.
(vii) In all cases where it becomes necessary to settle disputes by arbitration, final bills will be
progressed in the normal manner i.e. by carrying out checks by Surveyors and AAO/CDA
so that a duly audited final bill is available for reference to the Arbitrator during hearing of
the case. Where a contract has been cancelled at contractor's default and work completed
through other agency, it is important that the work completed by the Contractor upto the
date of default is measured, billed and audited. This will facilitate arriving at the final cost
of completion as soon as balance of work has been completed through other agency.
(viii)In accordance with para 475 of MES Regulations, if the contractor refuses/neglects to
submit his final bill for a contract, or to sign the bill prepared by the MES, as a result of
such refusal or neglect, a note will be entered to this effect on the bill and the sum due to
the contractor debited to the work concerned and credited to Head(s) Deposits.
(d) During Technical Check
(i) Final bills shall be technically checked as per para 470 of RMES. Surveyor in GE's office is
responsible for check of the final bills before payment. He should ensure that
documentation is complete. He must not raise observations piecemeal and where possible,
pART-II: CONTRACT STAGE 151
settle them by personal contact with the Engineer-in-Charge concerned. Where necessary
GE should arrange such meetings to resolve difficulties.
(ii) The same applies to check by Surveyor in CWE's office/ CE's office (where there is no CWE
office). Surveyor should as far as possible clear all observations by personal discussion
instead of throu;·h correspondence. He should endeavour to visit each outstation Division
once a month and GEs stationed at the same station once a fort night. During these visits
he should check the Bill Register and bring delays in preparation and check of bills to GEs
notice. Where there is no CWE office, percentage of final bills shall be selected by SE (QS
& C) in CE's office for check and will be technically checked by SE (QS & C))/EE (QS &
C)/AEE (QS & C)IAE (QS & C) in CE's Office. JE (QS & C) and Surveyor Officers checking
the bill will sign on escalation summary also.
(iii) Notings/minute sheets/observations in writing in connection with Technical check of bills
between Surveyor Staff and the Executives and between Surveyors should be kept to the
absolute minimum and should be treated internal notings only; not liable to be supplied
for perusal by AAO/AO/CDA/PCDA or audit.
(iv) Check of Bills by Surveyor in CWE office/CE office (where there is no CWE office).
(aa) Surveyor in CWE's office/CE's office should check every bill the gross value of which is Rs.
15 Lakh or above.
(bb) The bills selected for check by Surveyor should not be confined merely to those for Lump
Sum Contracts.
(cc) Bills for supply of materials will not be routed through CWE's office/CE's office because
such bills normally involve little technical check.
(dd) Wherever possible Surveyor in CWE's office/CE's office should check at site at least one bill
per sub-division per quarter.
(v) Statement of stores to be attached with Final Bills.
(aa) Form for Stores Statement to be attached with final bills along with form to be used for
giving details in support of col. 5 of Stores Statement are attached as Appendix-6.1 & 6.2.
(bb) In case of bills selected for technical check by Surveyor in CWE's office/CE's office, stores
statement shall invariably be checked and cage N of the Final Bill shall be signed by
Surveyor without deleting certificate (d).
(cc) It will be ensured that as soon as the last issue of Government stores is made to the
Contractor, the Engineer-in-Charge shall prepare the statement of stores in the prescribed
form and after his initial check forward it to the Surveyor of GE's office for his technical
check. If any over issues are noticed, the Contractor should be simultaneously asked in
writing to return the stores issued in excess. Surveyor in GE's office and Surveyor in CINE's
office/CE's office should technically check the Stores Statement without waiting for
completion of work or preparation of the final bill. Observations if any, should be sorted out
immediately.
Minor changes that may be necessary due to return of over issued stores and the like, can
be made later on so that the time required for checking of final Stores Statement when the
final bill is ready is reduced to the absolute minimum.
(vi) Surveyors and GE should be encouraged to visit PCDA's/ CDA's office periodically with
prior intimation to the PCDNCDA, clear bottle-necks and resolve points of difference.
Advantage should also be taken of periodical visit of the PCDNCDA and his staff to MES
office to settle controversial issue.
(e) During Audit Check
(i) It should be ensured that the MO/AO also raises all observations at one time and not in
piecemeal. The GE should arrange frequent meetings with the MO/AO, so that, as far as
possible the observations are settled by personal discussion. If the MO/AO fails to do so,
his attention should be drawn to the instructions contained in para 119 of the Manual of
Instructions relating to Procedure of Works in the Account Section of MES Formations
(Popularly known as Unit Accountant Manual) issued by the CGDA.
(ii) The MO/AO should commence check of final bills on the basis of true copies of
amendments and deviation orders furnished to him by the GE and not wait for audited
copies to be received from the PCDNCDA. On receipt of audited copies from the
PCDNCDA, he should finalise his check and forward the bill to the PCDNCDA. The
MO/AO should not insist upon production of original vouchers in support of special rates,
PC sums etc, so long as GE has certified that the details have been verified by him against
the original vouchers.
(iii) Payment to Contractor need not be held up merely because of objections by audit which
pertain to administrative or procedural matters and involve merely departmental
formalities where no financial effect is involved. Payment to contractor should also not be
held up on account of observations which are entirely within the discretion of Engineers. A
few examples of these are given in Appendix 20.2.
(iv) Where the MO/AO exercises weekly/fortnightly check of attested statements pertaining
to T & P with reference to log books, a fresh check of log books should not be necessary on
receipt of final bill.
(v) Any amendment to the Final Bill necessitated on account of technical and audit check
should be intimated to the Contractor and his concurrence obtained. The bill should be
supported by corrections, showing financial effect due to such amendments. Any
alterations to the net amount of the Final Bill, as signed by the Contractor under the "No
Further Claim Certificate" must be attested by the Contractor when the bill is received
from the PCDNCDA and before payment is made to the Contractor. This is necessary to
arrive at a finality and to avoid Contractor reopening the case.
(vi) Duplicate Copies of Final Bills
Duplicate copy of the Final Bill should be identical with the original. Whenever original copy of
Final Bill is amended, the duplicate copy must be corrected simultaneously. All corrections should be
signed/initialled and dated.
(vii) Amendment to contract after payment of the Final Bills.
(aa) Terms and issue rates for stores or T & P and such other minor matters not originally
included in the contract may be agreed to by rhe contractor either through
correspondence or by signing relevant deviation orders. These should be simultaneously
regularised by concluding an amendment to the contract to cover the changes.
J r
pART-U : COJ\ITRACT STAGE 153
(bb) Cases may, however, arise where final bills prepared based on contracts as modified by
such agreement conveyed through correspondence or deviation orders (but for which
formal amendment to contract has not been concluded) are accepted in audit and final
payment made to contractors. In such cases (i.e. where final bill has been passed and
payment made) it is not necessary to insist upon formal amendment to the contract.
(viii) Where disputes exist and cannot be resolved except by reference to arbitration, a
statement of points in dispute indicating amount involved shall be prepared and kept ready for
submission to the Arbitrator. In such cases, arbitration should be invoked without delay as other
wise there is a chance of valuable evidence of Government case being lost. Pending arbitration
proceedings, all connected documents shall be carefully guarded.
(f) Monitoring of Minns Final Bills
All minus final bills, where the recovery is due from the contractor, shall be monitored at CE
Command level. Such bills need to be finalized on priority and properly investigated to establish
reasons for the final bills becoming minus and official(s) responsible therefor. Once the amount
recoverable is finalized, steps need to be taken towards realization of Govt dues from the contractor
in terms of guidelines contained in Section 26.
~0.2 Payment of BiUsto Contracto~~-~!!''
Condition 66 (payment of bills) of MES General Conditions of Contracts (IAFW-2249)
stipulates that all payments/dues under the contract shall be made by means of crossed cheque to
the contractor 1\/C payee only'.
Cases may, however, arise where a bill may have been endorsed by a contractor in favour of his
bank and may have been lodged by the bank concerned for collection. In such cases the procedure
stipulated in para 258 of Financial Regulations Part I (Appendix 20.3) shall be observed.
Normally, in such cases, cheques drawn in the following manner should meet the case :-
" .......................... *Bank
NC Sarvashri .......................... * * & Co (Pvt) Ltd."
*Name of the Bank * * Name of the firm.
20.3 Claiming payment for items ohvork (nmttedfr~th'it~~(D!.Jl:':till

(a) Where an item of work has actually been carried out in terms of the contract, but not
recorded in the measurement book and the contractor has given a clear 'No Claim
Certificate' in cage VIII of the Final Bill Form (IAFW-2262), prior sanction of the
Government is necessary before admitting liability for payment of such claim for the item
of work overlooked.
(b) Where, however, such claim is to be referred for adjudication to an arbitrator, it is not
necessary to obtain Govt. sanction either for referring the disputed claim to arbitration or
for making any payment as a result of the arbitrator's award.
(c) Where a certain amount is with held from the final bill in anticipation of overpayment due to
pending observations of TE etc. and where the contractor accepts payment of reduced amount
giving a clear 'No Further Claim' certificate, in such cases if the observation is dropped, the
amount withheld against the observation may be paid without referring the same for Govt.
sanction. This also applies to cases where payment of amount was dearly and admittedly due
to a contractor and which had also been claimed by him initially.
2o.4 Refund of Recovery from Final Bill of a Contractor on Account If an ~tt~i~~ted

______ ~!erll!lJ!!i_enL__ --------·------·----·-·--·----------..C--.
20,4.:1. A sum of Rs. 10,000/- was withheld from the final bill of a Contractor on account of an
anticipated overpayment due to certain pending observations of the Technical Examiner and the
contractor had accepted payment of the reduced amount of the final bill after giving a clear "No
Further Claim" certificate in cage VIII of the final bill form. Subsequently the TE's observations were
dropped and the contractor claimed payment of the amount withheld. The question arose whether
the amount could be paid to the contractor without Government sanction notwithstanding the "No
Claim" certificate furnished by him.
20.4.2 lt is clarified that in type of cases referred to above, Government sanction is not
necessary for payments of amount dearly and admittedly due to a contractor which were also
claimed by him initially.
20.5 Water cluu:ge!_On _Star Rates

Wherever metering is not feasible and the contractor is charged for water at the flat rate of Rs.
3. 75 for every Rs. 1,000/- worth of work done at contract rates, the cost of water should also be
included in star rates on the same basis regardless of the fact whether or not water is required for
the item of work involved in the star rates.
_20.6 Special Rate/Star Rate
When a special rate is involved in a DO, the analysis of the rate approved by competent
authority shall be appended to DO. The form to be used for approval and analysis of the rate are at
Appendices 20.4 and 20.5
21!:7 Technical Check of FinalBUls
20.7.1 Procedure of technical check of Final Bills shall be as under :
(a) All bills will be technically checked by the JE(QS&C)/AGE (Contracts) in the AGE(I)'s/
GE's/GE(I)'s office. After technical check in the AGE(I)'s/GE's office, the following procedure shall
be followed :
(i) Where technical check is exercised by AGE (Contracts) in GE's/GE (I)'s office, "the bills of
rate contracts for supply of materials", "the bills of work orders of Term Contracts &
Handling Contracts, the gross value of which does not exceed Rs. twenty five thousand"
and "other bills, the gross value of which does not exceed Rs. two lakh & fifty thousand"
will not be sent to the office of the CWE/CE for further technical check. These bills will be
first technically checked by the JE (QS&C) of the GE's/GE(I)'s office and then will be
technically checked by the AGE (Contracts) of the GE's/GE(l)'s office as second check.
(ii) All bills in respect of CE's Contracts (except as stated in sub para (i) above) will be
forwarded by AGE(I)/GE(I) under bill forwarding certificate (IAFW-2254) directly to the
office of the CE for further technical check by the Astt/DyI Jt Director (Contracts) posted
in CE's office.
(iii) All bills other than as stated in sub ·para (i) & (ii) above, wi.ll be forwarded by
AGE(I)/GE/GE(I) under bill forwarding certificate (IAFW-2254) to the office of the CWE
(or to the office of the CE where there is no CWE office in the hierarchy) for further
technical check by the ACWE/DCWE (Contracts) posted in CWE's office (or by the
Astt/Dy/Jt Dir (Contracts) posted in CE's office where there is no CWE office in the
hierarchy).
(b) The ACWE/DCWE (Contracts) in the CWE's office (or Director (Contracts) in the CE's
office where there is no CWE office in the hierarchy) will select from the bills, a
percentage for check which should generally cover work of every Sub Division and
embrace every class of work. The percentage of bills to be checked in the CWE's/CE's
office should not be less than 20 percent in case of bill of work orders of Term Contracts
and Handling Contracts. The percentage of other bills to be checked shall be 100 percent
for "bills the gross value of which is Rs fifteen lakh or above" and should not be less than
25 percent for "bills less than Rs fifteen lakh gross value".
(c) The bills which are to be 100 percent technically checked in the office of CWE/CE, will
be sent to the office of CWE/CE complete in every respect and accompanied by all the
documents as stated in para 469 of RMES. In respect of other bills, where GEs are located
at distant places, only Final Bill form IAFW-2262 (in duplicate) complete in every respect,
may be sent to the office of CWE/CE and documents as stated in para 469 of Rlv!ES may
be sent later on in respect of those bills only which are selected for technical check.
(d) The JE(QS&C)/AGE( Contracts) in the AGE(I)'s/GE's/ GE(I)'s office and/or the ACWE/
DCWE (Contracts) in CWE's office and/or Astt/ Dy/Jt Director (Contracts) in CE's office
will also sign the following documents/ statement as technically checked :
(i) Statement of Reimbursement/Refund on variation in prices of materials, fuel and'
labour.
(ii) Statement of Sch B stores and T&P.
(iii) Demolition Certificate (IAFW-2201)
(iv) Statement of requisite tests as provided in the CA that all tests have been carried out
satisfactorily.
(e) The changes/corrections along with financial effect made during technical check
shall be highlighted in the bill forwarding letters/Correction Sheets, while returning
the bills to the AGE(I)'s/ GE's/ GE(I)'s office.
20.7.2 The Para 470 of RMES shall be deemed amended accordingly.
SECTION
MISCELLANEOUS INSTRUCTIONS LIKE ISSUE OF WATER, DEVALUATION,

DEATH, REVOCATION OF CANCELLATION, DEDUCTION OF
I.T. AT SOURCE, FAIR WAGES, LABOUR LAWS ETC.
21.1 Issue of Water from MES Sources to Contrac~or~

In contracts which stipulate that water will not be supplied by MES cases may sometime arise,
where due to unforeseen circumstances, Contractors are unable to make their own arrangements for
water and at the same time, the MES is in a position to supply water from its existing sources. In
such cases, if Accepting Officers consider that water may be supplied by the MES in the interest of
work, suitable amendments of Contract Agreements may be made, before issuing water.
21.1.2 Recovery rate for water supplied by MES, in such cases should be fixed bearing in mind
that neither the Contractors derive any benefit nor the Government suffers any loss. In no case, the
recovery rate should be less than Rs. 5.00 (Rupees five only) for every Rs. 1000/- (Rupees one
thousand) worth of work done priced at Contract rates. Further the amendments to Contract
Agreements issued, should, interalia clearly provide that in the event of breakdown of supply of
water by MES or in the event of the said supply becoming intermittent, the Contractor shall have no
claim on this account.
21.2 Devaluati!)n ofWIJl'ks'
:a.2.1 General Conditions of Contracts (IAFW-2249) provide that work shall be approved by
Engineer-in-Charge at all stages of construction and that in case of disagreement with the contractor
in regard to the quality of work, and the decision of the Garrison Engineer shall be final and
binding.
21.2.2 In order to discourage and prevent execution of works in non-conformity with contract
specifications, it is essential that the GE/Engineer-in-Charge carry out regular inspection of works
at all stages of construction and insist on rectification of work below specification as soon as it is
discovered.
21.2.3 The Engineer-in-Charge must take care to ensure that, as far as possible, situations
where devaluation of work is the only remedy left, are not permitted to arise. Devaluation of work
will be considered only in unavoidable cases and when all the following conditions exist
concurrently :
(a) Departure from contract drawings and specifications has come to light at a fairly late
stage.
(b) Rectification or replacement of work below specification is likely to cause delay in
completion of the work, or will put it out of use and cause inconvenience to the users.
(c) The work is structurally sound and acceptable although it does not strictly conform to the
contract drawings and specifications.
(156)
:i
I
't
I
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21.2.4 Devaluation of work will be permitted by the following officers :

(a) CWE-in respect of contracts concluded by himself and GEs.
(b) Chief Engineer-in respect of contracts concluded by him.
:u.2.5 Prior approval-in-principle to devaluation will, however, be obtained from the authority
competent to accord technical sanction to the whole project.
21.2.6 Devaluation will be effected through a priced Devaluation Statement which will be
technically checked by the DCWE!ACWE (Contracts) of the CWE's office/CE's office (where there is
no CWE office) accepted and signed by the Accepting Officer of the contract. The Devaluation
Statement shall form part of the final bill and submitted alongwith it.
21.2.7 In cases where devaluation has been decided upon and the contractor does not accept or
sign the Devaluation Statement it shall be technically checked as aforesaid and signed by the
Accepting Officer of the contract and the bill prepared, progressed and finalised on the basis of this
statement. As the bill would not be acceptable to the contractor, it would have to be treated as a
disputed bill.
21.2.8 These instructions do not apply to recoveries which are proposed to be effected on
account of devaluation of work consequent on observations made after expiry of the defects liability
period.
21.2.9 Devaluation in respect of items of works for which rates can not be worked out in terms
of IAFW-2249 Condition 62 (Para A to F), should be worked ovt on the basis of what it would have
cost to the contractor at site of work enhanced by 17·5% (seventeen point five percent) to cover over
heads and profits. It may be borne in mind that such rates are not to be termed as 'Star Rates' which
are applicable for pricing deviations specifically ordered by the Accepting Officer.
21.3 Procedure to be Followed in the Eventof Gontractor's<IJ~~~ij:
21.3.1 Advice from Ministry of Law was obtained with regard to the correct procedure to be
followed when a contractor (who was the sole proprietor of the firm) to whom certain contract was
awarded, died during the currency of the contract.
21.3.2 Attention of Ministry of Law was specifically drawn on the under-mentioned three
conditions of General Conditions of Contracts (IAFW-2249) :
(a) Condition l(e) under 'Definitions' which stipulates that the Contractor means the
individual or firm or company, whether incorporated or not, undertaking the Works and
shall include the legal personal representative of such individual or the persons composing
such firm or company, or the successors of such firm or company and the permitted assigns
of such individual or firm or company.
(b) Condition 54-Cancellation of Contract in part or in full for contractor's default.
(c) Condition 55-Termination of Contract for death which stipulates :
"Without prejudice to any of the rights or remedies under this Contract, if the contractor
dies, the Accepting Officer shall have the option of terminating the Contract without
compensation to the Contractor."
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151! PART-II : CONTRACT STAGE
21.3.3 Ministry of Law were particularly requested to give their advice on the following two
questions :
(a) Would it be in order to terminate the contract in accordance with Condition 55
reproduced in para (c) above, and if so, what factors should be examined before taking
this action?
(b) How should names and addresses of legal successors be ascertained and to whom should
contractual correspondence and notices be addressed?
21.3.4 A gist of the advice of Ministry of Law is given in Appendix :n.3. In the light of the
legal position explained therein, the Accepting Officer, instead of proceeding to terminate the
contract under Condition 55, is well advised to properly weigh all factors and then decide whether
there are good and valid reasons not to get the work completed through the legal representative of
the deceased Contractor. The distinction to be noted between Conditions 54 and 55 is that having
recourse to termination under Condition 54 is desirable because by so doing Government would be
keeping alive their right to claim extra risk and cost amount that they may have incurred in getting
the remaining work executed through another agency.
21.4 Revocation of Cancellation oHlontract
Condition 54 of General Conditions of Contracts (IAFW-2249) empowers the Accepting Officer
of the contract to cancel a contract in full or in part on Contractor's default under the circumstances
stated therein and to get the work completed by other means at Contractor's risk and cost. Cases
have occurred where Accepting Officers have revived the contract after cancelling it. While there
'may not be any legal objections to the revival of cancellation of a contract for valid reasons with the
\consent of both the parties, a detailed report explaining the circumstances under which cancellation
. letter is withdrawn, will be rendered to the next higher engineer authority in future with a copy
' endorsed to the concerned PCDNCDA.
21.5 Deduction of Income Tax at Source
21.5.1 GEs are req~ired to peruse website of Income Tax Deptt. and keep themselves abreast
with the latest instructions on deduction of income tax at source.
:u.s.2 GE will be responsible for issue of a certificate of tax deduction at source to the
Contractor.
21.5.3 Specimen of current instructions of Income Tax Deptt. are given in Appendix 21.1.
21.5.4 Similarly procedure for recovery of sales tax at source will be followed by perusal of ST
Department's Instructions from their website.
~1.6_Fair~ag~~~!!l_!lS~ and ~_o_nt!'ac~or's Labiml'R~IDI!at!l!~~

21.6.1 Fair Wage Clause : The proper enforcement of fair wage clause and the MES
Contractor's Labour Regulations will be done by Asstt. Labour Commissioner (Central) and Labour
Enforcement Officer (Central) of different regions under the Chief Labour Commissioner. Copies of
letters of acceptance of tenders should be sent to Regional Labour Commissioner (Central)
concerned. For this purpose it would be necessary to maintain a complete up-to-date list of Regional
Labour Commissioners with addresses and jurisdictions.
pART-U: CONTRACT STAGE 159
21.6.2 The Garrison Engineer should take prompt action in rectification of irregularities
notified by the Inspecting Officers. A list of common type of irregularities is given in Appendix
21.2. In cases of non payment or short payment of fair wages to the workers by contractors, GEs
should take prompt action in rectification of the irregularit<J by recovering the amount notified by
the Labour Officer and paying it to the workers. The GEs also should co-operate with the Inspecting
Officers and keep a constant watch with regard to proper maintenance of registers and records and
display of notices by Contractors and ensure enforcement of MES Contractor's Labour Regulations
forming part of the contract.
21.1'l.3 Copies of work orders (indicating the time limit during which the Contractor is supposed
to execute the work) should be sent to the Regional Labour Commissioner (Central) and Labour
Enforcement Officer/Asst. Labour Commissioner concerned.
21.6.4 Amount of unpaid wages witheld from Contractor's bills under the existing MES
Contractor's Labour Regulations should be paid to the labourers concerned within 60 days from the
receipt of the report from the Labour Welfare Officer or the Regional Labour Commissioner
(Appellate Authority) as the case may be.
21.6.5 MES Model Rules for protection of health and sanitary arrangements for workers
employed by the Contractors have been specified in Annexure 'C' to IAFW-2249. As per Condition
26 of lAFW 2249, the Contractor during the progress of the work should comply with all the rules
and provisions contained in various Acts and the MES Model Rules and should also arrange for the
safety provisions as per theMES Safety Code specified in Annexure 'B' to IAFW-2249. Attention is
also drawn to Condition 58 of IAFW-2249 stipulating the requirement of the Contractor's
compliance to the provisions of Labour Laws as may be applicable (appended as Annexure 'B' to
lAFW-2249).
21.6.6 The GE being the principal employer is responsible to ensure that the Contractors fully
comply with the provisions contained in the above regulations. However, it has been observed that
there has been laxity on the part of many executives in the implementation of provisions. It should
be ensured that the principal employer during his visit to the sites should specifically, check that the
Contractor is complying with the labour laws and rules and should there be shortcomings, action is
to be taken to rectify the same. The CsWE also during the inspections of works should examine this
aspect and satisfy themselves about the compliance of the Labour Laws by the Contractors.
_21~~-~CI_ntract Labour ~~~lation a_nd ~\JJolition)Act 1970
21.7.1 The Contract Labour (Regulation and Abolition) Act 1970 is applicable toMES and MES
Contractors except that the MES will not have to take a licence in respect of labour directly
employed by it. Each Garrison Engineer/Asst. Garrison Engineer (Indep.) under whom any work is
being carried out through contract has to register himself as the principal employer under the Act by
payment of necessary registration fe€ for registering as "Principal Employer". With regard to the
payment of registration fee for registering as "Principal Employer" the CGDA has issued necessary
instructions to PCsDA/CsDA.
21.7.2 Contractors carrying out MES works should be advised to take steps to get their
establishment registered under the Act and obtain licence.
contracts
It has been experienced in the past that in number of cases where contracts were cancelled on
account of Contractor's default under condition 54 of IAFW-2249, the cancellation of contract was
termed "illegal" or "bad in law" by the arbitrators/courts which ultimately jeopardized Govt's stakes
with regard to realization of extra expenditure from defaulting Contractors which the department
had to incur in getting the balance work completed at the risk and cost of the Contractors. In order
to avoid such like situations and other anomalies in these eventualities, the following points should
be taken care of before cancelling any contract & going in for risk & cost tender :
(a) Before cancellation of contract :
(i) The cancellation of contract should always be a last resort and not as a matter of routine.
The cancellation of contract should not be in "haste" or with prejudice mind.
(ii) Proper and sufficient notice(s) should be served upon the Contractor as per this Manual.
Final notice before cancellation should be served upon the Contractor by the Accepting
Officer only after giving minimum two weeks time to improve existing state of affairs failing
which action to cancel the contract should be taken immediately on expiry of notified
period. For breaking open any premises/Contractors' store room etc. at site of cancelled
contract, civil police should be associated alongwith departmental BOO.
(iii) GE should check and ensure that there is no overpayment to the Contractor due to wrong
yardstick or due to incorrect assessment of executed work at site.
(iv) Works executed till then should be carefully examined so that all the defective works are
notified to the Contractor for rectification before cancelling the contract.
(v) Actual scope of work required at site in respect of add back DOs should be reassessed at site
and should be ordered upon the Contractor before cancellation since it has got direct
bearing in determining risk & cost amount from the defaulting Contractor.
(vi) A caveat should be filed in appropriate court before cancellation of contract through Govt.
Pleader so that Contractor does not obtain any ex-parte stay against the department either to
cancel the contract or against conclusion of risk and cost contract.
(vii) The following steps also shall be taken before cancellation of the contract :
(aa) Wherever a contract is not progressing satisfactorily and a cancellation is contemplated
(which should be last resort only), the Accepting Officer shall make a presentation to the
next higher Engineer authority with full details before taking final decision in the matter.
Users may also be kept informed about the developments in the matter including all pros
and cons as a consequence of cancellation.
(ab) The next higher Engineer authority shall evaluate the case as a whole including the details of
lapses on the part of department which are likely to ~ exploited by the contractor during
the arbitration proceedings against the Govt. If it is considered that the contractor is entitled
to an extension of time, he shall advise the Accepting Officer to enter into a supplementary
agreement through an amendment to the contract where the contract period shall be
re-fixed after taking into account all aspects of the case and it shall be made clear in the
supplementary agreement that time is the essence of the contract.
pART-fi : CONTRACT STAGE 161
(ac) After expiry of revisedcompletion period, if the contractor fails to complete the work, the
same should be cancelled due to contractor's default immediately after expiry of due date as
per notice.
(b) Immediately after cancellation of contract :
(i) BOO ordered to identify details of complete/incomplete items of work should be finalized
within one month after cancellation. As far as possible, the defaulting Contractor should be
associated with preparation of above inventory. Where Contractor neglects to sign Board
proceedings or does not involve himself in preparation of inventory/Board proceedings in
respect of complete/ incomplete items of work and materials and T & Plying at site, a copy
of approved Board proceedings based upon which risk and cost tender is to be framed,
should be sent to the Contractor under Registered AD post with request to submit his
objections, if any; on the Board proceedings within a period of fifteen days.
(ii) Cases of overpayment/other irregularities, if any, should be simultaneously progressed
without delaying risk and cost tender action.
(iii) Risk and cost tender framed must be a true replica of the original contract with reference to
terms & conditions.
(iv) Proper watch and ward of executed works/materials lying at site/Contractor's T & P etc has
to be ensured by the GE. In case of any theft etc, action to lodge FIR with Civil Police has to
be initiated by the GE.
(v) Period of completion for left over work should commensurate with the period of completion
originally given in the contract.
(vi) Extra works which are not covered in original scope of contract should be excluded in the
scope of risk and cost tender.
(vii) Risk and cost tender should be concluded on priority after cancellation of the original
contract.
(viii) Selection of Contractors for risk and cost tender and justification of accepted rates in respect of
risk and cost tender should be kept on record after due and proper analysis.
(ix) Action for recoveries for the risk and cost amount from the defaulting Contractors and
particulars for appointment of arbitrator to settle disputes with the defaulting Contractor (in
case he refuses Govt's recovery towards risk and cost) should be initiated immediately after
conclusion of risk and cost tender.
(x) Final bill of cancelled contract including detailed working of risk and cost amount
recoverable from defaulting Contractor should be finalised on priority for production duping
arbitration proceeding.
(xi) The following steps shall also be taken after cancellation of contract :
(aa) After cancellation of contract, the Accepting Officer shall contact the manufacturer of p!:mts
and machinery left over by the contractor/or reputed Valuers to ascertain its residual value
in a very transparent manner. This action shall be taken concurrently while Board of Officers
are preparing the inventory for complete and incomplete items of work.
PART-II: CONTRACT STAG£
After ascertaining the value ofT&P and machinery as suggested above, the Accepting Officer
shall ask the defaulting contractor to furnish irrevocable Bank Guarantee Bond of equal
amount in favour of Govt and take away the machinery failing which the Govt shall not be
responsible for any deterioration of T&P and machinery. In case the defaulting contractor
does not respond to the Govt proposal to furnish the BGB, action shall be taken to properly
secure/protect the T&P till the risk and cost contract is concluded.
(ac) In addition to written documentary record, the Board of Officers shall also prepare
photographic record of work as well as materials, T&P and other machinery at site. In case
of specialist works like .Runways etc whete use of T&P and machinery is huge, efforts should
be made to ascertain details of T&P and machinery viz. make, model number, residual value
etc at the time of initial stage of the work itself.
(ad) Immediately after conclusion of risk and cost contract, (without waiting for completion of
left over work) the amount recoverable from the defaulting contractor towards completion
of left over work should be worked out and consequently the following actions shall be
taken:
(i) The risk and cost amount shall be notified to the contractor, asking him to deposit the same
in Govt. treasury through MRO failing which the Govt shall proceed further in the matter as
per the terms and conditions of the contract.
(ii) Another notice shall be served on the contractor, asking him to furnish the BGB of the equal
amount of the residual value of T&P and machinery by a specified date failing which Govt
shall dispose of the T&P and credit the proceeds in the account of the contractor. If the
contractor again fails or neglects to respond, the Accepting Officer shall give an open
advertisement in the newspaper for disposal of the T&P and machinery through auctionin
and the same shall be sold to the highest bidder and proceeds of the auction shall b
credited to the contractor's account. Specific notice will also be given to the defaultin
contractor to participate in open auctioning if he so desires.
(iii) In case Contractor disputes the Govt claim for risk and cost or neglects to respond,
immediate action shall be taken to establish the Govt claim by invoking the arbitratio
agreement.
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Part Ill
POST COHTRACT STAGf:
INTRODUCTION, ORGANISATION, COMMAND AND
CONTROL & CHARTER OF DUTIES
22.1.1 The Controller of Technical Examination Organisation was created in the year 1935 for
r~1rrviin1r out test checks for the works executed for MoD which was upgraded to Additional
lrli1rPrtor General Technical Examination (ADGTE) in 1949 and functions under the QMG Sranch.
object of this organisation is to ensure that the works executed for MoD (Army, Navy, Air Force)
Including DGNP, Coast Guard, DRDO, CCE (Project), Naval Projects and Deposit Works
J!x<ec11ted by MES etc. are of specified quality as given in the contract, adhering to the relevant IS
~ocjes and Sound Engineering Practice. The purpose of this organisation is to suggest
t:o1rre!ctiive measures for the deficiencies and short comings observed during the
fniipl~ctioJns. Emphasis of the inspections is to ensure good quality work and where poor quality is
llhsprv·ed. suggest measures to rectify the bad work.
22.2.1 ADGTE heads the organisation, with its HQ situated at Kashmir House, New Delhi and
under QMG. AD GTE is assisted by a team of officers comprising of the following :
(i) Jt DG TE Jt DG (QS & C)
(ii) Dir TE Col
(iii) Jt Dir TE Lt Col
(iv) TE Maj/EE
22.2.2 The Command STE formations are co-located with respective Command HQ except
foutthc~m Command which has one additional STE formation at Chennai due to larger Area of
~es:porlsit>ili1:y (AOR). Each STE Command hasTEs with one officer from 6/R, E/M, SW category.
location and break up of each STE Command is as under :
Command Location STE
iI I
Northern Jammu Colonel
Western Chandigarh Colonel
South Western Jaipur SE CQS & C)
Central Lucknow ACE
Eastem Kolkata Colonel
I· i
Southern (Pune) - I Pune ACE

Southern (Chennai) - II Chennai Colonel
(165)
PART-lll : POST-CONTRACT STAGE
The area of responsibility of each STE Command is almost same as of respective Command HQ
(Army) except for few stations due to proximity of MES formations. The MES formations supporting
Navy, Air force and DRDO have been distributed considering geographical location and travel time
bfma.intaining unity of Command.
22.4 ·············-
22.4.1 The ADGTE Organisation functions under the direct command and control of QMG for
all purposes except for postings and transfers of the officers and staff which is done by E-in-C's
Branch/MS-12.
22.5.1 ADG TE
(a) Perform the functions of Head of TE Org.
(b) Site examination of works with the team of STE during progress and after completion.
(c) Submit periodical report to QMG on inspection of works.
(d) Liaise with three Service HQs, E-in-C's Branch, DRDO, DG Coast Guard.
(e) Initiate Draft Para (DP) and Serious Case (SC).
(f) Scrutinise selected contracts concluded by the CE Zones.
(g) Tech check of percentage of final bills.
22.5.2 STE/TE
(a) Site examination of works with team of officers.
(b) Scrutinise selected contracts.
(c) Raise observations based on team inspection reports.
(d) Obtain user feedback on observations rectified by MES.
(e) Settle observations based on reply of CE Zones.
(f) Interact with PMG, Command CEs and staff of Command HQs.
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SECTION
VISITS AND INSPECTIONS, TECHNICAL EXAMINATION,

FORMULATION OF OBSERVATIONS &
INTERACTION WITH STAFF
2a.fGe~~~~
23.1.1 It is not possible for the TE organization to check each and every work executed by the
construction agency. Further MES has a system in place to carry out periodic checks by next higher
formations. However, the officers of TE organization inspecting the works will also be responsible to
t:hl! extent applicable for any shortcomings observed at a later date. Therefore emphasis of
inspection is on quality inspections rather than quantity. Intensive inspections are
carried out of selected works covering all aspects by entire team of STE formation.
23.1.2 It will be the responsibility of Zonal CE to ensure that all points observed by the TE
organization during inspections are applied to all other ongoing works in their AOR. In case, similar
mistakes are found in other works, the observations will be converted to Serious Cases.
2a.2 Guidelin.·····esro~::mw~~-
.. ....• ~~~~
-'-'--'----'-'-~··.::_·· '
(a) Inspections shall be carried out on fortnightly basis by entire team of STE office
comprising B/R, E/M, SW and Arch officers.
(b) The criteria for selection of proposed wks for inspection will be :
(i) Amount of contract and magnitude of work.
(ii) Based on available input, from environment.
(iii)% progress of work:
(aa) Minimum 30% to SO% physical progress for first inspection.
(ab) Minimum 70% physical progress but within Defect Liability Period (DLP) for
review inspection.
(c) In every inspection, only one work each of CE, CWE, GE shall be inspected.
(d) Additional work may be inspected by STE team on specific request from Stn Cdr.
(e) STE team will carry out review inspection of previously inspected work while visiting
nearby Station.
(f) March and August will be kept for settlement of observations and during this period no
inspection will be undertaken by STE team.
(g) At least one contract apart from building works i.e. furniture, road, electrification, water
supply and periodical services in a station will be selected for check.
(h) No work shall be checked more than twice. In exceptional and specific cases, prior
approval of ADGTE shall be sought before carrying out further check.
(i) Before and after the inspection STE shall meet the Stn Cdr.
(167)
168 PART-Ill : POST-CONTRACT STAGE
G) Good quality work, innovative practices & adherence to PDC/timely completion will be
commented and highlighted in the inspection report.
(k) Advisory on shortcomings and hindrance on account of user and PMG will also be
factually reported in the factual notes.
(1) No work will be inspected by less than three officers.
(m) Whenever ADGTE or any other officer is detailed for inspections, he will accompany the
complete team of STE.
23.3 Conduct otirlspfi~ilfi'
23.3.1 On arrival at the Stn for inspection, STE Team will meet the Stn Cdr along with GE and
apprise him about the works proposed to be inspected. The purpose of this meeting is to obtain the
users point of view for the works and in case any additional feed back is required from the users, it
may be obtained prior to the inspection.
23.3.2 After obtaining the feed back from the users, the STE team will go the selected site and
the GE will give a presentation to the team bringing out the salient points of the work and the points
of the users and the contractor. This presentation will be attended by the PMG, site executives, and
the contractor. Intensive site inspection will be carried out by the team of officers with special
emphasis on the specialization of each officers viz the Surveyor Officer will thoroughly scrutinse the
contract agreement, E/M officer will check the works pertaining to the trade and so on. However, if
during inspection, any point is noticed by any officer outside his trade, the same shall be
reflected/discussed during the site inspection.
23.3.3 All suggestions/recommendations of Stn Cdr/users/ PMG will be reflected in factual
notes prepared after the inspection which will be signed by the site executives, CWE/CE rep,
contractor and the team members of the inspecting officers. After the inspection STE along with his
team will meet the users rep/Stn Cdr and hand over a copy of the factual notes to ensure that all the
points projected by the users are covered in the inspection.
23.3.4 On written request of Stn Cdr, additional works may be inspected by the team of STE.
In no case more than two additional works will be undertaken for inspection by the team in one
station.
23.3.5 GE and the contractor shall be given an opportunity to show good quality work when
the inspection team points at bad work. These will also be clearly reflected in the factual notes.
23.3.6 The GE and the contractor will be given an opportunity to indicate hindrances from
user and lack of support from the PMG/ Stn HQ if any. The same will be verified by STE Team and
clearly reflected in the factual notes.
23.4 Verification· of Rectificatioll. otDefeets;
·- ' ' '' ------- --
'" ' '' '
23.4.1 Observations must be supported with digital photographic record for reference in next
visit. This will facilitate confirmation of defect rectification.
23.4.2 If verification reveals that the rectifications as confirmed have not been carried out,
then a Serious Case should be published in the Quarterly Report.
i:
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pART-III : POST-CONTRACT STAGE 169
23.5 Scrntinyof GontractAgre,liien~

---·-· -~---
23.5.1 STEs will ask soft copy of accepted CA with all amendments directly from Accepting
Officer and carry out scrutiny of CA. Ambiguities ha-ving substantial financial implications in the
contract and impacting quality of work should only be raised.
23.5.2 STEs will not ask MES authorities for details in support of reasonability
of the rates/amounts accepted. Observations on excessive rates will be taken only if STEs are
sure in their mind, with the information available with them that the rates accepted are excessive
and are in a position to give their reasonable rates.
23.6 Site Examhu~tioll;nt'iiiJ
23.6.1 The aim of site examination of works is to detect poor quality materialor poor quality
work carried out at site. The effectiveness of site examination of works will, to a large extent,
depend on meticulous and systematic preparatory work which entails:
(a) Going through contract agreements in detail.
(b) Closely studying relevant provisions in SSR, Indian Standard Specifications/Codes etc.
(c) Listing out points to be verified and ckecked at site taking into account anticipated
progress at site.
23.6.2 Serious cases will be brought to the notice of the CE, CWE and also reported to ADG TE
HQ specifically in a separate communication in respect of works which have not been accepted by
users due to mqjor defects or works in which construction failures/ serious defects have occurred.
23.6.3 Once a work has been selected for inspection, it will be checked
thoroughly so that no defects and irregularities are left out. Inspecting team shall
be also held accountable if defects are noticed subsequently.
23.6.4 The factual site inspection notes should be elaborate and indicate the quantum of
defective work. Report of site test conducted by inspection team will also be endorsed along with
digital photographic record in a CD.
23.6.5 The observations in factual notes shall be divided into Minor, Major, Special
Observation, Contractual and advisory. The factual notes will be signed by Inspection
team , GE, Rep of CWE, Rep of CE and contractor. One copy of the signed factual site notes
will be kept by each of the signatory. Once the statement of facts as per the site notes is agreed upon
between the team of STE, MES executives and contractor, the same will constitute a firm basis for
subsequent formulation and finalization of observations.
23.6.6 The factual notes are therefore, very important documents and must be prepared with
utmost care. These must be :
(a) Strictly factual indicating as to what exists at site.
(b) Indicating exact location and extent of defects.
(c) The defects should be defined with respect to qualitative parameters like strength,
shape, size, grading, make, thickness etc as per site to frame the observation precisely.
23.6. 7 The actual quantity of defective work involved in an observation should be ascertained
before leaving the station, which should be the basis of assessment by checking number of places
selected by the STE as well as by MES before incorporating in the factual notes.
170 PART-In: POST-CONTRACT STAGE
23.6.8 If it is intended to make a particular defect applicable to the entire work under the
contract, GE and the contractor should be given opportunity to show similar work executed under
the same contract conforming to the standards laid down in the contract.
23.6.9 All site information required for arriving at facts must be collected before leaving the
station instead of asking for such particulars on return to the STE's HQ.
23.6.10 During visit to site, deviation orders, amendments particularly regarding relaxation of
original provisions in the contract, changes in the scope of work etc., which are likely to be benefit
to contractors must be looked into for the reasons & method of pricing and discussed as related to
the site conditions. Measurement books etc may also be looked into for inconsistencies.
23.6.11 STE and his team while visiting a work shall inspect site documents such as Works
Diary, Works Passing Register, Test Register, Works Site Order Book and the like, and the
GE/Engineer-in- Charge can be asked to show the same at the site of work. When the work has been
completed, STE can have a look at the site documents, if he so desires at the GE's office. It should be
checked whether the work was inspected by CE/CWE and nature of remark to confirm whether
adequate opportunity has been given to contraci:or for the rectification of the defect.
23.7
23.7.1 Vouchers, test certificates etc will not be called for once the inspection is
completed. These shall be reflected in the observations as vouchers/test certificates are not held
with executive.
23.7 .2 At times it transpires that products, although bearing ISI certification mark, are not
actually found conforming to the IS but are of sub-standard quality. Where STE have good reasons
to doubt the quality of any item, samples thereof may be selected and sealed jointly with
the MES Rep and contractor for getting the same tested from reputed NABL
accredited labs.
23.8 Inspection of Wor~$~Sp~cl•taiitll
23.8.1 ADGTE's organization is at times asked by Ministry/ Service Headquarters/
users/E-in-C to site examine specific works and submit report. Such requirement generally
originates from users dissatisfaction with the quality of works executed.
23.8.2 In such cases the STE should study the contract agreement thoroughly before going for
site examination. The staff authorities and senior users should also be contacted to ascertain their
specific complaints, if any; and if possible, they should be requested to accompany the team of
officers at the time of site inspection.
23.8.3 The complaint may be either in respect of materials and workmanship and or in respect
of planning and design. All such points should be examined by the inspecting team apart from other
defects and lapses that may be detected by them. Exact causes of the defects should be found out
including those originating from planning and design. Remedial measures being taken by the MES
with regards to all such defects should also be ascertained.
23.9
23.9.1 A minimum of one paid bill under each CE Zone per quarter and one bill each of CWE
and any one GE under the CE will be checked by the STE!TE. The check will be from bills,
PART-ID: POST-CONTRACT STAGE ,,
-~-- t -- .
:;:, v c i ·-1:'' 7-:.,
171 .
'-, ' _'(
measurement books; deviation orders, and other documents. The check should be earned out soonc
after the paid bills are received from Principal CDNCDA office and observations progressed
expeditiously. All efforts should be made to finalize the observations expeditiously so that
adjustment can be made by MES within two years of payment of final bills.
23.9.2 The technical check of Supply Orders and Job Orders shall not be carried out by the
inspecting officers since these are not within the purview of that organization.
23.10 Formulation.a.uliJ$$qij~{~ifftllll:il
(a) Each observation will have a serial number. Grouping of several observations for
different items of trade as sub item of the same serial numbersuch as 2(a), 2(b), 2(c),
2(d), 2(e) etc shall not be done.
(b) Minor observations shall be included under separate para in factual notes and shall not
be monitored by STE.
23.tt·Mmofoti~i[J18
All single observations likely to have financial effect less than Rs. 10,000/- in CE's contracts, Rs.
5000/- in CWE's contracts and Rs. 3000!- in GE's contracts will be treated as minor observations.
These will be pointed out to GE and CWE, leaving it to the CWE to take further action on the same
as he deems fit. These shall be included in factual notes under separate Para. Apart from the first
intimation of the observations, no further correspondence or monitoring progressing will be done by
STEs in respect of such minor observations. Once the observation is declared as minor by the GE,
based on the financial effect, STE shall no way be responsible for the settlement of the observation.
Minor observations will not be considered by the STE in his list of pending observations. The
amount at which the minor observations are settled by the GE/CWE/CE shall not be
considered by the STE in deciding the overpayment for inclusion in Draft Para.
23.12 MaJoroiiJ~Iitll
23.12.1 The observations having financial effect beyond the limits laid down for minor
observations are Major Observations. These shall be monitored by STE. The observation letter
consequent to site check of works will be issued within one week of carrying out the inspection. The
observations arising from site check must be based on factual site notes.
23.12.2 The observation letters will be signed by STEs. Similarly the settlement of the
observations will be decided and letter signed by the STE only and not by TE. Letters signed by TEs
and countersigned by STEs are not acceptable.
23.12.3 Framing of observations must be precise, clear, and quantified, bringing out the lapses
and defects of the defective work. As far as possible, emphasis shall be on rectification of defects
rather than the recoveries. The cases where rectification is not feasible but the work is able to meet
safety requirement, functional requirement devaluations or price adjustment may be accepted.
Extent of devaluation shall be finalized at site based on factual assessment.
23.13 on
23.13.1 Observations on drafting of Contract Agreements, amendments to contracts, approval
to deviation orders or other decisions will be addressed directly to the Accepting Officer, because a
GE may not be in a position to offer a clarification in respect of actions of the Accepting Officers.
172 PART-III : POST~CONTRACT STAGE
23.13.2 Where more than one contract is involved in respect of a particular observation, the
Accepting Officer should be· apprised of it so that the finalized action is made applicable to the other
contracts also. This will avoid repetition in correspondence.
23.13.3 If the lapse noticed is of recurring nature, the concerned formation may be requested
to take suitable steps for preventing the recurrence.
23.14 Spe_cial Obs_1!!!!!!4~s:
The factual statement will be scrutinized and the observations likely to have an overpayment of
more than five percent of the contract amount or Rs. 75,000/- whichever is less on a particular
observation under one contract will be side lined and marked on the office copy as 'Special' and
initialed by the STE. Thereafter draft of a separate detailed and self explanatory letter will be
addressed to the ADG TE. The special observation will be issued by the ADGTE to the Accepting
Officer after due scrutiny. The copy of special observation shall be given to CE Comd and DGW. An
effective watch must be maintained on the progress of the special observations.
23.15 STE InteractlqpWlthSta~--
23.15.1 A copy of tour programme of STE and his team will also be sent to Stn HQ in at;dition
to the concerned MES executives. The GE/CWE would ensure that meeting is fixed between the Stn
Cdr and the visiting STE/TE.
23.15.2 After inspection, STE shall inform Stn Cdr about major defects in quality of work and
serious lapses if any; observed during the current inspection. STE will also bring out discrepancies in
BPs, lack of co-operation ftom user and highlight the cases where Stn Cdr's intervention may be
necessary for expediting completion of the work (e.g., delay in handing over of the sites by the
users). The additional support required by MES/Contractor to expedite the work and clear
bottlenecks shall be brought to the notice of Stn Cdr.
23.16 STE InteractionWitlistiinaAitet~tii~~((i!(t
------~-- . •..... ·.... · ... · .· . ·.
-~.c.-~---~- .. "' . -
23.16.1 After return of STE to his HQ, the STE will formulate observations based on factual
site notes and address the same to the GE with copies to CWE/CE Zone and ADG TE HQ as per the
existing instructions. In addition, a contract wise list will be compiled listing out the defects
observed requiring rectification/replacement of sub-standard materials and workmanship. These
lists will be forwarded by STE to the Stn HQ with copies to all addressees. The defects should be
described in a clear manner which 'can be understood by Staff.
23.16.2 While forwarding the list of rectifications, the STE will request the Stn HQ to monitor
the progress of rectifications and to ensure that the defects are rectified within two months and
intimation of completion/progress is sent to the STE.
23.17 STE Presentatl~rr~~:~ciilfl+
STEs shall brief CE Comd and COS of Comd HQ about state of infrastructure in Comd AOR in
every quarter. STE will also apprise the staff at Comd HQ about details of inspection carried out in
recent past and apprise them about :
(a) Serious lapses/ defects observed during technical examinations.
(b) Anomalies observed in the board proceeding stage.
(c) The specific station issues creating bottlenecks and delaying progress of work.
PART-III : POST-CONTRACT STAGE 173
.23.1~ V~!'ificat;!on of J!.~ctl114~~!;~!~~~eiji~:

23.18.1 During subsequent visits to the Stn by STE/TE, confirmation about rectification of
defects should be verified on test check basis and results recorded jointly with the MES rep
accompanying the STE/TE. Where verification reveals that the rectifications have not been carried
out the same will be informed to the Stn Cdr, zonal CE and serious case shall be initiated for
approval of ADG TE.
23.19 Progressing otObse~~tiSJi
23.19.1 The GE is fully responsible for Progressing, Finalization and settlement of
observations. The minor observations will be settled within3 months. The major observations must
be settled with a maximum period of six months of raisingtnerii.
23.20 Monitoring at Integrated tleadgtt~ers otujtel'll;~ j~ej
23.20.1 Necessity for expeditious follow up action on the case being reported by ADGTE and
on the suggestions for improvement is of prime importance. Targets for disposal of cases shall be as
under:
(a) All efforts will be made to finally dispose of case referred by ADGTE to E-in-C's Branch
within a period of four months. However, in case where the responsibility for lapse on
the part of executives and contractor has to be fixed through investigation, this time
may be extended up to six months.
(b) Action required, if any, against staff and contractors should commence immediately
after the investigations. Cases requiring action against service personnel and
regularization of losses should be reported to the staff at the appropriate level, for all
MES CGO the same will be undertaken byE-in-C's Branch (D&V) with MoD.
(c) Feedback on recommendations/suggeJtions of ADGTE for improvement in
specifications, contract administration etc. should be forwarded by E-in-C's Branch to
ADGTE within period of two months. However, where inputs are required to be obtained
from lower formations, this period may be extended up to three months.
(d) To monitor the above action, a meeting between DGW and ADGTE will be held once in
three months.
23.21 Monitoring atColfiU1adlftl~~~~
23.21.1 STE should liaise with Staff at Command HQ and evolve suitable monitoring system
with a view to achieve the desired results. Bi-Monthly/Quarterly meetings (as may be decided by
Command HQs) with Brig Q, ACE (Wks), Jt DG (Contract)/Dir (Contract) and STE would be useful
to monitor and expedite the following issues :
(a) No. of observations outstanding for more than one year.
(b) Follow up action on special observations, serious cases and draft paras.
(c) DP and Serious cases observed during current inspections.
(d) Cases in which no replies are forthcoming from Zonal CEs/CsWE/GEs.
(e) Progress on implementation of suggestions/ recommendations being made in ADGTE
Quarterly Reports.
174 PART-III : POST-CONTRACT STAGE
(f) Response from Station HQs to reports being sent to them after inspection.
(g) STE should maintain detailed record of discussions and issue minutes of the meeting;
copies of the minutes should be sent to ADGTE's HQ as well.
23.22 Periodical MeeUngsb~~Q~p\$~~~~~~'111
CWE and STE/TE should arrange meetings once in six months. At least six weeks before such
meetings, the STE will furnish a list of outstanding observations to the concerned CWE, STE/TE will
discuss these observations to arrive at settlement and cater for the time required for this purpose in
tour programme. Such meetings will preferably be attended by all concerned staff required for
discussions and settlement of observations. The purpose is to liquidate as many outstanding
observations as possible during such meetings. Mer such meetings, the CWE will render a report to
the Zonal CE indicating the position of observations as follows :
(i) No. of observations outstanding before the discussions.
(ii) No. of observations settled during di~-:ussions.
(iii) No. of observations outstanding after discussions.
(iv) No. of outstanding observations where replies have been sent to STE and number where
replies have not yet been given with reasons for delay in replying.
23.23 On receipt of details from the STE/TE/ATE, the recoveries in respect of items agreed to by
the GE shall be finalised in consultation with the CWE, where necessary (CWE's concurrence
should be obtained where the financial effect of the observation in respect of an individual item
exceeds Rs.S,OOO/- and where the total of all observations exceeds Rs 25,000/-) and the
correct financial effect intimated to the Contractor. At the same time it should be got confirmed
from the STE/TE/ATE that he has covered all the points noted during his visit.
23.24 Before finally agreeing to any recovery suggested by the ADGTE/STE/TE, it is necessary that
the matter is taken up with the Contractor concerned and his point of view carefully examined.
In order to bring the matter to a finality, the following line of action should be adopted :
(i) Address a letter to the Contractor, with a provision that unless his reply is received
by. ....... (date), it will be assumed that he has no objection to the recovery.
(ii) If the Contractor fails to reply by the specified date, the recovery may be agreed to and
action for its realisation initiated, with intimation to the Contractor.
(iii) In case the Contractor replies and disagrees with the recovery, his reasoning should be
examined and if found convincing, the matter should be taken up again with the
STE/ADGTE.
(iv) If Contractor's reasoning is not acceptable, before or afrer referring to the ADGTE/STE, a
final letter should be issued to the Contractor intimating that Govt. do not agree to his
contention and that he should pay the amount by. .... (Date), failing which it would be
realised by other means (such as "from other dues" or from Security Deposit, etc., as
applicable)
Note : It is important that letters to the Contractor are sent under Registered Ack. Due cover and postal acknowledgements
retained in safe custody.
pART-ill : POST-CONTRACT STAGE 175
23.25 STE's/TE's/ATE's observations must be received during the currency of the contract or before
payment of the final bill, so that the GE/CWE obtain Contractor's reaction by personal contact
after issue of the letter as suggested above.
In terms of para 4 of Condition 67 of General Conditions of Contracts (IAFW-2249), the right of
the Government to adjust over and under payment in respect of audit and technical examination of
works and final bills, is limited to a period of two years from the date of payment of the Final Bill.
This provision should be borne in mind while dealing with TE's observations and an all out effort
made to settle TE' observations expeditiously.
23.26 It shall be ensured that intimation to the contractor with regard to defective work is sent
before the expiry of the defect liability period. STEs/TEs/ATEs should check the work well
within the defect liability period so that the question of recovery could be taken up with the
Contractor before the expiry of the defect liability period. To enable STE/TEs/ATEs to visit
works as early as possible after completion GEs should forward a copy of the completion
certificate to the concerned STE.
23.27 It is important that so far as correspondence with Contractors is concerned, no mention is
made of Technical Examination Branch. Such correspondence is to be conducted by theMES on
the basis that the claims are being preferred as a result of their own observations. Furthermore,
no reference should be made to the ADGTE's Organisation in the Government statement of case
which may be submitted to an Arbitrator or during the course of hearing before him. The MES
formation concerned is to deal with the case as if the recovery claimed from the Contractor is
based on their own observations.
23.28 Sometimes after an agreement is reached between a GE and the STE/TE/ATE in regard to
specific factual information on which the STE/TE/KrE is to base his observations, the
agreement is revoked resulting in protracted correspondence between MES and STE/TE/ATE
thereby delaying settlement of STE's/TE's/ATE s observations.
To avoid such cases and to achieve speedy settlement of observations, the following procedure
for dealing with and finalisation of ADGTE's observations is followed :
23.28.1 After the first Site examination of works, when once the statement of facts in regard
to the work is agreed upon between the ADGTE's organisation and the MES executives on the basis
of a thorough check of the correctness of the factual information on the ground, that statement
should be accepted as firm for subsequent discussions and finalisation of observations. Where,
however, an observation relates to interpretation of provisions in the contract documents, and
where no agreement is reached between a GE and the STE/TE/ATE in the first instance, the matter
should be immediately referred to the Accepting Officer for decision.
SECTION
DRAFT PARAS (DPs) AND SERIOUS CASES (SCs)
24.1 Draft Para.grapti~;

The Draft Para shall be raised by ADGTE and settled by CE Command. Once all observations
are finalized and if total financial effect of recovery/rectification/minus DO agreed by MES in one
contract exceeds the limit given below, a draft of "Draft Para" shall be raised by ADG TE HQ. The
financial effect of minor observation shall not be taken into account. The financial limits of DP are
as follows :
,------------------------,-----------------------,
Value of Work Limit of Draft Para
Upto Rs. 15 Lac Rs. 25,000 or 5% of CA Amount whichever is less
Over Rs. 15 Lac and upto Rs. 50 Lac. Rs. 50,000 or 5% of CA Amount whichever is less
Over Rs. 50 Lac and upto Rs. 1 Crore. Rs. 1,00,000 or 5% of CA Amount whichever is less
Over Rs. 1 Crore and upto Rs. 5 Crore. Rs. 2,00,000 or 5% of CA Amount whichever is less
Over Rs. 5 Crore and upto Rs. 15 Crore. Rs. 4, 00,000 or 5% of CA Amount whichever is less
Over Rs. 15 Crore. Rs. 6,00,000 or 5% of CA Amount whichever is less
24.1.1 All Draft Paragraphs will be forwarded to Accepting Officer for offering his comments
on wording of the draft paragraphs with copies to CE and ADG TE. Comments, if any; may be
offered by Accepting Officer. Non receipt of comments within one month will be treated as NIL
comments.
24.1.2 If Accepting Officer in his comments does not agree or suggests any modifications, the
STE will immediately furnish the correct factual position and forward his views/recommendations
to ADG TE HQ together with relevant jacket for deciding further action by ADG TE.
24.1.3 Immediately; after the draft Para is issued, a letter indicating the shortcomings
alongwith the recovery/rectification cost will be forwarded to respective Command CE with a copy
to DGW.
24.1.4 Further investigation on DP will be taken by CE Command. After taking all corrective
actions final outcome will be communicated by CE Command to ADGTE, STE office, CE Zone, CWE
and GE for closure of case.
24.1.5 The monitoring of Draft Para cases shall be carried out by CE Commands. The details of
DP shall be included in the Quarterly report published by ADG TE.
24.1.6 CE Command (E8) shall submit six monthly report on outstanding Draft Para toE inC
Br. and ADG TE Dte.
24.2 serious Oases
24.2.1 The serious cases shall be raised on concerned CE Zone and settled by E in C's Branch.
The observations of serious/ftaudulent nature irrespective of financial effect shall be marked on the
(176)
office copy of factual statement as 'Serious' and shall be raised by ADG TE. The following types of
observation will be considered for Serious Case;
(a) Intention to fraud
(b) Negligence in Execution
(c) Faulty planning and inadequacies inCA with negligence/ doubtful intention.
(d) Any action causing undue benefit to contractor.
(e) Rectification confirmed by executives but not executed on ground
(f) Fake test certificates, vouchers.
24.2.2 All serious observations of one Work will be clubbed by STE and a detailed letter shall
be forwarded to ADG TE for approval. ADG TE will ask the comments directly from CE Zone. Non
receipt of comments within two months will be treated as NIL comments. CE Zone shall forward
para wise comments along with all supporting documents to establish his comments. ADGTE shall
evaluate the reply and if found appropriate, Serious Case shall be published.
24.2.3 The Serious Case shall be included in the Quarterly Report. E in C's Branch will direct
CE command to order BOO to pinpoint the responsibly and initiate Disciplinary action/
Administrative action against responsible executives and contractor.
24.2.4 Based on findings of investigation suitable amendment shall be carried out related to
framing of contracts and other related issues. The DGW shall forward closure letter in respect of
Serious Case to ADGTE, CE Comd, CE Zone and STE.
24.2.5 The monitoring of Serious Case shall be carried out byE-in-C's Branch. The detail of SC
case shall be included in the Quarterly report published by ADG TE Dte. DGW (ES) shall submit six
monthly reports on outstanding Serious cases to ADG TE Dte.
24.3 Procedure to deal wltb. •DGTE'$<qi.ij;l~;tiiJ

24.3.1 DPs are to be progressed for investigation and action against erring individuals at
Command Level. DPs in case of ADG (OF & DRDO) shall be progressed toE-in-C's Branch for action
against erring individuals.
24.3.2 The CEs Command should bring the DPs to a logical conclusion within six months of
their raising by the STE.
24.3.3 CEs Command shall submit a quarterly report on the progress of DPs toE-in-C's Branch
and also ADGTE. The reports for QE Sep, Dec, March & June shall be submitted to reach E-in-C's
Branch and AD GTE by end of next month to the quarter.
24.4 Procedure to dealwtth AbGTE'ssericnl'~i9~~e~tti,il

24.4.1 On receipt of a copy of the ADGTE's note containing a serious case from E-in-C's
Branch, the Command CE will order or get ordered a Technical BOO within a period of not
exceeding one month from the date of letter of E-in-C's Branch for investigating the lapses noticed
byADGTE.
24.4.2 The BOO shall be given a time of not exceeding two months for submission of its
proceedings containing findings and recommendations.
178 PART-III: POST-CONTRACT
24.4.3 The CE Zone shall examine the findings of BOO and submit his recommendation to his
CE Command in a period not exceeding one month, from the date of submission of proceedings by
the BOO.
24.4.4 The CE Command after examining the findings of the Board and recommendations of
CE Zone will submit his recommendations to E-in-C's Branch within a month of submission by CE
Zone alongwith proceedings of BOO and recommendations of CE Zone.
24.4.5 Thus even after considering few days for transits at various levels, the final
recommendations of CE Command MUST repeat MUST reach E-in-C's Branch within SIX months of
referring the serious case to the CE Command alongwith present address of the individuals
responsible for the lapses.
24.4.6 The cases will then be examined in CM Dte of E-in-C's Branch and further course of
action will be decided by the DGW based on the degree of lapses and the recommendations. The
decisions shall be of the following three types :
(i) Closure of the Case without any Disciplinary Action : If no merit or substance
has been found in the case raised by the ADGTE or if the lapses are of minor nature not
warranting action on individuals.
(ii) Disciplinary Action : Initiation of disciplinary action as per laid down procedure and
CCS Conduct Rules, if the lapses are found to be very serious and appear to be intentional.
(iii) Issue of Performance Counselling : Depending on the degree of the lapses and if it
is considered that the lapses committed do not call for disciplinary action, issue of
performance counseling may be decided upon in respect of serving individuals.
Note : 1. The necessity to strictly comply with the time frame and procedure laid down in the preceding paragraphs >leeds
no emphasis. Any case delayed beyond the time frame laid down will be accompanied with a 'Delay Report' and with
recommendation of CE Command on who is to be blamed for the delay.
2. The performance counselling shall be issued by Chief Engineer Zone concerned (through E-8 Channel) to which the
1.'
case pertains. Copies of letters of Performance Counselling shall be sent to the IO & RO in the ACR channel for
information. The CEs Command should ensure issue of the letters of performance counselling within one month or
receipt of decision of DGW in their HQ and simultaneously send two sets of such letters to E-in-C's Branch for
forwarding one set to ADGTE for his reference and record.
EXAMINATION OF MES WORKS BY eve
(eTE'S ORGANISATION)
f
25.1 CTE's organisation of Central Vigilance Commission (CVC) has decided to carry out
independent Intensive Examination of Works executed by MES valued over Rs. 10 crore.
Detailed instructions on the subject matter are contained in Jt Dte Gen (D & V), E-in-C's Br
letter No. 78650/Policy/98/E-1 D dated 12 Jun 06 (Appendix 25.1).
25.2 The works which are selected for check by CTE's organisation of CVC shall not be checked by
ADGTE's Br unless specifically ordered in writing by DGW/E-in-C, on the recommendations of
staff authority.
(179)
SECTION
26.1
Condition, 67 of IAFW-2249 provides that whenever any claim for payment of a sum of money
arises under a Contract, the Contractor shall on demand make payment of the same or agree
for effecting adjustment from any amount due to him by the Govt. If he refuses or neglects to
do so on demand, Govt. shall be entitled to withhold the amount from any sum then due or
which at any time thereafter may become due to the contractor under the same contract or any
other contract with the Govt. or from the Contractor's Security Deposit or Security Bond
amount and to retain the same by way of lien till the Contractor pays the amount or till the
claim is settled or adjudicated upon or till the Contractor furnishes a fixed deposit receipt
endorsed as" directed by the Accepting Officer or a guarantee bond from a Scheduled Bank for
the same amount is furnished, as directed by the Accepting Officer. The rights conferred under
Condition 67 will not extend beyond a period of 2 years from the date of payment of Final Bill
(or the date the net payment of the minus Final Bill is communicated to the Contractor).
26.2
All overpayments detected must be notified to Contractor within 2 years from date of payment
of final bill. Practice of circulating recoveries to all MES formations results into multiple
recoveries which leads to disputes/litigation.
To overcome above situations, the following actions should be taken :
(a) The TEs observations must be got settled within a maximum period of 12 months failing
which disciplinary aspect for the delay will be considered against the defaulters by the
Zonal CEs concerned.
(b) The Contractor shall be notified by the GE by Registered post about the defects detected
during Technical Examination within 2 weeks of TEs visit, without waiting for formal
observations.
(c) The demand for the recovery due to the Contractor will be notified not later than 15
months after the payment of Final Bill (or notification of the amount of minus bills) by a
Registered post, alongwith reasons and details in support of the amount of the demand. In
this notice of demand the Contractor will be asked to deposit the amounts within a date to
be specified, allowing a period of one month, adding that if the Contractor fails to deposit
the amount by the specified date, action will be taken to recover/withhold the amount
from his dues and assets.
(d) Where a Contractor fails to deposit the amount by the specified date, immediate action
will be taken for recovery/withholding the amount from his dues as mentioned in sub para
(c) above.
(180)
: POST-CONTRACT STAGE 181
(e) If in any special circumstances, it is not possible to finalise TEs observations and/or the
amount of recovery, a fair assessment will be made by the GE and a demand made on the
contractor within 15 months of the payment of Final Bills (or in the case of minus bill, 15
months from the date, the net amount of minus Final Bill is communicated to the
contractor) an':! follow-up actions will be taken as aforesaid. Such cases will be
simultaneously reported by the GEs to their respective CsWE and CEs with reasons for
delay. The amount of recovery will be so assessed that it would be sufficient for the
purpose of recoveries when finalised but not far in excess. As and when the final recovery
figures are known action will be taken to refund the difference between the firm amount
and the amount realised/withheld.
of
26.3.1 Para (g) of Condition 67 states that the right of Government to adjust any over and
under payments shall not extend beyond a period of two years from the date of payment of the
undisputed portion of the final bill or in case of a minus bill, from the date, the net amount of the
final bill is communicated to the contractor. A case arose when the Govt. raised a claim for recovery
after a period of two years from the date of payment of the Final Bill. The Contractor objected to
this on the plea that under the above Condition, Government could not raise any claim if the period
of two years had elapsed from the date of payment of the Final Bill. Advise was obtained from the
Ministry of Law in the matter. The implications of the provisions of Condition 6 7 are that it gives the
Government two distinct rights against the contractor, viz.
(i) The right to adjust the claim against some other money due to the Contractor or from his
Security Deposit or Security Bond amount already in possession with the Government.
and
(ii) The right to demand the payment of the Government's claim from him.
26.3.2 Under Article 149 of the Limitation Act, the right of Government to demand payment
of Government's claim against the contractor is 30 years.
26.3.3 It is only the right of adjustment of money claimed, mentioned at (i) above, which is
limited to two years under para (g) of the above condition 67, and it does not in any way restrict the
right of the Government to demand payment and recover overpayments otherwise than by
adjustment i.e. by suing the contractor if he fails to deposit the amount of claim on demand.
26.3.4 In order to avoid litigation and further expenses connected with the same, it should be
ensured that all adjustments of money claimed from the contractor are made well within the period
of two years mentioned in the above condition when sufficient amount may be available with the
Government against which the claim could be adjusted.
26.4 Procedure to realise du~s frollitlteQgh£r~,~~~
26.4.1 According to condition 67 of IAFW-2249 which forms part of most of our contracts,
recovery of outstanding amount can be effected from such sources as the following :
(i) Any amount available under the contract in which overpayment has been made.
(ii) Amount which is expected to be due to the contractor in the same contract in the near
future;
182 PART-III: POST-CONTRACT STAGll
(iii) Security Bond deposited for the contract;

(iv) Security Bond amount available with the Government;
(v) Amount available with the Department against any other current or past contracts;
(vi) Amount due to the contractor in any other Government department provided a provision
similar to that in Condition 67 exists in the agreement entered into between that
Government department and the contractor.
26.4.2 If the GE finds that no money of the contractor (including security) is available in his
Division to meet/adjust the recovery; the following procedure will be followed:
(i) He will send a letter direct to all GEs in the Zone, intimating the recovery and requesting
them to withhold the amount to the extent of the recovery.
(ii) The GEs, on receipt of such a letter, will take priority action thereon, including verifying if
any security of the contractor is held and also consulting their AAOs, and intimate the
position to the concerned GE.
(iii) At the time of intimating other GEs about the amount of recovery; the concerned GE will
simultaneously enquire from all CsWE in the Zone about the security deposit, if any,
lodged by the Contractor with them and which may be available for effecting recovery from
the contractor.
(iv) If more than one GE/CWE intimate the amount available/withheld, the GE concerned
will, without delay, select one of the CsWE/GEs (preferably with whom the entire amount
is available) and ask him/them to transfer the amount to him. A copy of this
communication will be sent to AAOs!AOs concerned to arrange/effect transfer of the
amount and also to the PCDNCDA concerned. Simultaneously, the GE concerned must
inform all other GEs/CsWE (who also may have withheld some amount) that it is no
longer necessary for them to withhold any amount.
(v) If sufficient amount is not available with the GEs/CsWE in the Zone, the GE concerned will
report the matter to his Zonal CE.
Note :Action for the recovery of the amount stipulated in the above paras will be taken by the GE only, in respect of all
classes of contractors.
26.4.3 In respect of contractors of 'E' Class, the CWE concerned on receipt of information, vide
26.4.2 (iii) above will take action for realisation of recoveries as laid down in this letter. No further
reference to any formation in other Command need be made as it is unlikely that contractors of 'E'
Class in one command would also be enlisted in other commands.
26.4.4 In respect of contractors of 'SS' 'S' to 'D' Classes, the Zonal CE concerned on receipt of
information vide 26.4.2 (v) above, will send a letter to all Command CEs intimating the recovery
and request them to withhold the amount to the extent of the recovery. The Zonal CEs (in
commands) on receipt of such a letter will take priority action thereon, collect the information from
CsWE and GEs under them (who will also verify if any security of the contractor is held and consult
their AAOs/AOs) and supply same to the Zonal CE concerned with endorsement to the CsWE/GEs
with whom the amount is available. CEs/CsWE will not be asked to supply the information direct to
the Zonal CE concerned. The Command CEs will verify if any security of the contractor is held and
intimate about it to the Zonal CE concerned. The Zonal CE concerned will thereafter communicate
the information to the GE concerned who will take further action as given in para 26.4.2 (iv) above.
H13
26.4.5 Simultaneously on receipt of GE's letter, CE/CWE on whose list the contractor is borne,
will take suitable steps to collect particulars about the property of the contractor from Civil sources
so that action for realisation of Government dues may be taken in case no amount is found to be due
to the contractor.
26.4.6 If no amount is due to the contractor from any MES formation, the matter will be
referred to theE-in-C in respect of contractors of 'SS', 'S', 'N. & 'B' Classes, and also in respect of other
classes of contractors where the amount of recovery is substantial. The E-in-C will take suitable
steps for ascertaining if any amount is due to the contractor from other Central Government
departments like CPWD and Railways.
26.4. '7 All correspondence regarding realisation of recoveries from contractors will be dealt
with on Priority basis.
26.4.8 Letters to contractors intimating adjustment of overpaid amounts under condition 67
of General Conditions of Contracts (!AFW-2249) should be worded carefully. In all such cases, the
GE should not only quote reference to condition 67 but also intimate to the contractor the name of
the work and the contract number against which over-payment has occurred, and how it is intended
to adjust the Government claims, i.e. from payment due against running accounts or final bill of the
contract or any other bill of the contractor with the department or from any amount due to the
contractor from the Government. While recovering the amount from any other bill of the contractor
with the department or with Government department, a reference to the original letter of the GE
who initiated the recovery and the relevant condition of the contract on the basis of which it is
intended to recover the amount should be specifically stated in the letter addressed to the
contractor.
26.4.9 Whenever a letter is addressed simultaneously to various formations to withhold
payment of a certain amount to a contractor, a watch must necessarily be kept of the amounts being
withheld by various formations so that it does not exceed the total Government claim. As soon as
the Government claim is recovered by some formation(s), instruction should be issued within a
week to others not to withhold further amounts.
26.4.10 Cases may; however, arise where it may NOT be possible to adjust the Government
claim. Every endeavour should be made to get such cases settled in arbitration early. If delay is
noticed on the part of the other party; the arbitrator should be pressed to proceed with the case
ex-parte. If there is delay on the part of the arbitrator, all legitimate action should be taken with the
object of getting the matter expedited so that the arbitrator issues his award in the shortest possible
time.
26.4.11 Once an overpayment is established after receipt of arbitration award, action should
be taken for attachment of Contractor's assets, where necessary. To safeguard Government's interest
prior action in such cases should be taken to ascertain the assets of the contractor against which it is
intended to offset the decree and the court, in consultation with the District Government Counsel,
should be requested to issue interim injunction to prevent the Contractor from disposing off his
assets. This precaution is necessary because it has been experienced that by the time court cases are
finalised and orders are obtained to off-set the decreed amount against assets of the contractor, he
has in the meantime disposed off his assets and the whole process then becomes infructuous.
184 PART-III : POST-CONTRACT
26.4.12 There may be cases where recovery cannot be effected and the loss has to be
regularised. Loss statements must be progressed vigorously.
261
,_,-,-~-
(a) A demand notice (duly enclosing MRO) shall be served by the GE on the contractor asking
for making the payment or to agree for adjustment thereof from any other due or to
furnish FDR!BGB in lieu of amount due. A period of 02 weeks shall be given to the
contractor from the date of receipt of demand notice by him.
(b) In case contractor does not comply with any of the alternatives given in para (a) above
upto 30 days of date of demand notice, it will be presumed that a dispute has arisen and
Govt. as a claimant for realizing recovery will invoke arbitration and submit particulars to
Competent Authority for appointment of arbitrator, after serving notice on the contractor.
(c) Action to withhold the amount pending adjudication shall be taken only after actions as
per para (a) and (b) above have been taken by the GE.
SECTION
MEASURES TO REDUCE ARBITRATION CASES
Arbitration in our contracts is governed by Arbitration & Conciliation Act-1996 (ACA) which
extends to the whole of India except State of J&K where it shall be J & K Arbitration & Conciliation
Act 1997.
Note : The cases where notice for invoking arbitration was served by the contractor prior to 25th Jan 96, such cases shall
continue to be governed by The Arbitration Act-1940. However, in such cases also, both parties may agree to follow
ACA-1996.
27.2
Certain measures to reduce arbitration cases are given in Appendix 27.1
(185)
II
SECTION
PROCEDURE. FOR APPOINTMENT OF ARBITRATOR

