UNIT 5
Tendering and Execution of Work
- Tender is written offer submitted by the contractor for carrying out the work or given the notifications or supply of some specified articles and materials ( transport) certain rates with some terms and conditions hold in the tender document.
- The form in which it is said to be submitted is supply by department so that eligible contractor on usual payment of cost
- The tender filled in placed of tender box with locking arrangements kept in room of officer inviting tender on or before specified date and hours notified through tender notice.
- There are three method of invitation of tender,
a) Public tender or open tender.
b) Private tender or limited tender.
c) Single tender or negotiated tender.
This above method explain at follow: -
a) Public tender or open tender.
- Tender is invariably invited by in open or public manner by giving advertisements in local newspaper or by notice in regional language.
- For work costing more than Rs. 25,000/- tender notice should be published in local newspaper.
- All public work are invariably to advertising in local newspaper by gives public tender notice so that any eligible new contractor can submit his tender and also all contractor are given equal opportunity.
- This there is chance of getting the work execution of project at the cheapest rate.
b) Private tender or limited tender: -
- In this case, tender are invited from the limited number of reputed contactor for proposed work.
- This result into fair competition on the limited scale and also eliminates new inexperienced contractors.
- This method is advantageous for works of specialized nature which an ordinary new contractor will not able to complete its satisfactorily.
c) Single tender or negotiated tender: -
- This is quite to the private tender but instead of invited tender from limited contractor, it is invited from single well known reputed contractor.
- This method is adopted in case of executing of work of specializes in nature or for supply of article of proprietary nature.
- As there is no fair competition, this method prove to costly.
- The method is also followed for the purchase of material including under the rat contract system.
- The notice inviting tender paper is very important document on which tender and respective agreement with the contactor are based.
- Tender notice should gives the idea reasonable time for completion of work.
- All tender notice should display as per standard form of the department.
- It is displayed in notice board of division and also calculated to related sub division and other division of the department.
- For wide publicity of tender, it is also published in local newspaper.
- In minimize the advertisement change into short tender notice should be given in tabular form which contain essential information as below:
1) Name of authority inviting tender.
2) Particulars of contractors eligible time submit tender.
3) Name of work and it’s location.
4) Estimate cost of work.
5) Price of tender from and other tender documents.
6) Earnest money to deposited.
7) Time of completion.
8) Last date of sale of tender paper, last date of permission.
9) Last date sale of tender paper, last date of permission also time of opening of tender
10) Accepting authority.
Notices inviting tender,
Tender No. -
Seated tender are invited for the following works from experience bonafide and resourceful outside contractor for the under mentioned works by executive engineer.
Name of work | Estimated cost | Price tender form and schedule | Earnest money | Time of completion | Accepting authority |
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(b) |
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- Preparation of detailed specifications and draft contract documents.
- Decision on whether to use open or restricted tendering.
- Determination of realistic schedule for tender process.
- Advertisement of requirements, tender procedure to be followed and schedule for expression of interest or submission of bids.
- Sending out of pre- qualification questionnaire.
- Issue of invitation of tender and tender documentation.
- Specifications and other tender documents.
- Submission of complete tender or bids.
- Opening of tender on the given date, in presence of appointed officers.
- Logging of received tender.
- Analysis of each tender, with view to selecting best offer.
- Post tender clarification.
- Award of contract.
- In this method, the financial stability and competency of contractors is determined before tenders for project work are invited.
- After contractors are Prequalified, then tender forms are supplied for only eligible contractor who possesses requisite qualification of job.
- The contractor are classified based on financial status and technical capability.
- Before 6th September 1982 the contractor were classified as A1, A, B, B1, C, D, and E but after September 1982 they classified In Roman wording
- Contractor has sent to standard application form giving all detailed information regarding his part experience are carry our same work on hand present, financial status, tools and plants and equipment available for executing work.
Advantage: -
1) The selected contractor are capable of executing the work they are qualified to do job.
2) Fair competition is only for eligible and qualified contractor can submit their tender, there will be fair competition amongst qualified contractor.
