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By M.Nageswara Rao, SSO(A),
Secunderabad
VIGILANCE AWARENESS WEEK
31st Oct to 5th Nov, 2011
Presentation on Vigilance awareness & Works matters
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“Do not overlook negativeactions merely because theyare small ; however small aspark may be, it can burndown a haystack as big as a
mountain”
Lord Buddha
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T I – TRANSAPARENCY INTERNATIONAL7
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C P I - CORRUPTION PERCEPTIONS INDEX
The Transparency International –
- the global coalition against Corruption
- measures CPI
Surveys 178 countries in 2010 year.
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RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010 YEAR
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RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010 YEAR
0123456789
10 9.3 9.3 9.3
1.4 1.41.1
3.3
Corruption Perception Index on a scale from 10 to 0
Corruption PerceptionIndex on a scale from10 to 0
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VIGILANCE ORGANISATION IN INDIA
CVC – CENTRAL VIGILANCE COMMISSION
(website : www.cvc.nic.in)
Apex Body at National level having jurisdiction over central Govt. Ministries and PSUs.
Manned by Chief Vig. Commr. and to Vig. Commrs.
Issues directives to various Ministries which in turn issue procedure orders for their own Departments.
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VIGILANCE – RAILWAY BOARD LEVEL
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Scenario of Corruption in India – an overview
It is estimated that Rs.26,728 Crores exchange hands in the form of bribe in India
Governments pay 20% to 100% more for their goods and services.
UN report says that if the corruption level in India is reduced to the level of Scandinavian countries, investment in the country would increase annually by 10% and GDP growth by 1.5%.
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ANALYTICAL STUDY OF VIGILANCE CASES
PERCENTAGE VIGILANCE CASES
ASPECT WISE
Selections,
Appointments&
Promotions
17%
Purchases
17%
Others
32%
Aw ard of Tenders &
Contracts
34%
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Vigilance Angle : What is it ?
Demanding and/or accepting gratification
other than legal remuneration.
Obtaining anything of value without
consideration or with inadequate
consideration from those with whom
official dealings are likely, either directly
or by exerting influence.
Obtaining for self or for any other person, anything of value or pecuniary advantage by corrupt or illegal means or by abusing the position as a public servant.
•(cont’d)
Disproportionate Assets vis-à-vis
known sources of Income
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Vigilance Angle (cont’d)
Misappropriation, Forgery, Cheating or similar criminal offences
Gross or willful negligence, reckless
decision making, blatant violation of systems and
procedures and excessive exercise of discretion
Other irregularities where circumstances will have
to be weighed carefully to view whether the
government servants’ integrity is doubtful
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No action, as a general rule, is taken on Anonymous Complaints (i.e. complaints that do not bear name and address of the complainant) and Pseudonymous Complaints (i.e. complaints which do not bear the signature of the complainant or which on verification is not owned by the person in whose name it is made).
However, verifiable facts alleged in such complaints may be looked into with prior concurrence of CVC.
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VIGILANCE AS A BITTER PILL
- Neither liked by honest officer nor a dishonest officer.
Yet its absence will be harmful to the organisation.
Like bitter pill, the vigilance dept. will taste sour. But in the long run, it will be in the good health of an organisation.
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Objective of VigilancePrevention
of corruption.
Promotion of Integrity.
Promotion of Vigilance consciousness,
amongst Railway men.
Effecting system improvement.
Advise suitable administrative or disciplinary action.
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Vigilance is
Not a stand alone activity.
A part of the overall risk management strategy of an organisation.
-to prevent leakages which adversely affect productivity and profitability.
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Vigilance is
It is not the purpose of Vigilance to wait
for lapses to be committed and then try to conduct post
mortem.
Preventive intelligence is more
important than punitive(penalising)
vigilance
-in short, preventive vigilance measures are more important
like old adage “PREVENTION IS
BETTER THAN CURE”
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Cannons of Standards of Financial propriety(Para
116 of I.Rly.Finance Code vol.I)
Its like Bhagavdgita for all preventive checks.
1. The Expenditure should not be prima facie
be more than the occasion demands
2. Every Govt. Servant should exercise the same VIGILANCE in respect of expenditure incurred from public money as a person
of a ordinary prudence would exercise in respect of the expenditure of his
own money.
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3. No authority should exercise its powers of sanctioning
expenditure to pass an order, which will directly or indirectly
to its own advantage.