Il'".JCLUDING GUIDELINES FOR APPOINTMENT OF ARBITRATOR
~8.1
In cases where the Contractor has signed the final bill w).thout protest or reservation and
\ has also received the payment without any protest, no of Arbitrator shall pe done
\ as the accord and satisfaction, as per Secfiori 63 of the Jnd:an Contract Act 1872 has been
fulfilled and the subsequent claims raised by the contractor are deemed to be waived and
extinguished in accordance with Condition 65 of IAFW-2249, General conditions of Contracts
1 and there are many court judgments to support the above action of the Deptt.
21;b
J In all other cases, the appointment of Arbitrator shall be done without any reference to the list
of claims, with a request to arbitrator to decide the jurisdiction and arbitrability of claims of
both the parties, which will be submitted before the Arbitrator by the respective parties in their
statement of claims. Accordingly; the operative para of the specimen appointment letter shall
be modified to read as under : -
"NOW THEREFORE, by virtue of the aforesaid and provisions contained in Condition 70 of
IAFW-2249, I hereby appoint you as Sole Arbitrator to adjudicate upon the disputes pertaining to
the above contract and request you to enter upon the reference and publish your findings and award
in respect of disputes between the parties. However as regards claims which are covered under the
final and binding powers of CWE or any other Officer mentioned in the contract and those which
have been raised by the contractor after signing the final bill with some specific claims, as also the
claims, for which there is specific prohibition in the contract, I request you to first decide on the
jurisdiction and arbitrability of those claims as per terms and conditions of the contract and Section
16 of Arbitration and Conciliation Act 1996 and only thereafter take up these for adjudication in
merit."
Note : The Condition 70 of IAFW-2249-General Conditions of Contracts excludes those claims from reference to arbitration
for which the decision of CWE or any other person is, by the contmct expressed to be final and binding. This provision
shall be suitahly amended in due course.
28.3
The Arbitration and Conciliation Act 1996 confers powers on Arbitrator to decide on his own
jurisdiction under section 16 thereof. All objections regarding jurisdiction and arbitrability of
the claims shall be raised before arbitrator U/S 16 of the ACA-1996. The proforma for
appointment of arbitrator required to be forwarded by Accepting officer to the appointing
authority shall be as per Appendix 28.1. The proforma shall be faxed to the
Appointing authority within seven days of receipt of notice from the Contractor.
28.4
Non-concurrence letter shall be forwarded to the appointing authority l)y Accepting Officers as
per Appendix 28.2 in those cases only which fall under the purview of 28.1 herein before.
(186)
1.:
)
i
i
\1:·
. ..
'
l
pART-III : POST-CONTRACT STAGE 1!17
28.5
~A The procedure to appoint an arbitrator is laid down in section 11 of ACA-1996. As per the
provisions of Section 11 of the Act, the appointment of arbitrator has to2 be made by the
appointing authority within 30 days. from the date of receipt of n\)tice invoking arbitration
failing which contractor has got right to file an application in the Court for appointment of
arbitrator. As such, it is in the interest of the department that concerned Officers/Staff dealing
with such important mattf'rs i;-;.tcract with one another by all means so as to secure
appointment of arbitrator within ::!0 days.
Important : Any case where contractor has moved to the court for appointment of arbitrator
after expiry of stipul?ted period of 30 days (from the date of notice), accepting officer(s) should
defend all such cases as per Supreme Court of India Judgement in SBP & Co. Vs. Patei Engineering
Ltd. and Am: 2005 (3) Arb LR 285 (SC) delivered on 26 Oct. 2005.
28.6 Guidelines for appointment of arbitrators by CE Zone.(apptdnting a:utbori-ty}ID. CsWE & p-Es
Contracts
Following Guidelines for appointment of officers as Arbitrators in respect of CsWE & GEs
contracts have been approved byE-in-C:
28.6.1 Officers of the rank of ACE/Col/SE posted in the Zone on appointments of Pr
Dir/ACE/Dir may be appointed Arbitrators meeting the following QR :
(i) Officer must have done GEs and/or CWE appointment.
(ii) Must have one year more to serve in that Zone.
(iii) One officer should not be given more than two cases.
28.6.2 Cases where contractual complications are involved, CE Zone should appoint Dir
(Contracts) of nearby Zone within the same Command.
28.6.3 CsWE may also be given one or two cases, and should be last priority.
28.6.4 CE Zones should keep up-dated panel and officers who are likely to move out on
po:·ting/promotion/retirement within next one year should not be appointed Arbitrators.
28.7 Other aspects to be borne in mind while dealing cases pertaining to appointment of
arbitrator ·~----- ---·· ·-·- - · - - -
.-~--· --·-----·-------~-
28.7.1 As per Condition 70 of IAFW-2249, a precondition to the appointment of arbitrator, is

that:
(a) There should be disputes between the parties to the contract, and
(b) The party who wishes to refer the disputes to arbitration should serve a written notice to
the other party of their intention before the authority mentioned in the contract may
appoint an Engineer Officer as the sole arbitrator for adjudication of disputes.
28.7 .2 Whenever the Department takes the initiative of referring claims against the Contractor
to arbitration, a copy of the request made by the Accepting Officer to the appointing authority for
appointment of an Arbitrator must, therefore, invariably be endorsed, under Registered ND post, to
the concerned Contractor, by way of notice to him_in terms of Condition 70 of IAFW-2249.
11!8 PART-III : POST-CONTRACT STAGE
28.7.3 Condition 70 of IAFW-2249 stipulates that unless both parties agree in writing,
reference to arbitration shall not take place until after completion of works or alleged completion of
works or termifi~ion or determination of the contract under condition nos. 55, 56 and 57 of
IAFW-2249.
It should be ensured before appointment of arbitrator during currency of the contract that both
the parties have agreed in writing for the appointment of arbitrator.
28.7 .4 It has been observed that some of the Chief Engineers address their letters giving
concurrence or otherwise to the reference to arbitration to Dte. of Contract Management (E-8),
Engineer-in-Chief's Branch. Since Engineer-in-Chief is the appointing authority as per terms of the
contracts, such letters should be addressed to Ef1giJ1ee~:il1:Chief (with copy endorsed to Contractor)
and not to Dte. of Contract Management (E-=8): ~Engineer-in-Chief's Branch. Similarly letter
forwarding the particulars for appointment of arbitrator should also be addressed to
Engineer-in-Chief but the copy of this letter is not to be endorsed to Contractor.
28.7 .5 The arbitrator appointed byE-in-C is required to acknowledge the receipt of the letter
of his appointment and forward a copy of his award when he publishes it. No other correspondence
need be endorsed to E-in-C and CE Zones (Where CE Zone is the appointing authority in respect of
CWE/GE Contracts)
28.7.6 While requesting theE-in-C for appointment of an arbitrator, the contractor is required
to notify CE Zone or Project. On receipt of contractor's letter requesting theE-in-C for appointment
of an arbitrator, CEs Zone or Project shall forward complete particulars for appointment of an
arbitrator immediately but in any case not later than seven days from the date of contractor's letter.
A period of seven days stipulated is the maximum period for forwarding of particulars for
appointment of an arbitrator. If any details are to be collected from lower formations, these should
be collected by CE Zone or Project on priority basis by evolving their own system to obtain these
particulars. In no case the particulars shall be delayed.
28.7. 7 In case the particulars are delayed beyond the stipulated period of seven days, the
personal explanation of the CE for information of the E-in-C will accompany the particulars for
appointment of an arbitrator. Avoidable delay will be viewed seriously.
28.7.8 Zonal or Project CEs may issue similar instructions in regard to CWE's and GE's
contracts where they have to appoint the arbitrator.
28.8 Guidelines for appointment of Arbitrator by E·in·G inc~·s Gon.tr~llt~d;~\ ~t';~~t~k~~~,~~i~if§fl
28.8.1 Four officers are required to be available at all time on the Standing Panel of
Arbitrators i.e.
(a) Brig - One
(b) CE- One
(c) CE (Contracts) -Two
The above officers shall be kept posted at all the times.
28.8.2 Since average time required for finalisation of an arbitration case is ranging from 06
months to one year, following guidelines have been approved by E-in-C for appointment of officers
as Arbitrators in respect of CEs contracts :
(a) Standing Panel of Arbitrators

(i) QR - Must have done as Zonal CE for Brig/CE.
(ii) Residual service - Minimum two years.
(iii) No. of cases to be Allotted -For officers having service upto two years - 30-40 cases.
For officers having service more than 3 years - upto S0-60 cases.
(iv) Replacement to officers on Standing Panel of Arbitrators should be identified three-four
months in advance, so that such officers start gettin~ appointment letters and they can
enter into reference. By the time these officers physically move to standing panel, they
would have received written submission from the parties in most of the cases and could
start conducting hearing in the cases. This step will ensure maximum output from
Arbitrators.
(v) Officer~should be selected for appointment of Standing Panel in consultation with Jt DG
(Contracts), with regard to suitability of officer for the job.
(vi) No fresh cases should be given to Arbitrators, during the last six months, before
retirement.
(b) Additional Panel of Arbitrators
(i) Under normal circumstances, no other officers than Standing Panel of Arbitrators should
be appointed as Arbitrator, to maintain professional approach and expertise. However, if
the cases are more than the capacity of Standing Panel of Arbitrators, then following
guidelines should be followed :
(aa) Officers of rank of Additional CEs Command, who have already done a tenure in
MES as Zonal CE, and having more than two years of residual service, may be
assigned up to S cases.
(ab) Officers serving as Jt DG (Contracts) in Command HQs, having more than two years
residual service may be assigned upto 10 cases.
(a c) Officers of the rank of DDGE/Jt DG posted in E-in-C's Branch who have already done
a tenure of CE Zone and having more than two years residual service, may be
assigned upto maximum of OS cases (in case of having service between 2 to 2]:
2
years) and 10 cases (in case of having service between 2]: years to 04 years)
2
(ad) Zonal CEs may be given two to three cases, but should be last priority.
(ae) Jt DG (TE) may also be assigned to OS to 10 cases, provided the officer is having two
years of residual service.
SECTION
PREPARATION AND DEFENCE OF ARBITRATION CASES
29.1 Exhaustive and elaborate instructions exist for defending the arbitration cases effectively by
timely filing the written submission/documents before Arbitral TribunaL However, it has been
observed that the instructions are not being followed by the Accepting Officers in letter and
spirit resulting into delays in conclusion of arbitration proceedings and eventual resignation
by Sole Arbitrator in large number of cases without publishing the Award thereby also causing
duplicity of efforts at all levels. Condition 70 of IAFW-2249, General Conditions of Contracts
stipulates a period of six months for making and publishing the Award. Therefore, it becomes
imperative that there is no delay on the part of Union of India in submitting the Statement of
Claims, Pleadings in Defence and Rejoinders thereto, if any to Sole Arbitrator.
29.2 It has also been observed that in important cases, the defence of Govt. case during arbitration
hearing is delegated to lower level officers in violation of instructions. This can result into
in-effective defence of the case and the issues, which could be forcefully emphasized by the
team headed by Chief Engineer himself, may not be brought home. In majority of cases,
where Govt. is the claimant, the arbitration proceedings have not been finalised for years
together, resulting into repetitive resignation by successive Arbitrators and appointment of
fresh Arbitrators thereto. Even there appears to be lack of dedicated efforts on the part of
officials of UOI dealing with such cases, to bring the cases to logical conclusion.
29.3 Sole Arbitrator is required to enter into reference within one month of receipt of
communication of his appointment as Sole Arbitrator. Any delay on the part of Sole Arbitrator
in entering into reference shall be brought to the notice of Appointing Authority.
29.4 The Statement of Case, Pleadings in Defence, Rejoinders thereto and any correspondence
addressed to Sole Arbitrator shall be signed by Accepting Officer only to meet the legal
requirement. Howeve1~ in respect of GE/AGE (I) contracts, the above documents shall be
vetted by CWE or CE Zone in case of GE (lndep). The Statement of Cases, Pleadings in
Defence & Rejoinders shall be submitted to Sole Arbitrator within the time frame given by
him. All required actions for preparation of arbitration cases shall be taken well in advance
and shall be telescoped to avoid any delay in submitting the documents to Sole Arbitrator. The
Accepting Officer in this regard shall suitably deal with any negligence.
29.5 In complicated cases, where it is necessary to collect vital data pertaining to transactions
during execution of work and the disputes relate to both the design and contractual aspects, it
may become necessary for the Accepting Officer to appoint a team of officers conversant with
all these aspects to jointly help in the preparation and also in the defence of the Government
case.
29.6 For contracts concluded by GEs, the statement of case should be vetted by C\1\'E.
29.7 CD!';s active cooperation should be maintained at all stages i.e. in drawing up the Defence
Statement and in advising the MES representative defending the case, particularly on
accounts aspects.
(190)
!j
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pART-n:I : POST-CONTRACT STAGE 191
29.8 In preparation of the defence of a case before the arbitrato,, ~ ~"<'rnment Defence
~ Statement/ Statement of Claim should include a claim for costs including est'"·- ' "nsts. The
"costs" mean the costs of reference and should include ali the expenditure invo!veo ._
entire case based on the TNDA payable to officers and staff who prepare the defence, appear
and conduct the proceedings and fees payable to legal counsels, if any.
29.9 In certain conditions of contracts, the GE, the CWE or the Accepting Officer has been
mentioned as the authority whose decision is final and binding or conclusive on a particular
issue e.g. GE for quality of materials and workmanship in terms of Condition 46 of
IAFW-2249, the CWE in respect of Star Rates in terms of Condition 62 of IAFW-2249, such
cases shall be well defended before the arbitrator stating that all such cases fall under
'Excepted matters" and are as such outside the jurisdiction of learned arbitrator. Section 16 of
ACA-1996 empowers the Arbitral Tribunal to decide/rule on its own jurisdiction.
29.10 Main causes of delay in settling case through arbitration are :
(a) Parties to dispute do not submit their statement of cases as claimant and respondent with
in the dates prescribed by the arbitrator in his notice.
(b) Frequent extensions on one pretext or the other are sought from the arbitrator for
submitting statement of cases to him. Even after the statement of cases have been
submitted to the arbitrator and a date has been fixed by him for the hearing, further
extensions are sought for postponement of the hearing on some pretext or the other.
(c) Futile arguments are given by the Department for not making available to the contractor
certain documents in their possession for Contractor's inspection. Documents such as site
order book, works diary; measurement books, DOs, cement consumption register, work
stage passing register, etc. have necessarily to be shown to the Contractor for making
notes, if he so desires.
29.llln cases where an important legal principle is involved and the amount in dispute is large
and where the contractor is known to engage a counsel of repute, Government would be well
advised to consider engaging a counsel in addition to the above Technical Officers. Competent
authority to sanction engagement of Government Counsel in conducting Government case
before an arbitrator is GOG,!N-C/AOC-IN,C/FOC-IN-C.
~9.12 Whenever the Government is the claimant, all cooperation need be afforded to the
contractor by making available copies of all necessary documents to him so that he could
submit his Statement & Pleadings to Sole Arbitrator expeditiously. However, if the contractor
still does not cooperate and keeps on asking for extension on one pretext or the other in spite
of ample opportunity afforded by Sole Arbitrator, the UOI must object to such requests and
Sole Arbitrator must be requested to proceed exparte in terms of Section 25 of Arbitration and
Conciliation Act 1996 so that the proceedings are finalised within stipulated period.
29.13 Wherever appointment of outside Arbitrator by Court has to be accepted with or without
recourse to further appeal, UOI shall take all necessary steps to effectively defend the case
before appointed Arbitrator, including engaging a legal counsel, in case opposite party is
represented by an advocate. Accepting Officer will inform E-in-C HQ immediately, whenever
outside Arbitrator is appointed by Court, with full details.
29.14 venue o!.ue~~a'i.

29.14.1 Condition 70 of IAFW-2249, General conditions of Contract regarding arbitration
provides that the venue of arbitration shall be such place or places as may be fixed by the arbitrator
in his sole discretion.
29.14.2 As per section 20 of ACA-1996, the parties are free to agree on the place of
arbitration. Failure to any agreement referred above, the place of arbitration shall be determined by
the Arbitral Tribunal having regard to the convenience of the case including the convenience of the
parties.
29.15 Arbitration Hearjng (.\l~fii!ll
29.15.1 In order to strengthen the defence of arbitration cases, it has been decided that
Accepting Officer himself will defend the arbitration cases before the arbitrators in respect of
contracts having value more than Rs. 250 lakhs. As such defence team will be constituted as under :
(a) In CEs Contracts : CE along with Dir (Contracts), CWE, DCWE (Contracts), GE (I)/GE,
AGE (Contracts)/JEs (QS&C) of concerned GE/GE(I)/AGE (I) office.
(b) In CWE Contracts : CWE along with DCWE (Contracts) and GE and AGE
(Contracts)/JEs (QS&C) of concerned GE/GE(I)/AGE (I) office.
(c) In GE/GE (I) Contracts : GE alongwith DCWE (Contracts) and AGE (Contracts)/JEs
(QS&C)of concerned GE/GE (I)/AGE (I) office.
29.15.2 In other cases and also where stakes involved are not high, defence of cases in CE's
Contracts may be delegated to CWE or Pr. Dir/ACE where there are no CWE in the hierarchy
alongwith Director (Contracts)/Jt Dir (Contracts)!Dy Dir (Contracts) of the zone and other officials
as decided by the Accepting Officer. In such cases CE Command/ADG (OF&DRDO) will be kept
informed of the reasons for CE not defending the arbitration case, himself.
29.16 The following points should be noted during defence of cases :
(a) If as a result of the observations made by the ADGTE's Directorate disputes arise and the
matter has to be referred to arbitration, the MES formation concerned should defend the case as if
the claims were based on their· own observations and no reference will be made to the ADGTE's
Directorate either in the statement of case or during the course of the hearing before the arbitrator.
(b) In order that the amount of the final bill when mentioned by an arbitrator in his award may
not prejudice Government's claim to recover overpayment under Clause 67 of IAFW-2249 on
account of subsequent examination etc. Government pleadings should always emphasise that the
arbitrator should state the amount of the final bill separately and further the arbitrators should also
be requested to state in their awards that this is "without prejudice to any subsequent technical
examination as envisaged in clause 67 of IAFW-2249."
(c) Towards the closing stages of the arbitration proceedings, total expenditure incurred by the
Government will be brought to the notice of the arbitrator, under intimation to the opposite party,
for taking the same into consideration by him before arriving at a final decision on costs. The
following items will be taken into consideration in making out a claim for costs :
(i) Travelling and Daily Allowances payable to officers and staff (including Defence Accounts
Department Officers and staff) who have to prepare the defence;
(ii) Travelling and Daily Allowances payable to Officers and staff (including Accounts
Department Officers and staff) who conduct the proceedings or appear as witness before
the arbitrator; and
I
(iii) Fees payable to Legal Counsel, if any.

(d) Statement of claims and pleadings in defence will be prepared by MES Officers.,_. -"vice
or guidance required on legal points should be sought for by the MES from :
(i) Ministry of Law, Justice and Company Affairs, Advice 'N. section' 4th Floor, Shastri Bhawan,
Dr. Rajendra Prasad Road, New Delhi-110001.
(ii) Min of Law Branch Secretariat at Calcutta-Cases falling within the Jurisdiction of
Calcutta, Gauhati, Patna, Orissa and Sikkim High Courts.
(iii) Min of Law Branch Secretariat at Bombay-Cases falling within the jurisdiction of Bombay
High Court (Including its benches at Goa and Nagpur) and Gujrat High Court.
(iv) Min of Law Branch Secretariat at Madras-Cases falling within the Jurisdiction of Madras,
Andhra Pradesh and Kerala High Courts.
(v) Min of Law Branch Secretariat at Bangalore- Cases falling within the Jurisdiction of
Kamataka High Court.
(e) Engagement of a Counsel or Lawyer to help the MES in defending/arguing its case in an
arbitration hearing, should be resorted to only when important legal principles are involved and the
amount in dispute is large. In such cases the matter should be referred to the Min of Law or its
Branch Sectt. who will nominate a suitable Counsel or Lawyer and fees paid to him as authorised by
the Ministty of Law/Branch Sectt.
(f) Since as per Arbitration and Conciliation Act-1996, very limited grounds exist to file
objections in the Court U/S 34 of the Act, the officers defending the cases should be fully conversant
with the provisions of various Sections of ACA-1996 and should file/raise objections before
arbitrator under relevant sections viz. Section 16, 13 etc. at appropriate stages so that objections
against the award can be filed in the court for setting aside the award U/S 34 of Arbitration and
Conciliation Act-1996.
(g) (i) When large sums of money become recoverable from contractors, the course open to the
Departtnent is to establish the claim of the Government in arbitration and to get the award made a
rule of the Court. It is seen that in such cases, the contractors sometimes dispose off their properties
before the conclusion of these proceedings thereby preventing the Government from realising its
dues.
(ii) The question of safeguarding the interest of the Government in such cases was referred to
Ministry of Law Justice & Company Affairs for their advice. The advice given by the Ministry is as
under:
''After the contractor has failed to perform the contract, the same may be cancelled and earnest
money forfeited. Thereafter, as soon as the arbitrator is appointed to adjudicate claims against the
contractor, an application may be made to the court under second schedule to the Arbitration Act
for interim injunction restraining the contractor from dealing with or disposing of his properties
without securing the claims made against him, or for appointtnent of Receiver over his properties,
where there are facts that the contractor is not solvent and he attempts to mortgage or encumber or
sell his properties or assets.
In between the cancellation of the contract and obtaining injunction/appointtnent of Receiver,
if any action is taken by the contractor to avoid realisation of the Government dues, which may be
awarded, the only practical course is to award contracts only to financially sound contractors.
If the interim transfer by the contractor can be proved fraudulent or voluntary without .·
consideration, steps may be taken to set aside such transfers in appropriate cases."
SECTION
ACTIONS TO BE TAKEN AFTER RECEIPT OF AWARD, MEMORANDUM

OF AWARD, STAMP DUTY ON AWARD, MISCELLANEOUS
ISSUES PERTAINING TO ARBITRATION CASES ETC.
30.1EJ{~I!1J!l_a.tion o!_l\wa_r_ds ;1Qo_ITect!~:O!l!ld Int~i'P!~t3lMil~!~!~arlf;~~l[idiiilai'!~~~ft~~';'

30.1.1, Section 33 of ACA-1996 states that within 30 days from the receipt of the award, a
party with notice to the other party may request arbitral tribunal to correct any computation errors,
any clerical or typographical error or any other error of a similar nature occurring i.n the award.
Consequent to this, the Arbitral Tribunal may correct any errar in tl":e Award of the type referred
above. For further details, refer section 33 of Arbitration and Concili<~tion Act-1996.
·~~·~!J!1Pl_el1lentatio_l!__of A\fl\~~s~FiUng_(lbJ~.e~o!l~ ~n. :l\!la.rlisf!fte!Q~taini~ tl:~!ict~_o_f_~el;,
30.2.1 The procedure for implementation of awards/filing objection against awards shall be as
under:
(a) In respect of awards, where the total amount awarded in favour of the contractor
(excluding the final bill amount, Security Deposit, interest etc due to the contractor) does
not exceed Rs. 1,00,000/-, the Accepting Officer (CWE in respect of GEs contracts), may
himself take a decision as regards implementation/contesting of the award in consultation
1Nith concerned Govt. Counse]/CGSC
(b) In respect of award, where the total amount av;arded in tiwour of the contractor
(excluding the final bill amount, Security Deposit, interest etc due to the contractor} is in
excess of Rs. 1,00,000/- but does not exceed Rs. 5,00,000/-, the Aec.:epting Officer (CWE
in reenect of GE contracts) wiil seek the advice of IA (Def)/Branch S<':ctt, Min of Law as
applicable. HowevPJ; cases where advice of IA (Def) is required, CE Zone shall submit the
case toE-in-C's Br. alongwith his recommendations. CE Zone/ Project shall take a decision
regarding implementatio;•/ contesting of the award based on the advice of IA (Def)/
Branch Sectt., Min of Law.
(c) In respect of award, where the total amount awarded in favour of the contractor
(excluding the final bill amount, Security Deposit, interest etc due to the contractor) is in
excess of Rs. 5.00,000/- the Accepting Officer (C1NE in respect of GE contracts) will seek
the ~dvice of IA (Def)/Branch Sectt, Min of Law as appUc<~ble. However, cases where
advice of LA (Def) is required, CE Zone shall submit the case to E-in-C's Br. alongwith his
recommendations. DGVV shaH ;ake a decision regarding irnplementatiun/contesting of the
aw;-:.rd based on advice of LA (Dei)/Branch Sectt, Min of Law.
(d) While referring the case of (Def)/Branch :-=:ectt~ T\.1in. relevant documents
• •
pertcnn1ng ·f
to LH~ ·f· d _tOP'/ orr:
.:=ts certLl.e ~.., ~• •
conaJtl:Jns o' .I
Contra_ct) state;nent and defence suh:rn:ltted ro arbit-rator by both the

parties, copy of the arbitration ~-vvard etc should fnn·varded to thern. The salient points
I (Hi4)
I
!I~'
I
I•
f
as well as any matter of special significance or interest, which has a direct bearing on the
arbitration, should be highlighted in the forwarding letter and the relevant paras in
statement of claims/defence should be margin lined for easy reference. If any Counsel had
been engaged to represent the Union of India during the arbitration hearing, his
comments should also be obtained (without payment of any fees) and the same also
furnished to IA(Def)/Branch Sectt. The lA (Def)/Branch Sectt should be requested to
offer the advice/ opinion on the awards. They should also be requested to indicate the
specific grounds U/S 34 of Arbitration and Conciliation Act, 1996 on which the award
should be contested, if their advice is to contest the award.
30.2.2 Action to contest or implement the award should be taken as per advice given by the
Ministry of Law/Branch Sectt. If in case the Accepting Officer (or CWE in case of contract accepted
by GE) feels that the facts of the case are not fully appreciated by Ministry of Law/Branch Sectt. or
fresh facts/consideration have come to light and hence reconsideration of advice rendered by
Ministry of Law/Branch Sectt. is required. In such cases, the following actions should be taken :
(i) lA (Def)/Br Sectt, Min. of Law should be re-approached with new facts for
reconsideration of advice and further action should be taken as per the final advice.
(ii) The case should be sent to E-in-C's Branch through CE Zone, by hand through an officer
well conversant with case, where advice of lA (Def) is required.
30.2.3. Application for setting aside award U/S 34 of ACA-1996 has to be filed within three
months from the date on which the party making that application had received the award or if a
request has been made under Section 33, from the date on which that request had been disposed of
by the Arbitral Tribunal.
In view of above it is necessary that the advice of lA (Def)/Br Sectt, Min of Law should be
obtained expeditiously so that wherever required the objections to the award can be filed within
limitation period and Govt. interest is safeguarded. However delayed cases after receipt of award or
after filing of the objections in the court results into severe criticism from lA (Def) and Min of
Defence and lA (Def) has declined to render his legal advice in such cases stating that since the
objections to the award have already been filed without their advice, as such seeking advice at this
stage will serve no purpose. In few cases, the objections to the award were filed without advice of
LA (Def) and subsequently lA (Def) advised to implement the award rendering the entire exercise
of filing objections futile.
30.2.4. In order to avoid the embarrassing situations as mentioned above, it will be ensured
that the complete case for obtaining advice of lA (Def) is forwarded within one month from the
date of receipt of the award so that the advice of lA (Def)/Branch Sectt, Min of Law is available at
the time of filing of objections to the award within the limitation period of three months laid down
in Section 34(3) of Arbitration and Conciliation Act, 1996. In case, the documents for obtaining
legal advice are not received in E-in-C HQ within one month from the date of receipt of the award, I
the Director (contracts) shall bring the documents personally to E-in-C HQ alongwith explanations .I
for delay under the signature of Chief Engineer Zone.
30.2.5. In cases where legal advice of Br Sectt, Min. of Law is to be obtained, the same shall be
obtained within 30 days from the date of receipt of award. If the legal advice is to contest the
I
award, action shall be taken accordingly. However, where legal advice is to implement the award,
196 PART-III : POST-CONTRACT STAGJl
the decision shall be taken by the Accepting Officer, (CWE in respect of GE contracts) or CE
Zones/Project as the case may be, or the case shall be forwarded to E-in-C's Br within 45 days of
publication of award for decision of the DGW in accordance with sub section 30.2.1 hereinbefore as
the case may be.
30.2.6. Whether to contest or accept an award depends upon the circumstances and facts of
each case. No exhaustive catalogue and strait jacket formula can be formulated laying down some
rigid rules/ grounds to challenge or implement the award. However, some of the grounds to
challenge the award are listed below for guidance :
(a) All grounds provisioned in Section 34 of Arbitration and Conciliation Act, 1996. In case of
Arbitration Act, 1940, all grounds provided in Section 30.
(b) Award in violation of contract conditions
(c) Award against the law
(d) Awards disproportionate to the amount of contract.
(e) Awards where huge public money is involved.
(f) Awards where adequate opportunity has not been afforded to the Dept. to present and
defend the case.
(g) Duplicacy of claim awarded.
(h) Award showing great element of bias against the Dept. such as disallowing or reducing
Government claims on untenable grounds.
G) Arbitration award allowing past, pendentelite interest on claims of damages.
(k) Time barred amendments to award or amendment amending substa!lCe of award.
30.2.6.1. Grounds such as arbitrator allowing contractor's claims in full, arbitrator allowing
interest on claims, claims allowed against pleadings of Dept. and the like, are no valid grounds to
challenge the award. Unless thorough analysis and scrutiny of award is carried out, Dept. will not be
able to take a r~o:~sonable decision on the award and resultantly may land up in long drawn litigation
or paying those awards, where there are reasonable chances of success of getting the award set
aside. Supreme Court in "Oil and Natural Gas Corporation Ltd. vs. Saw Pipes Ltd; 2003 2() Arb LR
5 (SC)" while dealing with ambit and scope of court's jurisdiction where award is challenged under
Section-34 of Arbitration and Conciliation Act, 1996 has called out grounds in para 74 of Report on
which award can be set aside. The para 74 is reproduced in sub-section 32.11 of this Manual under
heading "Further held, N'.
30.2.6.2. The recommendations of CE Zone, which shall be given invariably in all cases shall
include the grounds on which award is proposed to be challenged. It is needless to emphasize that
the legal opinion of local Government Counsel shall accompany the case, as LA(Def) does not
entertain the cases devoid of legal opinion of Government counsel.
30.2.7. The procedure laid down herein below shall be strictly followed on the receipt of
award.
30.2.7.1. No decision of LA(Def)/MOL Branch Sectt. is required to implement/contest the
award where the awarded amount in favour of contractor does not exceed Rs. 1,00,000/- (one
lakh). CE in case of his contracts and CWE in case of his contracts and GE's contracts in consultation
'
I
I
Government Counsel are competent to implement/ contest the award. Where this limit
exceeds, the advice of LA (Def)/ MOL Branch Sectt. is required to be obtained.
30.2.7.2 Awards of CE's Contracts where decision of MOL Br Sectt/LA (Def) is
warranted:
(a) On receipt of award by the CWE's/GE(I) office, summary of award showing claims
preferred and awarded/rejected and comments on each claim shall be prepared by
DCWE/ ACWE(C)
(b) Award shall be examined jointly by CWE and DCWE/ ACWE (Contracts) with reference to
guidelines mentioned herein before and conclusion arrived whether to contest or
implement the award carving out the broad grounds for doing so clearly bringing out
salient points of award.
(c) The conclusion arrived alongwith the grounds for doing so shall be reflected as
recommendation of CWE in Statement of Case, as per Appendix 30.1 attached
hereinafter and forwarded to the CE Zone alongwith other documents as required for
seeking the advice of LA (Def)/MOL Br Sectt.
(d) If the Government counsel has been engaged to present/ defend the case in arbitration
hearing, his advice will be mandatory to be obtained in writing by CWE's office by
personal liaison and discussion by DCWE/ACWE(C). Before discussion with Government
Advocate, discussion may also be held with Director (C) by DCvVE/ACWE(C) so as to
frame the issues briefly to facilitate discussion with. the Government Advocate. Where
Government Counsel has not been engaged to present/defend the case by Union of India,
obtaining his advice is optionaL Where some question of law is involved or award is based
on legal proposition, legal advice may invariably be obtained and in other cases may be
dispensed with.
(e) The advice of Government Counsel when obtained shall form part of documents sent by
CWE's office to CE Zone. However, the conclusion arrived by CWE's office whether to
contest the award or implement it, shall not solely be based on the advice given by
Government CounseL In case, CWE's conclusion is different than the advice given by the
Government Advocate, the reasons to differ with shall be clearly brought out in the
statement of case.
(g) The above exercise shall be completed by CWE's office as early as possible to ensure that
complete case reaches CE Zone within 15 days of receipt of award.
(h) CWE's office shall not wait for the case to be submitted by GE's office. Any documents or
assistance required from GE will be obtained on phone or by personal liaison.
G) On receipt of case from CWE's office, the award will be analyzed by Director( C) in CE's
Office. Each and every aspect of award, CWE's recommendation and opinion of
Government Counsel shall be scrutinized and analyzed thoroughly by him. Opinion will be
formed by Director(C) whether it is prudent to implement the award or contest it and
grounds to do so will be culled out. Since Director(C) is expected to be conversant, much
rnore than any other officers associated with the case, he is in a position to form better
opinion and his opinion may not necessarily be solely based on recommendation of CWE
and/or opinion of Government Counsel.
(k) CE Zone shall form his opinion in consultation with his Director (Contracts) and reflect
the same in Statement of Case alongwith the grounds on which it is proposed to
implement or contest the award.
(!) Complete documents shall then be forwarded toE-in-C's Branch for obtaining the advice
of lA (Def) or to MOL Br Sectt. as the case may be, briefly mentioning the following for
quick and easy comprehension of the case :
(i) Gist of grounds to contest/or implement the award.
(ii) List of documents being forwarded. Each document be properly marked and flagged.
(iii) The date of expiry of1imitation.
(rn) The above exercise is to be completed by CE Zone expeditiously to ensure that the
complete case reaches E-in-C Branch/MOL Br Sectt. within one month of receipt of award.
If the case is delayed beyond one month, Director( C) of the Zone shall personally bring
the case to E-in-C Branch or MOL Br Sectt. as the case may be.
(n) The period of limitation as per Arbitration and Conciliation Act, 1996 is only 3 months
extendable by 30 days on sufficient reasons shown to the satisfaction of Court and fully at
discretion of court. It would be pertinent on the part of Accepting Officer to ensure filing
of objections to award in consultation with Government Counsel within original limitation
period of 3 months pending advice of lA (Def)/MOL Br Sectt. Please note that limitation
period of 3 months and extension of 30 days if court is satisfied on sufficiency of reason is
only available and nothing more than this prescribed period is available under the law. In
case objections are not filed within this limitation period, the same would be time barred,
not extendable under any circumstance.
30.2.7.3. In case of CWE's and GE's Contracts where opinion of lA (Def)/MOL Br Sectt. is
warranted:
(a) On receipt of award by GE, Summary of award (showing the claims preferred and
awarded) and comments on each claim shall be prepared by AE (QS & C)/JE (QS & C)
posted in GE's office.
(b) Award will be examined jointly by GE & AE (QS & C)/JE (QS & C) with reference to
guidelines mentioned herein before and conclusion arrived whether to contest or
implement the award culling out the broad grounds for doing so.
(c) The conclusion arrived alongwith grounds for doing. so shall be reflected as
recommendation of GE in Statement of Case, as per Appendix 30.1 attached herein after
forwarded to CWE's office alongwith other documents as required for seeking advice of LA
(Def)/MOL Br Sectt.
(d) The above exercise is to be completed by GE's office as early as possible to ensure that the
complete case reaches CWE's office within 10 working days of receipt of award. If the
Government Counsel has been engaged to present/defend the Government case in
arbitration hearing, his advice will be mandatory to be obtained in writing by CWE's office
by personal liaison. Matter be discussed with Government Counsel by DCWE/ACWE(C) so
as to frame the issues briefly to facilitate Government Counsel to apply his mind and give
his fair opinion. Where Government Counsel has not been engaged, his opinion may be
optional. Where some question of law is involved or award is based on some legal
preposition, advice shall be invariably obtained and in other cases rnay be dispensed with.
(e) The advice of Government Counsel when obtained shall form part of documents to be sent
to obtain the advice of LA (Def)/MOL Br Sectt.
(f) On recei!)t oi •:ase from GE's office, the award will be analyzed by DCWE(C)/ACWE(C) of
CWE's office. E.Kh and every aspect of award, GE's recommendation and opinion of
Govemme11~ Counsel shall be scrutinized and analyzed thoroughly by him. Opinion will be
formed by DC'.Y~(C)/ACWE(C) whether is is prudent to implement the award or contest it
and grounds to do so will be culled out" Since DCWE(C)/ACWE(C) it expected to be well
conversant with the case as compared to other officers associated with the case, he is in a
position to form better opinion and his opinion may not necessarily be solely based en
GE's recommendations and/or opinion of Government Counsel.
(g) CWE shall form his opinion in consultation with his DCWE/ACWE (Contracts) and reflect
the same in Statement of Case alongwith grounds on which it is proposed to implement or
contest me awarcL
(h) The complete documents shall then be forwarded to CE Zone under the forwarding letter
signed by DCWE(C)/ AGWE(C) briefly mentioning the following for quick and easy
comprehension of the case :
(ii) List of documents being forwarded. Each document be properly marked and flagged
(iii) The date of expiry of limitation"
G) The above exercise is to be completed by CWE's office expeditiously to ensure that the
complete case reaches CE's office within three weeks of recelpt of award.
(k) On receipt of case from CWKs office, Dir in CE's office shall examine the case" If some
deficiency is noticed by hnn". the same shall be rectified by personal discussion with
CWE/GK Recommendation of CE in GE's and CWE's contracts is not necessary. The
complete case shall then be forwarded to fL-in-C's Branch/MOL Br Sectt by Director
(Contracts) briefly mentioning the following for quick and easy comprehension of the
case:
(ii) list of documents beh<g forwarded. Each document be properly marked and flagged.
(iii) The date of expiry of limitation.
(!) The above exercise will be completed in CE's office expeditiously to ensure that case
reaches E-in-C Branch/ MOL Br Sectt vvithin four weeks of receipt of award. If the case is
delayed beyond four weeks, DCWE(C)/AGWE(C) shail bring case personally to E-in-C
Branch or MOL Br Sectt. as the case may be.
(m) As regards limitation for filing the objection, please refer para 30.2.7"2 (n) above.
30.2. 7 .4. Exercise after dispatch of case from CE Zone's office :
(a) After dispatch of case from CE Zone, Director(C) of Zone will contact on phone
Director( C) of E-in-C Branch and apprise him of the case. He will remain in constant touch
regularly on phone till receipt of LA (Def) advice.
200 PART-ID : POST-CONTRACT STAG!!
(b) In case where the advice of MOL Br Sectt. is sought, Director(C) in case of CE's contracts
and DCWE (C)/ ACWE(C)/GE as the case may be in GE's and CWE's contract; will remain
in constant touch on telephone with the Law Officer concerned of MOL Br Sectt. till the
receipt of advice.
(c) It shall be the responsibility of Director(C) of the Zone in case of CE's contracts and
DCWE(C)/ACWE(C) of CWE's office in case of CWE/GE's contracts to ensure that cases of
LA (Det)/MOL Br Sectt. are progressed expeditiously. Any hold up anywhere shall be
brought to the notice of CE/CWE as the case may be in writing and will take action as
directed by CE/CWE to obtain the advice.
30.2. 7 .5. On receipt of case in E-in-C's Office
(a) The case shall be analysed with reference to award, CE's/CWE's recommendations,
opinion of Government Counsel, if any. Case will then be sent to LA (Det) through MoD as
PC (Part Case) duly recommended to implement or contest the award.
(b) If any deficiency is noticed in the case, the same shall be communicated through
FAX/Speed PosVtelecon. CE/CWE shall ensure that deficiency is rectified within three
days of receipt of communication.
(c) Case in E-in-C's Br shall normally be processed within 10 days of receipt of case from the
Zone after rectifying the deficiency, if any.
30.2.7.6 Documents to be forwarded:
Following documents are required to be forwarded :
(a) Statement of Case alongwith Summary of awards and comments on claims awarded.
(b) Brief history of case.
(c) Opinion of Government Counsel if required as per para 30.2.7.2(d) and 30.2.7.3(d)
above.
(d) Copy of Statement of claims of both the parties.
(e) Copy of pleadings in defence of both the parties.
(t) Rejoinder, if any; submitted by both the parties.
(g) CA folder, relevant provisions duly flagged.
30.2. 7. 7. After receipt of advice from LA (Det)/MOL Br Sectt :
(a) The advice would either be to implement the award or to contest. In case the advice is to
implement the award, the following are competent authority to take the final decision in
terms of policy in vogue :
(i) Awards exceeding Rs. 5.00 lakhs.
DGW: in case of all awards exceeding Rs. 5.00 lakhs \
(ii) Awards not exceeding Rs. 5.00 lakhs \

CE : in case of CEs contracts.
CWE : in case of CWE and GE's contracts.
I
Note : The awarded amount connotes the amount excluding the final bill amount, security deposit, interest etc. due to the
contractor.
I
PART-Ill : POST-CONTRACT STAGE 201
(b) Where decision of DGW is required and where advice of LA (Def) is given, the decision to
implement the award shall be conveyed by K·in-C's Branch simultaneously, alongwith the
advice of LA (Def). Where the advice of MOL Br Sectt. is obtained, CE Zone shall forward
the case for the decision of DGW, where applicable whether to implement the award or
not.· ~~elltu~qutr~9.§hi!11.~!?~..~~.. 2.:il!~s,:tb~J!t~<i.t<L~btaip_2,dv(ce. QL~_Q2~Q
accompanied by the advice of MOL Br Sectt. In case CE strongly feels that award should be
implemented/ contested against the advice of MOL Br Sectt, the case should be forwarded
toE-in-C Branch alongwith all such grounds to take up the case with LA (Def), but such
cases should really be meritorious and special. In no other cases the advice of LA (Def) is
required when the advice has been rendered by MOL Br Sectt. except where MOL Br Sectt.
has advised to file the SLP in the Supreme Court of India. Where it is advised to file the
SLP in Supreme Court of India, the case be sent promptly as processing the case for SLP
takes considerable time.
(c) Where decision of CE/CWE is required after advice of LA (Def), the CE/CWE should take
decision immediately on receipt of LA (Def) ·advice from E-in-C's Branch. Where the advice
of MOL Br Sectt. is obtained, CE/CWE as the case may be within their power shall take
decision to implement the award or contest it. The matter is not required to be referred to
E-in-C's Branch to obtain advice of LA (Def) except where the advice is to file the SLP.
(d) Once the decision is taken to implement the award/or to contest it, the memorandum of
award in given format in this Manual shall be published by the Accepting Officer.
(e) Case of charged expenditure shall be initiated through ES channel within one week of
receipt of decision to implement the award. Communication of legal advice/decision shall
be made through FAX and on phone so that expeditious action could be taken by GE to
initiate the charged expenditure case.
30.2.7.8. Subsequent to Trial Court Order:
30.2. 7 .8.1. Advice of LA (Def)/MOL Br Sectt. is required subsequently also when the award is
contested in the court whether court pronounces the order in favour of award or against it. It be
noted that the advice is mandatory to be obtained at each stage. In case of appeaVrevision/SLP, the
limitation period is very short and prompt action needs to be taken at all levels. Pending advice,
appeaVrevision be filed in consultation with Government Counsel to take care of the limitation. In
case LA (Def)/MOL Br Sectt. advises to implement the court order and decision is taken to
implement, appeaVrevision may be withdrawn with the leave of court. In case, it is advised to
contest, the appeal be continued, with full vigour.
30.2.7.8.2. The trial court order needs to be properly examined by Dept. Though advice of
Government CounseVMOL Br Sectt. would be mainly helpful but again the decision to file the
appeal may not be taken in a routine mechanical manner. It may be appreciated that award gets
scrutinized at Trial Court stage to a great extent and unless there exist substantial law points which I
have not been appreciated by the Trial Court, chances of success in appeal are remote. Cases going .
to Supreme Court to file SLP should be limited to very deserving one as by that time award gets 1
filtered twice initially at Trial Court stage and again at the stage of High Court. I
30.2.7.8.3. After pronouncement of judgement by High Court the advice of LA (Def) is I
necessary whether to file the SLP in Supreme Court or not. In case LA (Def) advises to file the SLP,
the file is routed through Ministry of Law to Central Agency Section who organizes further activities I
202 PART-III: POST-CONTRACT STAGE
----------------------~--------------------
pertaining to filing of SLP. This process takes considerable time period and limitation period is only
90 days. It is, therefore, expedient to forward the case within 3 weeks of pronouncement of
judgement to E~in-C Branch.
30.2.7.8.4. Following documents are required to be forwarded alongwith the case:
(a) Copy of Judgement
(b) Advice of Government Counsel/MOL Br Sectt.
(c) Copy of reply to petition/ appeal filed by both parties
(d) Copy of award
(e) Copy of earlier advice rendered by LA (Det)/MOL Br Sectt
(f) Statement of Case alongwith summary of award and comments on claims upheld or set
aside by the court with recommendation of CE/CWE as the case may be.
30.2.7.9. Where there is no CWE and GE is functioning as GE independent i.e. GE (I), all
duties and responsibilities entrusted to CWE and his DCVvE(C)/ACWE(C) shall be performed by
GE(I) .and his AGE(C) respectively.
30.2.7.10. In every correspondence, the file No. of E-in-C Branch be quoted to locate the
record quickly.
30.2.8. In case advice of LA (Det) is not received within two months after publication of
award despite submission of all documents to LA (Det) for advice through E-in-C's Br, an officer
conversant with the case shall be detailed by Zonal CE to meet LA (Def) through E-in-C's Br to
obtain further advice/direction in the matter. Any lapse on this account shall be viewed seriously.
However, it shall be ensured that pending receipt of advice of LA (Def) on arbitration award,
objections against the award shall be filed in the court in the last fortnight before expiry of three
months period (stipulated in section 34 of the Act) in consultation and based upon advice rendered
by Govt. Counsel/Branch Sectt.
30.2.9. It was observed in the past that one particular GE has forwarded the case for legal
advice in CE contract directly to Min of Law, Justice & Company Affairs which was not appreciated
by Law Ministry and Min of Def. Such practices shall cease forthwith and no direct correspondence
whatsoever shall be resorted to by GEs/CWE with MOD/Min of Law or E-in~C HQ. All the cases shall
be routed through proper channel. However, in respect of urgent cases, which should be very rare,
advance copy may be forwarded to E-in~C HQ bringing out the specific purpose for the same.
30.2.10. It has furt.her been noticed that few Accepting Officers send reminders to E~in~C HQ
for the present position of LA (Def) cases which is improper. It need to be understood that the entire
case file is sent by E~in-C HQ to MOD for advice of LA (Def) and there is no system of sending
reminders to MOD. Moryover a special report is already introduced for this purpose and details
should be forwarded to E-in-C HQ by CE Zones/Projects in respect of pending LA (Det) cases. As
such there should be no requirement of separate reminder to E-in~C HQ. However, in urgent cases, '\
involving execution of Court decree etc., an Officer fully conversant with the case should be detailed
to E~in-C HQ to liaise with MOD and LA (Det).
30.2.11. After taking decision to implement the award by the competent authority, the GE
shall take prompt action for payment of awarded amount in favour of contractor/realization of
awarded amount in favour of Govt. The cases for allotment of Charged Expenditure shall be
progressed through E-5 channel immediately to avoid accumulation of interests.
PART-lll:POST-CONTRACTSTAG_E______________________________________________
30.2.12. Where the award has been published under the Arbitration Act 1940, the case for legal
advice shall be sent to E-in-C HQ by hand within two weeks from the date of receipt of the award.
30.3.1 The form of Memorandum of Award is given at Appendix 30.2. In case of contracts
concluded by GE/AGE (Indep), the draft memorandum will be sent by them to the CWE to enable
him to take a decision with regard to implementation or otherwise of the award. The CWE will then
distribute final copies of the memorandum to all concerned. It is however, important that GE/AGE
(lndep) sends this draft memorandum as early as possible and not later than four to five days from
receipt of the award. A specimen letter to be addressed by GE/AGE (Indep) to CWE and copy to the
PCDNCDA is at Appendix 30.3. The CWE will similarly take decision on awards in respect of
contracts concluded by him. In case of contract concluded by CEs the CWE will forward his
recommendations to the CE for his decision and similarly send a copy of the draft memorandum. A
copy of the award should be simultaneously sent to the PCDNCDA requesting him to forward his
comments to the CE within a week.
30.3.2 PCDNCDA's active cooperation should be maintained at all stages, i.e. in drawing up
the Defence Statement and in advising the MES Representative defending the case etc. It may be
appreciated that the PCDNCDA not being a party to the dispute, is in a position to take an overall
view of the disputes on the contract and enter an item or two of useful advice in framing the
Department's case of the dispute. The act~Ql~CDf~QlA/CPAissolely;intheinterest of protectin&
th~ fi~anciaL~E_~ov~~~e:r:~J'CDNCD& advice shall also be sought with regard to
implementation or otherwise of the award in addition to obtaining legal opinion from Ministry of
Law.
30.3.3. In view of above, it is emphasised that PCDNCDA's active cooperation shall be
maintained at all times i.e. pre-award stages of drawing up Government statement of case/pleading
in defence, rejoinder statement of case/pleadings in defence and also post award stages. Copies of
all these documents including legal opinion obtained, if any shall be supplied to the PCDNCDA.
Also the final bill of the contract shall invariably be got audited by PCDNCDA preferably before the
arbitration is resorted to by the department.
~0.4 stamp Duty onA\lVa~:j{
30.4.1 Relevant paras on the subject in the Arbitration Manual should be referred.
30.4.2 Awards not stamped or understamped according to the scale applicable to the State in
which the award is published (signed) are subject to levy of penalty in addition to the stamp duty.
Similarly awards presented for filing in a court, if not stamped or understamped according to scale
applicable to the Stat<; in which the court is situated, are liable to penalty in addition to the stamp
duty. As the stamp duty on an instrument is levied by the State in which the instrument is executed,
the stamp paper should be purchased in the State in which the arbitrator executes (signs) his award.
If on the request of any of the parties the award is to be filed in a different State from the State in
which it was executed, the stamp duty applicable in that State (where award is to be filed) should
be ascertained and if any increased duty is payable, the difference should be made good in the form
of non-judicial stamp paper of the required value purchased from that State and it should be added
to the award before presenting it for filing in the court.
204 PART-Ill: POST-CONTRACT STAGE
30.4.3 If this action is taken before filing the award, no penalty would be levied; but if such
action is not taken before filing the award, in addition to the difference in the stamp duty, penalty
may also have to be paid by the arbitrator as directed by the court.
30.4.4 An arbitrator should indicate on the duplicate and other copies of the award, which he
sends to both the parties, at the right hand top comer, the value of the stamp paper on which the
original award has been published (typed).
30.5 Regularisation of excess paym,ent$~~ut~(,,~}
30.5.1. In regard to the question as to whether or not the excess payment arising out of
arbitrator's award, should be viewed as infructuous expenditure and regularised under orders of the
competent financial authority, it has been decided that normally the arbitrator's award should be
taken as the correct payment due under the contract and the question of any regularisation should
not arise, except where the excess payment ordered under the awards arose out of irregular or
faulty conclusion or operation of the contract. Cases of payment arising out of arbitration awards
may accordingly be examined and regularisation watched, wherever necessary, depending on the
merits of each case.
30.6 Dis --~--
--~P. .. .. . . Itatfil"iii;''IU~
osal olawa.tds .· .·.... <;q.•Q\ ..•..•....
30.6.1. Officers acting as arbitrators should normally hold on to the files and papers
pertaining to the arbitration till about two months from the date of publication of the award. After
four months, if no request for filing the award is received during that period, these should be
forwarded to the Appointing Authority, in sealed covers indicating thereon brief particulars of the
contents, for record.
-~o.7~scei!ane9,us tssuQsttei~if*i't~ar~!iltiiii~~
30.7.1 Raising claims over and above while signing final bill under protest
30.7.1.1 Form of letter to be sent to the contractor when he has signed final bill with certain
specific claims and later bring out certain other claims over and above those listed while signing the
final bill at the time approaching appointing authority for appointment of arbitrator is at Appendix
30.4. This letter should be signed by the Accepting Officer of the Contract and copies of this letter
should be enclosed to all concerned.
30.7.2. Engagement of Private Lawyer
30.7 .2.1. Approval of the Minister concerned is to be obtained for engaging any counsel who
is not empannelled.
30.7 .2.2 It is to be ensured that no private counsel will be engaged to defend Government
cases in the Court of Law without prior approval of Ministry of Defence & Ministry of Law.
30.7 .3. Retention of Records
30.7.3.1. Instances occur when the original documents (Contract Agreement, drawings, final
bills etc.) could not be produced by the PCDNCDA as the same had been destroyed by him in the
normal course.
30.7.3.2. No doubt connected documents in such contracts should not be destroyed by the
PCDAs/CDAs in normal course. However, if disputes are subsisting in contracts which are even old
, •-··· .· .. ·,: .•< . , , "' ····-•·, '·•:·'·>::••:·>·;<:.•.H•·•··<······ .. 205
and arbitration/court cases are likely; the Accepting officer or the GE (:();,._._iL. • ·;· 1rl forewarn the
PCDNCDA so that he preserves the original documents which are in his custody.
30.7 .4. Settlement of commercial disputes between public sector enterprises
and Govt. Dept. through Permanent Machinery of Arbitration (PMA)
30.7.4.1 Detailed instructions regarding settlement of commercial disputes between MES
(Govt. Dept.) & PSUs are contained in Ministry of Heavy Industries & Public enterprises, Deptt. of
Public Enterprises letter dated 22nd Jan 04 which is at Appendix 30.5 hereto.
30.7 .5 Standard form of appointment letter to be issued by appointing
authority
30.7.5.1 Sample forms of appointment letters to be issued by appointing authority is at
Appendix 30.6.
30.7.5.2 This standard forms of appointment letters shall be suitably modified when it
is being issued consequent to court orders (as per sample form at Appendix 30.7) or when it is
being issued after resignation/retirement of previous arbitrators without finalisation of
case/publication of award.
30.7 .6 Arbitration during Currency of Contract
30.7.6.1. Condition 70 of IAFW-2249 stipulates that unless both parties agree in vvriting,
reference to arbitration shall not take place until after the completion of works or alleged
completion of works or termination of the contract; but in the event of cancellation of the contract
due to contractor's default, reference to arbitration shall rrot take place until alternative
arrangements have been finalised to get the works completed by other Agency.
30.7.6.2 Disputes often arise between the Department and the Contractor during currency of
the contract on matters concerning interpretation of provisions of contracts. If these are referred to
arbitration during currency of contract, it is quite likely that some more disputes may have to be
referred to arbitration after either completion of the work or finalisation of the bill. This would
obviously necessitate a second reference to arbitration. This may encourage unnecessary claims by
some contractors; it may also result in extra work and expenditure involved in preparing and
defending cases in arbitration twice. It would, therefore, be advisable that normally we may agree
to refer such disputes to arbitration only after completion of the work, as provided under condition
70 of IAF'W-2249.
30.7 .6.3 Some disputes arising out of interpretation of the provisions in a contract, however,
may go to the very root of the contract and involve a substantial financial effect, which if not settled
expeditiously may be cited by the contractor as a reason for his inability to progress the work as
scheduled. In such cases, which should be exceptional, in the interest of timely completion of the
work, Accepting Officers may agree to refer ·i:he disputes to arbitration during currency of the
contract, if so requested for by the contractor. However, before agreeing for reference to arbitration
during currency of a contract, as aforestated, a specific written undertaking should be obtained from
the contractor to the effect that such reference to arbitration during currency of the contract is prior
to completion of work, is without prejudice to any or all the rights of the Government under the
contract.
30.7 .6.4 With a view to keeping such cases to the minimum, it is, however, suggested that the
cases selected should be those in which the sum in dispute is over 25% of the contract sum .
.I
SECTION
CIVIL PROCEEDINGS : COURT CASES
~1:! Initi_ation_iJf legal ac!!_~ri:iii Qdti~

31.1.1. Section 80 of the Civil Procedure Code provides that no suit shall be instituted against
the Central Government or against a public officer in respect of any act purporting to be done by
such a public officer in his official capacity, until the expiration of a period of two months after a
notice in writing has been delivered to or left at the office of Secretary to the Central Government or
of the public officer, stating the cause of action, the name, description and place of residence of the
plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has
been so delivered or left.
31.1.2. This requirement of a notice does not apply to proceedings instituted under Article
226 and 227 of the Constitution. In their case, action would have to be taken on receipt of the
notice from the court.
31.1.3. Under the administrative arrangements, when a notice of this kind relating to any
matter concerning the MES is received by the Ministry of Defence, it will be immediately forwarded
to the Dte/ Branch concerned at Integrated HQ of MOD (Army). The Dte/Branch concerned will
send the original to the Command Headquarters concerned, one copy each to the concerned CE
Zone/Project, and retain a copy for their record. In case a legal notice is received direct at the
Dte/Branch concerned at Integrated HQ of MOD (Army), action will be taken by them to send the
original to the Command Headquarters with a copy thereof to the concerned CE Zone/Project.
Headquarters Commands will take action as indicated in para 31.2.1 if notice of suit is received by
them direct from the plaintiff.
31.1.4. If a suit is filed against the Union of India either without first giving a notice as
required by Section 80 CPC or on a notice which is defective, Ministry of Law may be consulted by
the Dte/Branch concerned regarding defence of the suit through administrative section concerned
of the Ministry.
1.~ ~~t!11_11_to be ta~~-!Jlt~e-~~ ~o_!tet~!ll_l ~~! ~ll_!e~~ill! I)!_!Voti'c~!!l s.rtL.:~-;~E0_ 2"-{II~:c i i , ,
:3_
31.2.1 On receipt of a notice of suit, the CE Zone/Project will give it immediate and careful
attention and will submit a report to his Dte/Branch at Integrated HQ of MOD (Army) with a copy
to Command Headquarters for orders as to whether the suit, if filed, should be defended. Every
effort shall be made to submit the report in time to reach the concerned Dte/Branch a month before
the Statutoq pefiod of notice expires.
31.2.2 The report will include a full and detailed statement for :
(a) the circumstances that led to the suit;
(b) the course it is proposed to adopt, namely whether to admit, compromise or defend the
suit and the reasons for the same;
(206)
PART-ffi : POST-CONTRACT STAGE 207
(c) parawise comments on the legal notice;

(d) if it is proposed to defend the suit, the grounds on which it is proposed to base the defence
and the evidence to be adduced;
(e) if the suit turns on documentary evidence, the originals (or true copies) of the documents
relied on by the notice given (if procurable) and the defence;
CO local legal opinion in the case should invariably be obtained. For the purpose, units may
consult the local Government Pleader. In Kolkata, Mumbai, Bangalore and Chennai, the
Branch Secretariat of the Ministry of Law can be consulted. For this purpose, the prior
sanction of the area Commander is not necessary. The reasoned opinion of the Legal
Adviser should be included in the report.
31.2.3 If the threat of action is plainly groundless or frivolous, an elaborate report will not be
required but it should be sufficiently comprehensive to enable Ministry of Defence to form a
conclusion in the matter.
31.3 Action to be taken by the Dte/Braneh concerned aUntegratedRQofM~»(Ai'UIYl;l]ldAruDbl
Section of Ministry of Defence on receipt of the .ReporUrom Lower Fon1Iati0Ji.. : •. . .·. .. . .
-"---~-- - ---~-~--------·-------·--------·-'------~-----·--·-·..:...-·~-------· ~----·---- ---·--'"'---~·-·-'·"·~,--'----"·---·;,_--'""·~:_;,~;:;c.-~·~;..;...~·.· - '
, _:,"---'-
31.3.1. Dte/Branch concerned at Integrated HQ of MOD (Army) will submit the report with
their comments, if any; to the adminisn,ative section of the Ministry of Defence. The administrative
section concerned in the Ministry of Defence will be only responsible for :
(a) examining the claims made in the suit notice and deciding the future action on each of
them (e.g. whether a particular claim should be conceded or a compromise attempted or
rejected finally with a view to face the legal consequence); and
(b) sending an interim reply to the notice of the suit in consultation with the Ministry of Law.
This will, however, not prevent the local MES authorities from obtaining, through the
Dte/Branch concerned, advice of the administrative section concerned in the Ministry of
Defence on any point concerning the said section at any time after the admission of the
suit.
31.3.2 Dte/Branch at Integrated HQ of MOD (Army) will communicate the final decision as to
the defence or otherwise of the case to Command Headquarters with a copy to the concerned CE
Zone/Project.
31.4. Action to be taken wnel1 a sui Us filed. ill a C~~
- - '~"---~----------~ - - - - - - - " ' - - - · - - - - - · - -'-·-..::.._ _ _c_..;;__;__c__;__-__·:.:...:_::.__;..2:_--
<•_.:.
31.4.1 The summons received from the court will be forwarded by the administrative section
of the Ministry of Defence to Dte/Branch concerned at Integrated HQ of MOD (Army) which will in
turn forward them to the concerned CE Zone/Project. The CE Zone/Project will forward the
summons to the Ministry of Law, Branch Sectt. at Mumbai, Kolkata, Bangaiore or Chennai
requesting them to direct the Government Pleader to acknowledge the summons on behalf of
Govemment and to conduct the defence of the suit in consultation with CE Zone/Project concerned.
i'l. copy of this communication will be endorsed to the Govt. Pleadet: Where Ministry of Law, Branch
Sectt. is not located, CE Zone/Project will forward the summons to local Government Pleader to
defend the suit in consultation with concerned authority of MES.
31.4.2 In the case of a summons received from a court in Delhi the reference of the
Government Pleader should be made through the Litigation Section of the Ministry of Law at Delhi.
Similarly, in the cities of Mumbai, Kolkata, Bangalore and Chennai, the solicitors attached to the
Branch Secretariat of the Ministry of Law or the Central Govt. Pleader in City Civil Court should be
contacted.
31.4.3 Information regarding the institution of the suit containing the following particulars
will be furnished to CE Zone/ Project by the Dte/Branch concerned :
(i) The number of the suit.
(ii) The court in which (and if available, the date on which) the suit has been filed.
(iii) The names of the parties.
(iv) The value of the claim or other relief claimed if indicated in the summons.
(v} The date fixed for the first hearing.
(vi) Whether or Not suit notice was received and its disposal.
31.4.4. Vakalatnama or Power of Attorney on behalf of the President of India will be executed
for and on behalf of the President of India and shall be authenticated by the signature of Secretary,
Special Secretary, Additional Secretary, Joint Secretary, Deputy Secretary or Under Secretary to
Government of India.
31.4.5. A Vakalatnama would, however, not be necessary for Govt. Pleaders, who are
appearing on behalf of the Union of India. Except in proceedings in the High Courts and District
Courts wherein Central Govt. Pleaders have been appointed, all State Government Pleaders have
been notified as Central Govt. Pleaders.
31.5.Action to be taken when the DefenceoftheSUitlsssm;tittifei~ :.~~+.'.''.·.;.!.:.~~.t. •.~.i.•.:.~_~l!'.i.~~~fi.;at.~l~tt.;;'l
•• . .· • . . . .. . . .. . • -~-~···~·. "'"· ·"''""''"' ""'
... .cc· ·~··-"'
.·c.c····"'''-"' .• .c·~·=·""·u.~. """'•""'"""'··""·'-""·"'~
31.5.1. When the defence of the suit is sanctioned by the CE Zone/Project, the documents
relating to it will be returned to the officer detailed for assisting the Govt. Pleader in the defence of
the suit. The officer handling the case will then arrange with the local Government Pleader to
prepare the defence and will give him such assistance as may be required. The defence thus
prepared will be submitted for the approval of CE Zone/Project and will then be signed and verified
by the competent authority (vide AO 75!65) and presented in the court through the Government
Pleader. Copies of any additional statement filed by the plaintiff and the issues framed will be
obtained from the Government Pleader by the representative who in turn will forward copies of the
same without delay to the CE Zone/Project and the Dte/Branch concerned at Integrated HQ of MOD
(Army) for information. As regards cases involving policy or intricate questions of law, the Branch
concerned will submit a brief to the administrative section in the Ministry of Defence which will take
the advice of the LA (Defence), if necessary, before forwarding it to the Government Pleader.
31.5.2. It is the duty of the officer detailed under sub-para 31.5.1 to ensure that the
Government Pleader is thoroughly acquainted with the facts of the case and with the evidence to be
adduced.
31.5.3. Periodical progress reports on all cases filed against or on behalf of the Government
will be submitted to the Dte/Branch concerned at Integrated HQ of MOD (Army) and intermediate
formations as per Section 33 here-in-after.
~ART-ill: POST-CONTRACT STJ\.,.L 209
31.6.1. The following important points relate to the conau~ '•he suits :
(a) The averments in a written statement should generally be baseu ~·· - · - · f material point
on the evidence which can be adduced in support of them.
(b) The evidence, whether oral or documentary on which it is intended to rely; should be
carefully scrutinized by the Government Pleader before it is adduced and he should advise
as to its admissibility and probable importance or otherwise, for the purpose of the suit
and suggest that other evidence, if it be forthcoming, may with advantages be substituted
for any which, in his opinion, would be weak or inadmissible.
(c) All the evidence should be assiduously collected and made ready for the day fixed for
hearing. The necessity of making applications for adjournments should be avoided; such
applications on behalf of the opposite party will, unless they are made for sufficient
reasons, be resisted as tending to prolong the litigation and may invite adverse comments
from court or cost or both.
(d) All documentary evidence should be ready and should be produced at the first hearing of
the suit (i.e. the day fixed for the settlement of issues), as required by Order XIII Rule 1 (i)
of the Civil Procedure Code. Applications to the court to accept any documents in evidence
at any subsequent stage of the ttial should be avoided except in special circumstances,
because a similar concession may be claimed by and granted to the opposite party; which
may place Government at a disadvantage. The grant of such a concession to the opposite
party should be resisted as providing occasion for fraud.
(e) Documents filed by the opposite party should be carefully examined at the earliest
opportunity and compared with originals in Govt. records, or with other papers which may
tend to establish or subvert their authenticity.
(f) Any information or documents required for the defence of the case will be obtained
direct from the Dte/ Branch concerned at Integrated HQ of MOD (Army).
31.6.2. As soon as the court has given its decision on the case, the officer detailed to assist the
Government Pleader in the defence of the suit will communicate the findings of the court to the CE
Zone/Project who in turn will communicate the same to the Dte/Branch concerned at Integrated
HQ of MOD (Army). The officer detailed will also take prompt steps to obtain a certified copy of the
Court's judgement and decree on payment of the necessary charges and forward it to Integrated HQ
of MOD (Army) which will decide future course of action without any loss of time.
_31.7: Ap~ell
31.7 .1. Should a judgement be adverse to the Government, the officer detailed for the defence
of the suit will, without causing delay obtain the views of the Government Pleader; who should be
requested to give reasons for his views and submit them along with his own views to CE
Zone/Project concerned indicating also the last date of filing an appeal. In case the CE Zone/Project,
does not approve an appeal and his decision is against the advice of the Government Pleader, the
I
opinion of the Govt. Counsel together with the views of the CE Zone/Project and copy of the
judgement against which appeal is desired to be preferred may be sent to the Ministry of Law
---------------------------------------
210 PART-ID : POST-CONTRAcr STAGI!
Branch Sectt. or toE-in-C's Branch for advice of lA (Defence). Government Pleader may obtain a
copy of the judgement at the earliest through his clerk after making inspection of the record so that
sufficient time is available for deliberation and consultations on the issue of advisability of filing an
appeal or otherwise.
31.7.2. In cases where appeals are intended to be filed in the Supreme Court, all the relevant
papers will be forwarded to the Dte/Branch concerned at Integrated HQ of MOD CAnny) for
obtaining the advice of lA (Def.) and Ministry of Law. Further action with regard to the filing of an
appeal etc. will be taken by the Dte/Branch conterned in consultation with the administrative
section concerned in the Ministry of Defence and Ministry of Law (Central Agency Section).
31.7.3. These instructions will be brought to the notice of all the officers at the lower
formations emphasising that serious notice will be taken of any lapses.
31.8. App··eal1m
"I ·the,m.l···•·.$ti • ~~~~
.... ·· ...p ... . .•~.-...~
31.8.1. If an appeal is lodged by the opposite party against a decision either entirely or partly
in favour of Government, the officer detailed for the defence of the suit, in consultation with the
Government Pleader, will immediately obtain an uncertified copy of the Memorandum of Appeal
and submit to CE Zone/Project with his own opinion and that of the Pleader as to whether the
appeal should be defended or not. CE Zone/Project will adopt the procedure laid down in para
31.7.1. above.
31.9
31.9.1. As and when a decree or award is passed against the Government by the competent
court/tribunal requiring payment of an amount, the case will be referred to the Dte/Branch
concerned at E-in-C's Branch for necessaty action.
31.10~~
31.11 Writ Petitions in UteJitgti~Q~~$
31.11.1. As soon as notice of writ petition is received, the Central Government Standing
Counsel at the High Courts should be immediately contacted and requested to obtain time.
Simultaneously a copy of the petition and supporting affidavit, if any; if it has not been received
from the courts should be obtained and the parawise comments furnished. This should be
accompanied by a report of the nature set out in para 31.2.1. Since writ petitions are heard with
expedition and the courts are reluctant to grant adjournment, in such cases, notice of writ petitions
should be dealt with on an immediate basis.
31.12 Conduct of Central Government Cases in Cotu'ts i:Jl J)eJbi: Dlsirt(lt ccijij!l·ai(~·Jiei~li•iji~~~
31.12.1. The procedure for dealing with civil suit cases through Litigation Section of the
Ministry of Law will be as follows:-
(a) As far as civil writs are concerned, as soon as a court notice is received alongwith a copy of
the writ petition alongwith annexures, two copies of the parawise comments thereon with
the brief history of the case will be forwarded immediately to the Litigation Section with
the request that the arrangement to defend the writ may be made.
i Ir
,.
il•
I
:POST-CONTRACT STAGE 211
In case copies of the writpetitions are not served with court notice, the same should be
returned to the Registrar, High Court of Delhi with the request that a copy of the writ
petition be supplied to them with the notice according to the rules. Service of such notices
in respect of new writs should in no case be accepted; otherwise the Ministry becomes
responsible to collect copies of the writ petitions from the High Court.
As far as cases other than civil writs are concerned, concerned CE Zone will detail an
Officer conversant with the case and contact the Litigation Section of Ministry of Law
direct for furnishing the necessary material for conduct of the civil suit. They will also
obtain the details of the case from the lower formation concerned, if not available with
them, and transmit the material to the Litigation Section of the Ministry of Law. As regards
the cases involving policy or intricate questions of law, the E-in-C's Branch will submit a
brief to the administrative section in the Ministry of Defence which will take the advice of
the LA (Defence) if necessary, before forwarding it to the Litigation Section for further
action. Cases for instituting civil suits by the Govt. will also follow the same channel.
As regards appeals to be filed in Delhi District Courts and High Court, the necessary papers
should be sent to the Litigation Section· at least a week before the expiry of the period of
limitation. In case papers are not sent sufficiently in advance and are sent just on the eve
of the expiry of the period of limitation, the Government Pleaders do not get sufficient
time to study the papers with the result that Government interests are prejudicially
affected, Complete papers may therefore be sent sufficiently in advance.
Telephone No. and name of the officer-in-charge of the case should invariably be
mentioned in all communications intended for the Litigation Section.
(f) The fee bills of the Government Pleader, Delhi sent by the Litigation Section duly verified
will be received by the CE Zone concerned and passed on by the later to the lower
formation for payment.
31.13 Conduct of GovernmenfCast~sii1 Sl1piinJ.~:.[;~
1
31.13.1. The procedure for conduct of cases in Supreme Court will be the same as in para
13.12 except that such cases would be conducted through the General Agency Section, Ministry of
Law and not through the Litigation Section.
31.14 Legal Notice.JJ/S~f.Jigt~;
13.14.1. Receipt of notice under Section 80 of Civil Procedure Code issued by an advocate on
behalf of a contractor and addressed to Secretary, Ministry of Defence with copy to MES formations,
is of common occurrence, particularly where there has been delay in either settlement of
contractor's bill/claim or appointment of an arbitrator. In all such cases when the notice is received
in E-in-C's Branch from the Ministry, Headquarters of the particular area are addressed byE-in-C on
the following lines :
"Copy of legal notice dated ......... served by Shri........ on behalf of the contractor M/s .
............ for payment of security deposit/final bill amount of Rs ................... .is forwarded
herewith, in original, for disposal in accordance with the instructions contained in MES
Manual on Contracts."
I
212 PART-III : POST-CONTRACT STAGil
31.14.2. Copy of this letter is always sent to CE/CWE and GE concerned and they are
instructed to forward a report to the relevant office with a copy to E-in-C's Branch as laid down in
tt'1e aforesaid instructions.
31.14.3. Though in such cases a report is generally submitted by the CE/CWE concerned to
E-in-C's Branch and in that report it is stated that the contract provides for referring the dispute to
arbitration and hence the threatened suit would not be in order, it is not made clear whether the
contractor is simultaneously addressed by the Accepting Officer or CWE to draw his attention to the
Arbitration Clause. It is important t.hat as soon as a copy of the notice is received by the Accepting
Officer, he should immediately address a letter to the contractor's counsel with copy to the
contractor, E-in-C's Branch and other concerned formations (Appendix 31.1).
31.14.4. CEs/CsWE will ensure that such a notice is sent promptly in all future cases. Where
arbitration is inescapable, particulars to enable the appointing authority to appoint an arbitrator
should also be forwarded without delay.
,. ' -' .:- >'- ·<.'/_;_""•;>··~>'\;._,J;:Y"/::~?:0·,)"
31.15 Time Ba:rJ:eji~Q~el
31.15.1. All notices or communications having legal implications should be replied only after
obtaining legal opinion in the matter.
31.15.2. In view of para 31.15.1 above, all aspects of the case must be examined and legal
advice obtained before a legal notice/communication is replied. Report submitted in accordance
with para 31.2 above should clearly indicate that legal opinion has been obtained and copy thereof
should be enclosed. A self contained statement of case together with parawise comments on the
legal notice should also be sent to E-in-C's Branch along with the copy of the report.
31.15.3. As copy of the legal notice is generally received direct by the CE/CWE/GE, the
Accepting Officer should initiate report in accordance with para 31.15.2 above soon after the receipt
of the notice i.e. without awaiting a communication from E-in-C's Branch so that the report to
Ministry of DefPnce is expedited and Ministry of Law's advice obtained for the disposal of the legal
notice.
31.16.1. In a number of cases advice is being obtained from Min of Law on legal or
constitutional issues. It is important to remember that once an advice has been obtained, it is
necessary that the advice is honoured/implemented.
31.16.2. In cases where an advice has been obtained from Ministry of Law Branch Sectt. and
the Chief Engineer holds different views on the advice, the case should be referred to E-in-C's
Branch for taking up with the LA (Defence) in Ministry of Defence or, if need be, with Ministry of
Law or the Central Govt. Solicitor.
31.16.3. Cases will be submitted to E-in-C's Branch in the form of a self contained note
together with all annexures, in duplicate and accompanied by relevant documents.
~~!7}lro!l_e_fl_~e Jie~!iJI~ to Di~})_~~al_of Co~!TOhibit~!'lf Att~c~riUil1t~tiie!~~v::2-hE';'~.:?t?ff:,·~.!i
31.17.1. On receipt of prohibitory/attachment order from the c9urt, the following procedure
will be observed :
p!\RT-lll : POST-CONTRACT STAGE 213
(a) If any amount is readily available on which Govt. has no further claim, the payment to the
contractor should be with-held and/or amount deposited in the court, according to the
nature of order from the court. Simultaneously the contractor should be infom1ed
regarding the receipt of the prohibitory/attachment order from the court and the action
taken thereon.
(b) When no amount whatsoever is due to the contractor, the court should be informed
accordingly.
(c) Where amount less than that attached by the court is readily available, action should be
taken as indicated at sub-para (a) above intimating the amount with-held.
(d) If no amount is readily available, and if the check on the accounts of the contractor has not
been completed, the receipt of the prohibitory/attachment order should be acknowledged
and the court informed :
(i) that no amount has been found to be actually payable to the judgement debtor on
the date of receipt of the attachment order;
(ii) that it remains unascertained whether any; and if so, what amount will be payable to
him and this can be ascertained only on a future date after going into the accounts
and verifying several facts;
(iii) that no debt payable to the judgement debtor, therefore, exists so as to be attached
under Sec. 60 and Order 21, Rule 46 of the Code of Civil Procedure;
(iv) that the claims of the Govt. will first have to be adjusted against the credits of the
contractor (judgement debtor); and
(v) that it cannot, therefore, be stated with any degree of accuracy; what amount, if any;
\\rill be finally available for release to the court.
31.17 .2. Simultaneously the contractor will be informed regarding the receipt of the
prohibitory/attachment order from the court advising him that he should get it vacated or otherwise
the amount to the extent mentioned in the order shall be with-held/paid to the court from any
payment becoming due to him under the jurisdiction of the particular office.
31.17.3. With reference to para 31.17.1 (d) (iii) above, questions arise:
(a) whether in case, where payment on account is due to the contractor, or expected to
become due shortly would it be in order to reply the court that No debt payable
to judgement debtor exists which can be attached under S-60 and Order 21, Rule 46 of the
Code of Civil Procedure; and
(b) whether after replying the court as in (a) above would it be in order to make payment on
account to the contractor inspite of the receipt of an order from the court prohibiting and
restraining the department from making payment of certain amount to the contractor.
31.17.4. The clarification of questions in para 31.17.3 above is-
(a) Para 31.17.3 (a)-The course regarding informing the court that no debt payable to the
judgement Debtor existed, need be followed only in those cases where either no advance
payment under condition 64 of IAFW-2249 was made to the contractor or if any advance
payment was made, it was before the receipt of the prohibitory/ attachment order.
214 PART-UI:POST-CONTRACTSTAGE
(b) Para 31.17.3 (b)-The answer is NO. The appropriate course would be to bring such order
of attachment to the notice of the contractor advising him to take adequate steps to get the
attachment order in question set aside or modified as otherwise the amount attached or
stated in the prohibitory order will be with held from any payment becoming due to him.
It should be left to the contractor to approach the court to get the relief. It is not necessary
or even advisable for the department to fight the contractor's battle in the execution court
and the amount attached or stated in the prohibitory order should not be paid to the
contractor until he gets the impunged order of attachment withdrawn/vacated.
31.17.5. However, in such cases, Para 31.17.1 (d) (iii) above should be reworded as under to
clarify the position to the court :
"That at present no debt payable to the judgement Debtor exists so as to be attached under S.
60 and Order 21, Rule 46 of the Code of Civil Procedure. The contractor is, however, entitled to
advances on account for the performance of the contract which are adjusted in his final account
after completion of the contract. These advances are in the nature of assistance to the contractor for
progressing the particular contract only and have to be allowed for ensuring completion of defence
works by the scheduled date. It is presumed that prohibitory/ attachment order does not apply to
afore-stated advances on account and applies only to the amount that may ultimately become due
to the contractor on completion of the contract and finalisation of his account. May this be kindly
confirmed."
31.17.6. Inspite of the above reply to the court, the amount attached by the court should be
withheld from the advance payment becoming due to the contractor and released only if the Court
confirms the above or vacates/withdraws the attachment or prohibitory order.
31.18 Conduct of Litigations : l1elbllflgh Co'i'(~sijiltij~i;Milill
31.18.1. Delhi High Court often directs that notices to be issued to the Government with
advice to afford opportunity to the Govt. to represent its case to the High Court, before admitting
the writ petitions/appeals or before granting ad interim injunctions/stay orders. Thus, the Govt. by
appropriate representation may not only resist the adverse interim orders but also avoid the
protracted litigations.
31.18.2. The concerned formation does neither take immediate and effective steps in the
matter, nor arrange for engagement of counsel for the purpose. Consequently despite the notice, the
Government's case goes by default and adverse orders are made by the High Court ex-parte. In vieW
of the inability of the concerned formation to contact E-in-C's Branch, it is also not possible for
E-in-C's Branch to act promptly in the matter as, at that stage, the E-in-C's Branch is not even aware
of the fact of issuance of the notice by the High Court, or the issues involved. Accordingly, no
counsel could be engaged or deputed to appear at the hearing as notified.
31.18.3. This results sometimes in the High Court taking serious view of the default on the part
of the Government, granting ex-parte interim orders and even making uncharitable comments as
regards the unsatisfactory conduct of the Government cases.
31.18.4. As a matter of fact, once such ex-parte interim orders are passed, the High Court is
reluctant to vacate them in the course of subsequent proceedings causing serious prejudice to
implement the policy of the Govt. or to its executive functions, apart from the financial loss
t
p_.utT-ID : POST-CONTRACT STAGE :ns
by the Government due to prolongation of the proceedings which could otherwise have been
avoided.
31.18.5. There is no doubt that it is in the interest of the Government and public interest, that
every endeavour should be made to put an end to the present state of affairs in this regard.
31.18.6. All concerned officers are, therefore, requested to note that as soon as they receive
notices from the Delhi High Court, they should immediately contact E-in-C's Branch and effectively
brief the Additional Legal Adviser, incharge of Litigation (High Court) Section, so that s 1<table
action may be taken on such notices with minimum loss of time and arrangement could be mad.e for
appropriate representation of the Government at the time of hearing before the High Court, as
notified, otherwise, the concerned officers may suffer the consequences of default or unwarranted
delay in this regard.
(i) All court cases shall continue to be attended/ defended by the reps of GEs/GEs (I).
Hearing of important cases (to be decided by the CWE) shall also be personally attended
by the ACWE (Contracts)/DCWE (Contacts) of CWE office. Reps of CE Zones shall also
attend the courts during crucial stages of important cases (to be decided by the CE Zone).
(ii) Progress in respect of court cases shall be monitored by the Accepting officers. Draft
petition/draft defence/ draft replies to be filed in the courts shall be vetted by the
accepting officers.
(iii) Overall monitoring' in respect of progress of all cases pending in High Courts shall be done
at CE Command level and in respect of cases in Distt. Court/Lower Courts by CE Zone.
(iv) Quarterly report in respect of Cases in Supreme Court only shall be forwarded to E-in-C's
Branch by CE Commands.
f
IMPORTANT COURT
32.1 Supreme Court of India.. Jlud~r~m1ent fl}:SB., & (f~;1~~.1~at\~~'~.@l~~[\i~