3) Its helps to elimination of unqualified contractor i. e. The contractor unqualified for work can not apply, therefore their time, energy etc, in filling tender from is saved.
Disadvantage: -
1) No. Open competition: - It’s only for qualified contractor have to apply for work.
2) Complicated application from: - Any ordinary contractor may not be able to fill the complicated application form correctly.
3) Malpractice in classification: -There is every possibility of malpractice at a time of pre-qualified of contractor.
The various terms and conditions of contract which are formulated to inviting tender for civil engineering work are as follows: -
1) The Notice Inviting Tender (N.l.T) is standard approval from of department.
2) Tender form with standard conditions of contract.
3) Schedule of quantities of work to be done and material, tools, and plants to be supplied by department if any.
4) Special terms and conditions.
5) Complete specification of the work to be executed.
6) One set of approval drawings where necessary.
7) All the above document are signed by contractor page by page, necessary entries are made a forwarding letter on letters head of contractor with bank draft are put in closed cover.
- The cover is then sealed and dropped in the tender box within the time limit for tender.
- The name of work and name of the contractor are Superscripted on the cover.
- Before invited any tender then detailed estimate of work which is show the quantities of all work to be done, their rates and total amount along with specification to be adopted is to be prepared and sanctioned.
- Bid capacity is the capacity or the competence of bidder for proposal project work are execution
- On the basis of bid capacity of bidder it can be decided that a particular one is capable enough for execution of new proposed work on the basis of past project works.
- The value of bid capacity can calculate as ( 2 x A x N) -B
- Where,
- A = Max value of work complete in any one year since from during last five years.
- N = Number of year recommended for completion of given contract.
- B = value of present price level of an existing obligation and on going work to be completed in the next ‘N' years.
- It is the percentage rates and lumps sum tender are made but by officer opening the tender in PWD form.
- It contains various information regarding the name of contractor, date of receipt of tender, percentage above or below the rates entered in the document, amount in case of lump sum tender.
- Comparative statement of item rate tender is more elaborate and comprehensive is drawn up in PWD office after complete computation and check under supervision of divisional accountants.
- On this basis of it is the divisional officer has to make an intelligent scrutiny himself.
- The comparative statement is currency incorporate the amount of rate and total drawn up and check on individual tender.
- If acceptance of particular tender does not rest with divisional officers so that he can to forward the tender along with comparative statement and tender documents with his recommendation to next higher authority for consideration and order in sealed cover.
- The conference organized by the authority or owner before the last date of submit the tender is called as pre- bid conference.
- The main purpose of this conference is to clarify the doubts of proposed project and to answer – question of any matter that may be raised the stage.
- It’s organized at the place near to proposed work in site.
- The time and date of that conference is mentioned in tender notice or tender documents.
- Then, the interested contractor may be attained the bid conference on their own cost. The contractor get the actual idea about the work and then to fill contract form without any doubt.
- The bidder is requested to submit their question in writing before one week of meeting. All doubt are clarified this meeting by authority.
- Any modification of bidding document is become important as a result of pre bid conference meeting.
- Non attendance at the pre- bid meeting which is not cause for disqualification of bidder.
- After investigation the comparative statement in lowest tender shall accepted the rules by competent authority.
- When big work having cost more than 1 lakh is divide in various components parts of sake for quick completion of proposal work.
- For the tender reason, the tender for each section which is treated as part of tender in whole part of work.
- No tender can be accepted: -
1. When the tender is informal.
2. If it involved liability exceeding the amount of expenditure sanctions.
3. If there is any uncertainty.
4. If it exceeds the amount up to which is empowered to accept tender.
5. If adequate competition and fair rates are not receive.
- When single tender is received but it should not open and accepted.
- The power of various officers of department having districted to some entent which is regarding to accept of single tender.
- After decision to accept tender has arrived at letter communicating such as accepting on behalf of president of India or Governor of state to create the issue to contractor at earliest possible opportunity to complete formalities of contract.
