Karnataka



REGISTRATION OF CONTRACTORS IN PWD  KARNATAKA

The contractors in the Public Works Department  shall be registered under the following four classes. These rules of registration of contractors supersedes the existing rules vide Government Order NO. PWD CRM 91dated 27/10/1994.

  • Class I:               Qualified to tender for works up to any amount
  • Class II:             Qualified to tender for works up to Rs. 5.00 crore
  • Class III:            Qualified to tender for works up to Rs. 2.00 crore
  • Class IV:            Qualified to tender for works up to Rs. 25.00 lakh

In this rules works means construction / improvements or repairs to any buildings, roads, bridges etc. Cost means amount put to tender.

The Electrical contractors shall get themselves registered with the Government Chief Inspector of Electrical / BESCOM / KPTCL. The same shall be accepted by the officers of the Public Works, Ports & Inland Water Transport Department for the electrical works of the department and no separate registration in the department shall be insisted.

Registration Authority:

The registration authority in respect of Class I and II shall be the Chief Engineers (C&B), Class III the Superintending Engineers of Public Works Department and in case of Class IV the Executive Engineers of Public Works Department.

Jurisdiction:

Contractors registered under Class I and II may tender for works anywhere in the state. Contractors registered under Class III may tender for works within the districts of the Public Works Department circles where in they are registered. Contractors registered under Class IV may tender for works within the district or within the division whichever is applicable, where they are registered. These registrations are valid for all works undertaken by all the Government departments, Government undertakings in the respective jurisdictions. No separate registration is required in other Government departments and Government undertakings. This registration procedure is based on the single window concept.

Qualifications:

The following qualifications are laid down in regard to registration of the different classes of contractors.

  • Class I:  Contractors shall have completed at least one single work in all respects, the cost of which is not less than Rs.5 crore and the total turnover should be over Rs.15 crore in the preceding five  years. 
  • Class II: Contractors shall have completed at least one single work, in all respects the cost of which is not less than Rs.1 crore and the total turnover should be over Rs.3 crore in the preceding five years.
  • Class III:  Contractors shall have completed at least one single work, the cost of which is not less than Rs.50 lakh and the total turnover Rs 1 crore in the preceding five years.
  • Class IV:  Contractors shall have completed at least one single work, the cost of which is not less than  Rs.5 lakh and the total turnover Rs 15 lakh in the preceding five years.

Note: 1. In case of class I, the work done by subcontractors shall be considered for work qualification, provided the subcontracting was done with the approval of the employer or the Executive Engineer under an agreement, payments were received by cheque and / or declared as such in their income tax returns. If required by the registering authority the contractor shall provide agreements of the main contractor and such additional documents necessary as proof and shall be prepared for verification. Verification shall also be made with the income tax authorities about declaration of income received from subcontracts only when it is required.

Work Qualifications:

Certificates of work qualification in respect of Class III and below need not be confined only to Karnataka and central Government works & Karnataka and central Government undertakings. Authenticated certificates from private sector and public sector undertakings may be accepted for purpose of registration, after such verification as may be necessary.

Such certificates need not be insisted in case of graduate engineers and diploma holders when they register themselves as contractors of Class III and Class IV respectively.

With regard to contractors of Class I and Class II, the works qualification shall be confined to works relating to:

The Government of Karnataka, Central Government, and other state Governments.

The Government of Karnataka undertakings and the Government of India undertakings.

The Boards/ Universities / Corporations/ Authorities constituted by Government of Karnataka and other state Governments and central Government.

In case of a new contractor or a contractor who does not have the works qualification specified above for a class for which he applies, the appropriate registering authority may after satisfying itself about the financial ability and qualifications of such an Engineering Applicant applicant, award one or two works to him and after he executes the work/works satisfactorily, register his name in the appropriate class, the first registration in such cases shall not be for a class higher than Class – III.

Application for Registration:

A contractor shall first apply for registration in the prescribed form PWF-14 annexed to the rules to the appropriate authority viz., the Chief Engineer(C&B) or the Superintending Engineer or the Executive Engineer of Public Works Department.

The application for registration in the prescribed form PWF 14 shall be submitted to the authority competent to effect registration and it shall be accompanied by the following documents:

(a). A challan for having credited to Government a non-refundable sum of Rs. 10000 being the registration fee in case of Class I, Rs. 5000 in case of Class II, Rs. 3000 in case of Class III and Rs. 2000 in case of Class IV contractors.

Registration once done shall be effective for a period of five years from the date of registration.

A residential certificate to be obtained from the revenue authorities not below the rank of Tahsildar or an officer not below the rank of the chief executive officer of the concerned local authorities or identification card issued by the Election Commission of India or Ration card issued by the Food & Civil Supplies Department or Pass port issued by the Pass Port authority of India should accompany.

