MES



ENLISTMENT OF CONTRACTORS, STANDING SECURITY DEPOSIT, UPGRADING, REMOVAL AND DOWN GRADING OF CONTRACTORS

1.1 Genaral  

(a) Applications for enlistment will be submitted by the contractors on [IAFW-2190 (Revised 2009) (Appendix 1.1) to the appropriate enlisting authority

(b) Fresh enlistment in MES opened from time to time as per separate notification by the 1 1 .-in-C's Branch. However in respect of certain remote and difficult areas, enlistment may be done at any time after satisfactory completion of work(s) by the contractor in MES in such areas with prior permission of E-in-C's Branch in respect of D to S Class and CE Command in respect of E Class.

(c) Fresh enlistment in MES is done (whenever opened) in respect of those contractors only, who have already completed satisfactorily at least one work in MES. No other firm is enlisted either on the basis of having worked on power of attorney or under any other capacity or on the basis of Job orders etc. Other firms who have not executed any MES work but are performing exceptionally well in other Government Departments and their enlistment is considered in the Interest of MES, may also be enlisted after prior approval of CE Zone [or CE Command/ADG (OF & DRDO) where there is no CWE Office] in respect of enlistment in 'E' Class, CE Command/ADG (OF & DRDO) in respect of enlistment in ID' to 'A Class and E-in-C's Branch in respect of enlistment in 'S' Class

(d) Applications received for enlistment in MES from the contractors during ban period shall be returned advising them that presently enlistment is banned and they will be informed, whenever enlistment is open, to apply at that time. However they will be sent the criteria for enlistment in MES, to comply with. Record of such contractors and provisionally enlisted contractors shall be maintained in a separate register in each office of enlisting authorities and these contractors will be informed to apply whenever enlistment is open.

1.2 Categories of Works for Registration

Contractors will be enlisted for one or more of the following categories of works for which they are considered suitable :

(a) Civil Engineering Works

(i) Building and Roads

(ii) Water Supply and Sewage Disposal

(iii) Runways and Pavements

(iv) Marine and Harbour Works 

(b) Electrical Engineering Works

(i) Low Tension Electric Works (upto 1100 Volts)

(ii) High Tension Electric Works (excluding 33 KV)

(iii) 33 KV and Extra High Voltage Installations

(c) Electrical/Mechanical Engineering Services

(i) Air Conditioning and Refrigeration

(ii) Lifts

(iii) Electrically Operated Cranes

(iv) Incinerators

(v) Mechanical Laundry

(vi) Fire Fighting and Fire Detection System

(vii) Water and Effluent Treatment

(d) Miscellaneous

(i) Manufacture of Furniture

(ii) Handling of Engineer Stores and Transport

(iii) Horticulture and Landscaping

(iv) Information Technology Services

(v) Maintenance and Operation of E/M Installation

(vi) Repair of Transport Vehicles

(vii) Energy Audit Services

(viii)Auction Services

Note :Contractors of class A' and above only shall be eligible for enlistment in categories (a)

(iii) Runways and Pavements and (a)

(iv) Marine and Harbour Works, subject to prior approval of E-in-C.

1.3 Classification of  Contract" 

The Classification, value of Standing Security Deposit, Competent Enlisting Authority and registering  Authority shall be as under : 

Class Upper Tendering limit (Rs.)  Value of Standing Security Deposit (Rs.) Authority Competent to enlist Authority Competent to Register
(1) (2) (3) (4) (5)
SS no limit 15 lakhs E-in-C's Branch E-in-C's Branch 
A 1500 lakhs 11 lakhs CE Command/ ADG (OF & DRDO) CE Command/ADG (OF & DRDO)
A 750 lakhs 7l akhs CE Zone/Project  CE Command/ADG (OF & DRDO)
B 300 lskhs 4 lakhs CE Zone/Project  CE Command/ADG (OF & DRDO)
C 100 lakhs 1.75 lakhs CE Zone/Project  CE Command/ADG (OF & DRDO)
D 50 lakhs 1.00lakhs CE Zone/Project  CE Command/ADG (OF & DRDO)
E 25 lakhs 50,000/ cwe(CE Zone/Projec in case there is no cwe office CWE (CE Zone/Project in case there is no CWE Office)

1.4 Criteria for Fresh   Ealistment/Upgradation

(A)criteria for Fresh Ealistment/Upgradation in various classes shall be as under :

class Past It of completed works in last 5 Years  finantial soundness Engineering establishment 

limit of minimum recevis total of movable property or assets(in case o companies)(80% of minimum reserves/ assets shall be in shape of immovable property) (Rs. in lakhs

(1) (2) (3) (4) (5)
ss (a) Two works costing not less     than     Rs.     12.00     crores each or One work costing not less than Rs. 20 crores and (b) Average annual turn over for last two consecutive years shall not be less than Rs. 20 crores. 
 