- This letter carrier further direction of contractor to execute and completed the formal contract.
- The acceptance letter remains operative the formal agreement us execute and sign by authority of respective department and contractor, after which acceptance letter will be merged is said are formal agreements.
- Copy of letter also forward to regional labour commissioner income tax officer and labour officers.
- Specimen form of letter accepts the tender, by register post. And after that copy of this letter is forward to following department at officers.
1. Assistant labour commissioner (central)
2. Conciliation officers.
3. Income tax officers.
4. Labour officers.
a) Rejecting the lowest tender: -
- Tender can be rejected under following situation: -
- If tender is not submit by in particular form sold by the Department.
- Earnest money required which is not enclosed along with tender.
- When contractor has put some conditions which are not accept to department.
- The lowest tender has become bankrupt so that no sufficient amount to finance of the work.
- Lack of experience: The contractor not have necessary experiences of the particular work to execute.
- Bad reputation: - The lowest tender having earned bad name in market, so that it reject it.
b) Rejecting all tender: -
All tender can reject under the following conditions: -
- After the publication of tender notice, if is found that change in design are found essential.
- If it is suspected that there is collision among the contractor.
- The lowest tender has quoted very high rates than estimate rates.
Definition: -
- It defined as, the arrangement in which the private sector build an infrastructure projects operated it and it transfer owners of project to the government.
- It is also called as P. P. P. ( public privy partnership).
- Contract is agreement between in two parties under certain terms and conditions in thus basis contractor under take the execution of work certain amount from the owner.
- Important types of contract are lumpsum contract item rate contract, percentage contract, cost plus percentage contract, labour contract, demolition contract,
- Various documents required for registration of contractor.
1) Registration form.
2) Attested copies of partnership deeds and powers of attorney.
3) List of work in hand.
4) List machinery and equipment.
5) Income tax clearance certificate.
6) Solvency certificate.
7) List of technical person with the company.
- Classes of contractor and their capacity of execution of work are: -
1) Class 1 – no limit.
2) Class 2 – upto 3 crore
3) Class 3 – upto 1 crore
4) Class 4 – upto 30 lakhs.
5) Class 5 – upto 15 lakhs.
6) Class 6 – upto 5 lakhs.
7) Class 7 – upto 2 lakhs.
- BOT is form of projection planning and financing which is private entity received the concession from private or public sector for the finance design, construct and operates of facility for a specified period.
- After the concession period ends, owernship is transfer back to granting authority.
- Various forms of B. O. The. Tender: -
- BOT is just one of different project delivery scheme within the context of privatization of private public partnership.
- The two scheme that appear similar to BOT are Build Own Operated ( BOO) and Build Transfer Operates ( BTO).
- In BOT, the private party transfer the ownership of facility directly after the delivery and operates the facility on behalf the principal.
- In BOT, the private party retain ownership facility makes return on investment by operating for it useful life, may sell it any point market value.
- Various BOT forms are following: -
1. B. O – Build, Operate.
2. B. O. T – Build, Operate and transfer.
3. B. O. Q – Build, own and operate.
4. B. O. O. T – Build, Own, Operate and transfer.
5. B. T – Build transfer.
6. B. T. O – Build, transfer, operate.
7. B. L. T – Build, lease, transfer.
- Ex: - Countries using BOT India, Japan, Croatia, Malaysia, etc.
Objective: -
- To develop infrastructure in that area when government does not have sufficient funds for development of an area.
- To construct facilities in like good road water supply scheme bridge, express highway in partnership with private sector.
- To maintain road bridge tunnel in good condition.
- To provide facilities to public at reasonable rates of toll as well as tax for work which is complete on basis of BOT.
Scope: -
- There is a need of developing good network of roads, highway, bridge, railway, low cost, housing, to provide facility to the public.
- All these development by government department is department due to paucity of funds. These development can be done partnership with the private sector.
Advantage: -
- All these type of development by government department is possible due to paucity of found. These development can be partnership with the private sector.
- On completion of project, the expenditure incurred will be collected by or toll and this amount can be used for maintain of project.
