Railway Accounts Department Examinations

Showing posts with label General Conditions of Contract. Show all posts
Showing posts with label General Conditions of Contract. Show all posts

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.

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Monday, November 4, 2019

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: -
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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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