GCC for Works latest one July 2020

Click for latest version of GCC for works 2020 July

GCC 2020 with changes highlighted by Red colour. Thanks to Shri Afzaluddin, Sr.AFA/SCR

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.

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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

Revised GCC for Services

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

Bonus for early completion of work 

● New initiative to encourage the Contractors to complete works as early as  possible by offering incentives in the form of Bonus.  

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

● New clause in GCC for works - 17C 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 5 % of the original contract value.  

● Conditions for availing Bonus by Contractors are :  

1. Open Tenders having advertised value of more than Rs. 50 Crores 

2. Original period of completion is 12 months or more 

3. No reduction in original scope of work by more than 10 % 

4. No extension granted on either Railway or Contractor’s account

● This clause is very good. Because it encourages the contractors for early  completion of work for availing the Bonus to the extent of 5 % of Contract  value. Also avoids the time overruns and cost overruns in Projects. 

• Suggestion is the Bonus shall be 0.25 % for every one week in lieu of 1 % for every 30 days  period.

Example:  

A work costing 60 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 5 % 

Bonus calculation = 3 % of 60 Crores = Rs. 180 Lakhs 

 

Material for MCQ

1. Bonus is 1 % of Contract Value for each 30 days of early completion of work.

2. Maximum Bonus is 5 % of Contract Value

3. Original period of Completion is 12 months or more

4. Advertised value of Tender should be Rs.50 Crores and more

5. Eligible for Open Tenders only

6. No reduction in original scope of Work by more than 10 % 

7. No extension granted either on Contractor’s account or on Railway’s Account 

8. Less than 30 days is ignored for calculation of Bonus

9. New Clause in GCC for Works - 17C

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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: -

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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)

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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

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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)

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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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