- Quality of work is good since public private partnership is these for construction of project.
Disadvantage: -
- Private section have monopoly operate the project.
- Toll be collected by private financing body which revised every year which is have extra burden on public.
- Private builder is not maintain it is good condition and government or public have to take help of court of law..
- For big and special project or design of manufacture, sometimes global tender are invited by the authority concept though the world so to gies maximum competitive offer from various reputed firms or experiences manufacture throughout the world.
- The particular and content of tender notice is same as that ordinary tender notice.
- Only global tender notice written on heading of notice inviting tender.
- It is circulated in the reputed news paper which cover the outside country.
- Besides this is also circulated through embassies office located at different Important country through the globe or world.
- It is also known as procurement.
- It is business to business or business to consumer or business to government purchase and sale of supplies, work and service through the internet as well as other information such as electronic data interchange.
- It is useful to increase efficiency and cost savings in the government tender and improve transparency in tendering service.
- It is process of carry out whole tendering cycle online including submission of price bid like efficiency, economy, speed of Internet, can be harnessed.
- E- tendering cycle can divided into following key modules: -
1) Tender notice creation.
2) Tender promotion.
3) Tender document.
4) Pre- bid meeting.
5) Bid submission.
6) Payment gateway.
7) Tender storage and opening.
8) Tender evaluation.
9) Negotiations.
10) Tender award.
11) Vendor registration and rating.
12) Tender audit and storage.
- The total cost is based on estimate quantities for different schedule, this type of contract is called as item rate contact.
- These quantities are approximate and it vary according to different site contract.
- Hence, total amount tender or cannot taken as criteria for awarding the contract.
- In such case the best criteria is to check and analysis the rates quoted by different contractor for different work and that kind of tender is known as the unbalanced tender.
- For Example: Contractor ‘A' is not all gives any chance to site engineers for classification of soil but that soil is classified as soft or hard rock etc. So that he going to get some amount because of this unbalanced tender.
- Such unbalanced tender which will cause the considerable loss to department should rejected.
- For item rate tender contractor quote there rates for quantities and every separate item.
- But on this basis from the outside information a contractor nay quoted high price for items of work which are likely to increasing and low prices for this item of work which likely decreased.
- If contractor anticipation proves to be correct the tender become unbalanced and thus department lost heavily.
- To determine the bid is unbalanced, so that it to needs evaluated for reasonable conformance with engineers estimate.
- There are no specific parameter, such that amount of or percent of variance from engineer estimate.
- In this system, contract is set agreement and understand the assign the calls used by partnership and include a full description of meaning of each treatment and convention.
- Following types of bid: -
1.single envelopes bidding.
2.Two envelope bidding.
3.Three bid system.
1. Single envelope bidding: -
- Its consists of accepting both technical as well as commercial bid.
- In same envelope both technical and commercial bids are opened simultaneously and contract may be awarded on spot.
- These bids accepted by following criteria: -
1. Bill of material and quantity produced is fixed.
2.Requirement are standard as per market.
3. Single or limited tender without options was issued.
2) Two envelope bidding: -
- In such tender, technical bid including tender fees and END are submitted in one envelope as well as commercial bid is submitted in second envelope.
- Both envelope are in closed in a big envelope is sealed and submitted.
- First technical bid containing END is opened and price of bidder who are found technically qualified are open at later date.
3) Three bid system: -
- In such tender EDM is submitted in first envelope, technical bid is submitted in second envelope and then price bid is submitted in third envelope.
- In this system tender is invited in three bid system such as pre- qualification, price bid and technical bid.
- Expression of interest is invited for work which are specialized in nature through press advertisement.
- First EDM envelope as well as pre- qualification envelope is opened. Then technical envelope of only those bidders who was pre qualify is opened.
- At last only those who found technically qualified, then there price bid is opened.
PWD procedure of work Execution: -
A) Definition: -
1.Work:
- The work to be executed may be either public or private work, the former being construction by government and latter by an individual or private body.