4. Public moneys should not be utilised for the benefit of a
particular person or section of the community
5. The amount of allowances such as T.A, granted to meet expenditure of a particular type should be so regulated that the allowances are
not on the whole sources of profit to the recipients.
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DO’s
1. Identify the purpose & plan in advance.
2. Clubbing the similar requirements from all units.
3. Description of item should be clear and complete with I.S.specification/drawing if any.
4. Specification should not be prepared in such a way that specification meets the requirements of a single product/specific make.
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DO’s
5. Sample clause if any should be only for ascertaining ‘TOUCH, FEEL & FINISH’ of the indented item, but not for its quality.
6.Quantity, Unit & Rate – should be quote in figures as well as words
7.Officer signing indent should clearly mention their name and designation.
8.Vetting is required for indents valuing Rs.one lakh and more(for safety items-Rs.Two lakhs and more)
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DO’s
9. If the demand of the item is recurring, convert the same as Stock item.
10. Essentiality certificate should be certified by the Indenting Officer.
11. Ensure Funds availability and ascertain correct head of account to be debited before placing Indents.
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12. The description of the item should normally be arranged in Order.
A. Basic commodity
B.Variance in kind or use.
C. Composition/size/color/shape
D.Specification/drawing No.
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Should be invariably on a Public Tender basis.
Tenders should be both for technical and financial
bids. Technical bids should be scrutinized
before financial bids are opened.
List of suppliers should be reviewed periodically.
Delivery samples should be got checked with basic
samples.
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Periodical rotation of Officers/staff in sensitive posts.
Review of Immovable property
returns submitted by Officers/Staff.
Proper implementation of DA Rules to weed
out corrupt officers.
Institution of effective grievance procedure enquiry.
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TENDERS AND CONTRACTS
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1. E-Procurement
– for efficiency in the procurement of goods, works and services.
-- brings in greater transparency, thus reducing opportunities for corruption.
-- publish their tenders and complete bid documents along with the application forms on the Website itself duly curbing mal-practices prevailing in various govt offices where competition is sought to be restricted.
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2.
2. E-Payment
- Here again bring economy and efficiency and at the same time reducing corruption.
- Leveraging technological advances in the banking sector for the benefit of government organisations like Railways, Defence etc.
- Reducing transaction costs involved in making payments by way of cheques and sending the same through courier.
- Also curbs corruption which accompanies handing over cheques to contractors, suppliers etc.
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3. Extensive use of Website & Internet enables stakeholders
- To verify the outstanding bills position by Contractors, suppliers.
- To track down their PF application online by employees
- Reducing enquiries thus enables staff more productive.
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3. Extensive use of Website & Internet enables stakeholders
Experience certificate should be posted on SC Railway Website by the Issuing Authorities to enable Tender Committee (TC) to verify the genuineness of experience certificate submitted by the Contractors along with bid.
This enables to obviate the physical verification and speed up tender process.
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Post on the website, summary every month, of all the tenders/works contracts of value more than One Crore Rupees of Engg./Mech/Elec/S&T/ Medical department, Rs.50 Lakhs for Commercial Dept. and all the purchases of value more than Rs.20 Lakhsdone through Stores contract (Rly.Bd;s Lr. No.2004/V-1/CVC/1/18 Dt.13-04-2005).
- Actual date of start of work.
- Actual date of completion.
- Reasons for delays if any.
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Open TendersCommon Irregularities
Inadequate tender notice
Inadequate time for participation
Inadequate publicity
Late availability of tender
documents
Tender box not available in advance
Deviations in eligibility criteria
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LIMITED TENDERS
COMMON IRREGULARITIES
Arbitrary selection of firms.
Firms with better experience ignored and
firms with dubious credential selected.
Inadequate time given for participation in
tender.
Tender notice not sent to all the firms.
Bogus firms selected to inflate the number.
Rates can be reasonably higher since the
competition is restricted.
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SINGLE TENDER
COMMON IRREGULARITIES
Projecting undue/artificial urgency
Selecting unsuitable tenderer based
on exaggerated credential ignoring
his past failures.
Accepting exorbitant rates on the
grounds of urgency then merrily
giving extensions with token penalty
or without penalty.
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IRREGULARITIES IN EXECUTION OF CONTRACT
Failure to incorporate accepted tender
conditions in contract agreement.
Introduction of conditions having
financial implications.
Change in specifications during
execution.
Altering the location or nature of work
giving undue advantage to the tenderer.
