ACS 12 - GCC for Works

                                       ACS 12 of GCC for Works

Authority and applicability

Railway Board letter No. 2022/CE-I/CT/GCC-2022/POLICY (3389822), dated 12 August 2026. Applicable prospectively to work contracts of Indian Railways. Click for Railway Board Letter

What is existing?  |  What is revised?

S. No.	GCC Para	What is existing?	What is revised?
1	64(3)(a)	The Arbitral Tribunal had three arbitrators. The General Manager/Additional General Manager appointed two: one Railway nominee and one from the contractor's nominees. The contractor suggested a nominee from the Railway or Indian Council of Arbitration panel within 30 days.	Each party now gives two names in preference order: one Primary and one Standby. The two Primary nominees act on the Tribunal. A Standby nominee steps in automatically only when that party's Primary nominee withdraws or cannot act. The contractor submits two names within 30 days; the General Manager/Additional General Manager approves Railway's Primary and Standby nominees.
2	64(3)(a)(i)	For a Railway-panel nominee, Railway sent at least four names. The contractor suggested at least two names, and the General Manager/Additional General Manager appointed at least one of them.	Railway must send the complete panel of retired Railway officers within 30 days. The contractor selects exactly two names - Primary and Standby - within 30 days. The panel remains free of cost.
3	64(3)(a)(ii)	For the Indian Council of Arbitration panel, the contractor sent at least two names and the General Manager/Additional General Manager appointed at least one. The older webpage link pointed to an engineers' PDF.	The contractor provides exactly two names - Primary and Standby - within 30 days. They may choose any Indian Council of Arbitration panel arbitrator having construction-contract experience. The panel webpage is updated to https://icaindia.co.in/arbitrators. Other listed documents and fees remain broadly unchanged.
4	64(3)(b)	The two selected arbitrators chose the Presiding Arbitrator within 30 days of their appointment. The General Manager/Additional General Manager completed appointment of the Tribunal within 30 days after receiving all three names.	After both parties nominate, the General Manager/Additional General Manager issues a 'Notice of Nomination of Two Arbitrators' in Annexure XVII, including Standby details. The two Primary arbitrators choose the Presiding Arbitrator within 30 days of that notice. The General Manager/Additional General Manager then issues the Tribunal appointment notice in Annexure XVIII within 15 days of receiving all three names.
5	64(3)(c)(i)	If an arbitrator refused, withdrew, vacated office, could not act, died, or caused undue delay, the General Manager/Additional General Manager appointed a replacement in the same manner as the earlier appointment.	The concerned Standby arbitrator is automatically nominated when the Primary arbitrator refuses, withdraws, vacates office, cannot or will not act, or dies. The Presiding Arbitrator must record the substitution and notify both parties within 15 days. The reconstituted Tribunal may continue from the earlier stage.
6	64(3)(c)(iii)	Detailed eligibility conditions were written in the General Conditions of Contract itself: retired Railway officer not below Selection Administrative Grade, one year after retirement; below 70 years; and specified vigilance/penalty conditions.	The age and retirement conditions remain. Other qualifications are now linked to Paragraph 106 of the Indian Railways Vigilance Manual, as amended from time to time. The safeguard against appointing a person who dealt with or expressed views on the dispute continues.
7	64(6)	Railway Board fee rates applied when all three arbitrators came from the Railway panel. If any arbitrator came from the Indian Council of Arbitration panel, Indian Council of Arbitration rates applied.	Railway Board rates now apply to arbitrators whether selected from the Railway panel or the Indian Council of Arbitration panel. The fee is shared equally by both parties, subject to signing the agreement in Annexure XV.
8	Part II	Annexures XVII and XVIII did not exist.	Two new formats are inserted: Annexure XVII - Notice of Nomination of Two Arbitrators; and Annexure XVIII - Notice of Nomination/formation of the Arbitral Tribunal.
9	42(2)(iii)(d)	For a minor-value item (original agreement value below 1% of total original contract value): up to 100% quantity at 100% of tender rate; above 100% to 200% at 98%; beyond 200% in exceptional unavoidable cases at 96%.	The definition and overall 100% variation limit remain. Payment slabs shift upward: up to 200% quantity at 100% of tender rate; above 200% to 300% at 98%; beyond 300% only in exceptional unavoidable cases at 96%.
10	7(a)(i)	The subcontracting limit was 40%; at least 60% had to be executed directly. In calculating subcontract value, the text referred to 'Clause 3.2.1'. Procurement of materials, hiring equipment, or engaging labour was not subcontracting.	The substantive limits and exclusions remain unchanged. The cross-reference is corrected from 'Clause 3.2.1' to 'this Clause'.

GCC for Works 2022 April - Correction Slip - ACS 11 of March, 2026

 

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

---