Arb. LR285
32.1.1 Section 11 (6) of the Arbitration and Conciliation Act, 1996 requires the Chief JUl>tic 1;1
of the High Court or any person or institution designated by him to take necessary measures
securing the appointment of arbitrator on receipt of request from a party. Till the judgement
above case, the Chief Justices of the High Court or the Distt. Courts designated by him were pa:ssirtgl
orders for appointment of arbitrator under Section 11 (6) in an administrative manner WIIthoutl
going into merits of the case and without following the judicial procedure of giving an Op]por"turlityJ
to the opposite party of being heard. Some Chief Justices had also delegated the power contained ·
Section 11 (6) of the Arbitration and Conciliation Act 1996, to Distt. and Subordinate Courts.
32.1.2 Hon'ble Supreme Court in this important Judgement given by a Seven
Constitution Bench has ovequled the Judgement given by Five Judge Constitution Bench in Ko,nkcrn 1
Railway Corporation Ltd. and another Vs. Rani Construction Pvt. Ltd., 2000 (3) Arb. LR 435 (SC)
has resolved many contentious issues and has laid down the following guiding principles
exercising the power by Chief Justice for appointment of arbitrator under Section 11 (6) of the Act
of1996:
32.1.2.1 A Chief Justice or the person or institution designated by him is bound to decide
whether he has jurisdiction, whether there is an arbitration agreement, whether the applicant
before him is a party, whether the conditions for exercise of the power have been fulfilled and if an ·
arbitrator is to be appointed, who is the fit person in terms of the provisions of the contract.
32.1.2.2 The power exercised by Chief Justice of High Court or Chief Justice of India under
Section 11 (6) is a judicial power and adjudication is involved in constitution of arbitral tribunal.
Therefore, an order under Section 11 did not relate to administrative functions of Chief Justice of
High Court or Chief Justice of India and is not an administrative order. The Apex Court has held that
"thus going by the general principles of law and the scheme of Section 11, it is difficult to call the
order of the Chief Justice merely an administrative order and to say that the opposite side need not
even be heard before the Chief Justice exercises his power of appointing an arbitrator". Supreme
Court has further held that the power under Section 11 (6) of the Act is not conferred on the
Supreme Court or on the High Court, but it is conferred on the Chief Justice of India or the Chief
Justice of the High Court. Therefore, the fact that the power is conferred on the Chief Justice and
not on the Court presided over by him is not sufficient to hold that the power thus conferred is
merely an administrative power and is not a judicial power. It has been held that an opportunity of
hearing to both the parties is a must and notice must be issued to opposite party to give him an
opportunity of being heard before appointing an arbitrator.
I
I (216)
I
i
'I.
d
f
PART-III : POST-<!\>,~- <:<''f STAGE 217
----------------------------
32.1.2.3 No person other ,._ ~ Tudge and no non jud'/,al body can be designated for
entertaining application for appointing arD,.:. - "11der <:.-- · A 11 (6). The judicial powers are to
be exercised by the judicial authorities and not by non judicial authorities. The Chief Justice can not
designate a District Judge to perform functions under Section 11 (6). Chief Justice of High Court
can delegate function under Section 11 (6) to a Judge of that Court and Chief Justice of India can
delegate the function to another Judge of Supreme Court. This restriction on the powers of the
Chief Justice on designating a District Judge or a non judicial authority flows from the scheme of
the Act.
32.1.2.4 The order passed under Section 11 (6) of the Act being a judicial order, the only
avenue open tQ the party feeling aggrieved by order of Chief Justice of High Court would be to
approach the Supreme Court under Article 136. The order of Chief Justice of India would be final on
matters which are within his purview. There can be no appeal against the order of Chief Justice of
India or a Judge of Supreme Court designated by him while entertaining the application under
Section 11 (6) of the Act.
32.1.2.5 The order passed by arbitral tribunal during arbitration is not capable of being
corrected by High Court under Article 226 or 227 of Constitution of India. Such an intervention by
the High Court is not permissible. The parties can approach the Court only in terms of Section 34 or
Section 37 of the Act.
32.1.3 Hon'ble Supreme Court has clarified that appointment of arbitrators or arbitral
tribunals thus far made are to be treated as valid. As and from the date of this judgement, the
position as adopted in this judgement will govern even the pending applications under Section 11
(6) of the Act. Where Distt. Judge had been designated by the Chief Justice of the High Court under
Section 11 (6) of the Act, the appointment orders thus far made by them will be treated as valid, but
the applications if any pending before them as on the date of judgement will stand transferred, to be
dealt with by the Chief Justice of the concerned High Court or a Judge of that Court designated by
the Chief Justice.
32.2.1 Hon'ble Supreme Court has held that the appointment of a retired Judge as Sole
Arbitrator by the High Court was wrong as the arbitration clause of the contract provided for
appointment of two arbitrators who shall be Gazetted Railway Officers of equal status. Supreme
Court has set aside the judgement of High Court appointing a retired Judge as Sole Arbitrator and
directed the appellant UOI to appoint two arbitrators as per the arbitration clause. Even though the
judgement has been given under Sec. 8 and 20 of Arbitration Act 1940, but it is squarely applicable
to appointment of Arbitrator in MES contracts under Arbitration and Conciliation Act 1996 as the
essence of the judgement is that when there is express provision contained in the contract for
appointment of Arbitrator, any other person not contemplated in the contract can not be
appointed as Arbitrator by the Court~ This Judgement can be very helpful in defending the cases
filed in courts for appointment of Arbitrator by the contractors.
f
218 PART-W : POST-CONTRACT STAG!!
32.3 Supreme court·or Indfaiudgementhtrteltlli-arl\falt3.gerslortitei1t;1lillwi~'iitillfm'~jj§

Sarvesb Cbopra)T 2002 (2} SC 44lideclded onJI\fare~'2iJ02·'·•· .· . '<'•/i~ . •: (:••: s· • • .
32.3.1 Hon'ble Supreme Court has held that while deciding a petition under Section 20 of the
Arbitration Act 1940, the court is obliged to examine whether a dispute, which is sought to be
referred to arbitrator; is one to which the arbitration agreement applies. If it is a matter excepted
from the arbitration agreement, the court shall be justified in withholding the reference. It has been
further held that to be an excepted matter, it is not necessary that a departmental or 'inhouse'
remedy for settlement of claims must be provided by the contract. Merely for the absence of
provision for ih house settlement of claim, the claim does not cease to be an excepted matter. An
important ruling of the Apex Court in this judgement is that an issue as to arbitrability of claim is
available for determination at all the three stages-while making reference to arbitration, in the
course of arbitral proceedings and while making the award a rule of the court. This judgement can
be made use of during the arbitration proceedings and while challenging the award wherein the
claim pertaining to the "Excepted matter" has been awarded in favour of the contractor.
32.4 Supreme Court of India Ju~lgeJnentffiJfUillion.ol.•fl
1995
Hon'ble Supreme Court held that the application made after expiry of three years from the date
of "No Claim Certificate" is barred by limitation contained in Article 137 of Limitation Act 1963. In
this case, the Apex Court has ruled that the claim arose to the respondents before 11 Aug 1965
when they issued "No Claim Certificate" and the final bill was passed. Therefore, the right to apply
for appointment of arbitrator under Section 20 of the Arbitration Act 1940 arose to the respondents
before 11 Aug 1965. As such the application made by them under Section 20 of Arbitration Act
much after the expiry of three years therefrom which is plainly barred by limitation.
32.5 Supreme Court of India ·Judgement In MIS PK Ratllti;ijli ~~·,QQ~
Managing Director, National Thermal Power CoJ')JOI~a~~~n l1l9fl~~.
Cases on 01 1993
32.5.1 Honble Supreme Court has held that when accord and satisfaction is complete,
subsequent claims are not arbitrable. In this case, the full and final satisfaction was acknowledged
by the contractor by a receipt in writing and the amount was received unconditionally. Thus there is
accord and satisfaction by final settlement of the claims. The subsequent allegation of coercion is an
after thought and a device to get over the settlement of disputes, acceptance of the payment and
receipt voluntarily given. Supreme Court further held that the applicant having acknowledged the
settlement and also accepted the measurements, and having received the amount in full and final
settlement of the claim, there is accord and satisfaction and there is no existing arbitrable dispute
for reference to the arbitration.
32.5.2 This case will be very helpful in defending the court cases where a contractor seeks
arbitration even after signing the f.inal bill without ,protest and/ or receiving the payment without
protest. Such cases are to be defended in court drawing attention to the provisions of condition 65
of IAFW-2249 and the theory of Accord and Satisfaction contained in Section 63 of Indian Contract
Act.
f
PART-ill : POST-CONTRACT STAGE 219
32.6.1 Supreme Court has held that in a case arising under Section 11 (6) of Arbitration and
Conciliation Act 1996, if the opposite party has not made any appointment within 30 days of
demand, the right to make appointment is not forfeited but continues. However, an appointment
has to be made before the former files an application in court under Section 11 seeking appointment
of an arbitrator. Only then the right of opposite party ceases.
32.7 Delhi High Court Judgement in Vaish Brothers an~CIJ.~s.. IJor~nli;~~Qi~r:~g*(Q}\~~~~'
225 (Delhi) decided on 06 Sept 20Q4 ..·.· ·. ··•. i •Xv;.';i;bGt2•bt·.;·~.q~f;;{~r¥~·~~~i,~,~it• •it~A~
32.7 .1 Hon'ble High Court of Delhi has held that since the petitioner has proceeded on a
admission of the learned counsel for the petitioner that the final bill was submitted and Clause for
excepted matters and barring raising of any claim after submission of the final bills, clearly comes
into play and the petitioner is not entitled to seek the reference of dispute and even the issue of
existence of a dispute cannot be referred to the arbitrator.
32.8 High Court of Kerala at Emakulatn ..I1lidgeli\ll•nfjn
Vs MIS Bharath
32.8.1 Hon'ble High Court of Kerala has held that the learned Single Judge has committed
error in appointing a person, which is not contemplated in the arbitration clause, before taking
appropriate measures contemplated under Section 11 (6) of the Arbitration and Conciliation Act
1996. The High Court set aside the judgement of Single Judge whereby a retired Chief Engineer,
who was a nominee of the contractor, was appointed as Arbitrator.
32.9 Madras High court Judgement inM/S Kaltlala~ol\l~nt.v~:M#,ipai~~~·¢li~o~li~~~
and others, AIR 2001 Madras 440, decided on 19 JD.lle20o.f ·. ·•· ·· · · · •·x 51's;:•.;<
32.9.1 Hon'ble Madras High Court has held that it is very clear as seen from sub section (6) of
Section 11 of the Arbitration and Conciliation Act 1996 that where the agreement formulated a
procedure for appointment of an arbitrator referable to sub section 2 of Section 11, it is open to the
parties to take necessary measures for enforcing the procedure laid down in the arbitration
agreement. Further held that it is crystal clear that under sub section (6) of Section 11, the Chief
Justice or his designate is not to make any appointment but to enforce or direct the party to appoint
in terms of the agreement entered into between them.
32.9.2 While delivering the above Judgement, the High Coutt has relied upon the Judgement
of Supreme Court in Konkan Railway Corporation Ltd. Vs MIS Mehul Construction Co. (AIR 2000 SC
2821) in which the Apex Court held that when the parties agreed upon for appointment of the
arbitrator and the procedure, the court must implement the procedure.
32.10 Supreme Court of India Judgementin SteeUUthl)rity .or lnllta:tlniit~d.'Vs JC Btiifii~ij;i
Government and Mining Contractor (19!J9Arb.W.L.J. '(14fdeciCfed oD.liS~}J;(~!)9!j.•H ... ··~.~~*
32.10.1 Hon'ble Supreme Court has held that the award awarding damages to the contractor
against terms of the contract is arbitrary; capricious, illegal and without jurisdiction. In this case, it
f
220 PART-W: POST-CONTRACT STAG!l
was noticed by the Apex Court that clause of the agreement specifically stipulated that no claim
whatsoever for not giving the entire site or for giving the site gradually, would be tenable and the
contractor was required to arrange his working programme accordingly. Another clause of the
contract further stipulated that failure or omission to carry out the provisions of the contract would
not give rise to a claim for compensation, if the said failure or omission arose from compliance with
any statute or regulation of Government. The relevant clause of General Condition of the Contract
also provided that failure or delay by the employer to hand over to the contractor possession of land
necessary for execution of the work or any other delay on the part of the employer due to any other
cause would not entitle the contractor to damages or compensation and in such cases, the only duty
of the employer was to extend the time for the completion of the work by such period as it might
think necessary and proper. In view of these conditions of the contract, it was held by the Apex
Court that the award of damages by the arbitrator with interest was against the terms of the
contract.
32.11 Supreme Courtor lndl8. Ju~lgelllieutm'llil:
Ltd., Arb
32.11. Hon'ble Supreme Court has held that reading Section 34 conjointly with other
provisions of the Act, it appears that the legislative intent could not be that if the award is in
contravention of the provisions of the Act, still however, it couldn't be set aside by the Court. If it is
held that such award could not be interfered, it would be contrary to basic concept of justice. If the
Arbitral Tribunal has not followed the mandatory procedure prescribed under the Act, it would
mean that it has acted beyond its jurisdiction and thereby the award would be patently illegal which
could be set aside under Section 34.
Further held that the phrase 'Public Policy of India' used in Section 34 in context is required to
be given a wider meaning. It can be stated that the concept of public policy connotes some matter
which concerns public good and in the public interest. What is for public good or in public interest
or what would be injurious or harmful to the public good or public interest has varied from time to
time. However, the award which is, on the face of it, patently in violation of statutory provisions
cannot be said to be in public interest. Such award/ judgement/decision is likely to adversely affect
the administration of justice.
Further held that the award could be set aside if it is contrary to :
(a) fundamental policy of Indian law; or
(b) the interest ofindia; or
(c) justice or morality; or
(d) in addition, if it is patently illegal.
Further Held-(1) Terms of the contract are required to be taken into consideration before
arriving at the conclusion whether the party claiming damages is entitled to the same.
(2) If the terms are clear and unambiguous stipulating the liquidated damages in case of the
breach of the contract unless it is held that such estimate of damages/ compensation is
unreasonable or is by way of penalty, party who has committed the breach is required to pay such
compensation and that is what is provided in Section 73 of the Contract Act.
PART-ill : POST-CONTRACT STAGE 221
(3) Section 74 is to be read along with Section 73 and, therefore, in every case of breach of
contract, the person aggrieved by the breach is not required to prove actual loss or damage suffered
by him before he can claim a decree. The Court is competent to award reasonable compensation in
case of breach even if no actual damage is proved to have been suffered in consequences of the
breach of a contract.
(4) In some contracts, it would be impossible for the court to assess the compensation arising
from breach and if the compensation contemplated is not by way of penalty or unreasonable, court can
award the same if it is genuine pre-estimate by the parties as the measure of reasonable
compensation.
Further held, A. (1). The Court can set aside the arbitral award under Section 34 (2) of the
Act if the party making the application furnishes proof that :
(i) a party was under some incapacity; or
(ii) the arbitration agreement is not valid under the law to which the parties have subjected it
or, failing any indication thereon, under the law for the time being in force; or
(iii) the party making the application was not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
(iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms
of the submission to arbitration, or it contains decisions on matters beyond the scope of
the submission to arbitration.
(2) The Court may set aside the award :
(i) (a) if the composition of the Arbitral Tribunal was not in accordance with the agreement of
the parties;
(b) failing such agreement, the composition of the Arbitral Tribunal was not in accordance
with Part-I of the Act.
(ii) if the arbitral procedure was not in accordance with :
(a) the agreement of the parties, or
(b) failing such agreement, the arbitral procedure was not in accordance with Part-I of the
Act.
However, exception for setting aside the award on the ground of composition of Arbitral
Tribunal or illegality of arbitral procedure is that the agreement should not be in conflict
with the provisions of Part-I of the Act from which parties cannot derogate.
(c) If the award passed by the Arbitral Tribunal is in contravention of provisions of the Act
or any other substantive law governing the parties or is against the terms of the contracr.
(3) The award could be set aside if it is against the public policy of India, that is to say; if it is
contrary to :
(a) fundamental policy of Indian law;
(b) the interest of India; or
(c) justice or morality; or
(d) if it is patently illegal
(4) It could be challenged :
(a) as provided under Section 13(5); and
(b) Section 16(6) of the Act.
222 PART-III: POST-CONTRACT STAGE
B. (1) The impugned award requires to be set aside mainly on the grounds :
(i) there is specific stipulation in the agreement that the time and date of delivery of the
goods was the essence of the contract;
(ii) in case of failure to deliver the goods within the period fixed for such delivery in the
schedule, ONGC was entitled to recover from the contractor liquidated damages as
agreed:
(iii) it was also explicitly understood that the agreed liquidated damages were genuine
pre-estimate of damages;
(iv) on the request of the respondent to extend the time limit for supply of goods, ONGC
informed specifically that time was extended but stipulated liquidated damages as
agreed would be recovered;
(v) liquidated damages for delay in supply of goods were to be recovered
by paying authorities from the bills for payment of cost of material supplied by the
contractor;
(vi) there is nothing on record to suggesc that stipulation for recovering liquidated damages
was by way of penalty or that the said sum was in any way unreasonable;
(vii) in certain contracts, it is impossible to assess the damages or prove the same. Such
situation is taken care by Sections 73 and 74 of the Contract Act and in the present case
by specific terms of the contract.
32.11.2 In the above judgement, the Supreme Court has laid down the various grounds on
which the award can be set aside under Section 34 of the Arbitration and Conciliation Act 1996. Of
the particular importance is the ruling of the Apex Court that in a case, where the validity of the
award is challenged, there is no necessity of giving a narrower meaning to the term "Public Policy of
India". On the contrary, wider meaning is required to be given so that the "patently illegal award"
passed by the arbitral tribunal could be set aside. Accordingly, it has been laid down by the Apex
Court that the court may set aside the award if the award passed by the Arbitral Tribunal is against
the terms of the contract.
32.12 Punjab and Haryana High Court order in UOl VII. Pa\faJll Cl~i~,CQ~~~t~~tl'jt~q~q
another in CR No. 1989 of 2002 delivered on 16 Nov. 2002 · · · · · · ·. · ·· · ·· .· · .·..
32.12.1 Hon'ble High Court has held that there is no question of interpretation of Clause 11 of
IAFW-2249 General Conditions of Contract, forming part of Contract Agreement by the arbitrator
but mere looking into it, one can say that the amount of compensation for prolongation of the
contract can not be awarded and the award given by the arbitrator is beyond the terms of the
contract and thus beyond the jurisdiction. High Court set aside the judgement of the Add!. Distt.
Judge with respect to the award for damages due to prolongation of contract amounting to Rs.
23.73 lakhs terming it as illegal and has held that the contractor is not entitled to the sum of Rs.
23.73 lakhs on account of prolongation of contract.
32.13 Calcutta High Court Judgement in KC Boul alias. Kaj oj Chan,dra RIIY \Is. UQiogof ll111i~~
__ WP No.l077, 2001 ~ecided on 13Aug 2001 ____ >,~~
32.13.1. In this case, the petitioner challenged his renewal of enlistment and reclassification
in 'D' Class from 'C' Class. Hon'ble High Court held that the enlistment of the petitioner was valid
upto 31-12-2000, and the petitioner could seek renewal in 'C' Class any time before that date. By a
r
: POST..CONTRACT STAGE 223
change of policy, the reclassification of contractor was given effect to. The revised policy enhanced
'the upper tendering limit and also consequently fixed higher sums towards Standing Security for 'C'
Class. The petitioner failed to give tl1e required security inspite of reminders. Based upon
Petitioner's Standing Security Deposit, the respondent had placed him in the revised 'D' class. It was
optional for the petitioner to continue in 'D' Class or seek return of Security Deposit. However,
the petitioner has not fulfilled the condition prescribed for being placed in revised 'C' Class within
the time that was prescribed. The petition was dismissed.
32.14 Allahabad High·court Judgementln uotvs.l\fl$ ¥olfu: ~olt$tl:U~ttoiite6Iii~J'1~j~li
.,..,1 of.l997 decide..U.•....v n.·.tt··No·vemb·er· ·1998.
Ul · ·· · · ·· · ·;.·•
·,>-/:>_:~~-:- ·.•• "••zc'"'·"'ii
"'--·,·>.o::.cf·?;:::·".E
32.14.1 In this case, Hon'ble High Court has struck down suomoto the compound interest
awarded by tile arbitrator in exercise of powers under Article 226 and 227 of the Constitution of
India. Hon'ble High Court has referred to the judgement in Executive Engineer, Rural Engineering
Division, Dhenkanal Vs. Biswanath Agarwalla (AIR 1982 Orissa 263) where in it has been held tilat
the arbitrator has tile power to award interest under Section 29 of Interest Act 1978, but he can not
award the interest on total amount which includes interest. In other words, the arbitrator has no
power to award compound interest. It may also be mentioned in this connection tilat Section 3 of
Interest Act 1978 whicll autilorises the courts (including a Tribunal and an Arbitrator) to allow
interest, itself prohibits tile award of compound interest. Section 3 (3) of the Act says tilat nothing
in this section shall empower the court to award interest upon interest.
32.15 Supreme Court Judgement In 1J.Uted :lndllalln~ur.~,e.t:IQo~.J.t~•·;'\1
2006 Arbitration
32.15.1 In this case, the appellant United India Insurance Co. Ltd. filed arbitration petition
under Section 34 of the Arbitration and Conciliation Act 1996 in the High Court at Bombay.
However, the petition was dismissed by learned Single Judge for want of jurisdiction. The appellant
insurance company thereafter filed a fresh petition under Section 34 of the Act before the Distt.
Court Nagpur alongwith application under Section 14 of the Limitation Act on 17th January; 2005.
The Distt. Court Nagpur dismissed the application field by the appellant company under Section 14
of the Limitation Act and consequently; the application filed under Section 34 of the A & C Act of .
1996 also stood dismissed. Aggrieved against the order passed by the Distt. Court, the appellant
filed a Writ Petition before the Bombay High Court at Nagpur Bench which was also dismissed on
21st December 2005. Aggrieved by the said judgement, the appellant preferred the SLP in the Apex
Court.
32.15.2 Hon'ble Supreme Court while deciding tile SLP, has referred its judgement in State of
Goa Vs M/s Western Builders, 2006 (3) Arbitration LR SC 1 (SC) wherein it has considered the
question as to what extent Section 14 of the Limitation Act 1963, which deals with exclusion of time
spent in prosecuting the remedy before wrong forum is applicable to the Arbitration and
Conciliation Act, 1996. The Apex Court in para 13 of the said judgement has observed that Section
14 of the Limitation Act has not been excluded by this special enactment, i.e., Arbitration and
Conciliation Act, 1996 and the Section 43 of the Act of 1996 clearly says that the Limitation Act
1963 shall apply to arbitration as it applies to the proceedings in court. In the result, the Apex Court
held that the view taken by the courts below excluding the applicability of Section 14 on tile
proceedings was not correct. Further held that Section 14 of the Limitation Act 1963 was applicable
in the Arbitration and Conciliation Act 1996 and accordingly, the Apex Court set aside the
judgements and orders and remanded the matter back to the Distt. Court for deciding the
application under Section 14 of the Limitation Act on merits.
32.15.3 In view of the judgement in State of Goa Vs M/s Western Builders, the counsel for the
respondents has not seriously opposed to the applicability of Section 14 of the Limitation Act which
deals with exclusion of time spent in prosecuting the remedy before the wrong forum bonafide. The
Supreme Court has set aside the order dated 21, Dec. 2005 passed by Bombay High Court at Nagpur
Bench and has remitted the matter back to the Distt. Court Nagpur to decide the objections raised
by the appellant Insurance Company under Section 34 (3) of the Act of 1996 and decide the same
on merits after affording opportunity to the respondent.
32.16 Supreme Court judgement in the llla~tiii' nr··Mlst Shti!ljtt!G(*ti
UOI (Civil Appeal NO
the Arbitration
32.16.1 Hon'ble Supreme Court in this judgement has interpreted the applicability of Section
14 of the Limitation Act to the Arbitration and Conciliation Act 1996. In this case the UOI having
aggrieved with the award, filed a Writ Petition challenging the award before the High Court of
Uttaranchal at Nainital under a bonafide belief that since the arbitrator has been appointed by the
High Court, the award could be challenged in the High Court. However the Writ Petition was
dismissed by Hon'ble High Court in limine being not maintainable on the ground that the award
ought to have been challenged under Section 34 of the Act by filing objections in the court of Distt.
Judge.
32.16.2 An objection under 34 of the Act was filed before the District Judge, Dehradun along
with an application for condonation of delay. However as per sub section (3) of Section 34 of the Act
an application may be made within 3 months from the date on which the party making application
had received the arbitral award, or if a request had been made under Section 33, from the setting
aside the arbitral award. There is further provision to Sub Section (3) of Section 34 that the period
for filing the application can be extended if the applicant could show that he was prevented by
sufficient cause from making the application within the said period of three months by further thirty
days but not thereafter.
32.16.3 The application was filed beyond the extended period of 30 days, hence District
Judge dismissed the application for condonation of delay as well as application for setting aside the
award being barred by time. UOI filed the first appeal in the High Court against the Judgement of
District Judge, but the appeal was dismissed. Aggrieved by the order of the High Court, UOI filed
SLP and the Judgement was pronounced in the matter.
32.16.4 Hon'ble Supreme Court has held that the question with regard to applicability of
Section 14 of the Limitation Act was not examined by the High Court as well as the District Judge.
In fact, it was bonafide error on the part of the UOI to have approached the High Court. It was a
misplaced impression that since the High Court has appointed the arbitrator, therefore, its award
can be challenged before the High Court only. This Court recently in the case of State of Goa V/s
Western Builders reported in (2006) 6 SCC 239 has taken a view that applicability of Section 14 of
PART-ill : POST-cONTRACT STAGE 225
the Limitation Act is not excluded from the Act of 1996. This Court in Western Builders (supra) has
observed as follows :
"By virtue of Section 43 of the Act of 1996, the Limitation Act applies to the proceedings under
the Act of 1996 and the provisions of the Limitation Act can only stand excluded to the extent
wherever different period has been prescribed under the Act of 1996. Since there is no prohibition
provided under Section 34, there is no reason why Section 14 of the Limitation Act should not be
read in the Act of 1996, which will advance the cause of justice."
32.16.5 Apex Court has remitted the matter back to the trial court to decide whether the
application for setting aside the award under Section 34 of the Act filed by appealer could be
considered to be within the period of limitation i.e. after deducting the period spent by the applicant
in prosecuting the remedy before the High Court. The order of High Court and that of the Distt.
Judge has been set aside.
32.16.6 The above judgement will be very useful in defending Govt case where the award has
been erroneously challenged in the court other than the designated one under Section 34 of the Act.
32.17 Hon'ble Supreme Court Judlgelllltm;tJnther)lt~L~~@lt'~
Pvt Ltd V/s UOI and &NJI' ?rum (4~fAitJB~:~ ~(~!~~~~,~
3167·3168 of 2005) : Contractor n()tllntlt}ed ru1
delays attributable to ettlplo:vel' 1111e trlf
IAFW-2249.
32.17.1 Hon'ble Supreme Court in the subject landmark Judgement has interpreted Condition
11 (C) of IAFW-2249; General Conditions of Contract as per which no claim in respect of
compensation or otherwise, howsoever arising as result of extensions granted under condition 11
(A) and (B) shall be admitted.
32.17.2 UOI filed application before Single Judge of M-adras High Court for setting aside the
awards in two contracts.
Hon'ble Single Judge vide order dt 24 Aug 94 and 22 Sep 95 rejected the applications and
made award rule of the court in each case. Aggrieved by Single Judge Order, UOI filed appeals
before the Division Bench of Madras High Court. The same were partly allowed and Hon'ble High
Court concluded that the arbitrator has exceeded his jurisdiction in making an award towards
claims which were made in derogation of Clause 11 (C) of the contract which prohibited the
contractor from making any claim for compensation or otherwise howsoever arising as a result of
extension of time granted under the contract. Under the circumstances, the contractor filed appeal
before Hon'ble Supreme Court. The Apex Court has dismissed the appeal of contractor and has
upheld the High Court order on the ground that the arbitrator had acted in excess of his jurisdiction.
32.17.3 Hon'ble Supreme Court in the subject judgements has held that:
(a) "After enumerating certain delays, sub-clause (vii) of Clause (A) specifically mentions delay
on account of any other cause beyond the control of the contractor. The causes for delays specified
in Clause (A), thus encompass all delays over which the contractor has no control. This will
226 PART-III: POST-CONTRACT STA.GF,
necessarily include any delay attributable to the employer or any delay for which both the employer
and the contractor are responsible. The contract thus, provides that if there is any delay, attributable
either to the contractor or the employer or to both, and the contractor seeks and obtains extension
of time for execution on that account, he will not be entitled to claim compensation of any nature
'
on the ground of such delay, in addition to the extension of time obtained by him."
(b) "Cause 11 (C) of the General Conditions of Contract is a clear bar to any claim for
compensation for delays, in respect of which extensions have been sought and obtained. Clause 11
(C) amounts to a specific consent by the contractor to accept extension of time alone in satisfaction
of his claim for delay and not claim any compensation. In view of the clear bar against award of
damages on account of delay, the arbitrator clearly exceeded his jurisdiction, in awarding damages,
ignoring Clause 11 (C)."
32.17.4 The above judgement will be very useful in defending Govt., case against contractor's
claim for damages or compensation for prolongation of contract period in proceedings where award
is being challenged on this ground.
32.18 No claim certificate leading to full and final settlement otaU the ciaiJlis · ARBa,~p~al
3/2000 in Sikkim High Court: Sagarmull Agal'Wala Vs ~01~-~~~~'~"'-'-~~~~
32.18.1 In the above case, the award given by Sole Arbitrator in violation of Condition 65 of
IAFW-2249, was made rule of the court by Add! Distt Judge. Appeal filed by UOI in High Court was
also dismissed whereupon the UOI filed SLP in Supreme Court which was allowed by Hon'ble
Supreme Court and the orders of Add!. Distt. Judge as also that passed by Hon'ble High Court were
set aside and the matter was remanded to the Distt. Judge to decide the matter afresh in accordance
with law. Accordingly, the Distt. Judge considered the matter again and the award given by the Sole
Arbitrator was set aside.
32.18.2 In view of Condition 65 of IAFW-2249, Hon'ble High Court of Sikkim has dismissed
the appeal of the contractor filed against the Distt Court Order wherein the Distt Court has set aside
the award of the Sole Arbitrator on the ground that "No Claim Certificate" indicated that there was
full and final settlement of all the claim and nothing remained to be done under the contract. While
dismissing the appeal of the contractor, Hon'ble High Court has referred the judgement of Hon'ble
Supreme Court in M/S P K Ramaiah & Company Vs. Chairman & Managing Director, National
Thermal Power Corporation (1994 Supp 93 SCC 126) and Condition 65 of IAFW-2249, General
Conditions of Contracts and held that "In present case there is accord and satisfaction of the final
settlement of the claims by the Appellant. The plea about accord and satisfaction goes to the root of
the matter and has to be dealt with by the Court even where the arbitrator has made the award in
r favour of the contractor after final settlement of the claim of the contractor."
32.18.3 The allegation of pressure levelled by the Petitioner Contractor also has been
dismissed by the Hon'ble High Court stating that "if a contracting party gives no claim certificate in
order to get early payment, the contractor can not turn around and say that No Claim Certificate
was issued because he needed the money early. The allegation about pressure is in the nature of an
after thought and even if there remained any claims, they stood waived in view of the specific
provision made in clause 65 of the General Conditions of Contracts. After the contractor received
payment in full and final settlement of his claim, the contract did not survive any longer with the
result that the terms of the contract providing for arbitration also ceased to survive."
\'
32.18.4 The above judgement even though given under Arbitration Act 1940, reiterates and
uphelds the theory of accord and satisfaction emphasized by Condition 65 of IAFW-2249 and will be
helpful in defending the similar claims and award during arbitration and court cases.
32.19 Hon'ble Supreme Court Judgement in tlte•Matter o(.RLKtlathla'~fll[.~~~Ji~tlistjiff~f
Gujrat in Civil Appeal No. 3245 of 2003decidedont4ian.21tl(' . · · · · · ·~z·~.J~~~,ftf) .•~.·z;~:.r:i~.t;~
(Para 9 refers). The following principles emerge :
(i) Merely because the contractor has issued "No due Certificate", if there is aceptable
claim, the court can not reject the. same on the ground of issuance of "No Due
Certificate".
(ii) In as much as it is common that unless a discharge certificate is given in advance by the
contractor, payment of bills are generally delayed, hence such a clause in the contract
would not be an absolute bar to a contractor raising claims which are genuine at a later
date even after submission of such "No-claim Certificate".
(iii) Even after execution of full and final discharge voucher/receipt by one of the parties, if
the said party able to establish that he is entitled to further amount for which he is
having adequate materials, is not barred from claiming such amount merely because of
acceptance of the final bill by mentioning ''without prejudice" or by issuing 'No Due
Certificate'.
The Supreme Court has set aside the judgement of the Gauhati High Court and upheld the
award of the arbitrator in the dispute over delay in the construction of the extension of the
Guwahati airport terminal. The contracted period for completion of the project was 21 months, but
it was extended twice. The contractor and the government blamed each other for the delay; and
ultimately the government cancelled the contract. The dispute was referred to arbitrator and the
award was in favour of the construction firm. However, the High Court set aside the award, leading
to the appeal in the Supreme Court (JG Engineers Ltd. Vs Union of India). The court held that the
contractor was entitled to extension of the period for completion of the work, as the delay was
caused by the government. The firm was also entitled to escalation costs for the work done during
, the extended period. It cannot be imposed penalty for the delay. Moreover, since the delay was
caused by the government, it cannot make counter-claims against the firm, the judgment said.
32.21 Extract from the Supreme Court's Decision in FatehChand~Jiand$,~n(AJiit~$(Ji~age
1045)
, ..... Section 74 of the Indian Contract Act is dearly an attempt to eliminate the somewhat
' elaborate refinements made under English common law in distinguishing between stipulation
providing for payment of liquidated damages and stipulations in the nature of penalty. Under the
English common law, a genuine pre-estimate of damages by mutual agreement is regarded as a
1 stipulation naming liquidated damages and binding between the parties; a stipulation in a contract
in terrorem is a penalty and the Court refuses to enforce it, awarding to the aggrieved party only
1' reasonable compensation. The Indian Legislature has sought to cut across the web of rules and
J
I
I
presumptions under the English common law, by enacting a uniform principle applicable to all
stipulations naming amounts to be paid in case of breach, and stipulations by way of penalty.
32.22 Their Lordship further observed that provision of damages in the case of breach of
stipulation by way of penalty is by Sec. 74 reasonable compensation not exceeding the penalty
stipulated for. In assessing damages the court, has subject to the penalty stipulated, jurisdiction
to award such compensation as it deems reasonable having regard to all the circumstances of
the case Jurisdiction of the award to compensation in the case of breach of contract is
unqualified except as to the maximum stipulated; but compensation has to be reasonable, and
that imposes upon the court duty to award compensation according to settled principles. The
Section undoubtedly says that the aggrieved party is entitled to receive compensation from the
party who has broken the contract whether or not actual damages or loss is proved to have
been caused by the breach. Thereby it merely dispenses with proof of 'actual loss or damage' : it
does not justify the award of compensation when in consequence of the breach no legal injury
at all has resulted because compensation for breach of contract can be awarded to make good
loss or damage which naturally arose in the usual course of things or which the parties knew
when they made the contract, to be likely to result from the breach. Duty not to enforce the
penalty clause but only to award reasonable compensation is statutorily imposed upon courts
by Sec. 74. In all cases, therefore, where there is a stipulation for payment of a fixed sum of
money by way of compensation i.e. where the damages have been pre-estimated and
considered to be genuine as well as in cases where a graded scale of levy of compensation has
been provided for under the contract, the court has jurisdiction to award such sum only as it
considers reasonable, but not exceeding the amount specified in the contract. In the
circumstances where we make a pre-estimate of damages or otherwise, it would always be
open to the court to fix and award such compensation as it considers reasonable under the facts
and circumstances of the case.
32.23 The estimates of the damages made by the parties can never be considered to be the final
word. The court has always the power to examine the reasonableness of the amount and award
such sum as it considers to be reasonable. This would appear to be so even in cases where the
pre estimated damages have been stipulated for in the contract, after calling the other party's
. specific attention to the same.
~ ·-~-.
,~·---- ~~------------------------------ -
PartiU
RE:PORTS nno RETURnS
SECTION
REPORTS & RETURNS IN RESPECT OF DIRECTORATE

OF CONTRACT MANAGEMENT/ E8 SECTION
33.1
The list of reports and returns pertaining to Dte of Contract Management/E8 section is given in
Appendix 33.1. For reports and returns, the Performae as per annexure P-1 to P-12 to
Appendix 33.1 shall be used.
33.2
Monitoring and preparation of reports & returns shall be done as under :
(a) Quarterly review of pending court cases (Annexure P-1) :
(i) All court cases shall continue to be attended/ defended by the representatives of GEs/GEs
(I}. Hearing of Important cases (to be decided by the CWE) shall also be personally
attended by the ACWE (Contracts)/DCWE (Contracts) of CWE office. Reps of CE Zones
shall also attend the courts during crucial stages of important cases (to be decided by the
CE Zone).
(ii) Progress in respect of court cases shall be monitored by the Accepting Officers. Draft
petition/ draft defence/ draft replies to be filed in the courts shall be vetted by the
Accepting Officers.
(iii) Overall monitoring in respect of progress of all cases pending in High Courts shall be done
at CE Command level and in respect of cases in Distt. Courts/Lower Courts by CE Zone.
(iv) Quarterly report in respect of Cases in Supreme Court only shall be forwarded toE-in-C's
Branch by CE Commands.
(b) Quarterly workload returns (WLR) (Annexure P-2, Part I & II) :
(i) WLR shall be initiated/circulated in two parts as under:
Part-I : List of Contractors having workload
Part-ll : List of Contractors having no workload but banned for issue of tenders.
(ii) It shall be circulated as under :
(aa) Work Load Return in respect of Contractors having total work load up to Rs. 50 lakhs
shall be issued by the CE Zone/Project.
(ab) Work Load Return in respect of Contractors having total work load more than Rs. 50
lakhs shall be issued by the CE Command/ADG (OF & DRDO).
(ac) Work Load Returns in respect of 'SS' class Contractors and Contractors though not
enlisted but having work load more than Rs. 15.00 crores shall be issued by E-in-C's
Branch.
(231)
232 PART-IV : REPORTS AND RE11JR.Ns
(iii) CsWE while forwarding consolidated reports to CE Zones, will not endorse copy to GEs.
(iv) Zonal CEs while forwarding reports to CE Commands in respect of Contractors having
work load more than Rs. 50 lakhs will not endorse copy to CsWE and E-in-C's Branch.
(v) Zonal CE will compile and circulate his report (work load up to 50 lakhs) to all CE
Commands, all CE Zones within his Command, CsWE & GEs under his control and
also to other CsWE and GEs of other Services working within his areas. Zonal CE will not
endorse his report toE-in-C's Branch.
(vi) Commands CE will compile and circulate his report (Workload more than Rs. 50 lakhs) to
E-in-C's Branch, other command CEs, all Zonal CEs in India and all CsWE and GEs in his
Command.
(vii) Show cause notices for proposed adverse remarks in work load returns shall be served by
the Accepting Officer of Contracts latest by 1Oth of the last month of the quarter and copy
of the same alongwith reply of Contractors shall be enclosed with WLR by GE/CWE, while
forwarding report to CE Zone, and by CE Zone to CE Command.
(c) Half yearly report for Market rates of materials & labour (Annexure P-3) :
Market rates of materials & labour will be got finalised by the GEs through board of officers and
proceedings shall be kept in his records. Confirmation to this effect shall be given in forwarding
letters of the report.
(d) Quarterly Return for fore-cast percentages over SSR for preparation of AEs
(Annexure P-4) : It shall be prepared based on market trend, quotations being received
(neglecting freak quotations) and adding factor of inflation/escalation for future period (Appx 1
year). Monitoring of reports shall be done by the CE Commands for realistic forecast percentages
and any abnormal variations (without justification) noticed, shall be got corrected by the concerned
CE Zone. For common stations, Director (Contracts) of different zones shall consult with each other
to arrive at uniform percentage.
(e) Quarterly reports of contracts accepted during the quarter (Annexure P-5) :
GEs, CsWE and CEs will send report in respect of their own accepted contracts to next higher
Engineer authorities i.e. to CWE, CE Zone and CE Command respectively.
(f) Quarterly Report Monitoring delay in payment of final bills (Annexure P-6) :
(i) GE will initiate report in five parts as under :
Part-! : Final bills outstanding between 6 to 9 months from date of completion.
Part-II :Final bills outstanding between 9 months to 15 months from date of completion.
Part-III: Final bills outstanding between 15 months to 3 yeqrs from date of completion.
'
Part-IV : Final bills outstanding more than 3 years from date of completion.
Part-V : Details to Final bills paid during the Quarter out of Part I & I\1.
(ii) Monitoring of final bills shall be done as under :
Part-! : CWE
Part-II : CE Zone
'I
pART-IV : REPORTS AND RETURNS 233
Part-III : CE Command
Part-N : E-in-C's Branch
(g) Half yearly report in respect of Progress of Arbitration cases (Annexure P-7)
(i) Report shall be prepared in two parts as under :
Part-I : In respect of GE's and CWE's contracts, by CWE.
Part-II : In respect of CE's contracts, by CE Zone.
(ii) , Part I report in respect of GE's and CWE's contracts shall be submitted to CE Zone.
(iii) Part II report in respect of CE's contracts shall be submitted to CE command and E-in-C.
(h) Quarterly return of overpayment to Contractors/ recovery due from
Contractors (Annexure P-8) :
(i) This report shall be compiled under following groups :
(aa) Recovery on account of Risk and Cost.
(ab) Recovery on account of over payment.
(ac) Recovery on account of STEs observations.
(ad) Miscellaneous recoveries.
(ae) Recoveries already established in Arbitration/Court decree.
(af) Recoveries affected during the Quarter.
(ii) It shall be prepared in three parts as under :
Part-I : Cases in which amount of recoveries is less than Rs. 50,000/-
Part-II : Cases in which amount of recoveries is between Rs. 50,000/- and Rs. Slakhs
Part-III : Cases in which amount of recoveries is more than Rs. 5 lakhs
(iii) Part I report shall be forwarded up to CWE level and monitoring shall be done by the CWE
office.
(iv) Part II report shall be forwarded up to CE Zone level and monitoring shall be done by the
CE Zone office.
(v) Part III report shall be forwarded up to CE Command level and monitoring shall be done
by the CE Command office.
(j) Quarterly report in respect of cases more than 2 months old, in which
arbitrators are yet to be appointed (Annexure P-9) :
(i) Two months period shall be reckoned from the date of receipt of Contractor's request for
appointment of arbitrator and/or date of notice under condition 70 served on Contractors
in respect of Government recoveries and date of resignation of previous arbitrator in case
of resignation cases. It shall be prepared in two parts as under :
Part I : In respect of GE's and CWE's contracts
Part II : In respect of CE's contracts.
(ii) Part I shall be forwarded up to CE Zone (Appointing Authority)
(iii) Part II shall be forwarded by CE Zone directly to E-in-C's Branch.
1
234 PART-IV : REPORTS AND IU!TURI\is
(k) Quarterly return of 3 months old cases in which LA (Defence) and/or MOD
decisions on implementation/ contesting of awards are awaited (Annexure P-10) :
(i) Three months period shall be reckoned from the date of award/date of court order. This
report shall include cases in which LA (Defence) and/or MOD decisions on
implementation/contesting of awards have not yet been received. Report shall be
submitted directly by CE Zone toE-in-C's Branch.
(l) Quarterly report in respect of STE's Observation (Annexure P-11) :
It shall be prepared in two parts as under and will be sent by GEs to CsWE with copy to CE
Zone and CE Command for monitoring.
Part I : In respect of Observation other than Minor Observations.
Part II : In respect of Minor Observation.
(m) Quarterly progress report in respect of CWE's and CE's Contracts
(Annexure P-12) :
It shall be sent by GEs to CsWE with copy to CE Zone for monitoring.
(n) Quarterly report on progress of ADGTE serious cases and Draft Para cases.
It shall be sent by CE command toE-in-C's Branch with copy to ADGTE Branch.
nPPEnDICES
I
PART-I : PRE-CONTRACT STAGE-APPENDICES 237
I.A.RW-2190 (Revised: 2009)

APPLICATION FOR ENROLMENT AS CONTRACTOR
VWe ................... am/are desirous of being registered on the M.E.S. List of Contractors for the ..................... .
Division/Area/Command/E-in-C's Branch to undertake the following categories of work (delete those inapplicable):
(a) Civil Engineering Works
(i) Building and Roads
(ii) Water Supply and Sewage Disposal
(iii) Runways and Pavements
(iv) Marine and Harbour Works
(b) Electrical Engineering Works
(i) Low Tension Electric Works (upto 1100 Volts)
(ii) High Tension Electric Works (excluding 33 KV)
(iii) 33 KV and Extra High Voltage Installations
(c) Electrical/Mechanical Engineering Services
(i) Air Conditioning and Refrigeration
(ii) Lifts
(iii) Electrically Operated Cranes
(iv) Incinerators
(v) Mechanical Laundry
(vi) Fire Fighting and Fire Detection System
(vii) Water and Effluent Treatment
(d) Miscellaneous
(i) Manufacture of Furniture
(ii) Handling of Engineer Stores and Transport
(iii) Horticulture and Land Scaping
(iv) Information Technology Services
(v) Maintenance and Operation of ElM Installation
(vi) Repair of Transport Vehicles
(vii) Energy Audit Services
(viii) Auction Services
upto a value of Rs ...........•....... and give below statement of my/our capabilities and resources.
1. PARTICULARS OF CONTRACTOR :
Name
Proprietor/Partners
Photographs
Address for Assessment of Income-tax ..................................................................................................................... .
Address of Business Premises ................................................................................................................................... .
2. PARTICULARS OF PROPERTY :
Movable
(attach Bankers' Reference/affidavit)
Immovable
)
238 PART-I : PRE-CONTRACT STAGE-APPENDICES
(attach certificate from D.CJCollector or a First Class Magistrate/ valuation report from Registered Valuer and
Affidavit)
Limited Liability Companies
(Copy of last Balance Sheet audited by Chartered Accountants)
3. PARTICULARS OF EXPERIENCE :
(i) Works carried out
(Note : Attach a list showing clearly the name of the work, the amount, the locality and when executed.)
4. PARTTr.ULARS OF CONTRACTOR'S ORGANISATION :
Head Office ................................................................................................ Telephone No ........................................ .
Local Office ....................................................... Telegraphic Address ....................................................................... .
Workshop .................................................................................................................................................................. .
Plant. ......................................................................................................................................................................... .
Transport .......... :........................................................................................................................................................ .
(a) Particulars of persons holding Power of Attorney ............................................................................................ .
(b) Name of Bankers .............................................................................................................................................. .
(c) Particulars of all companies or firms or associations of persons in which the applicant is substantially
interested in his individual or fiduciary capacity ............................................................................................. .
(d) Wbether enrolled as a member of any Builder's Association ? If so give the name of the Association and the
date of enrolment ............................ .
5. PARTICULARS OF SUPERVISING STAFF :
Do you supervise personally ?
Name and permanent address of Agents ............................................................. .
Qualification ....................................................................................................... .
Function .............................................................................................................. .
Powers ................................................................................................................. .
6. Income-tax PAN No (Attach copy of PAN Card).
7. RELATIONSHIPS WITH M.E.S. REGISTERED CONTRACTORS :
Name of related firm ........................................................................................... .
Nature of relationship ......................................................................................... .
Particulars of his/their registration ...................................................................... .
8. (a) If you are at present enlisted with any other Government Department/ Formation, etc., give-
(i) Name of formation.
(ii) Category, Limit and Index No.
(iii) Locality or area for which enlisted.
(iv) Letter No. and date of enlistment
(b) State whether after enlistment you were ever :
Removed from the list
or
Debarred from tendering
or
Black-listed
(c) Every contractor/firm wishing to be registered as an approved contractor shall submit a list of those persons
who are working with him/it in any capacity and who are near relatives of any Gazetted/Commisioned
r
'
'
Officers in the M.E.S. or Ministry of Defence. He shall also intimate names of such persons if they are
subsequently employed with him/it.
(d) He shall intimate the name of the persons who are near relatives of the Proprietor/Partners/Directors and or
Gazetted/Commissioned Officers in MES or Ministry of Defence. He shall also intimate name of such persons
who subsequently happen to be employed by him/it.
(e) He/it shall not be eligible to tender for the works under following conditions :
(aa) The works in the entire area of CE Zone where near relatives of the Proprietor/
Partners/Directors/their employees are working as Gazetted/Commissoned Officers.
(ab) The works in the entire area of CWE/GE (I) under whom near relatives of the Proprietor/
Partners/Directors are working as Junior Engineers.
(ac) Any breach by the contractor/firm of the conditions at Ser (i) to (iii) above shall be considered
sufficient ground to debar him/it from registration or to remove him/it from the approved list.
(Note : The term 'near relative' means wife~ husbancL parents, children, brothers, sisters, uncle, first cousin, brothers/sisters·in-law,
sons/daughters-in-law, father/mother· in·law).
9. !/We agree to notify the officer accepting this application and registering my/our names on the M.E.S. List of
Contractors of any changes in the foregoing particulars as they occur and to verify and confirm these particulars
annually on 1st January.
10. !/We agree to execute a BOND in favour of the President of India in the form and to the amount prescribed as
security against proper performance of work entrusted to me/us for execution in accordance with the applicable
conditions of contract, as a condition precedent to my/our name being registered on the M.E.S. List of
Contractors.
11. !/We understand and agree that the appropriate M.E.S. Authority has the right as he may decide, not to issue
tender form in any particular case and also to suspend, remove or black-list my/our name from the M.E.S. List of
Contractors in the event of my/our submission of non-bonafide tenders or for technical or other delinquency in
regard to which the decision of the appropriate M.E.S. Authority shall be final and conclusive.
12. !/We certify that the above particulars are correct and that should it be found that !/we have given a false
certificate, or that if !/we fail to notify the fact of my/our subsequent amalgamation with another contractor or
firm, my/our name will be removed from the M.E.S. List of Contractors and any contract that !/We may be holding
at that time is liable to be rescinded.
13. [/We undertake not to employ directly or indirectly any *Army Personnel dismissed from Services in my/our
business.
14. !/We note that registration as M.E.S. Contractor does not carry with it the right to tender for M.E.S. work.
Signature of Contractor ...................... .
Date .................................................... .
*The term "Army Personnel" is intended to include Government Servants also.
FOR M.E.S. USE ONLY

(To be appropriately completed by the M.E.S.
Registering Officers)
Registered as a M.E.S. Contractor for (Category) ....................................................................................... in (class)

................................................................ with an upper financial notation of Rs ............................................... for work
in ...................................................... .
Division/Area/Command/India.
Signature ................................ .
Designation ............................. .
Date ........................................ .
I
240 PART-I : PRE-CONTRACT STAGE-APPENDICEs
Bank Address and Code lllo,

FORM OF SOLVENCY CERTIFICATE FROM NATIONAUSED/SCHEDULED BANK
This is certified that to the best of our knowledge and information M/s/ Shri/Smt............................... ..
having address .............................. ,a customer of our bank are/is respectable and can be considered solvent
upto Rs. ......... ........... ............... ............... .... ... (Rupees ........................... )/financially sound for any
engagement upto Rs. .. .......................... (Rupees ................... ). This certificate is issued without any
guarantee or responsibility on the bank or any of the officers. "
(Signature)
Name, Designation and Personal Code No. of Signatory
& Seal of Bank
Note : In case of partnership firm, certificate to include names of all partners as recorded with the bank.
FORM OF WORKING CAPITAL CERTIFICATE FROM NATIONAUSED/SCHEDULED BANK
This is certified that M/s/Shri/Smt. ............................... having address .............................. has/have
been maintaining a saving bank account/current account/fixed deposit account with this branch of bank
since ................................ and the firm is having working capital of approximately Rs ............................. ..
and/or the firm is enjoying overdraft/credit facilities upto limit of Rs ....................................... This
certificate is issued without any guarantee or responsibility on the bank of any or the officers.
(Signature)
Name, Designation and Personal Code No. of Signatory
& Seal of Bank
:PART-I : :PRE-CONTRACT STAGE-APPENDICES 241
CHECK UST FOR REGISTRATION/UPGRADING OF CONTRACTORS
_1.0 Categories l!f~4~il

1.1 Check whether L~e contractor is having sufficient experience and expertise for the categories of
works applied for. If not, eliminate the categories of works not considered fit.
1.2 Check whether the contractor is having adequate resources and T & P generally in all cases and in
respect of specialist categories of works in particular.
2.0 Particulars of experience and enlistment tn other Depal1mefi~''@il!~t~~~:~tr~8:utffi
2.1 Check whether the list of works carried out indicates clearly the name of work, approximate cost
thereof, dates of commencement and completion, whether completed or not, and percentage progress if work
is incomplete, name (and designation) of the Officer/ Agency/Department allotting the work together with
full and correct postal address. Make a reference to the concerned Department under a confidential letter to
ascertain the performance, financial position, adherence to rime schedule and workmanship etc. Be on the
look out for any news paper report about the adverse criticism about any works included in the list by the
contractor.
2. 2 Verify correctness of particulars of enlistment with other Departments through a confidential letter
and also ascertain the present work load in that Department. Original Certificate from the appropriate
authority under whom the work is executed/ completed may be accepted.
2.3 Check whether the class for which the contractor has applied for is commensurate with the values of
individual works carried out by the contractor.
2.4 Check whether the contractor has given the list of Engineers employed, their qualifications
supported by photostat copies of degree/diploma certificates issued by University/recognised Institute and
any other credential indicating the experience. An affidavit on a non-judicial stamp paper of appropriate
value should also be obtained from the contractor as well as the Engineer(s) regarding employment duly
attested by Notary Public or First Class Magistrate.
a.o Assets;
3.1 Check whether details of workshop, machinery, range of production, mode of utilisation of
machinery, etc. and of other movable assets are given in the form of an affidavit on a non-judicial stamp
paper of appropriate value duly attested by Notary Public or First Class magistrate.
3.2 Check whether the contractor has given full particulars of the immovable property owned by
proprietor, any/or partners alongwith its present value, in the form of an affidavit duly attested by Notary
Public or First Class Magistrate. The affidavit should interalia include requisite endorsements. Value of the
properties stated in the affidavit should be supported by valuation certificate issued by a registered valuer. A
certificate about the valuation of property given by revenue authorities may be accepted.
3. 3 Check whether the contractor has given a list of T & P and transport owned, giving Registration
Number, name of person owning it, make/model, year of manufacture, present value in the form of an
affidavit duly attested by Notary Public or First Class Magistrate.
3.4 Check whether the contractor has given a Solvenc Certificate from his Bankers on requisite
specimen. This certificate should indicate the code number of the Bank, Name, Designation and personal
code number of the signatory to certificate, complete postal address and telephone numbers of Branch.
3.5. In the case of limited companies, whether public or private, the net realisable assets (Fixed Assets)
will be ascertained from their latest balance sheets.
242 PART-I : PRE-CONTRACT STAGE·APPENDIC!ls
4.0. Pal'tlhiitVIIllftiiR
4.1. Check that the contractor has i11timated whether it is a proprietorship concern or partnership
concern or a Private Ltd. concern.
4.2. In case of proprietorship concern the contractor should give an affidavit stating that he is the sole
proprietor of the firm working in the name & style of".................................... " (Name the firm).
4.3. In the case of partnership concern check whether the partnership deed as well as a certificate from
the Registrar of Firms has been furnished.
4.4 In the case of private limited concern check whether the Memorandum and Articles of Association of
the firm, a certificate from the Registrar of companies as well as latest balance sheet duly audited, certified
and signed by a Chartered Accountant has been furnished.
4.5. Check whether list of Partners, Directors, as applicable and their full postal address is given for
verifying the antecedents.
4.6. Check whether photographs of proprietor, all partners, all Directors as applicable are give duly
signed and attested.
4. 7. Check whether full particulars of individuals/firms who are already enlisted in MES and who are
related to the contractor are given.
4.8. Check whether the contractor has given a list of persons working with him in any capacity and who
are near relatives of any Gazetted/Commissioned officer/Junior Engineers.
4. 9. Check whether the Power of Attorney given to individuals/ partners/Directors authorising them to
do all acts for and on behalf of the firm includes powers to refer the dispute to Arbitration as well as to bind
the proprietor/all the partners/Directors etc. to all conditions of contracts including the Arbitration clause.
5.0.
5.1. Before enlisttnent of the firm, check the character and antecedents of proprietor/all partners/all
Directors of the firm through the Police Authorities.
5.2. In case of foreign nationals and non resident Indians verify the character and antecedents through
the appropriate Ministry.
6.0. Mlscellan•Q~~~-
6.1. Check whether the particulars in Enlisttnent form IAFW-2190 are properly completed and signed.
6.2. Check whether all documents are furnished in duplicate in respect of "SS" Class to "D" Class
contractors.
6.3. Check that the firm is not black listed/suspended for business.
7Jf.· Ensure that check list of documents/requirements to be furnished by the applicant is forwarded to the
applicant alongwith the Enlisttnent Form.
'
BOND TO SECURE PERFORMANCE OF AGREEMENT

Know all men by these presents that 1/We............................ of ........................................... (hereinafter referred to
as the obligor(s) am/are held and firmly bound unto the President of India (hereinafter called the Government) in the
sum of............................................. rupees to be paid to the Government, for which payment well and truly to be made.
!/We bind myself/
ourselves
ourselves jointly and
and our successors and
severally & my/our respective heirs. executors. administrators assigns and legal representatives firmly by these presents.
Signed this ............. day of............... Two thousand and .............. .
WHEREAS:
(a) the obligor (s) has/have entered into and/or is/are likely to enter into certain contracts with the
Government, within ............................... Division/Area/Command/India (all such contracts existing as well
as future to be hereinafter collectively referred to as 'the said contracts');
(b) In respect of each of the said contracts the obligor(s) is/are required to make a certain security deposit for the
due performance of that contract;
(c) the obligor(s) has/have made a security deposit of Rs ...................... (Rupees .................................. )
in the form of PO Savings certificates/EO. Bank Accounts/ Bank Fixed Deposits/Approved Securities
endorsed in favour of PCDNCDA ..................... Command/in favour of the President.
and of the market value of Rs ............................................. (Rupees .................................. )
and delivered to .......................... (hereinafter referred to as the 'said security deposit') and
(d) at the request of the obligor(s) the Govt has agreed to accept from him/them a security deposit
of............. rupees in the form of P. 0. Savings Certificates/Approved Securities in respect of all the said
contracts on the condition of the obligor(s) executing a bond on the term and condition appearing
hereinafter which the obligor(s) has/have agreed to do.
Now the condition of the above written bond is such that if the obligor(s) shall well and truly execute the work or
works desctibed in the said contracts and well and truly observe, perform and fulfil all the provisions, stipulations and
conditions contained in the said contracts to the satisfaction of the Garrison Engineer for the time being incharge of the
said work or works and shall fully indemnify and save harmless the Government and its officers from all and every Joss
and damage which shall or may at any time or times hereafter happen to or be sustained by the Government and its
officers through any default of the obligor(s) in carrying out the said contracts or by, from or through the neglect, failure
misconduct disobedience, ommission or insolvency of the obligor(s) or any person or persons nominated, accepted by or
serving under the obligor(s) or by, from, or through the consuming, wasting, embezzling, stealing, misspending, losing,
misapplying or otherwise dishonestly or negligently or through oversight or violence, making away or parting with any
Government property under the control of the obligor(s) or advances made by Government to the obligor(s) or any part
or parts thereof by any person or persons whomsoever, then this the obligation shall be void and of no effect otherwise
the same shall be and remain in full force and virtue.
Provided always and it is hereby further agreed :
(a) that all compensations or other sums of money payable by the obligor(s) to the Government under the terms
of any of the said contract(s) or any other contracts made with the Government in respect of Division/
Area/Command other than ................... Division/Area/Command may be deducted from or paid by the sale of
a sufficient part of the said security deposit or from the interest arising therefrom and in the event of the said
security deposit being reduced by any such deductions or sale as aforesaid the obligor(s) shall within .
Fourteen days thereafter make good the deficiency so caused by malting further deposit in the form of P. 0. 1
Savings Certificates or approved securities endorsed as aforesaid.
(b) that the Government shall not be responsible for any Joss of P. 0. Savings Certificates/Securities or in the case
of securities for any depreciation in their value while in the charge of the Government nor for any loss of
interest thereof.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~----------------
(c) that the said security deposit will be refunded to the obligor(s) on production of a 'No Demand Certificate'
(IAFA-451) provided defects liability periods in respect of the said contracts have expired.
(d) that the obligor(s) shall bear the stamp duty payable on these Presents.
In witness thereof these presents have been signed the day hereinabove mentioned by the obligor(s).
In the presence of :
1. Sd/ ................................................................. .
Address .......................................................... .
2. Sd/ ................................................................. .
Address .......................................................... .
The above bond is accepted by the President of India.
For and on behalf of the President
Sd/- ............................................. .
(Name & Designation) .................. .
Notes-1. In case of a sole proprietor firm the bond should be signed by the proprietor thereof
2. In case of a partnership firm the names and addresses of all the partners constituting the firm should appear in the obligatory parts of
the bond and the bond should be signed by all the partners or by a person (whether a partner or not) holding a power of attorney from all
the partners.
3. In case of a Company whether public or private the bond should be got executed in the light of and in accordance with the Memorandum
and Articles thereof
SPECIMEN ENUSTMENT LETTER
................... Registered
(Office)
No. Date
···························
..........................
: :jo
, I
ENUSTMENT OF CONTRACTORS IN MES
Dear Sir (s),

1. Reference your letter Nos ...................................................... .
2. Enlistment of your firm has been approved by the Registering Authority in MES as
.................... Class Contractor for the following categories of works :
(Categories)
3. Index No .............................. is allotted to you, which should be quoted by you in all future
correspondence. The other details are as per Appendices A & B.
4. Please note that any change in name/style & constitution of the firm and change in partners/directors
would require prior approval of registering authority.
5. Please ensure submission of your audited balance sheet and profit and loss statement regularly as per
your Memorandum and Articles of Association of your firm. (Applicable for Class SS Contractors)
6. Please note that you will employ the required technical staff as per terms and conditions of each
contract agreement.
7. (a) You will keep the Registering Authority/Enlisting Authority informed about the persons working
with you, who are near relatives of any Gazetted/Commissioned officer in MES/Corps of Engineers/Ministry
of Defence. Similarly, you will also intimate the name of the persons who are near relatives of the Proprietor/
Partners/Directors and working as Junior Engineers and/or Gazetted/ Commissioned Officers in the
MES/Corps of Engineers/Ministry of Defence.
Please note that you will not be entitled to issue of tenders in certain areas, where your near relative is
working, after examining the information from the concerned officer. Decision of the Registering Authority
shall be final.
Note : The tenn '~near relative" means wife, husband, parents, children_. brothers, sisters, unci~ first cousin, brothers/sisters in law, sons/
daughters in law, father/mother in law.
(b) Any breach of above condition by you shall render your firm liable to be removed from the approved
list of contractors of the department.
8. Please note that if you fail to secure any work in MES/any other Government Department within a
period of three consecutive years, your firm will be liable for removal from the list of approved contractors.
9. Please note that MES authority has the right as he may decide, not to issue tender form in any
particular case and also to suspend, remove or black list your name from the MES list of contractors in the
I
event of submission of non-bonafide tenders or for technical or other delinquency in regard to which the
decision of the appropriate MES Authority shall be final and conclusive. I
I
10. Please note that your enlistment is valid upto 31 Dec ......................... and the application for
renewal would be required to be submitted by 31 May (SS, S & A Class)/30 June (B, C & D Class)
Yours faithfully,
AEE (QS & C)/EE (QS & C)/SE (QS & C)/Jt DG (Contracts)
Ends : Appendices 'Pl. & 'B'
Copy to:
PCDA (Registered and insured for Rs 100/-)
Other Formations as applicable
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!:
:i
: PRE-CONTRACT STAGE-APPENDICES
DETAILS OF ENLISTMENT OF CONTRACTORS
AEE (QS & C)/EE (QS & C)/SE (QS & C)! Jt DG (Contracts)
Specimen Signatures & Photographs of Proprietor/Partners/Directors
1. Specimen signatures
2. Photographs attested by AEE (QS & C)/EE (QS & C)/SE (QS & C)/Jt DG (Contracts)
AEE (QS & C)/EE (QS & C)/SE (QS & C)/Jt DG (Contracts)
I
J
248 PART-I: PRE-CONTRACT S1'AGE-APPENDICilS
--
APPUCATION FOR RENEWAl. AS CONTRACTOR FOR
THE NEXT CYCLIC PERIOD 01 JAN ••••. TO 31 DEC •.•••
~T
"#~
1. I/We .................................. presently enlisted with Index No .................................. am/are desirous
of being re-enlisted on the MES list of contractor for the ...................................... Area/Command/ E-in-C's
Branch. Following particulars are submitted :
(a) List of works executed and completed and/or in hand during the preceding 5 years at Annexure-I.
(b) Affidavit for minimum reserve (immovable and movable property) alongwith valuation report
from registered valuer containing requisite endorsements.
(c) Affidavit that all other affidavits submitted earlier hold good. (If there is change, he will submit
fresh affidavit)
2. I!We hereby agree with and reaffirm the contents at serial No. 9 to 14 of our application form for
enlistment, IAFW-2190.
3. I!We understand and agree that the Registering Authority has the right as he may decide, not to
re-enlist me/us and in case, I/We are not satisfied with this decision, we may apply, to the next higher
Engineer Authority; whose decision shall be final & binding.
Ends : Sheets
Signature of Contractor
1. In case no work was executed in the MES in the last 5 years, you may show details of works carried
out in other Govt. Deptt. or Public Sector Undertakings/AWHO/AliJWHO/DGsNP in the last 5 years.
2. In case no work was carried out in MES or other Government Deptt/Public Sector
Undertakings/AWHO/ ANWHO/ DGsNP during the last 5 years, please submit details of tenders of MES in
which you have actively participated & have been in first three lowest but were not able to secure any
contract.
3. In case any work has been carried out in private sector, details thereof shall also be furnished.
SPECIMEN LETTERS FOR REMOVAL OF CONTRACTOR

Case (i) : Where contractor himself desires that his name be removed.
To
Removal from the Approved List

Dear Sir (s]
1. As desired by you, your name is removed from the approved list of Contractors of E-in-C's
Branch/Command/ Area.
2. Action to release your security deposit/standing security bond amount is in hand.
Copy to : All concerned

Yours faithfully
Case (il) : For any reason mentioned in the standardised code.
To
...................................................................
Removal from the Approved List

Dear Sir (s)
Your name is hereby removed from the list of approved contractors of E-in-C's Branch/Command/Area.
Copy to : All concerned

Yours faithfully
PART-I : PRE-CONTRACT STAGE·APPENDICES 251
GUARANTEE BOND
(to be used by approved Scheduled Banks)
In consideration of the President of India (hereinafter called "the Government") having agreed to exempt
...................................... (hereinafter called "tc'te said Contractor(s)") from the demand, under the terms and conditions
of an Agreement dated ....................................... made between ...................................... and .................................... ..
for ...................................... (hereinafter called "th~ said Agreement"), of security deposit for the due fulfilment by the
said Contractor(s) of the terms and conditions cont;!ined in the said Agreement, on production of a Bank Guarantee for
Rs ........................................... (Rupees .... ,.................................. only), we, ......................................... Bank Ltd.
(hereinafter referred to as "the Bank'') do hereby undertake to pay to the Government an amount not exteeding Rs
................................... against any loss or damage caused to or suffered or would be caused to or suffered by the
Government by reason of any breach by the said Contractor(s) of any of the terms or conditions contained in the said
Agreement.
2. We ................................. Bank Ltd. do hereby undertake to pay the amounts due and payable under this
guarantee without any demur, merely on a demand from the Government stating that the amount claimed is due by way
of loss or damage caused to or would be caused to or suffered by the Government by reason of any breach by the said
Contractor(s) of any of the te1ms or conditions contained in the said Agreement or by reason of the contractor's (s)
failure to perform the said Agreement. Any sueh demand made on the Bank shall be conclusive as regards the amount
due and payable by the Bank under this guarantee. However, our liability under this guarantee shall be restricted to an
amount not exceeding Rs .................................. .
3. We ............................................. Bank Ltd. further agree that guarantee herein contained shall remain in full
force and effect during the period that would be taken for the performance of the said Agreement and that it shall
continue to be enforceable till all the dues of the Government under or by virtue of the said Agreement have been fully
paid and its claims satisfied or discharged or till ....................................... (Office/ Department), Ministry of
............................................. certifies that the terms and conditions of the said Agreement have been fully and properly
carried out by the said Contractor(s) and accordingly discharges the guarantee, Unless a demand or claim under this
guarantee is made to us in writing on or before the ............................. ,........... we shall be discharged from all liability
under this guarantee thereafter.
4. We ...................................... Bank Ltd. further agree with the Government that the Government shall have the
fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the
terms and conditions of the said Agreement or to extend time of performance by the said Contractor(s) from time to
time or to postpone for any time or from time to time any of the powers exercisable by the Government against the said
Contractor (s) and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not
be relieved from our liability by reason of any such variation, or extension being granted to the said Contractor(s) or for
any forbearance, act or omission on the part of the Government or any indulgence by the Government to the said
Contractor (s) or any such matter or thing whatsoever which under the law relating to sureties would but for this
provision have effect of so relieving us.
5. We ...................................... Bank Ltd. lastly undertake not to revoke this guarantee during its currency except
with the previous consent of the Government in writing.
Dated the ................... day of ................... 20

for ................... Bank Ltd.
..
GUARANTEE BOND
(to be used by Unapproved Scheduled Banks)
In consideration of the President of India having at our request agreed to accept this,
............................................... Bank Ltd., ·····································'"·· Guarantee in lieu of cash deposit required from
Messer~ ........................................ for the due fulfilment by them of the terms and conditions of the Agreement dated
.. . .. . .. . ... .. .. .... .. . .. .... . .. .... .. .. made between ......... .... .. .. . .. . .. .. .. .. ... .... .. . and ... . .. ............. ... .... .. ...... .. ... .. . for
................ ......................... (hereinafter called "the said agreement") .......................................... during the period
commencing from ......................................... and ending on ............................................. or the extended period if any.
We ...................................... Bank Ltd. do hereby undertake to pay to the President of India (hereinafter called "the
Government'') an amount not exceeding Rs ..................................................................... (Rupees
...................................... ) against any loss or damage caused to or suffered or would be caused to or suffered by the
Government by reason of any breach by the said ...................................... of any terms or conditions of the said
Agreement.
2. We ...................................... Bank Ltd. do hereby undertake to pay the amounts due and payable under this
Guarantee without any demur merely on a demand from the Government stating that the amount claimed is due by way
of loss or damage caused to or suffered or would be caused to or suffered by the Government by reason of any breach by
the said ...................................... of any of the terms and conditions contained in the said Agreement or by reason of the
said ...................................... failure to perform the said Agreement. Any such demand made on the bank shall be
conclusive as regards the amount due any payable by us under this Guarantee. However, our liability under this
Guarantee shall be restricted to an amount not exceeding Rs ...................................... (Rupees ................................ ). We
...................................... Bank Ltd. authorise the Government to recover the same directly from the Reserve Bank of
India from our deposits of cash and/or securities with the said Bank. The Reserve Bank of India have at the request of
the ...................................... Bank Ltd., agreed to pay to the Government on demand and from out of the said deposits
any sum which may become payable to the Government under this guarantee for payment.
3. We ...................................... Bank Ltd. further agree that the guarantee herein contained shall remain in full
force and effect up to and inclusive of the ...................................... the date referred to above, or the expiry of the
extended period if any and that it shall continue to be enforceable till all the dues of the Government under or by virtue
of the said Agreement have been fully paid and its claims satisfied or discharged or till ...................................... (Office/
Department), Ministry of ...................................... certifies that the terms and conditions of said Agreement have been
fully and properly carried out by the said ............................................ and accordingly discharges the guarantee unless a
demand or claim under this guarantee is made on us in writing on or before the ............................. we shall be
discharged from all liability under this guarantee thereafter.
4. We ...................................... Bank Ltd. further agree with the Government that the Government shall have the
fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the
terms and conditions of the said Agreement or to extend the time of performance by the said .................................... ..
from time to time or to postpone for any time or from time to time any of the powers exercisable by the Government
against the said ...................................... and to forbear or enforce any of the terms and conditions relating to the said
Agreement and we shall not be relieved from our liability by reason of any variation, or extension being granted to the
said ...................................... or for any forbearance, act or omission on the part of the Government or any indulgence
by the Government to the said .................................... or by any such matter or thing whatsoever which under the
law relating to sureties would but for this provision have effect of so relieving us.
5. We ...................................... Bank Ltd., lastly undertake not to revoke this Guarantee during its currency except
with the previous consent of the Government in writing.
Dated the ................... day of ................... 20

for ................... Bank Ltd.
EXTENSION DEED OF BGB

STAMP PAPER
To
Extension of validity date of our Bank Guarantee Bond No. ........................ (In lieu of Security
Deposit/retention money) dated ..................... for against CA No ..................... Contractor ..................... .
We ................................. extend the validity period of above mentioned Bank Guarantee Bond which
was due to expire on ........................ upto ...................... ..
All other terms and conditions of the Bond shall remain unchanged.
This will form part of the original Bank Guarantee.
Manager
The above Guarantee Bond is accepted by the President of India.
(P..ANK)
( ........................... )
For and on behalf of President of India.
Dated:
-I
254
ENCASHMENT LETTER OF BGB

PART-I : PRE-CONTRACT STAGE-APPEND!Cl!S
--
To
Address of Bank
Subject : Bank Guarantee Bond No ................ dated .................. for Rs ....................... .
Dear Sirs,
WHEREAS you have furnished a Bank Guarantee Bond bearing No. ........................ dated
........................ for Rs .............................. (Rupees ........................ only) in lieu of Security Deposit against
Contract Agreement No. .............. ...... ....... made between the President of India and Shri/S'Shri
........................ (Contractor(s*)), which is valid till ........................ (A)
AND WHEREAS it is expressly provided in the afore-said Guarantee Bond that you undertake to pay the
amount due and payable under the Guarantee without any demur, merely on a demand from the
Government stating that the amount claimed is due by way of loss or damage caused to or suffered or would
be caused to or suffered by the Government by reason of any breach by the Contractor(s*) of any of the
terms and conditions contained in the said Contract Agreement or by the reason of the Contractor's(s*)
failure to perform the said Agreement;
*AND WHEREAS there has been a breach by the Contractor(s*) of the terms and conditions of the
Agreement;
*AND WHEREAS the Contractor(s*) has*/have failed to perform the Agreement,
I, on behalf of the President of India, hereby serve you with this notice of demand against the aforesaid
Bank Guarantee Bond for the sum of Rs ......................... (B) (Rupees ........................ only).
*on account of loss/damage caused to or suffered by the Government on account of loss/ damage which
would be caused to or suffered by the Government.
It is requested that the aforesaid sum as demanded be paid immediately.
The amount may be remitted in the form of .............. (C) in favour of ...................... ..
Your faithfully,
Chief Engineer/CWE/GE
(for and on behalf of the President of India)
'-I : PRE-CONTRACT STAGE-APPENDICES 255
Copy to:
S' Shri!Shri
N.O.O.
PCDNCDA
CWE
GE
AO/MO
Notes : (for guidance of Accepting Officers)
1. In the blank space 'Pl. fill up the date upto which the Bank Guarantee Bond is valid as per the Bond.
2. In the blank space 'B' indicate the amount demanded (This should be restricted to the amount of
/damage caused to/suffered by the Government or/and would be caused to or suffered by the
ernment and in any case should not be more than the value of the Ba~ Guarantee Bond amount).
3. In the blank space 'C' indicate the form in which the amount is desired to be remitted.
4. *Delete as necessary.
1
--
NOTICE INVITING TENDERS
Chief Engineer/Commander Works Engineers/ Garrison Engineer ........ .................. on
behalf of President of India invites applications from eligible enlisted Contractors of MES and Contractors
working with other Govt Departments meeting eligibility criteria for selection of Contractors for issue of
tender of under mentioned work :
Name of Work Provn of .......................................... at ............. .
Estimated Cost of Work Rs .................. lakh
Com letion Period .............. months
Amount of Earnest Money for Contractors Rs .............. in the shape of Call Deposit Receipt from any Scheduled Bank. BGB not
not enlisted with MES. acce table.
Cost of Tender Rs .............. in the shape of DD/Bankers Cheque from any Scheduled Bank in favour of
~---------------------------+G~M~n~·s~on"'Engmee~r~··~··~···~··~··~···~--------------------------------------~
Eligibility Criteria :
(a) ForMES Enlisted Contractors Class : ' ', Gate o .'
(b) For other Contractors Meeting enlistment criteria of MES with regard to having satisfactorily completed
requisite value works, annual turn over, working capital, fixed assets, no recovery
outstandin in an Govt De tt, securi clearance etc.
Date of issue of Tender On or after
Date of Receipt of Tender
Notes : 1. The Contractor enlisted in one class below the ''Eligibility Criteria" given above may also apply. Accepting Officer
may consider such applications in the event of inadequate response from eligible class contractors.
2. Application not accompanied by requisite value DD/Bankers Cheque towards Cost of Tender shall not be considered for
issue of tender:
3. Contractors not enlisted with MES will be required to enclose necessary documents to prove their eligibility as given above
including Affidavit for no recovery outstanding.
4. In case of rejection of application for issue of tender, the applicant shall be refunded the cost of tender. Contractor may
appeal to next higher Engineer Authority, i.e. CE Comd/Zone/CWE for rejection of his application for issue of tender whose
decision shall be final and binding. However Contractor shall not be entitled to any compensation whatsoever for non issue of
tender.
5. (A) In case of remote and diffiw.lt area :
The Contractor enlisted upto two class below the eligible class may also apply. Application from one class below eligible class
applicants may be considered in the event of inadequate response from the applicants of eligible class. Application from two
class below eligible class applicants may also be considered in the event of inadequate response from the applicants of both
eligible class and one class below eligible class.
(B) In case of area not classified as remote and difficult :
The Contractor enlisted up to one class below eligible class may also apply. Application from one class below eligible class
applicants may be considered in the event of inadequate response from the applicants of eligible class.
6. The above details are also available on MES website: www.mes.gov.in; NIC website www.eprocure.gov.in/CPPP and
Indian Trade Journal. Full Notice of Tender IAFW-2162 & Enlistment Criteria is available in all Offices of MES and also on
MES website.
f' '
•" APPENDIX . ~.-~

REGISTER OF BANK DRAFTS
Name of work*: .......................................................... .
Date of issue of tender : ............................................... .
'
•
..
* Separate sheets to be maintained for each work/tender

258 PART-I : PRE-CONTRACT STAGE-APPENDIC:I!S
., APPENDIXl.l
SELECTION OF CONTRACTORS FOR ISSUE OF TENDERS
Name of work ·········································:································································································
CA No ........................................... Last date of receipt of application ...................•..................................
Estimated cost at market rateRs ................................... Date of issue of tenders ................. ,................. . 1.
Time allowed for completion ...................................... Date of receipt of tenders .... ,....... ,....................... . 2.
Eligible class and categories .................................. Cost of tender documents ........................................ . 3.
4.
5.
'
'
I'
'
. pART-I : PRE-CONTRACT STAGE-APPENDICES 259
REPORT ON ISSUE/NON-ISSUE OF TENDERS
Description of work .................................................................... .