(a) solvent     upto     Rs.     8.00 crores or financially     sound     for  engagement upto Rs. 40.00 crores (b) working capital not less thanRs. 75.00 lakhs (a) three graduate Engineers from     a     Government recognised     institution     with minimum experience     of 5 Years  and (b) Five diploma Engineers from Government recognized institution     with     minimum experience of 8 years and (c) One     of the     Engineers should have capability to use Project Management Software like MS Projects/Primavera in all projects  120.00
s (a) Two works costing not less than Rs. 7.50 crores or One work costing not less than Rs. 12.00 crores and (b) Average annual turn over for last two consecutive years shall not be less than Rs.      12.00 crores   (a)Solvent upto     Rs.     4.00 crores or financially     sound     for  engagement     upto     Rs.     15 crores (b) working capital not less than Rs' 50.00 lakhs  (a) Two graduate Engineers from     a     Government recognised     institution     with minimum experience     of 5 years  and (b) Three diploma Engineers from Government recognized 
experience of 5 years. 
80.00
A (a) Two works costing not less than Rs. 4.00 crores or One work costing not less than Rs. 6.00 crores and (b) Average annual turn over for     last     two     consecutive financial years shall not be less than Rs. 6.00 crores  (a) Solvent     upto     Rs.     2.00 crores or financially     sound     for engagement up to Rs. 7.50 crores (b) working capital not less than Rs. 30.00 lakhs  (a) One graduate Engineer from a government recognised institution with minimum experience of 5 years and (b) Two diploma Engineer from     Government     recog nized     institution     with minimum experience of 5 years.  75.00
b (a) Two works costing not than Rs. 1.50 crores or One work costing not less 
or (b) Average annual turn over for last two consecutive years shall not be less than Rs. 300.00 lakhs
(a) Solvent upto Rs. 100.00 lakhs or financially     sound     for  engagement upto Rs.     3.00 crores (b) working capital not less than Rs. 12.00 lakhs  (a) One graduate Engineer from     a     government recognised     institution     with minimum experience     of 4 yea rs and (b) One diploma Engineer from     Government     reco- gnized     institution     with minimum     experience     of 5 years  60.00
c (a) Two works costing not less than Rs. 50.00 lakhs or One work costing not less than Rs. 80.00 lakhs or (b) Average annual turn over for last two consecutive years shall not be     less than Rs. 100.00 lakhs (a) Solvent upto Rs. 40.00 lakhs or financially     sound     for  engagement upto Rs. 100.00 lakhs (b) working capital not less than Rs. 10.00 lakhs (a) One graduate Engineer from a government recognised institution with minimum experience of 2 years  and (b) One     diploma     Engineer from Government recognized institution with     minimum experience of 4 years 25.00
d (a) Two works costing not less than Rs. 25.00 lakhs or One work costing not less than Rs. 40.00 lakhs or (b) Average annual turn over for last two consecutive years shall not be less than Rs.      50.00 lakhs (a) Solvent upto Rs. 20.00 lakhs or financially     sound     for  engagement upto Rs. 50.00 lakhs (b) working capital not less an     s 7.50 lakhs  One graduage Engineer from a government recognised institution with minimum experience of 2 years or One diploma Engineer from Government     recog-     nized institution with     minimum experience of 4 year 12.50
e (a) Three works costing not less than Rs. 7.50 lakhs Or Two works costing not less than Rs. 10.00 lakhs or One work costing not less than Rs. 21.00 lakhs or (b) Average annual turn over 
shall not be less than Rs. 25.00 lakhs 
(a) Solvent upto Rs. 10.00 lakhs or financially     sound     for engagement upto Rs. 25.00 lakhs (b) working capital not less than Rs. 5.00 lakhs  One graduate Engineer from a Government     recognised institution or One diploma, Engineer from Government     recognised institution with     minimum experience of 2 year 8.00

