Railway Accounts Department Examinations

Sunday, April 15, 2018

Differences between Variation & Vitiation


Differences between Variation & Vitiation


Variation of quantities

v  Detailed instructions regarding variation of quantities are available in Clause No.42(4) of GCC – General Conditions of Contracts

v  Variation of quantities  - Increases

Variation
Rates
Approval
Concurrence
Remarks
Individual items of the contract
100% to 125%
Same rate
No
No
126% to 140 %
98 % of the rate
S.A.G Officer & above
No
If unavoidable, considering the floating of fresh tenders.  If not practicable, go for reducing rates with the existing agreement.
141 % to 150 %
96% of the rate
Beyond 150 %
96% of the rate
Associate finance concurrence required
Overall Agreement value
Beyond 150 %
General Manager
Personal concurrence of FA&CAO/FA&CAO(C)
Through fresh tenders or negotiating with the existing tenderer

v  Variation of quantities – decreases
Variation
Rates
Approval
Concurrence
Remarks
Individual items of the contract
100% to 75 %
Same rate
Contract signing authority
No
75 % and below
Same rate
S.A.G Officer & above
Associate finance concurrence required
1.Obtain “No claim certificate” from the contractor.
2.Furnish detailed reasons for such decrease
3.Certified that the work proposed to be reduced will not be required in the same work.
Beyond 150 %
96% of the rate
Associate finance concurrence required
Overall Agreement value
Beyond 150 %
General Manager
Personal concurrence of FA&CAO/FA&CAO(C)
Through fresh tenders or negotiating with the existing tenderer

v  Foundation Items – No such quantity variation.

v  SOR items – limit of 25 % apply to the value of SOR schedule as a whole and not on individual SOR items.

v  But in case of NS items, the limit of 25% would apply on the individual items irrespective of the manner of quoting the rate (single percentage rate or individual item rate)


v  For the tenders accepted at Zonal Railways level, variations in the quantities will be approved by the authority in whose powers revised value of the agreement lies.

v  For tenders accepted by General Manager, variations up to 125% of the original agreement value may be accepted by General Manager.

v  For tenders accepted by Board Members and Railway Ministers, variations up to 110% of the original agreement value may be accepted by General Manager.



Vitiation

ü  Meaning of Vitiation is invalid or legally defective.

ü  In Railways, Vitiation is change in inter se of contractors due to variation of quantities in the work during the course of execution.

ü  The aspect of vitiation of tender with respect to variation in quantities should be checked and avoided.


ü  Example of Vitiation:


Tabulation of Tenderers of the Work

A
B
C
Item
Quantity
Rate
Total
%
 total value
 %
 Total value
%
 Total Value
X
100
1000
100000
2
102000
1
101000
6
106000
Y
200
50
10000
5
10500
10
11000
5
10500
Z
300
20
6000
10
6600
20
7200
5
6300
Grand total
119100
119200
122800
L 1
L 2
L 3


                Suppose, during the course of execution of above work, the quantity of Item X may be increased from
              100 to 125.  Then we have to check, whether any vitiation is occurred or not.

A
B
C
Item
Quantity
Rate
Total
%
 total value
 %
 Total value
%
 Total Value
X
125
1000
125000
2
127500
1
126250
6
132500
Y
200
50
10000
5
10500
10
11000
5
10500
Z
300
20
6000
10
6600
20
7200
5
6300
Grand total
144600
144450
149300
L 2
L 1
L 3

ü  Due to change in the quantity of X item, the inter se of Contractors has changed and L1 (at the time of awarding contract) is now become L 2 and vice versa.  This is called Vitiation of the Agreement.

ü  Tenderer should be advised to quote a common percentage below/above for SSR items as well as for NS items. Such a common percentage of rates will facilitate quicker evaluation of tender and its finalization. Besides, the possibility of vitiation of tender as a result of variations in quantities of different items will also be eliminated.

ü  In case of vitiation of the tender (both for increase as well as decrease of value of contract agreement), sanction of the competent authority as per single tender should be obtained.


&&&&&&&&




No comments:

Post a Comment

Note: Only a member of this blog may post a comment.