2. Estimated value of work at market rate Rs ................................. .
3. (a) Date of issue of tenders ........................................................ .
(b) Date of receipt of tender··············'·········································
4. Eligible class and category of works·······'····································
Details of tenders issued :
Signature of CE/CWE/GE
PART-I : PRE-CONTRACT STAGE-APPENDICES
260
" APPENDIX 3.5

-
RECEIVING AND OPENING OF TENDERS
]._l!_eceip~_~f-~~J!~e!S.
1.1 It is desirable to fix the time of receipt of tenders taking into consideration the normal time of
delivery of registered post at the station and at the same time ensuring that adequate time is available for
opening and scheduling of the tenders received.
1.2 The Administrative Officer/Office Superintendent shall examine the tender box to ensure that it is
suitable in all respects for receiving tenders (slot with flap shutter, opening, locking arrangements etc.),
indicate on the box the name of the work(s) for which tenders have been invited and the due date and time
fixed for receipt of tenders, lock up the tender box, seal the lock and keep the box in a safe place accessible to
tenderers for depositing their tenders. The keys of the tender-box shall thereafter be held by the Accepting
Officer or by any other gazetted officer authorised by him. The Administrative Officer/Office Superintendent
shall, through frequent inspections, ensure that the lock of the tender box is not tampered with.
1.3.1 Tenders received by post shall be signed by the Administrative Officer/Office Superintendent on
the envelope stating the date and time of receipt and thereafter deposited in the tender box.
1.3.2. If a tender is accompanied by bulky drawings in a separate envelope/packet and if the latter
cannot go into the tender box the Administrative Officer/Office Superintendent shall endorse and sign on the
envelope containing the tender which is deposited in the tender box, as under :
'One envelope/packet said to contain drawings received by me for delivery to Director (C)/Jt. Dir
(C)/Dy. Dir (C)/ Asst. Dir (C)/ AE (QS & C)/GE.'
1.3.3. The endorsement may be modified to accord with actual facts. The Administrative Officer/Office
Superintendent shall deliver the envelope/packet containing drawings to the Director (C)/Jt. Dir (C)/Dy. Dir
(C)! Asst. Dir (C)/ AE (QS & C)/GE concerned as soon as possible. He will ensure that the envelope/packet
containing drawings is so marked that it can be linked with the tender submitted by the tenderer.
1.4. If for any reason, such as for insertion of bulky tenders (whether received by post or brought by
hand) it is necessary to open rhe tender box before the appointed time for receipt of tenders, this should be
done only by the Accepting Officer or by the gazetted officer authorised by him for holding the key of tender
box and in the r:-·esence of another gazetted officer. An entry to th.is effect shall also be made in the register of
tenders under the signatures of both officers.
1.5. If tender is brought personally by a tenderer or by his representative he should be directed to
deposit the same himself in the tender box.
1.6. Sufficiently in advance of the date and time fixed for receipt of tenders, the Accepting Officer shall
detail two officers (here-in-after referred to as the 'Tender Opening Officers') to open and schedule tenders
and shall inform them and the Administrative Officer/Office Superintendent, of the date and time fixed for
receipt of tenders.
1. 7. Receipt of tenders for more than one work on the same day, will, as far as possible, be avoided.
When this cannot be avoided, it is ~dvisable to appoint the same officers for opening of all tenders due on the
same day.
1.8. Immediately on expiry of the time fixed for receipt of tenders, the Administrative Officer/Office
Superintendent shall close the slot in the tender box. After locking the flap, the lock shall be sealed and the
keys of both the tender box and flap shall be handed over to the Accepting Officer or to the gazetted officer
authorised by him for the purpose.
1.9. The Administrative Officer/Office Superintendent shall render a certificate to the Tender Opening
Officers to the effect that all tenders/received by post, prior to the time fixed for receipt of tenders have been
lodged in the tender box.
,I
2.0.
- - -Opening
--- andScbeliuUngcfT~Ull~r$'
_- "'"··-·---
2.1. On the date fixed for opening of tenders, but prior to the time fixed for receiving them, the Director
(C)/Jt. Dir (C)/Dy. Dir (C)/Asst. Dir (C)/AE (QS & C)/GE concerned shall hand over to the Tender Opening
Officers, the form of comparative srateme.i'1t of tenders, in triplicate (with the requisite details duly
completed), the register of tenders for recording names of renderers present at the time of opening of
tenders and a copy of the instructions on 'Receiving and Opening of Tenders'. If any special points with
I
respect to the particular tenders are to be brought to the notice of the Tender Opening Officers a 'Note'
covering the said points shall also be made out by the Director (C)/Jt. Dir (C)/Dy. Dir (C)/Asst. Dir
(C)/DCWE/ ACWE (C) AE (QS & C)/GE and handed over to the Tender Opening Officers.
2.2 The Tender Openirtg Officers shall make themselves thoroughly conversant with the procedure for
opening and scheduling of tenders. At the time appointed for opening of tenders, the Tender Opening
Officers, having obtairted the key of the tender box from the Accepting Officer or the gazetted officer
authorised by him for the purpose, shall open the tender box and extract the tenders. Before opening the
tender box, the Tender Opening Officers shall verify that seals put on the locks are intact. If not, the fact must
be immediately brought to the personal notice of the Accepting Officer for his instructions.
2.3 Tenders shall be opened at the time stipulated therefor, in the presence of such of the renderers who
have submitted priced tenders or their representatives who are present. The names of the renderers and/or
their representatives who are present at the time of opening and their signatures shall be got recorded by the
Tender Opening Officers in the register of tenders. Representatives signing on behalf of renderers will be
asked to indicate the name of the renderers, whom they represent.
2.4 It shall be made clear by the Tender Opening Officers to the renderers or their representatives
present at the time of opening of tenders, that the amounts quoted by the renderers as announced are subject
to check by the Government in accordance with the General Conditions of Contracts.
2.5 The Tender Opening Officers shall scrutinise the tenders to ascertain whether they contain any
stipulations or conditions made by the tenderer. If there is any forwarding letter attached to any tender, the
same shall be initialled and dated by both the Tender Opening Officers and a mention regarding the existence
of such a forwarding letter alongwith rebate, if any, offered by the contractor in the comparative statement of
tenders.
2.6 The Tender Opening Officers shall read out for information of the renderers or their representatives
present, the amounts and rates quoted in the various tenders as explained below :
2.6.1 Lump sum contracts based on Bills of Quantities (lAFW- 2159}.
Lump sum amount quoted against each of the Bills of Quantities as well as the total Lump Sum quoted
for the work as a whole.
2.6.2. Lump sum contracts based on pre-priced Schedule W (IAFW-2159).
The Lump sum amount quoted against each part of Schedule 'N. as well as the total Lump Sum quoted
for the work as a whole.
2.6.3 Lump sum contracts based on Drawings and Specifications (IAFW-2159).
The Unit rates quoted (in words) against each item of Schedule 'N. as well as the total Lump Sum quoted
for the work as a whole. ·
2.6.4 Item Rate Contracts, Supply of Furniture contracts etc. (IAFsW-1779-A, 1815 (R)}
The Unit rates quoted (in words) against each item of Sctedule 'N. and the total amount quoted for the
work as a whole.
2.6.5 Term contracts, Percentage Rate contracts, Handling and Conveyance of store
contracts (IAFsW 1821, 1779, 2320)
The percentage quoted in words.
262 PART-I: PRE-CONTRACT STAG" '1>PENDICts
[Note--(1) Applicable to paras 2.6.1 to 2.6.3 : If a tender is based on a combination of any two or more oft~._ ''Des cited
in paras 2. 6.1, 2.6.2 and 2. 6.3, the principle as explained in the said paras shall be followed for the corresponding pu ...
(2) If against any item(s), the tenderer has failed to quote rates in words (having quoted rates onry in figures) the rate
quoted in figures shall be read out-See also para 2.11.2 hereinafter,]
. 2.7 If a revision or modification in offer in a sealed/properly closed cover has been found deposited in
the tender box, the Tender Opening Officers shall take the revision/modification in offer into consideration
while scheduling the tenders and shall make a mention of the revision/modification in the Comparative
Statement of Tenders. Any revision/modification on open letter found deposited in tender box shall not be
taken into account.
2.8. In case any tenderer has failed to 'Total' the amount of his tender, the 'Total' shall be cast by the
Tender Opening Officers and the fact stated in the last column of the comparative statement of tenders and
the 'Total' inserted therein and initialled. If the rate for any item in Schedule '!\ is missing, the Tender
Opening Officers shall announce the fact and shall also insert a remark to the effect (viz. "No rate quoted") in
the relevant column in Schedule '!\. The remarks shall be initialled, and dated by the Tender Opening
Officers.
2.9 At the time of scheduling of tenders, the Tender Opening Officers shall initial and date at the
following places in respect of every tender :
2.9.1 On every envelope in which the tender is received.
2. 9.2 On the right hand top corner of the first page of the tender documents.
2.9.3 On each page of the tenderer's tender-forwarding letter, if any.
2.9.4 On each page containing the tenderer's rates.
2.9.5 On each page of 'General Summary.'
2.9.6 (i) Corrections, (ii) over-writings and (iii) writings in different hand writing or with different ink,
which are conspicuous and if appearing at isolated places.
(Note-(1) The provisions of sub para 2.9.6 shall apply to (i) unit rates (in figures as well as in words) quoted by the
tenderer, (ii) percentage quoted by the tenderer vide para 2. 6.5 and (iii) entries made by the tenderer in the 'General
Summary' pages.
(2) Rates/percentages/entries in the 'General Summary' and unit rates in Schedule 2\' which stand corrected or over-written
shall be re-written in words by either of the two Tender Opening Officers to correspond to the corrected/over-written figures
and initialled and dated by both the Tender Opening Officers.)
2.9.7. Any condition/stipulation/note of any kind endorsed by tenderer in Schedule W
and General Summary, other than provided for in the tender. Similarly any reduction/
addition/extta in unit rate, amount percentage or total in Schedule '!\ and General Summary. All such
stipulation/condition/ note/reduction/addition/rebate/extta shall read out and shall be reflected in the CST,
these shall be specifically brought to the notice of Director (C)/Jt. Dir (C)/Dy. Dir (C)/Asst. Dir
(C)/DCWE/ACWE (C) AE (QS & C)/GE concerned at the time of handing over document.
2.10 The serial number of the tenderer as shown on the comparative statement of tenders shall be
marked by the Tender Opening Officers alongside their initials on the first page of the tender documents, on
each page of Schedule 'Pl. containing the tenderer's rates, tenderer's tender-forwarding letter, if any,
mentioned in para 2.5 above and also on the envelope in which the tenders are received.
2.11.1 The Tender Opening Officers shall scrutinise the various unit rates quoted by the renderers in
Schedule '!\ both in figures and in words to ensure that they tally. If any discrepancy is noticed the fact shall
be recorded on the relevant page of Schedule '!\ against the corresponding item and initialled and dated by
the Tender Opening Officers. The rates in written in words shall be rewritten by tender opening officers. An
entry to this effect shall also be made in the register of tenders under the signatures of the Tender Opening
Officers.
2.11.2 At places in Schedule'!\ where rate(s) is/are quoted by the tenderers only in figures and not in
words, the Tender Opening Officers shall announce the fact and the corresponding rate(s) in words shall be
inserted by either of the two Tender Opening Officers under the dated initials by both of them.
pART-1 : PRE-CONTRACT STAGE~APPENDICES 263
2.12 Extension and totalling need not be checked by the Tender Opening Officers.
2.13.1 All tenders shall be scheduled in the comparative statement of tenders, conditional tenders being
described as such in the last column of the Comparative Statement of Tenders.
2.13.2 If a blank tender has been received, the words, 'Blank Tender' shall be written on the first page of
the tender documents and initialled by the Tender Opening Officers. Similarly, the words 'Blank Tender' shall
be written in the relevant column of the comparative statement of tenders against the name of tenderer
concerned. If no tender is received, the words 'No tender' shall be written in the comparative statement of
tenders against the name of the tenderer concerned to whom a tender was issued.
2.13.3 For the purpose of arriving at the number of tenders, to be filled in the certificate at the bottom
of the comparative statement of tenders, a blank tender shall reckon as a tender received.
2.14 The comparative statement of tenders shall be completed by the Tender Opening Officers, in
triplicate, including signing of the certificate at the bottom of the comparative statement of tenders. The
Certificate in the comparative statement of tenders shall state the facts of each case correctly and the
certificate as printed on the form may be amended, as necessary, to accord with the facts.
2.15 After complying with the aforesaid instructions, all the documents received (including envelopes)
shall be handed over by the Tender Opening Officers to the Director (C)!Jt. Dir (C)/Dy. Dir (C)/Asst. Dir (C)/
AE (QS & C)/GE concerned, along with the Register of Tenders. '
2.16 The Tender Opening Officers shall also endorse a certificate in register of tenders on the following
lines :
"It is certified that the Instructions, on Receiving and Opening of Tenders have been complied with by
us'.
(i) ............................. ~~.~:.::. .............. 1. Tender Opening Officer.

(Date)
(Sd/-)
(ii) ..................................................... 2. Tender Opening Officer.
(Date)
3.The Director (C)/Jt. Dir (C)/Dy. Dir (C)/Asst. Dir (C)/ AE (QS & C)/GE concerned shall immediately
on receiving the documents referred to in para 2.15 scrutinise the documents in the presence of the Tender
Opening Officers to see that they have complied with the requirements as mentioned in their certificate given
in para 2.16. All conditions/stiuplation/note/reduction/addition/rebate/extra inserted by the tenderer shall
be initialled by him in the presence of the opening officers. The Director (C)!Jt. Dir (C)/Dy. Dir (C)/Asst. Dir
(C)!DCWE.IACWE (C) AE (QS & C)/GE concerned shall thereafter endorse a certificate in the register of
tenders that he has verified the documents and found them to be in order.
[Note-The register of tenders being an important document, shall be kept in safe custody.]
4. Quoted Tenders shall be treated as 'SECRET documents till the issue of acceptance letter.
5. If for any exceptional reason (such cases should be very rare) after having complied with the
lproviisicons of para 1.8, there is not enough time to open the tenders and schedule them in the comparative
lsta,terneJlt of tenders, the tender box, instead of being opened at the appointed time shall be kept under safe
!cu,swuy. The fact that tenders received were not opened on the appointed date/time shall be brought to the
of the Accepting Officer and his orders (stating the facts as well as the revised date/time for opening of
:feJ~Q(!rSJ obtained and recorded in the register of tenders. Similarly, if due to unforeseen circumstances the
fixed for opening of tenders is declared as a holiday at short notice, action as per the provisions of para
shall be taken and the tender box kept in safe custody. The fact that tenders received were not opened on
appointed date/time shall be brought to the notice of the Accepting Officer and his orders (stating the
as well as the revised date/time for opening of tenders) obtained and recorded in the Register of
SCRUTINY OF TENDERS
1. While receiving the tender documents from the two officers who have opened and scheduled them,
check whether the comparative statement of tender has been completed correctly by them.
2. Check whether the tenderers have submitted all the tender documents and drawings sent to tl1em as
also the amendments, if any, issued subsequently.
3. Check that the tenders have been signed by the accredited agent holding the Power of Attorney and
that a copy of the Power of Attorney has been attached. If copies of the Power of Attorney of the accredited
agents are not already available with the Accepting Officer, the forwarding letter to tender documents shall
mention that the tender documents shall be accompanied by an attested copy of the Power of Attorney.
4. Check that the rates have been quoted by contractors in figures and in words.
5. Check that any corrections in the rates/amounts are initialled by the accredited agent.
6. Carry out arithmetical check of tenders to ascertain the correct amount of each tender. If any
discrepancies or errors are found, these should be dealt with in accordance with the provisions of Conditions
6-A of General Conditions of Contracts (IAFW 2249) (or similar provisions in other contract forms). The
letter of acceptance shall always explain the discrepancies/errors adjusted in accordance with the relevant
provision.
7. If any freak rates are noticed in the scrutiny of the lowest tender, these should be dealt with in
accordance with the latest instructions issued by E-in-C. Remember also that any upward revision of freak
rates is not permissible without prior sanction of Government. Tabulating the prices quoted by the lowest
three tenderers will facilitate detecting freak rates and other similar discrepancies at a glance.
8. If the tenders received are too high and a collusion or a ring is suspected, it is necessary to reinvite
tenders by adding a few selected outside contractors.
9. Ensure that a proper analysis of the tender is made to ensure that the tender is reasonable.
10. Remember that normally special conditions, if any, attached to the tender, are not to be entertained.
In case of specialist jobs, it may, however, not be in the interest of the State to treat such tenders as non-bona
fide as resorting to retendering may not only entail delay but prices may go up. If some of the stipulations
made by the lowest tenderer are worth considering, ensure that equal opportunity is given to other tenderers
also to revise their offer on the same basis.
=======================-=====================
.. APPEN"'j~Xa~~:'
ANALYSIS OF LUMP SUM TENDH<S BASED ON SSR
1. The acceptance' of a tender is a matter for judgement and not merely the selection of the lowest
tender without examining whether or not the quotation is reasonable.
2. Before considering the question of acceptance of tender it is essential that a thorough scrutiny and
analysis of the tender be carried out with a view to ascertaining the reasonableness of the tender and the
basis of tendering. The tender selected for scrutiny should be checked for completeness in all respects, which,
inter alia, should include quoted rates where required, completing extensions; carrying on totals, completing
signatures, wimessing etc. Each one of the rates quoted shall be examined to verify its reasonableness with
reference to current rates.
3. In lump sum contracts detailed working out of quantities and pricing of the items included in the
tender should be carried out and estimates at par on MES Schedule should be prepared in all cases
irrespective of the type of lump sum contract i.e. whether based on drawings and specifications or pre-priced
Schedule W.
4. An accurate estimate of stores to be issued under Schedule 'B' should be made as this has a vital
bearing on the reasonableness of quotations.
5. Before the date of receipt of tenders, the Accepting Officer should get prepared a fairly accurate
estimate of the cost of work included in the tender documents on the basis of the following :
(a) Lump sum prices of the items at the applicable Schedule to be worked out as stated in para 3
above.
(b) The actual cost of the work to be done by the contractor should be assessed on the basis of current
market rates for materials and labour and cost of Govt stores at Schedule 'B' rates and, to this, a
reasonable sum to cover overheads and profit could be added.
(c) By relating (b) to (a) above, the percentage to be added to the prices at MES Schedule rates can be
ascertained and the reasonableness of the percentage tendered determined.
6. The following information in preparing estimates will be useful :
(a) The relationship between materials and labour in the make up of the prices in MES Schedule must
be ascertained depending upon the nature of the work. For normal building works this can be
taken as 65% to 70% for materials and 35% to 30% for labour.
(b) The extent and value of the Govt. stores to be issued to the contractor under Schedule 'B'. The total
value of the Govt. stores at Schedule 'B' rates is one of the main factors that influences the
percentage to be quoted by contractors to arrive at the lump sum or to ascertain the
reasonableness of the lump sum prices quoted by contractors in the case of contracts based on
drawings and specifications.
(c) It is clear that greater the value of Govt. Stores issued under Schedule 'B' the lower would be the
percentage quoted by a contractor. In other words the reasonableness of contractor's percentage
should be assessed taking into consideration the extent of Govt Stores issued under Schedule 'B'.
(d) A Schedule of stores required to be supplied by the contractor should also be prepared. The
Accepting Officer should have a fairly accurate information in his office regarding cost of
contractor's materials and labour at current market rates and ·this information should be
maintained up-to-date.
(e) On the basis of the above information the extra cost of the contractor's materials and labour.over
and above that worked out at par on the basis of MES Schedule should be arrived at.
7. With the information available as above a fairly accurate estimate of the work included in the tender
documents can be prepared by the time the tenders are due to be received. An illustration of the above
suggestion is given below :
266 PART-I : PRE-CONTRACT STAGE-APPENDIC!ls
Consider two contracts having exactly the same items of work priced at Rs. 1 lakhs net at par on MES
Schedule rates, to be executed under the same conditions except that, in the case of contract No. 1 the cost of
stores to be issued under Schedule 'B' works out to 20% of the net value assessed at par with MES Schedule
and that, in the case of Contract No. 2 it works to 40%. The percentage over the MES Schedule may be
worked out as under, assuming that the total price comprises 70% for materials and 30% for labour.
(c) 37,500 30,000 37,500
(d) (i) Add for overhead and profit on 2,000 4,000

(a) above@ 10%.
(ii) Add for overhead and profit 17,500 13,125
items {b) and (c) above @ 17 i
(10% profit + 5% overheads +
8. In addition to the above, the Accepting Officer may add a suitable percentage to cover the sales
tax/service tax on works contracts and like and overhead charges on account of special factors as are
applicable to the work in restricted areas, militancy affected areas, emergency works and works involving
necessity of inlportation of specialist labour and the like to arrive at actual cost to the contractor under col. 2
&4.
9. When the tenders have been received and scrutinised the figures quoted by the contractor whose
tender has been selected for consideration for acceptance should be compared with the estimate prepared as
indicated above and the tender accepted provided it is otherwise in order in all other respects.
,. APPENDfX3,8;
RULES FOR DEAUNG WITH "FREAK RATES"
1. The procedure for dealing with tenders in which Freak Rates are noticed during scrutiny at
pre-acceptance stage is detailed in the following paragraphs :
(a) On receipt of tenders, all errors which can be corrected in accordance with conditions of contract
shall be so corrected legibly and initialled.
(b) After all tenders have been so corrected, the lowest bonafide and acceptable tender shall be
examined to see if there are any Freak Rates in it.
(c) Any upward revision of Freak Rates shall not be allowed in any case.
(d) In respect of Freak Rates requiring downward revision, such communication will be addressed
only to the tenderer whose tender has been examined, as stated in para (b) above.
(e) The contractor shall be informed that the lump sum amount quoted by him shall be corrected on
the basis of the revised rates offered by him.
(f) On receipt of the revised rates, the tender will be corrected on the basis of the revised rates, if
found acceptable.
(g) In case the tenderer does not agree to correct some or all of the Freak Rates referred to him or the
revised rates quoted by him are not considered _reasonable and the tender is otherwise still the
most acceptable, the Accepting Officer will decide whet:lierto accept or reject the tender.
(h) Where the lowest acceptable tender is found to contain any Freak Rate, the Accepting Officer
shall, however, again verify that, in respect of items for which the rates are Freak, the quantities
mentioned in the tender documents on the basis of known facts are reasonably estimated.
(i) Where the rates quoted are freakishly low, the- Accepting Officer will check that the quantities
indicated in the tender are not substantially over-estimated; similarly where the rates quoted are
freakishly high, the Accepting Officer will check that the quantities are not substantially under-
estimated.
G) Where re-verification of the quantities in respect of Freak Rates (both low and high) reveals
substantial variations, the Accepting Officer will normally resort to retendering.
Where retendering is not restarted to, in pursuance of paras (g) and G) above, and the tender still
contains freakishly low rates, the Accepting Officer will have to take a decision whether the
overall tendered cost of the workjs sq J'l"Las.is~li[{elyJ.Qjfi:QI11!rQiS!:;_!he execution of the work. In
case he considers that the overalrten<iered cost of the work is so low as to be beyond the capacity
of the contractor and is likely to jeopardise the execution of the work, he will consult the
PCDNCDA on the question whether the contract be awarded to that contractor or whether there
should be retendering. The Accepting Officer will, however, make a positive recommendation to
the PCDNCDA and, after obtaining the advice of the PCDNCDA, take such final decision as he
.considers appropriate.
(l) 'If in spite of the revision referred to above, some freakishly high/low rates are unavoidable in the
tender finally accepted, the Accepting Officer will ensure that any increase/decrease in quantities
by way of deviation is kept to the minimum. A list of such Freak Rates shall be supplied by the
Accepting Officer to the GE/CWE and the PCDNCDA to watch this aspect.
(m) Where it is found inescapably necessary to increase quantities beyond 5% of the estimated
quantities as included in the contract, in case of rates considered freakishly high or to decrease
the quantities beyond 5% of the estimated quantities as included in the contract for items for
which rates are freakishly low, such deviations shall have the prior approval of the engineer
authority next higher to the Contract Accepting Officer.
(n) Normally no change in specification should be pennitted in respect of items for which the
tendered were freakish. If the change is, however, inescapable, sanction of the engineer aUitho,ritvl
~~ next higher to the Contract Accepting Officer would be necessary.
~ (o) Where the lowest tender is reject~d on the ground of being so low as to be unworkable, the
~ question of administrative action to Be taken against the contractor will also be considered by the
1 enlisting authority.
2. Any corrections to freak Rates have to be made before acceptance of the tenders and not afterwards.
3. Any reference to tenderers for the purpose of obtaining clarifications in respect of Freak Rates shall
not be considered as negotiations and it should be made clear in such correspondence that the reference is
made without any intention or commitment to accept his tender.
4. A freak rate will be a rate which exceeds or falls below the estimated market rate, by 50%.
PART-I : PRE-CONTRACT STAGE·AI'PENDICES 269
FORM OF ACCEPTANCE lETTER
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE .......... .
No ................ /ES Dated ....................... .
To
Shri/S'Shri
Subject : CONSTRUCTION OF ............................................ AT .................................. .

AS DETAILED IN THE TENDER ENQUIRY NO.............................................. .
DATED ...................................................... AND AMENDED SUBSEQUENTLY
VIDE LETTER NO........................................................ DATED .................... .
Dear Sir(s)
1. Reference
(i) Your tender for the above work opened on
(ii) Your letter No .............. .
(iii) This office letter No .................. .
(iv) Your letter No ................. .
@2. On behalf of the President of India, I hereby accept your tender as amended subsequently vide
letters under reference for the work mentioned above for a lump sum of Rs. ......................................... .
(Rupees ................................ )
OR
@On behalf of the President of India, I hereby accept your tender as amended subsequently vide letters
under reference for the work mentioned above, at the item rates contained therein for the contract sum of
Rs ................................ (Rupees ..................................................................................................................... )
OR
@On behalf of the President of India, I hereby accept your tender as amended subsequently vide letters
under reference for the work mentioned above for the amended lump sum (or amended contract sum) of Rs .
........... (Rupees .................... ). The details of the amended lump sum (or amended contract sum) are given in
Appendix W to this letter.
3. This contract is allotted the number ".............. " which will be quoted by you in all future
correspondence in connection with this contract.
4. The tender enquiry, your tender, the letters referred to above and this letter shall be the sole
repository of the contract.
End : Appendix W
(Where applicable)
Yours faithfully,
for and on behalf of the President of India
ACCEPTING OFFICER
Copy to:
:E : : : : : : : : : : : : :
PCDA!CDA ................ )
Fill in as applicable.
Registering authority of Contractor as applicable

Regional Labour Commissioner, (Central)
Internal Distribution : E2 Pig : E2W, E3, E4, ES
Note : In case of CWIVGE contracts copy of Acceptance letter be endorsed to concerned PCDNCDA and lower formations.
N.B. Another letter to be issued simultaneously in contmuation of this letter is given in Appendix 3.10.
@Adopt wording as applicable suitable to the case.
I
t
FORM OF LETTER TO BE ISSUED SIMULTANEOUSLY IN

CONTINUATION OF ACCEPTANCE LETTER
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE ........... .

No ............... ./E8 r DATED ..................... .
To
Shri/S'Shri
Subject : CONSTRUCTION OF .................. PIT ••..•.•.•.•.•.•.•.•••.
Dear Sir (s)
1. Reference our letter of Acceptance No .................................... dated ................... .
2. Please contact GE.............. .immediately on receipt of this letter who will arrange to issue the order to
you to start the work and also for handing over the site to you.
3. Please deposit the sum of *Rs............................................ (**Rupees ...................................... ) as

Security Deposit within 30 days of the date of this letter as mentioned in the terms and conditions of the
Contract.
4. Please atrend this office or depute your accredited representative, empowered to sign contract
documents on your behalf, to attend this office, during working hours by ............................. (Date) to enable
us to deliver to him certified true copy of the contract for your use.
5. A copy each of the following documents is forwarded herewith for your use :
(a) Schedule 'N
(b) Schedule 'B'
(c) Special requirements/conditions in Particular Specifications.
(d) One set of complete drawings.
6. Any further correspondence in connection with this contract should be addressed to GE mentioned
in Para 2 above. ***In respect of matters where the decision of the Accepting Officer is required, the
communication shall be addressed through the concerned GE with an advance copy to this office.
7. Please acknowledge receipt.

Yours faithfully
@ ACCEPTING OFFICER
Copy to:
PCDNCDA-for information
CWE-for information
GE-for information and necessary action.
AO/AAOGE
I/D: E2 Pig, E2(W), E3 and E4
*In figures.
**In words.
***In case of contracts accepted by CE/CWE.
@This letter can be signed by any staff officer on behalf of Accepting Officer.
BLANK
'I
• APPENDI)(a}J,i;
Report showing reasons for acceptance of tender when only one priced tender is
received and accepted out of several issued.
{Report to be forwarded to CDA/PCDA)
1. Name of work.
2. Date of acceptance.
3. Amount of contract.
4. Percentage above/below SSR
5. No. of contractors who applied for issue of tenders.
No. of contractors eligible for issue of tenders for the work in question out of those who
applied for tenders.
No. of contractors to whom tenders were actually issued, out of those who applied or
who were eligible.
Name of the contractor whose tender is accepted and contract Agreement No.
Reasons for lack of competition.
Why retendering with enlarged/altered list of competitors was not considered proper ?
Comments on reasonableness of tendered rates.
Signature of Accepting Officer
( ........................................ )
SINGLE TENDER REPORT

Single Tender Report will cover the following points :
(a) Name of work
(b) Contract No. and year
(c) Date on which contract concluded.
(d) Contractor's Name and reasons for his selection.
(e) CWE's Area/GE's Division. //
(f) Estimated cost of the work at par witb MES Standard Schedule of Rates (MES Schedule)
(g) Percentage above or below tbe MES Schedule in respect of recent similar cor ' 1ble contract in
the locality (or the nearest locality in case of a new locality) or Division a' :cd as a result of
competition (N arne of work, Contract No. etc. to be stated)
(h) Amount of Contract.
(i) Level of accepted price/rates i.e. approximate percentage above/below theMES Schedule.
G) Period allowed for completion.
(k) Reasons/circumstances for dispensing witb competition (also state if any efforts were made to
invite competitive tenders and the result thereof)
(1) Method determining the reasonableness of rates accepted
(m) Other remarks, if any.
Note : With reference to item (n) the method of determining the rew;onableness of rates accepted should be given in
sufficient detail to enable the higher engineer authority to satisfy himself that they are rew;onable.
:11-,- - -
il
I
pART-I : PRE-CONTRACT STAGE-APPENDICES 275
APPEND1Xa.t4
32 POINT PROFORMA
Station .......................................................... .
Name of Work ............................................... .
Name of Sub Item ......................................... .
MNo. &Date .............................................. .
1.
mfol"
Md
accn
for
every
lOOm,
17 18 20 2.1 22 24 25 26 27
·~
---------------------------------
276
., APPENDIX3A5<
PART-I : PRE-CONTRACT STAGE-APPilNDICilS
PURCHASE PREFERENCE PoLICY

--
Other things being equal, purchase preference will be granted to the CPSEs at the lowest valid price bid
(Ll) if the price quoted by the CPSE is within lOo/o of the Ll price. The salient features of the modified
Purchase Preference Policy are as under :
(i) PPP will continue for a further period of three years, with clear stipulation that it will be
terminated with effect from 31.3.2008.
(ii) PPP support will be extended to the contracts of the value of Rs. 5 crore and above but not
exceeding Rs. 100 crore. If civil works are included as part of the contract for supply of goods
and/ or if the contract is turnkey contract, sifch contracts would also be covered by the PPP subject
to the condition that the total value of the contract does not exceed Rs. 100 crore.
(iii) PPP will apply only to CPSEs and their subsidiaries (i.e. where PSE owns S 1o/o or above
shareholding), but not to a joint venture owned by a PSE and a private sector partner.
(iv) A minimum value addition of 20% by the CPSEs/ subsidiary com]Janies by way of manufacturing
and/or services would be a pre-requisite for availing of purchase preference.
(v) The provisions relating to purchase preference should be specified in the Notice Inviting Tenders
(NIT) for Rs. 5 crore and above but not exceeding Rs. 100 crore
(vi) PSEs should be subject to the same qualifications process as any other bidder. If the PSE does not
meet the minimum qualifications, it should be subject to disqualification. However, in suitable
cases, the purchasers/ clients may relax the condition of "net worth" from the list of minimum
qualifications.
(vii) If the PSE, which has had the benefit of the Purchase Preference Policy; fails to perform, it should
also be subject to payment of liquidated damages or any other penalty included in the contract.
(viii) All Ministries/Departments/CPSEs/Autonomous Bodies except Ministry of Power will continue to
grant purchase preference to CPSEs/subsidiary companies.
(ix) Respective Ministries/Departments/CPSEs/Autonomous Bodies will be responsible for
implementing the Purchase Preference Policy in letter and in spirit. For any deviation including
exclusion of the purchase preference clause from NIT, it will be obligatory on the concerned
Ministry Department/CPSE/Autonomous Body to obtain prior exemption from the Cabinet in
consultation with the Department of Public Enterprises.
(Authority : Department of Public Enterprises OM dated 18. 7.2005)
>ART-I : PRE-CONTRACT STAGE-APPENDICES 277
1'.
TYPES OF CONTRACTS IN COMMON USE IN MES

I Type of Contract · Brief Desc-ription ·.·
Tender •. ,Ge#er~·· I·. ..·. RemarkS· ···...•....
rr·
.···.
For1Jl IAl~W conditions
. ...· ; >No; ·.• . ~Contract,· .
I
....•.....
·
.... .·· •·.
.. . .. ..
· . ·.·· .
. ..· ..........··.···•···· .. ·
·· . .1!\FW·ll,lo.
.
. ·.·. .· .•· .. .. ··.· ·.
>.
(a}
·"- .· .. (b) · •· •· .• ·. i ... _> . .... (c) .· . ·... • •.· .•• ·.. . (dj i .<·(i.)··· . (f) . ••
li. Lumpsum Contracts· .· ·.·

.
.... . . . ·.. ·. ·•.·· · .... ·. . .
(a) Based on bills of The contractor prices the /2159 2249 Recommended for all CE's
quantities. detailed quantities furnished by contracts, where surveyor
MES and the total is accepted as expertise is available. MES
alumpsum. provides the contractor with bills
of quantities. The contractor
quotes his lumsum by pricing
the bills of quantities.
(b) Based on Schedule 'A' The contractor works out and 2159 2249 Unit cost of various items of
prepriced by MES quotes his own lumpsum, and work are given in tenders as
also quotes a percentage on/off worked out by MES at SSR.
1
the MES Schedule (by
comparing his lumpsum with
..
the prepncmg inserted by
MES). Same percentage is
applicable for the purpose of
pricing deviations.
(c) Based on drawings and The contractor works out his 2159 2249 The contractor submits a
specifications. own estimates and quotes lumpsum quotation for the
lumpsum against each item and work shown in the drawings
the grand total is accepted as a and specifications attached to
lump sum. the tender documents.
'
(d) Sale of buildings for The contractor quotes lump sum 2352 2352 Used when reasonable bids are
demolitions, price for demolition work and not secured for auction or
removal and clearance of credit for salvaged materials. reauction for sale of surplus
'I site. buildings.
! (e) Piece-work for specific The contractor gives his 1780·A 1780·A Used when scope of work
job. quotation for the whole work. quantity and period for
completion are known and the
estimated value does not exceed
Rs. 10,000/- Useful for minor
works, periodical services and
for repairs to plant and
machinery.
(f) Contracts for specialist The consultant quotes for Use restricted to CE's
consultancy se:rvices. supplying the design, drawing, formations with prior approval
specifications etc. of E-in·C/ Command CE.
'2. Measurement contr-acts .
(a) Item rate contract. The contractor quotes his own 1779-A 2249 Suitable where large quantities
rates for each item of work to of work involving a small
be measured on completion. number of items have to be
Schedule 'A' contains items with carried out but the exact!
approximate quantities and quantities of work required are '
specifications for each item. not known. The quantities of
items inserted should be within
i
10% of the anticipated require-
ment.
,I
II
'
278 PART-I : PRE-CONTRACT STAGE-APPENDIClls
(c) Percentage 1779 2249 under

1c~:~~~~;~~:~"!c as an
It form of contract
1ongmaJ works and maintettance I
Iservi;ces beyond the limits
Contract : (i) When
difficulty in estimating
correctly until
has commenced. (li)
the preparation of
!Iump,smn contract involves.
other special cases when
capable of tendering
Iumpsum basis are not
Iav<>ilable. (iv) Use of this cype
contract by GE or
prior approval of
1815 (Z) items of supply may

into groups and a
IseJparate contract concluded
group. May be concluded
divisions, sub-divisions
(s:~~~~:~~rel:y,
(c
separately,
and may be of
2320 2320
Istatcking, preservation, cortve\•-1

of stores of
running contract usually for a
of twelve months.
(f) Piece-work duration. Con- 1780 1780
Iqtwttos his rate for each item
i<<~g)~0~~~~~~~~;~~,,~:~;~~~~~;a;gr~e;e~m~~entandmadeauctioneers
2353 2353 surplus buildings are
~~ disposed off and the
shall conduct the auction requirements are not
Govt. shall pay the this type of contract is ent:ere·a I
Iattc~ion.eeir's commission. into. As and when required
auctioneer is ordered
conduct an auction.
CONTRACT FORMS USED IN MES
1. 2249 of Contracts for Lump Sum, Term and Contracts.

2. 1815 (Z) Conditions of Contracts for Supply of Stores and
3. 2159 !Lump Sum ·and :for works. _.....,
4. 1779 1T • • A. : and t for Works by : Rate).
5. 1779-A [Item Rate
6. 1821 !Tender and t for :Work.
7. _1815-~ IT, '"' :and Rate Contract for the Supply of Stores and
8. 1815 ITender and Lu'llp Sum Contract for Supply of Stores and Materials. (Use of this Contract Form is
9. 2320 IT • .A. :and :for :and I or :of Stores of any
10. 1780 ITender and t for
11. 1780-A · and t for Jobs.
12. 2162 !Notice ·' ·
1810 'or 1enaers.
14. 1810 Statement of Tenders (as modified for
15. 2331 !Form of work order for and Contracts.
16. 2352 Isale or :for Removal and :of Site.
117. 2353 :for the A· t oL ; for · l of:
20. 2264 [Abstract of Quantities and Prices.

I (Outer Sheet)
2264-A [A'Lbstra:ct of Quantities and Prices.
I (inner Sheet)
21. 2262 I
Final Contract Bill.
:Sheet)
2262-A !Final Contract Bill.
I (Inner Sheet)
[22. Ism
~3. 2254_ Ism
~4. 2263
125. 2209 11 aKing off Sheet.
I
26. 2210 Sheet (for Bill of
I
I
I
127. 2211-A Ism of,
.I
28. 2212-A Ism of : for details or nr~or<
129. 1823 IMES : Order Sheet.

I
l3o.
1823-A
2190
IMEs
lA :for·
': Order Slip.
t<>S
I
I
I
!
31. 1833
32. 1817
33. 2158
34. 2255 Muster Roll (Outer Sheet .
35. 2258 Industrial Personnel Bill.
36. 2297 Anal sis of Rates.
37. 1826 Recei t for Stores (Unstam ed) or USR.
38. 2253 Transfer Voucher.
39. 2201 Demolition Certificate.
40. 2286 Re ister of Securities.
41. !AFA-451 No Demand Certificate.
42. !AFW-2347 Works Diary.
i
Ji
GUIDELINES FOR INFORMATION TO BE COLLECTED BEFORE GOING OUT TO TENDER WITH

REGARD TO GROUND DATA, SITE FACTORS AND AVAILABILITY OF MATERIALS WHICH
ENABLES DRAFTING OF TECHNICAL SANCTION, SPECIAL CONDITIONS AND PARTICULAR
SPECIFICATIONS
(A) Information to be obtained at the begtnnin"""g'-"o-=..f-=ea=-=ch=··-"-l:ll'::c:O""~e:.::ct~o=t"'-Jo""b"-"'-.·~'""·""••""{•-"·•=···~~·""'···""••cec.•····~~.::"".···~"·";

1. Nature of Site
(a) Whether approximately level or sloping or with any undulations.
(b) If black cotton soil or shrubs exist, whether top soil is to be removed off site? If so, state
approximate depth for surface digging and distance for removal of soil.
(c) If such surface digging is anticipated for only part of the site, state what Provisional Lump Sum
should be allowed in tender to enable to order this on the contractor, where necessary.
(d) Nature of soil likely to be encountered in excavation (soil or rock-·ordinary/hard).
(e) If rock, is blasting permitted?
(f) Level of sub-soil water.
(g) Lead involved for depositing surplus soil from excavation.
(h) Lead involved for obtaining approved earth for filling from borrow pits.
(i) Lead involved for clayey earth or puddled clay (mud Phuska).
(j) Approach Roads : Do approach roads exist? If not, state approximate distance from existing
road to site of work for which contractor will have to make his own approach roads/diversions.
2. Availability of local Materials
(a) Approximate distance of source for aggregate suitable for cement concrete work. State whether
graded shingle/ gravel or crushed or hand broken stone are available.
(b) Approximate distance of quarries for stone suitable for walling. (if stone for facing is to be of a
different species and from a different quarry; state accordingly.) i
(c) Approximate distance of quarries for stone bottoming and metal suitable for WBM (road work).
Note: If source of stone metal used for WBM and chipping used for wearing coat (surface dressing and premix concrete) is
different, state so clearly.
(d) Whether quarries are approachable throughout the year.
(e) Are any of the quarries for stone, gravel or moorum situated on Govt. land? If so, state whether
contractor is exempted from royalty charges.
(f) Local practice with regard to binding materials used for final consolidation of WBM, hard core and
the like (i.e. red bajri, laterite, moorum, kankar nodules, lime stone, quarry dust, etc.). State
approximate distance of the sources from site of work and who controls quarries for these
material.
(g) Whether priorities for supply of railway wagons will be arranged by the department for haulage of
stone aggregate and sand etc.
(h) Where stone is not available, what materials are used by local bodies like state PWD and Municipal
Corporation and the like for road soling and WBM.
(i) Site and approximate lead for surplus earth required for filling u.nder roads, runways, traverses
and the like.
(j) Availability of small boulders from excavation, in trenches and around buildings and their reuse
for hard core or road metal after breaking it to required gauge.
(k) Availability of moorum out of excavation in trenches and around buildings and recommendation
for its re-use depending upon quality.
3. Availability of Lime
(a) State approximate distance of nearest source of supply.
(b) Quality of lime-Whether fat or mildly hydraulic.
(c) If lime is available locally (within 40/50 Km radius) local practice with regard to mortar for
masonry i.e. whether lime mortar 1: 3 or lime surkhi mortar 1: 1 : 2 or 1 : 1 : 1.
4. Availability of Sand
(a) State quality, local name and source of sand suitable for cement concrete work.
(b) State quality, local name and source of sand suitable for masonry mortar.
(c) State quality, local name and source of sand suitable for plaster work.
Note : In each case state whether grading approximate to Zone I, II, III or IV of the Table of IS 383/63. Also state whether:
(i) Sand would be required to be washed at the site of work before use in the work.
(ii) Mixing of local sand and sand brought from outside to obtain the required grading will be permitted.
5. Availability of Bricks
(a) State size of local kiln burnt bricks and crushing strength.
(b) Normal brick burning season and availability of bricks in monsoon.
(c) Average approximate distance of kilns from site of work.
(d) If kilns situated away, would contractor be allowed to bum bricks on Government land near the
site of the work.
6. Availability of species of Timber
(a) Suitable for door and window frames.
(b) Suitable for joinery.
(c) Suitable for roof timbers.
(d) Suitable for shelves, eaves and barge boards and the like.
(I!} Additional Infonnatlon to be suppliedto contract s~cticlnfqf"tl~cftt~ftd~t~'' ,,,,~~~~~!'?',:::~"t\11~~·~~
7. (a) Copy of Administrative Approval.
(b) Accommodation statement covered by Adm Approval.
8. List of Works
(a) Block arrangement of buildings indicating references to item of Adm Approval.
(b) Length and width of roads/paths.
(c) Information with regard to surface drainage.
(d) Length and sizes of fencing.
(e) Length and sizes of drainage lines and connected items.
(f) Disposal works.
9. P.C. Items-for specialist items (if any).
10; Provisional Quantities
(a) Water supply and plumbing.
(b) Internal Electrification.
Ir
I
'
(c) Other items not covered in (a) and (b) above.
11. Site plan (as approved by siting board) indicating inter alia :
(a) Layout of all buildings/works to be included in the contract.
(b) Roads/Paths/Fencing.
(c) Location of electric poles and electric points.
(d) Location of water points.
12. Drawings-Detailed pla;'.s, sections and elevations and other details for all buildings and other
items to be included in the tender.
-'~
13. Specifications-Outline specifications to be followed giving references to the Standard
Spedfications drawn out by each Zonal CE.
Note : Quality of Builders' hardware and quality of sanitary fittings to be made clear
14. Government Stores to be issued to contractors under Schedule 'B'
(a) List of items.
(b) Place of issue.
(c) Where existing surplus stock is intended to be consumed give particulars about:
(i) Quantity available.
(ii) Condition of store.
(iii) Disposal of empty cement bags and containers.
15. TOols and plant to be issued under Schedule 'C'
(a) Particulars of items (full description of plant and its crew to be clarified).
(b) Place of issue.
(c) Condition, if any, on its use.
Note : If items like acraform or steel channels are intended to be issued on loan, the rate and conditions of hire should be
clearly stipulated.
16. Availability of water for works and workmen
{a) Source and whether supply available in adequate quantity.
(b) If wells exist at site, whether contractors would be permitted to use well water, free of charge.
{c) Availability of water for drinking purposes for workmen.
(d) If issued to contractor whether it will be metered supply and if so, rate to be charged, confirm
whether meters will be provided by the department.
(e) Number of water points proposed for issue of water (indicate these on site plan).
(f) Whether the contractor would be permitted to dig temporary wells or instal his own hand pumps
etc. for drawing out water and remove them on completion of work.
17. Availability of electric energy for issue to contractors-State source, type of current viz.
AC/DC, rates to be charged and maximum Ji0N available for issue for :
(a) Power Purposes.
(b) lighting Purposes.
18. Availability of land
(a) Whether proposed construction is located at one site or at different sites (attach site plan
demarcating sites).
Note : If land or portion of land at one of the sites is not available, indicate this clearly and state probable date by which
this portion would be available.
284 PART-I: PRE-CONTRACT STAGil-Al'PENDICilS
(b) Confirm that the site plan has been approved by local authorities/users.
(c) Demolition of buildings, if any, already existing at site of work and disposal of materials obtained
from demolition.
19. Availability of Buildings
In case of additions and alterations (special repairs) give phased programme of handing over buildings
as accepted by users.
20. Admission to site
Is admission to site for contractor's work-people restricted? If so, a clause to be included about working
hours, passes for labour, searching of labour at entryI exit, etc.
21. Hindrances at Site
(a) Presence of trees at site. If so, iJ
it proposed to get them removed under departmental
arrangements or through building contractor ?
(b) Presence of large number of tree trunks. If any, to be removed by conrractor and making good of
pits by moorum filling or hard core.
(c) Presence of old underground water mains, electric cables and the like. If so, whether they would
be removed under departmental arrangement or to be removed by contractor. If former, probable
date by which site would be cleared of these.
(d) Presence of any electric or telephone poles. If so, whether they would be removed under
departmental arrangements or by the authorities concerned and the probable date by which these
would be cleared from site.
22. Miscellaneous
(a) Open space for contractor's workshop and labour.
(b) Vacant Buildings for use of specialist contractors for their stores, materials, labour and supervisors.
(c) Protection of existing buildings, roads, paths, installations etc.
(d) Security of contractor's men and materials.
., APPENJ)I~'$;;~)
PARTICULARS TO BE FURNISHED BY PLANNING SECTION TO THE ES SECTION FOR PREPARATION OF
TENDER DOCUMENTS
Subject : PREPARATION OF TENDER DOCUMENTS FOR
Will you please arrange to prepare tender documents and invite tenders for the above work. The
following particulars required in this connection are given :
1. Copy of Adm. Appl. .......................
2. Accommodation statement as per Adm. Appl. covered by this contract .......................
3. The amount of Adm. Appl. relating to the work under this contract .......................
4. Site plan showing layout of all building to be included in the contract (as approved by the siting board). .......................
5. Copy of draft T. S. / ·······················
6. Detailed plans, sections and elevations etc., for all buildings and other items to be included in the contract
(List attached as per Appendix ;..:) .......................
7. Plans and schedule for internal electrification .......................
8. Ditto for internal water supply and sanitary fittings. ·······················
9. Brief outline specifications (attached as per Appendix 'B'.). .......................
10. Data with regard to local site factors is given in Appendix 'C'. .. .....................
11. (a) Draft Schedule W -List of works with reference to corresponding items in Adm. Appl. .......................
(b) Approximate quantities for provisional items (roads, paths, fencing, external drains and so on). .......................
12. List of stores to be issued by government (Schedule 'B') and place (s) of issue. .......................
13. Parriculars of Govt. T & P to be issued to the contractors (Schedule 'C') and place (s) of issue. .......................
14. Particulars of Govt. transport, if any to be issued to the contractor (Schedule 'D') and place (s) of issue. .. .....................
15. Provisional Lump Sums and PC sums that should be included in the General Summary (for uncertain
foundations, specialist jobs etc.,) are as follows :
(a) For work in foundations .......................
(b) Water supply and sanitary fittings not.covered by Sl. No.8 above as a PC sum .......................
(c) PC sum for specialist items .......................
(d) Provisional Lump Sum for ......... .......................
16. Time allowed for construction (Indicate phasing where so intended). In case of Special Repairs indicate
phasing according to which building will be handed over .......................
17. Water will be supplied by MES on payment. The water point (s) is/are shown in the site plan. The supply
will be metered/unmetered. The quantity available is restricted to ........ litres per day. Rs. ·······Per ......
OR
Contractor shall make his own arrangement for water for works and for his workmen .......................
OR
MES will not be able to supply water but contractor will be allowed to utilise the existing wells in the .......................
vicinity and in the contract area.
NOTE : Delete the alternatives not applicable
18. Electric energy will be supplied at : Rs........ Per ......
OR
Electric energy will not be supplied .......................
19. Availability of land for storage of materials (including temporary sheds) .. .....................
20. Availability of land for accommodation of labour, canteen, fabricating workshop and the like. Also state
whether land will be allotted ftee or whether rent will be char~ed and, if so, the scale of rent. .......................
286 ~T-1 : PRE-CONTRACT STAGE-APPENDICES
21. Availability of quarries for extracting stones, moorum, sand and the like on Defence land. (If quarries are
-
situated on Defence land and are available, also state whether any royalty will be charged, and if so the
scale of royalty) ·······················
22. The following special features applicable to this contract are brought to your notice :
(Under this heading include the following and similar other features)
(a) Whether site levelling is intended ·······················
(b) Whether removal of shrubs or trees is to be included ·······················
(c) Whether surface excavation is intended and, if so, state average thickness ·······················
(d) If black cotton soil exists, whether its top layer is· to- be removed and, if so state thickness and also lead
for disposal of soil .......................
(e) If nature of such strata is uncertain, whether work in foundation is to be- catered for as 'provisional lump
sum' or 'provisional quantities'. .......................
(f) Approaches to site : state whether approaches exist or contractor is to provide his own approaches .......................
(g) Working hours : State whether normal working hours may be expected or work lies in restricted area, if
in restricted area what would be the working hours?
/ .......................
(h) If work is in restricted area whether contractor has to arrange passes and his labour is liable to be
searched at the entrance and exit. .......................
(i) Demolition of buildings, if any, involved with plan and section of buildings to be demolished. .......................
Q) Whether work is required to be executed in water, mud, foul, tidal etc. conditions. .. .....................
No ............. I ............ E2 Pig. SOl Plg/DCWE
Chief Engineer ............. I CWE ........... .
To,
Dir (C)/Jt. Dir (C)/DCWE (C)/ACWE (C)/AGE (C)
l
SOME GENERAL FACTORS TO BE TAKEN INTO CONSIDERATION WHILE FIXING PERIOD

OF COMPLETION FOR WORKS
(a) Availability of the following :
(i) Materials;
(ii) Skilled (and unskilled) labour;
(iii) Water for construction;
(iv) Electric energy for welding etc and lighting;
(b) Period lost due to rainy days, cold climate, harvesting! festival seasons etc.
(c) For new sites where approach roads do not exist, period of completion should be more than that
for developed sites.
(d) For work scattered over two or three sites-completion period should be more as compared to that
required for work of the same magnitude concentrated at one site.
(e) Existence of hard rock in foundations and over site.
(f) Officers quarters, Institutes, Messes, Hospitals and the like where internal finishes and fittings
need more attention, a more liberal provision is necessary.
(g) For work pertaining to additions/ alterations to existing buildings-completion period should be
on a more liberal scale as compared to new work of the value because in case of work involving
additions/alterations site restrictions hamper progress.
(h) Double storeyed or multi-storeyed buildings with considerable amount of RCC work.
(i) Where separate contracts are being arranged for speciaiised work, such as air-conditioning or
water- proofing, proper coordination between the work of the Builder and that of the Specialist is ~~
essential. !it
G) For sewerage work in areas in which sub-soil water level is high, a comparatively longer period is
necessary and cost alone should not be the criterion.
(k) Time required in procuring stores to be issued by the Government.
~~j
(I) Where piling work in foundations is contemplated, period of completion will depend upon the
availability of the equipment with Specialist Contractor and phasing of work by blocks may be
necessary.
,, I
(m) Period involved in planning and period required for completion of external and other specialist
services like external electrification, sewerage, lifts, machine foundations for technical buildings.
-- , _ , ,' WEdS~ORiGUIPANlli
PERIOD. OF PHYSICAL ExECUTIONIN ",., .•. ,.,,.,,.,,,·,,.:·--·-·>.>-·-,,-v.·.·.··"··;·Ok,.·,,•"-c,:'''··
tE .··. liE
··c:~~ el'>ntr.i.!ts .
(a) Md Accommodations 78 52 26
(b) OTM Accommodations 84 56 28
(c) Ext Elec/Water Supply 60* 40 25
(d) Air-Conditioning 40*
·I
(e) Other Ext. Services like Roads/ 50* 35 22
Paths/Area
Drainage Ii
(f) Central Sewage Disposal Scheme 60*
I!
;I
'I
,"•I
... ! i
I
Remark$,
(a) For Multi-storeyed Construction, add 25% extra. I
(b) For High value building contracts (say over 12 to 15 crores at 2004 prices), add prorata extra.
(c) ''Add SOo/o to 100% time in CompleX/High value scheme, but see note (e).
(d) No time durations have been laid down in these tables for Projects with EFC Memo/CCPA or for
works of a nature peculiar to a service such as wharves and jetties for the Navy and Runways for AR
In such cases, a detailed analysis will be carried out byE-in-C's Branch and time Schedule evolved
and included in the Engineer appreciation except in cases of time-bound projects where the
completion dates will be as stipulated by the Service HQ/ Govt. with the necessary assured
finances.
(e) The actual date of commencing of the planning of external services and airconditioning will have to
be dovetailed into the planning programme for construction of buildings in order to ensure that the
completion date of the services match with the completion date of the buildings.
pART-I : PRE-CONTRACT STAGE-APPENDICES 289
"' STATEMENT OF STORES REQUIRED UNDER CAGE III (c) OF IAFW 2262
CANo ................................................................................. OF .................................................................................... .

Name of Work .............................................................................................................................................. .
Name of Contractor ............................................................................ No & date of final bill ............................................................................... .
Total of Col. 9 ... f-------4

Recovery on account of containers vide Appendix 6.2 .. f--:-----1
Grand Total Rs ... f--:-----1

In words say Rs ......................... .
Signature of Contractor Engineer-in-Charge
Date Date
SPECIMEN
DETAILS IN SUPPORT OF COL 5 OF STORES STATEMENT (Annexure 'Pl to Appendix 6.1)
Total Quantity of Stores issued to Contractor M/s .............. under CA No ............... (Rs ..................... Col. 5 of Statement of Stores).
~c;J.ti~e"
>~~~----
~-··
1. 12257 15 150 12
15.7.69 j
2. 12259 50 5 10
19.7.69
3. 12280 10 20 5
·~·
10.8.69
Total 25 50 170 17 15
Returned to M.ES.
T:V. No. 201/5
Dated 12.9.69 2 5 I
T:V. 211/6
Dated 15.9.69 5 3
Total Returned 2 5 15 3 5
Netlssue _ _ __:2:::3c__ _ _ _ _ _4.:.:5c__ _ _ _ ___.:1:.::5:::.5_ _ _ _ _ __.::.14.:__ _ _ _ _ _.:_10::__ __
I
Signature of Contractor Engineer·in·Charge 'I
Date Date
II
II
j!
•I
III·'1.11
I
290 PART-I : PRE-CONTRACT STAGE-APPENDICJ!s
DETAILS OF RECOVERIES FOR EMPTY CONTAINERS I

Name of work ................................................................. C A No ....................................................................... .
Name of Contractor ........................................................ No. and date of Final Bill .......................................... .
Certified that the Empty containers returned by the contractor are in a serviceable condition.
Signature of Contractor Engineer-in-Charge
Date Date
'
'
.. CEMENT CONSTANTS I
2. cement concrete using all in aggregate delivered
4. Gauged mortar (cement Lime and Sand mortar)
Brick work in well burnt bricks straight on plan or to curve exc. 6 metre 1:3 Cubic 123.00 113.3
mean innet radius, built in cement and sand mortar. 1:4 Metre 95.84 87.9
1:6 64.06 58.4
work in well burnt bricks, straight on plan or to a curve exc. Cubic 60.48 56.8 ij
mean inner radius, built in gauged mortar Metre 47.93 43.6
of random or polygonal rubble uncoursed or brought

courses well bonded, bedded and solidly hearted in cement mortar.
1:3
1:4
Cubic
Metre
147.60
114.80
I
1:6 75.34 .,
:1
of random or polygonal rubble uncoursed or brought 1:1:6 Cubic 73.80

courses, well bonded bedded and solidly hearted in gauged mortar. 1:1:8 Metre 56.89
~
I
292 PART-I: PRE-CONTRACT s~•""
9. 10mm (1!2 inch) thick rendering or screeding on brick or concrete 1:2 Square 11.79
surfaces in cement and sand mortar 1:3 Metre 8.41
10. lOmm (1/2 inch) thick rendering or screeding on brick or concrete

surfaces in 2:au~ed mortar
11. 10mm (1!2 inch) thick rendering or screeding on stone masonry
1:4
1:6
1:1:8
1:2:9
1:2
Square
Metre
Square
' 6.77
4.46
3.38
2.82
15.68
surfaces on lathing in cement and sand mortar 1:3 Metre 11.17
1:4 8.41
1:6 5.64
12. 10mm (1/2 inch) thick rendering. or screeding on stone masonry 1:1:8 Square 4.20
surfaces or lathinll in 'laulled mortar. 1:2:9 Metre 3.64
13. Add to or deduct from serial No 9 & 11 for each 5mm (1/4 inch) 1:2 Square 4.77
thickness in cement mortar over or under 10 mm (1/2 inch) on 1:3 Metre 3.38
concrete, brick, lathing or stone masonry surfaces 1:4 2.51
1:6 1.69
14. Ditto-Item No 10 & 12 in gauged mortar 1:1:8 . Square 1.38
Pointing ... ·
..
.
..
' · .. · .....•.
1:2:9
...
· ...·.. ·
Metre
·· .... .. ·.· .
1.13
··.
15. Raking out joints to a depth of 10 mm and flush, keyed or struck 1:2 Square 2.51
pointing on brickwork, in cement mortar 1:3 Metre 1.69
1:4 1.39
16. Raking out joints to a dept_h of 10mm and flush, keyed or struck 1:2 Square 5.02
pointing on random rubble masoruy uncoursed or brought to courses 1:3 Metre 3.95
with 20mm thick joints, in cement mortar. 1:4 2.83
17. Struck, keyed or flush pointing to block in course or ashlar or concrete 1:2 Square 1.39
walling in cement mortar. 1:3 Metre 1.13
1:4 0.85
18. Struck, keyed or flush pointing to squared rubble coursed or uncoursed 1:2 Square 3.95
walling in cement mortar 1:3 Metre 2.82
1:4 2.26
19. Bustard tuck or mason's V~Joint pointing to squared rubble coursed or 1:2 Square 5.02
uncoursed masonry, in cement mortar. 1:3 Metre 3.64
1:4 2.82
20. Bustard tuck or mason's V~Joint pointing to random rubble masonry, 1:2 Square 6.15
uncoursed or brought to courses in cement mortar. 1:3 Metre 4.46
1:4 3.64
Brick Floorim<
. .
.. .. .. . . . . . • .. · . .
21. Hard burnt brick floors, laid flat, jointed and pointed flush in cement I 1:3 Square 11.17
and sand mortar. 1:6 Metre 5.64
22. Ditto-but bricks laid on edge ditto. 1:3 Square 15.68
1:6 Metre 8.41
. ·.
Surface Finishint> to Concrete Floors . .
23. Floating with wood or steel hrmd float as ordered, cement concrete Square 1.38
surface to a fair and even surface usin'i! extra cement. Metre
. . ... ·. .
Gr~ lU>Jithic Floorin~r
24. 30mm thick granolithic concrete floor topping spread over ordinary 1:1:2 Square 16.09
concrete floor etc. including floating or trowelling to an even and fair Metre
surface
25. 1Omm (3/8 inch) thick layer of terrazzo (consisting of 1 part of mixture 1:1:5 Square 8.71
of cement and marble powder to 1.5 parts of approved crushed stone Metre
chipping, 4 to 7mm size) laid level or to falls including cut and polished
finish.
I
[
'
STATEMENT OF HIRE CHARGES FORT & P l

