Contract Documents and Enforcement

151. Before a work is given out on contract, the authority competent to accept the contract must prepare "contract documents" to include-

(i) a complete set of drawings showing the general dimensions of the proposed work and so far as necessary details of the various parts-works to be done under lumpsum items in the schedule to the agreement should be clearly defined by specifications or drawings, as necessary-

(ii) a complete specification of the work to be done and of the materials to be used, unless reference can be made to specifications contained in the A.P. Detailed Standard

Para 154] Works 65

are already standard specifications, the numbers of the relevant specifications of the A,P, Detailed Standard Specifications should be referred to in the schedule attached to the agreement).

Note:-Items (i) and (ii) above are necessary for both piece-work contracts and contracts based on the lumpsum tender system.

(iii) a schedule of the quantities of the various descriptions of work. (This is necessary only in the case of contracts based on the lumpsum tender system as defined in the A.P.

Detailed Standard Specifications. In such a case, the total under the Schedule A of the agreement must be equal to the lumpsum entered in ihe agreement), and

(iv) a set of "conditions of contracts" to amplify as necessary the preliminary and other specifications of the A.P. Detailed Standard Specifications forming part of contracts based on the lumpsum tender system; (in the case of piece-work contracts, the conditions considered necessary for any particular case in addition to those printed in Form PWD V-51 should be attached to Ihe agreement).

152. The terms of a contract must be precise and definite - there must b^ no room for ambiguity or misconstruction therein. No contract involving an uncertain or indefinite liability or any condition of an unusual character should be entered into without the previous consent of the competent financial authority,

If the contract, even when it is within the powers of acceptance of the Executive Engineer, is to be of a very special nature, he should, before inviting tenders publicly, submit the contract documents to the Superintending Engineer for his approval or remarks together with a copy of the proposed advertisement for tenders and the form in which the tenders are to be submitted. The Superintending Engineer should similarly, when the amount of the contract is likely to exceed his powers of acceptance or when it is to be of a very special nature requiring in his opinion, the Chief Engineer's advice, submitting the contract documents to the Chief Engineer for approval.

153. Contracts should, where possible, be executed on one or other of the standard forms, but they may be modified to suit the requirements of any particular case, or for works of great magnitude, after consultation with the legal advisers of the Government. In cases where it is considered that none of the standard forms can be used even with suitable modifications, the contracts should be got prepared specially by the Government Law Officers.

Engineers and their subordinates are responsible that the terms of contract are strictly enforced and trial no Act is done tending to nullify or vitiate a contract.

All agreements entered into with the department by contractor for the execution of works are exempt from stamp duty.

III. Tenders

Note:—The latest orders of the Government are printed under the Chapter 'Tenders' in Part II of this book.

154. Tenders, which should always be sealed, should '"•- invariably be invited in the most open and public manner possible, whedier by advertisement in the Government Gazette or local news papers, or by notice in English and the vernacular posted in public places, and tenderers should have free access to the contract documents. The Officer opening the lenders should invariably date and initial on all the pages of the lender document.

(G.O.Ms. No. 1597, P.W.D., Dt- 18-6-1965) [DCODE-5]

The notice should in all cases state-

(i) When and where the contract documents can be seen and the blank forms o tender can be obtained and also the amount to be paid for set of plans or other tend;

documents;

[(ii) When and where tenders are to be received and opened, the date of receipt) tenders should be atleast 15 days for works costing Rs- 1.00 lakh and less, and 21 days a works costing more than one lakh and upto Rs. 5.00 lakhs and one month or more for wd costing over 5 lakhs from the date of issue of the Chit tender notice].

[G.O.Ms.No.1007, T.R. Ss. B., Dt. 5-11-1971

Note:-Sale of tender schedules should be stopped three clear days before the date fixed f receipl of tenders. The officer issuing tender notice may reduce the time for any spedi reasons to be recorded.

(iii) [The amount of earnest money to accompany the tender shall be \Vi% of theestimated amount of the contract, subject to a maximum of Rs. 1.00 lakh in the case i contractors, who have not deposited a lumpsum of standing security deposit of Rs.l.O lakh with the Chief Engineer, concerned, and 1 per cent only subject to a maximum (Rs.75, 000/- in the case of Contractors who have deposited a lumpsum of standing securil deposit ofRs.1.00 lakh with the Chief Engineer concerned].

{Sub, by G.O.Ms.No. 4710, Tr,, Road & Bids, (CI) Depts., Dt. 7-10-19^

Note .'--Minor Irrigation works in Telangana area under the administrative control of P.V Department entrusted to the ayacutdars for execution are exempt from the collection i earnest money deposit.

(iv) With whom or what authority, the acceptance of the contract will rest.