(Contd.)
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Unreasonable variations in terms of quantity.
Introduction of new non-schedule items.
Acceptance of material of inferior brand than
specified in contract agreement.
Acceptance of material after date of expiry.
Acceptance of under specification supply.
Accepting material without inspection
certificate.
Accepting material without delivery challans.
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Waival of inspection or change in inspecting
authority.
Relaxation of technically rigid requirements.
IRREGULARITIES IN EXECUTION OF CONTRACT7
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IRREGULARITIES IN CONTRACTUAL PAYMENTS
Temporary overpayment in running
bills.
Payment in anticipation of work to be
done or supply to be made.
Payment for the services not
rendered.
Inflated measurements.
Multiple measurements.
Final over payment.
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RECORDING OF WORK IN (MB)
As per Para No.1313 of Engineering Code payments for all work
done otherwise than by departmental labour and for all supplies
are made only on the basis of measurements recorded in
Measurement Books (Form E.1313).
Supervisor in charge of the work has to record measurements in
the MB as per rules contained in relevant Paras of Engineering
Code.
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TEST CHECK MEASUREMENTS BY NEXT HIGHER
AUTHORITY
Measurements recorded by an authority
should invariably be test checked by the next
higher authority. Such test checks of the
measurements by the next higher authority as
per the prescribed scales is necessary to safe
guard against any mistakes and inaccuracies
and which may be caused unintentionally and
inadvertently (Rly.Bd’s Lr.Dt. 27-10-2002).
10% test check for works costing up to Rs.
25,000/- each and 20% for works costing
above Rs.25,000/- each is necessary by
Asstt/Divnl. Officer.
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DO’S (GENERAL)
Keep a good image before the public/staff by
being honest, impartial and just. Always be
punctual in attendance.
Be conversant with the current rules and
regulations before taking any decision.
Be conversant with the relevant clauses of the
Conduct Rules and ensure that these Rules
are not infringed.
Use your discretion properly to avoid any
miscarriage of justice.
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DO’S (GENERAL)
Be dispassionate while taking decisions so
that undue favour accrues to anyone.
While using staff cars ensure personally that
the journey if performed for private purposes,
is indicated so in the ‘remarks’ column of the
Register and also indicating whether on
duty/leave.
While occupying Rest houses, ensure filing up
the Register and also indicating whether on
duty/leave.
Maintain proper record of C.L/LAP availed and
ensure that it is properly debited to your
account.
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DONT’S (GENERAL)
Do not delay files/papers put up to you.
Do not forget to put a date under your
signature. Absence of date may give rise to
doubt about your motives in certain situations.
Do not misuse staff cars/vehicles, railway
labour, railway materials, catering etc.
Do not misuse Duty passes for journeys
performed, which are not for official work or
for persons not entitled for such travel.
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DONT’S (GENERAL)
Do not sit on the Selection Board before whom
any relative of yours is appearing for
selection.
Do not take part in the Tender Committee
meetings if any of your relative is one of the
tenders.
Avoid sanctioning a privilege to yourself even
if it is within your own competence. Let such
sanction be accorded by your superior.
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OPENING OF TENDERS
Opened at the specified time, date and placeby an officer nominated in the presence ofA/C rep & authorised reps of tenderers.
Seal of the Tender Box to be checked
Tenders should be serially numbered
Initials on cover page and all other loosesheets attached by both executive & A/Crep.
Rates quoted should be circled.
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OPENING OF TENDERS (CONTD…)
Corrections, over writings & omissions to be numbered andwritten on each page and attested with date.
Check completeness of tender form (for tampering etc.)downloaded from internet
Name of the tenderers and rates quoted by each tenderershould be read out and entered in the tender register inWORDS and initialed by both reps.
No clarifications to be solicited from tenderers
Samples, if any to be initialed
Any Blank Column shall be struck off by the tender clerk
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OPENING OF TENDERS (CONTD…)
Delayed tenders to be marked so and opened in the same
manner.
LATE tenders to be marked so and opened if received
during opening session. Otherwise, to be opened by the
Executive
Both the Accounts and Executive witnessing officials are
INDIVIDUALLY responsible for following the procedure laid
down for tender opening.
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COMPARATIVE STATEMENT
Special Conditions having financial implications quoted by the tenderer if any:
Remarks if any:
Signature of the Tender Clerk Signature of the Departmental Officer
Name Name
Designation Designation
Signature of Section Officer Signature of Accounts Officer
Name Name
Designation Designation
TenSNo
Name of
the Tenderer
Face
Value of
Tender in Rs.