Name of work·····················································································································'····················
C.A.No ................................................................................................................................................... .
Contractor .............................................................................................................................................. .
Final Bill No ............................................................................................................................................ .
. . ·.· ...•. . . ... . ... . I. .

~~~ neseclt>t- llate' hr "Ref. of Ref. ti> I Ref to 1 l>a~ Details ohvorks . _Rate of . Total Remarks
l'!ci. li>lt .of issUe lolll1 LoJ! U.S.R. . ·: ·..•.· < Hours worked · •··· ··. hire ree?veey (date of returo &
l T&~ .... •·• Issue »oak r 1 c ·.· ·..· .· . .. . . charges r._or rna_.111_teoan_ce_ ·.
1 ··: From To Total! ··
t h _. ; _
.
. __
f ! <•.·•· . • vouche~ &!::" > I •.·. · .·• ·. ·: . . •.. ·• #our~ I >• work. da':~.e:!~wo
Signature of Contractor Technically checked AEEB/R
JE (QS & C)
is to be included in tenders for works costing Rs. 25 lakhs and
N Supply of Electric Energy be included in tenders where it is proposed to supply electric 1
V Facilities to contractors IAJ>plicable to tenders where such facilities are proposed to be given.
~~:~~~~~::~:of quarries situated on defence land
I! of land for storage of materials
C-Allotment of land for Accommodation of Janou;r, 1
etc.
antitermite treatment
to tenders for road work.
Plant/Equipment at site
damage on account of enemy action
XI Reimbursement/Refund on variation in prices applicable for all tenders where period of completion ·
Administrative Approval is 2 years or more. It shall
inc:lucled in tender for Term Contract irrespective of
XII Special Condition for inclusion in tender for work to specialist tenders for lifts.
Electric Lift installation.
XIII Reimbursement/Refund on variation in prices labowrl It is applicable for all tender where period of completion Gob
administrative approval is 2 years or more. This COJlditimlJ
not be included in Term Contracts ·irrespec~ive
XN on Account against for works costing more than Rs. 50 lakhs.
XV \~:~;~~~~'!copy of General Conditions of Contracts wilth lin absence of Printed copy of General Conditions of Contracts to
(c and copies of contract agreement. with contract agreement. a statement as per Annexure
XVI Reimbursement/Refund on variation in taxes
is applicable in contracts concluded by ZonaVproject CE on

pART-1 : PRE-CONTRACT STAGE-APPENDICES 295
1. Specimen Special Condition on security of classified documents

"SECURITY OF CLASSIFIED DOCUMENTS
Contractor's special attention is drawn to Conditions 2A and 3 of General Conditions of Contracts
(IAFW-2249). The Contractor shall not communicate any classified information regarding works either to
sub-contractors or others wi :hout prior approval of the Engineer-in- Charge. The Contractor shall also not
make copies of the design/ drawings and other documents furnished to him in respect of works and he shall
return all documents on completion of the works or on earlier determination of the Contract. The Contractor
shall along with final bill attach a receipt from the Engineer-in-Charge in respect of his having returned the
classified documents as per Condition 3 of General Conditions of Contracts (IAFW-2249) ."
II
II. specimen Special condition requiring tenderers to keep their offer open for a specified
period
"The tender shall remain open for acceptance for a period ......... days from the date specified for its
submission".
Notes : (i) A period of 60 days should normally be specified in all B & R, Furniture and Electrical contracts. In the case of
contracts for Specialists Services, e.g., Air Conditioning et~. where it is anticipated that it may not be possible to take a
decision with regard to the acceptance of a tender within this period a longer period may be specified initially.
(ii) If as a result of the scrutiny of tenders received, it is found that a decision is not likely to be taken within the period
initially specified in the tender documents, tenderers shall be addressed to give their consent in writing to keep their offers
open for a further period, the period being specified in accordance with the requirements of the case.
(iii) The period of validity for acceptance of tender initially laid down will not exceed 60 days. In case any tenderer does not
agree to extend the validity period, no penal action should be taken against him. However for FTP work, validity period will
be specified as 120 days.
d'
Ill
III. Specimen Special condition for adoption of Critical Path method in lieu of Time and
Progress Chart
(a) The Time and Progress Chart to be prepared as per condition 11 of General Conditions of Contracts
(IAFW-2249) shall consist of detailed network analysis and a time schedule. The critical path network will be
drawn jointly by the GE and the contractor soon after acceptance of the tender. The time scheduling of the
activities will be done by the Contractor so as to finish the work within the stipulated time. On completion of
the time schedule a firm calendar date schedule will be prepared and submitted by the Contractor to the GE
who will approve it after due scrutiny. The schedule will be submitted in four copies within two weeks from
the date of handing over the site.
(b) During the currency of the work the Contractor is expected to adhere to the time schedule and this
adherence will be a part of contractor's performance under the Contract. During the execution of the work
the Contractor is expected to participate in the reviews and updating of the net work undertaken by the GE.
These reviews may be undertaken at the discretion of the GE either as a periodic appraisal measure or when
the quantum of work ordered on the Contractor is substantially changed through deviation orders or
amendments. Any revision of the schedule as a result of the review will be submitted by the Contractor to the
GE within a week who will approve it after due scrutiny. The Contractor will adhere to the revised schedule
thereafter. In case of Contractor disagreeing with the revised Schedule, the same will be referred to the
Accepting Officer whose decision will be final, conclusive and binding. GE's appr'f'al to the revised schedule
resulting in a completion date beyond the stipulated date of completion shall nof!lll.utomatically amount to a
grant of extension of time. Extension of time shall be considered and decided by the appropriate authority
mentioned in condition 11 of IAFW-2249 and separately regulated.
(c) The Contractor shall mobilise and employ sufficient resources to achieve the detailed schedule
within the broad frame work of the accepted methods of working and safety.
(d) No additional payment will be made to the Contractor for any multiple shift work or other incentive
methods contemplated by him in his work schedule even though the time schedule is approved by tbe
Department.
Notes : In addition, the following facts shall be highlighted in the fDTwarding letter of the tender :
(a) The tender is based on CPM.
(b) The tenderer is expected to be fully conversant with the technique and employ technical staff who can use the technique in
sufficient detail. Sufficient books and other literatures on the subject are widely available which the tenderer may take use of
(c) The time allowed for the completion of the work has been worked out through CPM after dividing the work in broad
stages. The network and time schedule depicting these details is enclosed herewith for guidance of the tenderer.
(d) The tenderer's attention is drawn to special condition ........ of the tender regarding preparation of the detailed net work
and time schedule for the work and his liability for employing sufficient resources to adhere to his schedule. Any inability on
the part of the tenderer in using the technique will be taken as his technical insufficiency and will affect his class of enlistment
and further prospects of receiving tenders for works.
:rv. Specimen Special Condition on Supply of Electrical Energy

It has been agreed in consultation with administrative and financial authorities at IHQ of MoD (Army)
that Electric Supply may be made available by MES in all contracts wherein electric energy is required to be
used by contractor. The following special condition will be included in such cases :
Electric Supply
In case the Contractor desires to buy electricity from the MES, he shall be charged for the electric
energy consumed at the following rates :
(i) At *per unit for lighting purpose.
(ii) At *per unit for power purpose.
(*These will be as per latest instructions).
Electric supply required for works upto maximum of.......... KVA shall be made available by the MES at
the incoming terminal of the main switch marked on the site plan. The main switch and KWH meters to
register to electric energy supplied shall be provided and installed by the MES. The Contractor shall provide
all necessary cables fitting, etc., from the main switch in order to ensure a proper and suitable supply of
electricity for the execution of work.
The MES do not guarantee continuity of supply and no compensation whatsoever shall be allowed for
supply becoming intermittent, or for breakdown in the system.
GE or his representative shall be free to inspect all the power consuming devices or any electric iines
provided by tl:)e contractor. Any device or electric lines provided by the contractor, which is not to the
satisfaction of the GE shall be discontinued from the supply if so desired by him.
'I
V. Facilities to contractors-special condition for allotment of land ami/or allotment of

quarries situated on defence land
1. Condition 14 Royalties-of General Conditions of Contracts (IAFW-2249) stipulates as under:
"No royalty will be recovered for materials, which the Contractor may be allowed to remove from
quarries situated on land which is in charge of the MES Authorities or from land in cantonments in charge of
the Defence Estate Officers."
2. Condition-24. (ibid) includes, inter-alia, the following provision :
"The portions of the Site to be occupied by the Contractor will be clearly defined and/or marked on the
Site plan and the Contractor will on no account be allowed to extend his operations beyond these areas. In
the event of the area of land so allotted for the purpose of Accommodation of Labour, erection of Temporary
Workshops, Stores, etc., Storage of Materials and the like, being other than Class A-1 land, (which fact shall
be ascertained by the Contractor from the GE) the Contractor shall pay a nominal rent of Rs 1/- per year, or a
part of a year in respect of each and every separate area of land allotted to him."
3. It will be noted from the above that both the conditions are in the nature of permissive clauses. The
Contractor has to obtain permission from concerned Authority and the permission has to be granted to him
by that Authority in writing.
4. From the various rules in the Military Land's Manual it is further seen that whereas some categories
of lands are under the administrative control of the Military Authorities, some categories are under the
administrative control of Military Lands and Cantonments Directorate. For example, land allotted for
carrying out military works is reclassified as A-1, the administrative control for which rests in the Officer
Commanding of the Unit, whereas land classified as A-2 or B-4 is in the administrative control of the Defence
Estate Officer. Similarly; whereas the Military Lands Manual provides that permission may be granted by GE
(MES Officer-incharge of works) for storage of contractor's materials on Class A-1land being for temporary
use), GE has no such powers in regard to other categories of land, such as A-2 or B-4. _
5. In the light of the position explained above it is obvious that it will not be possible for any contractor
to know the correct position with regard to availability of quarries on Government land or availability of
Government land for his use and the royalty/licence fee he may have to pay. The above mentioned permissive
conditions in the contract are, therefore, vague so far as the contractor is concerned.
6. The correct position with regard to the following shall be ascertained at pre-tender stage and the
position thereof specifically stated under Special Conditions to be included at the beginning of the Particular
Specifications. Condition 14 pertaining to Royalty and the portion of Condition 24 (reproduced in para 2
above) shall be deleted while issuing tenders :
(a) Quarries on Defence land
(i) State whether or not any quarries situated on Defence land are available for use by the Contractor
to remove materials for use in the works.
(ii) If any quarries are available, it should be made clear in the tender documents under a special
condition on the lines indicated at Specimen 'X hereunder whether or not the Contractor would be
permitted to remove materials from these quarries. If it is decided to allow the Contractor to
remove materials from the quarries it should be stated that no royalty shall be charged for removal
of materials from the quarries allotted to the Contractor.
(b) Availability of land for storage of materials {including temporary sheds)
State whether land will be allotted free or whether licence fee shall be charged. Special condition
........... to be included in the tenders is given at specimen 'B' hereunder.
l
y
r.···.··.·.···. ··.
298 PART-I : PRE-CONTRACT STAGE-A} \NDICES
I Notes : (i) Normally free use of some portion of class A-1 land adjoining the proposed works should be possibLe '- 'h•
interest of work, this should always be arranged and earmarked by the GE and specifically shown on the site plan attacheuro
tender.
(ii) Where Class A-1 land is proposed to be allotted to the Contractor no licence fee is to be charged from the Contractor. In
other types of land a nominal licence fee of Re 1/- (Rupees one only) shall be charged and inserted in the special condition.
(c) Availability of land for accommodation of labour, Canteen, Fabricating Workshop, etc.
State whether land will be allotted free or whether licence fee shall be charged. Special condition to be
included in the tender is given at specimen 'C' hereunder.
Notes : (i) Land for accommodation of labour, canteen, fabricating workshop, etc., where considered necessary in the
interest of the State, will have to be arranged at the pre-tender stage and clear indication in this regard stipulated in the
special conditions.
(ii) Where Class A-1 land is proposed to pe allotted to the Contractor no licence fee is to be charged from the Contractor. In
other types of land a nominal licence fee of Re 1/- (Rupee one only) shall be charged and inserted in the special condition.
A. Specimen Special Condition on Allotment of Quarry on Defence Land to Contractor
for Extracting Stone, Sand etc. for works See para 6a (ii)
"(Reference Condition 14 of IAFW-2249)
(a) The location and exact boundary of the quarry proposed to be allotted has been marked on site
plans bearing drawing No ............. forming part of the tender documents.
(b) The Contractor is required to develop the face of the quarry by removing any overburden and
make the preliminary arrangements such as approach road (s) to the quarry at his own cost.
(c) The materials *extracted from the quarry will be used solely for the purposes of execution of the
work under the Contract and that the Contractor will not be allowed to remove any extra material
from the quarry for any other purpose.
(d) In the event of the Contractor quarrying materials in excess of his requirements for the work under
the contract he shall have no claim to payment of any compensation on account of any
expenditure incurred in quarrying such excessive materials and the excess materials brought at site
(s) shall become the property of the Government.
(e) £(i) Royalty shall be charged from the Contractor for extracting stone/sand Rs ............. cubic
metre.
£(ii) No royalty shall be charged to the Contractor for extracting materials.
(f) On completion of the works the quarry site and approach road (s) shall be left dean and tidy to the
entire satisfaction of the Engineer-in-Charge and at the Contractor's expense."
*Materials to be named.
£ Delete whichever is not applicable.
Note : The executive must ensure that the Contractor strictly complies with the special condition and does not
misappropriate the material extracted from the quarry for purposes other than those for the contract in question.
B. Specimen Special Condition for aHotmo:ut of Land for storage of materials (including
temporary scheds) [see para 6 (b)]
"REFERENCE CONDITION 24 OF IAFW-2249
The Contractor shall be permitted to store his materials including erecting temporary sheds therefore at
the areas of land marked on the site plan and he shall pay a licence fee of Rs ............... per year or part
thereof in respect of each and every separate area of land allotted to him."
C. Specimen Special Condition for allotment of land for accommodation of labour,
canteen, fabricating workshop etc., [see para 6 (c)]
"REFERENCE CONDITION 24 OF !AFW-2249
The Contractor shall be permitted to erect his labour camp, temporary workshops, and the like at the
area of land marked for this purpose on the site plan and he shall pay a licence fee Rs .............. per year of
part thereof in respect of each and every separate area of land allotted to him.
-~f.!¢ VI
VI. Specimen Special Condition for Guarantee in respect of Anti-termite treatment
Should the GE any time during construction or reconstruction or prior to the expiration of period of ten
years after the anti-termite treatment has been completed ,ls per contract, finds that the buildings have been
infected with termites, the Contractor shall, on demand in writing by the GE specifying the building(s)
complained of, notwithstanding that the same may have been inadvertently passed, certified and paid for,
forthwith undertake to carry out such treatment as may be necessary to render the said building(s) free from
termite infestation at his own expeDses for a period of ten years from the certified date of completion, and in
the event of his failing to do so within a period to be specified by the GE in his demand aforesaid, the GE may
undertake such treatment at the risk and expense in all respects of the Contractor, The liability of the
Contractor under this condition shall not extend beyond the period of ten years from the certified date of
completion unless the GE had previously given notice to the Contractor.
The Security Deposit referred to be held from the contractor against the guarantee period for
antitermite treatment shall be calculated as per scales laid down for calculating "Individual security deposit"
on the amount of antitermite treatment at contract rates for the buildings for which treatment is to be done
and may be refunded to the Contractor after the expiration of the period of ten years from the certified date
of completion by the GE, provided always that the Contractor shall first have been paid the final bill and have
rendered a No-Demand Certificate (IAFA-451). The facility of furnishing fixed deposit receipt/BGB in lieu of
the sum to be retained as security may be accepted.
Condition 10, 46 & 68 of the General Conditions of Contracts (IAFW-2249) shall be deemed to be
amended the extent mentioned above.
In addition to the above special conditions, following further points shall be highlighted while framing
the special condition/ particular specifications.
(a) It should be ensured that the agency executing the work procures the chemicals, only from the
manufacturers or their authorised agents/dealers.
(b) Chemicals brought to site in sealed container bearing lSI certification marks shall only be
permitted to be used.
(c) Chemicals shall be stored carefully at site. Seals of containers should be broken only in the
presence of the Engineer-in-Charge (EIC). Empty containers should be got removed off the site
promptly. If on any particular day the contents of one full container could not be used in the work,
the container should be got sealed at the end of the day in the presence of the EIC and opened
when required, also in the presence of the EIC.
(d) The Engineer-in-Charge (EIC) should ensure that paid vouchers are produced by the agency
executing the work, for the full quantity of the chemical required and brought to site and a record
of such vouchers should be kept by the ElC.
(e) Tests may be carried out in a recognised laboratory or test house at the discretion of the GE, of the
chemical brought by the agency executing the work, to satisfy that spurious materials are not
being used.
(f) The EIC should work out on his own cost, the total requirements of chemicals required for the I
work as per specifications and ensure that full quantity is brought to site and used in the work. For
this purpose, entries should be made in the Measurement Book (not for payment-not to be I
abstracted) indicating the brand name, quantity brought, etc. and signed by EIC as well as
representative of the agency executing the work.
(g) Work of antitermite treatment shall be got done through approved specialised agency; holding
valid licence as per clause 13 of Insecticides Act 1968. Persons employed to carry out antitermite
treatment should be a qualified as per rule 10 promulgated under Insecticides Rules 1971.
(h) GEs/CsWE should during their inspection of the work, specifically examine the anti-termite
treatment.
Q) A copy of IS 6313 (Part-II) should be available at site with every Engineer-in-Charge who gets
anti-termite treatment works executed.
Specimen Special Condition on ;(}U:tb~tto(~1~~Jtjl(~~'

Notes : 1. It has been observed during technical check of final bills that the output of road rollers varies very widely, and in
some cases recovery effected was much less than that worked out of the basis of reasonable output per day of 8 hours work of
the road rollers.
2. The output of road rollers may vary depending on various factors such as the size and type of roller; quality and grading of
metal, and the like but it is considered that variation in the output of road rollers due to various factors cannot be very large.
3. With a view to ensuring that consolidation is done properly and adequately by contractors, Special Conditions as given
below will be provided in tenders where use of road roller is involved.
4. It will be observed from para 1 of Condition 15 of General Conditions of Contracts (IAFW-2249) that the option to hire T
& P from the Department rests with the Contractor. It is therefore, necessary that market rate of hire of road roller is inserted
in the tender documents by the officer issuing the tender. The rate of hire should be ascertained carefully.
5. In para 1 of the Special Condition given hereunder a number of items which need rolling are included. While incorporating
this condition in tenders, only the items involved in the work will be retained. Any additional item of work not covered may
be included subject to prior approval of the Zonal Chief Engineer as to the output per day of road roller.
6. It is considered that provision of this Special Condition will curb the tendency on the part of contractors to economise on
the use of rollers with the object of reducing recovery of hire charges and will improve the quality of work considerably.
Specimen Special Condition: OUtp~f~tlt~~llltll~

Reference Condition 15 of IAFW-2249
1. Where road rollers are hired by the Department to Contractors a log book for each road roller shall be
maintained by the Department recording hours of working of the road roller. In case, however, when the
Contractor procures road rollers from sources other than the Department a log book for each road roller shall
be maintained by him for recording hours of working of the road roller. Entries in the log book shall be
signed by the Contractor or his authorised representative and by the Engineer-in-Charge.
2. To ensure proper consolidation, roller must work for at least the number of days assessed on the basis
of output given hereunder. If the roller has not worked for the number of days so assessed, recovery shall be
effected from the contractor for the number of days falling short of the days assessed on the basis of output
stipulated. The recovery shall be effected as under :
(a) Where road roller is hired out only by the Department to the Contractor, at rates given in Sch. 'C'.
(b) Where road roller is hired by the Contractor only from sources other than the Department at Rs .
........... (Rate to be inserted as stated in Note 4 above) per working day of 8 hours.
(c) Where road roller is hired by the Contractor from the Department as also from sources other than
the Department, at higher of the two rates given in Sch. 'C' of contract and para 2 (b) above.
3. The above provision shall not, however, absolve the Contractor of his responsibility of properly
consolidating surfaces as required under the provisions of the Contract.
!)utput per day of 8 hour work
(i) Consolidation of formation surfaces/subgrade 1850 Sq Mts.
(ii) Consolidation of stone soling 23 em. thick with 8 to 10 Tonne Roller 518 Sq. Mt.
(iii) -Ditto- 15 em thick- Ditto- BOO Sq. Mt.
(iv) Consolidation of waterbound macadam (stone metal) 11 em spread thiclmess including 248 Sq. Mt.
spreading and consolidation with binding materials
---------------------,----------~~.
(v) ~Ditto--7.5 Cm- Ditto- 372 Sq. Mt.
(vi) Consolidation of single coat surface dressing 774 Sq. Mt.
(vii) -Ditto-two coat surface dressing 558 Sq. Mt.
(viii) Consolidation of 2.50 em thick premixed carpet including Seal Coat. 600 Sq. Mt.
(ix) Consolidation of 2 em thick premixed Carpet including Seal Coat. 744 Sq. Mt.
(x) Consolidation of bituminous mixture 2 parts of broken stone metal and one part of sand and 372 Sq. Mt.
----------------'-----:::;:::::;:::=====:::::1
bitumen, consolidated thickness'-4"-C=m:::s::..
~:t:f:!?Zj:;Z,<_;:> ·_ >-: - ,-_ .,
-~'el~!JRE VIII
VIII. Specimen Special Condition on Employment of Female Labour in Factories/Deptt/Park, etc.
FEMALE LABOUR
If the Contractor desires to employ female labour on works to be carried out inside the area of a Factory,
Depot, Park, etc and a Female Searcher is not borne on the authorised strength of the Factory, Depot, Park
etc. at the time of submission of the tender, he shall be deemed to have allowed in his tender for pay and
allowances, etc. for a Female Searcher (Class N servant) calculated for the period female labour is employed
by him inside that area. If more than one contractor employs female labour during any month and Female
Searcher(s) has/have to be employed in addition to the authorised strength of the Factory, Depot, Park etc.,
the salary and allowances paid to the additional Female Searcher(s) shall be distributed on an equitable basis
between the contractors employing female labour taking into consideration the values and periods of
completion of their contracts. The GE's decision in regard to the amount recoverable on this account from
any contractor shall be final and binding.
IX. Specimen Special Condition for inclusion in Contracts for Works inside Military Farms
The Contractor will not make use of bullock/animal transport for the transport of building materials,
etc. and shall employ solely mechanical transport for this purpose.
X ii~~~XUI~E
X. Specimen Special condition to be included in the tenders for works to be executed in
Operational/Border Areas
Contractor's plant/ equipment at site
(a) The Contractor sha!I furnish to the Engineer-in-Charge every morning a distribution return of his
plant/equipment on the site of work, stating the following particulars :
(i) Particulars of plant/equipment, its make, manufacture No., Model No. if any, registration No. if
any, capacity, year of manufacture, year of purchase etc.,
(ii) Total No. (quantity) on site of works.
(iii) Location, indicating No. (quantity) at each location on the site of works.
(iv) Purchase value of the date of purchase. For the purpose of this condition, plant/equipment shall
include vehicles i.e. trucks and lorries but neither the workmen's tools nor any manually operated
tools/equipment. The Engineer-in- Charge shall record the particulars, supplied by the Contractor
in the works diary and send the return to the GE for record in his office.
(b) Loss or damage on account of enemy action
If as a result of enemy action, the Contractor suffers any loss or damage, the Government shall
reimburse to the Contractor such loss or damage to the extent and in the manner hereinafter provided :
(i) The loss suffered by him on account of any damage or destruction of his plant/equipment (as
defined in special condition (a) above) or materials or any part of parts thereof. (The amount of
loss assessed by the Accepting officer of the Contract or the CWE in case of contracts by GE, on this
account shall be final and binding).
302 PART-I : PRE-CONTRACT STAGE-APPENDICJ!s
(ii) The compensation paid by him under any law for the time being in force, to any workmen
employed by him for any injury caused to him or to the workmen's legal successors for loss of the
workman's life.
(iii) Payment of compensation for loss or damage to any work or part of work carried out. The amount
of compensation shall be determined in accordance with condition 48 of General Conditions of
Contracts (IAFW-2249).
No reimbursement shall be made nor shall any compensation be payable under the above
provision unless the Contractor had taken Air Defence precautions ordered in writing by the
GE/OC concerned or in the absence of such orders, reasonable precautions. No reimbursement
shall be payable nor any compensation be payable for any plant/ equipment or materials not lying
on site of work at the time of enemy action.
REIMBURSEMENT/REFUND ON VARIATION IN PRICES

1. The following points should be noted particularly :
(a) The periodicity for working out the variations will be three months. The first variation would be
for the period of three months reckoned from the last due date for receipt of tender.
(b) Wholesale Price Index for all commodities are published every month. Thus the Index applicable
for any day shall be the one applicable for the preceding month.
(c) As the adjustments are to be made on a quarterly basis, commencing from the last due date for
receipt of tender RARs should be timed in such a manner that the gross value of work done upto
the corresponding date is readily available.
(d) The monthly Index numbers of wholesale prices for all commodities published by the Economic
Advisor to Govt. of India, in the first instance, are generally termed 'Provisional'. Final Index
Numbers for the corresponding month are published subsequently; say after an interval of 6 to 8
weeks or so. It is to be ensured that the variation are worked out based on the 'Final' Index
numbers. These are available on website http://eaindustry.nic.in.
(e) Latest base years of indices shall be specified in conditions.
(f) The term "fresh law or statutory rule or order" used in the aforesaid Conditions includes not only
Central law or Central rule or order but also the State law or State rule or o"ier.
REIMBURSEMENT/REFUND ON VARIATION IN PRICES

Refer condition 63 of the General Conditions of Contracts (IAFW-2249)/Re-imbursement/refund on
variation of prices. The condition 63 of the General Conditions of contracts shall be deemed to be modified to
the extent mentioned hereinafter. Increase or decrease in prices of materials and fuel shall be adjusted on the
basis stipulated hereinafter irrespective of the actual variation in prices (to the contractor) :
(a) Materials : The materials cost component including the cost of materials issued under schedule 'B'
in accordance with Condition 10 (B) of IAFW-2249, for the contract as a whole shall be taken asK M o/o of the
value of works executed under the contract;
wl -Wo
EM = (VMz - VMl) x ----"----"-
Wo
Variation in prices of materials shall be worked out by applying the following formula :
(KM X Vg)
VM = + (Vs -VB)
100
EM = Variation in price of material to be adjusted.

K M = Constant representing the percentage cost of materials including schedule 'B' materials as
compared to the total value of work under the contract as a whole. The value of K M for this work shall be
.......... (........ in words) only.
Vg = Gross value of work done at contract rates upto the last date of period of reckoning.
Vs =Value of all materials lying at site for incorporation in the work including materials issued under
Schedule 'B' and including materials brought and paid or payable to contractor under Prime Cost Sum and or
Star Rate (s).
v8 =Value of all materials (out of Vg and Vs) issued under schedule 'B' plus value of all materials
brought and paid or payable to contractor under prime Cost Sum and/or Star Rate (s).
W 1 = Whole sale price index for all commodities (base year as applicable = 100) published by Economic
Adviser to the Government of India, as on the date of commencement of the period of reckoning. In case the
original contract period is extended under Condition 11 of IAFW-2249, the price index as applicable on the
date of commencement of the last period of reckoning before the original completion date (s) (phase wise
except where phasing has been done only for sample quarter/block) shall oi:ily be applicable during the
extended period. If phasing has been done for oi:ily sample quarter/sample block, the price index as
applicable on the date of commencement of the last reckoning period before the original completion date of
the project as a whole shall oi:ily be applicable during the extended period.
w0 =As for W1 but the inE~J( as. on.tbe Jast
--··--
"--·---·-'"''-"~·-···~·-"·' --
due date
·-·-
'
forrec~ipJQfJheJender...
VM2 =Value of material upto the last date of the period of reckoning for which price variation
adjustable as worked out as per formula for VM.
VMl =-do- but as on date of inunediate preceding period of reckoning.
{b) Fuel : Fuel cost component for the contract as a whole shall be taken taken asK p o/o of the value of
work.
E
P
=(Kp100
xVgl)xFl~F~o~
-Fo
Where, E p =Variation in price of fuel to be adjusted.

K p = Constant representing the percentage cost of fuel compared to the total value of work under the
contract as a whole. The value of K p for this work shall be .......... (........ in words) only.
Vg 1 = Gross value of work done during the period of reckoning using values of Vg for calculating VM 1
and VM 2 under clause XI (A) (a) above.
F1 = Whole sale price index for sub group for fuel, power, light & lubricants (base year as applicable
=100) published by Economic Adviser to Govt. of India as on the date of commencement of the period of
reckoning.
F0 =As for F1 but the index as on the last due date for receipt of tenders.
1. No adjustment, whatsoever, due to variation in prices of materials and fuel on account of coming
into force of any fresh law or statutory rule or order as provided in Condition 63 of IAFW-2249 or
otherwise than provided in this condition shall be made.
2. (a) Material : No adjustment in prices shall be made for any work done with materials brought
at site after the stipulated date of completion of the work under contract except as contemplated
under definition of W 1 .
(b) Fuel : No adjustment in prices shall be made for any work done with material brought at site
after the due date of completion or extension of time granted under Condition 11 of IAFW-2249
(whichever is later) for the work under the contract.
-~~~~~~~~~~~~~~~~~~~~~~~~~----------- -------------
3. Periodicity of working out the variations will be three months. The last calculation shall however
be done for the value of work at contract rates and materials lying at site for incorporation in the
work as on date of completion or extension thereof as mentioned in Note 2 above. Valuation of
RARs is to be timed in such manner that relevant date required for quarterly calculation under this
condition is available from RARs. Amount payable relevant to work done and materials collected
in any quarter will be worked out after firm whole sale price indices for the relevant quarter are
available. Once the amount adjustable for any quarter is worked out the same shall be adjusted as
and alongwith advance on account payment under condition 64 of IAFW-2249 in the subsequent
RAR (s).
4. Any dispute arising out of interpretation or application of this Special Condition shall be referred
to the Accepting Officer whose decision shall be final and binding.
5. For purposes of calculation of retention money; liquidated damages, sales tax/service tax on works
contracts, deduction of income tax at source and recovery of water charges (in case of unmetered
supply) the value of contract as revised by the above price variation will be taken into account.
6. In cases, ''where value of VMz - VM 1 works out to minus on account of higher utilisation of
schedule B stores (i.e. value of Sch. B stores under contract as a whole is higher thanKM value)
and the reimbursement on account of variation in prices of materials works out to be negative
inspite of the whole sale price index for all commodities published by Economic Adviser to
Government of India going up from W 0 ", reimbursement on account of variation in prices of
materials shall be treated as "Nil".
REIMBURSEMENT/REFUND ON VAlUATION IN PRICES

Value of K M /K 1 /K p is given below :
>'' ·'····· ' ' :J. <,x;•, .;
r·;;,~~\.i l'ii
'c.i;;< ;,<"+ ' ';,, ,,.,',. ; _. ;;·,,;..c~t: ·''··., .......... ,
r:!.
'
•. ·•..
; > \
.• ,· ····'· < ·.
••.·•... •.••.. ·.· . ·...........
'. /i ·~"""" •
< . < < ) \ ; ; ;
it~<
L
.. ·......... ··.··.· ;
I·•··•••,·
~. . r.•.
. . ':~ ..
~
it i . .··.•. ··•••· ·'.'····..·•.• ••· .·•.. ,., •·..· 2 •.••.. . ·.·•·•·• ·.• •···. ; ; '< l''<.a.·••·••····•.· ,.'.' ·;,,····
~· rs•·· I · 6 ;··
1. 60% 20o/o 1.5% 3.5%
"'
2. loTM 60% 20o/o 1.5% 3.5%
3. 58% 21 o/o 2% 4%
4. ·type :steel 58o/o 22o/o 1% 4o/o

5. IAdm Blocks, • M> Auditorium etc. 60o/o 20o/o 1.5% 3.5%
6. IRCCOH 51% 29o/o 2% 3%
7. IPiling Works 51% 25o/o 3% 6%
8. [_!\if Field Pavements 59% 17% 3% 6%
9. Road Work not substantial earth work 57% 21o/o 2o/o 5%
10. Central l plants, Water 1 plants etc. 65o/o 18o/o 0.5% 1.5%
11. Electrification Works. 70o/o 13.5% 0.5% 1o/o

12. Central Works 70o/o 13.5% 0.5% 1%
Note : While indicating values of KM, KL, & Kp in Special Condition, the values shall be indicated without"%" as suffix since 100 has
already been indicated as divisor in the escalation formulae.
!ART-I : PRE-coNTRACT
' STAGE-APPEN~ICES
-----------------------------~=========
305
~-~~~)(URE XII
lpecial condition for Inclusion in Tenders for Work of Electric Lift Installation
1. Excise duty
If during the execution of the work, Excise Duty on any material incorporated in the work or on the
t;ontract as a whole is increased/decreased by the Government and if such increase/ decrease is more than
[ 0% of the Excise Duty as prevailing on the date of acceptance of tender, the variation over and above the
~aid 10% shall be reimbursed to Contractor/refunded to Government, provided any increase so payable is
pot, in the opinion of CWE (whose decision shall be final and binding) attributable to delay in execution of
e Contract within the control of the Contractor and provided that the Contractor gives written notice and
eeps books of account and other documents as laid down in Condition 63 of IAFW-2249.
2. Price Variation
The price quoted shall be deemed to be based on the cost of raw materials, components and labour as
on the date of submission of tender and the same shall be deemed to be related to whole sa1e Price Index for
metal Products and all India Average Consumer Price Index Number for Industrial Workers (General Index)
as specified below. In case of any variation in these index number, the price shall be subject to adjustment up
or down in accordance with the following formula :
P= Po
100
·[ls + 55MP + 15 W 0 (D)+ 15 (W 0
MP0 W0 W0
(I)]
Wherein, I
P "'Amount payable as adjusted in accordance with the above price variation formula.
P0 "' Amount of Contract as accepted.
MP 0 "'Wholesale Price Index Number for Metal Products as published by the Office of the Economic
Adviser, Ministry of Industry, Government of India, in tbeir weekly bulletins (revised Index Number of
Wholesale Prices in India-base year as applicable = 100) for the week ending 1st Saturday relevant calendar
month.
W 0 "'All India Average Consumer Price Index Number for Industrial Workers (base 2001 =100)
(General Index), as published by Labour Bureau, Ministry of Labour, Govt:. of India.
The above index numbers i.e. MP 0 and Wo are those published by Govt:. as prevailing on the first
working day of the calendar month three. months prior to the last due date for receipt of tenders e.g. when
the last due date for receipt oftenders is in June 2005, then the applicable index MP 0 , will be as prevailing
on the first Saturday of March 2005, and W 0 -All India Average Consumer Price Index Number would be that
for the month of March 2005.
MP "'Wholesale Price Index Number for Metal Products as published by the office of Economic Advisor,
Ministry of Industry, Govt:. of India, in their weekly Bulletin Revised Index Number of Whole Sale Price, (base
1993-94=100).
The applicable wholesale Price Index Number for Metal Products would be that prevailing on the 1st
Saturday of the month covering the date three months prior to the date of delivery, of first lot of
manufactured materials for each elevator separately.
W 0 CD)= All India Average Consumer Price Index number for Industrial workers (base 2001 = 100)
(General Index) as published by Labour Bureau, Ministry of Labour, Government of India.
Applicable all India Average Consumer Price Index Number for Industrial Workers as published by the
Labour Bureau, Ministry of Labour, Government of India, would be for the month, three months prior to the
date of delivery of first lot of manufactured materials.
'
j
l06 PART-I : PRE-CONTRACT STAGE-APPilNDICl!s •
W 0 (I)"' All India Average Consumer Price Index Number for Industrial Workers (base 2001 ~ 10~
General Index) as published by Labour Bureau, Ministry of Labour, Government of India.
The applicable All India, Average Consumer Price Index number for Industrial Workers as published by
Labour Bureau Ministry of Labom; Government of India, would be for the month, three months prior to the
date of completion of installation. E.g. if the date of delivery in terms of clause given below falls, in
December 2005 the applicable index 'MP' would be as prevailing on the week ending 1st Saturday of
Septemeber, 2005, and W 0 (D), will be for the month of September 2005. If the date of completion of each
elevator/installation is June 2012 the applicable 'W 0 CIY will be for the month of March 2012.
(a) The date of delive1y shall be the date on which trl.e first lot of manufactured materials for each
elevator is notified as being ready for inspection, despatch (in the absence of such notification, the
date of manufacturer's despatch note shall be considered as the date of delivery).
(b) The date of completion of each elevator installation shall be the date on which the work is certified
as completed and is available for inspection (in the absence of such notification the date of
manufact]lrer's note intimating such completion shall be considered as the crucial date) or the
contracted completion date for such installation or part of installation (including any agreed
extension thereto), whichever shall be earlier.
(c) The Index number for metal products is published weekly, but if there are any changes, the same
are incorporated in the issue appearing in the following week. For the purpose of this Price
Variation Clause the final Index figures shall apply.
3. The provisions of this Speci.sJ Condition shall supersede the provisions of Condition 63 of lAFW-2249
(MES General Conditions of Contract) and the provisions of Condition 63 ibid shall not be applicable.
SPECIAL CONDmON
REIMBURSEMENT/REFUND ON VARIATION IN PRICES- WAGES OF LABOUR (REFER
CONDmON 63 OF IAFW~2249) ,,
Increase or decrease in prices consequent on variation in wages of labour shall be adjusted on the basis
stipulated hereinafter irrespective of the actual variation in price-wages of labour to the contractor.
LABOUR
The labour component for the work under the contract as whole shall be taken a K 1 of the value of the
work executed under the contract. Variation in labour wages shall be worked out by applying the following
formula:
KL L -L
E1 = -- x v.1 1 0
x --"---"-
Ioo o L0
E 1 = Variation in wages of Labour reimbursement to be made to the Contractor or refund to be made by
the Contractor.
K r, ~ Constant representing the percentage cost of labour element as compared to the total of the work
under the contract as a whole. The value of K1 for the work shall be ............. (in words ................. )
Vgl = Gross value of work done at contract rates during the period of reckoning less value of work paid
or payable to the Contractor based on actual cost (e.g. star rate (s), work executed under prime cost sum
etc.) during the period of reckoning.
L1 = Minimum wage in rupees of an unskilled adult male mazdoor as fixed under any law, Statutory
rule or order as on the date of commencement of the period of reckoning.
L 0 ~As for L1 but the minimum wage in rupees of an unskilled adult male mazdoor as on the last due.
date for receipt of tenders. If labour wage on date receipt tender are increased afterward with retrospective •
effect the value of L 0 shall be fixed keeping in view the following aspects :
...... ------ - - - - - - -
(a) If the increase/ decrease in wages of labour are made known to the public by any means of media
before receipt date of tender but the same is officially notified thereafter giving retrospective
effect, the value of "Lo" shall be as per notification though made subsequently.
(b) If a net-wage comprises a fixed basic wage and the living allowance revised from time to time
based on consumer price index (CPI) and increase CPI is made known to the public by any means
before the date of receipt of tender, the "L 0 " will be revised wages corresponding to revised CPI,
though the formal notification for the net wage (considering the revised living allowance
corresponding to revised CPI) is made subsequent to date of receipt of tender.
(c) In case the labour enforcement officer makes the announcement before date of receipt of tender
but gazette notification is made subsequently making wages applicable with retrospective effect,
the value of "Lo" shall be as per Gazette Notification though subsequently made.
(d) If the increase/decrease in wages of labours is notified/ announced subsequent to receipt of tender
with retrospective effect without making the same publicly known by means of publicity/media
prior to the date of receipt of tender, then, the value of "Lo" shall be as per wage known at the time
of receipt of tender.
Notes : 1. The Contractor shall within rea.sonable time of his becoming aware of any alteration to the payment of wages of
labour consequent on fixation of minimum wages under any law, statutory rule or order, give written notice thereof to the GE
stating that the same is given pursuant to this Special Condition together with all information relating thereto which he may
be in a position to supply.
2. Irrespective of the variation in minimum wages for any category of labour, for the purpose of adjustment under this
Special Condition, the variation in minimum wage fixed under any law, statutory rule or order for an unskilled adult male
mazdoor, if any, shall only form the ba.sis.
3. Periodicity of working out the variation in wages of labour will be three months commencing from the la.st due date for
receipt of tender. The last adjustment for variation in wages of labour shall however, be done for the period up to the date of
completion or extended date of completion. Valuation of price adjustment due to increa.se/decrea.se in minimum wages under
any law, statutory rule or order for the purpose of making reimbursement/refund in RARs, will be timed in such manner that
relevant data required for quarterty calculation under this Special Condition is available from the RARs. The first price
adjustment in respect of variation in wages of labour will be worked out for the relevant quarter during which alteration to
the wages of labour took place. For implementing this provision, the period of reckoning in such quarter will have to be
divided into two periods i.e., the first period up to the RAR payable immediately after the date of variation and the other up
to the end of the quarter. Value of~ at the beginning of the other period shall be the altered wage. If there are more than one
change in wages in a quarter there will be more than two periods of reckoning on similar ba.sis. Amount payable relevant to
work done for any quarter will be worked out after the minium wage of an unskilled adult male mazdoor a.s fixed under any
law, statutory rule or order for the relevant quarter is available. Once the amount adjustable for any quarter is worked out,
the same shall be adjusted in subsequent RAR as "advance on account" adjustments alongwith adjustment for Materials' and
'Fuel'.
4. No adjustment in prices shall be made for any work done after the due date of completion or extension of time granted
under Condition 11 of IAFW-2249 (whichever is later) for the work under the Contract.
5. No adjustment, whatsoever, due to variation in wages of labour on account of coming into force of any fresh law or
statutory rule or order a.s provided in Condition 63 of JAFW-2249 or otherwise, than provided in this Special Condition shall
be made.
6. Any dispute arising out of interpretation or application of this Special Condition shall be referred to the Accepting Officer
whose decision shall be final and binding.
7. For purposes of calculation of retention money, liquidated damages, sales tru;lservice tax on works contract, dedr•ction cf
income tax at source and recovery of water charges (in ca.se of unmetered supply) the value of contract a.s revised by the
above price variation will be taken into account.
I
I
l
~
----~-----------------------~~~--~-----~~-
308 PART-I: PRE-CONTRACT STAGE-APPENDICES
Advances on Account Against Materials-Special Condition for Inclusion in Tenders

1. Government of India, has accorded sanction for inclusion of a Special Condition, providing for
payment of full value of materials (fittings and fixtures and other manufactured items which do not lose their
identity brought on the site) as advance on account, against Bank Guarantee. This Special Condition is to be
incorporated only in tenders for works whose estimated cost at market rates exceeds Rs. 50 lakhs.
2. It will be noted from para 1 of the Special Condition that, advance on account to the full value, is
permissible only in respect of fittings and fixtures and other manufactured items which do not lose their
identity. Accepting Officers are required to list out such items, applicable to each tender, before issue of
tenders. The intention is that Contractors should be able to procure in advance, fittings and fixtures and such
manufactured items, though these may be required for incorporation in the work only at a late stage, thus
relieving Government of the liability of reimbursement due to escalation of prices, in terms of the Contract.
Materials like bricks, pre-cast concrete articles etc., though might come under the category of manufactured
items shall not be included in the list, since they lose their identity after incorporation in the work.
Advances on Account against Materials-Special Condition for Inclusion in Tenders whose
Estimated Cost at market rate exceeds Rs. 50 Lakhs
"Condition 64 IAFW-2249-Advances on Account"
Add the following in continuation of Para 8 "Provided further, the Contractor may be paid advance on
account to the full value of the undermentioned materials* only, brought on the site, on his furnishing
Guarantee Bond (s) from a Scheduled bank for the amount of the retention money which should otherwise
be recoverable from him under Contract :
*Accepting officer to list out the materials before issue of tenders. The materials should be confined to
"fittings and fixtures" and other manufactured items which do not loose their identity
(a)
(b)
(c)
(d)
2. The Bank Guarantee Bond(s) shall be executed for a period and on a form as directed by the
Accepting officer. The Contractor shall further arrange to extend the period of Guarantee Bond(s) if and
when necessary, as directed by the Accepting Officer or shall furnish fresh Guarantee Bond(s) of similar value
in lieu".
General Conditions of Contracts (IAFW-2249-1989 Print)

For
*Retain as applicable.
*Lumpsum Contracts {IAFW-2159)
*Term Contracts for Artificers Works (IAFW-1821)
*Measurement Contracts (IAFW-1779 and 1779-A)
A copy of the General Conditions of Contracts) (!AFW-2249-1989 Print) with errata 1 to .............. and
amendments No 1 to .................. has been supplied to me/us and is in my/our possession. !/We have read
and understood the provisions contained in the aforesaid General Conditions of Contracts before submission
of this tender and I/We agree that !/We shall abide by the terms and conditions therefore, as modified, if any,
elsewhere in these tender documents.
1-
It is hereby further agreed and declared by me/us, that the General Conditions of Contracts
(IAFW-2249-1989 Print) including Condition 70 thereof pertaining to settlement of disputes by arbitration,
containing 33 Pages (Serial Page Nos .......... to ......... ), with errata 1 to .......... and amendments Nos 1 to
............ form part of these tender documents.
(for Accepting Officer) (Signature of Contractor)
Dated ....................... . Dated ........................... .
\fWf:?K/i:~:G_r; >:< ::c \ :',- _----:

iil~f!I(~~XU I"! E.· XV I
Special Condition for Reimbursement/refund on Variation in "Taxes Directly related to
Contract Value"
(a) The rates quoted by the Contractor shall be deemed to be inclusive of all taxes (including Sales
tax/VPJ on materials, sales tax/VAT on Works Contracts, turnover tax, Service tax, Labour welfare cess/tax
etc.), duties, Royalties, Octroi & other levies payable under the respective statutes. No reimbursement/refund
for variation in rates of taxes, duties, Royalties, Octroi & other levies, and/or imposition/abolition of any
new/existing taxes, duties, Royalties, Octroi & other levies shall be made except as provided in sub para (b)
here-in-below.
(b) (i) The taxes which are levied by Government at certain percentage rates of Contract Sum/Amount
shall be termed as "taxes directly related to Contract value" such as sales tax/VAT on Works Contracts,
turnover tax, Service tax, Labour welfare cess/tax and like but excluding Income tax. The tendered rates shall
be deemed to be inclusive of all "taxes directly related to Contract value" with existing percentage rates as
prevailing on last due date for receipt of tenders. Any increase in percentage rates of "taxes directly related to
Contract value" with reference to prevailing rates on last due date for receipt of tenders shall be reimbursed
to the Contractor and any decrease in percentage rates of "taxes directly related to Contract value" with
reference to prevailing rates on last due date for receipt of tenders shall be refunded by the Contractor to the
Govt./deducted by the Government from any payments due to the Contractor. Similarly imposition of any
new "taxes directly related to Contract value" after the last due date for receipt of tenders shall be
reimbursed to the Contractor and abolition of any "taxes directly related to Contract value" prevailing on last
due date for receipt of tenders shall be refunded by the Contractor to the Govt./ deducted by the Government
from the payments due to the Contractor.
(ii) The contractors shall within a reasonable time of his becoming aware of variation in percentage
rates and/or imposition of any further "taxes directly related to Contract value" give written notice thereof to
the GE stating that the same is given pursuant to this Special Condition, together with all information
relating thereto which he may be in a position to supply. The Contractors shall also submit the other
documentary proof/information as the GE may require.
(iii) The Contractor shall, for the purpose of this condition keep such books of account and other
documents as are necessary and shall allow inspection of the same by a duly authorized representative of
Government, and shall further, at the request of the GE furnish, verified in such a manner as the GE may
require, any documents so kept and such other information as the GE may require.
(iv) Reimbursement for increase in percentage rates/ imposition of "taxes directly related to Contract
value" shall be made only if Contractor necessarily and properly pays additional "taxes directly related to
Contract value" to the Government, without getting the same adjusted against any other tax liability or
•
without getting the same refunded from the concerned Governm_ent Authority and submits documentary
proof for the same as the GE may require."
· Mobilisation Advance Non-Revocable Bank Guarantee

(a) Interest bearing mobilisation advance of Rs ..... * ......... (Rs ... * ................... ), shall be given to the
Contractor if he so desires and on his specific written request, in two instalments, on production of a
non-revocable Bank Guarantee(s), for the amount at least llOo/o of the advance on an approved form from a
Nationalised/Scheduled Bank. The Bank Guarantee(s) shall indemnify the Government against non-refund
of mobilisation advance and also against default on Contractor's part in performance of the Contract. The
rate of interest shall be ...... * ........ o/o per annum, simple interest.
*to be inserted by the Accepting Officer while issuing the tenders.
(b) The first instalment of mobilisation advance shall be SOo/o of advance and shall be paid to the
Contractor within 30 days of acceptance of Bank Guarantee(s) of llOo/o of the same amount furnished by
him, by the Accepting Officer. The second instalment of the balance amount shall be paid to the Contractor
after 6 months of payment of the first instalment provided Bank Guarantee(s) for corresponding amount
increased by lOo/o has/have been furnished by the Contractor, at least one month in advance and accepted by
the Accepting Officer.
(c) The total amount of mobilisation advance, together with interest shall be recovered from the
payments made to the contractor against ''Advance on Account," under condition 64 of IAFW-2249, MES
General Conditions of Contracts.
(d) The amount of mobilisation advance shall be recovered in monthly** fortnightly instalments as
stipulated hereinafter.
**Delete whichever is inapplicable.
(i) Against the first instalment of mobilisation advance, the first instalment of recovery shall be effected
from the 'Advance on Account' payment made immediately following the payment of mobilisation advance
and the last instalment of recovery shall be effected during the third/fourth month*** preceding the month
in which the due date of completion stipulated in first Work Order falls. The various instalments of recovety
shall be of equal amounts.
***Specify third month in respect of contract having a period of completion of 24 months or less and fourth
month in respect of contracts having a period of completion exceeding 24 months.
(ii) Against the second instalment of mobilisation advance of Rs .......... lakhs, the first instalment of
recovery shall be effected from the 'Advance on Account' payment made immediately following the payment
of mobilisation advance of Rs ........... lakhs and the last instalment of recovery shall be effected .during the
third/fourth month*** preceding the month in which the due date of completion stipulated in first Work
Order falls. The various instalments of recovery shall be of equal amounts. The recovery in instalments of this
mobilisation advance of Rs ....... lakhs shall be in addition to the recovery in instalments of the mobilisation
advance (first instalment) vide sub para d (i) above.
*''*Specify third month in respect of contract having a period of completion of 24 months or less and fourth
. month in respect of contract having a period of completion exceeding 24 months.
(e) The Contractor may furnish one Bank Guarantee or a number of Bank Guarantees equal to number
of instalments for recovery, each to match the quantum of recovety to be effected from the 'Advance on
Account'. ln case recovery is not possible to be effected from any particular 'Advance on Account' for reasons
of non-submission of claim for payment of 'Advance on Account' or for any other reasons whatsoever, the
recovery due shall be made by encashing the Bank Guarantee.
'
'~I
: PRE-CONTRACT STAGE-APPENDICES 311
~~~~ii;)(URE XVIII
i\'Oi~ks at Andaman & Nicobar Group of Islands : Grant of Special Condition for Inclusion
the Tenders
This Special Condition will be included in tenders for works in Andaman and Nicobar Group of Islands
Navy and Air Force Works), the Contracts for which are to be accepted by Chief Engirteer/CWE/GE.
PaJ'fiUmt of Advance against Bank Guarantee
(a) An interest free advance of 10% of contract shall be paid to the contractor by t.'le department on
'vnJdl!CtJion of Bank Guarantees vide (e) below on approved form from a Nationalised/Scheduled Bank for
amount equal to 110% of the advance. The Bank Guarantee(s) shall indemnify the Government against
noJil-r<etulnO of Advance and also against default on contractor's part in performance of contract.
(b) The first instalment of mobilisation advance shall be 50% of advance and shall be paid to the
;Cmltr<ICt<>r within 30 days of acceptance of Bank Guarantee(s) of 110% of the same amount furnished by
by the Accepting Officer. The second instalment of the balance amount shall be paid to the Contractor
6 months of payment of the first instalment provided Bank Guarantee(s) for corresponding amount
mc:reaseu by 1Oo/o has/have been furnished by the Contractor, at least one month in advance and accepted by
Accepting Officer.
(c) The total amount of mobilisation advance shall be recovered from the payments made to the
contractor against "Advance on Account" under Condition 64 of lAFW-2249, MES General Conditions of
(d) The amount of mobilisation advance shall be recovered in monthly*'' fortnightly instalments as
stipulated hereinafter.
**Delete whichever is inapplicable.
(i) Against the first instalment of mobilisation advance, the first instalment of recovery shall be effected
from the \<\dvance on Account' payment made immediately following the payment of mobilisation advance
and the last instalment of recovery shall be effected during the third/fourth month*** preceding the month
· in which the due date of completion stipulated in first Work Order falls. The various instalments of recovery
shall be of equal amounts.
***Specify third months in respect of contract having a period of completion of 24 months or less and
fourth months in respect of contracts having a period of completion exceeding 24 months.
(ii) Against the second inst2Jment of mobilisation advance of Rs ............ !akhs the first instalment of
recovery shall be effected from thP. \<\dvance on Account' payment made immediately following the payment
of mobilisation advance of Rs .......... lakhs and the last instalment of recovery shall be effected during the
third/fourth month*** preceding the month in which the due date of completion stipulated in first Work
Order falls. The various instalments of recovery shall be of equal amounts. The recovery in instalments of this
mobilisation advance of Rs ........ lakhs shall be in addition to the recovery in instalments of the mobilisation
advance (first instalment) vide sub para d (i) above.
***Specify third months in respect of contract having a period of completion of 24 months or less and
fourth months in respect of contracts having a period of completion exceeding 24 months.
(e) The Contractor may furnish one Bank Guarantee or a number of Bank Guarantees equal to number
of instalments for recovery; each to match the quantum of recovery to be effected from the l\dvance on
Account'. In case recovery is nor possible to be effected from any particular \<\dvance on Account' for reasons
of non-submission of claim for payment of \<\dvance on Account' or for any other reasons whatsoever, the
recovery due shall be made by encashing the Bank Guarantee.
312 PART-I : PRE-CONTRACT STAGE-APPENDICE!
(f) Although interest fee advance shall be paid to the contractor by the department, but if contract i
terminated due to default of the contractor the mobilisation advance shall be deemed as interest bearin1
advance at an interest rate of ......... **** .......... % to be compounded quarterly.
****To be stipulated depending upon prevailing rate at the time of issue of tender.
lt~~~~~URE XIX
Qualified Tradesmen : (Applicable for Works Costing Rupees One Crore or More)
In compliance with Condition 26 of IAFW-2249 (General Conditions of Contracts), the contractor shaU
employ skilled/semi skilled tradesmen who are qualified and possessing certificate in particular trade from
Industrial Training Institute (ITI)/National Institute of Construction Management and Research (NICMAR);
National Academy of Construction (NAC) Hyderabad, similar reputed and recognized Institutes by
State/Central Government, to execute the works of their respective trade. The number of such qualified
tradesmen shall not be less then 25% of total skilled/semi skilled tradesmen required in each trade. The
contractor shall submit the list of such tradesmen alongwith requisite certificates to Garrison Engineer for
verification and approval. Notwithstanding the approval of such tradesmen by GE, if the tradesmen are found
to have inadequate skill to execute the work of their trades, leading to unsatisfactory workmanship, the
contractor shall remove s•Jch tradesmen within a week after written notice to this effect by the GE and shall
engage other qualified tradesmen after prior approval of GE. GE's decision whether a particular tradesmen
possesses requisite qualification, skill and expertise commensurate with nature of work, shall be final and
binding. No compensation whatsoever on this account shall be admissible.
I
I
SPECIAL CONDITION FOR CONCILIATION
!
1. Consequent to enactment of the Arbitration and Conciliation Act 1996, and with an objective to
encourage settlement of disputes through Conciliation, President has accorded sanction to include special
1;;,
Condition for Conciliation in the MES contracts to be concluded by Zonal/ Project Chief Engineers.
2. On finalisation of co:1ciliation proceedings, the settlement agreement shall be signed by Accepting
Officer on behalf of Union of India after ascertaining the availability of funds.
3. In case the net total amount of payment involved in the settlement agreement exceeds Rs. 2.00 lakhs,
Accepting Officer will consult next higher authority and obtain clearance before conclusion of Conciliation
proceedings.
4. The amount of settlement agreement shall be treated as an agreed amount payable under the
contract and such payment shall be processed through a hand receipt.
SPECIAL CONDITION FOR CONCILIATION
1Scope ofConlliUaitqj
1.1 This is applicable to contract concluded by Zonal/Project Chief Engineers.
1.2 The scope of conciliation shall be restricted to the following types of disputes with financial limits as
indicated therein :
(a) Disputes relating to levy of compensation for delay in completion-actual amount of compensation.
(b) Disputes relating to technical examination of works.
(c) Disputes relating to interpretation of the provisions of the contract with reference to their
application to parties.
(d) Disputes relating to non return of Schedule 'B' stores over-issued to contractor.
(e) Any other dispute having fair chances of being resolved by conciliation and considered fit to be
referred to conciliation by the parties.
, '.!1 II,'
For item (b), (c), (d) and (e) each as stated above the financial limit shall be Rupees two lakhs or one
percent of the contract amount whichever is less.
2 Commencement ofconciliil.tior(~~o,~~~~~~i
2.1 The party initiating conciliation shall send to the other party written invitation to conciliate, briefly
identifying the subject of the dispute.
2.2 Conciliation proceedings shall commence when the other party accepts in writing the invitation to
conciliate.
2.3 If the other party rejects the invitation, there will be no conciliation proceedings. If the party
initiating conciliation does not receive a reply within 30 days from the date on which he sends or within such
other periods of time as specified in the invitation, he may elect to treat this as a rejection of the invitation to
conciliate and if he so elects, he shall inform in writing the other party accordingly.
3 Number otQ~~~i(lll
There shall be a Sole conciliator.
_4 Appomtmeni9tij~i!alil
All disputes brought out in para 1.2 (a) to (c) above shall be referred to the sole Conciliator viz. Serving
Officer not below the rank of Superintending Engineer/Superintending Engineer (QS & C) having degree in
Engineering or equivalent or having passed finaV direct final examination of Sub division II of Institution of
Surveyors (India) to be appointed by the Engineer-in-Chief, Army Headquarters, New Delhi or in his absence
the Officer officiating as Engineer-in-Chief or Director General of Works specifically delegated by the
Engineer-in- Chief in writing.
5 status ofEffectof$eite~lli81
The settlement agreement signed by the parties as a result of conciliation proceedings shall have the
same status and effect as it is an arbitral award on agreed terms.
" APPEMDIXi£2~
' ,,,· '-" ,·---"-'''-j\C,·•,,,,;&(;
SPECIMEN CONDffiONS/PROVISIONS TO BE INCLUDED IN TENDER DOCUMENTS (REFER PARA 8.2)

1. Employment of personnel [Refer Para 8.2 (a)]
(a) Contractor shall employ only Indian Nationals as his representatives, servants and workmen after
verifying their antecedents and loyalty. He shall ensure that no person of doubtful antecedents and
nationality is in any way; associated with the work. If for the reasons of technical collaboration or other
considerations the employment of foreign national(s) is unavoidable, the contractor shall furnish full
particulars to this effect to the Accepting Officer at the time of submission of the tender. As a proof that the
contractor has employed only Indian Nationals, he shall render a certificate to GE within one month from the
date of acceptance of tender to this effect. In case the GE desires, contractor will have the police verification
done of personnel employed by him.
(b) The GE shall have full powers and Vlithout giving any reason to order the contractor immediately to
cease to employ; in connection with his contract, any agent, servant or employee whose continued
employment is, in his opinion, undesirable. The contractor shall not be allowed any compensation on this
account.
(c) The contractor's attention is also drawn to condition 25 of IAFW-2249 in this connection.
2. Approval of Sample of Workmanship in Building [Refer Para 8.2 (b}]
(i) To determine the acceptable standard of workmanship, one quarter (to be decided by the GE) shall
be completed by the contractor well in advance as directed by GE under close supervision of the
Engineer-in-Charge and shall be got approved from the GE. The workmanship of various trades and finishes
of this quarter shall serve as guiding samples for work in the remaining quarter/buildings.
(ii) The Sample Quarter shall be completed in all respects as per time of completion specified in
Schedule '/\.
3. Water [Refer Para 8.2 (c)]
3. (A) Refer to condition 31 of!AFW-2249.
(a) Water will be supplied by MES to the contractor at points shown on site plan from piped system
and shall. be paid by the contractor @ Rs. 3.75 per Rs. 1000/- worth of work done priced at
contract rates in case of unmetered supply~--CWhere-itis"iiafpossible to meter the supply of water
viz repairs, addition/alteration etc. involving number of locations and at all-in-cost rate of
preceding year (to be decided by CE Zone/Project) in case of metered supply. The contractor shall
arrange at his own expense for storage of water and lifting, pumping, carrying or conveying water
to the site of work as required. In case water points are not marked on the site plan, the water shall
be supplied at one point at decided by GE.
(b) The supply of water may not be continuous. The contractor shall be deemed to have ascertained
the hours of availability of water before submitting his tender. The MES do not guarantee the
continuity of water supply and no compensation shall be allowed for intermittent or inadequate
water supply and break down in the system. If the supply is not sufficient the contractor shall
make his own arrangement to supplement the water supply at his own cost. For this purpose the
contractor shall be allowed to install hand pumps at the site of work at places as directed by the
Engineer-in-Charge without any charges from the contractor on this account. The contractor shall
remove the hand pumps as and when asked to do so by Engineer-in-Charge or GE and in any case
on completion of work. No compensation whatsoever shall be admissible to the contractor if the
GE requires him to remove the pumps before completion of work.
OR
3. (B) Referto condition 31 of!AFW-2249.
f-l : PRE-CONTRACT STAGE-APPENDICES 315
Water will not be supplied by the MES. The tenderers are advised to visit the site of works to ascertain
lability of water from civil sources or from nearby natural soarces outside Ministry of Defence land. The
:ractor shall be allowed, if he so desires, to install hand pumps, tube wells at site of work at places as
roved by Engineer-in-Charge and nothing shall be charged from the contractor. The contractor shall
.ove the hand pumps, tube wells as and when asked to do so by Engineer-in-Charge/GE and in any case
completion of the work and before issue of completion certificate, unless GE desires that these hand
nps, tube wells be left in position and the contractor agrees to do so without claiming cost thereof from
>artrnent. No compensation whatsoever shall be admissible to the contractor, if he is required to remove
pump(s) tube wells before completion of work. Use of water from such sources shall only be permitted if,
nd after testing, potable and fit for use in the work. The water from such sources shall be got tested by the
!tractor from laboratory approved by the GE, who shall after satisfying himself permit the contractor to
! the water from such sources. Testing charges shall be borne by the contractor.
Testing of Materials [Refer Para 8.2 (m}]
(aa) (i) A Level Tests for Works Costing 100 Lakhs and Above : The contractor shall set up site
JOratory for testing of materials (except Sch 'B' materials) for 'N level tests as listed in Annexure-! hereto.
te contractor shall arrange all equipment/ machines for the tests specified in Annexure-I as A level tests at
s own cost with prior approval of GE. This cost shall be included in the lump-sum costs quoted by the
lntractor. The contractor shall employ a competent technical representative as approved by the GE for the
~rpose of testing and all such tests shall be carried out in the presence of Engineer-in-charge. The successful
sts result thereof shall be recorded and signed jointly by the contractor and the Engineer-in-Charge. The
\arges for these test i.e. A level tests carried out in site laboratory of the contractor shall not be recovered. In
1se, the contractor has not set up the site laboratory and the tests are carried out in zonal or any other
tboratory setup/approved by GE, the recovery shall be made at rates applicable i.e. as given in Annexure I.
. (aa) (ii) A Level Tests for Works Costing upto 100 Lakhs : The contractor may set up site
lboratory at his option for works costing upto 100 lakhs. The other stipulations will be same as specified in
receding para (aa) (i). However in case the contractor has not set up the site laboratory and tests are carried
lut in zonal or any other laboratory approved/setup by GE, the recovery shall be made at rates applicable i.e.
ts given in Annexure-!.
(bb) B & C Level Tests : For tests of 'B' and 'C' level as indicated in Annexure-I, the contractor shall
)rovide all facilities for testing of materials at Zonal laboratory/Govt. approved laboratories or test I 1':
~ouse/Engg. colleges at his own cost. The lump sum/rates quoted by the contractor shall deemed to be i
nclusive of these tests. The rates of various tests conducted in Laboratory of MES are indicated in I
I I,
!\nnexure-1. The contractor shall bear the actual charges of 'C' level tests (to be done in labs other than MES
labs) irrespective of rates indicated in Annexure-!. Wherever it is convenient to get 'B' level test done at : !
approved test house/Engg. college, the same can be done at the cost of the contractor and no separate
recoveries will be made by the Department for the same.
(cc) The recoveries on account of testing charges wherever applicable shall be effected from the running
account payments due to the contractor payable after completion of the respective tests or whenever the test
~s due whichever is earlier.
15. Inspection of Site by the Tenderer [Refer Para 8.2 (o)]
(i) The tenderer is 1 advised to contact the Garrison Engineer for the purpose of inspection of site(s) I
and relevant documents other than those sent herewith, who will give reasonable facilities for the
purpose. The tenderer shall also make themselves familiar with the working conditions,
accessibility of site(s), availability of materials and other cogent conditions, which may effect the
I
entire completion of work under this contract.
(ii) The tenderer shall be deemed to have inspected the site(s) and made themselves familiar with the 1
working conditions, whether they have actually inspected the site (s) or not.
I
316 PART-I : PRE-cONTRACT STAGE-APPENDICES
per (IS-5454) as given under :

Sample Permissible
Size NosofDef-
Absorption -<lo- eetive BrickS 'A'
(iii) Efflo~escence -<lo- 100Ho 5 0 be
(Pan-n 10000 'A'
10001 to 10 0
IS 1
2. Agregate (i) Sieve Analysis 15 'A' 120
-<lo- -<lo- 'A' 90

: 2386 (Pan-n 'A' 120
-<lo- test per source of supply 'C' 120
required 'A' 120
3. Aggregate test for every 15 Cu. m

when brought to site.
Test for clay, silt -<lo- -<lo- 'A' 90
and impurities. (Part-11)
Specific gravity. -<lo- for each source of supply 'B' 180
(Part-11)
-<lo- as required subject to 2 ''A' 180
(Part..II) being used.
-<lo- test for each source of supply. 'C' 180
4. for each consignment or as 'B' 180

and when required.
-<lo- 'B' 120
-<lo- 'B' 360
-<lo- 'B' 120

5. minimum frequency 'A' 180
of concrete of each grade
be as under:
Qty of Conerete No. of mix
tbe work (Cu. m) samples
Compressive 1-5 1 'A' 120 IS
strength 6-15 2
16-30 3 for
31-50 4
51 & above 4+1for
each add!
SO Cu. m
or part
6. Compressive :2156-1984 8 Blocks out of 14 'A' 60 : 14

strength (Appx 'B') from
'f
,.,.,,
PART-I : PRE-CONTRACT STAGE-APPENDICES 317 ,,':!1

''I
1·1: I,
(ti) Water -do- 3 Blocks out of 14 'B' 120 i,I
absorption (Appx 'E'l .:';', ',,1
'li
(iti) Density -do- · 3 Blocks out of 14 'B' 90 \'I
(Appx 'N) li'! :''1
I
(b) PCC solid Block (i) Compreh~ensive IS: 2185 12 Blocks out of 18 'N 60 Samples : 18 11,1'
for walling strength blocks from i'.
1,1'
consignment of I
every 1000 i/,,,
blocks or part ,,
(ii) Water thereof. I