(b) The Contractors shall also meet the requirement of minimum T & P/Machinery and it titiNport for fresh enlistment/upgradation in various categories corresponding to their classes as Ittikr

date Special T & P/ Machinery! Transport Minimum Nos. required for enlistment in class  Remarks 
10) (1) .     Building & Road category  ss s a b c d e  
  1.     One bag capacity concrete mixer (diesel) - - - 3 2 1 1  
  2.     Vibrators (Needle and Plate type) 20 15 6 4 4 2 2  
  3.     Tower/builder's hoist 4 2 1 1 1 - -  
  4.     Steel shuttering with spans, props etc. (sqm) 6000 4000 2000 1500 1000 500 200  
  5.     Trucks/Tippers 5 2 1 1 - - -  
  6.     DG Sets 5/10 KVA 3 2 1 1 - - -  
  7.     Total Stations 3 2 1 1 - - -  
  8.     Concrete cube testing machine (Hydraulically operated) 3 2 1 1 - - -  
  9.     Fully automatic concrete batching plant 1 1 1 - - - -  
  10. Transit Mixer 3 2 2 - - - -  
  11. Concrete Pumps 3 2 2 2 1 - -  
  12. Concrete mobile weigh batchers 3 2 2 2 1 - -  
  13. Cranes 2 2 1 1 - - -  
  14. Excavators (Power shovels/draglines) 2 2 1 1 - - -  
  15. Bull dozers 2 2 1 1 - - -  
  16. Road Rollers 2 2 1 1 - - -  
  17. Drilling machines 3 2 1 1 - - -  
  18. Boring rig 5 4 3 2 1 1 1 Optional in case of     tube     well boring work 
  19. Pile driving equipment (sets) 5 4 3 2 1 1 1 Optional in case of pilling work 
  20. Pile testing equipment (sets) 3 2 1 1 - - - -do- 
                   
  1. Vibratory rollers 1 1 1 - - - -  
  2. Pneumatic wheeled roller 1 1 1 - - - -  
  3. Fully automatic concrete batching plant 1 1 1 - - - -  
  4. Concrete paver finisher 1 1 1 - - - -  
  5.Continuous type hot mix plant 1 1 1 - - - -  
  6.Cold milling machine 1 1 1 - - - -  
  7.  Paver finisher (Hydraulically controlled) sensors operated electrically for the pave finisher (Hydraulically controlled)  1 1 1 - - - -  
  8.     Bitumen sprayer 5 5 5 - - - -  
  9.     Trucks/ti.. - r  5 5 5 - - - -  
                   
  1.     Pile driving equipment for :                
  (a) On shore piles with operating devices 2 2 2 - - - -  
  (b) Off shore pile driving device with complete equipment to facilitate lowering of rift, mixer, concreting etc. 2 2 2 - - - -  
  2.     Bentonite circulation eqpt 2 2 2 - - - -  
  3.     Kelly grab for diaphragm wall construction 2 2 2 - - - -  
  4.    Crawler mounted crane of suitable capacity with dam      shell attachment for grabbing  2 2 2 - - - -  
  5.     Diesel/Elec operated hammer/devices for sheet pile driving and extraction  2 2 2 - - - -  
  6.     Concrete Mobile Weigh batchers 3 2 2 - - - -  
  7.     Pumping sets elec/diesel of suitable capacity 2 2 2 - - - -  
  8.     Drifter equipment for rock anchors 2 2 2 - - - -  
  9.     Sand blasting facility for clearing of rift of rock anchors 2 2 2 - - - -  
  10. Under water cutting of sheetpiles 2 2 2 - - - -  
  11. Welding eqpt and radiography eqpt for testing of joint 2 2 2 - - - -  
  12. Field testing equipment 2 2 2 - - - -  
  13. Concrete grouting equipment 2 2 2 - - - -  
  14. Needle and plate type vibrators 4 4 4 - - - -  
                   
