Click for ACS 11 to GCC for Works 2022 April
ACS No. 11 to the Indian Railways Standard General Conditions of Contract (GCC), April-2022, issued by Railway Board on 13-03-2026 and applicable prospectively to Works Contracts of Indian Railways.
Below is the item-wise explanation, clearly indicating what existed earlier and what is newly modified.
1. Bid Security (Para 5(1)(a) – Part-I of GCC-2022)
Existing Provision
Earlier, Bid Security depended on the value of the work. If the estimated cost of work was up to ₹1 crore, the bidder had to submit 2% of the estimated cost as Bid Security. For works above ₹1 crore, the Bid Security was calculated as ₹2 lakh plus 0.5% of the amount exceeding ₹1 crore, subject to a maximum limit of ₹1 crore.
Modified Provision
The revised rule simplifies the structure. For all works, irrespective of value, Bid Security will be 2% of the estimated cost of the work. The complicated formula linked to the ₹1 crore threshold has been removed.
Other Provisions (unchanged but reiterated)
Bid Security must be rounded off to the nearest ₹100.
Start-ups recognised by DIPP (Department for Promotion of Industry and Internal Trade) are exempt from Bid Security.
Labour Cooperative Societies need to submit only 50% of the Bid Security.
2. Sub-contracting Limit (Para 7(a)(i) – Part-II of GCC-2022)
Existing Provision
Earlier, the rule stated that the total value of work assigned to sub-contractors should not exceed 50% of the total contract value.
Modified Provision
The rule is now made stricter and more structured.
Sub-contracting is limited to a maximum of 40% of the contract price.
The contractor must execute at least 60% of the contract value directly under its own supervision and personnel.
Additionally, the revised provision clarifies that procurement of materials, hire of equipment, or engagement of labour by the contractor will not be treated as sub-contracting.
3. Performance Guarantee (Para 16(4) – Part-II of GCC-2022)
Existing Provision
Earlier, the successful bidder had to submit Performance Guarantee equal to 5% of the original contract value. One of the forms permitted was an Insurance Surety Bond, but this option was allowed only when the Date of Completion (DOC) was within 36 months. If the completion period exceeded 36 months, another form of security had to be submitted.
Modified Provision
The revised rule retains 5% Performance Guarantee, but adds important clarifications:
Additional Performance Guarantee may also be required as per clause 16(4)(h).
If the Date of Completion is extended, the contractor must submit extended Insurance Surety Bond / fresh Insurance Surety Bond / fresh Performance Security before expiry of the existing bond.
Thus, the emphasis is now on continuity and validity of security during extensions of contract period.
4. New Clause – Additional Performance Security for Abnormally Low Bids (Para 16(4)(h))
Earlier Position
There was no explicit clause dealing with additional security when a bidder quoted unusually low rates.
New Provision
A new rule has been introduced.
If a bid is accepted at rates below the advertised tender value, the bidder must submit Additional Performance Guarantee (APG).
Structure of APG:
Bid quoted between 0% to 5% below advertised value → No additional security
Bid quoted more than 5% below advertised value → Additional Performance Guarantee of 5%
This provision is intended to discourage abnormally low bids and protect project execution risk.
5. Bid Capacity Eligibility (Annexure VI)
Existing Provision
Earlier, this rule applied only to tenders with advertised value above ₹20 crore. In such cases, bidders were required to demonstrate available bid capacity equal to or greater than the bid value.
Modified Provision
The threshold has been reduced from ₹20 crore to ₹10 crore.
Now, for tenders above ₹10 crore, bidders must prove available bid capacity equal to or greater than the tender value.
This change expands the financial capacity check to a larger number of works contracts.
6. Illegal Gratification / Ethical Practices (Para 18(1))
Existing Provision
Earlier, the clause simply stated that if the contractor offered bribes, commissions, gifts, or undue advantage to Railway officials, the contract could be rescinded and losses recovered.
Modified Provision
The rule has been expanded into a detailed “Code of Integrity in Procurement” covering several prohibited practices. These include:
Corrupt Practice – offering or accepting bribes or rewards.
Fraudulent Practice – false information or misrepresentation in tendering.
Anti-competitive Practice – bid rigging, cartelization, or collusion.
Coercive Practice – threats or pressure affecting procurement decisions.
Conflict of Interest – relationships affecting impartial decision-making.
Undue Advantage – misuse of confidential information.
Obstructive Practice – interfering with investigation or audit.
This significantly strengthens procurement ethics and transparency provisions.
7. Punitive Provisions for Violation of Code of Integrity (Para 18(2))
Existing Provision
Previously, the rule mainly stated that if the contractor had monetary dealings with Railway employees, the Railway could cancel the contract and recover losses.
Modified Provision
The revised rule introduces detailed punitive measures if integrity violations are detected.
Possible actions include:
Forfeiture of Bid Security
Cancellation of contract
Recovery of payments including advances with interest
Debarment or banning from future tenders for at least one year
Reference to Competition Commission of India in anti-competitive cases
Initiation of disciplinary or criminal proceedings
This converts the earlier clause into a comprehensive penalty framework for procurement misconduct.
✅ In summary, the Correction Slip mainly introduces:
Simplified Bid Security rule (2% for all works)
Stricter limits on sub-contracting (40%)
Provision for Additional Performance Security for low bids
Lower threshold for bid capacity check (₹10 crore)
Detailed integrity and anti-corruption provisions with penalties