- The expendable on public work is met from public funds and is dealt with here in after.
- It consists of all work pertaining to construction repairs, supply of material, carriage of tools and plants and supply.
2.Works expenditure and work outlay: -
- The term work expenditure and work outlay refers respectively to expenditure and ‘capital charge’ on the special service required fpr construction or maintenance of any work.
3.Appropriation: -
- It is the authority amount of expenditure can be incurred under major or minor head by discussing officer.
- Technically the term appropriate also refer to provision made in respect of charge expenditure.
B) Requirements of work prior to it execution: -
Before execution of any work is undertaken it is important to fulfill certain requirements as started below,
1) The work to executed have administrative approval from the concerned department.
2) The plan and detailed estimate prepare on basis of administrative approval should according to ‘technical sanction' from the state government.
3) Appropriate of funds to expenditure to assess on the original work during financial year in which work to undertaken.
4) Provision fpr annual repairs and maintenance of work in budgets of financial year and execution of work to extent of amount specified there it budget.
C) Classification of works: -
The classified the work as follows: -
- The term original work implies entirely new work or addition and alteration to existing work.
- It also include all repairs to newly acquired, purchased or previously abandoned property which are reuse again.
- The terms repair and maintenance includes all work undertaken to maintain existing buildings in ordinary working conditions.
- For each and every work it is important to obtain in the first instance the competent authority of administrative department requiring the work.
- The format acceptance of proposal by authorities is termed as administrative approval of work.
- It is duty engineering department requiring the work by administration to obtain requisite approval to it.
- An approximate estimate and this type of preliminary plan are necessary to explain the proposed work and submitted by engineering department to administration to obtain administrative approval to taken the work within sanction amount.
- After receiving the administrative approval all drawing parameters like detailed drawing, design and estimated cost are prepared by engineering department and submit to administrative department for sanctions.
- On the basis of priority of work and availability of funds admit approval is according by government to various new work.
Stages of administrative approval: -
1.Initiation of proposal from the concern department.
2.prepartion of block estimate by engineering department
3.Approval of competent authority of head of concerns department.
- It is annual financial statements showing the estimate receipt and expenditure is respect of financial year, before commencement of the year.
- To enable government to judge relatives urgency of demand and made against the amount likely to available for expenditure on different work head of account during ensuring year, Statement is accepted estimate known as budget estimate for next year are prepared and submitted to Ministry concerns.
- The estimate of expenditure required are voted by legislature.
- Late receipt of estimate retard the budget program and because considerable inconvenience.
- So that every endeavour is made to ensure their timely submission.
- Original estimate are prepared from the different division and then submitted to superintendent engineer.
- The chief engineer propose annual budget estimate after receiving the estimate from superintendent engineer under his control.
- The statement of budget are sent to secretary of department who is after scrutiny submit to minister concerns and to financial department.
- After administrative approval and expenditure sanctions then detailed estimate is sanction by competent technical authority of engineering department powered by government which to gives the estimate is accurately calculated based on data such that sanctions known as technical sanction
- It is taken before inviting tender to execute the work.
- After technical sanction is gives work is taken up for construction.
- In case of original work the counter sign of local head department which obtained in plan and estimate before technical sanction is according by engineering department.
- Actual work will be started only after to getting the technical sanction.
- Power technical sanction in up given by: -
1) Chief Engineer = Full power.
2) The superintending = Upto 15 lakhs Engineer.
3) The Executive = Upto 5 lakhs if estimate is on standard engineer design.
Following the different method of execution of minor work in PWD,
1) Piece work agreement.
2) Rate list.
3) Day work.
4) Daily labour.
This above method are explain in follow: -
1) Piece work agreement: -
- As name signifies the piece work agreement is only rate agreed upon without reference to total quantities of work done within period.
- In case of petty work value upto Rs. 10,000/- each inclusive of cost materials is carried through out contractor by pieces work agreement.
- This type agreement detailed specifications and total cost of whole work to mention.
- It is terminable from either side anytime and can not called contract in in true sense.