A certificate of solvency in the prescribed form obtained from the Deputy Commissioner of the district concerned or a scheduled bank; in the case of Class I-Rs.100 lakh, Class-II – Rs. 50 lakh, Class-III contractors to the extent of Rs.25 lakh ; in the case of Class IV contractors to the extent of Rs.10 lakh shall accompany.

A certificate issued under companies act in the case of firms or companies.

Income Tax Clearance Certificate.         

Application shall be submitted in the prescribed form for registration together with three passport size photographs of the contractors in whose name the registration is sought for.

A Registration certificate shall be issued retaining one copy with registering authority.

In case of partnership firms the photograph of all the partners shall be furnished. Photograph of the managing partner shall be affixed in the registration certificate. After receipt of application, preliminary scrutiny shall be conducted to verify whether the particulars, annexure etc. have been received correctly. An acknowledgement also indicating the probable date of issue or registration certificates shall be sent to the contractor in form PWF-14.2. A 30 days time limit is fixed for issue of registration certificates. Any contractor submitting the documents and application in complete shape with the requisite fees is eligible for registration, and hence there should be transparency and quick processing of applications.

Registration certificate shall be in form PWF- 16 which includes details of tenders purchased as well as details of work awarded and carried out.

This registration book shall be produced at the time of issuing work order for making corresponding entries in Part II and III respectively. In addition, the book shall be produced as and when required to ensure up to date entries of all columns.

DOCUMENTS REQUIRED FOR REGISTRATRION OF CONTRACTORS:

Sl. No Documents required Class I Class II Class III Class IV
1 Registered pass book (After completion of one year in each class) Class II Class III Class IV -
2 Work done certificate Rs.10.00 lakhs Rs.5.00 lakhs Rs.1.00 lakhs -
3 Bank solvency Rs.10.00 lakhs Rs.5.00 lakhs Rs.1.00 lakhs Rs.20,000
4 Registration fees Rs.1000/- Rs.500/- Rs.300/- Rs.200/-
5 Residential certificate Required Required Required Required
6 Photos 3 Nos 3 Nos 3 Nos 3 Nos
7 Degree certificate (consent letter) BE Civil or equivalent BE Civil or equivalent BE Civil or equivalent  
8 VAT Rs.500/- Rs.500/- Rs.500/-  
9 NSC Rs.500/- Rs.400/- Rs.300/- Rs.200/-
10 Admissible tender amount for participation Rs.25.00 lakhs & above Rs. 10.00 to 25.00 lakhs Rs. 1.00 to 10.00 lakhs Up to Rs.1.00 lakhs
11 If partnership firm, deed copy and affidavit of declaration as registered firm.
12 If registered, company memorandum, article of Association and Registered copy and also affidavit of declaration of all Directors.
13 For electrical Registration, license from Electrical Department

 

Appointment of technical personnel by the contractors:

Class I and II contractors shall engage at least one civil engineering graduate for every work costing Rs.15 lakh and above and also an electrical engineering graduate for building works of the same magnitude. Class III contractors shall engage at least one engineering graduate in civil engineering for every work Rs.10 lakh and at least one diploma holder in civil engineering on every work or group of works together costing more than Rs.5 lakh but less than Rs 10 lakh. The appointment orders and other educational qualifications are required to be produced at the time of executing agreement.

Provided that if the registered contractor himself possesses the qualifications prescribed above for the technical personnel and is able to spend the required time at site, the requirement of the appointment of technical personnel need not be     insisted on.

For Class IV contractors, it is sufficient if the contractor has in the opinion of the registering authority gained experience and possesses the necessary works qualification.

All engineers, both graduates and diploma holders shall be fully computer conversant with information technology oriented construction management practices such as e-monitoring, e- tendering etc.

Renewal of Registration:

Every registration effected and every certificate of registration granted under these rules, shall be valid form the date of registration of grant, for a period 5 (five) years. Such registration may be renewed for a further period of (five) years, on application for renewal of registration in form PWF-14 itself, which will be subject to all the conditions laid down in these rules for first application for registration including payment of renewal registration fee as under for each category:

  • Class II Contractor    -           a fee of Rs.2000/-
  • Class III Contractor   -           a fee of Rs.1500/-
  • Class IV Contractor  -           a fee of Rs.1000/-

Application for registration /renewals should be submitted to the registering authorities one month in advance of the expiry date and registering authorities should see that all applications for registration / renewals are promptly disposed off within 30 days of receipt or earlier. The production of works qualification certificates need not be insisted at the time of renewal of registration.

The competent authority accepting the registration shall not delay the registration due to omission of certain documents while submitting application for renewal in time so that the contractors are not denied the benefit for tendering for works, due to these procedural delays.