  1.     Steel/Aluminum ladders 1.5 m. to 8m. (Nos) 10 8 6 4 3 2 2  
  2.     Chase cutting machines 3 2 2 2 1 1 -  
  3.     Torque wrench for nuts/bolts/screws 3 2 2 2 1 1 -  
  4.     Primary and secondary injection equipment 3 2 2 2 1 1 -  
  5.     Dielectric strength testing eqpt 3 2 2 2 1 1 -  
  6.     Magnetic dial indicator for alignment 3 2 2 2 1 1 -  
  7.     Conduit die set 3 2 2 2 1 1 -  
  8.     Pipe vice 3 2 2 2 1 1 -  
  9.     Bench vice 3 2 2 2 1 1 -  
  10. LT Meggar 500 volts 3 2 2 2 1 1 -  
  11. HT Meggar 5000 volts  3 2 2 2 1 1 -  
  12. Tong tester 3 2 2 2 1 1 -  
  13. Hydraulically operated & hand operated crimr3ing machines  3 2 2 2 1 1 -  
  14. Earth tester 3 2 2 2 1 1 -  
  15. Portable drilling machines 3 2 2 2 1 1 -  
  16. Over head conductor pulle'r 3 2 2 2 1 1 -  
  17. Test bench for light fittings 3 2 2 2 1 1 -  
  18. Cable fault location meggar 3 2 2 2 1 1 -  
  19.Oil testing set 3 2 2 2 1 1 -  
  20.Multi meter 3 2 2 2 1 1 -  
                   
  1. Properly fitted workshop  1 1 1 1 1 1 1  
  2. Sawing machine 2 2 1 - - - -  
  3.     Planing machine 4 3 2 2 1 1 1  
  4.     Machine for cutting, grooving, moulding & beading 4 3 2 2 1 1 1  
  5.     Compressor for spray painting 4 3 2 2 1 1 1  
  6.     Bending machines 4 3 2 2 1 1 1  
  7.     Welding sets 4 3 2 2 1 1 1  
  8.     Machines for screw driving 4 3 2 2 1 1 1  
  9.     Drilling machine 4 3 2 2 1 1 1  
                   
  1.     Trucks 7 5 5 5 3 3 3  

(c) Verification of character and antecedents of Proprietors/ Partners/Directors shall be done through police authorities (not below the rank of Superintendent of Police) before he is brought on the approved list.

Notes :1. For enlistment in class 'SS', the company incorporated under the 'Companies Act 1956' shall only be eligible.

2.The categories for enlistment shall be decided on the basis of nature of works executed by Contractor and T&P/machinery possessed by him.

3.For enlistment in category (b) Electrical Engineering Works, one of the engineers employed by the Contractor should be degree/diploma holder in electrical engineering with requisite experience and for enlistment in category (b) (ii) and (iii), the Contractor should also employ persons having valid electrical licence from competent authority on their permanent establishment atvo persons for class 'SS' and one person for class 'S' to 'E' ). For this, he will submit requisite affidavits and attested copies of Licences.

4.Working capital with the Contractor shall be judged from balance sheet/bank's certificate as per Appendix 1.2/bank statement for last 6 months/overdraft facility from bank/fixed deposit receipts with banks.

5.Immovable/movable property (minimum reserve) shall be exclusively in the name of Contractor and not in the name of family members/relatives/others. In case of limited companies immovable/movable property (considered for minimum reserve) shall be exclusively in the name of company and should be reflected in the Balance Sheet of the Company. 

(d) Miscellaneous Manufacture of Furniture,

(ii) Handling of Engineer Stores and Transport,

(iii) Horticulture and Landscaping,

(iv) Energy Audit Services,

(v) Auction Services.

7. Upgradation of an enlisted Contractor shall be done gradually in stages. Before a Contractor is considered for upgradation, he should have worked at least for 2 years in the present tendering limit and also meets the criteria laid down. Normally upgradation will be done only to one next higher class at a time. However, if performance of any particular Contractor is found to be of very high order and Enlisting Authority considers upgradation of such Contractor by more than one class justified, the same shall be done only with prior approval of E-in-C's Branch. Following considerations shall only be applied to ascertain whether the performance of Contractor is of very high order or otherwise :

(a) Contractor has completed the works value of which is more than 1.25 times the requirements in which the upgradation is

(b) Average Annual Turnover of the Contractor is more than 1.25 times the requirement in which the upgradation is being being considered. 