absorption -do- 3 blocks out of 18 'B' 120 These blocks to '
be checked for
dimension and
weight.
(til) Density -do- 3 blocks out oflB · 'B' 120
7. Cement flooring tiles/ (i) Water 15-1237. 6 tiles out of 18 'B' 180 Samples : 18
Terrazzo tiles absorption (Appx 'D') tiles from each
source of
supply selected
at random.
(ii) Wet transverse -do- -do- 'B' 144
strength (Appx 'E')
(iii) Resistance to wear -do- -do- ·c· 540
(Appx 'F1
B. Burnt clay roofing (i) Water absorption IS: 3495 6 tiles out of 12 'B' 216 Sample : 12
tiles (baudmade) As (Part-11) tiles from each
per IS : 2690 (Part-II) source of
supply selected
at random.
Length 150 mm to (ii) Compressive -do- -do- 'A' 180
250 mm Width 100 strength (Part-!)
mm to 200 mm
Thickness 35mm to
50mm
9. Mangalore pattern (i) Water absorption IS: 654 6 tiles out of 32 'B' 180 Sample : 32
roofing tiles (Appx'A1 tiles from each
consignment of
3000 tiles or
part thereof.
These tiles shall
be checked for
.
dimension.
(ii) Breaking load -<I<>- -<I<>- 'B' 120
. (Appx 'C1
10. Timber (i) Specific graviry and IS: 1708 Minimum 3 samples from a lot of 4 'B' 120
weight cu. m or 250 pieces of seasoned
timber.
(ii) Moisture content -<I<>- -do- 'A' 120
11. Water for construction (i) Test for acidity IS : 456 & 3015 Once at the stage of approval of 'B' 240 Also refer
purpases source of water clause 4.3 of IS
: 456 and its
subsequent sub
clauses regard-
ing suitability of
water.
(til test for alkalinity -<I<>- -<I<>- 'B' 240
(iii) Test for solid -<I<>- -<I<>- ·c· 300
content
~~~~-~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~------~
318 PART-I : PRE-CONTRACT <> •

12. Welding of steel work Visual Ins-pection test IS :-822 100% by visual inspection. Work 360 Specialised
clause 7.1 site tests, their
method and
frequency to be
decided on con-
sideration of
their impor..
tance by the
Accepting Offi-
cer.
13. Timber panelled and (a) Dimensions, sizes, IS: 1003 Frequency of sampling from each lot 'A' 180 •
glazed Door/Window Worlananship and (Part-!) shall be as under :
shutters (including finish Lot Size Sample Size
factory made 26 to SO 5
shutters) 51 to 100 8
101 to 150 13
lSI to 300 20
301 to 500 32
SOl to 1000 50
1001 and above 80
(b) Strength test From each lot So/o of the factory
(i) Slamming IS: 1303. ,nade shutters shall be manufacturer
(ii) Impact Indentation -do- tested for strength tests
(iii) Shock Resistance -do-
(iv) Edge Loading -do-
14 Plywood (IS : 303) Moisture content IS: 1734 Six test pieCes cut from each of the 'C' 240 Sampling shall
(Part-!) boards selected as per table shall be be as per IS :
subjected to testS. 7835- tables.
15 Wood particle board (a) Density IS : 2360 Three test specimen from each 'A' 60 Sampling shall
(Medium density IS : (Part-Ill) sample (Size lSOmrn ·x 75 mm) be as per IS :
3097) 3487- with
moisture
metre.
(b) Moisture content -do- -do- 'A' &'B' 60
(c) Water absorption -do- -do- 'A' 60
(Part-16) (Size 300 mm ><300 mm)
(d) Swelling due to -do- -do- 'A' 60
surface absorption (Part-17) (Size 125 mm x 100 mm)
(e) Swelling in water -do- -do- 'A' 60
(Size 200 mm x 100 mm)
(f) Modulus of rupture -do- Three test specimen as per IS : 2380 'B' 90
(Part-4)
(g) Screw withdrawal -do- -do- 'C' 120
strength (Part-4) as per IS : 2385
Legend
A: Site Lab.
B : Zonal Lab,
C : Approved Test House/Engineering College.
,,
:~
i."
'
6. Condition for Working in Unrestricted/Restricted Area [Refer Para 8.2 {o)]
6. (A) Condition for Working in Unrestricted Area : All works lie in Unrestricted Area. The restrictions for
entry to work site and conditions of worldng in unrestricted area shall be as under :
(a) The work lies in Unrestricted Area. However, the contractor, his agents, servants, workmen and
vehicles may pass through the unit lines, in which case, the Engineer-in-Charge at his discretion,
has the right to issue the passes, control their admission to the site of work or any pan thereof. The
contractor shall on demand by the Engineer-in-Charge shall submit a list of personnel etc.
concerned and any otller information called for by the Engineer-in-Charge and shall satisfy the
Engineer-in- Charge as the bonafide of such people. Passes shall be returned at any time on
demand by the Engineer-in- Charge and in any case on completion of work.
(b) The contractor and his work people shall observe all the rules promulgated from time to time by
authority controlling the area where the work is to be canied out e.g. prohibition of smoking etc.
Any person found violating the security rules laid d0wn by the authority shall be inrmediately
expelled from the area without assigning any reasons whatsoever and the contractor shall have no
claim on this account. Nothing shall be admissible for any man hours lost on this account.
OR
6. (B) Condition For Working in Restricted Area : All works lie in Restricted Area. The
restrictions for entry to work site and conditions of working in restricted area shall be as under :
(a) Entry And Exit : The contractor/his agents/representatives I workmen etc. and his materials,
cans, trucks or other means of transport etc. will be allowed to enter through and leave from only such gate
or gates and at such times as the GE or authorities in charge of the restricted area may at their sole discretion
permit to be used. Contractor's authorised representative is required to be present at the places of entry and
exit for purpose of identifying his cans, trucks, etc. to the person in charge of the security of the restricted
area.
(b) Identity of Workmen:
(i) Every workman shall be in possession of an identity card. The identity card shall be issued after a
thorough investigation of antecedents of the labourers by the contractor and attested by
Officer-in-Charge of the unit concerned in accordance with the standing rules and regulations of
the unit. Contractor shall be responsible for conduct of his workmen, agents or representatives.
(ii) Identity Card or Passes : The contractor, his agents and representatives are required
individually to be in possession of an identity card or pass which will be examined by the security
staff at the time of entry into or exit from the restricted area at any time or number of times inside
restricted area.
(c) Search : Thorough search of all persons and transport shall be carried out at each gate and for as
many times the gate is used for entry or exist and may also be canied out any number of times at the site
within the restricted area.
(d) Working Hours : The units controlling restricted area, usually work during six days in a week and
remain closed on the 7th day. The working hours available to the contractor's labour and staff are however
appreciately reduced ;because of the time of entry and exit during working hours. The exact working hours,
working days and number of working days observed for these restricted area(s) where works are to be
canied out shall be deemed to have been ascertained by contractor before submitting his tender. The
tenderer's attention is invited to the fact that number of working hours for a unit are prescribed in
regulations and that they cannot be increased by the Ganison Engineer or authorities controlling the
restricted area. The definition of ''working days" as given under condition 1 (t) of IAFW-2249 does not apply
in case where the works are carried out in restricted area.
(e) Working on Holidays : The contractor shall not carry out any work on gazetted holidays, weekly
holidays and other non working days except when he is specially authorised in writing to do so by the
Garrison Engineer. The GE may at his sole discretion declare any day as holiday or non working day without
assigning any reasons for such declaration.
(f) Fire Precautions :
(i) The contractor, his agents, representatives, workmen etc. shall strictly observe the order pertaining
to fire precautions prevailing within the restricted area.
(ii) Motor transport vehicle, if allowed by the authorities to enter the restricted area must be fitted
with the serviceable fire extinguisher.
(g) Female Searcher : If the contractor desires to employ female labour or works to be carried out
inside the area of factory; depot, park etc, and a female searcher is not borne on the authorised strength of
the factory; depot, park etc. at the time of submission of tender, he shall be deemed to have allowed in his
tender for pay and allowances etc. for a female searcher (Class N servant) calculated for the period female
labour is employed by him inside that area. If more than one contractor employs female labour during any
month and female searcher (s) has/have to be employed in addition to the authorised strength of the factory,
depot, park etc., the salary and allowances paid to the additional female searcher(s) shall be distributed on
equitable basis between the contractors employing female labour taking into consideration the values and
periods of completion of their contracts. The GE's decision in regard to the amount payable on this account
by any contractor shall be final and binding.
7. Damage to Existing Structures [Refer Para 8.2 (o)] :Any damage to the existing structures,
any existing road etc., during the execution of work shall be made good by the contractor at his own expense.
Rectification, replacement, making good and touching up etc. shall be carried out, conforming to the
materials and workmanship originally provided and to the satisfaction of the Engineer-in-Charge. In case of
any dispute on this account, the decision of the GE shall be final, binding and conclusive.
8. Approaches [Refer Para 8.2 (o)] : The Contractor shall make arrangements for and provide at
his own cost all temporary approaches, if required to the site(s), after obtaining approval in writing of the GE
to the layout of such approaches.
9. Location of Buildings and Works [Refer Para 8.2 (o)] : There may be some changes in
location/ siting of building shown in site (layout) plan(s) to suit local conditions and/or departmental
requirements. The contractor shall have no claim what-so-ever consequent to such changes in. the
location/siting of works.
10. Coordination with Other Agencies [Refer Para 8.2 {o}] :The Contractor shall permit free
access and afford normal facilities and usual convenience to other agencies or departmental workmen to
carry out connected works or services under separate arrangements. The contractor will not be allowed any
e~tra payment on this account.
11. Record of Materials and Purchase Vouchers [Refer Para 8.2 {o)] :
(a) The quantity of materials such as cement, steel, paints, water proofing compound, chemicals for
antitermite treatment and the like, as directed by the Engineer-in-Charge (the quantity of which
cannot be checked after incorporation in the works), shall be recorded in measurement books and
signed py the contractor and the Engineer-in-Charge as a check to ensure that the required
quantity has been brought to site for incorporation in the work.
(b) Materials brought to site shall be stored as directed by the Engineer-in-Charge and those already
recorded in Measurement Book shall be suitably marked for identification.
(c) Contractor shall produce vouchers/invoices from the manufacturers and/or their authorised
agents for the full quantity of the following materials, as applicable as a pre-requisite before
;,; ;
'1\RT-I : PRE-CONTRACT STAGE-APPENDICES 321

:il·:!
submitting claims for payment for advances on account of the work done and/ or materials '.ij
collected in accordance with Condition 64 of General Conditions of Contracts-IAFW-2249 : k',, lj
,,
CiV Water proofing compound. 'I '!I
1,1 fl
(ii)// Chemicals for Anti-termite Treatment.
Qji( Paints, Distempers, Cement base paints & like.
(iv) Cast iron pipes and fittings.
(v) Sanitary fittings.
(vi) Steel windows/ventilators
(vii) Factory made door shutters.
(viii) Floor/Wall tiles.
(ix) Iron Mongery.
(x) Tarfelt/bituminous products
(xi) Salt glazed stoneware pipes.
(xii) Electrical and water Supply fittings/fixtures where names of manufacturers/brands are
specified or approved.
(xiii) Cables.
· i (xiv) Cement.
(xv) Steel.
(d) The contractor shall, on demand, produce to the GE, original receipted vouchers/invoices in
respect of the materials other than as stated in sub-para (c). Vouchers/ invoices so produced and
verified shall be stamped by Engineer-in-Charge indicating contract number. The contractor shall
ensure that the materials are brought to site, in original sealed containers/packing, bearing
manufacturer's marking except in the case of the requirement of materials(s) being less than
smallest packing.
(e) Bitumen shall be purchased directly from manufacturers' stockist or their authorised dealers only.
These vouchers/ invoices shall be defaced by the GE/ Engineer-in-charge, indicating reference to
the contract number, under his dated signature, and CTC thereof shall be kept on record so as to
avoid their being used again.
(f) The vouchers/invoices will clearly indicate the contract number and the IS No., specific alternative
to which the material conforms in case of various alternative in IS.
12. Watch/Lighting [Refer Para 8.2 (o)] : The contractor shall at his own cost take all possible
lre<:attticms to ensure safety of life and property by providing necessary fencing, barrier, light, watchmen etc.,
the progress of work and as directed by the Engineer-in-Charge.
13. Cleairi.ng Down [Refer Para 8.2 {o)] : Refer condition 49 of IAFW-2249. The contractor shall
all floors, remove cement, lime or paint drops, clean joinery, glass panels etc., touch up all paint work
carry out all necessary items of work in connection therewith and have the whole premises clean and
to the entire satisfactiqn of Engineer-in-Charge before handing over the items/ works. No extra payment
be admissible to the contractor for this operation.
14. Minium Wages Payable [Refer Part 8.2 (o)] ·
(a) Refer condition 58 of IAFW-2249. The Contractor shail not pay wages lower than minimum wages
for labour as fixed by the Government of India/State Govt/Union territory, whichever is higher.
(b) Contractor's attention is also drawn, amongst other things to the 'explanations' to the schedule of
minimum wages referred to above.
322 PART-I : PRE-CONTRACT s·, <TE-APPENDICES
(c) The fair wages referred to in condition 58 of IAFW-2249 will be deemed to be t. c same as the
minimum wages, referred to above as upto date from time to time.
(d) Schedule of minimum wages are not enclosed alongwith tender documents. However contractor
shall be deemed to have verified the minimum fair wages payable as on the last due date of receipt
of tender.
(e) The Contractor shall have no claim whatsoever, if on account of local factor and or regulations, he
is required to pay the wages in excess of minimum wages as described above during the execution
of work.
15. Materials and Samplc;s [Refer Para 8.2 (o}] :
(a) Refer condition 10 of IAFW-2249.
(b) The materials and articles, which have been specified from certain makers/manufacturers, shall be
of makes/ manufactures as specified. If the manufacturers specified in tender documents make
both lSI marked and conforming to lSI, the materials/articles shall be lSI marked.
(c) The materials and articles, which have not been specified in tender documents by makes/
manufacturers, shall be as under :
(i) If lSI marked materials are being manufactured the same shall be lSI marked. For list of lSI
marked manufacturers refer website of BIS i.e., www.bis.org.in.
(ii) If lSI marked materials are not being manufactured the same shall be conforming to IS
specifications
(d) Materials of local origin shall be as specified and conforming to samples kept in GE's office. The
tenderer is advised to inspect sample of materials which are displayed in the office of GE, before
submitting his tender. The tenderer shall be deemed to have inspected the samples and satisfied
himself as to the nature and quality of materials, he is required to incorporate in the work
irrespective of whether he has actually inspected them or not.
(e) The contractor shall not procure materials and articles unless the sam]Jles are first got approved by
the GE.
16. Handing Over of Site [Refer App. 8.2 (o}] : Site for execution of work will be available as
soon as the work is awarded. In case it is not possible to make the entire site available on the award of work,
the contractor will have to arrange his working programme accordingly. No claim whatsoever, for not giving
entire site on award of work and for giving site gradually, will be tenable.
I
i
I
---- -------------- ----1
pART-1 : PRE-CONTRACT STAGE-APPENDICES 323
SPECIAL CONDITION TO BE INCORPORATED IN TENDERS FOR BORING TUBE WELLS

WHEREIN PAYMENT IS TO BE MADE ON THE BASIS OF THE DEPTH OF BORING
The depth of boring of the tube well at the site indicated by the GE is anticipated to be ......... metres
below ground level. The depth may, however, be ordered in writing to be varied by the GE upto a maximum
of ........... metres (plus or minus). If the GE decides that suitable water bearing strata is not available in the
aforesaid bore or the boring cannot be continued further on account of the type of strata met with, he may
order the contractor to bore at other site (s) selected by the GE, until suitable water bearing strata is met
with, or boring cannot continue further on account of the type of strata met with provided the total number
of bores (including the first bore) does not exceed ............ The decision of the GE shall be final and binding as
to whether or not the bore can be continued further in the strata met with.
(Blanks shall be filled in before issuing the tenders).
i
I
II
I
I
324 PART-I : PRE-CONTRACT !he ~"; ~J>P,.- .JICES
" APPENDt~'t~l
STEEL SUPPLY AND ACCEPTANCE REGISTER
1. CA No. and Name of Work:
2. Contract No. :
3. Name of Manufacturer's T.C.No. :
4. Manufacturer : ........................................ .
5. Random Test details : (a) Physical test report from ................................................. vide letter No .................... .
(Name of NABL approved Lab/Govt. Engg. College)
(b) Chemical test report from .................................................. vide letter No ................... .
(Name of NABL approved Lab/Govt. Engg. College)
6. Types of Steel, Dia & Qty :
(a) 'JYpe : TMT/CRS
(b) Dia : rnrn
(c) Actual Wt : MT
(d) Conversion Wt : MT
Remarks with Signature Accepted/Rejected
Contractor Junior Engineer Engineer-in-charge Garrison Engineer
Remarks of BOO/Inspecting Officer/CWE

II APP. Ei>.•nav:~ii~.
•:-.~ . . :,_' ~-<~<e~
FREQUENCY FOR NORMAl. MASS, TENSILE, BEND AND REBEND TEST OF STEEL
1 test for every 25 tonnes of steel or part thereof.
1 test for every 25 tonnes of steel or part thereof
Note :For various tests, acceptance criteria, tolerance etc. refer to Appendix 9.1 and relevant BIS codes.
326 PART-I : PRE-CONTRACT
"' APPENI)I)G9. .3£

CEMENT SUPPLY AND ACCEPTANCE REGISTER
1. CANo. & Name of Work: ................................. .
2. Control No* : .................................................... .
3. Name of Manufacturer/Brand Name/Gde of Cement :
(a) Manufacturer ................................. (b) Brand ...................................... (c) Grade ...................................... .
4. Qty of cement & Lot No/Week No: (a) Qty .......................... (in Bags) (b) Lot No/Week No ............................ .
5. Manufacturer's test Certificates to ................................................ .
6. Random Test Details :
(a) Physical test report from ......................................................................... vide their letter No .................... .
(Name of approved Lab/Engg College)
(b) Chemical test report from ....................... :................................................ vide their letter No .................... .
(K~me of approved Lab/Engg College)
7. Details of Physical & Chemical properties :
Remarks with Signature Accepted/Rejected
Contractor Junior Engineer Engineer-in-Charge Garrison Engineer
Remarks of BOO/Inspecting Office/CWE
* To be allotted serially by GE consignment wise
II
I
" APPEND,Ij:,~~~
CHECK LIST/GUIDE LINES FOR DRAFTING SPECIFICATIONS
Generally
1 Verify that the specifications are in accordance with the latest issue of Indian Standards/Codes.
Notes : (a) Any variation in the specification contained in the ME$ schedule and that in the IS should be brought to the
notice of E·in-C.
(b) Where the variation, is however, intended to be adopted to suit local conditions or nature of the work such variation
will be catered for in the particular specification.
2 Verify that the samples of materials of local origin are available with the GE.
Note : Remember that samples need to be replenished occasionally and ensure that they agree with the quality readily
available in the local market.
3 Ensure that the particular specification is brief and avoid repetition of the General Specifications
already contained in the MES Schedule.
4 Ensure that the there is no vagueness or ambiguity in the Particular Specification. Peruse through the
specification as if you were the contractor's engineer/surveyor who has to price the tender so as to appreciate
what further clarifications are necessary. Remember that ambiguities or inaccuracies arise because :
(a) Provisions contained in the MES Schedule are not in keeping with either local practice or materials
likely to be available in that locality or materials manufactured in the country;
(b) Indian Standards and Codes of Practice are included without verifying the quality of materials
likely to be readily available in that locality; and
(c) New Materials and new construction techniques are specified without explaining these in detail.
Based on the previous experience and observations of Technical Examiners, ensure that a check list to
avoid above types of ambiguities or irregularities has been prepared tradewise (as applicable to your
zone/ area) and the Particular Specification, when drafted, is rechecked against this check list.
5. While specifying items other than those of local origin, make sure that the articles conform to
requirements of relevant Indian Standards. Moreover ensure that these are being actually manufactured and
are available in the State or at least in the neighbouring State (e.g. for a work in Chennai or
Thiruvanthapuram, do not specify something likely to be available only in Kolkata). This particularly applies
to items of hardware (ironmongery), pipes, fittings and electrical fittings: Remember that for items, which
are available as I.S.l. marked the relevant applicable IS shall alone be quoted and names of specific firms
shall not normally be mentioned.
In case of materials for which Indian Standard does not exist, names of acceptable firms manufacturing
such materials may be mentioned.
6. In case of certain imported materials, which are known to be imported but are shown on drawings,
make sure that there are no import restrictions.
7. Study the plans and sections carefully and if they show any details not intended to be executed by the
contractor, ensure that in the "scope of work" a clear stipulation is made on the following lines :
"The undermentioned items, though shown on drawings, are excluded from the scope of this contract."
8. Remember that the Particular Specification takes precedence over the General Specification and
notes on drawings. Therefore, carefully examine the various notes on drawings and either get the
discrepancies in the notes on drawings corrected on the original tracing or cover these in the Particular
Specification.
9. Make a critical check of drawings pertaining to schedule of finishes and ensure that all rooms,
passages, corridors, verandahs shown in the main plan are covered in the schedule of finishes. Ensure that
ground floor and first floor/terrace finishes are separately shown. Similarly make a critical examination of
the entire specification with regard to mix for concrete and for finishes.
10. Also make a critical examination of the entire specification with regard to concrete mixes and
finishes and before generalising the specification. Make sure that the designer or the architect has not in
some cases intentionally adopted a different mix of finish.
--
_:ONSULTANCY AGREEMENT
This Agreement made this day of·······················'·······
BETWEEN ..................................... (on behalf of the President of India) hereinafter referred to as "the
Client" and ............................... having its registered Office at .............................. hereinafter referred to as
"the Consultant".
WHEREAS the Client proposes to construct .......................... hereinafter referred to as 'the Project' and
intends to obtain Consultancy services as listed in clause 1 hereinafter and the Consultant is agreeable to
render the said consultancy services on the terms and conditions hereinafter stipulated, it is hereby agreed to
by both the Parties as under :
1. Consultancy Services as listed in Annexure 'Pi. shall be provided by the Consultant.
2. The Client shall provide data/information as specified in Annexure 'B', to the Consultant within
.................. ;... days of conclusion of this Agreement.
3. The Consultant shall' provi·,e and complete the Consultancy Services, in accordance with the
phasing .. .. ............ stipulated hereinafter, to the satisfaction of the Client or his authorised
representative, within a period of .... .. ................ months, of conclusion of this Consultancy
Agreement.
4. Extension of time may be granted for delays caused, which in the opinion of the Client, were
beyond the Consultant's control, provided the Consultant applies for such extension of time in
writing, within seven days of the occurrence of any event which caused delay.
5. The Consultant shall carry out the services required in terms of this Consultancy Agreement,
according to accepted nonns of .sound engineering practice and conforming to Indian Standard
Codes. The Consultant shall be responsible for the technical soundness and accuracy of the
services rendered.
6. The Consultant shall supply to the Client the following documents :
(a) Design calculations, duly, typed ............ copies.
(b) Detailed working drawings size ............ copies and quality of drawing paper as mutually
agreed between the Client and the Consultant. Modify suitably to meet the requirements. If
necessary stipulate the sizes/ quality.
(c) Bills of Quantities in respect ................... copies of ...................... duly typed (Quantities to
be taken off from drawings, as per IS 1200, as amended upto date). ·
7. Design paper by Consultant in respect of ........................ , shall be got checked by Indian Institute
of Technology .................... Central Building Research Institute, Roorkee/ Structural Engineering
Research Centre,.ChennaV ...................... (Retain only one or two and delete the remaining as
necessary), under the Consultant's own arrangements, before finalisation of drawings. A certificate
to ~e effect that the designs have been so checked, shall be furnished to the Client by the
Consultant. The fees stipulated in Annexure 'C' shall inter-alia be inclusive of getting the designs
checked as aforestated. This clause may be inserted when design for uncoventional structures are
involved, at the discretion of CE.
8. The calculation sheets, drawings, reports and simiiar documents provided by the Consultant in
terms of this Agreement to the Client, shall remain the property of the Client and the Client shall
have full right to use them in any manner for the Project or for any other purpose, at the Client's
sole discretion. This clause would not be applicable when the Agreement is concluded with
Govt/Semi-Govt. Agencies.
!
9. The Consultant shall use the data ar1d other information supplied by the Client solely for the
purpose of performing and carrying out his. obligations under this Consultancy Agreement and
shall not disclose the same to any other person, except to the extent required in performance of the
work of the Project, and shall maintain utmost secrecy.
10. The Consultant shall not, without the consent in writing of the Client, publish any article or
photographs relating to the Project.
11. For providing the Consultancy Services as stipulated in this Agreement in accordance with the
provisions of clauses 1 and 3 to 7, the Client shall pay fees to the Consultant as specified in
Annexure 'C'.
12. If the Client requires that the Consultant should provide additional Consultancy Services other
than listed in Annexure 'Pi., the Consultant shall provide the same at fees mutually agreed.
13. If at any time after conclusion of this Agreement, the Client decides to postpone or abandon the
Project, he may, by giving seven days notice in writing to the Consultant, terminate this
Agreement, provided that if the Project or any part thereof is postponed, the Client, may, in lieu of
terminating this Agreement require the Consultant in writing to suspend the carrying out of his
Services under this Agreement, for the time being. If the Client does not require the Consultant to
resume performance of Services in respect of any postponed work within a period of three months
from the date of the Client's requirements in writing to the Consultant to suspend the carrying out
of his services, such work shall be considered to have been abandoned and this Agreement shall be
deemed to be terminated.
14. If this Agreement is terminated in pursuance of Clause 13, the Consultant shall be eligible for
payment of proportionate fees for the portion of Consultancy Services already rendered, as
assessed by the Client. The Client's decision in this respect shall be final and binding; the other
compensation whatsoever shall be paid. ·
15. If the Consultant commits any breach of any of the provisions of this Agreement, the Client shall
be entitled to cancel this Agreement and on such cancellation the fees payable shall be
proportionate to the Services if any, already rendered by the Consultant as assessed by Client, less
ten percent.
16. All payments to the Consultant shall be made through crossed cheque, Nc Payee.
In WITNESS WHEREOF the Parties aforesaid have set hands as shown below.
(The Consultant) (The Client)
Signature of Witness (On behalf of the President of India)

330 PART-I : PRE-CONTRACT STAGE-APPEIII- ~ES
Consultancy Services to be provided by the Consultant (Refer to Clause I of the Agreement)
Data/Information to be supplied by the Client (Refer to Clause 2 of the Agreement)
Schedule of fees to be paid to the Consultant (Refer to Clause 11 of the Agreement)
'J .
PART-I : PRE-CONTRACT STAGE-APPE..liJDICES 331
COMPARATIVE STATEMENT OF TENDERS (PART-A}

(See Para 422 of RMES)
(a) Number of Eligible Contractors
who applied for tenders
(b) Number of applications rejected
(c) Number of additional contractors:
selected for issue of tender form
(d) Number of tenders issued ............................................................... on .................................... 20......... ..
Tenders received for ................................................................................................................................ .
Division/District ..................................................................................................................... Command.
Admin. App ............................................................................................................................................. .
Estimated Cost of work Rs .............................................................................................. (at par market)
Tech. Sanction ......................................................................................................................................... .
We certify that the above ............... tenders and no others were received at ............ hours on ...... 20
........ opened in our presence and scheduled by us, on the ......... 20 ........ and that no departure from the
authorised course has occurred in the manner of receipt of tenders.
Signature ............................. . Signature ........................... ..

Designation .......................... . Designation ....................... ..
Date ................. 20 .............. . Date .............. 20 ............... .
PART-I : PRE-CONTRACT
COMPARATIVE STATEMENT 01' TENDERS (PART B)

(See Para 422 of Regulations of the MES)
Tenders issued on ............................ for .... :.. ........................................................................................... ..
received on .................................................................................................................... as recorded in Part
We clarifY that the above ............... tenders (sealed, envelopes containing quotations) which
received on ........... as recorded in PART W of this Comparative Statement of Tenders, were opened in
presence and Scheduled by us on ....... 20 ......
Signature ....................................... . Signature ................................. .
Designation .................................. . Designation ............................. .
Date ................... 20 .................... Date ................. 20 ............... ..
Note : Col 4. shall be filled in by the Director (C)/Jt. Dir (C)/Dy Dir (C)/Asstt. Dir (C}/AE (QS & C) or any
authorised by the Accepting Officer prior to opening of sealed envelopes containing quotations.
(a) The tender of Shri!S'Shri ................ (Serial No ......... ) is recommended for acceptance.
Date ............. 20 ........ .. *Dir (C)

*Jt./Dy/Asstt. Dir (C)
(b) Orders of the Officer competent to accept the tenders:
The tender of Shri/S'Shri .................... (Serial No ............... )
has been accepted by me on ...................... .
Note : Any reason for accepting other than lowest tender and any remarks are to be stated hereon.
*CE ......................... .
*CWE ..................... .
Date ....... 20 ......... *GE ........................ .
* Delete whichever is inapplicable.

II APPENDI~J~{~
SPECIAL CONDITION FOR SPECIALIST WORKS CONTRACTS
The contractor shall quote all-in rates for various items of equipment inclusive of cost of supply and
installation and inclusive of all taxes, octroi, sales tax and the like payable him. Even if the contractor shows
his rates separately for supply of equipment and installation, the contract, being a lumpsum contract, will be
treated as a composite and indivisible works contract and the contractor shall not be entitled to any
reimbursement of sales tax or any other tax he may pay or may have paid to authorities concerned. Any
tender not complying with this condition will be treated as non-bonafide.
1. Special condition for Specialist Works Contracts on IAFW 1779A and 2249
The contractor shall quote ail-in rates for various items in Schedule W inclusive of cost of supply,
fabrication, fixing/installation fixing/installations and inclusive of all taxes, octroi, sale tax and the like,
which are to be borne by him as stipulated in Condition 13 of the General Conditions of Contracts,
IAFW-2249. Any tender not complying with this condition is liable to be treated as non-bonafide.
2. Special Condition for Specialist Works Contracts (e.g. fabricated stores and the like) on
IAFW-1815 (R} and 1815 (Z)
The contractor shall quote ail-in rates for various items of supply in Schedule W inclusive of cost of
supply and fabrication and inclusive of all taxes, octroi, sales tax and the like which are to be borne by him as
stipulated in Condition 8 of General Conditions of Contract, IAFW-1815 (Z). Any tender not complying with
this condition is liable to be treated as non-bonafide.
PART-II : CONTRACT STAGE-APPENDICES
" APPENE>:~~[f1l~i~
FORM OF LE'ITER TO BE ADDRESSED TO THE CONTRACTOR BY THE GE SOON AFrER
THE CONCLUSION OF A CONTRACT.
(This should be issued along with the first Work Order)
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
No ......................../E8 DATED ................ ..
To
Shri/S'Shri .................................................... ..
Subject : CA No .......................................... ..
Name of Work : ........................................ ..
Dear Sir (s)
Reference Accepting Officer's letter No ............... dated ................ accepting your tender for the above
work.
The following information is passed on to you for necessary action.
1. ENGINEER-IN-CHARGE
In connection with the Contract quoted above, please note that Shri (Rank in case of a Service
Officer) .................. of this office has been appointed by me as Engineer-in-Charge to supervise the Buildings
and Road Works* pertaining to the Contract and that Shri (Rank in case of a Service Officer) .................. of
this office has been appointed by me as Engineer-in-Charge to supervise the Electrification and Water Supply
Works* pertaining to the contract. You are, therefore, requested to contact them immediately during working
hours for taking over the site(s) and commencement of the work under the contract.
* Fill in as per Sections of Sch. A.
2. TIME AND PROGRESS CHART/CPM CHART
With reference to Condition 11 of the General Conditions of Contracts (lAFW-2249) forming part of the
Contract, you are hereby called upon to submit for my approval a "TIME A_li;D PROGRESS CHART/CPM
CHART", before commencement of the work. The Time and Progress Chart should indicate the forecast of the
dates of commencement and completion of the various trades, processes or sections of the works to be done
by you, under the contract.
3. CONTRACTOR'S SUPERVISION AND ORGANISATION
Supervision
(i) (a) Your attention is invited to Condition 25 of the General Conditions of Contracts (IAFW-2249),
according to which, you shall either supervise the execution of the Contract personally or shall appoint a
competent Agent(s) who shall be qualified Engineer(s). Please intimate immediately whether you are
technically capable and you will personally supervise the execution of the contract, or you propose to appoint
Agent(s) therefore.
(b) In the latter case, you are requested to employ at an early date at your own expense your Accredited
Agent(s) to supervise the execution of the Contract. Please note that the Agent(s) you propose to employ
PART-II : CONTRACT STAGE-APPENDICES 335
should possess engineering qualifications and experience of rhe type of work to be done by you shall be
approved by me. Names and addresses of Agent(s) along wirh his/rheir specimen signature(s) in triplicate
duly attested should also be furnished.
Organization
(ii) Let me know which of your accredited Agents are auThorised on your behalf to :
(a) receive instructions from rhe Engineer-in-Charge or from the undersigned, in respect of execution
of rhe works generally; and to sign the Works Site Order Book.
(b) sign Measurement Books, unstamped receipts for Schedule 'B' stores, Schedule 'C' Tools and Plant,
etc., and to submit your indents and demands for stores and tools and plant.
(c) sign receipts and receive payments against advances on account and sign final bill.
Note :Power of Attorney issued by you to your Agent(s) should be in a proper legal form and be furnished to me in original
along with a certified true copy thereof
4. COMMUNICATIONS
Please intimate rhe address to which communications intended for you in connection wirh the contract
should be forwarded to you.
5. STORES SITE AND LABOUR CAMP (Amend as applicable)
(i) Please intimate within 10 days of rhe date of this letter wherher-
(a) You wish to draw water for the works from Government sources. Please however note that once
rhe work commences you will not be permitted to change your option in rhis respect.
(b) You wish to obtain electrical energy under your own arrangements or through Govt. as indicated
in clause ....... of rhe contract.
(ii) The area allotted for your workshop/stores, godown and offices is indicated on the site plan. Please
note rhat rhe site and erection of rhese buildings shall be in the sole option and have the prior written
approval of rh.e Engineer-in-Charge.
6. TOOLS AND PLANTS
In addition to making your own arrangements for adequate tools and equipment required for rhe
execution of rhe contract, please ensure that the following items are provided at the site of the works :
(a) adequate number of steel/metallic tapes for laying out and for checking measurements as and
when necessary;
(b) measuring boxes for sand, coarse aggregate for concrete and rhe like;
(c) screens for sand and coarse aggregate;
(d) impervious platforms for mixing mortar, concrete, and the like;
(e) arrangements for storing water required for rhe work;
(f)
(g) ····························································································
7. STORES AND MATERIALS
(a) With reference to Condition 10 of rhe General Conditions of Contracts IAFW-2249, please supply · i
wirhin 15 days of rhe date of this letter, samples of following materials of appropriate quantity and/or size to
be used by you in rhe works for my inspection and approval.
(i) Sand for concrete works and mortar;
(ii) Sand for plastering works;
(iii) Coarse aggregate for concrete works;
(iv) Burnt bricks;
336 PART-II : CONTRACT STAGE-APPENDICES
(v) Timber for door and window frames;

(vi) ................................ .
(b) Appropriate quantity of samples of the following items/ materials should also be furnished for my
inspection and approval within the period mentioned below :
(i) Terrazzo tiles
(ii) Flush door shutters
(iii) Plywood Within ....... week (s)
(iv) lronmongery of the date of this letter
(v) Water Supply pipes
(vi) Cl soil/drain pipes
(vii) SWG soil/drain pipes
(viii) Sanitary fittings
(ix) AC soiVvent pipes
(x) Electrical wiring, switches and
(xi)
(c) Please note that all the samples approved by me shall be sealed and under no circumstances,
items/material of quality inferior to those sealed shall be brought by you to the site of works for use in the
works.
(d) In accordance with the Notes to Schedule 'B' of the Contract, please note that you are required to
submit your demands for Schedule 'B' stores at least .................... days in advance of your requirements. Delay
in submitting the demand shall be to your account.
8. LABOUR
Your attention is invited to the MES Contractors Labour Regulations and Conditions 26 to 30 and 58 of
the General Conditions of Contracts (IAFW-2249). Please ensure that a Labour Distribution Return (in
duplicate), indicating the number and description by trades of labour is submitted by you to the
Engineer-in-Charge every day latest by 1100 hrs. You are also requested to ensure that all the documents
required to be maintained by you under law or Regulations, such as Wage Books, Wage slips, Register of
fines, Wage Cards, etc., are properly maintained by you and are made available by you for inspection when
demanded by the Engineer-in-charge.
9. HOLDUPS IN THE WORK
Your attention is invited particularly to Condition 11 of the General Conditions of Contracts
(!AFW-2249) according to which you are required to immediately notify to the undersigned any event
causing delay in completion of the work due to any reason enumerated therein duly supported by detailed
reasons and documentary proof, if any, therefor and the period of delay anticipated and the action being
taken by you to remedy the same.
Yours faithfully,
GARRISON ENGINEER
Copy to:
CWE .................... for information.
Engineer-In-Charge .................. for information and compliance.
·····································································································
'ART-II : CONTRACT STAGE-APPENDICES 337 I
>', ''/·.--,:·\<-·:<<
ExplanatoryNqte~:~>
1. Generally; this letter should be modified suitably depending upon the nature of the work and,
particularly in case of contracts for furniture, electrical work, air conditioning work or other works
of specialist nature.
2. Modify Para 1 suitably depending on the nature and scope of the work included in the Contract.
3. Modify or add items as necessary depending on the scope of work under the Contract in para 6.
4. List out the materials in para 7 (a) which are required to be used in the initial stages of the work.
5. List out the materials in para 7 (b) which are required to be used subsequently. It shall, however, be
ensured that the samples of all important items/materials are approved and sealed at a very early
date but in no case later than 1 to 2 months from the date of commencement of the contract
(depending on the overall period of completion) so that there is no delay in their procurement by
the contractor.
j
338 PART-U : CONTRACT STAG.t> '"~D~xr:.-....,,
==============================
'" APPENpl)(.};§;~'~
FORM OF DILIGENCE NOTICE TO BE ISSUED BY GE TO THE CONTRACTOR WHEN THERE
UNDUE DELAY IN THE COMMENCEMENT OF WORK AFI'ER DATE OF HANDING OVER THE
SITE
TELEPHONE:
REGISTERED ACK D
OFFICE OFT
GARRISON ENGINEE .
.....................................,'-:
No ........................ ./ES Dated ............................•;
To
Shri/S'Shri ............................... .
Subject : CA No ................................. .
Name of Work: ................................ .
Dear Sir(s),
Reference Work Order No. 1 dated .............. .
2. Site for the work to be executed under the above contract was handed over to you
on .................. (date). The undersigned has noticed that in spite of the fact that considerable time has elapsed
since the site was handed over to you, no work has so far been commenced by you at site.
3. It is accordingly felt that you are not in a position to discharge your obligations under the Contract. r
therefore hereby give you notice that if the said work is not commenced by you within ......... days of the date
of this letter, [I the undersigned shall be obliged to recommend to the competent authority for cancellation of
the contract on account of your default in the discharge of your contractual obligations and for thel
completion of the work through other agency/agencies at your risk and cost in terms of Condition 54 of the.
General Conditions of Contracts (IAFW-2249), and without prejudice to the other remedies available to the
Govt. under the terms of the contract or under law.] 1
Yours faithfully,
GARRISON ENGINEER
Copy to:
CE ...................... .for information.
CWE ................... for information.
Engineer-in-Charge ............. for information.
Internal Distribution : E2A
1 In case of contracts concluded by GEs, this should be amended to read as follows :

"I will be constrained to consider cancellation of the contract on account of your default in the discharge of your contractual obligations and
the completion of the work through other agency/agencies at your risk and cost in terms of Condition 54 of the General Conditions of
Contract (IAFW-2249) and without prejudice to the other remedies available to the Government under the terms of the Contract or under
law."
2 In case of contracts accepted by CWE/GE this letter need not be endorsed to CE unless delegated by CE.
PART-II: CONTRACT STAGE-APPENDICES 339
"
FORM OF LE'ITER TO BE ISSUED BY GE TO WARN CONTRACTOR ABOUT INADEQUACY OF LABOUR
AND MATERIAlS AT SITE
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
No .......... ./ES DATED ......................... .

To
Shri!S'Shri ..................................... .
Subject: CA No ........................ .
Name of Work : ......................... .
Dear Sir(s)
1. It has come to my notice that the rate of procurement of materials required for the Work especially
sand/ aggregates, bricks, etc. is extremely slow and you have not made any arrangements or placed orders for
flush shutters, steel windows, etc.
2. It is also noted that the labour employed by you in the following categories is not in sufficient
numbers to have the required rate of progress :
(a) Masons
(b) Carpenters
(c) Welders
(d) ···············
3. The inadequacy of the labour and materials pointed out above has resulted in the progress of the
Work being not commensurate with that shown in the Time and Progress Chart of the Contract.
4. You are, therefore, hereby called upon to accelerate the progress of the Work by procuring the
requisite quantity of materials and increasing existing number of labourers as necessary to bring the progress
upto the requirements in the above chart.
5. I hereby draw your attention to the fact that time is of the essence of the contract and unless you
proceed with the work with greater diligence and ensure compliance with the Time and Progress Chart
within the next 30 days thereof, I will be constrained* to report the matter to the competent authority for
such action as may be deemed necessary by him under the terms of the contract.
6. Please acknowledge.
Yours faitllfully,
GARRISON ENGINEER
Copy to:
CE ................. .
CWE. ............ .
Engineer·in-charge .................. .
Internal Distribution E2.
In case of contracts concluded by GEs, this should be amended to read as follows :

"I will bf' constrained to consider cancellation of the contract''.
In case of contracts accepted by CWE/GE this letter need uot be endorsed to CE unless delegated by CE.
-~"l
,. t
l
I
340
PMIT-U:_e<>NTRAcr_:_ ·~··APP~'"'
FORM OF NOTICE TO BE ISSUED BY GE WARNING THE CONTRACTOR ABOUT HIS LIABIL
I
TO PAY COMPENSATION FOR DELAY-TO BE ISSUED 15 DAYS PRIOR TO DUE DATE 0
COMPLETION ~"---···.-··-:,
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
.........................................
No."" .................. /ES. DATED ........................... .
To
Shri/S'Shri
Subject : CA No ........................... .
Name of Work : ............................. .
Dear Sir(s).
1. The date(s) for completion of work under the above mentioned contract is/are .............. and I notice
that the progress of the Work has been very slow and unless you proceed with due diligence and
accelerate the progress of the work, you are not likely to comply with the time agreed upon for the
completion of the work.
2. I hereby draw your attention to the fact that time is of the essence of this contract and if you fail to
complete the work by the stipulated date, you shall be liable to pay compensation for delay in completion.
This notice is without prejudice to any other right or remedy open to the Government as provided for in
. Condition SO of General Conditions of Contracts (IAFW-2249) forming part of the Contract or under law.
Yours faithfully,
GARRISON ENGINEER
I
ww
'
Copy to:
CE ..................... }for information
CWE ................... .
Engineer-in-charge ............ .for information and necessary action.
In case of contracts accepted by CWE/GE this letter need not be endorsed to CE unless delegated by CE.
I
PART-U : CONTRACT STAGE-APPENDICES 341
" APPE ...DO{.):~~'

FORM OF LETTER TO BE ISSUED BY THE GE TO THE CONTRACTOR TO CLAIM
COMPENSATION fOR NOT COMPLETING THE WORK ON THE DUE DATE-TO BE ISSUED
IMMEDIATELY AFTER THE DUE DATE OF COMPLETION HAS ELAPSED
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
No .......................... ./E8. DATED ................... .
To
Shri/S'Shri ............................................. .
Subject : CA No ................................... .
Name of Work : .................................. .
Dear Sir(s).
1. Reference further to my notice issued under letter No ............. dated ............... ..
2. Time being of the essence of the contract quoted above and you having failed to perform your
obligations by the time agreed upon, notice is hereby given to you, that in deciding to accept the performance
after the said time, Government shall claim from you compensation for delay in completion of the Work in
terms of Condition 50 of the General Conditions of Contracts (IAFW-2249) on account of your
non-performance of your contractual obligations by the time agreed upon.
Your's faithfully,
GARRISON ENGINEER
Copy to:-
CE .......................... ..
CWE ........................... .
for information
Engineer-in-charge ............ .
PCDA/CDA .................. ..
~~~~~~~~~~~~~~-~~~~~~~~~~~~~-c-~--~--~-~~
• APPENI;)IXi.]~£fi
FORM OF LETI'ER TO BE ISSUED TO THE CONTRACTOR BY GE FOR SUSPENDING WORK
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
.....................................
No ..................... /E8. DATED ........................ .
To
Shri/S'Shri ....................................... .
Subject : CA No ............................. .
Name of Work : ............................ .
Dear Sir(s),
Under Condition ................ of General Conditions ofContracts (IAFW-2249) I hereby call upon you to
suspend the execution of the Work on the following items under the above mentioned contract :-
(a) ···················································
(b) ···················································
(c)···················································
2. Anticipated period of suspension shall be .............. (days/months) with effect from ........... @ ........... .
(date).
3. Financial effect on account of suspension of the Work and subsequent resumption thereof shall be I
NIL on either side. :.1
4. The enclosed duplicate copy of this letter shall be signed and returned for our record within ............ .
days of the date of this letter. I
Yours faithfully,
GARRISON ENGINEER
I
We accept .............................................................. .
Signature of Contractor Date :
Copy to:
CE ........................... .
CWE ........................... .
for information
Engineer-in-charge ............ .
i
I
@A minimum of 15 days time should be given from the expected date of receipt of the letter.
Notes : 1. This letter should be sent to the Contractor in duplicate. ;,!
2. In case of substantial delay in resumption of the work beyond the period stipulated in para 2 the Contractor should be
suitably informed in due course amending para 2 of the letter of suspension. I
I
I
!
1
PART-U : CONTRACT STAGE-APPENDICES 343
" APPEI'oiD}}(.l~S~l
FORM OF LETTER TO THE CONTRACTOR TO BE ISSUED BY GE FOR RESUMPTION OF WORK
AFTER SUSPENSION
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRJSON ENGINEER
No ..................... /E8. DATED .................... .

To
Shri!S'Shri ..................................... .
Subject : CA No ........................... .
Name of Work : ........................... ..
Dear Sir(s),
Under Condition .................. of General Conditions of Contracts (IAFW-2249) I hereby call upon you to
resume execution of rhe Work on the following items wirh effect from ....... @ ........ which were suspended
under my Jetter No ........ dated ........... :-
(a) ................................ ..
(b) ................................ ..
(c) ................................ ..
2. Consequent upon rhe suspension and subsequent resumption of rhe Work necessary extension of
time is being gtaated separately. '
3. Financial effect on rhe contract resulting from the suspension of the work and then resumption
thereof shall be NIL on either side.
4. The enclosed duplicate copy of this letter shall be signed and returned for our record
within ......... days of the date of this lettet
Yours faithfully,
GARRISON ENGINEER
We accept ..... ,................................... .
Date:
Copy to:-
CE ............................ }for information
CWE .......................... ..
Engineer-in-charge-for information and necessary action.
@A minimum of 15 days time should be given from the expected date of receipt of the letter.
II APPENDIXJJ~
--
FORM OF THE LETTER TO THE CONTRACTOR TO BE ISSUED BY GE REGARDING HIS
CONTINUED NEGLIGENCE IN RECTIFICATION OF DEFECTS/BAD WORKMANSHIP POINTED
OUT TO HIS SITE REPRESENTATIVE AND IN WORKS SITE ORDER BOOK
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
No ..................... !EB. DATED ............................ .

To
Shri!S'Shri
Subject : CA No .............................................................. .
Name of Work : ............................................................. .
Dear Sir(s),
During my inspection of the Work on .. .. .. .. .. . along with your representative, Shri ............. .it was
noticed by me that the following defects in respect of the materials being used and the workmanship are
persisting :-
(a) Frame-work for ceiling is not treated;
(b) Exposed faces of rafters are not wrought;
(c) Chowkats are not in plumb; ·
(d)···································
2. The above defects have already been brought to your notice by the Engineer-in-Charge through Site
Order No ........... dated ~ .......... and you were required to rectifY the same.
3. You have not so far rectified the same and your continued negligence in rectification of these defects
in spite of a notice is viewed with concern by me. You are, therefore, once again and finally called upon to
make arrangements to rectifY the above defects immediately but not later than ............ .
4. Please also note that in case these defects are not rectified by you by the said date, action will be
taken by me without any further notice to you, to rectifY these defects through· another agency at your risk
and cost in terms of Condition 46 of the General Co;;ditiarrs of Contracts (IAFW,2249) and you shall be liable
therefor.
Yours faithfully;
GARRISON ENGINEER
Copy to:-
Engineer-in-charge-for information and necessary action. Please forward your report on the progress
of the rectification not later than ........... (date).
Internal Distribution E-2.
" APPENPI){~cl,,~Ji
FORM OF COMPLETION CERTIFICATE TO BE ISSUED BY THE GE TO THE CONTRACTOR.
(This Completion Certificate should be issued to the Contractor in duplicate to enable
him to attach one copy along with his final bill.)
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
No ..................... /E8. DATED ....................... .

To
Shri/S'Shri ................................................ .
Subject: CA No ...................................... .
Name of Work: ..................................... .
Dear Sir(s),
In pursuance of Condition 49 of the General Conditions of Contracts (IAFW-2249), I hereby certify that
the Work under CA No ............... .for " ................. " has been satisfactorily completed by Shri/S'Shri
.................. on ...... (date) and taken over by MES subject to rectification of the defect listed in the statement
attached as Appendix 'Pl.. · ·
2. Please ensure that the defects listed in Appendix 'PI are rectified to my satisfaction not later than
.................. at your cost and under your own arrangements.
Yours faithfully,
GARRISON ENGINEER
End : Appendix 'PI
Copy to:-
PCDA 1 CDA · · · · · · · · · · · · · · · · · · · · · · · · · · · · } for information
AO/ AAOGE ........................... .
Not on Original
CE. ....................................... .
CWE.................................... .
Engineer-in -charge.
Internal Distribution : E2 I
A separate statement is attached indicating the position of deviation orders/special rates yet to be I
finalised and claims from contractor on which decisions have yet to be conveyed to him. (Indicate in that
statement the detailed position i.e. pending with GE and pending with CWE).
.. APPENDI)(:i;(~tJ~
FORM OF NOTICE TO THE CONTRACTOR TO BE ISSUED BY THE GE TO WARN THE
CONTRACTOR OF SLOW PROGRESS AND WHICH IS NECESSARY PRIOR TO REPORTING THE
MATTER TO ACCEPTING OFFICER FOR CANCELLATION OF THE CONTRACT.
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
No ..................... /ES. DATED ...................... ..

To
ShrVS'Shri
Subject : CA No ............................. .
Name of Work : ............................ .
Dear Sir(s),
Reference Work Order No. 1 dated ........... ..
2. Site for the Work to be executed under the above contract was handed over to you on ............ (date).
The undersigned has noticed that you are not proceeding with the Work with due diligence and the progress
of the Work is far from satisfactory.
3. I hereby draw your attention to the fact that time is of the essence of your contract and unless you
proceed with the Work with more diligence and accelerate your progress you are not likely to complete the
Work by the stipulated date and you will thus become liable to the payments of the damages provided for in
the contract in this respect and/or any other remedy available to the Govt. under the said contract.
4. You are hereby accordingly called upon to put in your best effort to accelerate the progress of the
work so as to complete it by the stipulated date of completion.
5. *If the present state of affairs continues for a further period of ....... weeks inspite of this notice, I
shall be constrained to report the matter to the competent authority for such action as he may deem fit under
the terms of the contract.
Yours faithfully;
GARRISON ENGINEER
Copyto:-
CE ................................. .
< CWE ............................. .
.. Engineer..in-charge ........................ ..
*In case of contracts concluded by GEs this should be amended to read as follows :
"I shall be constrained to consider cancellation of the contract."
., APPENDIX.1&~'f;1'~
FORM OF FINAL NOTICE TO BE SERVED BY ACCEPTING OFFICER PRIOR TO CANCELLATION
OF CONTRACT
REGISTERED ACK DUE

OFFICE OF THE
ACCEPTING OFFICER
No ..................... /E8. DATED ....................... .
To
Shri/S'Shri
Subject : CA No ........................... .
Name of Work : ............................ .
~M~ ''· 1
1. Reference GE ................ letter No. .• :............. dated ............... .
2. Inspite of notice•by the GE asking you to put in your best efforts to accelerate the progress of work,
no activity is reported on the site of work in the last 2 weeks. You have also not brought out any reasons for
not proceeding with the work.
3. In view of above, I hereby give you this FINAL NOTICE to accelerate the progress of work and
amend the CPM chart in consultation with~. Please note that if the present state of affairs continues for a
period of 15 day~ from this notice, I shall cancel the contract on your default in terms'of powers vested in me
--· -· I .
vide Condition 54 of IAFW-2249. I
'".. . .____ r ·,·
('
4. This is without prejudice.
Yours faithfully,
Accepting Officer
Copy to:-
1. E-in-C's Branch In case }
of CEs contracts. In case of CEs contracts
2. CE ................ Command
3. CE Zone }
4. CWE In respect of GE!CWE Contracts
5. GE/AGE (I)
i
I
->:.:_/~~···
348 PART-H : CONTRACT STAGE-APPENDICES

=======-·==================================~~===-------
!; APPENr).lg·:il\·~~tJil\·
FORM .OF THE LEITER TO BE ADDRESSED TO THE CONTRACTOR BY THE ACCEPTING
OFFICER FOR CANCELlATION OF THE CONTRACT ON ACCOUNT OF THE CONTR.I\CTOR'S
DEFAULT
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE .......................... ..
No ..................... !E8. DATED ........................................ .
To
Shri/S'Shri ............................................. .
Subject: CA No .................................. ..
Name of Work : ................................. ..
Dear Sir(s),
Reference letter No ....................... dated ............... .
2. In spite of notice issued to you under the above mentioned reference in connection with the Work to
be executed under the above mentioned contract, you have failed to :-
,·~ca) commence/resume work;
*(b) proceed with the work with due diligence;

* (c) comply with Condition ............... of General Conditions of Contracts (IAFW-2249);
*(d) complete the work by due date.
3. Therefore, I the Accepting Officer of the Contract, on behalf of the Government, acting under the
powers vested in me in terms of Condition-54 of the General Conditions of Contracts (IAFW-2249) and
without prejudice to any other right or remedy which shall have accrued or shall accrue hereafter to the
Government under the terms of the above said contract, hereby cancel your contract on account of your
default and the said contract shall stand cancelled with effect from ............... (date).
4. Please note that the Works as defined in the contract condition l(c) of the General Conditions
Contracts will now be got completed by me through other agency at your risk and cost.
5. You are accordingly requested to report to GE at his office in person or through an
representative at .... ... .. ... .. on ..... .... .. when an inventory of complete/incomplete items of Work and
materials, if any, left by you at site will be made and recorded jointly. In the event of your failure t() keep this
appointment, inventory will nevertheless be prepared notwithstanding your absence and the be
fully binding on you.
6. This is without prejudice to any other right or remedy which shall have accrued· or
the Government.
Copy to:- CE .............. (in case of CWE's contracts and GE'S Contracts).
CWE ............................ }
CE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In case of CE's contracts.
·!
Engineer-in-charge
PCDNCDA ........................... .
Registering Authority
* Delete whichever is inapplicable.
PART~II : CONTRACT STAGE~APPENDICES 349
FORM OF LETTER TO BE ADDRESSED TO mE CONTRACTOR BY THE COMMANDER WORKS

EN.GINEERS FOR FORECLOSING A CONTRACT BY mE GOVERNMENT
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
CWE ............................... ..
No .... :................ /E8. DATED ........................... .

To
Shri/S'Shri .......................................... .
Subject : CA No ............................... ..
Name of Worl' : ............................... .
Dear Sir(s),
Work in respect of the above mentioned contract/part of the work as per details ................. included in
the above contract, is not required to be done by the Government. According to Condition 57 of IAFW-2249
(General Conditions of Contracts) forming part of the contract, Government is competent to put an end the
above mentioned contract by giving you notice in writing.
2. In terms of the aforesaid condition, I hereby determine the aforesaid contract in full/in part as listed
in Schedule 'X hereto w.e.f...................... .
3. You are accordingly requested to report to the GE ...... at his office in person or through an accredited
representative at ......... :.. · on ............ when an inventory of complete/incomplete items of the work and the
materials, if any left by you, at site will be made and recorded jointly. In the event of your failure to keep this
appointment, inventory will nevertheless be prepared notwithstanding your absence and the same shall be
fully binding on you.
4. This is without prejudice to any other right or remedy which shall have accrued or accrue to the
Government under the terms of this contract.
Yours faithfully,
COMMANDER WORKS ENGINEERS
Copy to:-
CE ............................... 1·
GE . .. · .. ·: · .. · .... · · .. · · · · .... · .. · ~ for information
Engmeer-m-charge .............. J
CDA .............................. .
350 PART-U : CONTRACT STAGE-APPENDICES
" APPE~[)~~~\l~~~
FORM OF THE LETTER TO THE CONTRACTOR FROM GE/ CWE/CE TO GUARD AGAINST
SECTIONS 18 A.t"D 19 OF THE LIMITATION ACT 1963
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE ............ .
No ..................... /EB. DPJ:'ED ......................... .
To
Shri/S'Shri
Subject : CA No ........................... .
Name of Work : ............................ .
Dear Sir(s),
Reference your letter No ............................................. dated .............................................. addressed to

........................................... copy to ............................ .
2. In replying to your said communication, it is hereby made absolutely clear to you by me that I make
no acknowledgement of any liability on Government's part what so ever towards you, and that this letter is
WITHOUT PREJUDICE.
Yours faithfully;
Signature and designation of Officer
Copy to:-
CE
CWE ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.:·.t (N.B. As the case warrants)
GE ..................... ·····J
'
'
l'ART-ll : CONTRACT STAGE-APPENDl<.'ES 351
FORl\'1 OF THE LETI'ER TO BE ISSUED BY THE GE TO THE CONTRACTOR FOR RECTIFICATION

OF DEFECTS DURING DEFECTS LIABILITY PERIOD
TELEPHONE:
'I
REGISTERED ACK DUE ,. r.
OFFICE OF THE
GARRISON ENGINEER
No ..................... /E8. DATED ....................... ..
To
Shri!S'Shri
Subject : CA No ............................ ..
Name of Work : ............................ .
Dear Sir(s),
The following defects in Work completed by you under the above mentioned contract have developed
since ............ ..
(a) ............................ .
(b) ............................ .
2. As under Condition 46 of the General Conditions of Contracts (IAFW-2249) fanning part of the
contract, you are liable to rectify the defects observed during the currency of the Defects Liability period. You
are hereby called upon to rectify the said defects by ........ (date) failing which the same shall be got rectified
by the Govt. by or through other agency at your risk and cost without any further notice to you and you shall
solely be liable therefor.

Yours fai thfu!ly,
GARRISON ENGINEER
Copy to:-
Engineer-in-charge................ Please forward your report about progress on rectification by ............. ..
:E ................ ··. ·}
CWE .................... .
for information

" APPENI)1Xl6:)~l
FORM: OF THE LETTER TO BE ISSUED TO THE CONTRACTOR ON COMPLETION OF
RECTIFICATION OF ALL DEFECTS NOTIFIED DURING THE DEFECTS LIABILITY PERIOD
. -UNDER PARA 4 OF CONDITION 49 OF IAFW-2249
TELEPHONE:
REGISTERED ACK DUE
OFFICE OF THE
GARRISON ENGINEER
No ..................... /E8. DATED ....................... .
To
Shri/S'Shri
Subject : CA No ........................... .
Name of Work : ............................ .
Dear Sir(s),
In pursuance of Condition 49 of IAFW-2249, I certify that the defects liability period of the work
executed by you under Contract No ................. of ........... expired on ............ and that rectification of all
defects notified during the maintenance period has been carried out satisfactorily and the Govt. has no claim
against you in this respect.
Yours faithfully,
GARRISON ENGINEER
Copy to:-
PCDNCDA
AO/MOGE ............................ .
CE and/or CWE ...................... .
Note : In case the Contractor has not rectified certain defects previously notified, the letter should be suitably modified; such
defects should be precisely enumerated and Contractor asked to complete rectification by definite date.
PART-TI : CONTRACT STAGE-APPENDICES 353
FORM OF THE AMENDMENT TO THE CONTRACT
Contract No . .................................... Amendment No . ............................................................ .
Sert"al Page No . ..........................................................................................................................

' .
WHEREAS on the ............................. day of ................. 20............. , an Agreement was entered into
between the President of India represented by .. .. .. .. .... ....... .. .. .. .. ... .... (hereinafter referred to as the
"Government") and Shri/S'Shri.. ............... (hereinafter referred to as the "Contractor") under which the said
contractor among other conditions contracted to provide ............. (Name of Work).
AND WHEREAS the said parties are now mutually desirous of amending the said Agreement in certain
respects.
It is therefore hereby agreed by and between the parties thereto as follows :-
Firstly
Secondly
*Thirdly
*Fourthly-That this amendment shall be numbered as S1. Page No ......... of the Contract and that the
total number ofpages on the INDEX shall be amended to read as ........ in lieu of ...... .
*Fifthly-That all other terms of the contract shall hold good in all other respects and be in full force
and effect.
In Witness thereof the said parties have hereto set their respective hands as shown below.
Signature of Accepting Officer

(for and on behalf of the President of India)
Signature of the Contractor
Signature and. address of witness.
*Amend number to suit each case depending upon the Items mvolved in the amendment
354 PART-U : CONTRACT STAGE-APPENDICES
,. APPEN[)I}(l§~Jl
PERFORMANCE REPORT OF CONTRACTORS STAGE-1/11
CONFIDENTIAL
PERIODICITY REPORT
STAGE-I : 50% of the contract period in respect of following :
(i) All 'S' and 'SS' Class contractors irrespective ofthe value of contract and period of contract.
(ii) All un-enlisted contractors where either value of contract is more than Rs. 7.5 Crores or period of
contract is more than 18 Months.
STAGE-II : Within one month of completion ot contract irrespective of class of enlisted/ unenlisted
contractor's value of contract or period of contract.
1. CONTRACT PARTICULARS
(a) Contractor
(i) Index No.
(ii) Name
(b) Details of work
(i) Name of work
(ii) Contract Agreement No/Year
(iii) Value
(c) Dates of
(i) Commencement
(ii) Original Completion
(iii) Extended Completion
(iv) Actual Completion
(d) Date of Initiation of Performance
Report
(il Due Date
(ii) Actual Date
(e) Reasons for delayed initiation, it any
(f) Physical Progress
(i) Planned
(ii) Actual
II
RT-II : CONTRACT STAGE-APPENDICES 355
PERFORMANCE EVALUATION
The performance of the contractor to be evaluated on a scale of 1 to 10. For ser l(e) (-) 1 to (-) 10
arks can be given in case of tendency to create disputes, unreasonable attitude for settlement of DO's/Star
tes/Bills/Arb/Coutt Case etc.
s;
lifo.
(b)
(c)
(d) Site Management i.e., resources deployed, timely procurement of stores, testing of materials, rectification of
defects noticed durin construCtion includin observations, recoveries b STE Branch, visitin officers etc.
(e) Capabilities and co-operation to adhere procedural requirements, finalisation of DOs, Star Rates, RAR
re arations, final bill and reaction of users.
Marks b GE (Out of 50)
2. Marks b CWE (out of 30 in CE Contracts) (out of 50 in case of GE/CWE contracts)
3. Marks b CE Zone (out of 20 in case CE Contracts) (out of SO in case of GE(l) contracts)
4. Total out of 100 Marks
5. Remarks of Command CE (in case of CE contracts being executed by 'S'/'SS' class)
~ignature of GE ....................................................... . Date ................................ .

'Signature of CWE .................................................... .
'
Date ................................ .
I
[Signature of CE Zone ............................................... . Date ................................ .
!
[Signature of Command CE ..................................... . Date ................................ .
'I
,I
!
II
II
I
I
·~ APPENDIX.H.J
REPORT FOR GRANT OF EXTENSION OF TIME EXCEEDING 25% OF THE ORIGINAL
CONTRACT PERIOD OR EXCEEDING 3/9 MONTHS WHICHEVER IS MORE
(a) CA No. and Year and Amount of Contract.
(b) Name of Work
(c) Period for completion stipulated in the contract.
(d) 25% of original contract period (in months)
(e) Date of commencement of work as per W.O. No. 1
(l) Date of completion of work as per WO. No. 1
(t) (a) Amount of escalation that would have been payable and paid to contractor if work were
completed within original contract period.
(g) Extended date of completion (Period of extension ah·eady granted). Details of extension
granted.
1st extension upto and including Granted under CE Letter
No .. ,. ...... .
Dated,,,,,
2nd extension upto and including
(g) (a) Amount of escalation
(i) Paid in RARs upto and including,., .. ,,,,,
(Original date of completion) Rs, .. ,
(ii) f'aid/Payab1e in extended period
(h) Date upt:o which further extension of time is considered due/requested/under consiueration.
(h) (a) Anticipated amount of escalation that would become payable. after expiry of previously
extended date of completion and upto and including the date upto which the further
extension is considered due.
Gl Total period of extension considering (h)
(k) Reason/Causes for (h)
0) Give following information in respect of all causes listed in (k)
'
(i) Cause '
(ii) .Affected activities with dates of commencement and completion as per original CPM.
(iii.) Dates on which cause arose and date on which cause was removed.
(iv) Individual(s) responsible for the cause.
(v) Why couse could not be prevented.
I
(vi) Was Ute CPM network and dated Schedule reviewed and revised to re~schedule affected
'I
activities ref (ii) within the over all completion period.
(vii) If reply to (vi) is in affirmative, what were the re~scheduled dates for commencement
and completion of the affected activities (ref (vi) here in before).
(viii) What action was taken to remove t.he cause before the re~scheduled date mentioned
I
in (vii).
(n)
(m)
Confirmation that all reasons/causes necessitating extension of time are listed in (k) and
there are no other causes/reasons for which extension of time is due.
Confirmation that all pre-requisites for timely commencement and completion of balance
I
work other than those listed in (k) have been met with by the department and there shall be
no other reasons/causes requiring further extension. -
(o) Considered reasoned recommendations for disciplinary aCtion on account of each cause listed
in (k). I
Note :Considered reasons !mding to these recommendations are enclosed in signed Appendix (Action !
taken/proposed to be taken to prevent repetition of similar lapses also is stated in a separate para
in the enclosed Appendix),
'I
I
I '
(Accepting Officer)
PART-II: CONTRACT STAGE-APPENDICES 357
FORM OF YARDSTICK
R >.······.•·.·:.: ,_, · ·.......·. . ·.. ·.. ·.· ... ··~
~~.,.............. oes~ri~on of Work • • .Ite~s;!·oi:c!!:~~~~ two Item 2~!!:~;!';: ~ckof4 j
8
'> C _ . · •..•. ·. · •·· •·• ... ·.. ,··· ·-· ..•. •·.·.·.· ·. •. ·. ··.... Pe~centage of co.•. ~~ of.bui~ding Percentage of cost of building I
tl>."•'-2· .- '
1
. ··3········· ............ · 1
·· .. 4 .:
i- -'1~"·- -f:E~x~c: :av.:_:a~n~·o:.: n:. :an=d:. :c: :o:.: n: :cr:.: e:.: te: . .:.::in:..:fc:o:::.u::nd:::a::.:n:::'o:.::.n:::s:.. -----+-----"-3':::!o:..__ _ _ _+ ______4:_.:0ft: :.o______~~J
2. B1ickvvork upto and including DPC 8% SO;Q !
3. BrickworkfromtopofDPCuptotopofwindowcills 6% 8% ,i
and door frames fixed in position

~~~~,~~~~c=~~------+-----------------4-----------------·l
4. Brickwork from top of window cills to. top of door 12% 15%
lintels and lintels I
!
5. BriciG'ltork from top of door lintels upto under~ide 4% 10%
of roof and CSW!Vent frames fixed in position. I
6. Roofwork 24% 20% I
~
7. Internal Finishes 7% 5%
il 8. Floors So/o 5%
:1 9. External Finishes 4% 4% i
'
1
1 10. Doors, Windows & CSWs (Excluding Frames) and
cupboards, etc.
12% 12o/o
I
11. Sanitary wcrk 9% So/o
12. Miscellaneous 6% 4%
'I
li
I
I
ASSESSED VALUE OF WORK DONE AT THE TIME OF PREPARATION OF RAR
Ist Block 100% 100% 100% 100% 100% 100% 80% 80% 60% 80% 20% 20%
2nd Block 100% 100% 100% 100% 100% 80% 50% 20% SO% 30% 10% 10%
3rd Block 100% 100% 100% 100% 100% 80% 20% 10% 20% 10% 10%
Cost of one Block of 2 Md Officers' Qrs as per Sch 'N. Rs. 60,000/-
Percentage of 3% 4% 6% 12% 4% 24% 7% 5% 4% 12% 4% 9% 6%
cost of Building
v.liue of work 5400 7200 10800 21600 7200 37440 6300 3300 3120 7920 960 1440 1,12,680
done in 3 Blocks
.II' BLQ<;l(()f.FOURSERV~S QRS.
1st Block 100% 100% 100% 100% 100% 80% 50% 20% 50% 30%
2nd Block 100% 100% 100% 100% 100% 80% 20% 10% 10%
3rd Block 100% 100% 80% 10%
Cost of one Block of 4 Servants Qrs as per Sch 'P( Rs. 20,000/-
Percentage of 4% 5% 8% 15% 10% 25% 12% 5% 4% 12%
cost of BUilding
Value of work 2400 3000 4480 6000 4000 8000 1680 300 560 720
done in 3 blocks
TOTAL VALUE OF WORK DONE AS CARRIED TO PAR RB. 31,140/·
PART-II : CONTRACT STAGE•APl'ENDICES 359
STATEMENT OF STORES
(To be attached to IAFW-2263)
Part '!\. Amount to he included against item (ii) Estimated value of materials Ln cage 3, of the current
RAR.
I. Value of materials collected by the contractor from outside MES and lying at site of work
(unincorporated in the job) at market rate or prorata to contract rate, whichever is less.
•~~--.····
No.!•·; · .·•·•.· · ••D¢$;,..l~ti()nti£DU.~ciiat!l
> ;. . •. . •. ~(2.1aitttty__
·:.•·•···.• .>···:-.··.·.· .•.::• >'i .,
lia1:!iRS
••.. ·· .··
.··1··.·..
lTru't .····.•.•• :l\1\lpunt:is•
: > : •I·· ·•· · .·•...
(i) Bricks
. .
, (ii) Surkhi lime
(iii) Timber .
.
(iv)
Total Rs ........ "" ................ .
II. Value of Schedule 'B' materials lying at the site of work (unincorporated in the job) at Schedule 'B' rates.
~~~;:•. •.: ··~~~';"i;t16n~ijit..~ • .•.• . • •.• .• • ~ Qh~ti'titt'· · ·• : Jti.t~lts ····!··~···.Unit_.· · •· · · .· 1_Altio;.ntRs.. · ·

fi) Cement
(ii) Steel
I
(iii) !,,
_(ivl.
.
(v)
Total Rs ............. .
Amount under 'Pl. (I) Rs ............. .
Amount under 'Pl. (II) Rs ............ ..
Total, (carried to item (ii) of cage 3) Rs ............. .
Certified that the quantities of materials detailed above have actually been brought by the contractor
and are lying at site of work on the date of issue of this certificate; that any previous advances made on them
have been accounted for in this bill; and that these materials are adequately stored and or protected against
damage by weather or other causes, are of an imperishable nature and are all required for the work.
Part B : Recovery to be effected from the contractor.
Total value of materials issued to the contractor by MES under Schedule 'B' at Sch. 'B' rates.
_(P Cement .
. (ii) Steel
_(iii)
_(ivl
(v)
Total amount (carried to cage 3) Rs ................ .

Certified that all Government Stores issued to the contractor up to ..... have been included in the above
statement.
Date: GARRISON ENGINEER
360 PART-II : CONTRACT STAGE-APPE!\IDICES
BANK GUARANTEE BOND

(IN LIEU OF RETENTION MONEY)
(To be used by Approved Scheduled Banks)
Place of execution ........................ Name of State ................... .

Stamp Paper for Rs .................................. .
"In consideration of the President of India (hereinafter called "the Government") having agreed not to
retain Rs .......... (Rupees ......... only) out of the reserve or the retention money as provided under the terms
and conditions of Contract Agreement No ............... (hereinafter called "the said Agreement") made between
the President of India and Shri/S'Shri @ ...... •...... from the claims of the said Contractor(s) in respect of the
work done by the said Contractor (s). for the due fulfilment by the said Contractor (s) of the terms and
conditions contained in the said Agreement, on production of a Bank Guarantee for Rs. ... .... ... . (Rupees
............ only) we, ............. Bank* (hereinafter referred to as "the Bank''), do hereby undertake to pay the
Government, an amount, not exceeding Rs .......... (Rupees ............ only), against any loss or damage caused
to or suffered or would be caused to or suffered by the Government, by reason of any breach by the said
Contractor(s) of any of the terms or conditions contained in the said Agreement.
2. We ............ Bank, * do at the request of the said Contractor(s) hereby undertake to pay the amount
due and payable under this Guarantee without any demur, merely on a demand from the Government,
stating that the amount claimed is due by way of loss or damage caused to or suffered or would be caused to
or suffered by the Government by, reason of any breach by the said Contractor(s) of any of the terms or
conditions contained in the said Agreement or by reasons of the said contractor's(s') failure to perform the
said Agreement. Any such demand made on the bankshall be conclusive as regards the amount due and
payable by and the liability of the Bank, under this guarantee and we .............. Bank *, do hereby undertake
r to pay the Government the amount demanded notwithstanding any dispute or disputes raised by the said
contractor(s) on any ground whatsoever and notwithstanding any proceeding pending in any court or
tribunal relating to the said Agreement or this Guarantee, the liability of the Bank under this Guarantee being
absolute and unconditional. However, our liability under this Guarantee shall be restricted to an amount not
excee:.i~e~:.:::::.·:::.··~~~~~~:;t~~;·~~;~~ :::)~he Guarantee herein contained shall remain in full force and ~
effect during the period that would be taken for the performance of the said Agreement and that it shall
continue to be enforceable till all the dues of the Government under or by virtue of the said Agreement have
been fully paid and its claims satisfied or discharged or till .................... (Office/ Department), certifies that
the terms and conditions of the said Agreement have been fully and properly carried out by the said
contractor(s) and accordingly discharges this Guarantee. Unless a demand or claim under this Guarantee is
made on us in writing on or before the ................... we shall be discharged from all liability under this
Guarantee thereafter.
4. We, ..................... Bank*, further agree with the Government, that the Government shall have the
fullest liberty without our consent and without affecting in any manner our obligations hereunder or to vary
. any of the forms and conditions of the said agreement or to extend the time of performance by the said
Contractor(s) from time to time or to postpone for any time or from time to time, any of the powers
exercisable by the Government against the said Contractor(s) and to forbear or enforce any of the terms and
conditions relating to the said Agreement and we shall not be relieved from our liability by reason of any
such variation or extension being granted to the said Contractor(s) or for any forbearance, act or omission on
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the part of the Government or any indulgence by the Government to the said Contractor(s) or by any such
matter or thing whatsoever, which under the law relating to sureties would, but for this provision, have effect
of so relieving us.
5. We, .................. Bank*, lastly undertake not to revoke this Guarantee during its currency except with
the previous consent of the Government in writing and that our liability under this Guarantee shall not be
impaired or extinguished on account of any change in the Constitution of the said Contractor(s) ."
6. Notwithstanding what is state here in above our liability under this guarantee is restricted to Rs.
.. .. .. .... .. [Rupees .............. only] and shall be valid upto ............. Unless a demand/ claim is made to us in
writing on or before that date we shall be discharge ffom all liabilities under this guarantee.
Dated the .................... day of .................... 20 .............. .

for ........................... Bank*
Manager
Branch Code, Personal Code
Seal of Bank
The above guarantee is accepted by the President of India.
Signature .................... Dated .................. ..
For and on behalf of the President of India.

Name and Designation
**
*In the case of Banks, other than the Nationalised Banks the word· 'Ltd' will be added after the word 'Bank: where the
asterisk mark is indicated,
@
For Proprietorship concern
Shri .... .... .. .. .. .. .. ..................... Son of .. .. .. .. .. ...... .. ...... .. .. .. ........ resident of .................................. ..
carrying on business under the name and styles of ............ .... ................ at .................................. ..
(hereinafter called 'the said Contractor' which expression shall unless the context requires otherwise include
his heirs, executors, administrators and legal representatives).
For Partnership concerns
(i) Shri ....................................... Son of .................................. resident of ................................... and
(ii) Shri ........................... Son of .......................... resident of ............................... , carrying on
business in copartnership under the name and style of ...................... at ................... (hereinafter
collectively called 'the said Contractors' which expression shall unless the context requires
otherwise include each of them and their respective heirs. executors, administrators and legal
representatives).
For Companies
.......................... Ltd. an existing Company within the meaning of the Companies Act 1956 and
having its registered office at ......................... in the State of .......................... (hereinafter called
'the said Contractor' which expression shall unless the context requires otherwise include their
successors and assigns).
*'' To be accepted by the Accepting Officer of the Contract and the blank space in para 3, line 5, shall be filled to
indicate the said 'J'l.ccepting Officer".
362 PART-II~ CONTRACT STAGE-APPENDICES
BANK GUARANTEE BOND

(IN LIEU OF RETENTION MONEY)
(To be used by unapproved Scheduled Banks)
Place of execution ............................ Name of State .......................... ..
Stamp Paper for Rs ......................... .
'In consideration of President of India [hereinafter called "The Government"] having agreed not to
retain Rs ................. [Rupees .................. only] cut of the reserve or the retention money as provided under
the terms and conditions of Contract Agreement No .................... [hereinafter called 'the said Agreement']
made between the President of India and Shri/S'Shri @ .......................... from the claims of the said
Contractor(s) in respect of the work done by the said contractor(s) for the due fulfilment by the said
Contractor(s) of the terms and conditions contaiued in the said Agreement, on production of a Bank
Guarantee for Rs ............... [Rupees ............... only], we .............. Bank Ltd. [hereinafter referred to as 'the
Bank'], do hereby undertake to pay the Government, an amount not exceeding Rs ................... [Rupees
.............. only], against any loss or damage caused to or suffered or would be caused to or suffered by the
Government, by reason of any breach by the said contractor(s) of any of the terms or conditions contained in
the said Agreement.
2. We ..................... Bank Ltd., do at the request of the said Contractor(s) hereby undertake to pay the
amount due and payable under this Guarantee without any demur, merely on a demand from the
Government stating that the amount claimed is due by way of loss or damage caused to or suffered or would
be caused to or suffered by the Govt. by reason of any breach by the said Contractor(s) any of the terms or
conditions contained in the said Agreement or by reason of the said Contractor(s) failure to perform the said
Agreement. Any such demand made on the bank shall be conclusive as regards the amounts due and payable
by and the liability of the Bank, under this Guarantee and we ......................... Bank Ltd, do hereby undertake
to pay the Government the amount demanded notwithstanding any dispute or disputes raised by the said
Contractor(s) on any ground whatsoever and notwithstanding any proceedings pendiug in any court or
tribunal relating to the said Agreement or this Guarantee, the liability of the Bank under this Guarantee being
absolute and unconditional. However, our liability under this Guarantee shall be restricted to an amount not
exceeding Rs ................. (Rupees .................... only). We ................... Bank Ltd. authorise the Government to
recover the same directly from the Reserve Bank of India from our deposits of cash and/ or securities with the
Reserve Bank ofindia. The said Reserve Bank of India have at the request of 'the Bank' agreed to pay the
Government on demand and from out of the said deposits any sum which may become payable to the
Government under this Guarantee.
3. We ................... Bank Ltd. further agree that the Guarantee herein contained shall remain in full
force and effect during the period that would be taken for the performance of the said Agreement and that it
shall continue to be enforceable till all the dues of the Government under or by virtue of the said Agreement
have been fully paid and its claims satisfied or discharged or till .................... (Office/Department), certifies
that terms and conditions of the said Agreement have been fully and properly carried out by the said
Contractor(s) and accordingly discharges this Guarantee. Unless a demand or claim under this Guarantee is
made on us in writing on or before the ................... we shall be discharged from all liability under this
Guarantee thereafter.
4. We, .................................. Bank Ltd. further agree with the Government that the Government, shall
have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to
vary any of the terms and conditions of the said Agreement or to extend the time of performance by the said
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Contractor(s) from time to time or to postpone for any time or from time to time, any of the powers
exercisable by the Government against the said Contractor(s) and to forbear or enforce any of the terms and
conditions relating to the said Agreement and we shall not be relieved from our liability by reason of any
such variation or extension being granted to the said Contract0r(s) or for any forbearance, act or omission on
the part of the Government or any indulgence by the Government to the said Contractor(s) or by any such
matter or thing whatsoever, which under the law relating to sureties would, but for this provision, have ,[feet
of so relieving us.
5. We, ................ Bank Ltd. lastly undertake not to revoke this Guarantee during its currency except
with the previous consent of the Government in writing and that our liability under this Guarantee shall not
be impaired or extinguished on account of any change in the constitution of the said Contractor(s)."
6. Notwithstanding what is stated herein above our liability under this guarantee is .restricted to Rs .
................ (Rupees ............ only) and shall be valid upto ................. Unless a demand/claim is made to us in
writing on or before that date we shall be discharged from all liabilities under this Guarantee.
Dated the .............................. day of .............. ., ..... 20 .. .
for ....................................... Bank Ltd.
Manager
Seal of Bank
The above guarantee is accepted by the President of India.
Signature ................... Dated .................. .
For and on behalf of the President of India
Name and Designation ............................ .
**
@
For Proprietorship concern
Shri ................... Son of ....................... resident of ................. carrying on business under the name and
styles of .......................... at ................... ., .. .. .. .. .. (hereinafter called 'the said Contractor' which expression
shall unless the context requires otherwise include has heirs, executors, administrators and legal
representatives).
For Partnership concerns
(i) Shri .............. Son of .................. resident of ............. and
(ii) Shri . .. .. .. .. .. . ... .. .. . .. .. .. . Son of .. .. .. .. .. . ... .. .. .. .. .. .. resident of ............................... , carrying on
business in copartnership under the name and style of ...................... at ................... (hereinafter
collectively called 'the said Contractois' whkh expression shall unless the context requires
otherwise include each of them and their respective heirs. executors, administrators and legal
representatives).
For Companies
.......................... Ltd. an existing Company within the meaning of the Companies Act 1956 and
having its registered office at .......... ., ............. in the State of .......................... (hereinafter called
'the said Contractor' which expression shall unless the context requires otherwise include their
successors and assigns).
** To be accepted by the Accepting Officer of the Contract and the blank space in para 3, line 5, shall be
filled to indicate the said '1\.ccepting Officer".
364 PART-ll : CONTRACT STAGE-APPENDICES
FORMAT FOR EXTENSION OF BANK GUARANTEE

STAMP PAPER
To,
Extension of validity date of our Bank Guarantee Bond No ........................... (In lieu of Security
Deposit/Retention Money) dated .................. for .................. CA No ................ Contractor .................... ..
We ..................... extend the validity period of above mentioned Bank Guarantee Bond which was due
to expire on .... ..... ........ upto ..... ..... ... ..... All other Terms and Conditions of the Bond shall remain
unchanged.
This will form part of the Original Bank Guarantee.
Manager
Seal of Bank
The above Guarantee Bond is accepted by the President of India.
(Rank)
Dated: For and on Behalf of The President of India

ENCASHMENT NOTICE FOR BGB

REGD.ND
OFFICE OF THE
ACCEPTING OFFICER
File No ..................... /ES Date ......................... .
The Manager ··········'"·····• ........................ .
Subject : CA No ................................. .
Name of Work : .......................... .
Dear Sir (s),
1. Whereas you have furnished a Bank Guarantee Bond bearing No. ...... ...... ... ... . .. .. .. .. dated
..... ;............... for Rs .............................. /- (Rupees ........................... only) in lieu of retention money against
Contract Agreement No ............................. made between President of India and M/s ......................... , which
is valid upto .......................... .
2. And whereas it is expressly provided in the aforesaid guarantee bond that you undertake to pay the
amount due and payable under the guarantee without any demur merely on a demand from the Government
stating that the amount claimed is due by way of loss or damage caused to or suffered or would be caused to
or suffered by the Government by reasons of any breach by the contractor of any of the terms and conditions
contained in the said contract agreement or by the reasons of contractor's failure to perform the said
agreement.
3. And whereas there has been a breach by the Contractor of the terms and conditions of the agreement.
4. I on behalf of the President of India, hereby serve you with this notice of demand against the
aforesaid Bank Guarantee Bond for the sum of Rs .................. 1- (Rupees ....................... only) on account of
loss/damage caused to or suffered by the Government.
5. It is requested that the aforesaid sum as demanded be paid immediately.
6. The amount may be remitted in the form of treasury challan in favour of GE ................. .
Yours faithfully
Accepting Officer
FOR AND ON BEHALF OF THE PRESIDENT OF INDIA
Copy to:
REGD.ND REGD.ND
M/s .................................. . The Zonal Manager
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PCDNCDA I
CWE
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GE ............. -In case the amount is not received by .............. , please inform this HQ telegraphically.
AO/AAOGE ............ .
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"' APPENDIX 19,)
CHECK LIST OF DOCUMENTS/DETAILS TO BE INITIATED WHILE SEEKING APPROVAL FOR
ENHANCEMENT IN DO LIMIT
1. Information regarding particulars of the contract as per Annexure I enclosed.
2. Statement of case bringing out brief of the contract, circumstances leading to change in DO limit &
lapses if any including names of concerned officers for the lapses Status of extra work i.e. whether extra work
beyond DO limit executed at site or awaits approval, duly signed by all concerned.
3. Copy of Admin approval & TS
4. Legible CTC of CA
5. Comparative statement of unit rates & amounts quoted by all the participating bidders at the time of
tender (duly checked & signed by all concerned).
6. Comparative statement of Ist, lind and Illrd lowest tenderer with finally executed quantities/revised
scope of work to ensure that lowest tenderer remains lowest (duly checked & signed by all concerned).
7. Copy of FSTR of the job to check availability of funds for proposed extra work.
8. Contractor's willingness in writing for revised DO limit including draft amendment to contract signed
by the contractor & witness incorporating revised DO limit.
9. Action taken with the contractor for reduction in rates (where extra work is being proposed) &
contractor's response thereof to be indicated in the statement of case.
10. Calculation details of revised DO limit for which approval sought.
11. It has also been certified :
(a) That there is no variation in quantities of items of work where freakishly high/low rates were
observed at the time of acceptance of tender.
(b) That with revised DO limit as proposed no unintended benefit shall accrue to the contractor.
(c) That with revised DO limit the lowest tenderer remains lowest.
(d) That there exists no lapses in planning of the work and in framing of the contract resulting into
increase in DO limit.
(e) The DO limit for which sanction has been sought for is final & that all star rates proportional rates
have been finalized & that there is no likelihood of any change in the DO limit. The final bill is
also with audit authorities and they have also sought for revision of DO limit as proposed.
Accepting Officer
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PROFORMA FURNISHING BRIEF PARTICULARS OF THE CONTRACTS INVOLVING REVISED DO

LIMIT
(a) Name of work, CA No. & Name of the Contractor,
(b) Contract accepted on & amount of the contract.
(c) Date of commencement Original date of completion & extended date of completion if any,
(d) Present progress of the work,
(e) DO limit mentioned in the contract,
(f) Revised DO limit for which sanction sought for,
(g) Reasons for revised DO limit & lapse if any and all other relevant information & certificates as per
check list,
(h) The date when necessity of revised DO limit was felt by the Accepting Officer,
U) Is there any delay in initiating the cases for revised DO limit. If yes, reasons for the same and
persons responsible,
(k) Whether there is any variation in quantities/scope of work where freakishly high I low rates are
involved. If yes, give details.
Accepting Officer
1
., Appe,.cli~~~~~
Government of India, Ministry of Steel, (SAIL-PC Section)
Letter No. 16(9)/2004-SAIL(PC) Dated : 9th July, 2004
To
The Chief Engineer (FY) Hyderabad,

Opp: Parade Grounds,
Secunderabad-500 003.
Subject : CA No.CE(FY)/HYD/SEC/25 of 2001-02 Prov. of

steel racks for EME records at Secunderabad-
Ref. received from Chief Engineer(Fy.) Secunderabad
Sir,
I <Uil directed to refer to your letter No. 830203/SEC/ ARB/35/E8dated 5th June, 2004 on the
· subject mentioned above and to statecthat Steel Authority of India Ltd. (SAil) is a Public Sector Undertaking
of the Government of India, (Go! shareholding 85.82%), under the administrative control of the Ministty of
Steel. However, regarding price fixation, it may be mentioned that in a liberalized and deregulated
environment, the Government does not intervene to influence prices. Prices are determined by free interplay
of market forces of demand and supply and fixed by the Company without any intervention of the
Government.
Yours faithfully,
Sd/-
(G.L. Dogra)
Section Officer
23012601
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T-ll: CONTRACT STAGE-APPENDICES 369
APPENQI~'~Q~l}~
ECK LIST FOR ENGINEER-IN-CHARGE AND JE (QS&C) TO VERIFY THAT ALL DOCUMENTS
MPRISING AND ACCOMPANYING FINAL BILL ARE COMPLETE
The documents comprising and accompanying the bill are :
(a) Bill forwarding Certificate-IAFW-2254.
(b) Final Contract Bill Form-IAFW-2262.
(c) Statement of Stores issued and recoveries to be effected including statement ofUSRs.
(d) Statement of Recoveries in respect ofT and E including statement of USRs.
(e) Statement of Recoveries in respect of water.
(f) Statement of other Recoveries (rent, electricity, compensation for delay, work completed by DEL or
through other agency, etc.).
(g) Certified true copies of work and Deviation orders (including DOs for extension of time)
accompanied with copies of approval of special Rates where involved.
(h) Requisitions (IAFW-1833/2158) and/or Abstracts (IAFW- 2264).
(i) Measurement Books mentioned on page 1 of the Bill (IAFW-2262).
G) Demolition Certificate with details (where applicable).
(k) Copy of Completion Certificate issued by the GE.
(1) Correction sheet showing financial effect due to amendments during technical and Audit check (to
be signed by the person amending the amount and also by the contractor).
(m) Properly machine numbered receipts for return of empty cement bags from authorised bag
collecting agents (where applicable).
(n) Inventory of fittings and fixtures in buildings before dismantling.
(o) Test report on proper form for Electrical Work, Air-conditioning and the like (where applicable).
(p) No demand certificate by the contractor.
·Notes:
: 1. Any other documents specifically mentioned in the contract necessary for Technical Check and audit may also be attached.
i 2. It is also important that all signatures on Bills and other connected documents are dated.
3. In view of the number of enclosures to Final Bills, it is suggested that a thick cover sheet is adopted similar to a file cover
for both the Original and Duplicate Copy of the Bill and an Index Sheet showing the annexures and pages of each enclosure
attached to the inside of the cover and signed by the Engineer-in-Charge (AEE/Supdt. Gde I) and the contractor.
CHECKLIST
Questionnaire/check list to be used by the Engineer-in-Charge and the JE (QS&C) as an aide memoire
to ensure that the bill is complete in every respect and it has been correctly prepared is given herein below :
1. Check that the following supporting documents are attached and necessary cross references given on
pages 1 and 2 of the Final Bill Form :
(a) Measurement Books.
I
(b) Original Requisitions/Original Absttacts accepted by the contractor.
(c) Certified true ·copies of Work and Deviation Orders (including orders for extension of time)
alongwith true copies of approval of special Rates where involved.
(d) Statement for the Recoveries of stores.
(e) Statement for Recoveries ofT and P.
(f) Statement for Recoveries for Water.
(g) Statement for Recoveries of other miscellaneous items (such as rent, electricity, compensation for
delay; default, etc.).
Note : The specific item of recovery will be indicated.
(h) Copy of Completion Certificate signed by the GE.
(i) Demolition Certificate (where applicable) showing on the reverse, details of disposal of materials
obtained from demolition and page Nos. of the Demolition Register on which materials were taken
on charge.
2. Has the bill (IAFW-2262) and the above enclosures been signed and dated by the contractors' accredited
representative ?
(Note : Remember that the contractor is not to sign at po;rc IX of the Bill Form till the bill is audited by C"DA).
3. Have all the blanks on page 1 of the Bill been completed ?
4. Has the bill been prepared in accordance with Appendix 'I' of the Regs. for the MES and the abstract
number shown accordingly on page 1 of the Bill ?
(Note : This applies to Lump Sum contracts).
5. Have all the RARs been taken into account and shown in the Summary of the Bill ?
6. Check and confirm that the 'No Demand' certificate at the end of the summary of the Bill has been
signed by the contractor's accredited agent without any reservations.
Note : Remember that a bill with reservations which are vague (i.e., with 'endorsement' such a.s "Signed under protest'; or
"subject to our claims which will follow" or any other similar endorsements) will NOT be accepted from Contractors.
Contractor shall be asked to clar~fy these reservations by submitting priced ciaims.
7. Stores Statement
(a) Have the stores in Sch. 'B' been issued and accounted for? If not, give reasons. Where a store
shown in Sch. 'B' has not been issued because it was not required for the work, has the GE
attached a certificate accordingly?
(b) Have the stores other than those mentioned in Sch. 'B' been issued (either in lieu of or additional
to). If so, have necessary amendments to the contract been made? Have all the USRs been
reconciled with the Statement of Stores and transfer vouchers, if any attached?
(c) Have all the over-issues of the stores been returned or accounted for, as per the contract conditions
orE-in-C's instructions.
(d) Hil11e all empty containers been returned or accounted for, as per the contract conditions?
8. Statement of Recoveries for T & P
(a) Are all items ofT and P shown in Sch. 'C' included? (If the contractor was allowed to use his own,
it should be so stated?)
(b) If T and Pother than that shown in Sch. 'C' have been issued (in lieu of or additional to), have
necessary amendments to contract been accepted?
(c) Have the relevant Log Book been checked by the AO/AAO at the stage of every RAR? If not, have
the Log Books been now forwarded to the AO/A/1.0?
9. Recovery of Water
(a) Has the recovery for water issued been accounted for as per the conditions of the contract?
(b)In the event of the contractor having to make his ow'l1 arrangements for water, have you attached
the necessary certificate? (This refers to contracts where "Vater is not to be issued by MES),
10. Recovery for electric energy (if applicable)
Has recovery for electric energy issued to the contractor been accounted for as per the conditions of the
contract or as per the subsequent amendment to the contract?
11. If the Work was not completed within the contract or the extended period, has the amount of
compensation due from the contractor been included in the bill under "other recoveries".
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12. Has the deviation limit been exceeded? If exceeded, has an amendment to the contract been issued?
(Give reference).
13. Are there any other recoveries from the contractor to be taken into consideration (viz. recovery for
default or overpayment on other contracts?)
The following are to be completed before the bill is sent to the CDA.
14. Have the Deviation Orders/Amendments sent to the CDA soon after these been approved and accepted
by the parties concerned?
15. Has the Final Bill been checked by JE (QS&C) and Surveyor Officer in CWE/CE office (in respect of GE
(I)) and Cage IV of the Bill completed?
The following will be completed by the Engineer-in- Charge/AAO after the bill has been
audited by the CDA and before the original Bill is returned to CDA for record :
16. Confirm that payment is made through a crossed cheque in the name of the contractor. (Give
reference).
17. Was the contractor informed of the amendments to the Bill at every stage and his concurrence to the
Amendments obtained?
18. Has the Duplicate copy of the Bill and enclosures been amended to agree with the original.
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" APPENDIX 2!)j~,

EXAMPLES OF OBJECTIONS PERTAINING.TO ADMINISTRATIVE OR PROCEDURAL MATI"ERS AND
MATI'ERS ENTIRELY WITHIN THE DISCRETION OF ENGINEERS
ADMINISTRATIVE
1. (a) Payment involves excess over adm. approval or allotment.
(b) Regularisation of infructuous expenditure.
(c) Objections pertaining to specification adopted through deviation orders on the ground that the
specification adopted was not authorised for the particular building.
(d) When work ordered on a contractor as a deviation is not considered by audit as being contingent
upon the work included in the contract and they hold that a Single Tender Report to next higher Engineer
Authority is necessary.
PROCEDURAL
2. (a) Some blanks in the final bill form (IAFW-2262) not complete, e.g. date of completion of work not
shown but completion certificate attached to L'le bill.
(b) Date of completion shov\Til on final bill but completion certificate not attached to it.
(c) Whether a particular item of expenditure should be allocated to maintenance grant or to a project
and whether a particular item of work should have been ordered on the contractor or carried out through a
Term Contract.
Note : In such cases instead of retuming the bill, the Executive should be aslced to forward the necessary information but
audit of the bill should continue.
MATTERS ENTIRELY WITHIN THE DISCRETION OF ENGINEERS
3. (a) The decision on extensi.on of time will be communicated by the Accepting officer to CWE/GE with
copy to the PCDNCDA among others and reasons for grant of extension will be indicated in brief on the
PCDA's/CDA:s copy. Audit should not call for further details regarding grant of extension of time as a matrer
of routine, this matter being within the purview of Engineers. Should, however, they wish to know further
details in a particular case in which grant of extension appears to them, to be unjustit1ed, they may ask
accepting officer for further details. Should they wish to pursue the matter further, thereafter, they should
bring it to tl1e notice of CWE in contracts concluded by GE's and to CEs in contracts concluded by them and
by CsWE for any P~tion which the Engineer authority may wish to take. Payment of bills should not, however,
be held up on this account.
(b) Asking for reasons for deviations ordered for engineering reasons, e.g. ordering a small quantity of
painting work in a large contract to some items of joinery, painting of which was not originally included in
the contract.
(c) Questioning devaluation of items of furniture though authorised under Condition 20 of
IAFW-1815-Z. A copy of devaluation statement should, however, be furnished to AO/MO/CDNPCDA for
checking of caiculations.
(d) Questioning as to why contractor was allowed to return T & P twi.ce or thrice during the period of
the contract.
(e) In the event of a deviation being ordered on account of non-availability of Government store,
PCDNCDA wanting AO/AAO to again verify that the particular store was not in fact available for issue.
.lT-ll : CONTRACT STAGE-APPENDICES 373
PARA 258 OF FINANCIAL REGULATIONS PART I

yment of Contractor's Bills to their Bankers
The following procedure shall be observed wiL'J. regard ro the payment of Contractor's bills to their
nks.
All bills must be receipted by the contractor under the words 'received payment' and be endorsed by
n in favour of the bank under a separate signature. If the bank is a collecting agency and is not included in
e second schedule to the Reserve Bank of India Act, the contractor will be required, in addition to execute a
twer of attorney in favour of the bank If the collecting bank is a Scheduled Bank, payment can be made
ithout a power of attorney. If, however, it is a financial bank, the contractor will have to execute an
·evocable power of attorney or deed of assignment in favour of that ba.'lk, provided that if a deed
signment is executed, it shall >Jlecify the debit and be stamped under the Indian Stamp Act or bear
,rtificate of exemption from stamp duty from a competent authority. The power of attorney or deed of
;signment will be subject to the approval of Government.
In such case~ Government will not, as a rule, make any payment to the contractor, without the
o.owledge of the bank. If, however, the contractor presents a bill for payment direct, and does not endorse it
1 favour of the bank, while every effort will be made to secure payment to the bank, a payment to the
~ntractor will constitute a full acquittance so far as Government is concerned. The bank shall be required to
ive a written acknowledgement of this condition as part of the arrangement under which Government
ecognises the power of attorney or the deed of assignment.
lote : The above procedure wil1 not, in anyway, affect rights of Government to deduct from bills (Whether endorsed in
favour of a bank or not) any sums due to them from the contractors on account of penalties, overpayments etc., on
the contract to which the bills pertain, or on any other contract, with the Government of India.
, Instructional Letter from contractors fotwarcling powers of attorney deeds of assignment should
p.clicate whether the bank in whose favour such a document has been executed will function as financing
'
)ank or a collecting agency.