The solvency certificate should be produced during first registration and once in five years, at the time of renewal.

The registering authority is empowered to grant time for the production of such documents up to a maximum of 90 days and failure to produce the documents within the granted grace time would automatically cancel the registration renewal. The registering authority shall promptly issue orders of cancellation of registration.

Penalty for delay of applying for renewal of Registration:

Where there is delay on the part of the contractors in applying for renewal, a penalty fee for renewal of registration be levied i.e., when there is delay in applying for renewal, a renewal fee shall be levied as follows:

  • Delay up to 1 year                            – double the registration fee
  • Delay of 1 to 2 year                          – three times the registration fee
  • Delay by more than 2 years            –registration stands cancelled

The authority, shall, before issue of final orders of renewal satisfy himself about the suitability of the contractor for renewal of registration.

Confidential reports as per the form PWF-19 of the contractors shall be sent to the registering authority every year at the time of furnishing the statement of Income tax department, in order to assess the performance of the contractor for balance registration/ renewal.

Refusal of registration:

The registration of a contractor shall not be refused except on any of the following grounds, namely,

That the applicant or any person responsible or proposed to be responsible for the execution of the contract is not qualified.

That the applicant has not complied with the rules in respect of registration;

That the satisfactory evidence has been produced that the applicant or any person responsible for the management of his business has knowingly participated in or connived at any fraud or dishonesty in the conduct of or in connection with the business of contract.

The registering authority shall, before refusing registration, afford an opportunity to the said contractor to appear before the registering authority and explain his stand orally and / or in writing and the registering authority shall record his orders with reasons.

Promotion:

A contractor may be promoted to the higher class after careful analysis of the performance of his work, ability, capability both financial and executive, including adherence to the quality after detailed examination of the execution of works entrusted to him for one year.

Demotion to lower class:

The Registering authority may demote contractor to a lower class, if the contractor fails to execute a contract or execution is unsatisfactory or is proved to be responsible for constructional defect(s) revealed even before the expiry of the prescribed maintenance period after completion; or has no longer the adequate equipment, technical personnel or financial resources or violates important conditions of contract performance appraisal reports continuously for a period of three years indicate that the performance is poor / very poor or responsible for any other matter which may justify his demotion to a lower class taking into account the merits of case.

However, a demoted contractor may again be promoted to his original class after a period of one year if the registering authority is satisfied by his performance during this period.

Removal from the approved list or delisting a contractor:

The registering authority may remove the name of contractor from the approved list, if such contractor,

has no longer the adequate equipment, technical personnel, or financial resources;

Fails to furnish required Income tax clearance / sales tax clearance wherever due.

Fails to abide by the conditions of registration or is found to have given false particulars at the time of registration.

Is declared or is in the process of being declared bankrupt, insolvent, wound up dissolved or partitioned; or

Persistently violates the provisions of labour regulations; or

Has entered into partnership with a partnership firm duly registered under the Indian Partnership Act 1932, without the prior written consent of the registering authority.

Directly or indirectly indulges in acts of blackmail or spreading of false information or violating the code of conduct provided for contractors, with a view to interfere with the legitimate processing of tenders.

Black listing:

Registered Contractors:

The registering authority may black-list a contractor for a specific duration. where,

There are sufficient and strong reasons that the contractor or his employee has been guilty of malpractices such as bribery, corruption, fraud including substitution of, or interpolation in tenders, or submission of fraudulent solvency certificates or bank guarantees, pilfering or unauthorized use of, or disposal of Government materials issued for specific works etc.

The contractor has executed bad quality work.

The Contractor has failed to complete the work within the stipulated period of time.

The contractor is a habitual litigant.

The contractor continuously refuses to pay Government dues without showing adequate reasons.

The Contractor or his partner or his representative has been convicted by a court of law for offences involving moral turpitude in relation to the business dealings;

the contractor either by himself or through his agents or his association with others conducts himself in a manner which in the opinion of the registering authority is liable to impede or affect prejudicially the progress of any Government work, or is guilty of misconduct in connection with the execution of Government work and,

The contractor who is in the habit of purchasing tender forms (for more than three times) for works without submitting tenders

Provided further, that before action under sub-clause (a) is taken, the employer shall submit a proposal to the Government for action and the Secretary, Karnataka Public Works Ports and Inland Water Transport Department (KPWP&IWTD) shall conduct quasi-judicial proceeding and the contractor concerned shall also be given reasonable opportunity to explain his stand before he is blacklisted for the reasons mentioned in such clauses.

Un-Registered Contractors:

The Government may black-list an un-registered contractor for a specific duration where,

There are sufficient and strong reasons that the contractor or his employee has been guilty of malpractices such as bribery, corruption, fraud including substitution of, or interpolation in tenders, or submission of fraudulent solvency certificates or bank guarantees, pilfering or unauthorized use of, or disposal of Government materials issued for specific works etc.