Schedule - A Schedule -B Tot
qtd val
EMD
Details
MeritOrder
No.Rate qtd
Val
in
Rs.
Rate qtd
Val
in Rs.
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BRIEFING NOTE
Briefing Note shall include -
Details of offers received
Period of validity of offers
EMD details of each tenderer
Last accepted rates for similar type of works
Financial implications on the special conditions
Remarks on special conditions quoted by the tenderer, if any
Credentials of the tenderer
Other certificates/documents submitted by the tenderer
Estimated provision for the work etc.
If any tender is BLACK LISTED, that should be brought out.
Details of the contracts of the tenderer during the last 3years and current year should be brought out
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TENDER NOTICE
Tender Notice shall be issued atleast 30 days inadvance from the date of tender opening
In case of urgency – 21 days with prior financeconcurrence and approval of DRM
Issue of tender schedules – immediately aftertender notice With the approval of tender calling authority –
atleast 15 days prior to the date of tender opening
Date on which the tender documents will be madeavailable on the website / in the office shall beclearly broughout in the Tender Notice
Eligibility criteria and similar nature of worksshould be specifically mentioned in Tender Noticeand in the tender documents for OT above Rs. 50lakhs
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ELIGIBILITY CRITERIA
As per Sudhir Chandra Committee Report – Solvency Certificate from MRO or Nationalised/ Scheduled
Banks for 40% of the tender value for works more than Rs. 1 cr
Should have completed a similar nature of single work for avalue of 35% of tender value
Turnover to the tune of 150% of tender value
Similar nature of works As per RB Lr No.94/CE-1/CT/4 dt 23.11.06 – PHOD of the Dept
concerned shall issue guidelines
Finance concurrence and approval of Tender AcceptingAuthority is required for incorporation of similar nature ofworks other than those circulated by PHOD
Similar nature of work depends on the main element of thetender and shall be mentioned in NIT & Tender documents
Clubbing of dissimilar nature of works shall be avoided. Ifunavoidable, Eligibility criteria shall be indicated in NIT & TSafter taking finance concurrence & approval of TenderAccepting Authority
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LATEST GUIDELINES ON TENDERS
SD shall be 5% of the contract value and shall be recovered fromrunnng bills only @ 10%. BG, FDRs etc are not to be considered
PG shall be in the form of irrevocable BG issued by nationalised orscheduled bank – 5% of the contract value. FDR can also beaccepted.
PG shall be furnished by the successful contractor within 30 daysfrom the date of issue of acceptance letter & before the signing ofthe contract and valid upto expiry of the maintenance period
Clause on Conservancy Charges
20% Limitation clause on claims amount (for referring toarbitration) should be kept in BOLD letters.
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PERFORMANCE GUARANTEE- P G
shall be submitted by the Contractor within 30 days from LOA (Letter of Acceptance).
Extension can be given up to 60 days from LOA by the Authority who is competent to sign the Contract Agreement.
But 15% P.A penal interest to be charged for beyond 30 dyas.
Failed to submit the P G within 60 days from LOA, Contract shall be terminated duly forfeiting the EMD and other dues if any payable against the Contract.
The failed contractor will be debarred from participating in the re tender for
that work.
No Risk and Cost Tenders
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BANK GUARANTEE – CHECK LIST
PG shall be in the form of irrevocable BG issued by nationalised or scheduled bank – 5% of the contract
value. FDR can also be accepted.