Example :

Contractor enlisted in class 'C' having tendering limit of Rs. 100 lakh proosed to be upgraded to class A' having considered. p tendering limit of Rs. 7.50 crore, minimum value of works completed and/or turn over shall be as under

(i) '1Wo works completed costing not less than Rs. 5.00 crore each (1.25 x 4.00)

Or 

One work costing not less than Rs. 7.50 crore (1.25 x 6.00) (ii) Average annual turnover Rs. 7.5 crores (1.25 x 6.00) (c) Average marks secured in Performance Reports (Stage II) for the' works completed in last five years shall not be less than 70%. Where report for any work is not available, it will be deemed to contain only 60% average marks.

8.The criteria laid down above for enlistment/upgradation may be relaxed in the case of Contractors whose performance has been found to be of a very high order. Such relaxation may, however be given only with the prior approval of E-in-C's Branch.

9.Contractor of class A' and above shall only be eligible for enlistmen E-in-C. 

1 5 Documents required to be submitted the Contractor tor enlistment of mes

(a) Applications for enrolment as Contractor on IAFW-2190 (Photographs affixed on Application shall be got attested by any Government Gazetted Officer). 

(b) Affidavit for constitution of firm (only limited companies shall be enlisted in 'SS' Class).

(c) List of works executed during last 5 years.

(d) Annual turnover certificate from CA/Income-tax deduction at source (TDS) certificates from GEs in support of annual turnover during last 5 years. 

(e)Balance sheet of last 5 years in case of limited companies. 

(f) Affidavit for immovable properties indicating present market value and containing following endorsements :

(i) That the immovable property is free from mortages, hypothecation or any other dispute and encumbrances and clearly belongs to the Contractor. 

That the immovable property is free from any disputes and encumbrances and clean Or belongs to the Contractor. The immovable property has been mortagaged/hypothecate for Rs     

Market value of immovable property as per valuation report No given by Registered valuer is Rs Therefore balance market value I Pro i.e. Rs. (Market value minus mortagaged value) is free from ar p p  mortgage/ hypothecation. 

(ii)That the said immovable property has not been shown for seeking enlistment of a sister concern in MES.

(iii)That the said immovable property will not be sold, transferred, gifted or otherwise disposed off without prior intimation to the registering authority in MES. While giving such prior intimation, new affidavit for alternate immovable property of value at least equal to minimum requirement as per scales alongwith valuation report from registered valuer shall also be submitted; failing which the Registering Authority may declare the contractor unenliste4 or may take action as deemed fit till acquiring alternate immovable property by the Contractor.

Note :In case of partnership firm, the partner having immovable property in his name, shall also endorse the following in addition to above : "Irrespective of my share in partnership firm, my whole property may be utilised by the Government for realising their dues/recovery, if the firm fails to deposit the same".

(g)Valuation report from Registered (with any Government body) valuer for immovable property clearly indicating ownership details. Alternatively the Contractor may submit certificate from the Deputy Commissioner/ Collector/First Class Magistrate or assessment of wealth tax authorities.

(h) Affidavit for movable property (T & P. machinery, transport etc.) : If certain, movable property is being considered towards requirements of minimum reserve, endorsements as required for immovable property shall also be given on affidavit for movable property and valuation report from Registered (with any Government body) valuer for movable property clearly indicating ownership details shall also be submitted.

(j) Solvency certificate from the scheduled bank as per specimen given in Appendix-1.2

(k) Working capital certificate from the scheduled Bank as per specimen given in Appendix 1.2. Alternatively Contractor may submit bank statement for the last 6 months/attested copies of fixed deposit receipts/balance sheet in support of Working Capital.

(1) Affidavit from contractor for employment of Engineers.

(m) Affidavit from Engineers for employment with the Contractor.

(n) Experience and Degree/Diploma certificates of Engineers.

(o) Affidavit from Contractor that there is no Government dues/recovery outstanding against him. (If there is any Government dues/recovery outstanding from the Contractor, enlistment/upgradation shall not be done)

(p) Affidavit from Contractor that he is not involved in any arbitration/litigation cases. If he is involved, he will give brief details of such cases on affidavit and enlisting authority will critically examine such details and if contractor is considered habitual litigant, his enlistment/ upgradation shall not be done.