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FORM FOR APPROVAL OF SPECIAL RATE
SPECIAL RATE {STAR RATE/PROPORTIONAL RATE) No ....... .
Contact No ............................... Contractors .......................................... .
Recommended .................................. GE .............. Date .......................... .

Checked .................................. DCWE (C)* ........... Date ......................... .
Checked............................ Director (C)* .............. Date .......................... .
Approved ............................................................. Date .......................... .
(Officer competent to approve rate)
* GlVCWlVCE
Accepted .................. Signature of contractor.................. Date ................ .
*Delete whichever is not applicable.

FORM FOR ANALYSIS OF SPECIAL RATE
SPECIAL RATE (*STAR RATE/PROPORTIONAL RATE) No ••..•.
Contract No ................................ , Contractm: ....................................... .

............................................. Description............................................... .
.................................................... per..................................................... .
Data per ............................................................................................... .
Details :
Total Cost Rs .................. per............... ..
RateRs .............................................. ..
per....................................................... .
*JE (QS & C) ........................................ .
Prepared by me ..................... . i
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*AGE (Contracts) ................................. . I
•!'
Certified that rates of materials including discount have been verified from the market and labour
,contents applied are as actually observed at site of work
Engineer in charge
I
1\ccepted subject to approval by

pompetent authority................................. . Contractor
Date .......................... .
* Delete whichever is not applicable.
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376 PART-ll: CONTRACT _STAGE-APPENDICES
II APPEI.fl,')f~I~IB
LATEST FILE VAUDATION UTIUTY FOR QUARTERLY e- TDS/TCS RETURNS
e-TDS
Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties
(deductees) are required to deduct tax at source (Tax Deducted at Source-TDS) from these payments and deposit the same at any of
the designated branches of banks authorised to collect taxes on behalf of Government of India. They should also furnish TDS returns
containing details of deductee(s) and challan details relating to deposit of tax to lTD.
As a part of automation of collection, compilation and processing of TDS returns lTD has notified an "Electronic Filing of
Returns of Tax Deducted at Source Scheme, 2003". It is applicable to all deductors furnishing their TDS return in electronic
form. As Per this scheme :
• It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their IDS returns Search the website
in electronic form (e-TDS return).
• From F.Y. 2004-2005 onwards furnishing TDS returns in electronic form is also All Words
m~datory for government deductors in addition to corporate deductors.
• Deductors (other than government and corporates) may f.tle TDS return in electronic or Detailed Search
physical form.
• National Securities Depository Ltd. (NSDL) as the e-IDS Intermediary (appointed by Search for TIN -FC near your
lTD) 'receives, on behalf of ITD, the e-TDS returns from the deductors. location
Choose a State
Deductors can submit e-TDS returns through TIN-Facilitation Centres (TIN-FC) established
by NSDL or directly upload through NSDL web-site.
e-TCS
TCS means collection of tax at source by the seller (collector) from the. buyer
(collectee/payee) of the goods (specified U/s 206C of Income-tax Act, 1961, like timber
obtained under forest lease, scrap, any other forest produce not being timber or tends
leaves etc.,). For e.g. if purchase value of goods is Rs. 10,000/-, the buyer will pay an
amount of Rs. 10,000/- + x (x being the value ofTCS as prescribed under Income-tax Act,
1961) to the seller. The seller will deposit the tax collected at source (TCS) at any of the
designated branches of the authorised banks.
Following the automation of TDS returns in 2003, ITD has now notified an "Electronic
Filing of Returns of Tax Collected at Source Scheme, 2005". It is applicable to all
deductors furnishing their TC& return in electronic form. As per this scheme :
• It is mandatory for corporate and government deductors to furnish their TCS returns in
electronic form (e-TCS return) from F.Y. 2004-2005 onwards.
• Deductors (other than government and corporates) may file TCS return in electronic or
physical form.
• NSDL as thee-TCS Intermediary (appointed by lTD) receives, on behalf oflTD, the e-TCS
returns from the deductors.
REVISED FORMS AND FILE FORMATS FORe·TDS/e·TCS RETURNS

Financial Form Periodicity Remarks
Year
2002 24-TDS Annual Corporates mandatory to file in
2003 26-TDS Annual electronic form Other deductors
2003 27-TDS Quarterly may file in electroniC form or in
2004 physical fmm
Form 27A to be filed in physical form with each return submitted
through TIN-FC
2004- Revised Annual Corporates,
2005* 24-IDS Annual Government/
Revised Quarterly
26-TDS Annual Organisations mandatory to
Revised me in electronic form
27-TDS Other deductors may file
27E-TCS in electronic form or in phy,;ical form
Form 27A to be filed in phy,;ical form with each e-TDS return and
Form 278 to be filed in physical form with each e-TCS return submitted
through TIN-FC
2005- 24Q· Quarterly Cotporates,
2006** TDS Quarterly Government
26Q- Quarterly Departments/
TDS Quarterly Organisations-
27Q- mandatory to file in
TDS electronic form
27EQ· Other deductors may file in electronic form
TCS or in physical form
Form 27A to be fJed in physical form with each return submitted through TIN-FC
*FOrms for TDS/TCS returns have been revised by lTD. Corresponding file formats for
e-ms (Form 24, 26, 27) and e-TCS (Form 27E) have been notified by lTD and have come
into effect from May 1, 2005.
**e-TDS/e-TCS returns will be filed quarterly for F.Y. 2005-2006. The file formats for
quarterly returns (Forms 24Q, 26Q, 27Q artd 27EQ) have been notified by the lTD and
have been made available on NSDL web-site.
Deductors furnishing e-TDS/e-TCS returns are required to furnish a control chart-Form
27N27B in physical form along with the e-TDS/e-TCS return furnished in CD/floppy.
Form 27A is a summary of TDS return (Form 24, 26 or 27), which contains control totals of
'Amount Paid' and 'Income tax deducted at source'.
Form 27B is a summary of e-TCS return (Form 27E) which contains 'Amount Paid' and
'Income Tax Collected at Source). The control totals mentioned on Form 27N27B should
match with the corresponding control totals in e~TDS/e-TCS return file. Form 27A is
required to be furnished separately for each TDS return (Form 24, 26 or 27). Form 27B is
required to be furnished separately for each TCS return (Form 27E).
Procedures and guidelines for preparing and furnishing e-TDS/e-TCS return are given in
the Deductor's Manual.
NSDL has developed a freely downloadable utility called File Validation Utility to verify
whether the e-TDS/e-TCS return files prepared by the deductors/ collectors conform to the
prescribed format.
@ Copyright 2004/National Securities Depository Limited
(NSDL) Page last modified on : July 20, 2006.
* in Figures
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378 PART-II : CONTRACT STAG:t. 'l'PENDICES
Form No. 27A

Form for furnishing information with the statement of deduction/collection of tax at source (tick whichever is applicable) filed on computer
media for the period (From ....... I ....... I ...... to ....... I ....... I ...... (dd!mm/yy) #
1. (a) Tax deduction Account No. (d) Financial Year
(b) Permanent Account No. (e) Assessment year
(c) Form No. __:=] (f) Previous receipt number
(in case retunVstatement has

been filed earlier)
2. Particulars of the deductor/collector of tax 3. Name of Lhe person 'responsible for deduction/collection
(a) Name (a) Name
(b) Type of deductor* (b) Address
(c) Branch/division (if any) Fiat No.
(d) Address Name of the premises/building
Flat No. Road/street/lane
-
Name of the premises/building Area/location
Road/street/lane f---Town/City/District
Area/location State
Town/City/District Pin code
State Telephone No.
Pin Code E-mail
Telephone No.
E-mail
4. Control'totals
-sr., 1\lo•.l>f • Ar....ut.~ _._T~> T~ .•. ··:
1\!0• Cte.tlictee/ i>#d liB. .il.edliCteilJ. <lep<>sited
party ¢ollecl;lon .(T~ ·
,''lr~eords, )18. .•.:i:haJiaJ1
• 8Jl1Qurtt):
• )18; .
Total
5. Total Number of Annexures enclosed
6. Other Information
VERIFICATION
I, ............................................................................................... , hereby certify that all the particulars furnished above are correct and complete.
Place: Signature of person responsible for deducting/collecting tax at source .......................... .
Date: Name and designation of person responsible for deducting I collecting tax at source ........................ ..
I
* Mention type of deductor - Government or Others
# dd!mm/yy : date/month/year
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1
COMMON TYPES OF IRREGULARITIES IN LABOUR

REGULATIONS IMPLEMENTATIONS
1. Non display of notice regarding wages and hours of work.
2. Non-maintenance of wages register.
3. Non-maintenance of wages slip/card.
4. Non-maintenance of fines register.
5. Non-maintenance of deductions register.
6. Non-display of acts and concessions for which fines can be imposed.
7. Delay in payment of wages.
8. Non-payment of wages.
9. Irregular imposition of fines.
10. Irregular deduction of wages.
LIST OF COMMON IRREGULARITIES OBSERVED BY
CHIEF LABOUR COMMISSIONER (CENTRAL)
1. Notices showing the rates of wages, hours of work, wage periods, date of payment of wages,
names and addresses of inspectors having jurisdiction and detail of payment of unpaid wages
required to be displayed in English and Hindi and local language understood by the majority of the
workers in conspicuous place at the establishment were not displayed-Rule 81 (1) and copy of this
notice is not sent to inspector-Rule 81 (2).
2. Date of commencement and completion of each contract work is not intimated to the Inspector-
Rule 81 (3).
3. Register of contracts is not maintained in Form XII.
4. Change in the particulars specified in the certificate of registration is not intimated to registering
officer- Rule 18 (4).
5. Principal employer's representative has not been nominated/not ensuring presence of authorised
representative to witness payment of contract worker/ has not endorsed requisite certificate in
the register of wages.
6. Drinking water facilityI canteen not provided at the works place.
7. Annual Return in duplicate not submitted in Form XXV within the prescribed time as per Rule 82
(2).
8. Copy of registration certificate not displayed.
9. Principal Employer's failure to make application for registration of the establishment.
(Note : The above list is not exhaustive but only common irregularities are listed above. All instructions and labour
laws/rules are to be complied with.)
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" APPENDflt~!~l%
Advice of Ministry of Law With Regard to :
(A} Applicability of Conditions 54 & 55 of MES General Conditions of Contracts,
{IAFW-2249} in the event of Contractor's Death
AND
{B) Procedure to be followed for obtaining names and addresses of legal successors of the
deceased.
1. Under Section 37 of Indian Contract Act, the parties to contract must either perfomi or offer to
perform the respective promises, unless such performance is dispensed with or excused under the provisions
of law. The section goes on to make it clear that promises bind the representatives of the promisor in case of
death of such promisor before performance unless a contrary intention appears from the contract. The terms
of the Act have given two illustrations to this section. The first illustration is in respect of a contract to deliver
goods to a party on a certain day on payment of a fixed price. It has been explained in the illustration that the
representatives of a contractor are bound to deliver the goods upon payment. The second illustration relates
to the promise to paint a picture which from the very contract is predicative of the personal skill and abilities
of the contractor. In the event of the death of the painter, it is obvious that the legal representatives of the
painter cannot be required to perform the completion of the work which the deceased painter had promised
to do.
2. The terms of the contract in question (which is for construction of buildings with connected services)
have to be examined in the light of the above two illustrations read with section 40 of the Indian Contract Act
which says that it appears from the nature of the case that it was the intention of the parties to any contract
that any promise contained in it should be performed by the promisor himself such promise must be
performed by the promisor. In other cases, the promisor or his representative may employ a competent
person to perform it.
3. The term "Contractor" has been defined in Condition 1 (e) of IAFW-2249 which specifically includes
the legal representative of the contractor.
4. The contract in question is a building construction contract and the execution of the work does not
involve any specialised equipment or training which could not ordinarilybe expected of an average building
contractor. The work does not involve special skill as in the case of murals or paintings. Thus it can be said
that the builder's executors would be bound to perform the contract or complete the work because they have
only to procure workmen of ordinary competence and, as such, the legal representatives of the deceased
contractor would be liable to perform the contract.
5. In view of the above, the answer to question (A) is that it will not be in order to terminate the
contract in accordance with Condition 55 of IAFW-2249.
6. With regard to (B), the following procedure may be adopted : !I
(a) Inquiries may be made from the sons or daughters as known as to whether their father has left any
widow or other legal representative. (The competitors of the deceased contractor in the field may
I
provide a good source of information on this issue). If any one claims to be the legal i"
representatives, he should be asked to obtain a succession certificate from the court. I
No payment should be made to any creditor till he brings a court attachment order. '~
I
If one of the sons claims to speak on behalf of all the legal representatives, he should be questioned as
to the authority. Such a legal representative must hold a power of attorney on behalf of the other legal
representatives on whose behalf he intends to negotiate .financial transactions. I
(b) Alternatively, in order to ascertain the correct legal representatives of the deceased contractor, an
advertisement on the following lines may be inserted in the papers :
"Whereas Shri ............................. s/o ................................. residing at .................................... .

who was engaged as a contractor for carrying out certain work of the Military Engineer Services by
the President of India is reported to have died on ..................................... .
And whereas the Department is aware only of existence of the following legal representatives of
the deceased :
1. ············································
2 ............................................ .
3 ............................................ .
And whereas the Department is interested in knowing the names of all the legal representatives of the
deceased with a view to decide the further course of action relating to the aforementioned contracts, NOTICE
is hereby given to all persons claiming to be the legal representatives of the deceased contractor that they
should indicate their names and addresses to ........ by .... "
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382 PART-Ill : POST CONTRACT STAGE-APPENDICES
10 APPENDIX ~~;'JL
Copy of MOD Letter PCIF No. 98/46/Q/CTE/1312/D (W-11) dated 08 April85
CHARTER FOR ADDmONAL DIRECTORATE GENERAL OF
TECHNICAL EXAMINATION REVISION REGARDING
Kindly refer to the revised charter for the Technical Examination Branch (now redesignated as
Additional Directorate General Technical Examination) issued under Government of India, Ministry of
Defence Letter No. 9 (2)/58/PC 79/0SD (Works) /11105/D (W-II) dated the 24th November, 1965. As a
result of recommendation No. 58 of the Estimates Committee (1981-82) of the 7th Lok Sabha and experience
gained from the working of this charter during the last few years, it has been found necessary to enlarge the
scope of the charter and to amend it so as to define clearly the duties and responsibilities of the Additional
Directorate General Technical Examination with regard to MES works and contracts.
2. The President has given the sanction to the revised charter of the Additional Directorate General
Technical Examination as shown in Appendix 'N. to this letter. This will take immediate effect.
3. This issues with the concurrence of the M;nistry of Defence (Finance) vide their U.O. No. 452/WI of
1985.
t!i,ii~~~!~;lti::l:{iii/f)~~~!i-J--i:liRJ:iJi<TED 08 APRIL 85
CHARTER FOR THE TECHNICAL EXAMINATION BRANCH

General
1. The Technical Examination Branch under the Additional Director General of Technical Examination
(Defence) at Army HQ is responsible for :-
(a) Site examination of works after completion as also during their progress;
(b) Checking a percentage of concluded contracts and amendment thereto;
(c) Examination of percentage of bills after payment;
(d) Checking a percentage of supply orders for stores procured for works and maintenance services
other than those through DGS&D sources.
Site Examination of Works
2. Works Carried out by Contractors
The Add! Dte Gen TE/STEs (Defence) will site examine some of the works during their progress as also
after completion, but preferably before the expiry of Defects Liability Period to see that the works have been
executed in accordance with the terms of contract and the quantity and quality of various classes of works set
forth in the agreement on which payment is claimed, do in fact represent the quantity and quality of works
actually executed. They will also watch whether wide deviations from agreements resulting in large undue
benefit to the contractors have been ordered. They will further see whether time of completion of works is in
accordance with terms of contract and extensions of time, if granted, have proper justification.
Contracts
3. Technical Examination Branch will check a percentage of concluded contracts and amendments
thereto with the object of detecting any ambiguity in description of any item or specification which is likely
to lead to extra claims from contractors. This check should, if possible, be exercised as soon as possible after
receipt of contract in CDA's office so that any remedial action necessary can be taken in time. The Technical
Examination Branch will also scrutinise contracts and amendments to see if excessive rates have been
allowed.
PART-III : POST CONTRACT STAGE-APPENDICES 383
Final Bills
4. Technical Examination Branch will examine a percentage of bills after payment, Check of final bills
·will be completed generally within 3 months -:f;fueir receipt by the Technical Examination Branch so that
7
objections raised may be dealt with by t~"~taff who carried out the work This check will be from bills,
measurement books, deviations and"oclf~r doq.mrents. If necessary, the Technical Examination Branch staff
may also visit site of work for an prr:the-spol?"ch~ck
5. Supply Orders For--Stores : the Technical Examination Branch will check a percentage of supply
orders for stores procured for works and maintenance services other than those through DGS&D sources to
see whether there is any ambiguity in the description which may lead to supply of substandard stores and to
see if excessive rates have been allowed.
Method of Working
6. (a) The TeChnical Examination Branch will work in close liaison with Controllers of Defence Accounts.
(b) The Add!. DG TE (Defence) will bring to notice of E-in-C serious irregularities observed during
technical examination of works and similarly STEs (Defence) at Commands will bring such irregularities to
the notice of Chief Engineers.
(c) The Branch will be supplied with full information and its visiting Examiners afforded every
assistance by complying with their demands for pertinent documents and any other information which they
may require.
(d) The Addl. DG TE/STEs (Defence) will forward draft para of their report to the concerned CWE with
copy to the GE in respect of observations accepted by theMES. The CsWE will forward their comments to the
Add!. DG TE. The Add!. DG TE will modify the draft paras to incorporate the comments/views of the CWE as
may be warranted before inclusion of such paras in his report, submitted to the QMG. Copies of the report
will be sent toE-in-C, CGDA, DADs and Ministries of Defence and Finance (Defence).
(e) Observations as a result of examination of works/contracts/ final bills/supply orders will be
forwarded by STEs (Defence) to the MES. It will be the joint responsibility of the MES and the Technical
El(amination Branch to progress and finalise the observations expeditiously. MES will take follow-up actions
including recovery arising out of the observations settled.
(f) In case of disagreements at lower levels, the STEs (Defence) will take up the cases upto the level of
CE. If disagreement persists, the Add!. DG TE (Defence) will take up such cases with the E-in-C. Decision of
the E-in-C, will be accepted by all concerned.
Notes : (i) The operations of the Technical Examination Branch are in the nature of test check only and do not reduce the
responsibility of officers of the MES.
(ii) The functions of this Branch do not include any enquiry into the suitability of designs, specifications or conditions of
contract. However, AddL DG TE/STEs (Defence) will give suggestions to MES for improvement in planning, designing and
specifications of works for ensuring speedier and more economic execution of works. Tnese will be given by Addl. DG TE
(Defence) to E-in-C and the STEs (Defence) to Chief Engineers. MES will ana(yse the suggestions and take suitable further
action where necessary.
(iii) This Branch will not deal with the contractors either in person or through correspondence. No reference should be made
to the Addl. DG TE's organisation by the MES in their correspondence with the contractors or in arbitration cases.
384 PART-ill : POST CONTRACT STAGE-APPENDICES
"' APPEHD,I~,~)c~ti;
COMMON DEFECTS NOTICED DURING INSPECTION OF WORK BY TECHNICAL EXAMINERS
INCLUDING ERRORS IN RECORDING MEASUREMENTS
A-1. (a) Standard of supervision and acceptance criteria requires tuning up; or,
(b) Specifications laid down in tender/contract documents call for examinations with a view to suitably
modifying these to permit acceptance of different workmanship/material as per local practice, where
acceptable.
'B'-1. Excavation & Earthwork:
(a) Earthwork in filling in finished measurements not reduced to solid measure in terms of SSR
provisions.
(b) Earth filling in floors and in trenches over pipes not done by spreading/ramming/watering in 20
em. layers as specified.
2. Concrete
(a) Sand used contained silt and clay in excess of the specified limit.
(b) External angles of concrete beams, lintels, cills, etc. not rounded as specified.
(c) Concrete cills for windows did not project beyond the faces of walls as shown on drawings.
(d) Throating to PCC Cill was not provided while casting the concrete.
(e) Top surfaces of concrete chaijas were not weathered.
(f) Throating/Drip course at edges was not provided.
3. Brick Work and Stone Masonry
(a) No deduction made from brickwork and stone masonry for the volume occupied by PCC bed
blocks exceeding 0.1. sq.m.
(b) Face beds and joints of quoins and jamb stones masonry not squared back to the required depth as
specified. Exposed edges at beds and joints left rough and uneven.
(c) Requisite number of bond stones-not provided in stone masonry walls as specified in SSR.
(d) Curved brickwork with radius not exceeding 6 metres was built in English bond instead of header
bond with bricks out to required radius.
(e) Jambs of doors and windows not in plumb.
(f) Roofing sheets not bedded solidly on walls.
(g) Thickness of joints in brick/stone masonry more than specified.
(h) Hammer dressing to face to stone work not done.
(j) The actual sizes of bricks were not as per contract.
(k) Sub class 'B' bricks used and accepted against sub class 'Pl. bricks specified in the contract.
4. Wood Work and Joinery
(a) Exposed edges of wooden shelves not rounded although specified.
(b) Surfaces of wood work in contact with concrete/masonry not tarred.
(c) Eaves boards not fixed properly.
(d) Timber not sand papered as specified.
(e) Framed joints not pinned.
(f) Legs of charpoys under sized.
PART-lll : POST CONTRACT STAGE-APPENDICES 385
(g) Formwork of RCC slabs/beams, etc, not wrought, with the result that the surfaces of concrete cast
were rough.
(h) Joins of joinery were treated with white lead.
(i) Top and bottom edges of shutters of joinery not planed.
(j) Backs, bottoms and all inside surfaces including shelves of almirahs and dressing chests not sand
papered to smooth finish though specified.
(k) Fillets for fixing louvers in ventilat?rs fixed with nails instead of screws as specified.
(1) Surface of cover fillets in contact with AC sheets in ceiling not wrought and edges of cover fillets
not chamfered.
(m) Styles in panelled and glazed joinery found to be of lesser width than specified.
(n) Thickness of shutters less than specified.
(o) Lap }oints provided between of battened doors in lieu of tongued and grooved joints specified.
(p) Surface of timer door/window frames coming in contact with brick/ stone masonry not wrought.
(q) Quality of timber used in various items of work as well as joinery was far from satisfactory and the
timber was heavily warped and cracked.
(r) Factory made shutters provided were not strictly as per lSI requirement as specified and differed in
the following aspects :-
(i) Two tenons in lock & bottom rails were not provided.
(ii) Glue not applied at joints.
(iii) Chemical treatment to timber not properly given.
5. Steel and Iron Work
Single seal manhole covers provided instead of double seal.
6. Roofing and Ceiling
(a) AC sheets in ceiling fixed with nails instead of screws as specified.
(b) Holderbats/ clamps not provided for some of the AC vent pipes.
(c) Cranked hook bolts used for fixing sheets were undersized.
(d) 1.00 to 1.25 mm thick GI washers used with hook/cranked bolts for axing AC sheet roofing instead
of 1. 6mm thick Gl washers specified.
(e) Steel tubular poles were manufactured out of steel with tensile strength of 42 kgs/sq. mm as
against the strength of 55 kg!sq mm specified.
(f) GI and bitumen washers of proper diameter and thickness for AC sheet works were not provided.
7. Flooring
(a) Measurements of concrete floor recorded inclusive of the width of expansion joints instead of
measuring net.
(b) Dressing top edges and sides up to half the depth of stone slab in flooring not executed as
specified.
8. Plastering and Pointing
(a) Joints of stone work not raked out before plastering.
(b) External angles of plaster not rounded to the radius specified.
(c) Pargetting internal faces of chimneys with mud plaster not done as specified. I
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386 PART-III : POST CONTRACT STAGE-APPENDICES
(d) Keyed pointing to Vertical joints not finished properly.

(e) Thickness of finishing coat of lime putty and sand applied over backing coat was less than
specified.
(f) Thickness of setting/finishing coat of skirting/dado in CM (1:1) was found to be l.S.mm against
3mm thick as specified.
(g) 12 mm radius coving provided at the junction of skirting!dados and floors, against 25 mm radius
coving specified.
9. Iron Mongery
(a) Barra! bolts provided were shorter in length.
(b) Bow handles were of smaller size.
(c) Shoots of aldrop bolts provided were lesser in diameter than specified.
{d) Mortice plates/metal sockets were not provided where Shoots of aldrop bolts entered wood/brick
work.
(e) Tower bolts with 10 mm shoots were provided against 12 mm diameter specified.
10. Glazing and Painting
(a) Hidden surfaces of MS gusset plates and straps not painted.
(b) Glazing beads not screwed though specified.
(c) Top and bottom edges of joinery not painted.
(d) Surfaces of steel members not properly prepared by scraping, wire brushing etc. before painting.
(e) Surface of timber cover fillets in contact with AC sheets in ceiling not treated with a priming coat
of paint though so specified.
(f) 7/32" thick sheet glass provided instead of 6 mm thick plate glass.
(g) Flushing cisterns and CI brackets not painted.
(h) Ends of wooden purlins not treated with creosote oil as specified.
11. Water Suroply, Plumbing, Drains and Sanitary Fittings
(a) Quantity of lead used in joining CI Pipes was less than specified.
(b) GI water tubing provided was under-weight.
Gl soil pipes were under weight/not according to IS.
Proper wiped soldered joints to lead pipe connections of wash hand basins not provided.
Shower roses not provided with swivaling device, where specified.
Quantity of solder used in wiped soldered joints was Jess. '
Blank. II
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CI soiVvent pipes jointed with cement instead of run lead joints specified. I
~
Flush pipes not jointed to nozzle of WC pans with India rubber cones. ~
Nahani traps were of smaller size than specified. .I
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Mosquito proof device was not provided to water waste preventer.
15 mm dia lead supply pipe was underweight. !
Telescopic flush pipes provided were smaller in diameter.
Glazed sinks were not provided with plug and chain though specified.
:_ ____ _:__c ___ ---

(o) CI PIPES as per BS were extensively used in the works against lSI specified pipes. If both
specifications are acceptable, there shquld be no reason for not making a provision in the contract
accordingly.
(p) Bib tap and stop valves were accepted with cast brass components although in accordance with the
IS the crutch handle, spindle and washer plate should be of extruded/ rolled brass.
12. Road Work
(a) Size of soling stones provided at site was not according to specifications.
(b) Stone metal for WBM did not conform to the requirements of abrasion value, flakiness index and
grading as described in para 20A.3 .1 SSR Part I.
13. Electrical Work
(a) Conduit boxes were of ordinary cast Iron and not malleable cast iron as specified.
(b)Spacing of saddles for surface conduit wiring was more than 60 em and no saddles were provided
near fittings as specified.
(c) Ceiling rose was fixed approximately 90 em away from the point where fan was fixed. This should
have been 8 to 15 em away from the point.
(d) The threading aluminum electrical fittings were off and they become loose. These invite adverse
criticism from users. This aspect should be carefully examined.
14. Miscellaneous
(a) Quantity of coir incorporated in charpoys was less than that specified.
(b) Although for some fittings/materials only lSI certified ones were specified in the contract,
fittings/material without lSI marking is permitted in the work.
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388 PART-Ill , 'OST CONTRACT STAGE-APPEND1 llS
========================~
,. APPENDIX2~;1
Copy of Jt. DG (D & V), E-in-C's Branch letter No. 78650/ .o-...::L;;'S;G/iiA D dated
12-6-06. \
INTENSIVE EXAMINATION OF MES WORKS BY eve
(CTE'S ORGANISATION)
1. Chief Technical Examination's (CTE's) Organisation of Central Vigilance Commission (evC) has
decided to carry out independent "Intensive Examination of Works" executed by MES, valued over 10 crores.
2. Consequent upon the inspection visit of CTE to MES work site, the inspection report alongwith the
observations shall be forwarded by CVC to E-in-C's branch. As per the instructions of eve, the reply to all the
queries and action thereon, are to be submitted to eve in a time bound manner through MOD (D/Vigiiance)
within 60 days of issue of inspection report by eve.
3. Henceforth to ensure timely submission of "action taken report" to evc;MOD following
procedure shall be followed :
(a) All the cort~pondence with MOD/D(Vig) and eve on subject matter shall be made though Jt DG
(D&V)/ElD of this HQ.
(b) The inspection report received from CTEs Organisation shall be forwarded to DG\111, Sectt. of this
HQ, with a copy to respective CE Command and CE Zone, for time bound action on the
rectification to the observations by CE Zone.
(c) DGW Dte is proposed to be the "nodal Section" coordinating with CEs Command/CEs Zone for
timely action in this regard. CE Command shall ensure submission of the action taken report to
DGW Sectt. within 03 weeks of forwarding the inspection report from this HQ, by
hand/through a Spl courier.
The action taken report received from CE Conunand shall be examined by DGW Dte and
forwarded alongwith the recommendations of DGW to ElD sec within one week's time.
JT DG (D&V) shall submit the final report to MOD, after obtaining the approval of E-in-C, within one
week's time.
Any disciplinary action (if required) shall be taken by ElD Sec of this HQ, in consultation with
MOD/L"Yig) and eve.
I •
MEASURES TO REDUCE ARBITRATION CASES

3.1. Main causes of disputes leading to arbitration are :-
(a) Incorrect ground data :
(b) Contracts containing faulty and ambiguous provisions;
(c) Faulty administration of contracts;
(d) Deviations;
(e) Suspension of Works;
(f) Changes in Siting;
(g) Hindrance due to other contractors working on the site;
(h) Users not handing over buildings on dates agreed;
(i) Contractor being of poor means;
U) Default by contractor;
(k) Unreasonable attitude adopted by contractor;
(I) Overpayments;
(m) Levy of compensation for delay;
(n) Delays in payment of bills;
(o) Observations arising out of Technical Examination of works and final bills.
3.2. Following measures are outlined to obviate/reduce arbitrations :
(a) Incorrect Ground Data : Correct ground data is collected initially 11nd more time is devoted to
proper planing. It should be ensured th11t the specifications and conditions incorpomted in the tenders are
realistic. For this purpose it is necessary to collect detailed basic inform<~tion pertaining to e11ch site before
going out to tender. Guidelines for information to be collected before going out to tender with regard to
ground data, site factors and <!V<!ihbility of materials are det11iled in Appendix 5.1. These requirements
should be strictly complied with in framing tender documents.
(b) Contracts Containing Faulty and Ambiguous Provision:
(i) While drafting p11rticular specifications care should be taken to ensure th11t all the general
provisions applicable to the contract are properly and unambiguously worded.
(ii) Remember, no ambiguity evident, on the face of it can afterwards be filled up. The agreement
must, speak for itself. Follow two principles :
(a) Omit nothing material and avoid repetition.
(b) Wh11tever you include, express it clearly so as to be beyond the reach of perversion or/-
duplic<!te me11ning.
It may, however, occur that even in the absence of any verbal ambiguity, there is a bonmde
mistake on one side or the other as to the leg11l import of the words used or even as to the very
existence of a binding agreement at all. It cannot be too emphatically expressed on all officers that
mistakes of this kind by no means suffice necessarily to invalidate a contr11ct. The mistake should
be rectified immediately when it comes to the notice by exchange of proper letters between the
parties to the agreement.
(iii) Prevention is alw11ys better than cure. It is obviously wise in setting the terms of the contract to
leave no stone untumed in order to ensure that the opposite party does really understand
390 PART-III : POST CONTRACT STAG.... 'IPPENDICE~
distinctly from the outset the legal liabilities to which the words of the contract con"........n.
Clearance and precision of language are of far higher consequence than elegance of diction. It is
necessary to use the same word as often as the same sense is intended than to change the style and
express the same in varying terms. You will do well to remember t.he general rule that no
agreement should be entered into unless it is as certain as human affairs can well be, that its terms
are or ought to be understood by the other party in the same sense in which you understand these.
Check list/guidelines for drafting specifications is given at Appendix 9.4 of these Manual. These must
be kept in view by all concerned while drafting specifications.
{c) Faulty Administration of Contracts. Attention is drawn to Sections 16 to 21 of this Manual
dealing with the various aspects of the subject. These must be strictly followed.
(d) Deviations. Comprehensive instructions on the subject are detailed in Section 19 of this Manual.
(e) Suspension of Works. It should be remembered that suspension of work under Condition 9 of
IAFW-2249 is not to be ordered for reasons given in Condition 11 ibid nor for any temporary stoppages due
to inclement weather e.g. temporary stoppage of concreting in frosty weather.
(f) Changes in Siting. Occasions for changes in siting should not arise if buildings are laid out and
checked on the ground at the 'Siting Board' stage and correct siting plan is prepared and approved by all '
members of the Board. Availability of land and hindrances on the site should be considered at the
appropriate stage in planning of works alongwith collection and study of basic information about sites as laid
down in Appendix 5.1 to this Manual.
(g) Hindrance due to other contractors working on site. Such problems can be eliminated by
GEs by tactfully and intelligently co-ordinating the works of various agencies/ contractors and thus 1
smoothening the execution of work.

(h) Users not handing over buildings. Phased programme for handing over of buildings should
be pre-planned with the users and their agreement obtained in writing. In case of users disagreeing with the
III
(
programme later on, the r>:atter should be reported to their Administrative Head.
(i) Contractors of poor means. Choice and selection of contractors should be strictly governed by
the instructions contained in Part I of this Manual.
(j) & (k} Default by Contractors and Unreasonable Attitude adopted by them.
Acquiescence to contractor's default is absolutely fatal. Immediate action should be taken as per guidelines
laid down hereunder :
(i) It is pertinent to point out the great importance of not losing a moment in calling a contractor to
account when he is seen to be deviating from his contractual obligations. Acquiescence or delayed
action in any violation of the terms of the contract by the contractor is absolutely fatal. He who
remains silent seems to consent. This maxim is sound sense and its scope is realised by contractors
who make full use of it when an opportunity is offered to them. It is therefore, essential that
whatever concession of any kind is asked for or is made, it should be categorically denied or
limited in clear written terms to its true extent and be clearly specified as without prejudice to the
right of the Government to enforce the other terms of the contract. Moreover, the contractor
should be made to understand clearly that, unless the concession is accepted by him on those
conditions, it should be deemed to be withdrawn altogether. Any concessions granted with price
reduction should be clearly so specified and express consent of the contractor obtained thereto.
(ii) It is necessary for officers to know what to do in the event of a contractor abandoning the work or
committing any other breach of the contract. The first principle to bear in mind is that when a
contract has been broken by one party, it is not necessarily an end. The breach entitles the other
party to put an end to contract but he is not obliged to do so (and in the case of any particular kind
PART-Ill : POST CONTRACT STAGE-APPENDICES 391
of contract the law of 'specific relief' allows him to sue the defaulter for a decree compelling him to
perform the contract) and, therefore, he can either take this course i.e. he can either put an end to
a contract or else signify by his words or conduct, acquiescence in its continuance (Section 39 of
the Contract Act refers) so far as the remaining part is concerned or, agree to the revised terms if
considered necessary.
{l) OVerpayments. Instructions contained in Section 18 shall be strictly followed to avoid cases of
over payment.
(m) Levy of Compensation for delay. This includes instructions to examine cases to waive or
reduce compensations under para 494 of RMES (1968) as amended. It must be ensured that period allowed
for completion is realistic. The factors which should be borne in mind while fixing a realistic period of
completion are given in Appendix 5.3. Sufficient thought must be given to draw out network and time
Schedule where tenders are based on CPM.
(n) Delays in Payment of Bills. Speedy finalisation of bills results in reduction of disputes. In this
connection provisions contained in Section 20 of this Manual should be strictly observed.
(o) Observation arising out of technical examination of works and final bills.
Instructions outlining the procedure dealing with such has been explained herein before; compliance of these
instructions is vital in eliminating disputes arising out of ADGTEs/STEs/TEs observations and these should, ·
therefore, be strictly observed.
3.3. Proper use should also be made of the power given to CEs by the Government vide para 495 of
RMES (1968) to settle contractor's claims not exceeding Rs. 10,000/- on the basis of equity with the
concurrence of the PCDNCDA. It has, however, been observed that hardly any cases have been taken up with
the PCDNCDA in the past on the basis of this provision, as brought out by the CGDA. Chief Engineers are,
therefore, again advised to exercise their powers with a view to settling disputes in equity.
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392 PART-m : POST CONTRACT STAGE-APPENDICES
PARTICULARS FOR APPOINTMENT OF ARBITRATOR

1. Name of the work :
2. (a) Contract No. :
(b) Amount of CA:
(c) Contract accepted by : CE ........... Zone
(d) Contract Administered by : CE ........... Zone
(e) Date of commencement as Per
Work Order No. 1 :
(f) Date of completion as per Work Order No. 1
(g) Certified date of completion :
3. Name of contractor and his·present
address and Index No. :
4. Appointing authority mentioned in CA :
5. Total value of claims
(a) Contractor from MES : Rs
(b) MES from Contractor: Rs
6. Final Bill
(a) Whether final bill sighed by th.e
contractor under protest and date
of signing:
(b) Whether payment received by the
contractor under protest and date
of receipt. :
7. Confirm that the person requesting for appointment of arbitrator is authorized to bind the firm to
arbitration agreement i.e. :-
(a) In case of sole proprietorship firm, the reque&t for appointment of arbitrator has been signed by
the proprietor.
(b) In case of partnership firm, the request has been signed by a partner holding power of attorney
empowering him to bind other partners to the arbitration agreement.
(c) In case of limited concern the request for appointment of arbitrator has been signed by persons
properly authorized by Memorandum and Articles of Association of the limited concern.
8. Recommendation of CE : :,
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(Signature of Accepting Officer) J
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PART-In : POST CONTRACT STAGE-APPENDICES 393
LETTER BY ACCEPTING OFFICERS WHERE REFERENCE

TO ARBITRATION IS NOT CONCURRED
REGISTERED ACK DUE

Office of the ....................................... .
Dated ............... .
No .......... ./E8
To,
Shri/S' Shti ............................................................. .
CONTRACT AGREEMENT No .............. FOR............ .
Dear Sir (s)

1. Reference your letter No ................ Date ...................... .
2. The Final Bill against the Contract quoted above was signed by you with a clear "No Further Claim"
Certificate on ............ and payment of the same has been received by you on .............. without any protest.
Therefore the accord & satisfaction has been fulfilled as per Section 63 of the Indian Contract Act.
3. As per Condition 65 of IAFW-2249-General Conditions of contracts forming part of the Contract, no
further claims shall be made by the contractor after submission of the Final Bill and these shall be deemed to
have been waived and extinguished.
4. In view of the foregoing your claim is/claims are not entertainable and is/are totally denied. Please
note that in case you take any further action in the matter, you would be doing so at your risk and cost.
Yours faithfully,
CE/CWE/GE
Copy to:
(Appointing Authority)-In view of the position brought out in paras 2 & 3 above, reference to
arbitration is not concurred.
394 PART-Ill: POST CONTRACT STAGE-APPENDICES
'" APPENDIX 30;fi

STATEMENT OF CASE SEEKING ADVICE OF LA(DEF)/MOL BR SECTT.
1. CA No. & Name of work
2. Name of contractor
3. Amount of contract
4. Date of appointment of arbitrator
5. Name of arbitrator
6. Date of publication of award
7. Details of amount claimed and
awarded (see Annexure)
8. Interest if any; awarded by the arbitrator
and period of its payment specified
9. Detailed comments on each claim which will include :
(a) Specific covenants against which the
claims is allowed. Reference to condition
of contract and pleadings in Defence
submitted to arbitrator will be highlighted.
(b) Specific recommendation of the Chief
Engineer regarding implementation or to
contest the award together with reasons
thereof citing reference to specific Section
of Arbitration Act.
~-~~Wi'~/~ifl:;J:A~PENOIX 30.1
DETAILS OF AMOUNT CLAIMED & AWARDED
SI. Brief. •• · · ~~scri~ti~1t of

· No: . ' Clail'l.i .
(A) Contractors Claims
Toral =
(B) Government Claims
Total=
SD/
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" APPENDD(36.2
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MEMORANDUM OF AWARD
1. Name of work
2. Contract No. and year
3. Name of contractor
4. Amount of contract
5. Accepting Officer
6. Brief summary of dispute(s) and details of claims (see Annexure I hereto).
and offer by Contractor/Govt. and amounts
awarded.
7. Arbitrator appointed by .. ............................. vide letter
No ........... dated ..................... .
8. Name of Arbitrator
9. Date of entering on the reference by the Arbitrator and extension
of time (if any) granted by court.
10. Arbitration Court held on * ...................at ..................... ..
11. Whether Govt. case defended by MES Officers or Lawyer **(a) Lawyer.......................... .
(b) MES Officer..................... ..
12. Whether Contractor's case conducted by the Contractor
himself or through a lawyer.
13. Award Published on .......... .
14. Amount awarded in favour of c. Rs .............. ..
(C-Contractor; G-Govt.) G Rs .............. ..
15. co Recommendation with regard to the implementation or
otherwise of the award.
16. @ Decision with regard to the implementation or otherwise of
the award.
(a) It has been decided that the award should be implemented
for the following reasons :
% ..................................................... .
Or
(b) It is proposed to contest the award in the Coun or request
Court to remit the award to arbitrator for the following
reasons:
o/oo/o ................................................. .
£ CWE/CE Zone
Signature
Copy to:
££ CDA. ............................................................................. .
Your comments, if any, may please be forwarded not later
than ................................................................................... .
Not to be reproduced on the memorandum of award
396 PART-ID : POST CONTRACT STAGE-APPENDICES
* If two or three hearings held, state accordingly.

** Give name with designation. State 'Nil' against (a) if no lawyer is engaged.
00 To be completed by GE when he forwards his recommendation to CWE in case of contracts
concluded by him and by CWE when he forwards his recommendation to CE in case of contracts
concluded by CE.
@ To be completed by CWE in case of contracts concluded by him or by GE/AGE (lndep), and by CE
(Zone) in case of contracts concluded by him.
o/o Here add remarks on the following lines:-
(i) The award is in favour of Govt.
(ii) The award, as a whole, is acceptable to Govt. and there are no valid grounds to contest it.
(iii) Though the award is not fully to the liking of Govt, there are no valid grounds to contest the
award.
o/oo/o Here state reasons on the following lines:-
(i) As per legal advice received, there is an error apparent on the face of the award. Copy of the
legal opinion is enclosed as Annexure II.
(ii) As per legal advice received, the arbitrator has exceeded his jurisdiction and there are good
grounds to challenge its validity. Copy of the legal opinion is enclosed as Annexure II.
(iii) As per legal advice received, there is an obvious error/clerical error and it is proposed to
request the Court to remit the award to the arbitrator for correcting it. Copy of the legal
opinion is enclosed as Annexure II.
£ To be signed by the CWE/CE (Zone) as applicable.
££ Copy not to be sent to CDA in case of contracts concluded by GE/AGE (Indep).
Summary of Dispute (s)

CA No./Name of Work:
Name of Contractor :
Rs. Rs. Rs.
Note : The information to be furnished in Annexure I should be shown separately and clearly both with regard to
contractor's claims as well as Govt. claims under two separate headings as below :
(a) Government claims.
(b) Contractor's claims.
PART-In : POST CONTRACT STAGE-APPENDICES 397
FORMAT OF LETTER TO CWE FOR TAKING

DECISION WITH REGARD TO IMPLEMENTATION OF ARBITRATION AWARD
*Office of GE ................................ .
*Office of AGE (Indep) ................. .
To,
CWE ....................... .
ARBITRATION ON DliSPUTES PERTAINING TO CA NO GE* ................. FOR.............AGE

{INDEP)* .~ ....... FOR............. CONTRACTOR....................... ~··············· .. ································
The award of the arbitrator in respect of the disputes pertaining to the above contract has been received
and a copy of it is attached. A draft memorandum of the award giving necessary particulars and my
recommendation is enclosed to enable you to decide with regard to the implementation of the award.
*GE. ............................... .
*AGE (Indep) ................. .
Copy to:-
CDA................................................. :
(without enclosure) but together with a copy of the award. Your comments, if any, may please be forwarded
to CWE ............................. within a week.
*(Delete whichever not applicable)
., APPEMDI~ 3(1.:4.
FORM OF LETTER TO CONTRACTOR WHEN HE INCLUDES OTHER CLAIMS OVER AND ABOVE
USTED WHILE SIGNING THE FINAL Bill
REGISTERED ACK DUE

Office of the ...................................... .
No ...... ., ..... ./ES Dated............. .

To,
Shri/S' Shri.. ................................................................ .
CONTRACT AGREEMENT No ................ FOR.............. .
Dear Sir (s)
1. Reference your letter No ............. Dated ................... .
2. The Final Bill against the contract quoted a1ove was signed by you with certain specific claims and
"No Further Claim" certificate on ................... and t.l-te same was paid to you on ........... ./ is under audit.
3. As per Condition 65 of IAFW-2249-General Conditions of Contract forming part of the conttact, no
further claims shall be made by the contractor after submission of the Final Bill and these shall be deemed to
have been waived and extinguished.
4. It is noticed from your letter No ............................. quoted above that you have listed certain claims
over and above those listed while signing the Final Bill, which are not entertainable and are totally denied.
Please note that in case you take any further action in the matter, you would be doing so as at your risk and
cost.
Yours faithfully,
CE/CWE/GE I
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APPEt-4DIX:S()~~'
111
NEW DISPENSATION FOR SETILEMENT OF COMMERCIAL DISPUTES BETWEEN PUBLIC

SECTOR ENTERPRISES INTER- SE AND PUBLIC SECTOR ENTERPRISE(S) AND GOVERNMENT
DEPARTMENT(S) THROUGH PERMANENT MACHINERY OF ARBITRATORS {PMA) IN THE
DEPARTMENT OF PUBUC ENTERPRISES.
L CREATION OF PERMANENT MACHINERY OFARBITRATORslllU.&\·.··. \ .. -. ), .-•·· · ·••- . ; ,;,;';; c.··.
------ - - - - - - - - - . - - -·-------- ---·'·--------~~-=-.c._·~-'--~-__;_--_~-~~L-:::__-_._.'~::.-··-··.,:::..:.:o__·___:__._:~--~--~:c_o;_,"'-·-··-··· - -._ _ _:_:_~:_·c·_
With a view to expedite the settlement of disputes relating to commercial contract(s) between Central
Public Sector Enterprises (CPSEs) per se, and also between CPSEs and Government Departments, the
Government of India created a Permanent Machinery of Arbitrators (PMA) in the Department of Public
Enterprises in 1989. One Legal Adviser-cum-Joint Secretary in the Department of Legal Affairs, nominated by
the Law Secreta.:y to function in the PMA is appointed by the Secretary in -charge of Department of Public
Enterprises as sole Arbitrator in each case.
II. NEED FOR!PB
There had been growing number of litigations with the Courts/ Tribunals relating to commercial
transactions between the Central Public Sector Enterprises (CPSEs) inter se, or CPSEs and Government
Departments. The practice of disposal of these cases was not only expensive due to high fees charged by the
advocates/lawyers for pleading the cases and other expenses incurred in this regard, but also time
consuming. The other prevailing practice of conciliation, arbitration etc. were also ad hoc arrangement and
not delivering the goods upto the expectations. With a view to expedite settlement of disputes and reduce
avoidable expenditure in this regard, a need was felt to institutionalize the prevailing system of arbitration.
Commissions/Committees like Law Commission, Central Vigilance Commission, Committee of Secretaries
etc. had also examined _this aspect and made certain recommendations/suggestions which were carefully
examined in consultation with the Ministry of Law. The Government after due consideration of all aspects,
decided to set up the PMA in the Department of Public Enterprises.
III. ENTITt£MEid',
------~'-~~~
(i) In the event of any dispute or difference relating to the interpretation and application of the
provisions of commercial contract(s) between CPSEs, Banks, Port Trusts etc. inter se, or CPSE and the
Government Department(s) hereto (except a dispute or difference concerning the Railways, Income-tax,
Customs and Excise duties), such dispute or difference shall be referred by either party for arbitration to the
PMA in the Department of Public Enterprises through the Secretary to the Government of India in-charge of
the DPE.
(ii) The mechanism of PMA is primarily meant for Central Government Departments/organizations/
enterprises. Therefore, the disputes between State Government Departments/ organizations will not be
entertained by the PMA. However, if the contract involves a Central Government Department/Organization
with any State Government Department/Organization and both the parties have signed Arbitration Clause in
favour of PMA as per annexure referred to in subsequent paragraph V(i), in such a situation the PMA shall
entertain such dispute(s) for arbitration, if any such reference is received. In case of dispute(s) with a CPSE
which has been privatized due to disinvestment or otherwise, it shall also be entertained by the PIVIA if the
same relates to the contract(s) entered into by the parties before privatization, as merely change of
ownership of aPSE would not debar the company from the obligation of following PMA procedure.
IV. MONETARYJ.IMLif'
___........_._.,_ . ,_.____
There is no monetary limit as such for making reference of disputes to the PMA. However, it would be
advisable if the parties exercise their own discretion in this regard as both the parties are to equally pay an
initial cost of Rs. 20,000 each for making reference of dispute to the PMA which is non-refundable in any
1
~------------------------------··-----------------
case but will be adjusted with final cost to be fixed by the Arbitrator as per the rates stipulated in a
subsequent paragraph. There shall not be much advantage in referring disputes of a small amount of the
value of less than Rs. 50,000/- to PMA and such disputes may be settled by the parties by mutual
consultation.
V.REFERENC!
-------·-··-·._.·-·.
(i) As far as possible parties should try to resolve as many points of dispute as they could amicably by
mutual consultation and only those points stating the amount involved be referred to the PMA that could not
be settled mutually despite best efforts from both sides. To ensure prompt disposal of disputes(s) by the PMA,
both the PSEs and the Government Departments shall refer the existing dispute(s) to the PMA at the earliest
and not later than two months of arising of dispute. If any arbitrator has already been appointed in any
dispute that should immediately be cancelled. Both the parties will also ensure the inclusion of an Arbitration
Clause (if not already done so) in favour of PMA (as given in Annexure) in all the existing and the future
contracts/supply orders between the parties. PMA shall not entertain the disputes referred to it without the
proper Arbitration Clause.
(ii) After entering upon the reference, the Arbitrator will call for the papers, comments/statements from
the parties and will hear the parties in person as and when he deems necessary. The Arbitrator shall
ordinarily fix the meeting in Delhi unless, for reasons to be recorded in writing, he decides otherwise. No
outside lawyers shall be allowed to appear on behalf of the parties to argue their case before the Arbitrator
but the parties can take the help of their own full time Law officers. (Subject to the aforesaid, the Arbitrator,
and the Law Secretary will determine the procedure as the case may be).
(iii) The Arbitrator will also submit a quarterly report to the Secretary (DPE) on the number of cases
registered, awards published, fee received and general progress of cases.
VLf
(i) The Arbitration cost in respect of a commercial dispute settled through the PMA is required to be
shared equally by the concerned disputing parties. In this connection each of the parties to a dispute will be
required to make an initial deposit of Rs. 20,000/- when a prima-facie case of dispute is established and the
same is approved for referring to the Arbitrator of PMA for settlement. This initial cost will be adjusted in the
final cost of Arbitration. The Arbitrator will work out the final cost of Arbitration based on the amount of
dispute as per the following formula :
(a) Rs. 40,000 or 1% of the disputed amount upto Rs. 50,00,000 whichever is higher, to be equally
shared by the parties.
(b) Rs. 50,000 + 1/2% of the disputed amount of above Rs. 50,00,000 but upto Rs. 5 crore to be
equally shared by the parties.
(c) Rs. 2.5 lakh + 1!4% of the disputed amount beyond Rs. 5 crore to be equally shared by the
parties.
(ii) The Arbitrator in the PMA will intimate the parties the estimated amount of Arbitration fee to be
borne equally by them and paid within a month of intimation to the parties or within such time as may be
allowed by the Arbitrator. All payments should be made to the Government of India through Demand Draft in
favour of D.D.O., Department of Public Enterprises, payable at New Delhi.
(iii) The Arbitrator in the PMA, if he considers appropriate, may allow fee concession upto 1Oo/o of the
total fee worked out based on the laid down formula for the sick and continuously loss making CPSEs subject
to arranging payment within one month of the order of the Arbitrator in the PMA.
(iv) The party(ies), who fail to pay the arbitration fee within the stipulated period, will have to pay an
additional interest on the late fee, which may or may not be waived by the Secretary (OPE). The interest on
late fee will be charged at the rate of 1Oo/o Of the final cost for delay upto one month and 15% for subsequent
delay upto six months. If any of the parties further fails to make payment of the arbitration fee witlrin six
months of the intimation given by the Arbitrator in PMA, the publication of the award may be cancelled and
the initial deposit will be forfeited. It will also be the responsibility of the concerned Administrative
!l
~--
PART-m : POST CONTRACT STAGE-APPENDICES 401

Ministry/Department to ensure the payment of the arbitration fee either by the concerned party or by them
who will arrange the funds and enable the defaulting party to make payment of the arbitration fee without
delay.
(v) In case any of the parties has made full payment of the fee and another has failed despite continuous
follow up and as a result of which publication of award is cancelled, the fee in addition to the initial deposit
may be refunded to the party concerned. However, Government will not pay any interest on such amount.
VII. COMPI;~
In case both the parties decide to settle the dispute mutually before the Award is published, they can be
allowed to do so. In such case, the initial cost (Rs. 20,000 paid as deposit by each of the parties) shall be
forfeited and the case will be finally closed on receipt of details of the settlement arrived at by the parties in
writing. In case the parties do not provide requisite details, the Arbitrator may decide to publish the Award
and in such a situation the parties will be required to pay the arbitration fee worked out by the Arbitrator.
VIII. NATURE(I,:j\w•
The Arbitrator shall make his award within six months after entering upon the reference or after having
been called upon to act by notice in writing from any party to the arbitration agreement or within such
extended time as the parties may allow. The Arbitrator shall make a speaking award. The Award may be
published on plain paper. The Arbitrator may also, if he thinks fit, make an interim award.
IX. EX-PAR'l'i:~W-
The Arbitrator may make his Award ex-parte when a party(ies) fail to furnish the particulars required
from them, and/or do not appear in person in spite of being given two chances to do so. Even in that case,
the parties shall be bound to meet the cost of arbitration equally.
x.AI»P:UI
The Award of the sole Arbitrator under the PMA shall be binding upon the parties to the dispute,
provided, however, any party aggrieved by such award may make a further reference for setting aside or
revision of the award to the Law Secretary; Department of Legal Affairs, Ministry of Law & Justice,
Government of India. Upon such further reference, the Secretary or the Special Secretary/ Additional
Secretary when so authorized by the Law Secretary shall decide the dispute. The decision of the Law
Secretary/Special Secretary/Additional Secretary shall bind the parties finally and conclusively. The
aggrieved party may file an appeal before the Law Secretary within the period as recorded by the Arbitrator
in the Award for implementation. This time limit may be kept in view while filing an appeal before the Law
Secretary. The Law Secretary; after giving an award on the appeal, will return the records of the case to the
PMA. The Arbitrator may also, if thinks fit, make an interim award. However, there shall be no appeal to the
Law Secretary against the interim award and both the parties are to await the final award by the Arbitrator.
XI. CHANGEOFAIUJfl'BitD'
In the event of the sole Arbitrator dying, neglecting or refusing to act or being unable to act for any
reason, it shall be lawful for the Secretary to the Govt. of India in-charge of the OPE, to appoint another
person in place of the outgoing Arbitrator to act as sole Arbitrator. The new Arbitrator so appointed shall as
far as practicable proceed from the stage where it was left by the outgoing arbitrator.
XII.B~GU~~
In commercial transactions sometimes a PSE has to stand Bank guarantee. An incidence occurred in a
dispute where the bank guarantee holder PSE approached the guaranteeing bank for encashment of the bank
guarantee. Such action creates an embarrassing situation to the Government, ·which in its tum has given
counter bank guarantee. This matter was considered in DPE and it was decided than all PSEs should effect
encashment of bank guarantee only as a last resort when efforts to resolve the differences/ dispute fail and
that too, after giving due notice/information to the concerned public sector enterprise. In such situations, all
I
402 PART-m : POST CONTRACT STAGE-APPENDICES
the PSEs should refer the dispute to this Department and cooperate with the Arbitrator of PMA for early
settlement.
XIII. CLEARANCEFitOM CO~'i'~~.~N~Q\Si~
It has to be ensured that no litigation involving such disputes is taken up in a Court or a Tribunal
without the matter having been first examined and given permission/clearance by the High Power
Committee generally known as Committee on Disputes (COD) set up in the Cabinet Secretariat on the
directions of the Supreme Court in Civil Appeals Nos. 2058-59 of 1988 between ONGC and the Collector of
Central Excise, Mumbai. In case, litigation in Court/Tribunal becomes absolutely necessary, the aggrieved
party(ies) will seek the permission of the COD for which the concerned Ministry/Department or the
concerned PSE/Bank/Port Tmst through their administrative Ministry/Department or directly may make a
reference with a self-contained note in the prescribed format to the designated authority in the Cabinet
Secretariat (Under Secretary-Coordination) for placing the same before the aforesaid committee for decision.
2. All the administrative Ministries/Departments concerned with management of Central Public Sector
Enterprises/Banks/Port Tmsts etc. are requested to bring these guidelines to the notice of all concerned
organizations under their administrative control for strict compliance. It is also requested that they may
ensure and monitor the implementation of the award of the Arbitrator by the parties as per his directions.
Presidential directives as per Annexure referred to in paragraph IV(i) above, may be issued to incorporate the
provisions in the Articles of Association or other relevant regulations of concerned organization(s) at the
earliest.
~~.;~p:j_~.;;f"~NQI~ 30.5
Arbitration Clause to be included in all the commercial contracts entered into by the Public
Enterprises/ Government Departments etc.
In exercise of the powers conferred by Article ........... of the Articles of Association of the (name of the
CPSE/Bank/Port Trust etc.) /Section .......... of the ............. Act of setting up of the (name to the
CPSE/Bank/Port Trust etc.), the President of India is pleased to direct that all disputes relating to all
commercial agreements (except income tax, customs, excise duty and also concerning Railways) between
(name of Company/Corporation/ Bank/Port Tmst) and (name of another Public Sector
Undertaking/Go• 2rnment Department/ Bank/Port Trust etc.) shall be referred to the Permanent Machinery
of Arbitrators (PMA) set up in the Department of Public Enterprises. The President is further pleased to direct
that the following Arbitration Clause shall be included in all current and future contracts/ agreements etc.
and that in respect of ongoing contracts they should be suitably amended to include such a clause :
"In the event of any dispute or difference relating to the interpretation and application of the provisions
of the contracts, such dispute or difference shall be referred by either party for Arbitration to the sole
Arbitrator in the Department of Public Enterprises to be nominated by the Secretary to the Government of
India in-charge of the Department of Public Enterprises. The Arbitration and Conciliation Act, 1996 shall not
be applicable to arbitration under this clause. The award of the Arbitrator shall be binding upon the parties to
the dispute, provided, however, any party aggrieved by such award may make a further reference for setting
aside or revision of the award to the Law Secretary Department of Legal Affairs, Ministry of Law & Justice,
Government of India. Upon such reference the dispute shall be decided by the Law Secretary or the Special
Secretary/Additional Secretar;, when so authorized by the Law Secretary, whose decision shall bind the
Parties finally and conclusively. The Parties to the dispute will share equally the cost of arbitration as
intimated by the Arbitrator".
L.
PART-Ill : POST CONTRACT STAGE-APPENDICES 403
APPOINTMENT OF ARBITRATOR
REGISTERED ACK DUE
Telephone:
Integrated HQ of MOD (Army)
Engineer-in-Chief's Branch
Kashmir House
New Delhi-110011
No .................. . Dated ................... .
To,
APPOINTMENT OF ARBITRATOR : CA NO ..........
Dear Sir,
WHEREAS the above mentioned Contract Agreement was entered between the President of India,
represented by Chief Engineer/CWE .................... and M/s .................. .
AND WHEREAS the said contract includes an arbitration agreement vide Condition 70 of IAFW-2249
forming part of the Contract which, interalia, provides that all disputes between the parties of the contract
(other than those for which the decision of the CWE or any other person is by the contract expressed to be
final and binding) shall, after written notice by either party to the contract to the other of them, be referred
to the sole arbitration of a Serving Officer to be appointed by the Engineer-in-Chief; Chief Engineer.
AND WHEREAS certain disputes had arisen, and request had been made to me for appointment of an
arbitrator for adjudication of the disputes.
NOW THEREFORE, by virtue of the aforesaid and provisions contained in condition 70 of IAFW-2249, I
hereby appoint you as sole arbitrator to adjudicate upon the disputes pertaining to the above contract and
request you to enter upon the reference and publish your findings and award in respect of disputes between
the parties. However, as regards claims which are covered under the final and binding powers of CWE or any
other officer mentioned in the contract and those which have been raised by the Contractor after signing the
final bill with some specific claims, as also the claims, for which there is specific prohibition in the contract, I
request you to first decide on the jurisdiction and arbitrability of these claims as per terms & conditions of the
contract and Section 16* of the Arbitration & Conciliation Act 1996 and only thereafter take up these for
adjudication on merit.
Yours faithfully,
Engineer-in-Chief/ Chief Engineer
Copy with enclosures to

BYREGDPOST
1. M/5 ...................................................................................................................
...........................................................................................................................
404 PART-UI : POST CONTRACT STAGE-APPENDICES
2. Chief Engineer........................................... .
................................................... Command
3. Chief Engineer............................................ .
........................................................... Zone.
4. CDA/PCDA ................................................ .
................................................... Command
5. CWE ...........................................................
6. GE ..............................................................
*Section 17 of Arbitration and Conciliation Act in case work is within J & K State.
PART-.ru : POST CONTRACT STAGE-APPENDICES 405
APPOINTMENT OF ARBITRATOR-COURT ORDER

REGISTERED ACK DUE
Telephone:
Engineer-in-Chiefs Branch
Kashmir House
New Delhi-110 011
No ............ . Dated........................ .
To,
APPOINTMENT OF ARBITRATOR : CA No . .....................
Dear Sir,
WHEREAS the above mentioned Contract Agreement was entered into between the President of India,
represented by Chief Engineer.....•................................ and M/s ............ ,............................... .
AND WHEREAS the said contract includes an arbitration agreement vide Condition 70 of IAFW-2249
forming part of the Contract which, interalia, provides that all disputes between the parties to the contract
(other than those for which the decision of the CWE or any other person is by the contract expressed to be
final and binding) shall, after written notice by either party to the contract to the other of them, be referred
to the sole arbitration of a Serving Officer to be appointed by the Engir,eer-in-Chief :
AND WHEREAS M/s ........... and ............. filed applications under section 20 and 41 of the Arbitration
Act in the Hon'ble Court, ......... :
*AND WHEREAS the Hon'ble High Court of .......... in its order dated .......... (copy enclosed) has
ordered that the disputes of both the parties be referred to the arbitrator to be appointed by me/has directed
to appoint the arbitrator;
NOW THEREFORE by virtue of the aforesaid Court order and provisions contained in Condition 70 of
IAFW-2249, I hereby appoint you as sole arbitrator to adjudicate upon the disputes pertaining to the above
contract and request you to enter upon the reference and publish your findings and award in respect of
disputes (as listed in Appendix A to this letter**) so far as these are referrable to arbitration in accordance
with the said agreement and Court order.
Yours faithfully,
Engineer-in-Chief
End:-
Copy of Court order dated ............... (and Appendix A**)
;I
406 PART~DI : POST CONTRACf STAGE-APPENDICES
Copy with enclosures to :-
BY REGISTERED POST
1. M/s .............. Contractor
2. Chief Engineer ........... Command
3. Chief Engineer Zone
4.PCDNCDA
................... Command
3. CWE ..•.......•......
6.GE ................... .
*To be suitably worded as per the contents of Court order.
**Applicable on(Jr when the Court order contains specific list of claims between the parties.
PART-UI : POST CONTRACT 407
No ......... /E8
WITHOUT PREJUDICE
REGISTERED ACK DUE
Office of the ................. .
Dated ........................... .
To,
·············· (Counsel for M/s ............... )
Subject : Alleged Claims on Contract No ...... In the matter of differences between the Union of India
and the Contractor .................. arising out of Contract No ............ .
With reference to the notice dated ...... served by you on the Government on behalf of your client...... of
your intention to initiate legal proceedings in respect of disputes arising out of the above mentioned contract,
your attention is drawn to the arbitration clause in the said contract whereunder all disputes arising between
the parties are referable to arbitration as provided therein. The Government has always been and is still
ready and willing to have the said matter referred to arbitration in accordance with the provision of the said
contract and to do all things necessary for the proper conclusion of such reference.
' that if you still persist in filing a suit, you would be doing so at your risk and cost.
2. Please note
CE/CWE/GE
On behalf of the Union of India
l
408 PART-IV : REPORTS AND RETURNS -APPENDICES
'" APPfiNI:)I~r~~~~~~
UST OF REPORTS AND RETURNS (CONTRACT MANAGEMENT/ES SECTION)
2. (a) Workload returns up to 50 lakhs IIArmexu•:e

shall be circulated by 2oth of
byCE Zones
Workload returns more than
shall be circulated by os"'
2nd month by CE O:munands.
(c) Workload returns in respect of
'SS' class Contractors shall
month circulated by 151h of 2nd month
E~in~C's Branch.
3. of next CWE :
month
4. 31st March GE-Sth of CWE-lOth of Command with copy to E-in-C's P-4

3oth June month (E8&E2), DG MAP, MOD/D
3oth Sep. CE : Zone zoth Sena Bhawan New Delhi,
31 5 t Dec. next month
5. 31st Jan, GE-10th CWE in respect of GE's contracts P-5

3oth April CWE-1oth CE Zone in respect of CWE's
31st July CE-lQth
31st Ol.i:. of next month CE Command in respect of CE's
6. 31St Jan. GE-10th of uptoCWE P-6

3oth April month upto CE Zone
31 5t July upto CE Command
31 5t Oct. E-in-C's Br
7. 31st Jan. eWE-loth of in respect of GE's and CWE's Annexure P-7

31 5tJuly month to CE Zone.
CE-lQth of in respect of CE's contracts
month with copy to E·in·C's
8. 2sth Feb. GE-loth of upto CWE level Annexure P-8