The contractor does not rectify bad quality work.

The contractor is a habitual litigant.

The contractor continuously refuses to pay Government dues without showing adequate reasons.

The contractor or his partner or his representative has been convicted by a court of law for offences involving moral turpitude in relation to the business dealings;

The contractor either by himself or through his agents or his association with others conducts himself in a manner which in the opinion of the authority is liable to impede or affect prejudicially the progress of any Government work, or is guilty of misconduct in connection with the execution of Government work and,

The contractor who is in the habit of purchasing tender forms (for more than three times) for works and does not quote.

Provided further, that before action under sub-clause 1(a) is taken, the employer shall submit a proposal to the Government for action and the Secretary, Karnataka Public Works Ports and Inland Water Transport Department (KPWP&IWTD) shall conduct quasi-judicial proceeding and the contractor concerned shall also be given reasonable opportunity to explain his stand before his is delisted or blacklisted for the reasons mentioned in such clauses.

The quasi-judicial proceedings shall be conducted by the appropriate authority and this duty shall not be delegated to any other officer.

Registered P.W.D. contractors carrying out works in other Departments of state Government or state Government undertakings or central Government undertakings, who fail to carry out works as per agreement conditions or who are guilty of misconduct as indicated already are liable to be suspended from business by the executive authority of the organization, where they are working, pending institution of disciplinary proceedings by the registering authority.

The authority shall issue a show cause notice detailing the charges, conduct quasi-judicial proceedings wherein the contractor and / or his representatives or advocates are heard, evidences/ statements/ counter statements, are recorded and an order pronounced by the registering authority within three days after the last sitting and a copy of the order issued to the contractor.

Whenever penal action has to be taken, there should not be any hesitation but grounds of urgency shall not vitiate the prescribed procedures. No impression should be created that vindictive action is based on any consideration other than natural justice.

Restoration:

Upgrading a demoted contractor, lifting the ban on business, restoring the registration, withdrawals of black listing etc., may be considered at appropriate time on the merits of each case by the authority who has passed the original order.

  • Registration of consultants:
  • Project management consultants
  • Architects / Interiors
  • Service consultants.

Individuals/Companies/Agencies shall be registered in the Public Works Department by following the procedure detailed below.

A consultant shall first apply for registration in the prescribed form PWF 14 annexed to the rules to the appropriate authority viz., the Executive Engineer or the Superintending Engineer or the Chief Engineer(C&B) of Public Works Department.

The application for registration in the prescribed form PWF 14 shall be submitted to the authority competent to effect registration and it shall be accompanied by the following documents:

A challan for having credited to Government a non-refundable sum of Rs. 1000 being the registration fee.

Registration once done shall be effective for a period of five years from the date of registration.

A residential certificate to be obtained from the revenue authorities not below the rank of Tahsildar or an officer not below the rank of the chief executive officer of the concerned local authorities or identification card issued by the Election Commission of India or Ration card issued by the Food & Civil Supplies Department or Pass port issued by the Pass Port authority of India should accompany.

A certificate issued under companies act in the case of firms or companies.

Income Tax Clearance Certificate.

Application shall be submitted in the prescribed form for registration together with three passport size photographs of the contractors in whose name the registration is sought for.

A Registration certificate shall be issued retaining one copy with registering authority.

In case of partnership firms the photograph of all the partners shall be furnished. Photograph of the managing partner shall be affixed in the registration certificate. After receipt of application, preliminary scrutiny shall be conducted by the caseworker to verify whether the particulars, annexures etc. have been received correctly. An acknowledgement also indicating the probable date of issue or registration certificates shall be sent to the contractor in formPWF-16 . A 30 days time limit is fixed for issue of registration certificates. Any contractor submitting the documents and application in complete shape with the requisite fees is eligible for registration, and hence there should be transparency and quick processing of applications.

Registration certificate shall be in form PWF-17 which includes details of tenders purchased as well as details of work awarded and carried out.

This registration book shall be produced at the time of issuing blank tender documents and also at the time of issuing work order for making corresponding entries in Part II and III respectively. In addition, the book shall be produced as and when required to ensure up to date entries of all columns.

If a contractor desires registration certificate for Class II and below within 24 hours and all the documents required are submitted in complete shape, such applications can be accepted provided the registering authority is in station and not likely to be away on tour and certificates shall be issued within 24 hours, after collecting registration fee at twice the rates prescribed. In the event of inability of the registering authority to comply with this requirement, only normal fee payable should be received. If fees at twice the rates are already paid, excess collected shall be refunded. The case worker and registrar shall organize the work of issue of registration certificate in the order in which it was received and no out of turn issues shall normally be practiced.

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