(q)Two photographs of proprietor/partners/directors of firm for verification of character and antecedents from the police authorities.

(r) Copy of partnership deed in case of partnership firm.

(s) Memorandum and Articles of Association in case of Limited Companies.

(t) Copy of Registration Certificate of firm/company with Registrar of Companies. 

(u) Affidavit that no near relative(s) of the contractor or their employees/agents is/are working as Gazetted/ Commissioned Officer in MES/Corps of Engineers/ Ministry of Defence. If his/their near relative(s) is/are working in such capacity, he/they shall furnish details. The contractor shall not be entitled to tender for the works in entire area of CE Zone/Project under whose control his/their near relatives are working as Gazetted/ Commissioned Officers.

(v) Affidavit that no near relative(s) of the contractor is/are working as Junior Engineer in MES/Corps of Engineers. If his near relative

(s) is/are working in such capacity, the contractor shall furnish details. The contractor shall not be entitled to tender for the works in entire area of GE

(I)/GE in which his near relative(s) is/are working as Junior Engineer.

(w) Copy of power of attorney given to any person/partner/ director by the Contractor.

(x) Copy of last income tax return.

(y) A separate sheet containing specimen signatures (signed in black ink) and affixed with photographs of proprietor/ partners/directors. (To be used as Appendix B of enlistment letter)

Notes : (i) All the documents submitted by the Contractor shall be signed by him.

(ii) Photo copies of documents shall be attested by the Gazetted Officer/ Notary Public.

(iii) All the affidavits shall be given on non judicial stamp paper of appropriate value duly signed by the contractor and attested by the Magistrate/ Notary Public.

1.5.1 On receipt of letter from enlisting authority asking standing security deposit and standing security bond (Bond to secure performance of agreement), and unless the contractor decides to deposit individual security for each work he secures, he shall furnish the following :

(a) Standing security deposit of appropriate value (Acceptable form of standing security deposit shall be as given in para 2.1

(h) of section 2 except Bank Guarantee Bonds

(b) Standing security bond (Bond to secure performance) on non judicial stamp paper of appropriate value as per specimen given at Appendix 1.4 duly signed by Contractor and attested by Magistrate/Notary Public.

1.6 Income Tax Clearance Certificate

W.e.f. 30.10.03 requirement of submission of ITCC by the contractors for enlistment purposes has been dispensed with.

1.7 Verification of Character and Antecedents of Contractors and their agent 

(a) There have been cases where foreign nationals and other anti-social elements were found associated with Defence works. In the interest of security, therefore, the following action will be taken :

(i) Character and Antecedents of a Contractor (Proprietor/ Partners/Directors) shall be verified through police authorities (Not below the rank of Superintendent of Police) before he is brought on the approved list.

(ii) Character and Antecedents of agents of contractors shall be verified through police authorities (Not below the rank of Superintendent of Police) before they are associated with the contract work. 

(iii) Character and Antecedents of a sub-contractor shall be verified through police authorities (Not below the rank of Superintendent of Police) before he is associated with the contract work.

(iv) Character and. Antecedents of an unregistered contractor to whom a tender may be issued shall be verified through police authorities (Not below the rank of Superintendent of Police) before a tender submitted by him is opened. In case the police verification is not received till the date of opening of tender, the tender of such Contractor shall not be opened.     K.

(v) Foreign nationals including labour shall be excluded from all contracts unless for reasons of technical collaboration or some other consideration, their inclusion is unavoidable

b) The following instructions shall be followed for verification of character and antecedents of contractors :

(i) Verification of character & antecedents of contractors and their agents shall be taken up with Superintendent of Police of the District to which the individual belongs.

(ii) If an unregistered original equipment manufacturer and multinational company applies for issue of a tender and he is considered otherwise suitable, immediate action shall be taken to get the Police verification done. It may not, however, be possible to know the result of the Police verification before issue or even before acceptance of a tender submitted by such a tenderer. In such a case, the Accepting officer must, before issuing a tender, satisfy himself about the character and antecedents of the Contractors. If necessary, references to other departments with whom the Contractor may have been working may be made for the purpose.

(iii) Provision shall be made in all tender documents to the effect that Contractor shall employ only Indian Nationals after verifying their character, antecedents and loyalty. Attention of tenderers shall also be drawn to Condition 25 of IAFW-2249 (or other similar condition in the applicable Contract form).