31st May month upto CE Zone level
31st Aug. upto CE Command level
3oth Nov.
I
PART-IV : REPORTS AND RETURNS -APPENDICES 409
9. Quarterly report Quarterly 2sth Feb. CWE-loth of next - Part-1 in respect of GE's and CWE's Annexure P-9
in respect of 2 31St May month contracts to CE Zone.
months old cases, 31st Aug. CE-10th of next Part-11 in respect of CE's contracts
in which 30th Nov. morith directly by CE Zone toE-in-C's Branch.
arbitrators are
yet to be
appointed
10. Quarterly return Quarterly 2sth Feb. CE-10th of next - E-in-C's Br in respect of lA (Defence) Annexure
of 3 months old 31"May month advice and/or MOD decisions on P-10
cases in which lA 31st Aug. implementation/ contesting the
(Defence) and/or 30th Nov. awards.
MOD decisions
are awaited
11. Quarterly return Quarterly 2sth Feb. GE-1oth of next - CWE with copy to CE Zone and CE Annexure
in respect of 31st May month Command P-11
STE's obsn 31st Aug. '
3oth Nov.
12. Quarterly Quarterly 2sth Feb. GE-10th of next - CWE with copy to CE Zone Annexure
progress report 31St May month P-12
in respect of 3JS!Aug.
CWE's and CE's 30th Nov.
Contracts
13. Quarterly report Quarterly 28 1h Feb CEComd/ADG - E-in-C's Br/ Annexure
on progress of 31st May 20th of next month ADGTE P-13
ADGTE serious 31st Aug
cases"'"* & Draft 30 1hNov
Para cases
3.1
Annexure P-1
Quarterly Review of Pending Courts Cases
(Quarter ending .......•........)
Formation:
Annexure P-2
Quarterly Work Load Return
(Quarter ending ................)
Formation:
•
I
I
I
I
410 PART-IV : REPORTS AND RETURNS -APPENDICES
Annexure P-3
Market rates of materials and labour
(Half year ending ................)
Formation
Annexure P-4
Quarterly Return for forecast percentages over SSR for preparation of
AEs to be initiated during the succeeding quarter (Quarter ending .................)
Formation
Notes:
1. Report will be issued by Zonal CEs. However, wherein abnormal variation between same stations of various Zones occurs~ correction will
be issued by CE Command within 15 days.
2. 5% extra to be added for works in restricted areas.
3. 10% extra to be added for works inside factory areas/Ord/Amn depot/Air Force/Navy TechArea;'Remote locations etc.
4. Percentage indicated above are assessed percentage bilsed on market trend and are not exclusively based on ·concluded contracts, excl
freakishly high/low accepted contracts.
5. Difference in cost of stores will be shown separately under respective cols, only for stations wherever applicable.
6. Percentage indicated are for normal specifications including internal services as catered for in Zonal Specifications. Any additional effect
of superior specifications to be taken separately.
7. Percentage are for AEs purpose only and not for acceptance of contracts.
Annexure P-5
Quarterly report of Contracts accepted during the quarter
(Quarter ending ..............)
Formation
I
I
PART-IV : REPORTS AND RETURNS -APPENDICES 411
Annexure P-6
Monitoring delay in payment of final bills
(Quarter ending ..............)
Formation
Annexure P-7
Half Yearly report in respect of Arbitration cases in progress
(Half year ending ................)
Formation
Annexure P-8
Quarterly return of overpayment to Contractors/recovery due from Contractors
(Quarter ending .............)
Annexure P-9
Quarterly report in respect of 2 months old cases, in which arbitrators are yet to be
appointed
(Quarter ending ................)
Formation
Note : In respect of resignation cases~ letter no. and date of resignation letter shall only be indicated under cols 3 to 5.
; .
'
~~~~"~~~~~~~~~~~~~~~~~~~~~~~~---~~- ----------
412 PART.:.JV : REPORTS AND RETURNS -APPENDICES

Annexure P-10
Quarterly return of 3 months old cases in which LA (Defence) and/or MOD decisions on
implementation/contesting of awards are awaited (Quarter ending ............)
Formation
Annexure P-11
Quarterly report in respect of STE's observations
(Quarter ending •••.............•)
Formation
Note : Brief details of observations outstanding for more than 24 months shall be intimated in separate appendix with reasons of
pendency.
Annexure P-12
Quarterly progress report in respect of CWE's and CE's Contracts
(Quarter ending ...............)
Formation
I
Annexure P-13
Quarterly report on progress of ADGTE Serious Cases and Draft Para Cases I
I
(Quarter ending ...............)-
,_ ;__- .-
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Cfilll1<1'1ll \Efff ~ CH~I~li~Cfi
Controller General of Defence Accounts
3(iff(rf i:lfCT{ Us, ~I ~ 0\J q u:f)
Ulan Batar Road, Palam, Delhi Cantt 110010
Ph No. 011-25665579, FAX No. 011-25674806

(Audit-X)
E- Mail : cgdanewdelhi@nic.in
No: 18020/ AT-X/XXVII(PC) Dated :-17.8.2016
To
All Regional PCsDA/CsDA
Sub :- MES Manual on Contracts 2007(Reprint 2012) Chapter onE- Tendering.
--------------XXX - ------------
A copy of E-in-C's Branch letter No. 66546/P-36/91/E8 dated 19th July

2016 addressed to their lower formations with copy endorsed to MOD(Finance)
MOD D(Works-II) and HQrs office has been uploaded on CGDA website for
information and necessary action please.
Jt.CGDA(P&W) has seen.
Account Officer( AT)
Copy to:
IT&S Wing
For uploading on CGDA's website.
Accounts Officer(AT)
-
. ' .' ''• ...~ -~·,····
/
/
/
./ Tele : 23019154 · Dte .ofcontract management . ·;..:
Military Engineer Sef-i.ti.ce
Engineer- in~Chief's Btaoc-:h ·
Kashmir Hous e , Rajaji Marg
New Delhi - 110 011
66546/P -36/ 4J /E8 11 Jul 201-6

.....
List 'A' & 'B' :
~
A DG OF & DRDO ..... .,

"., .
List 'C'
·<.
. ~ ~:
MES MANUAL ON CONTRA CTS:2007 (REPRINT-2012)

CHAPTER ON E ~TENDERING
'
1. Reference further to our letter No. 66546/Manuai/263/ES dated 25 May 2013 .
'
2. Consequent on implementation of e-tend ering in MES , a ':18w Ch apter
SECTION 3A "E-TENDERING IN MES" is enclosed herewith for necessary action .
3. This SECTION shall be deemed ins ert ed after Sl page No. 52 at th e end of
SECTION 3 of M ES MANU A L ON CONTRA CTS 2007 (REPR!NT-2012).
· (Bhagirathi Pani)
Director (Contracts)
ForE-in-C
MoDo <'Norks- 11)

For info pi alongwith a copy of the above Ch apte r
is enclosed
fice of the CGD A , .. ,:;~ ~;.,,, •: :. ~C'> ;·}.

Ulan Batar Road, P~ -::Y;::-·Tf'7f ::_~;:-~;;· c.,~··,:~·
Delhi Cantt. - Ho-o BO. /
:;· ~ ..,. ..
.··, · ·. i;
· I'
-52A-
E -TENDERING IN MES
(SECTION 3A)_
1. GEN ERAL
1.1 E-tende ri ng sha ll be done using the website portal specifically created by NIC for
MES i.e. www.eprocuremes .gov in .
1.2 Structure for e -tendering is as und er :-
Nodal Officer Level 1 ) J
(Jt DG/Di~ (C) of E-in-C's Branch J
~
- Nodal Officer Level 2 ]
CE of CE Zone/CCE
Nodal Officer Level 3

CWE
1.3 All tenders in MES shall be done through e-tendering in Single Stage Two Cover
system except the following:-
(a) Lump sum Tenders for Sensitive Nature Works. The Accepting Officer may
follow the process of two
stage two cover bidding system. The decision of Accepting
Officer so as to consider a work as sensitive in natur.e shall be kept on record.
(b) Lump sum Tender for the Strategic/Secret Nature Works. These works
shall be exempted from e-tendering subject to approval of CE Zone under intimation
to the Next Higher Eng ineering Authority (NHEA). Tendering for such works shall be
done through phys ical tendering. Section 3 of the Manual on Contrcts 2007
(Reprint 201 0) shall be fo llowed
(c) Lump sum Tender for Specialist Works . These works, as being done in 'T'
& 'Q ' bid system earl ier, shal l be tendered in Two Stage Three Cover e-tendering
system.
NO TE- In Two Stage Two C-ever system, there is generally cons iderable time gap between
~ubmission of cover of 1st stage (Techn ical Bid) and submission of cover of 2 nd stage
(Finance Bid). Th is is not conducive for Qor.i;.:dition , since a bidder interested at the time of
su bmission of bid of Stage I may not be interested at the time of submission of bid of Stage
11 and vice versa. Thus prefe rence should always be fo r Single Stage Two Cover system.
2. DIGITAL SI GNATURE CERTIFICATE (OSC)

2.1 Digital Signatu re Certificate (DSC) fore-tendering shali be obtained from any of the
authorized ce rtifying authorities At presen t, the foll owing agencies authorized by Control ler
of Certifying Authorities , GO! , Mi nistry of Corporate Affairs , Govt of India are available fo r
issue of DSC -
.(a) Nation al Informatics Cen tre (NIC) .
(b) Sify.
(c) e-mudra.
(d) N code .
(e) TCS.
If new agencies are authorized by the above Ministry, DSC can be obtained from
th em also .
2.2 DSC shall be of class II, to authorize 'signing' . and 'encipherment'. DSC shall be
required for Accepting Officer, officers/ JEs of contract management section (E8 section )
and Ten der op en ing officers or JE's assigned duty of bid openers. Payment for obtaining
DSC/reval idation of DSC(after its expiry) for Nod al Officer /Departmental user shall be made
out of project contingencies .
..... 52B/
-528-
2.3 DSC shal l normally be valid for two years after which it can be renewed /procured
afresh. However for the officers/individuals , who are not likely to continue in the Depatment
for more than one year, their DSC shall be made with validity only for one year.
2.4 Safe custody of the DSC sha ll be ensured by the individual. Individuals moving on
posting to other formations shall carry their DSC. Nodal officer of the old formation will
immediately remove and delink the individual from their mapping. In case the indi vidual is to
be created as user in the new formation , his DSC shall be mapped on the new formation . In
case the individual is not required to be created as user in the new formation, he will deposit
his DSC in the new formation. The .movement order of the individual while being posted out
shall carry specific mention ~.S to 0hether the individual is carrying DSC or not.
3. INFRASTRUCTURE Necessary infrastructure for e-tendering such as

standalone PC , printer, scanner, high speed internet connection and necessary hardware
shall be ensured by the Accepting Officer in their respective offices . The internet connection
can be broadband or VSAT connection of any Service provider.
4. APPOINTMENT OF NODAL OFFICERS/USERS
4.1 Nodal Officer Level-l wi ll create Nodal Officers Level- II and Nodal Officer Level-l\
will create Nodal Officers Level- Ill . Nodal Officers level -II will also create users for his
office and GE (1). Nodal Officer -Ill will create users for his office as we ll as GEs , AGEs( I)
under the jurisdiction of his formation.
4.2. Nodal Officers shall be res ponsible to create the following users:-
(a) Creator CE 's/CCE 's SE (QS&C)/SSW/EE(QS&C)/SW/AEE(Q

Office S&C)/AE(QS&C)
CWE's/GE(I)'s EE(QS&C)/SW/AEE(QS&C)/ASW/AE
Office (QS&C)/JE (QS&C)
GE/AGE(I) Office AEE(QS&C)/AE(QS&C)/ASW/

JE(QS&C)
(b) Publ isher CE's/CCE's SE(QS&C)/SSW/EE(QS&C)/SW/AEE(Q
Office S&C)/AE(QS&C)
CWE's/GE(I)'s EE(QS&C)/SW/AEE(QS&C)/ASW/
Office AE(QS&C)
GE/AGE(I) Office AEE(QS&C)/AE(QS&C)/SW/JE(QS&C)

(where no AE (QS&C)/AEE(QS&C)
posted)
(c) Evaluator CE's/CCE's CE /S E (QS&C)/SSW
Office
CWE's/GE(I)'s CWE/EE(QS&C)/SW/AEE(QS&C)/ASW
Office
GE/AGE(I)Office GE/AGE(I)/AEE(QS&C)/ASW/AE(QS&C)
(d) Opening (i) CE Zone to decide bid openers in his office as well as
Officer (Bid GEs(l) under his AOR. Similarly CWE will decide
Openers) about the bid openers for his office as well as GEs and
AGEs(!) under his AOR. Only officers will be bid
openers in CE and CWE offices. In GE(I), GE and
AGE(I), JEs can also be appointed as bid openers .
(ii) There is no embargo on detailing officers from contract
section for bid opening. The names of bid openers to
be selected for particular tender shall be approved by -' I .;
Accepting Officer, else the Accepting Officer can

authorize the te nder creator to select bid openers
from the list available in the system .
. .. .. 52C/_
-52C-
,.3. The Nodal officer shall create users after receipt of application in the prescribed
fo rm at at An nexure '3 A- 1'.
4.4. On posting out of CE Zone , Nodal officer (LEVEL-2.), the incomi ng Ch ief Eng in eer
shall fwd Annexure '3 A-1' duly filled to the Noda l Offi cer (LEVEL-1) at E-in-C 's Branch for
his nomination as Nodal Officer and mapping on organizational tree structure. Similarly on
posting out of CWE, Noda l officer (LEVE L-3), the new CWE shall fwd Annexure '3 A-1 ' du ly
completed to the Nodal Officer (LEVEL-2) at CE Zone for his nomination as Noda l Officer
and mapping on org anizational tree structure .
4.5. The names of users posted out shal l be transferred to their new formation by the
Nodal Officer and it will be ensured that their names do not exist in the old formation
thereafter. The user shall submlt application as per Annexure '3 A-I' to the new formation
and re spective Nodal OfficeF shall take necessary action for authorizing the incumbent, if
requ ired .
5. PRESS ADVT/NIT
5.1 In the press advertisement, name of works shall be worded with due care with
respect to security measure and it shall be ensured th at name of work does not disclose the
information of confidential nature as mentioned in para 3.3.8 of Manual on Contract 2007
(Reprint 2012). Accep tin g officer shall be responsible for framing the name of work . Also
refer instructions issued by E-i n-C's branch vide lette r No 66546/P-3/208/E8 dt 08 Oct 13
and any subsequent instructions on this.
5.2 Press advertisement fo r the work shall be issued in th e format as per Anne xure
'3 A-ll '. Thi s sha ll be issued t~rough OAVP an d Ind ian Trade Journal (IT J). If estimated cost
of wo rk is less than Rs 20 lakhs, then press advertisement may be given directly to the
Newspapers as per instructions on the subject. The advertisement should be published in
minimum possible dimension. The contents of NIT shall be sent to OAVP/IT J th rough
e-ma il.
5.3 Tender 10 sha ll also be mentioned in the condensed version of press advertisement
for reference of the tenderer. Tender 10 is generated by the www.eprocuremes.gov.i n site
while creating the tender.
5.4 Notice Inviting Tender (NIT) shall be issued in the format as per Anne xu re '3 A-111 '
and uploaded on the website. However the NIT need not be circulated physically. ·
5.5 Appendix 'A ' to Notice of Tender (N IT) shall be as per Annexure '3 A-IV' , depend in g
on the estimated cost of wo"rk .
5.6 For Runway works , specialist E/M services tenders, furniture tenders appropriate
form of Annexure '3 A- IV'/suitably modified form shall be used in accordance w ith
instruction s in vogue.
5.7 Further stipulations shal l be made in NIT and/or Annexure to NIT to incorporate
addition al instru ctions issued from time to time (on PF/ Service Tax etc. or any othe r
isuues).
5.8 Publication of NIT on MES website shall also continue in add ition to issue of press
advertisement. Both activities shall be done concurrently.
6. INSTRUCTIONS TO TENDERERS
6.1 Sample forwarding letter to form part of tender documents shall be as per Annexure
'3 A-V',
6.2 General Instructions on filling and submission of tenders shall be as per Annexure
'3 A- VI '.
. ... 52(0)/-
'J
-52(0)-
7. COMPOSITION OF BIDS FORE-TENDER
7.1 The documents required to be uploaded by the bidders in the respective cover shall
be specified by the tender issuing authority !n the NIT. Format from Annexure '3 A-IV shall
be applicable for tender costing upto Rs 15 Cr or Rs 15-50 Cr or above Rs 50 Cr as
applicable. Please also refer Notes under Para 5.5 above.
7.2 SINGLE STAGE TWO COVER SYSTEM
(a) Cover 1 -Cover 1 shall contain documents as stipulated in NIT. 'Hard copies of
all documents uploaded in Cover 1 shall reach the office of Accepting Officer within
the No. of days after bid ();losing date as specified in the NIT.
(b) Cover 2- Cover 2 shall contain the BOQ . In addition, Cover 2 will also contain
other details as aske<:l for and mentioned in the tender documents . The BOO shall be
va lidated and password protected before uploading by the bidder.
All the documents forming part of tender such as tender forwarding lette r,
instructions to tenderers, Particular Specifications , Special Conditions, list of drawings ,
tender schedules (prepriced) , drawings shall be uploaded in pdf/rar format
7.3 TWO STAGE TWO COVER SYSTEM
7.3.1 Stage 1. In stage 1, only the Notice of Tender (NIT) including Appendix 'A' thereto
shall be uploaded. In the bidding for thi s sti.i:)e, there will be one cover. This cover shall be
same as Cover 1 mentioned in para 7.2 hereinbefore .
'•.
7.3 .2 Technical bid evaluation of all the bids shall be done and the result/summary sha ll
be uploaded.
7.3.3 Stage 2. The tender for stage 2 shall be in 'closed limited ' type enabling only the
bidders qualifying in stage 1 to access the tender. In stage 2, complete tender documents
including drawings shall be uploaded in pdf/rar format alongwith BOO in excel format . In this
stage, there will be only one cover which is BOO.
7.3.4 All other relevant provisions of single stage two cover bid system shall be followed in
this bidding system.
...
8. PREPARATION OF E-TENDER
8.1 ITEM RATE E-TENDER.
8. 1.1 The complete tender (except price bid/BOO) shall be prepared in a normal manner as
done earlier and shall be converted into pr:lf format and stored as a separate folder. The
format prescribed in the portal shall be followed.
8.1.2. BOO or Schedule of wo rk (viz Sch A) shall be prepared using the BOO template for
the same in circulation and also available on website www.eprocuremes.gov.in . This
template shall be downloaded and BOO prepared offline for uploading after finalization .
8.1.3. Tenderer shall be required to quote for each item of BOO in figures. Rate in words
shall be generated by the system automatically.
8.1.4 . Schedule of credit in an item rate tender shall be prepared duly prepriced and shall
be uploaded in pdf alongwith tender documents. However a note shall be inserted in Sch A
Notes to the effect that the contract sum shall be arrived at after deducting amount of
schedule of credit from the total quoted amount .
8.2 LUMPSUM E -TENDER

8.2. 1. BOQ or Schedule of work (similar to Sch A in physical tendering system ) shall be
prepared using the BOQ template in circulation. The template shall be downloaded and
duly finalized BOQ uploaded.
. .... 52 ( E)/-
'<::
-52(E)-
.L.2 Lumpsum tenders have various Sch 'A' parts e.g. Building works (either prepriced or
to be quoted), Sch 'A' parts havi ng prepriced schedules for jnternal/exte m al services, Parts
having Miscellaneous schedules to be quoted itemwise by contractor, Part for Sch of
Credit, Provisional Lump Sum, Prime Cost Sum etc.
/
8.2.3.1. Bldg Works .
(a) If this part is prepriced based on SSR ra te, this shall be prepared as part of the
tender documents in pdf/rar format In BOO , total of Sch 'A' pre-priced amounts will
be inserted as item No. 1. Amount quoted against this item by the bidder shall be the
lump sum fo r this Sch~dulf3 'A' The percentage above SSR pre-priced amount shall
be derived in the exc~l sheet automatically by the system.
(b) In case of lump sum tender to be quoted by tenderer based on drawings and
specification . al l bldg items shall be listed as separate items in BOQ and contra ctor
shall quote lump sum amount for each bldg separately.
8.2.3.2. Pre-pri ce d Schedules for Internal/External Services. These schedules sha ll be

part of tender documents in pdf/rar form. In BOO, total of respective parts of Sch 'A' w ill be
in serted as items. Amounts quoted against these items by the bidder shall be the lump sum
quote for the respect ive parts of Sch 'A'. The percentage above SSR pre-priced amount
shall be derived in the excel sheet automatically by the system.
8.2.3.3. Miscellaneous Schedules (To be quoted itemwise by contractors). All items

shall be included in the BOQ simi lar to that as for the item rate tender described above.
8.2.3.4. Sch of Credit. Schedule of credit shal l be prepared duly priced and shall be
uploaded alongwith tend er documents in pdf/rar format However a note shall be inserted in
Sch A Notes that quoted sum shall be arrived at after deducting amount of schedule of
cred it from the total amount of the BOO.
8.2 .3.5. Provisional Lump Sum. Estimated total amount based on SSR rates wi ll be
inserted as an item. The percentage shall be derived automatically by the system in the
excel sheet BOO based on the amount quoted against this· item by the bidder. This
percentage (plus/minus) shall be applied on the SSR rates for the items to be payab le under
Provisional LumpSsum . Suitable Note to this effect shall be inserted in Sch 'A' Notes.
8.2.3.6. Prime Cost Sum. Estimated total amount will be inserted as an item. The
percentage shall be derived automatically by the system in the excel sheet BOO based on
the amount quoted against this item by the bidder. This percentage (plus/minus) subject to
maximum of 15% (on plus side) shall be taken as the PC Sum percentage. Suitable Note to
th is effect shall be inserted in Sch 'A' Notes .
8.3 SPECIALIST TENDERS (TENDERS FOR AIRCONDITIONING/ COLD STORAGE/

REFRIGERATION/ WATER PURIFICATION PLANTS/ SEWAGE DISPOSAL SCHEMES & OTHER
SPECIALIST WORKS AS MENTIONED IN PARA 12.1 OF MANUAL ON CONTRACTS) .
8.3.1 These tenders shal l be done in Two Stage Three Cover system Stages shall be as
mentioned hereinafter.
8.3.2 Stage 1 . In stage 1, the complete tender documents with BOO and drawings shall
A be uploaded in pdf/rar form. In the bidding for this stage, there will be two covers. First cover
ep, shall be same as mentioned in para 7.2 hereinbefore. Second cover shall contain the
technical details (desig n details proposed by bidder) alongwith commercial terms and
conditions offered by the bidders. Cover-2 of only those bidders will be opened who qua lify
after bid evaluation of cover-1.
8.3.3 Correspondence wj.th Bidders . Correspondence shall be made with bidders whose
cover 2 of Stage 1 are opened. This correspondence shall be for bringing at par the
technical details (design details proposed by bidder) and their commercial terms and
conditions. All such correspo ndence shall be made online through email.
..... 52(F)/-
-52(F)-
0.4 Stage 2. In Stage 2, complete lender documents alongwith reference of

correspondence made with qualified bidders of Stage 1 shall be uploaded in pdf/rar format.
Since correspondence with bidders are bidder specific, only bidder-wise reference of letters
sent to them online and reference of their replies shall be made part of tender document at
this stage. Apart from this , BOO in excel format shall be uploaded . This BOO shall be as
per finalized design of the item of work subsequent to bringing at par the technical details
commercial terms and conditions of all bidders . In the bidding for this stage, there will be
only one cover consisting of BOO.
9. UPLOADING OF TENDER
9.1 After the tender documents (pdf/rar) and BOO are ready , the same shall be uploaded
on website www.eprocuremes.go,v.in. using DSC of tender creator. However, if due to any ·
reason it is not possible to- upload the tender in one go , it can be done in a number of
sittings. The server saves any uploading done in earlier sittings.
9.2 During uploading of tender, names of four bid openers shall be selected. List of
individuals having DSC in a formation and who have been mapped in by Nodal officer, shall
be visible on the system. The bid openers shall be selected as stated in para 4.2 (d) (ii)
hereinbefore. Any two, out of the four openers, can open the tender using their DSC .
9.3 Critical dates such as bid publication date , bid download date, bid opening date, bid
closing date, and pre-bid meeting date etc should be decided carefully following the
instructions mentioned below:-
(a) The minimum period between tender publishing date and bid submission start
date shall be as under: -
I
(i) Item rate tender not exceeding Rs 50 lakhs : 14 days
(ii) Item rate tender exceeding Rs 50 lakhs : 21 days
(iii) Lump sum tender : 28 days
(b) . In case of revision of BOO , the period between uploading of revised BOO and
bid submission start date shall be decided based on quantum and nature of revisions
but in no case shall it be less than three da ys excluding the date of publishin g of
corrigendum containing revised BOO.
(c) The bid submission closing ti me for all tenders of ell formations shall be 1800
hrs .
.:
9.4 Afte~ uploading the tender, printout c; the complete tender documents sha ll be taken
and kept in files duly signed by the concerned individual (creator) and I or JE (OS&C).
Copy of this tender shall be forwarded to all internal sections for their comments . Alternately
the soft copy in pdf/rar format of the complete tender shall be made available to all internal
sections. CWE and GE shal l be informed that tender has been uploaded/published
intimating the tender id so that they can download, study and offer their comments.
10. AMENDMENT TO TENDER DOCUMENTS (CORRIGENDUM)
10.1 Amendments to tender documents are issued as corrigendum. The corrigendum shal l
be prepared and uploaded in pdf format
10.2 The portal also allows various other corrigenda like change of various critical dates·
throwgh corrigendum for revision of dates , change of bid openers , revision of any stage etc .\
10.3. In case there is any amendment to BOO, the complete BOO duly revised has to be
uploaded again . Once revised BOO is uploaded, the same is visible to th e contractors for
quoting
..... 52(G)/-
-52(G)-
11. OPENING OF TENDERS/BIDS
11.1. After the bid clos in g time & date , no chan ge in the bid is permissible .
11.2 The Accepting Officer shall decide · on postponing tlid submission end date after
ta king into account the number of bidders who have participated. The information on the
nu mber of bidd ers who have participated sha ll be available after bid submission end date.
11.3. Bids sha ll be opened by any two out of four bid openers whose names are already
registered in th e system at the time of creation of tender/ changed through corrigendum .
Once names of fou r bid openers have been fina lised in accordance with para 4.2 (d) (ii)
he reinbefore , Con tra ct Section may approach any two available bid openers for opening of
the bid. Even if the bid opener is not available in the station , he can open the bid from any
place using his DSC. ~
11.4 Te nd er shall be opened in two steps. In first step, Cover 1 (Tech bid) shall be
opened. In second step , 2nd Cover of applicants who have been found eligible after
opening of 1st cover, shall be opened on or after due date and time .
12. TECHNICAL BID EVALUATION
12 .1. After opening of cover 1 (Technical Bid) , all the bidders/applications shall be
examined ·as per existing instructions such as elig ible class & category , remarks in Work
Load Return , co st of tender, residual capacity, PQC , instructions on Provident Fund etc
(as applicable) . The existing procedure for screening of applications/bids by the Tend er
Selection Committee for particular nature and va lue of works as given in the Manual on
Co ntracts shall continue. The details of selection of bidders showing the decision on bid
validation by Acce pting Officer shall be prepared offline for qualifying/disqualifying
contractors .
12.2 No perm ission of NHEA (N ext Higher Eng ineer Authori ty) is required for qualifying an
unen listed contractor in Technical bid evaluation. However, it shall be ensured by Accepting
Office r that the unenlisted bidder meets the criteria for enlistment in appropriate class as per
criteria in NIT.
12.3 All the deta ils shall be put up to the Accepting Officer for final decision on selection or
rejection of the applica nts for 'T' Bid evaluation . After decision of the Accepting Officer, a
summary of scrutiny of 1 st cover ('T' Bid) showing result of selection/rejection alongwith
re asons shall be prepared and uploaded on the website by tender eva lu ator. This summary
wi ll be visible to all on the website . Date of opening of price bid i.e . cover-2 , shall also be
fixed at this stage. ...
12.4 No report on acceptance and rejection of technical bids (Cover I) is required to be

submitted to th e NHEA.
12.5 Period between technical bid evaluati011 and finance bid opening shall be as under-
(a) If technical bids of all bidders are found to be qualifying for opening of finance bid ,
finance bids sha ll be opened at the earliest, but not later than two working days after
technica l bid eva lua tion. ·
(b) If technical bids of one or more bidders are found to be not qualifying for opening
of finance bid, a period not less than seven days shall be kept between upload in g of
• technical bid eva luation summa ry and finance bid opening . The disqualified bidder
may appeal to NHEA with copy to Accepting Officer through email. On receipt of any
such appeal from the bidder or query from NHEA regarding such appeal , the date of
opening of Finance Bid shall be postponed by minimum seven clear days from the
date of receipt of such appeal/query from NHEA (whichever is later) to enable NHEA
to dispose of the representation
.. .. 52(H)/-
' l
... -··· · ---·- ·-~· ~·-- ··---- · -···~ .......--..........,.It;.••··· ~
' I
-52(H)-
12.6 Action to be Taken, When Only One Single Eligible Bid qualifies in 'T' bid
evaluation (in Single Stage Two Cover System). If only one bid is considered as
qualified/cleared in first cover ( 'T' bid) after 'T' bid evaluation, Accepting Officer shall decide
to proceed for opening of second cover or to retender. l,f Accepting Officer gets second
cover opened and considers single bid reasonable, he will decide whether to utilize single
tende r powers as per RMES or retender. Considering the transparent tendering process ,
whereby anyone from any part of the Nation can participate, there is no requirement to have
minimum seven bids in first cover. ·
12.7 Action to be Taken, When Only One quoted Bid Received in Second Cover out
of Several eligible Bids received and qualified in First Cover (in Sing~ Stage Two
Cover System). Accepting Officer to examine the reasonability and decide whether to
accept or retender. Acceptance of such bid shall be with prior approval of NHEA in terms of
Para 46 (f) of DWP-2007. , ,
13. FINANCE BID OPENING (COVER -II)
13.1 The opening officers shall open the BOO of all the bidders whose bids have been
accepted in the technical evaluation. In case adverse remark is noticed against a bidder
after qualifying the bidder and uploading the Technical Bid Evaluation Summary, but before
Finance Bid opening time, the Technical Evaluation Summary shall be revised. In such
case, Finance Bid opening time & date shall be postponed at least for further seven days to
enable the disqualified bidder to represent to NHEA and NHEA to convey decision on the
representation . Similarly, if remark against a bidder is changed from adverse to "Yes" after
uploading the Technical Bid Evaluation Summary but before Finance Bid opening time, the
bidder's Finance Bid shall be opened by amending the Technical Evaluation through
corrigendum.
13.2 In case the BOO is revised by the Department and the bidder has failed to quote in
revised BOO (i.e . he has quoted in previous BOO) , such bid shall be treated as willful
negligence by the bidder and his quotation shall be considered non-bonafide. In such cases
the lowest tender shall be determined by the lowest amount amongst the valid/bonafide
bids only. Accepting Officer may decide whether to retender or otherwise. The remark of
'non bonafide finance bid ' against such bidder and copy of this CST shall be uploaded
alongwith Finance Bid Opening Summary Suitable instructions shall be given for this in the
tender.
13.3 Printout of individual finance bids as well as comparative statement of rate s quoted
by all the tenderers/bidders as generated automatically (called BOO Chart) shall be signed
by the bid openers for recQ,rd purposes.
14. FINANCE BID EVALUATION. Market analysis prepared offline shall be the basis of
finance bid evaluation and shall be kept on record duly signed by the concered officer. Copy
of acceptance letter shall be uploaded on the website (under 'AOC' menu) using DSC of
evaluator.
15 COMPARATIVE STATEMENT OF TENDER (CST). This shall be prepared and
signed by bid openers. Recommendation of concerned E8 officer i.e. Dir
(C)/SSW/DCWE/ACWE(C)/AD (C)/AAD(C) and orders of Accepting Officer shall be
recorded on CST and kept on record.
16. CTC OF CONTRACT. After tender has been accepted and acceptance letter
uploaded on the website, a print out of complete tender docs shall be taken for the purpose
of making original contract documents and CTC thereof. A copy signed by both the parties
thereof alongwith CST prepared offline shaii be forwarded to PCDA/CDA till such time the
procedure is evolved by Audit to keep e-record or peruse e-record on website.
17. VALIDITY OF BIDS. Validity of the bids for t~e purpose of validity of tender as
stipulated in Special Condition shall commence from the next date subsequent to bid
submission end date. Suitable provision in Special Condition shall be made to this effect.
Validity shall be normally for 60 days for single cover two stage system/ two cover two stage
system. Validity of bids based on two-stage three-cover system shall be 60 days from the
bid submi'ssion end date of Stage 2 containing finance bid.
. 52(J)/-
-52(J)-
18 . PREV ENTIO N OF CARTELIZATION. A ll Accepti ng Officers sha ll also examine the

MI S report on e-procure si te and en su re that there is no cartelization indicated there in at
each stage of openin g of packets/ covers . In case any carte'lizati on is found , acti on against
contractors sha ll be in itiated and action shall be taken to retender imm ed iately . The eve nt of
up lo ading from sa me IP address need not be con sid ered as carteliza ti on unless other
supportin g re asons ex ist Pro ba bility of quotation through internet centers/cafe cann ot be
ru led out and cannot be objected .
19. MISCELLANEOUS .
19.1 All corres pondence in te ndering process after creation of tender till acceptance of
finance bid includ ing AOC (A,cce p:tan ce of Contract) shall specifica lly mention the tender id .
19.2 Date of rec eipt of tender as re ferre d to in tender documents at various location s/for
various purposes inclu ding that men tioned in the specia l condition for re imburs ement on
va riation of prices sh all be the bid submission end date. Suitable provis ion in special
condition sha ll be made to this effect
- ·-·fo' ( '
Pc::r.l,.~.
ANNEXURE 3 A- I
Military Engi neer Services eP roc urem ent Porta l
https ://eprocu remes.gov .in/nicgep/a pp
Request Form for Tende rs Ad minist ra t ion Acc ount
Personal Detai ls:
1 Title*: Mr/Mrs/Ms/Or/Sri
2 First Name*:
( Last Name*:
! 3 Date of Birt h*: (DD/MMNY)
4 Log in ID* say abc@gmail.com:
(Logi n ID s hould be individual's persona l id not designation based id)
5 Organization Name*: i
6 Dept/C ircle*: "
7 Division *: Designation*:
8 Address1 *:
9 Add ress2:
10 Distr ict:
11 City*: Pincode:
12 Corresponde nce Email ID*:
(Correspondence Email ID can be same as Login ID. All the mail correspondence
will be sent only to the Correspondence Emai i iD)
13 Phone: 91: STD: No:
14 FAX: 91: STD: No:
15 Mobile:
(All the SMS correspondence will be sent only to this Mobile number)
16 User Roles: Nodal officer/
Tender Creator/Publisher/Bid Opener/Evaluator
I (select one or.more as applicable)
Date: Signature of Tender Inviting Authority

Name:
Seal:
Note: The requested tenders administration accounts details will be communicated by email
Disclaimer: This account is meant for publishing and maintaining the Tenders information
on Government eProcurem-tnt Portal. The sole responsibility of the accuracy and validity of
User information/ contents in the Tender documents shall rest with the authorized user of
the Account i.e. the concerned Tender Inviting Authority who is responsible for Tender
administrati on. NI C shall be responsible only for ensuring the system performance and
security.
'j
ANNEXURE 3 A - II
NOTICE INVITING E-TENDERS

(for Newspaper publication purpose)
Chief Engineer/CWE/GE/GE(I)/AGE(I) ...... ....... ............... ... .......... ... ... .. .. .. on behalf of
President of India invites online item rate/percentage rate I Lump Sum bids on Single Stage
Two Cover Bid System for the. following
) "' .
work:-
1. Name of Work - ........... ...... .... ...... ,

2. Estimated Cost- Rs .. .. ...... ... ... .
3. Period of completion - .... .. .... ..
4. Tender id :
For further detail refer web site eprocuremes .gov.in/eprocure.gov.in
Note:-
1. Notice Inviting Bid as published in newspapers shall not form part of Notice of
Tender/ Bid document
2. Type of tender (lump sum/item rate etc) shall be as applicable and bid system shall
be specifically mentioned as decided by Accepting Officer .
....
ANNEXURE 3 A - Ill

NOTICE INVITIN G TENDER (NIT)
1. A tender is invited for the work as mentioned in Appendix 'A' to this NOTICE
INVITING TENDER (NIT)
1. The work is estim ated to cost as indicated in aforesaid Ap pendix 'A'. This estimate,
( however , is not a guarantee and is merel y give n as a ro ugh guide and if the work cost
i
mo re or less , a tende rer/bidder will have no claim on that acco unt. The tender shall be
base d on as mentioned in aforesaid Append ix 'A'.
2. The work is to be comp leted within the period as indicated in aforesaid Append ix 'A'
in accordance with the phas ing, if any, indi cated in the tender from the date of handing over
site, which will be on or about two weeks after the date of Acceptance of tender.
4. Norm ally contractors whose na mes are on the MES approved list fo r the area in which
the work li es , and withi n whose fin ancial category the estimated amount would fall , may
te nder/bid but in case of term con tracts , contractors of categories SS toE may tender/bid.
In cas e, where the tender amo unt is in exce ss of the financial limit of the contractor and
the Accepting officer decides to accept U1 2 te nder/bid , in which event the tenderer/bidder
wo uld be required to lodge additional security deposit as notified by the Accepting Office r
in te rm of cond itions of contract. Contractors whose names are on the MES approved list
of any MES Formation and w ho have deposited stand ing security and have executed
standing secur·ity bond may also tender/bid without depositing Earnest money along with
the tender/b id and if the ten der/b id submitted by such a tenderer/bidder is accepted, th e
co ntractor will be required to lodge with the Controller of Defence Accounts concerned the
amo unt of 'Indiv idual secu rity deposit' within thirty days of the receipt by him of notificati on
of acceptance of his te nder/bid, failin g which thi s sum will be recovered from 151 RAR
payment or from the first final bill. In th e case of term/running contracts , remaining sum shall
be recovered from subsequent bill(s) of the co ntractor. Not mo re than one tender/bid shall
be subm itted/uploaded by one co ntractor or one firm of contractors. Under no
circumstan ces will a father and hi s son(s) or other close relations who have bus in ess
dea ling with one anoth er be allowed to tender/bid for th e same contra ct as separate
competitors . A breach of this condition will render the tenders/bids of both the parties
liab le fo r rejection.
5. Th e Office of_ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ will be

the Accepting Office r here in after refe rred to as such for purpose of the contract.
6. The Technical Bid arid Fin ancia l Bid (Cover-1 and Cover-2) shall be uploaded by the
te nderer/bidder on or before the date & time mentioned in NIT. A scanned copy of DD with
enl istment de tails/documents shall be uploaded as packet 1/cover-1 ('T' bid) of the
tender/bid on e-tende ring porta l. DO is refundable in ca se T bid is not accepted resultin g in
non~ope n ing of 'Q ' bid. The applicant con tractor shall bear the cost of bank charges for
procuring and enc ashing the DD and shall not ha ve any claim from Government
whatsoever on this acco unt
6.1. Tend er form and conditions of contract and other necessary documents sha ll be
available on ep r·ocuremes.gov.in /eprocure.gov. in site for download and shall form part of
co ntract agreement in case the tender/bid is accepted.
.. ·+~\~f
·.
ANNEXURE 3 A- Ill (Contd/-)
6.2 In Case of contractor who has not executed the Standing Security Bond, the Cover-!
shall be accompanied with by Earnest Money of amount a~ mentioned in Appendix 'A' in
the form of deposit at call receipt in favour of concerned CCE/ GE/ GE(I)/ AGE(I) (see
Appendix 'A') by a scheduled Bank or in receipted treasury Challan the amount be in g
credited to the revenue deposit of the concerned CCE /, GE/ GE(I)/ AGE(!) (see Appendix
'A').
6.3 A contractor who is not enlisted for the area in which the work lies but whose name is
in the MES ap proved list of any MES formation and who has deposited standing se curity
and executed stand ing security Bond m2y 2;:;1 without depositing earnest money alongwith
the tender; but if the Accepting office r accepts the tender/bid , the contractor wil l be
required to lodge with the Controller of Defence Accounts concerned the amount of
'I ndividual security depos it' within thirty days of the receipt by him of notification of
acceptance of hi s tender/bid, failing which this sum wi ll be recovered from 151 RAR paym ent
or from the first final bill. In the case of term/running co ntracts , remaining sum shall be
recovered from subsequent bill(s) of the contractor.
6.4 A contra ctor who has executed standing security Bond but not corresponding to the
appropriate class as mentioned above, shall lodge with the Accepting Officer, Additional
Security Dep osit as notified by the Accepting Officer with in thirty days of the receipt of his
notification of acceptance of his tender/bid, failing which this sum will be recovered from
the first RAR payment or fro'm the first final bil l. In the case of term/running con tra cts,
remaining sum shall be recovered from subsequent bill(s) of the contractor. However, in
case where any payment is made to the contractor wi thin thirty days of the receipt by him
of notification of acceptance of tender/bid, the amount of additional security deposit shal l
be recovered from such payment.
6.5 The CC E/ GE/ GE(I)/ AGE(I) will return the Earnest Money whereve r applicable to
all unsuccessful tenderers/b idde rs by endors ing an authority on the deposit-a t-call receipt
for its refun d, on production by the tenderer,bidder a certificate of the Acceptin g Officer
th at a bonafide tender/bid was re ceived and all documents were returned.
6.6 The CCE/ GE/ GE( I)l'AGE(I) will eithe r return the Earnest Money to the successful
tenderer/bidder by endorsing an authority on th e dep osit-at-call Receipt fo r its refund on
receipt of.an app ropriate amount of Security Depos it or wi ll retain the same in part or fu ll
on account of sec urity deposit if such a transaction is feasible.
6.7 Copie s of the drawings and other document pertaining to the work signed for the
purpose of identification by the Accepting Officer or his accredited repres er1tative, samp le
of materials and stores to be supplied by the contractor will also be available for inspection
by the ten derer/bidder at the office of Accepting Officer and concerned GE/ GE(I )/ AGE(I )
during working hours.
7. The ten dere rs/bidders are adviseo · to visit the site of work by making prior
appointmen t with GE/ GE (1)/ AGE(I)/ CCE/ Project Manager who is also the Executing
Agency of the wo rk (see appendix 'A'). The tenderers/bidders are deemed to have full
knowledge of all relevant docume nts , samples, site etc. , whether th ey have inspected
them or not.
8. Any tend er/b id which proposes any alteration to any of the conditions laid down or
which propos es any other condition or prescription whatsoever, is liable to be rejected .
ANNEXURE 3 A- Ill . (ContQB
9. The uploading of bid implies that bidder has read this notice and the Condition s of
Contract and has made himself aware of the scope and specification of work to be done
and of the conditions and rates at which stores, tools and plants etc will be issued to him
and local conditions and other ~actors having bearing on the execution of the work.
10. Tenderers/bidders must be in possession of a copy of theMES Standard Schedule of

Rates (see appendix 'A') including amendments and errata thereto.
11. Invitation for e- tender does not constitute any guarantee for validation of 'T' bid and
subsequent opening of finance bid of any applicanVbidder, even of enlisted contractors of
appropriate class , merely by virtue of enclosing DO. Accepting Officer reserves the right to
reject the 'T' bid and not open the finance bid of any applicant/bidder. 'T' bid validation shall
be decided by the Accepting Officer based on, inter alia , capability of the firm as per criteria
given in Appx 'A' to this NIT . The applicant contractor/bidder will be informed regarding non-
validation of his 'T' bid assigning reasons thereof through the eprocuremes website. The
applicant contractor/bidder if he so desires may appeal to the next higher Engineer authority
vi z on email id mes@nic.in with copy to the Accepting Officer on
email before the scheduled date of opening of Finance .Bid. The decision of the Next Higher
Engineer Authority (NHEA) shall be final and binding. The contractor/bidder shall not be
entitled for any compensation whatsoever for rejection of his bid. ·
12. The Accepting Officer reserves the right to accept a tender submitted by a Public
Undertaking , giving a price preference over other Tender(s)/bids which may be lower, as
are admissible under the Government Policy. No claim for any compensation or otherwise
shall be admissible from such tenderer/bidder whose tender/bid is rejected .
13. Accepting Officer d'bes not bind himself to accept the lowest or any tender/bid or to
give any reason for not doing so.
14. This Notice Inviting Tender (NIT) including Appendi x 'A' shall form part of the
contract .
Signature of contractor For Accepting Officer
'j 8Pi.-:r.i:\D!:!Sk1·o~-;\/\rnnd :,· \IE:,; ~::cn d (-; ring

r.
,, i
I
I.
ANN EXURE 3 A -IV
APPENDIX 'A ' TO NOTICE INVITING TENDER(NIT)

(For works costinq less than Rs 15 crores )
1 Nam e o w ork
2 Estim ate d Cost . Rs (At Par Market)

3 Period o f_comp letion days
4 Cost oft e nder docum ents Rs in the shape of DO/B anke rs cheque
from any schedu le Bank in favour of CCE/ GE/ GE(I)/
AGE(I) and payable at
5 Webs ite I porta l address www.eQrocuremes.gov.in and www.mes.gov.in ..
6 Type of c o ntract The tender shall be based on drawings and
)
specif! :::::.tions (IAFW-2 159) and GCC (IA FW-2249) with
" Schedule 'A' (li st of items of work) to be priced by
tenderer. The tend erers are requ ired to quote their lump
sum amounts for prepriced parts of Schedule 'A ' and
quote rates against items of other parts of Schedule 'A '.
(For other types of tenders, suitable modification shall be

made)
7 Inform ali on & Details :
(a) Bid s_u bmission start date Refer critical dates
(b) Last d ate of bid
submis sion
(c) Date-- 0 f bid open ing
8 Eligib ility Criteria \
(A) For M ES enlisted All contractors enlisted w ith MES in Class '
- ' and
contra ct 0 rs above and category _ _ shall be considered qualified
provided they do not carry adverse remarks in WLR of
.. compete nt engineer autho rity .
(B) F 0 r oth e r co ntractors (a) Th e firms not enlisted with MES shall meet the enlistment
crite ri a of '__ ' class MES contractors & category ___
i.e. with regard to having satisfactorily completed requisite
value works , Annual turnover, Solvency, working capital ,
immovable property/fixed assets , T&P , Engineering
establishment, no recovery outstanding in any Govt
Department, Poli ce verification/Passport etc. Enli stment
criteria may be seen in Para 1.4 of Section 1 of Part I of MES
Manua l on Contracts - 2007 (Reprint 2012) as available in all
"'· MES formations.
(b) These firms sha ll also subm it cop y of Police

verification from police authority of the area where the
registered office of the firm is located I notari sed copy of
valid passport of proprietor/each partner/each Director.
(c) They should not carry adverse remark s in WLR /or

any other similar report of any authority.
··- -
(C) Fo r A II Contractors Contractor will not be allowed to execute the work by
subletting or through power of attorney holder on his
behalf to a third party/another firm except
sons/daughters of proprietor/partner/Director and firm's
own employees , Director, Project Manager. This sh all be
subject to certain conditions which wi ll be prescribed in
the NOT forming part of the tender documents.
9 Tender is suing and
Acce pt in g Officer
10 Executlfl g agency GE /P M
11 Earne sy Money Rs in favour of CCE/ GE/ GE(I)/ AGE(I) ·
ANNEXURE 3 A - IV
APPENDIX 'A' TO NOTICE INVITI NG TENDER

(Fo r works costing less tha n Rs 15 crores ) contd ...
NOTES:
The contra ctor e nlisted upto one* class below the ·e ligible class may also apply/bid .
Appli cati on/b id s from o ne class below eligible class applicants may be considered in the
event of inad equate response/bids from the applicants of e li gible class .
(* This sh all be 'two' in case of works in remote and difficult stations and following
additional provision to be a dcfecf ..
"Applicalton from two c{~ss belo w eligible class applicants may also be considered in
the event of inadequate response from the applicants of eligible class and one class
belo w eligible class. ")
(b) (i) Ap plicatio ns/bids not accompanied by scanned copies of requisite

DO/B anke rs Cheque towards cost of tender and earnest money (as applicable)
shall not be co nsidered fo r validation of 'T' b id and their finance bids will not be
open ed
(ii) Te r1de rers /bidders to note that they should ensure that their original DDs and
earn est mo ney (as applicable) are received within _ _ * days of bid submission end
date
(* Th e numb er of days to be mentioned shall be as decided by the Accepting
Officers . but it shall no( be less than 5 days)
(i ii) lr1 case of applications/bids from enlisted contractors of MES , where scanned
cop ies of re quisite DO/Bankers Cheque towards cost of tender has been uploaded
but physica l copies are not received by the stipu lated date, finance bids wi ll be
ope ned However non -submission of physical cop ies of cost of tender shall be
con si de red as willful negligence of the bidder with ulterior motives and such bidder
shal l be b.anned from bidding for a period of six months commencing from the date of
open in g of finance bid.
(iv) In case of applications/bids fror,, J:lenlisted contractors , where scanned copies of

re qu isite DO/Bankers Cheque towards cost of tender has been uploaded but physica l
copies are not received by the stipu lated date, finance bids wi ll not be opened. Name
of sucil contractors 't:ilongwith complete address sh:J II be circulated for not opening of
th eir bids for a period of six months commencing from the date of opening of finance
bi d.
(v) In case of app li cations/bids( enlisted contractor as well as unenlisted contractor)

where scan ned co pies of requ isite Earnest money (as applicable) were uploaded but
th e sam e are not received in physical form within stip ulated time, such bids shall not
qua lify fo r opening of finance bid.
(c). Contracto rs enli sted with MES will up load following documents for checking
eligibility: -
(i) Appli cation for bid in Firm 's letter head

(ii) Enli stmen t lette r
(iii) Sca nn ed co py of DO of cost of tender
(d ) Contractors not enlisted with MES will be required to upload necessary documents to
prove their el igibi lity for enlistment in eligible class & category of work , including Affidavit for
no reco very outstanding. List of documents requi1ed for enlistment in MES has been given
in para 1.5 of section 1 of Part I of MES Manua l on Contracts 2007 (reprint 2012). Following
documents shall al so be up loaded amongst others:
- .r'
ANNEXURE 3 A -IV
APPENDIX 'A' TO NOTICE INVITING TENDER

{For works costing less than Rs 15 crores) contd ...
(i) Details of three highest valued similar nature of works executed during last five
years, financial year-wise in tabufiir form giving name of work, Accepting Officer's
detail s, viz, Address, Telephone, Fax No, E-mail ID etc, date of acceptance of
tend er and actual date of completion. This shall be duly signed by proprietor I all
partners I authorised Director of Pvt I Pubiic Ltd, as applicable . It should indicate
"
ifl whethe r extension was granted or compensation was levied. Att~sted copy of
acceptance letter and completion certificate shall be enclosed of each work. In
case performance .report ) .. '
has been given by the client same shall also be
subm itted duly att~~ted .
(ii) Solvency certificate and working Capital Certificate issued by scheduled bank.
(iii) Annu al turnover certificate for last 2 years issued by Chartered Accountant along
with l"e levant pages of audited balance sheets in support thereof.
(iv) Affi davits for possession of movable & immovable properties by proprietor/partner
own ing th e immovable property along with Valuation Certificate from Regd Value r
in su pport of movable & immovable properties . In case of Limited Company, the
immova ble property is required to be in the name of the company.
In case of Limited Company, ir:e immovable property is requ ired to be in the

name of the Company.
(v) In addition ,the un-enlisted contractors shall a!so furnish affidavit on non
Judicial stamp paper in the form of hard copy declaring their turnover for last 2
(Two) years.
(vi) Sca nned copy of DO of cost of tender and earnest money.
(e) In case of rejection of technical /prequalification bid, contractor may appeal to next
higher Engineer authority i.e on email against rejection , whose
decision shall be final and binding . However contractor/bidder shall not be entitled to any
compensation whatsoever for rejection of technical/ prequalification bid.
Signature of contractor
For Accepting Officer
File No Dated _ _ __
Address of Accepting Officer

ANNEXURE 3 A - IV
APPEND IX 'A' TO NOTICE INVITI NG TENDER

(For works costing more than Rs 15 crores but tess than Rs 50 crore)
1 Name of work
2 Estimated Cost Rs (At Par Market)

3 Period of completion days
4 Cost of tender docum ents Rs in the shape of DO/Bankers cheque
from any schedule Bank in fa vour of CCE/ GE/ GE(I)/ AGE( !)
and payable at
5 Webs ite/portal address, , WWW.e[2rOCUremes.gov .in and www.mes .gov.in
6 Type of contract The tender shall be based on drawings and specifications
(IAFW-2159) and GCC (IAFW-2249) with Schedule 'A' (list of
item s of wo rk) to be priced by tenderer. The tenderers are
required to quote the ir lump sum amounts fo r prepriced parts
of Schedule 'A' and quote rates against items of other parts
of Schedule 'A'.
·· .
made.)
7 Information & Details :
(d) Bid submission start Refer critical dates
date
(b) Bid submission end I
date
(c) Date/time for opening
of Bid
8 Eligibility Criteria
(A) ForMES en listed They should satisfy the following criteria :-
contractors (a) Residual capacity requirement as in Para 8 (C) (a)
below.
(b) They should have enlistment in class "SS" and
Category _ _
(c) They should not carry adverse remarks in WLR of
competent engineer authority ..
(B) For other contracto'i' The firms not enlisted with MES shall satisfy the following
criteria :-
(a) Residual capacity requirement as in Para 8 (C) (a)
b elow.
(b) They should meet enlistment criteria of 'SS' class
MES contractors & category __ , i.e. with regard to having
satisfactorily completed requ isite value works, Annual
turnover, Solvency, working capital , immovable property/fixed
assets, T&P, Engineering establishment, no recovery
outstanding in any Govt Department, Police
verification/Passport etc. Enlistment criteria may be seen in
Para 1.4 of Section 1 of Part I of MES Manual on Contracts -
•· 2007 (Reprint 2012) as available in all MES formations .
These firms shall also submit copy of Police verification from
po lice authority of the area where the registe red office of the
firm is located I notarised copy of val id passport of
prop rietor/each partner/each Director.
(c) They should not carry adverse rem arks in WLR/or any
other similar report of any authority .
" BPa ni :\Desktop\A mn d ~~ MES C: encl snng

'J
ANNEXURE 3 A - IV

(For works costing more than Rs 15 crores but less than Rs 50 crore} contd...
(C) For All Contractors (a) Applicants' residual. capacity as worked out by
following formula shou ld be more than estlmated cost of
work:-
I
Residual capacity = (2 x A x N) - B, I
Where;
... ~
A = Maximum turnover in last 5 financial years I

N = Period of completion of contracted (Tendered) work (in
·years calculated till 2 decimal places)
"
8 = Value of balance work in all Govt. & Private works.
(b) Contractor wil l not be allowed to execute the work by

subletting or through power of attorney holder on his behalf to
a third party/another firm except sons/daughter of
proprietor/partner/Director and firm's own employees,
Director, Project Manager. This shall be subject to certain
conditions which will be prescribed in the NOT forming part of
the tender documents
--
9 Tender issuing and
Accepting Officer
10 Executinq aqencv GE/ GE(I)/ AGE(!) /PM
11 Earnesy Money Rs ... __
in favour of CCE/ GE/ GE(I)/ AGE(I)
NOTES:-
(a) The contracto r enlisted upto one* class below the eligible class may also apply/bi d.
Application/bids from one class below eligible class applicants may be considered in the
event of inadequate response/bids from the applicants of eligible class.
(* This shall be 'two' in case of works in remote and difficult stations and following additional
provision to be added:
''Application from two class t(elow eligible class applicants may also be considered in the
event of inadequate response from the applicants of eligible class and one class below
eligible class.')
(b) Contractors enlisted with MES will upload following documents (scanned copy in pdf
format) for checking eligibility:-
(i) Application for the tender on Tenderer's Letter Head. In this, the contractor
should explain with calculation details supported with documentary evidence as to how he
is qualifying for this tender in terms of conditions given in Para 8 (A)( a) above.
Tenderer/bidder to note that if they do not submit their calculation details and/ or
supporting documents correctly, Deptt will make calculation. If the firm does not qualify as a
result of Deptt calculation, then bidder only will be responsible for the same . This is
notwithstanding the fact that Deptt will check the details and calculations also in respect of
the contractors who have given the calculations.
(ii) Enlistment letter
(iii) DD toward cost of tender
(iv) Working detail of residual capacity which shall include :-
(aa) Copy of turn over certificate from CA for last 5 (Five) yea rs (FY),
notarised copy of relevant pages of balance sheet of thos e FYs showin g the
turn over (gross receipts).
in fV1LS
ANNEXU RE 3 A - IV

(For works costing more th an Rs 15 crores but less than Rs 50 crore) contd...
(ab) List of works in hand for contracts with ·Government department and
private works, completed va lue thereof and residual work to be completed
during completion period of subject work in a self-exp la natory tabular form.
This sha ll be submitted duly signed by proprietor I all partners I authorised
Director of Pvt I Public Ltd as applicable.
(ac) Affidavit on non judicial stamp paper of Rs1 00/- (minimum) in the form
of hard copy declaring their turnove r for last 5 (Five) Years and value of
contracts in hand in Government department & private and details of works
completed and residual work to be completed.
·,,
Hard copy of these documents will be submitted within __ *days of the last
date & time of opening of 'T' bid.
(* Th e number of days to be mentioned shall be as decided by the Accepting
Officers, but it shall not be less than 5 days)
(c) Contra cto rs not enlisted with MES will be required to upload the following :-
(i) App lication for the tender In this the contractor shou ld explain with
calculation details supported with documentary evidence, how he is qualifying for this
tender in terms of conditions given in Para 8 (A) (a) above .
supporting documents 'correctly, Deptt will make calculation. If the firm does not
qualify as a result of Deptt ca lculation , then bidder only will be responsible for the
same . This is notwithstanding the fact that Deptt will check the details and
calculations also in respect of the contractors who have given the calculations.
(ii) Necessary documents to prove their eligibility for enlistment in required class
& category of work, including Affidavit for no recovery outstanding . List of
documents required for enlistment in MES has been given in para 1.5 of
section 1 of Part I of MES Manual on Contracts 2007 (Reprint 2012). The work
experience shall include details of similar nature of works executed during last
five yea rs , financial year-wise in tabular form giving name of work, Accepting
Officer's deta ils , viz, Address, Telephone , Fax No , e-ma il ID etc , date of
acceptance of tender and actual date of completion. This shall be duly signed
by prop rietor / all partners I authorised Director of Pvt I Publ ic Ltd, as
app licable. It should indicate whether extension was granted or compensation
was le vied. Attested copy of acceptance letter and completion certificate shall
be enclosed of each work. In case performance report has been given by the
client same shall also be submitted duly attested.
The documents wi ll also include the following. amongst others :-
(aa) So lvency certificate and working Capital Certificate issued by scheduled

bank.
(ab) Affidavits for possession of movable & immovable properties by
proprietor/partner own ing the immovable property along with Valuation Certifi cate
from Regd Valuer in support of movable & immovable properties . In case of
Limited company, the immovable property is required to be in the name of the
company.
In case of Limited Company, the immovab le property is required to be in the

name of the Company.
(iii) Scanned copy of DO toward cost of tend er and earnest money
. (iv) Documents in support of residual capacity which shall include :-

·~
' J
ANNEXURE 3 A - IV

(For works costing more than Rs 15 crores but less than Rs 50 crore) contd ...
(aa) copy of turn over certificate from CA for last 5 (Five) years (FY),
notarised copy of relevant pages of balance sheet of those FYs showing the
turn over (gross receipts) . ,
(ab) List of works in hand for contracts with Government department&
private works , completed value thereof and residual work to be completed
'• during completion period of subject work in a self-explanatory tabular form.
This shall be submitted duly signed by proprietor I all partners I authorised
Director of Pvt /.Pup lie; ,Ltd as applicable.
(ac) AffidaVit on non judicial stamp paper of Rs100/- (minimum) in the form
of hard copy declaring their turnover for last 5 (Five) Years and value of
completed and residual work to be completed. Hard copy of these documents
will be submitted within _days of the last date & time of opening of 'T'
bid.
(d) (i) Applications/bids not accompanied by scanned copies of requisite

DO/Bankers Cheque towards cost of tender and earnest money (as applicable)
shall not be considered for validation of 'T' bid and their finance bids will not be
opened.
(ii) Tenderers/bidders to note that they should ensure that their original DDs and
earnest money (as applicable) are received within _ _ * days of bid submission end
date.
(* The number of days to be mentioned shall be as decided by the Accepting
(iii) In case of applications/bids from en listed contractors of MES, where scanned
copies of requisite DO/Bankers Cheque towards cost of tender has been uploaded
but physical copies are not received by the stipulated date, finance bids will be
opened . However non-submission of physical copies of cost of tender shall be
considered as willful negligence of the bidder with ulterior motives and such bidder
shall be banned from bidding for a period of six months commencing from the date of
opening of finance bid.
(iv) In case of applications/bids from unenlisted contractors, where scanned copies of
requisite DO/Bankers Cheque towards cost of tender has been uploaded but physical
copies are not received by the stipulated date, finance bids will not be opened. Name
of such contractors alongwith complete address shall be circulated for not opening of
their bids for a period of six months commencing from the date of opening of finance
bid.
(v) In case of applications/bids (enlisted contractor I as well as unenlisted contractor)
where scanned copies of requisite Earnest money (as applicable) were uploaded but
the same are not received in physical form within stipulated time, such bids shall not
qualify for opening of finance bid .
(e) In case of rejection of technical /prequalification bid, contractor may appeal to next
higher Engineer authority i.e on email against rejection, whose
decision shall be final and binding. However contractor/bidder shall not be entitled to any
compensation whatsoever for rejection of technical/ prequalification bid. ·
Signature of contractor
FileNo _ _ __ Dated _ _ __

BP;=mi:\D2sktop\l.\n1nd lr: !\/I[S [:endt~rwg
ANNEXURE 3 A- IV
APPEN DIX 'A' TO NOTICE INVITI NG TENDER

(For works costing more than Rs 50 crore)
1 Name of work
2 Estimated Cost Rs --------- (At Par Market)

3 Period of comp letion days
4 Cost of tender documents Rs in the shape of DO/Bankers cheque
from any schedule Bank in favour of CCE/ GE/ GE(I)/
AGE( I) and payable at
5 Webs ite/porta l address www .e[1rocuremes.gov.in and www.mes.gov.in
6 Type of contract ) The tender shall be based on drawings and specifications
(IAFW-2159) and GCC (IAFW-2249) with Schedule 'A'
(list of items of work) to be priced by te nderer. The
tenderers are required to quote their lump sum amounts
for prep riced parts of Schedule 'A' and quote rates
aga inst items of other parts of Schedule 'A' .
made)
7 Information & Details :
(e) Bid submission start date Refer critical dates
(b) Bid submission end date
(c) Date/time for opening of
bid ( Cover- 1)
8 Eligibility Criteria
(A) ForMES enlisted They shall satisfy the following :-
contractors (a) Residual capacity requirement as in Para 8 (C) (a)
below.
(b) Prequal ification criteria as in Pa ra 8 (C) (b) below.
(c) They should have enlistment in Category _ _
(d) They should not carry adverse remarks in WLR of
competent en!=)ineer authority.
(B) For other contractors The firms not enlisted with MES shall satisfy the
following :-
(a) Residual capacity requirement as in Para 8 (C ) (a)
below.
(b) Prequalification criteria as in Para 8 (C) (b) below.
" (c) They should meet enl istment criteria of 'SS' class
MES contractors & category _ _ i.e. with regard to
Annual turnover, Solvency, working capital, immova ble
property/fixed assets , T&P , Engineering establishment,
no recovery outstanding in any Govt Department, Police
verification/Passport etc. Enlistment criteria may be seen
in Para 1.4 of Section 1 of Part I of MES Manual on
Contracts - 2007 (Reprint 2012) as available in all MES
formations. These firms shall also submit copy of Police
verification from police authority of the area whe re the
registered office of the firm is located I notarised copy of
' valid passport of proprietor/each partner/each Director.
(d) They should not carry adverse remarks in WLR/or
any other simi lar report of any authority.
(C) For All Contractors (a) Applica nts' residual capacity as worked out by following
formula should be more than estimated cost of work :-
Residual capacity = (2 x A xN)-8,
Where ;
A = Maximum turnover in last 5 financial yea rs.
N = Period of completion ofcontracted (Tendered) work (i n
years calculated till 2 decimal places)
B = Value of balance work in all Govt.& Private works

ANNEXURE 3 A - IV

(For works costing more than Rs 50 crore) contd ...
(b) Pregualifieation Criteria :-

(i) Averag~ annual financial turnover during
the last 3 years, ending 31st March of the previous
financial year, should be at least _% of the
estimated cost.
(The percentage to be filled in based on period of

l completion as stipulated in section _ _ of Manual on
,· Contracts.)
(ii) Experience of having successfully

completed similar works during last 7 years ending
last day of month previous to the one in which
applications are invited should be either of the
following:-
(aa) Three similar completed works

costing not less than the amount equal to
40% of the estimated cost.
or
(ab) Two similar completed works costing

not less than the amount equal to 50% of
the estimated cost.
or
(ac) One similar completed work costing

not less than the amount equal to 80% of
the estimated cost.
(iii) For the purpose of value of completed

works, the value of previously completed works be
enhanced @ 5% per year to bring them at par with
present cost.
The similar work mentioned above shall

mean ________________________________
(c) Contractor will rot b8 allowed to execute the work by

subletting or through power of attorney holder on his
behalf to a third party/another firm except sons/daughter
of proprietor/partner/Director and firm's own employees ,
Director, Project Manager. This shall be subject to
certain conditions which will be prescribed in the NOT
forming part of the tender documents
9 Tender issuing and

Accepting Officer
10 Executing agency GE/ GE(I)/ AGE (I) I PM
11 Earnesy Money Rs in favour of CCE/ GE/ GE(I)/ AGE(I)
L-~----~----------_L________________________________ __j
BPani:\Desktop\.4.n1nd jn f'viES [tenrierlng

ANN EXURE 3 A- IV

NOTES:-
(a) Contractors enlisted with MES will upload following documents (scanned copy in pdf
format) for checking eligibility:-
(
(i) Application for the tende r on Tenderer's Letter Head. In this, the contractor
should exp lain with calcula\iOf) .details supported with documentary evidence as to
how he is qualifying for this tender in terms of conditions given in Para 8 (A)(a) and
8(A)(b) above.
supporting documents co rrectly, Deptt will make calculation . If the firm does not
qualify as a result of Deptt calculation , then bidder only will be responsib le for the
same . This is notwithstanding the fact that Deptt will check the details and
ca lcu lations also in respect of the contractors who have given the calculations .
(ii) Enlistment letter

(iii) DO toward cost of tender
(i v) Documents in support of residual capacity and PQC which shall include :-
(aa) copy of tum over certificate from CA fo r last 5 (Five) years (FY) ,
notarised copy of relevant pages of balance sheet of those FYs showing the
turn over (gross receipts).
(ab) List of works in hand for contracts with Government department &
private works, completed value thereof and residual work to be completed
during completion period of subject work in a self-explanatory tabular form.
This shall be submitted duly signed by proprietor I all partners I authorised
Director of Pvt I Public Ltd as applicable.
(ac) Copies of completion certificates in three highest valued works (after

adjusting the values as per para 8(C)(b)(iii) above) during last seven
years.Th is will be in tabular form giving name of work, Accepting Officer's
details, viz, Addtess, Telephone , Fax No, E-mail 10 etc, date of acceptance of
tender and actual date of completion . This shall be duly signed by proprietor I
all partners I authorised Director of Pvt I Public Ltd, as applicable. It should
indicate whether extension was granted or compensation was levied. Attested
copy of acceptance letter and completion certificate shall be enclosed of each
work . In case performance report has been given by the client same shall also
be submitted duly attested .
(ad) Affidavit on non judicial stamp paper of Rs 1001- (minimum) in the form
of hard copy declaring their turnover for last 5 (Five) Years and val ue of
completed and res id ual work to be completed.
Hard copy of these documents will be submitted within _ * days of the last date
& time of opening of 'T' bid .

p
,.
ANNEXURE 3 A- IV
APPENDIX 'A' TO NOTICE INV1TING TENDER

Hard copy of these documents will be submitted within _ *days of the last date & time of
opening ofT bid.
(* The number. of days to be mentioned shall be as decided by ·the Accepting

(c) (i) Applications/bids"'''ot.accompanied by scanned copies of requisite

DO/Bankers Cheque towards cost of tender and earnest money (as applicable)
shall not be considered for validation ofT bid and their finance bids will not be
opened .
(ii) Tendererslbidders to note that they should ensure that their original DDs and
earnest money (as applicable) are received within _ _ * days of bid submission end
date.
(iii) In case of applications/bids from enlisted contractors of MES, where scanned

copies of requisite DO/Bankers Cheque towards cost of tender has been uploaded
but physical copies a~e not received by the stipulated date, finance bids will be
opened . However non-submission of physical copies of cost of tender shall be
considered as willful negligence of the bidder with ulterior motives and such bidder
shall be banned from bidding for a period of six months commencing from the date of
opening of finance bid .
(iv) In case of applications/bids from unenlisted contractors, where scanned copie s of

requisite DO/Bankers Cheque towards cost of tender has been uploaded but physical
copies are not received by the stipulated date, finance bids will not be opened . Name
of such contractors alongwith complete address shall be circulated for not opening of
their bids for a period of six months commencing from the date of opening of finance
bid .
-1..
(v) In case of applications/bids (enlisted contractor as well as unenlisted contractor)

where scanned copies of requisite Earnest money (as applicable) were uploaded but
the same are not received in physical form with in stipulated time, such bids shal l not
qualify for opening of finance bid.
(d) In case of rejection of technical /prequalification bid, contractor may appeal to next
higher Engineer authority i.e on email against rejection, whose
decision shall be final and binding. However contractor/bidder shall not be entitled to any
compensation whatsoever for rejection of technical/ prequalification bid .

FileNo _ _ __ Dated _ _ __

AN NEXURE 3 A - V
Tele: _ _ _ _ Military Engineer Services
No. _ _ _ /E8 Date:-
M/S --------------------------------~--·- .:)
Name of Work:
Dear Sir,
1. Tender documents in respect of above work are uploaded on the site

www.eprocuremes .gov .i n. The tender is on single stage two cover /two stage two
cover/three cover e-tendering system. The contents of Cover I & Cover II are specified in
NOTICE OF TENDER .
2. Bids will be rece ived ' online by ACCEPT IN G OFFICER upto the date and time
mentioned in the NOTICE INVITING TENDER (NIT). No tender/bid will be received in
physical form and any tender/bid received in such manner will be treated as non bon afide
tender/bid .
3. Bid will be opened on due date a11d time fixed fo r opening in the presence of
tenderers/bidders or their authorised representatives , who have uploaded their quotation bid
and who wish to be present at the time of opening the bids.
4. Your attention is also drawn to instruction on filling and submission of tender

attached herewith. You may forv.;ard you r points on tender documents and/or depute your
techn ical representative for discussion on tender/ drawings and to clarify doubts , if any , on
or before . Yolf'{1re requested not to w rite piece meal points and forward your
points duly conso li dated before due date viz -----'-
5. Unenlisted contractors are required to submit the scanned copies (in pdf fil e) of
documents required as per elig ibility criteria mentioned in instructions for filling the tender
documents and Appendix 'A' to NIT alongwith EARNEST MONEY DEPOSIT (EMD) and
tender fee on e-procurement portal and submit the physical documents in the office of
within time limit specified in NIT. Inadequacy/deficiency of
documents shall make the bid liable fo r rejection resulting in disqualification for open ing of
finance bid.
6. ' (a) Contractor having not execute:j standing security bond and standing security
deposit in any MES formation shall upload scanned copy of EARNEST MONEY DEPOSIT
(EMD) mentioned in Notice of Tender and shall ensure receipt of hard copy of EMD in the
office of tender issuing authority before date & time fi xed for this purpose . In case of failu re
to abide by any of these two requirements , the finance bid will not be opened.
(b) Contractor having not executed standing security bond and standing se curi ty
deposit in any MES formation wculd be required to deposit individual security depo sit on
acceptance of tender which wi ll be calculated with reference to the tendered cost as per
scales laid down by MES for calculation of "EARNEST MONEY" enhanced by 25% subject
to maximum of Rs. 1875000/- (Rupees Eighteen Lakhs seventy five thousand Only).
' J
f,
ANNEXURE 3 A- V (Contd/-}
7; Enlisted contractors of MES sl1all submit the scanned copies (pdf file) of enlistment
letter, ten der fee and such other documents as mentioned in Appx A ' to NIT on e-
procu rement portal and submit physical documents in the office of _ __ _ __ _
before date & time fixed for th is purpose .
8. The contractor must ensure that the tender/bid on the proper fo rm is uplpad ed in tim e
as the Accepting Officer will take no cognizance of any quotations/offer received in any oth er
electronic or physical form like el)lail/fax/by hand/ through post from tenderer/bidder even if
they are received in time.
9. In view of delays due to system failure or other commun ication related fai lures , it is
suggested that the tender/bid be uploaded, if necessary, sufficiently in advance of the last
due date and time fixed .
10. General Conditions of Contracts (IAFW-2249) (1989 Print) and errata an d

amendments thereto , Schedule of minimum fair wages and MES SSR (Part -1 and Part -II)
are not enclosed with these documents. These are available for perusal in the Office of GE
concerned and this office.
11 . ANY TENDERER , WHICH PROPOSES ALTERATIONS TO ANY OF THE CO NDITION,

SPECIFICATIONS LAID DOWN IN TI-lE TENDER DOCUMENTS OR ANY NEW
CONDITION , WHATSOEVER, IS LIABLE TO BE REJECTED.
12. (a) Contractor having not executed standing security bond and standin g security
deposit in any MES formation shall upload scanned copy of EARNEST MONEY DEPOSIT
(EMD) mentioned in Notice of Tender and shall ensure receipt of hard copy of EMD in the
office of tender issuing authority before date & time fi xed for this purpose. In case of fail ure
to abide by any of these two requirements , the finance bid will not be opened.
(b) Contractor having not executed standing se curity bond an d standin g security
deposit in any MES formation would be require d to deposit individual security deposit on
acceptance of tender which will be. calculated with reference to the tendered cost as per
scales laid down by MES for ca lculation of "EARNEST MONEY" enhanced by 25 % subject
to maximum of Rs. 1875000/- (Rupees Eighteen Lakhs seventy five thousand Only)-.
Yours faithfully,
Encls :- (As above) For Accepting Office r
ANNEXURE 3 A- VI {Contd/-)
5. GENERAL INSTRUCTIONS FOR COMPLIANCE
5.1 The bids received only in the electronic form will be' considered. All bids shall be
sub mitted on 'eprocuremes.gov.in' portal. Documents should be scanned and forwarded in
'pdf' form and 'xis' form as ind icated.
5.2 Bids shall be uploaded on 'ep rocuremes .gov.in' portal on or before the bid closing
date mentioned in the tender. No te nder/bid in any other electronic or physical form like
email I fax I by hand/ through post will be considered.
5.3. Bid should be DIGITALLY signed using valid DSC . All pages of tender documents,
corrections/ alterations shall be signed/initialled by the lowest bidder after acceptance.
54 Drawings , if issued in ~hysical form , must be returned duly initialled by the
tenderer/b idd er in separate envelope indicating his name and address.
5.5 The tender shall be signed, dated and witnessed at all places provided for in the
documents after acceptance. All corrections shall be initialled. The Contractor shall initial
every page of tenderand shall sign all drawings forming part of the tender. Any tender/bid,
which proposes alterations to any of the cond itions whatsoever, is liab le to be rejected.
5.6 In the technical bid , a scanned copy of Power of Attorney in favour of the person
uploading the bid using his/her DSC shall be uploaded. In case the digital signatory himself
is the sole proprietor, scanned copy of an affidavit on stamp paper of appropriate value to
this effect stating that he has authority to bind the firm in all matters pertaining to contract
including the Arbitration Clause , shall be attached in 'pdf' form. In case of partnership
concern or a limited company, dig ital signatory of the bid/tender shall ensure that he is
competent to bind the contractor (through partners hip deed, general power of attorney or
Memorandum and Artic les of Association of the Company) in all the matters pertain ing to
the contracts with Union of Ind ia includ in g arbitration clause. A scanned copy of the
documents confirming of such authority shall be attached with the tender/bid in 'pdf' form , if
not submitted earlier. The person uploading the bid on behalf of another partner(s) or on
behalf of a firm or company using his DSC shal l upload with the tender/bid a scanned copy
(in 'pdf' form) of Power of Attorney duly executed in his favour by such other or al l of the
Partner(s) or in accordance with constitution of the company in case of company , stating
that he has authority to bind such other person of the firm or the Company, as the case may
be, in all matters pertaining to the contract including the Arbitration Clause.
'·
5.7 Even in case of Firms or Companies which have already given Power of Attorney to
an individual authorizing him to sign tender in pursuance of which bids are being uploaded
by such person as a routine, fresh Power of Attorney duly executed in his favour stating
specifically that the said person has authority to bind such partners of the Firm , or the
Company as the case may be, including the condition relating to Arbitration Clause, should
be uploaded in 'pdf' form with the tender/bid; unless such 3uthority has already been given
to him by the Firm or the Company. It sha ll be ensured that power of attorney shall be
executed in accordance with the constitution of the co mpan y as laid down in its
Memorandum & Article of Association.
5.8 · Hard copies of all above documents shou ld be sent by the contractor to the Tender
issuing authority well in advance to be received before the date & time fi xed for' the same.
5.9 Bid (Cover 1 & 2) shall be uploaded online we ll in time.
5.10 The contractor shall employ Indian Nationals after verifying their antecedents and
loyalty. Attention is also drawn to special condition 3 referred hereinafter and also cond itions
24 & 25 of IAFW 2249 (General conditions of contract).
5.11 Tenderers/bidders who uploaded their priced tenders/bids and are desirous of being
present at the time of opening of the te nde~~'bids , may do so at the appointed time .
"1;,J,
r,
ANNEXURE 3 A - VI
INSTRUCTIONS ON FILLING AND SUBMISSION OF TENDER
1. EARNEST MONEY DEPOSIT (EMD)
Contractor(s) who are not enl isted with MES/who are enlisted but have not executed the
Standing Security Bond shall submit Earnest Money Deposit as detailed in Notice of Tender
in one of the following forms, alongwith their tender/bid :-
)
(a) Deposit at Call" Receipt from a Scheduled Ban k in favour of Garrison

Engineer/CCE concerned
(b) Receipted Treasury Challan , the amount being credited to the Revenue Deposit
of Garrison Engineer I CCE.
It is advisable that Earnest Money is deposited in the form of depos it call receipt from
an approved Schedu le Bank for easy refund . In case the tenderer/bidder wants to lodg e
'EARNEST MONEY DEPOSIT' in any other form allowed by MES , a confirmation about its
acceptability will be obtained from the Accepting Officer well in advance of the bid
submission end date and time. Earnest Money Deposit shall be subm'itted in the name of
concerned GE.
NOTES : Earnest Money\ Deposit (EMD) in the form of cheque/Bank Guarantee etc will
not be accepted. NON-SUBMISSION OF EARNEST MONEY DEPOSIT (EMD) ( scanned
copy alongwith Technical Bid & hard copy before the date & time fixed for opening of BOO)
WILL RENDER THE BID DISQUALIFIED FOR OPENING OF COVER II (FINANC E BI D).
2. SECURITY DEPOSIT
In case the tender/bid submitted by such contr~ctor who is not enlisted with MES is
accepted, the contracto r will be required to lodge with the Controller of Defence Accounts
INDIVIDUAL SECURITY DEPOSIT ca lculated with reference to TENDERED COST as
. notified by the Accepting Officer subject to a maximum of Rs. 18,75,000/-. The amount is
required to be lodged within 30(Thirty) days of the receipt by the contractor of notification of
acceptance of tender/b id, fai ling which the sum shall be recovered from the 1st RAR
payment or from the Fina l b ill (See Cond ition 22 of GCC (IAFW-2249)).
3. CONTRACTORS ENLISTED WITH CHIEF ENGINEER ------------- COMMAND AND

WHO HAVE EXECUTED STANDING SECURITY BOND AND DEPOSITED STANDING
SECURITY DEPOSIT BUT OF LOWER CLASS
In case the tender/b id is accepted, the amount of Additional Security Deposit will be
as notified by the Accepting Officer. The amount will be the difference between the
"I ndividual Security Deposit" ca lculated with reference to the "TENDERED COST' and
'Standing Security Depos it' lodged. The amount is required to be lodged within 30(Thirty)
days of the receipt by the contracto r of notification of acceptance of tender/bid , failing which
the sum shall be recovered from the 1st RAR payment or from the Final bill (Refer Condition
22 of GCC (IAFW-2249)).
4. CONTRACTORS ENLISTED !N !V':..ES FORMATIONS OTHER THAN CE

COMMAND
Contractors whose names are on the approved list of any MES formation i.e. other than CE
_ _ Command and who have deposited Standing Security and have executed Standing
Security Bond may tender/b id without depositing Earnest Money with the bid and if the
Accepting Officer decides to accept the tender/bid, such tenderers will be required to lodge
Security Deposit as notified by the Accepting Officer. The amount is required to be lodged
within 30(Thirty) days of the receipt by the contractor of notification of acceptance of
tender/bid, failing which the sum sha ll be recovered from the 1st RAR payment or from the
Final bill.
ANN EXURE 3 A - VI ( Contd/~)
5.12 The tenderer/bidder shall quote his rate on the BOO file only. No alteration to the
format will be accepted , else the bid wi ll be disqualified and summarily rejected.
5.13 In case the tenderer/bidder has to revise I modify the rates quoted in the BOO (excel
sheet) he can do so only in the BOO , throu9h eprocurem,es gov.in site only before the bid
closing time and date.
6. REVOKATION/REVIS ION OF OFFER UPWARD/ OFFERING VOLU NTARY

REDUCTION, AFTER OPENING OF FINANCIAL BIDS BY LOWEST BIDDER
)
In th e event of lowest tenderer/bidder revoking his offer or revising his rates upward/ offering
vo luntary reduction , after closing of bid submission date & time , his offer wil l be treated as
revoked and the Earnest Money deposited by him shall be forfei ted. In case of MES en listed
Contractors , the amount equal to the Earnest Money stipulated in the Notice of tende r, shall
be notified to th e tenderer/bidder for depositing the amount through MRO. Bids of such
Contractors/bidders shall not be opened till the aforesaid amount equal to the earnest
money is deposited by him in Govt Treasury. In add ition , bids of such tenderer/bidder and
his related firm shall not be opened in seco nd call or subsequent cal ls. Reduction offered by
the tenderer/bidder on the freak high rates referred for review shall not be treated as
voluntary reduction.
7. C PM (Critical Path Method)

\
7.1 The project planning for work covered in the scope of tender is based on CPM .
7.2 The tenderer/bidder is expected to be fu lly co nversan t with the CPM techniq ue and
employ technical staff who can use the technique in sufficient details . Sufficient books and
other literature on the subject are widely available in th e market wh ich the tenderer,/bidder
may make use of.
7.3 The tenderer's/bidder's attention is drawn to special condition of the tender regarding
preparation of the detailed netvvo rk analysis and time schedu le for the work and his liability
for employing sufficient reS{?urces to adhere to this schedule. Any inability on the part of the
te nderer/bidder in using the technique will be taken as his technical inefficiency and will
affect his class of enlistment and future prospect/i nvitation to tenders for future works .
74 Department may issue amendments/errata in form of CORRIGENDUM to tender

/revised BOQ to the tender documents. The tende rer/bidder is requested to read the tender
documents in conjunction with all the errata/ amendments/corrigendum, if any, issued by the
department.
8. These instructions shall form part of the contract documents .
Signature of Contractor For Accepting Officer
-=·'

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MILITARY ENGINEER SERVICES

IANUAL ON CONTRACTS, 2007

Incorporating Amendments Upto and Including 85.

5.1 to 5.12 General 61

;~~~~~~!~,, :f~-f~11r~i~;b~~~~~i~~-fi~~~l\~~-"' ;''~9'115

8.1 Special Conditions ~~--- · 79

12.1 General 104

l'fcat:$ouree,. Fak~g..es, liabO\u<lomill!i!.ete•;. •> ·. •·• .t:f:5.,..t6:&.

22.1 Introduction 165

28.6 Guidelines for appointment of arbitrators by CE Zone (appointing authority) in

~ct.tcm IJl1pol'tarit Court Jndg~ments 216+228

Appendix 1.1 Application for Enrolment as Contractor 237

. i~~~nd~l~.~> ~~:~::::ri~o: i::::::c::::t:::::n::::o:::o:: ::::~:a:;:f ::~ 338

AppenJ~ f~.6 .~~:~~~ f:~:::oc~:fs~e!~\~~~:l~~:~~ctor by GE for suspending work

~fut~tt~:L~.$ •~:::e~:~:trer to the Contractor to be issued by GE regarding his contin-

·i\pP4en~ik~ ~~~e~;~:~~~~~:~!~ifi~:;~::~: ~~~:~ ~~ !e GE to the Contractor

··A;perid~!~j~i; ·~~:~I:~~~:~~I~0:~l~~t!::~~~~:::;:b:;::::~~:r ::ec::::~t::nA:: 346

ApPe~~i~.~~ ··~~:~a~~e;!:!~~~~:h:~~~:~:~~ ~: ::o~::~:a:~rc:;::t~~~~!~~ :r Works

defects during Defects Liability Period 351

ENLISTMENT OF CONTRACTORS, STANDING SECURITY

4 PART-I : PRE-CONTRACT S'I'JU

(b) Electrical Engineering Works

(v) Maintenance and Operation of ElM Installation

1.3 Classificatlonof Contti\~td('

1 011 23009151 Dte of Contract Management

CLARIFICATION : CATEGORY OF ENLISTMENT

2 After· due considel·ation on this issue taken up by MES BAI recently; it is

HI ') Builders Association of India (Regd)

I D 50 Lakhs 1. 00 Lakh CE Zone/Project CE Command!ADG (OF & DRDO)

1.4 Criteria for Fresh El1l1sful~nt/Upgi~«tli:l_

(a) Three graduate Engineers 120.00

.-. .- < ··•. ·r·•.•-• ;;t;.;;.;.~~ •c;;; r r. c.. .: ?i ./

11. Concrete Pumos 3 2 2 2 1 - -

12. Concrete mobile weilzh batchers 3 2 2 2 1 - -

114. Excavators [Power 2 2 1 1

\3. Fully automatic concrete' 'plant 1 1 1 '

I5. Continuous type hot mix plant 1 1 1 - - ~ ~ •

'(a) On shore piles with devices 2 2 2

1. Steel/Aluminum ladders 1.5 m. to 8m. (Nos) 10 8 6 4 3 2 2

13. Hydraulically operated & hand operated crimping 3 2 2 2 1 1

114. Earth tester 3 2 2 2 1 1

i, (c) Verification of character and antecedents of Proprietors/ Partners/Directors shall be done

1.5 Documents required to be submitted by the Contract«Jl' tol'~ij~j~~~ti!i,Jtl

PART-I: PRE-CONTRACT STAGE 11

"Appendix 1.4 dilly <ign<d by Contractm ~d

_qo Facility for working foroiliel'se.rvi~~s0~t~~~-,.~z

1.11 Transfer of Enlistment

1.14 Renewator En~$~~~~;

1.16 Suspension, Down-grading,Refuo'lr~I. et~:!IJ{pt}"'titiqtQ'I

PART-I : PRE-CONTRACT STAGE 25

l.3l.:!::,~~~=~ bo •pproved by <hoY~~:;"

EARNEST MONEY AND SECURITY DEPOSIT,

_2.1_Eamest Money and IniiMduaJS~~~~ij\;

2.3 RecoveryoUndividuaJ·security Depo$it(A~~~~nat~!&uftij~,i~~

Acceptance by Government Departments

2.11 Procedure tor Refund of Securtf.ie~ for!!ilii~\t~o~~~~~~

ISSUE, RECEIPT AND ACCEPTANCE OF TENDERS

PART-I : PRE-CONTRACT STAGE 37

3.5.3 Selection of Contractors without Tender Selection Committee : Selection of ·.I

(c) O.T.M. Accommodation 6@£ 5@£ 4@£

@ One more week for Tender with Extensive External Service

48 PART-I: PRE-CONTRACT STAGE

3.19 Award of Works to Coittractot~s 'v-lto M.v~cl~~~~.

;~~~~~~!~,, :f~-f~11r~i~;b~~~i-fi~l\-"' ;''~9'115

AppenJ~ f~.6 .:~ f:~:::oc~:fs~e!~\~:l:~~ctor by GE for suspending work

··A;perid~!~j~i; ·~~:~I:~:I~0:~lt!:::::;:b:;:::::r ::ec::::~t::nA:: 346

ApPe~~i~. ··:~ae;!:!:h:~:~:~~ ~: ::o~::~:a:~rc:;::t~~! :r Works