Designed to help the candidates appearing the Appendix 3, LDCE, 70% etc of Railway Accounts
Sunday, November 12, 2023
Tuesday, October 31, 2023
EPC - 2020 year SCR LDCE question for 5 marks
EPC
§
EPC stands for Engineering, Procurement & Construction
§ Also known as Turnkey project (Turn of the Key)
§ A new and prominent form of Contract Agreement in Construction industry.
§ Key feature: To execute and deliver the Project (from Planning to Completion in all respects) within Agreed time and Budget.
§
In a nutshell, EPC
Contractor will carry out:
A. Carry out the detailed Engineering Design of the Project.,
B. Procure all the Equipments and Material for construction of the said Project.,
C. then, Construct the Project and Deliver to their Client.
§ Usually in EPC Contracts, the Client employs PMC - Project Management Consultant to supervise the work. (Click here to access the article on PMC)
Need of EPC in Indian Railways
§ In Conventional Rate Contracts (present Works Contracts), the usual drawbacks are
A. Delay in Survey
B. Delay in preparation of Estimates
C. Delayed Measurements
D. Inadequate funds
E. Cost over runs
F. Time over runs
G. Disputes on various issues with Contractors
§ To address all the above issues, Railway Board have proposed a Model EPC Agreement, which is released recently.
§
Click here for Model EPC Agreement
Salient features of Model
EPC Agreement of Indian Railways
ü
Lump sum Contract Price
(subject to Price Variation clause)
ü
Within Time
ü Damages due to delay i.e., 0.05 % of Contract Price for one day delay.
ü Maximum damages are not to exceed 10 % of Contract Price. That means, maximum delay is 200 days ( 200 x 0.05 = 10)
ü Assigned responsibility for Investigations, Design & Construction to the EPC Contractor
ü Transferring the Construction Risk to the EPC Contractor.
ü Payments are linked to the Specific Stages of Construction. (unlike individual measurements like in existing rate contracts/Works contracts)
ü
Defect Liability
Period - 2 years
ü
Bid Security (Replacing
EMD )
ü Performance Security ( May be replacing Security Deposit and Performance Guarantee)
Examples of EPC in Indian
Railways / Transport sector.
1. RE - Railway Electrification Project - 781 Kms in Konkan Railway given to L & T in the year 2017.
2. Delhi Metro Railway Construction
3. Construction of Railway Bridge in Jammu - Udhampur Railway Link
^^^^^^^
Friday, October 27, 2023
Engineering Code - Latest 2023 May
Engineering Code
1. Revised Edition 1982
2. Fourth Re-Print 2012
3. Up to ACS 61 May 2023
4. PDF copy by IRICEN, Pune
Click for Engineering Code Latest 2023 May
Saturday, October 14, 2023
Key to Expenditure Question Paper Appendix2 Exam 2023 WR
Key to Expenditure Question Paper Appendix2 Exam 2023 WR
Click for Expenditure Question Paper 2023 of WR
Section I
Match the following: (Marks 12 x 1=12)
1 | EPC | A | Registration of Bills | |
2 | Plan Head 53 | B | Traffic Facilities | |
3 | CO 6 | C | General Conditions of Contract | |
4 | Cash Imprest | D | Engineering Procurement Construction | |
5 | Primary Unit | E | Works chargeable to Capital | |
6 | GeM | F | % of Gross Working Expenses to Gross Earnings | |
7 | Plan Head 16 | G | Government e Marketplace | |
8 | GCC | H | Works Matters | |
9 | ROR | I | Object of Expenditure | |
10 | Operating Ratio | J | Petty Expenses | |
11 | MSOP Part A | K | Control Over Cash Outgo | |
12 | Exchequer Control | L | Customer Amenities |
Answer:
1 | EPC | D | Engineering Procurement Construction | |
2 | Plan Head 53 | L | Customer Amenities | |
3 | CO 6 | A | Registration of Bills | |
4 | Cash Imprest | J | Petty Expenses | |
5 | Primary Unit | I | Object of Expenditure | |
6 | GeM | G | Government e Marketplace | |
7 | Plan Head 16 | B | Traffic Facilities | |
8 | GCC | C | General Conditions of Contract | |
9 | ROR | E | Works chargeable to Capital | |