Bank Guarantee compared scrupulously with the standard pro forma given by Railway Board
Should be issued by Scheduled Bank only
Is executed on stamp paper of proper value ( In AP- Rs.100)
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CONSIDERATION OF TENDER BY TC
Sanction of estimate
Procedure of invitation and opening
Validity of tender
Eligibility of tenderers
Technical credentials
Financial capability
Manpower availability
Workload – Details of Assets
Litigation History
Special conditions by tenderers
Reasonableness of rates
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REASONABLENESS OF RATES
Average of recent accepted rates
Market conditions
Quantum of work
Site conditions
Nature of work
Period of completion
Idle capacity of contractors
Law & Order situation
Competition
Timing of tender
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RECOMMENDATIONS OF TC
Acceptance (unconditional or conditional)
Negotiations Not as a rule
only when substantial financial gains are expected
With lowest tenderer only
Within period of validity
Only with the authorised person
Discharge Ring formation
Insufficient response
Exceptional high rates
Special conditions
Unacceptable tender documents
Major modifications proposed
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RECOMMENDATIONS OF TC
All pages and correction to be signed by allmembers
Dissent should be within the minutes
No recording of notes or cross notes on file
Avoid subordinate staff
Retendering if L1 withdraws before tenderfinalisation (CVC guidelines)
Counter Offers
In case of R&C Tenders Opportunity for defaulting contractor
Tenability of R&C Tender
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ACCEPTANCE OF TENDER
AA has full powers to accept, modify orreject the recommendations of TC
Normally case not to be sent back to TC forreconsideration
AA should record reasons ifrecommendations are not accepeted
Acceptance shall be recorded on the bodyof the TC minutes itself
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TENDERS AND CONTRACTS
A VIGILANCE PERSPECTIVE
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ANALYTICAL STUDY OF VIGILANCE CASES
PERCENTAGE VIGILANCE CASES
ASPECT WISE
Selections,
Appointments&
Promotions
17%
Purchases
17%
Others
32%
Award of Tenders &
Contracts
34%
Award of Tenders &
Contracts
Selections,
Appointments &
PromotionsPurchases
Others
(34%)
(17%)
(17%)
(32%)
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BASIC ISSUES IN A TENDER
Whether the work was necessary?
Whether it was essential to get the work through contractual agency? In other words whether the work could have been done within existing resources?
Favouritism
High Rates – or combination of both.
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COMMON ALLEGATIONS IN TENDERS AND CONTRACTS
Favoritism i.e. Award of contract to favoured firm bypassing more deserving lower tenderer/s on flimsy groundsAward of contract at exorbitant ratesExecution of Substandard workAcceptance of Substandard SuppliesOverpayment / Payment of work not doneFailure to Carryout out Quality CheckMisappropriation of material by contractor in connivance with officials
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TYPE OF TENDERS AND THEIR COMMON IRREGULARITIES1. OPEN TENDERS
Most Widely Publicized in prescribed form
Any individual or firm can participate in the Open Tender
Basic Requirement - Free and Fair Competition
Tender should Normally be awarded to Lowest Suitable Tenderer
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COMMON IRREGULARITIES
(OPEN TENDER)
Inadequate Notice
Inadequate Time available for participation
Inadequate Publicity
Late availability of Tender Form, Drawing etc.
Tender Box not available in advance
Issue of tender form denied on the pretext of non fulfillment of eligibility criteria
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2. LIMITED TENDER
Tender Notice issued to selected firms
Firms short listed in advance, based on past experience, expertise, and specialization
List of selected firms require finance concurrence and competent authority's approval
Proof of Service necessary
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COMMON IRREGULARITIES
(LIMITED TENDER)
Arbitrary selection of firms
Firms with better experience ignored and firms with dubious credential selected
Inadequate time given for participation in tender
Tender Notice not sent to all the firms
Bogus firms selected to inflate the number
Rates becomes very important as the competition has been restricted
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3. SINGLE TENDER
Tender is invited from single pre- selected bidder of proven capacity
Used in emergencies and exceptional cases
Where other tender routes can not be followed due to exigencies of given situation
When item is propriety item or only one firm is capable of doing the work
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COMMON IRREGULARITIES
(SINGLE TENDER) Projecting undue/ artificial urgency
Selecting unsuitable tenderer based on exaggerated credentials, ignoring his past failures
Accepting exorbitant rates on the grounds of urgency then merrily giving extensions with token penalty or without penalty
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IRREGULARITIES IN GENERAL Twisting, Suppression, exaggeration, Manipulation,
and Half truth by TC to
1. Depict better placed bidder as unsuitable or less suitable
2. Exaggerating track record of favourite bidder
3. Suppression/ down playing his past failures
4. Exaggerating past failures of his main rival
Contd.
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IRREGULARITIES IN GENERAL
5. Ignoring/Suppressing otherwise satisfactory credentials of main rival
6. Projecting the lowest rates of main rival as ‘unworkable’ on the basis of exaggerated estimated cost
7. Projecting undue/ artificial urgency and than bypassing lowest offer on the ground that agency has some other works on hand
8. Manipulating technical aspect to reject inconvenient bids on artificial grounds.
Contd.
