Railway Accounts Department Examinations

Showing posts with label GCC. Show all posts
Showing posts with label GCC. Show all posts

Wednesday, April 29, 2020

Order of Precedence of Documents


Order of Precedence of Documents – GCC for Works, 2019

Source: 1.01 of Part I of  GCC 2019

·         Applicable for: Works Tenders/Contracts as per GCC for Works, 2019

·        Why: Any difference/ contradiction/  discrepancy  -  with regard to conditions of tender/contract, specifications, drawings, bill of quantities etc., forming part of the tender/contract -  the following documents shall be the order of precedence

Order of Precedence of Documents - easy to remember – L S S T D G U I B

SN
Order of Precedence of Documents
1
Letter of Award / Acceptance
2
Schedule of Items, Rates & Quantities
3
Special Conditions of Contract
4
Technical specifications (as given in Tender documents)
5
Drawings
6
GCC – Standard General Conditions of Contracts, 2019
7
Unified Standard Specifications (works & materials) 2010 (of Indian Railways
8
IR Specifications / Guidelines
9
BIS codes (Bureau of Indian Standards)

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Tuesday, April 28, 2020

Shramik Kalyan

Indian Railway Shramik Kalyan Portal

Glimpse of Website as on 28.04.2020

 

ü  New initiative

ü  An application has been developed & hosted on IR website managedby CRIS

ü  Object: To comply the various labour laws as per GCC 2019 by the Contractors in Indian Railways.

ü  Contractors shall register his firm/company in the Website and upload the requisite details of Labour & their payments  - within 15 days of LOA (Letter of Award/Acceptance)

ü  Complied by Railway Engineer - within 7 days after receiving such notice from Contractor.

ü  Mandatory requirement - for processing payments of On Account Bills/final Bill/release of SD or PG.

ü  Certificate by the Contactor, that he is uploading & updating the necessary details in the portal.

****

 

 


Sunday, March 22, 2020

PG - Performance Guarantee calculation -If the Tenderer offered lower than the Tender Value:


PG - Performance Guarantee calculation   -If the Tenderer offered lower than the Tender Value:

excerpt of Para 16 (4) (h) of Revised GCC for Works-2019

 "The renderer who has offered lower total cost as compared to tender value by more than 10 %, shall be required to submit additional Performance Guarantee of value equal to percentage of tender value by which offer is lower than 10%."

Object of the Para 16 (4) (h) of Revised GCC for Works-2019 is to discourage the Contractors to quote the unreasonable rates and incomplete or abandon the work after awarding the same, because of non viable/non feasible rates.

The phrasing of the above Para is gave ample room for confusion among the Railway Executives in order to arrive the calculation of PG. So, with the guidance of Shri Srinivas Malladi, the learned faculty at CTARA & other CTIs  who is presently working as Director/Vigilance/Railway Board, the following examples are presented herewith. I express my profound thanks to Shri Srinivas Malladi for the clarification.

Example A:

Tender value is 1 Lakh.  Tenderer offered rate is 70 thousands only. So calculation of PG is as follows:


PG Rate on Contract/Tender Value
Calculation
PG Amount
Original PG
5% of Contract Value Rs. 70,000
5/100x70000
3500
Additional PG
20 % of Tender Value Rs. 1,00,000
(percentage of tender value by which offer
 is lower than 10% i.e., 90% minus 70%)
20/100x100000
20000
Total PG


23500

That means PG Rs. 23,500 on Contract value of Rs. 70,000 comes to 33.57 % instead of 5% for quoting the rate 20 % lower than 10% of Tender value.

Example B:

Unusual possibility of quoting 55% lesser than Tender Value.  If happened, this is the scenario of PG calculation.

Tender value is 1 Lakh.  Tenderer offered rate is 45 thousands only. So calculation of PG is as follows:


PG Rate on Contract/Tender Value
Calculation
PG Amount
Original PG
5% of Contract Value 45,000
5/100x45000
2250
Additional PG
45 % of Tender Value 1,00,000
(percentage of tender value by which offer
 is lower than 10% i.e., 90% minus 45%)
45/100x100000
45000
Total PG


47250

That means PG Rs. 47,250  on Contract value of Rs. 45,000 comes to 105 % instead of 5% for quoting the rate 45 % lower than 10% of Tender value.

Note:

If the Lowest quote is Rs. 90 thousand and above against Tender Value of Rs. One Lakh, the PG is just 5 % of Contract Value only.
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Monday, November 4, 2019

New Standard GCC-General Conditions of Contract for works- November 2018




Indian Railways Standard GCC for works- November 2018 

 For download - Click below

                                  GCC - PDF


Note: Please download and take a print (hard copy)


Very important document for General Expenditure Optional paper as well as GRP paper for Appendix3 IREM exam and for LDCE 

The following important questions may come from GCC

SN
Important Question
Page Number in GCC
1
EMD - Earnest Money Deposit
4
2
Eligibility Criteria
12
3
Joint Venture (Jv) In Works Tenders -
Latest concept
16
4
Tenderer’s Credentials (Bid Capacity)
31
5
SD - Security Deposit
38
6
PG - Performance Guarantee
39
7
Force Majeure clause
40
8
Extension of Time in Contracts
41
9
Variations in extent of contract
53
10
Measurements
55
11
PVC - Price Variation Clause
58
12
Determination Of Contract
74
13
Arbitration
78

Note: In the coming days, I wish to post articles on the above subjects and revise the articles which were posted already.  