10 | Operating Ratio | F | % of Gross Working Expenses to Gross Earnings | |
11 | MSOP Part A | H | Works Matters | |
12 | Exchequer Control | K | Control Over Cash Outgo |
Fill in the Blanks (16 Marks)
Detailed estimates need not be prepared for works costing less than _______
Expenditure of Railway Staff College is chargeable to Demand No._________
Currency for the sanction to an Estimate is normally _____ years
Minimum Rate of Return expected for Railway Projects is _____ percent
The Amount recoverable from Suppliers for the failure to supply the materials within due date is known as __________
Salary of Running Staff is booked to Demand No. ____
The Zonal Accounts Department is headed by ______
Abstract Z refers to ____________ Earnings
Answers:
Rs 5 Lakhs
Erstwhile Demand No. 2 Miscellaneous Expenditure - General (Railway Staff College new name is NAIR - National Academy of Indian Railways) . If Zonal Training Centres, the answer is erstwhile Demand No.12 - Miscellaneous Working Expenses (SMH - Sub Major Head 10)
5 years ( 2 years - If work is not commenced)
10
LD - Liquidated Damages
Erstwhile Demand No. 08 - Operating Expenses - Rolling Stock & Equipment
PFA - Principal Finance Advisor (In Railway Board - Member Finance. In Division - Sr.DFM - Senior Divisional Finance Manager)
Sundry Other Revenue (Now Revenue is replaced the word Earnings) .Abstract X - Coaching Traffic Revenue and Abstract Y - Goods Traffic Revenue
3. State Whether True or False: (12 Marks)
SN | Statement | True / False |
1 | The object of performance guarantee in service tenders is to keep the offer of open till the finalization of Tenders | |
2 | Revenue Allocation Register is maintained for exchequer control | |
3 | PVC claim is applicable for Contracts above Rs.25 Lakhs | |
4 | Expenditure on ceremonial occasion is normally charged to Revenue | |
5 | Post Project appraisal is done through Productivity Test | |
6 | In IPAS module bills are required to be pass at 3 levels | |
7 | The checks exercised by Railway Accounts Office on financial transactions is called Internal Audit | |
8 | M&P programme is budgeted under Plan Head 41 | |
9 | Two Packet system of tendering means submitting the Tender documents separately for Technical and financial bids | |
10 | Arbitration is a mechanism to sort out the disputes arising out of implementation of Contract | |
11 | Deposit works means works charged to Fixed Deposit under Contingency Fund of India | |
12 | A Contract under which during the period of its currency, the Contractor engages to supply materials on Demand irrespective of the Quantity at fixed unit rate is called Rate Contract |
Answers:
False (Correct Answer is the Object of EMD is to keep the offer open till the finalization of Tender)
False
False (The Correct answer is Rs.2 Crores and above)
True
True
False (The Correct answer is Internal Check)
True
True
True
False
True
4. Give the full forms of following: (Any 18) (Marks 18 x 1=18)
SN | Abbreviation/ Acronym | Expansion |
1 | IPAS | Integrated Payroll Accounting System |
2 | IRPSM | Indian Railways Projects Sanction & Management |
3 | GST | Goods & Services Tax |
4 | MSME | Micro Small & Medium Enterprises |
5 | RRSK | Rashtriya Rail Sanrakshak Kosh |
6 | DRF | Depreciation Reserve Fund |
7 | PVC | Price Variation Clause |
8 | HRMS | Human Resources Management System |
9 | DOP | Delegation Of Powers |
10 | RDSO | Research Designs & Standards Organization |
11 | CLW | Chittaranjan Locomotive Works |
12 | RSP | Rolling Stock Programme |
13 | EMD | Earnest Money Deposit |
14 | PBG | Performance Bank Guarantee |
15 | UDM | User Depot Module |
16 | GFR | General Financial Rules |
17 | DCF | Discount Cash Flow |
18 | IRWCMS | Indian Railways Works Contract Management System |
19 | NPV | Net Present Value |
20 | GTKM | Gross Tonne Kilo Meters |
21 | FIRR | Financial Internal Rate of Return |
To be Continued…….