Railway Accounts Department Examinations

Showing posts with label Liquidated Damages. Show all posts
Showing posts with label Liquidated Damages. Show all posts

Saturday, June 1, 2019

Liquidated Damages - LD (Stores)


Liquidated Damages - LD  (Stores)

·         Purchaser reserves the right to levy Liquidated Damages in case failure on the part of supplier to arrange supplies as per the delivery schedule or extended period

LD  - Percentages

·         0.5 % of value of stores for every week or part of the week

·         Maximum LD is 10 % of the value of stores.

·         Value of Stores includes taxes, duties, freight etc.

Exemptions to levy Liquidated Damages

1. Force majeure conditions for which circumstances beyond the control of supplier.
2. Delay attributable to the Purchaser (i.e, Railways)


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Wednesday, April 10, 2019

EMD AND SD IN STORES CONTRACTS


EMD AND SD IN STORES CONTRACTS

Authority : 1)2018/TRANS CELL/STORES PROCUREMENT dated 02.01.2019   Click here
                      2) 2004/RS(G)/779/11/pt dated 27.03.2019   Click here

EMD – Rates for Stores Contracts

Estimated value of Stores tender
EMD (rounded off to nearest higher Rs.10
Up to Rs. 5 Lacs
NIL
Above Rs. 5 Lacs to Rs. 20 Crores
2 % of estimated value of the Tender subject to maximum Rs. 20 Lacs
Above Rs. 20 Crores to Rs.100 Crores
1 % of estimated value of the Tender subject to maximum Rs. 50 Lacs
Above Rs.100 Crores
0.5 % of estimated value of the Tender subject to maximum Rs. 1 Crore

ü  Offers submitted without EMD shall be summarily rejected.

ü  Automatic online release of EMD of unsuccessful tenderers immediately after finalization of the Tender.  
EMD is exempted in the following cases
1.       Estimated value of Stores tender up to Rs.5 Lacs
2.       MSEs (Micro & Small Enterprises) registered for the Tender item.
3.       Other Railways and Govt departments
4.       Indian Ordinance factories
5.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are manufactured by them.

Exemption from EMD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions



ü  Requires personal approval & Finance concurrence as detailed below.
Required
Headquarters
Field units
(Divisions, Depots, construction etc)
Personal Approval
Authority competent to accept the Tender based on estimated value thereof, but not below the level of PCMM on case to case basis
Authority competent to accept the Tender based on estimated value thereof, but not below the concerned SAG level (ADRM, CWM, CAO etc) on case to case basis
Finance concurrence is
not required
required


SD – Security Deposit in Stores contracts

ü  10 % of the Contract value, subject to maximum of Rs.5 Crores.  Rounded off to nearest higher Rs. 10.  No ceiling for SD in Global Tenders for procurement of Stores.

ü  Shall remain valid for a period of 60 days beyond the date of completion of all contractual obligations.

ü  Deposit SD within 14 days of issue of LOA – Letter of Acceptance.

ü  No extension of time for submission of SD

ü  The EMD submitted by successful tenderer shall be automatically adjusted towards the SD.  The balance SD amount should be deposited within 14 days of the issue of LOA. 

ü  Otherwise (i.e., Balance SD not desosited), the EMD shall be forfeited and case be dealt with as that of withdrawal of offer by the Tenderer as per extant instructions.

ü  In case of failure by contractor to meet deliveries for any lot, Railways may cancel the contract for default part by forfeiting SD commensurate to that lot.

ü  Risk purchase clause shall not be applicable wherever SD clause is applicable.

ü  Wherever SD clause is not there, Risk purchase will be made as per extant guidelines.





SD is exempted in the following cases
1.       Estimated value of Stores tender up to Rs.1 Lac
2.       Other Railways and Govt departments
3.       Indian Ordinance factories
4.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are manufactured by them.

Exemption from SD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions

ü  Requires personal approval & Finance concurrence as detailed below.
Required
Headquarters
Field units (Divisions, Depots, construction etc)
Personal Approval of 
Authority competent to accept the Tender based on estimated value thereof, but not below the level of PCCM on case to case basis
Authority competent to accept the Tender based on estimated value thereof, but not below the concerned SAG level (ADRM, CWM, CAO etc) on case to case basis
Finance concurrence is
not required
required


LD – Liquidated damages for delayed supply
ü  0.5 % of the price of stores per week or part of the week of delay

ü  Upper limit – 10% of the value of contract (irrespective of delays)

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