- Work execution under simple ‘work order agreement’ there is no security money and penalty clause.
Advantage of pieces work agreement: -
- Urgent small work may taken up execution without invited tender and consider time is saved.
- If contractor delay to execute the work or inferior quality of materials or leaves work partially complete, another contractor engaged at any time.
Disadvantages of piece work agreement: -
- Such type of small work approval of the contractor to find little interest and such work have to petty contractor having little experience in management system and adequate knowledge to carry out work according to department procedures.
2) Rate list: -
- Petty work consists less than Rs, 5000/- can be carried by piece worker as per ‘schedule of cost' which is known as rate list.
- The method is generally adopted when small urgent repairs work carried out immediately.
- As there is no mention to total quantities of work done or time of completion, it similar to piece work agreement system.
- The main drawback of both pieces work agreement and rate list if easy part of work is more.
3) Day work: -
- The method is generally adopted when small urgent repairs work carried out immediately.
- As there is no mention to total quantities of work done or time of completion, it similar to piece work agreement system.
- The main drawback of both pieces work agreement and rate list if easy part of work is more.
4) Day work: -
- The quantity which can not be expressed in terms of materials and labour arw specified in terms of actual labour hours required to complete job.
- Ex. Site cleaning, special type of works like architectural works, dismantling partition wall under water, taking of the roots of trees during earthworks in excavation for foundation trenches, etc.
- During execution of project there may be certain type of work which not included in schedule and can not paid measurements.
- A list of various classes of workmen charged in work and rate per hour are recorded.
- Similarly, the list of materials are required for work is also prepared.
- The price are to include cost of materials, labour, overhead, supervision charge and profit.
- Day work method of payments is usually confined to small items of work and may hourly basis so that payment made for actual period for which the labourers work.
5) Daily labour: -
- To execute work department daily labour like Mason, carpenter, etc. are engaged by the assistant engineer with prior approval from competent authority daily labour may be employed against.
- Muster roll is the wages of other day labour are drawn on muster roll and charge to work estimate on which they are employed.
- Muster roll for provide column for providing recorded attendance for a month but roll may be closed for payment earlier or complete of job.
- Payment is made by official of highest standing available at spot and proper acknowledges obtained on roll.
- Unpaid items are recorded in unpaid wages register for subsequent payments on hand receipt.
- Causal labour roll is the exceptional or urgent cases such flood, earthquake or closing of breaches, labour are employed casually for short period on this roll.
- The names of labour are not given on this roll.
1) The payment such case is made by Gazette officer.
2) Payment of daily labour through contractor is not permissible, but in case of emergency it is done. If nor rate could be find out finished work in case, the payment is made to contractor on basis of number of labour are employed day by day with his profit.
3) The use of muster roll and measurement book is not allowed in such cases.
- To execute particular work assistant engineer on site have to hire labour for daily work.
- The wages of other day labour are drawn out muster roll and charge to work estimate on which the employed.
- Muster roll provide a daily attendance for the worker who are working on site.
- Payment of those workers are made by official highest standing available spots and with suitable acknowledges obtained on roll and also unpaid item are recorded in the unpaid wage.
Description of work | Total quantity | Deduct quality as shown in the master roll | Balance | Rate of cost | Remarks |
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Measurement taken on - Date - Signature-
Measurement book No – Page no - Date -
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- The contractor interest in registering his name with the government shall submit an apply in following form to authority competent to sanction it.
- The applicants has to furnish document regarding his financial status support by certificate of solvency obtaining from district corrector or S. D. O. Of this district or certificate of bankers and also certificate of his regards to professional capacity and reliability from officers know to contractor.
- In addition to above, the contractor application to be accompanied by following documents,
1) Latest income tax clearance certificate.
2) Technical staff with quantification and experience employed by contractor.
3) List of machines possessed by contractor including it location, conditions etc.
4) In case of partnership firms and attested copy of partnership deed.
5) Copy of power of attorney duly attested.
6) The contractor has to pay half the register fee for class in which he intended to register himself.