No tender should be accepted from a person who has been or who has in h employ, a person who has been in the Gazetted Service of Government in any capacity and has retired within a period of two years prior to the date of lender, except in case where the officer concerned has obtained specific sanction of Government to do so prii to the date of tendering. Such tender, if accepted, because such information has not bet furnished by the tenderer, shall be cancelled when the fact of such tendering comes to the notice of the tender accepting authority. (G.O.Ms.No, 1845, PWD, Dt. 8-9-196

Authority should always be reserved to reject any, or all, of the tenders so receivt without the assignment of a reason, and this should he expressly staled in the advertisemel

In the case of works to be given on contract based on ihe lumpsum lender, , defined in the Andhra Pradesh Standard Specifications, the forms of tender notice a;

tender (standardized as P.W.D. Forms No. V-53(a) and 53(b) should be used with sui modifications as any particular work may require.

No tender should be accepted from any person directly or indirectly connected wi the Government service - vide Paragraph 72 of this Code.

The Executive Engineer or the Superintending Engineer, as the case may be, shou open the tenders in the presence of the tenderers or their authorized agents who may choo to be present at the time. The officer opening the tenders should invariably date and in its not only the corrections in the schedule of quantities, schedule of materials to be issue specifications and other essential parts of contract documents but should invariably day and initial all the pages of the tender documents irrespective of whether they contain or i

Para 154] Works 67

not contain any corrections, over writings, etc. If there are corrections in the tender unattested by Ihe tenderer, a note of such corrections should be made on the tender itself, when it is opened - vide Paragraph 9 of the Standard Tender Notice PWD Form No.l5 (a).

The Officer opening the lenders should keep a personal note of the total number of tenders opened by him and verify therewith the number in the comparative statement of tenders.

Tenders should be decided within a period of one/two/three months after the expiry of last date prescribed for the receipt of the tenders by the Executive Engineer/Superintending Engineer/Chief Engineer respectively and the decision regarding the disposal of tenders should be indicated at any time wilhin the said period.

During the above mentioned period no plea by the tenderer for any sort of modifications of the lender based upon or arising out of any alleged misunderstanding or misconception or mistake or for any reason is entertained.

(G.O.Ms.No. 271, PWD, Dt. 20-2-1970) Instruction

Acceptance of tenders - correction of rates in tenders - Instructions - Issued.

[Memo.No. I36/COD/80-1. I. & P. (PW) Dept.. Dt. 19-2-1980]

Ref. —Govt-Memo.No. 16-Y/72-^, PWD, Dt. 13-3-1972.

Order :-Certain general institutions have been issued through the Govt. Memo.

referred to above regarding the acceptance of tenders. A question has raised whether, after opening of tenders if any contractor makes a representation regarding an error that has crept through oversight or inadvertence if any of Ihe rates quoted by him, the revision requested for could be taken into account in evaluating the lender.

Government after careful consideration are of the view that by the very nature of submission made by the tenderer and the facts of the case, it should be possible for the lender deciding authority to ascertain whether it is a case of genuine error out of sheer oversight or inadvertence or it is a case of deliberate attempt to under bid in the first instance and being lowest try to gain advantage by enhancing the rate still below the next higher tender. This can be done by a comparison of the rate quoted with the estimated rate and the rates bid by other tenders for the item in view. In the former case (Oversight or inadvertence) the bid should be corrected according to the request of the bidder and evaluated for further consideration. In the latter case the tender should be summarily rejected and/ or such action taken against the tenderer as is permissible under the conditions of the bid or the rules of Registration of Contractors.

After the receipt of the comparative statement and before the selection of a tenderer, the officer concerned should examine all the tenders and satisfy himself that no corrections which were not in that tenders at the time he received them had been made in any of them.

Note 1:—Tenders should invariably be called for when the amount involved in a particular contract is [Rs. 5,000/-j or more. If it is proposed, in any case whether for urgency or any other reasons to be recorded, to depart from the rule, works may be entrusted on nomination at rates not exceeding estimate rates by the Executive Engineer, Superintending Engineer or Chief Engineer uplo the following limits indicated against each.

68 A.P. PUBLIC WORKS DEPARTMENT CODE Executive Engineer Rs. 10,000 Superintending Engineer Rs. 25,000 Chief Engineer Rs. 50,000

When tenders are dispensed with in the case of contracts exceeding Rs. 20,000 i report should be made by the officer entrusting the work on nomination to the no;

higher authority indicating the reasons far dispensing with the lenders. When the amount involved is less than [Rs. 5,000/-] the Executive Engineer may call for tenders or not at his discretion.

[Insl. by G.O.Ms.No. 361, Tr, R & B. (B.I) Dept., Dt. 2-9-9S5

This rule docs not admit of a major work being split up inio parts and each part beim given out on contract without calling for lenders.

Exception:—This rule shall not apply to road works in the Agency tracts. In the case of suet works. Executive Engineers are authorised to exercise their discretion as t( whether lenders should be called for or not, even though the amount involves may exceed the limil of Rs- 2,500/-, In cases where the Executive Enginee decides not to Rail for tenders, the reasons for the decision should be recorda by him.

Note 2 :— Notices calling for tenders should invariably be published in prominent local newspapers in respect of all works costing over Rs. t,00,000/-.

Note 3:— The Chief Engineers may authorize dispensing with tenders in the case of