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By B.Satish Babu, I.R.A.S Dy.FA&CAO/WS/Lallaguda,

Secunderabad

VIGILANCE AWARENESS WEEK 31st Oct to 5th Nov, 2011

Presentation on Vigilance awareness & Works matters

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“Do not overlook negative actions merely because they are small ; however small a spark may be, it can burn down a haystack as big as a mountain”

Lord Buddha

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T I – TRANSAPARENCY INTERNATIONAL

is the global civil society organisation

leading the fight against corruption.

More than 90 chapters worldwide

International secretariat at Berlin

Raises awareness of the damaging effects of corruption

Works with partners in Govt, business and civil society

Website : http://www.transparency.org

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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

The 2010 Corruption Perceptions Index shows 3/4th of the 178 countries in the index score – below 5points.

On a scale from 10 (highly clean)to 0 (highly corrupt)

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RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010 YEAR

Denm

ark

New Z

eala

nd

Sing

apor

e

Myn

mar

Afgh

anista

n

Som

alia

Indi

a

0

2

4

6

8

10 9.3 9.3 9.3

1.4 1.4 1.1

3.3

Corruption Perception Index on a scale from 10 to 0

Corruption Percep-tion Index on a scale from 10 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

. The Member(Staff)/ Railway Board is the functional Member in-charge of VigilanceHeaded by Adviser Vigilance

Assisted by various EDs followed by Joint Directors, Directors, Dy. Dir. & IIs.

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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&

Promotions17%

Purchases17%

Others32%

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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PREVENTIVE VIGILANCE

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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PREVENTIVE VIGILANCE

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’s1. 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’s5. 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’s9. 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

C. Composition/size/color/shape

D.Specification/drawing No.

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PREVENTIVE VIGILANCE-PURCHASES

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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PREVENTIVE VIGILANCE-PERSONNEL

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

A VIGILANCE POINT OF VIEW

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CVC leverages technology in their mission - how?

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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CVC leverages technology in their mission - how?

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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CVC leverages technology in their mission - how?

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CVC leverages technology in their mission - how?

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CVC leverages technology in their mission - how?

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 Lakhs done 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 Tenders Common 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 TENDERCOMMON 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.

IRREGULARITIES IN EXECUTION OF CONTRACT

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Waival of inspection or change in inspecting authority.

Relaxation of technically rigid requirements.

IRREGULARITIES IN EXECUTION OF CONTRACT

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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 place by an officer nominated in the presence of A/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 loose sheets attached by both executive & A/C rep.

Rates quoted should be circled.

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OPENING OF TENDERS (CONTD…)

Corrections, over writings & omissions to be numbered and written 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 tenderer should be read out and entered in the tender register in WORDS 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 3 years and current year should be brought out

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TENDER NOTICE

Tender Notice shall be issued atleast 30 days in advance from the date of tender opening

In case of urgency – 21 days with prior finance concurrence and approval of DRM

Issue of tender schedules – immediately after tender 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 made available on the website / in the office shall be clearly broughout in the Tender Notice

Eligibility criteria and similar nature of works should be specifically mentioned in Tender Notice and in the tender documents for OT above Rs. 50 lakhs

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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 a value 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 Accepting Authority is required for incorporation of similar nature of works other than those circulated by PHOD

Similar nature of work depends on the main element of the tender and shall be mentioned in NIT & Tender documents

Clubbing of dissimilar nature of works shall be avoided. If unavoidable, Eligibility criteria shall be indicated in NIT & TS after taking finance concurrence & approval of Tender Accepting Authority

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LATEST GUIDELINES ON TENDERS

SD shall be 5% of the contract value and shall be recovered from runnng bills only @ 10%. BG, FDRs etc are not to be considered

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.

PG shall be furnished by the successful contractor within 30 days from the date of issue of acceptance letter & before the signing of the contract and valid upto expiry of the maintenance period

Clause on Conservancy Charges

20% Limitation clause on claims amount (for referring to arbitration) 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 LISTPG 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 all members

Dissent should be within the minutes No recording of notes or cross notes

on file Avoid subordinate staff Retendering if L1 withdraws before

tender finalisation (CVC guidelines) Counter Offers In case of R&C Tenders

Opportunity for defaulting contractorTenability of R&C Tender

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ACCEPTANCE OF TENDER

AA has full powers to accept, modify or reject the recommendations of TC

Normally case not to be sent back to TC for reconsideration

AA should record reasons if recommendations are not accepeted

Acceptance shall be recorded on the body of 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&

Promotions17%

Purchases17%

Others32%

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 IRREGULARITIES

1. 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 to1. Depict better placed bidder as unsuitable or

less suitable2. Exaggerating track record of favourite bidder 3. Suppression/ down playing his past failures4. 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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82

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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83

EXECUTION OF CONTRACTFailure 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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84

EXECUTION OF CONTRACTUnreasonable Variations in terms of Quantity ItemsIntroduction 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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85

OVER PAYMENTTemporary overpayment in Running Bills

Payment in anticipation of work to be done or supply to made

Final overpaymentPayment for the services not rendered

Inflated measurementMultiple measurement

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86

EXECUTION OF SUBSTANDARD WORK

Acceptance of under specification work or supply

Not following laid down procedure

By passing certain processesNot conducting requisite testsUse of un passed raw materials

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87

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88

LATEST GUIDELINES ON TENDERS

No Risk and Cost Tenders

SD shall be 5% of the contract value and shall be recovered from runnng bills only @ 10%. BG, FDRs etc are not to be considered

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.

PG shall be furnished by the successful contractor within 15 days from the date of issue of acceptance letter & before the signing of the contract and valid upto expiry of the maintenance period

Clause on Conservancy Charges

20% Limitation clause on claims amount (for referring to arbitration) should be kept in BOLD letters.

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89

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90

THANK YOU