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IRREGULARITIES IN GENERAL
9. Considering tender on extraneous conditions not included in the tender
10.Falsely Certifying that the quality of product/ material offered by favourite firm as okay vis-a-vis specifications
11.Deliberately painting the quality of product offered by the better placed bidder as unsuitable
12.Exaggerating capacity/ resources of favourite contractor and downplaying that of his rival (lower bidders)
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APPOINTMENT OF CONSULTANT
Consultant appointed or Consultancy contract awarded when absolutely essential.
Awarding consultancy contract in transparent and fair manner.
The consultants role should be well defined as well as payment conditions.
No change of payment conditions after award of contract to the disadvantage to Railway.
The payment made to consultant should be commensurate with the work done by them.
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ELIGIBILITY CRITERIA
Eligibility criteria for tendereres is provided in some of the tender to have experienced and resourceful contractors for timely and proper execution of works.
It is observed that at times this eligibility criteria is loosely and selectively applied in various tenders to favour particular firm.
It is expected that eligibility criteria is applied in true spirit and uniformly keeping basic objective in mind.
It should not to be used as a tool to eliminate unfavourable lower bidders.
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RING FORMATION
Ring/ Cartel formation among the bidders leads to elimination of competition and award of contract at exorbitant rates.
At times it is done with active collusion with officers concerned.
The ring formation becomes more important in case of limited tenders thus an attempt should be made to identify sister concerns.
In case of suspected ring formation with high rates, tender cancellation is advisable
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AWARD OF TENDER AT EXORBITANT RATES
Due to high pitching estimates.
Tenderers are guided by estimated cost given in NIT and often estimated cost are used to assess reasonability of rates.
Picking up ‘Comparable rates’ selectively.
Preparing rate analysis after the opening of tender to justify the high rates received.
Unrealistic short completion period may lead to high rate.
Contd.
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AWARD OF TENDER AT EXORBITANT RATES
By assuming unreasonably high rates towards transportation cost, labour cost, local taxes, inflation etc.
Modifying description of items to make them Non-Stock items in case Of Stores and Non-Schedule item in case works items leading to purchase/ execution of works at high rate.
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POINTS TO BE KEPT IN MIND Tender opening register must be maintained in which
rates and special conditions quoted by tenderers are recorded.
This must be signed by tenderers present at the time of opening.
Delayed tenders i.e. received between closing of box and opening of tender to be opened by tender opening officials and marked distinctly.
Contd.
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POINTS TO BE KEPT IN MIND
Late tenders i.e. received after opening of tender - to be opened by executive and marked distinctly.
Under no circumstances no member of TC should refer the case to any officer/staff under him for scrutiny / comments.
Contd.
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POINTS TO BE KEPT IN MIND
Rate register should be maintained religiously in which accepted rates are recorded chronologically and any adverse remark regarding their non-comparability should also be recorded.
The register can be referred to see that the rates LAR taken in briefing note are representative
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82
EXECUTION OF CONTRACT
Failure to incorporate accepted tender conditions in contract agreement
Introduction of condition having financial implications
Change in specifications during execution
Altering the location or nature of work giving undue advantage to tenderer
contd.
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017
83
EXECUTION OF CONTRACT
Unreasonable Variations in terms of
Quantity
Items
Introduction of New Non Schedule Items
Transportations from much higher lead than intended in tender
Acceptance of material of inferior brand then specified in Contract Agreement
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017
84
OVER PAYMENT
Temporary overpayment in Running Bills
Payment in anticipation of work to be done or supply to made
Final overpayment
Payment for the services not rendered
Inflated measurement
Multiple measurement
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017
85
EXECUTION OF SUBSTANDARD WORK
Acceptance of under specification work or supply
Not following laid down procedure
By passing certain processes
Not conducting requisite tests
Use of un passed raw materials
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017
86
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87
LATEST GUIDELINES ON TENDERSNo Risk and Cost Tenders
SD shall be 5% of the contract value and shall be recovered fromrunnng bills only @ 10%. BG, FDRs etc are not to be considered
PG shall be in the form of irrevocable BG issued by nationalisedor scheduled bank – 5% of the contract value. FDR can also beaccepted.
PG shall be furnished by the successful contractor within 15days from the date of issue of acceptance letter & before thesigning of the contract and valid upto expiry of the maintenanceperiod
Clause on Conservancy Charges
20% Limitation clause on claims amount (for referring toarbitration) should be kept in BOLD letters.
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017
88
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017
89
THANK YOU
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90