GCC - General Conditions of Contract for Services


  • Railway Board releases New GCC - General Conditions of Contract for exclusively to Service Contracts.  
  • Till the date, GCC for Works is applicable for such Service Contracts. It is 106 pages document released in January, 2018.  However due to typographical mistakes, the same was revised and uploaded on 20.03.2018.
  • It helps to improve contract management, delivery of services and to reduce Government litigation, since Railways have entered more and more service contracts in non-operational areas such as cleaning, facilities management, consultancy etc.



Click below



Tuesday, October 15, 2019

GCC for Works - New clause - Bonus for early completion of work


GCC for Works  - New clause  - Bonus for early completion of work

·       Contractor is entitled a Bonus for early completion of work i.e., before the prescribed date for completion.

·        New clause in GCC for works

·        Para No. 17 C of GCC – General Conditions of Contracts for Works

·        Bonus  - 1 % of Contract value for each 30 days early completion of work.

·        Less than 30 days shall be ignored for working out the Bonus

·        The completion date reckoned  - the date of issuance of completion certificate by the Engineer.  

·        Maximum Bonus is 3 % of the original contract value.

·        Conditions for availing Bonus by Contractors are :
1.     Open Tenders having value of more than Rs. 20 Crores
2.     Original period of completion is 12 months or more
3.     No reduction in original scope of work by more than 10 %

·        This clause is very good.  Because it encourages the contractors for early completion of work for availing the Bonus to the extent of 3 % of Contract value. Also avoids the time over runs and cost over runs in Projects.

Example: 

A work costing 25 Crores whose completion period is 18 months was awarded to the Contractor ABC Co, ltd on 01.10.2019.  The completion date for this work is 31.03.2021. The scope of work is not reduced during the contract period. If the contractor completes the work on 15.12.2020, what is the eligible amount of Bonus entitled to the Contractor?
Answer:

Saving period:  31.03.2021  Minus  15.12.2020  = 116 days.
Bonus is 1 % for every 30 days subject to maximum of 3 %
Bonus calculation  = 3 % of 20 Crores =  Rs. 60 Lakhs

Suggestions:

1.     The limit of Rs. 20 Crores can be reduced to Rs. 5 Crores or any reasonable limit
2.     The Bonus shall be 0.25 % for every one week in lieu of 1 % for every 30 days period.

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Monday, March 18, 2019

EMD – Earnest Money Deposit (as per GCC for Works – Nov, 2018)


EMD – Earnest Money Deposit
(as per GCC for Works – Nov, 2018)

ü  Earnest means – Showing sincere interest/serious in participating the Tender process, if awarded executing the Work for Organizations like Indian Railways.

ü  EMD – Earnest Money Deposit – means an earnest payment as specific form of Deposit to demonstrate that the applicant is serious/sincere to participate the Tender work and complete the work for orgnisations like Indian Railways, if awarded.

ü  EMD Rates are as follows.

Value of the Work
EMD Amount ( Rounded to a nearest Rs.100)
Up to Rs.1 Crore
2 % of value of the work
Beyond Rs. 1 Crore
Rs. 2 lakhs + 0.5 % of the excess of the estimated
cost of work beyond Rs.1 Crore

ü  Maximum EMD is Rs. One Crore only.

Examples for calculation of EMD under different circumstances: -
=======================================================
1.       Value of Work  - Rs. 25,60,520

2 % of Rs.25,60,520  - Rs. 51,210

Answer is Rs. 51,200 /- (Rounded off to a nearest Rs.100)
                 =======================================================
2.       Value of Work  - Rs. 4,00,00,000 ( Rs. Four Crores)

First one Crore
Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Four Crore ( 3 Crores)
Rs.3 Crores x 0.5 % = Rs. 1,50,000 (Rs.1.5 Lakhs)
For Value of Rs.4 Crores
Rs.2 Lakhs plus Rs.1.5 Lakhs = Rs.3.5 Lakhs

                 =======================================================
3.       Value of Work  - Rs. Two Hundred Crores

First one Crore
Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Two Hundred Crore ( 199 Crores)
Rs.199 Crores x 0.5 % = Rs.99,50,000
For Value of Rs.200 Crores
Rs.2,00,000 plus Rs.99,50,000 = Rs.1,01,50,000.  However maximum EMD is Rs.1 Crore.  So EMD is Rs.1,00,00,000/- ( Not Rs.1,01,50,000)

                 =======================================================
ü  EMD is applicable to all modes of Tenders such as Open, Limited, Single etc.

ü  Exemption for Submission of EMD – Firms recognized as “STARTUPS” by DIPP (Dept of Industrial Policy & Promotion.

ü  EMD of Successful Tenderer – Retained as part of Security Deposit.  But Railway shall return the EMD, if a Successful Tenderer submit “Term Deposit Receipt (TDR) / Bank Guarantee Bond towards the Full Security Deposit.

ü  EMD shall be deposited in Cash (through E-Payment Gateway) or as mentioned in Tender documents.

ü  EMD of unsuccessful Tenderers – Returned to them. But Railway is not liable to pay the depreciated value, if any or any interest on EMD.

ü  Forfeit of EMD:

1.       If the successful tenderer unable to submit the PG – Performance Guarantee within validity of time, or
2.       If the successful Tenderer resile/abandon from his offer, Or
3.       Modify the terms and conditions there of in a manner not acceptable to the Railways.
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