Railway Accounts Department Examinations

Showing posts with label contracts. Show all posts
Showing posts with label contracts. Show all posts

Monday, July 6, 2020

Direct Acceptance of Tenders - Works

Direct Acceptance of Tenders - Works

ü  Constituting the Tender Committee is not required for awarding of the works up to Rs. 50 Lakhs by SG or JAG or Sr.Scale (Independent charge)


ü  Object is to speed up the process of awarding the Tenders thereby execution of works without loss of time.  

Requisites of Direct Acceptance of Tenders

ü  By SG or JAG or Sr.Scale Officers(Independent charge)

ü  Up to value Rs. 50 Lakhs

ü  Tender Committee not required

ü  Tendering through E-Tender i.e., IREPS and Open Tender mode only

ü  Minimum Notice Period – 21 days

ü  Ensure availability of Funds before calling of Tenders

ü  L 1 cannot be bypassed

ü  Negotiations if any, with L 1 only

ü  Reasonable Speaking Order by TAA – Tender Accepting Authority (about Tender evaluation & Acceptance)

ü  TAA is responsible for :-

A.      No splitting has been done to bring the said work value within the ambit/range of Rs. 50 Lakhs.


B.      Tender schedule has been prepared as per the rates & quantities prescribed in the detailed estimate (sanctioned)


C.      Sanction of Detailed Estimate


ü  LOA  - Letter Of Award/Acceptance should be vetted by Finance (Object is to comply the above requisites or not)



Thursday, April 23, 2020


IR-WCMS - Indian Railways Works Contract Management System

·         Source: Click for Railway Board Letter dated 21.04.2020

·         Developed by CRIS

·         Web enabled application ( i.e., work on any device that can run on a supported browser and has an active Internet connection)

·          hosted on https://ircep.gov.in/

·         Applicable from 01.05.2020 for all new works in Engineering Dept

  • Integrated with IREPS for importing data and IPAS for release of payment to contractors.

·              Covers:   all the activities associated with contract handling which inter-alia include the following:

    1. Submission of Performance Guarantee
    2. Preparation & signing of contract agreement
    3. Billing and its integration with IPAS for Payment
    4. NS items preparation and sanction

e.      Variation statement preparation and sanction

f.        Extension of DOC (Date of Completion)

g.       Release of PG/SD

h.      Correspondence between Railways with contractors

·              The e-module for Zonal Contracts has also been developed.

·         IR-WCMS not applicable for

·         Contracts having provision of contractor's measurement

·         Composite contracts having scope of Elect. & S&T works also

·         Contracts having provision for release of advances to contractors

·         The modules for above are also under development and shall be launched soon.

·          In the First phase, Engineering Dept of 17 Divisions  in Indian Railways already implemented. 

·         Board has been decided to extend this e-application to all new works awarded on or after 01.05.2020 in Engineering Dept of all the Divisions in Indian Railways.

·           Exemption - Applicable of WCMS   - With DRM's personal approval with reasons recording.

·           In any case, Works Contract shall not be handled both manually and on IR-WCMS.

·              Only new contracts shall be handled on IR-WCMS. The ongoing contracts shall continue to be handled manually.

·              However TC (Tender Committee) proceedings and LOA need to be through IREPS only.  Later the same may be imported to IR-WCMS.

·              Since railway clerical staff, supervisors and contractors would be operating IR-WCMS, officers who have already been trained by CRIS shall provide necessary training to them.

·              Being a financial application, officers are strictly advised not to share their passwords with others and keep digital key in their personal custody.

·              Final phase - The IR-WCMS in Engineering dept should be replicated to other depts i.e., Electrical, S&T, Mechanical also by 30.06.2020.  Training of Officers & staff of other depts should be impart by the Officers of Engineering Dept.

·              Following users have been created as Administrator and they can further create other users as per requirements. Users are advised to change the password immediately after first login :


Login ID


Example for

"Firozpur" divison

         <Div                           FZR


sdenc<div code>




adrminfra<div code>




sdfm<div code>




·              IR-WCMS would assist officers, staff as well as contractors to a large extent in efficiently managing works contracts.

·              For any assistance in operating IR-WCMS, officers may kindly contact the following officials:



Contact Number

Shri S P Ojha

Sr.Project Engineer/CRIS


Shri A Rehman



Shri P S Gupta

EDCE/G, Railway Board




Tuesday, October 15, 2019

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.


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? 


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