(c) All possible steps shall be taken to ensure that a person of doubtful character and antecedents is not associated with Defence Works. If in doubt, a reference shall be made to police authorities for fresh verification.

(d) It has been clarified by the Ministry of Home Affairs that verification of antecedents in case of Government Undertakings is not necessary.

(e) It has been decided by the Ministry of Defence that verification of antecedents in respect of the following shall be got done through Intelligence Bureau, Ministry of Home Affairs :

(i) Indian Firms of Contractors having both Indian as well as foreign nationals as Directors.

(ii) Foreign firms of Contractors.

(iii) Indian Firms of Contractors having Indian Nationals as Directors living-  in India as well as Directors of Indian nationality living abroad.

(iv) Indian Firms of Contractors having Indian Directors living in India as well as Directors of Indian origin having acquired foreign nationality/ citizenship and living abroad. 

(f) Any Indian firm having one or more Directors of Indian Nationality but living abroad or having one or more Directors of Indian origin having taken up foreign nationality/ citizenship may not be enlisted. However, in exceptional cases only and with the approval of Ministry of Defence, work can be awarded to such firm after verification of their antecedents and their performance through CBI.

(g) Verification of antecedents of Proprietor/Partners/ Directors of the Firm in connection with issue of tender and or Enlistment shall be Govt. responsibility and accordingly payment to police authorities towards verification of antecedents shall be made by contractor.

(h) Verification of antecedents of Contractor's representatives/labour deployed at site in connection with execution of work under the contract, as per security requirements of User Unit/installation shall be the responsibility of the contractor and all expenses in connection with verification of antecedents by Police Authority/Security Agency shall be borne by the contractor. An appropriate clause to this effect shall be incorporated in the contract.

1.8 Procedure for Estimation and contractors

4 To ensure uniformity of the procedure for enlistment/ upgrading, the various points to be checked are enumerated in the 'Check List' given at Appendix 1.3. The points given in the list should be checked while examining the case of enlistment/upgrading and complied with. Following procedure will be followed for enlistment of contractor.

(a) 'SS' Class : Application for enlistment as an approved contractor in 'SS' Class is to be submitted by the Contractor to E-in-C for decision. A contractor of 'S' Class already enlisted by CE Command should normally apply through that CE Command. (b) 'S' Class :

(i) Application for enlistment as an approved contractor in 'S' Class is to be submitted by the Contractor to the Command CE for decision. A Contractor not enlisted with MES may submit his application direct to Command CE but a contractor of 'A Class already enlisted by a Zonal/Project CE should normally apply through that CE. Having taken a decision to enlist a contractor in 'S' Class the Command CE will inform the contractor about it and the categories for which it is proposed to enlist him, and call upon him to deposit the required Standing Security Deposit and to execute the Standing Security Bond, unless the contractor decides to deposit individual security for each work he secures.

(ii) On receipt of the Standing Security Deposit and Standing Security Bond from the Contractor, the Command CE, after having completed the bond by making the following endorsenient at the bottom of the last page, allot a number and issue enlistment letter to the Contractor under intimation to the E-in-C, CEs of other Commands, all Zonal/Project CEs, CsWE, GEs and Independent AGEs in his Command : "Accepted for and on behalf of the President .of India

Signature and Designation of CE Command" 

(c) 'A' to 'D' Class :

(i) Application for enlistment as an approved contractor in any of the financial classification 'A to 'D' is to be submitted by the Contractor to the Zonal/Project CE who will decide as to whether the applicantls to be enlisted and if so, in what class and for what categories of work. Having taken a decision, the Zonal/ Project CE will inform the Contractor of the class and categories for which he proposes to enlist him. He will also call upon the Contractor to deposit the standing security appropriate to that class and to execute the Standing Security Bond, unless the contractor elects to deposit security for each work he secures. K.

(ii) On receipt of the security and the bond, Zonal/Project CE will forward these alongwith contractor's application together with all supporting documents to the CE Command for safe custody and allotting an index number and issue of enlistment letter to the Contractor.

(iii) On receipt of the documents, the CE Command shall ensure that Index Number is allotted and enlistment letter issued as early as possible but in no case later than TWO months from the date of receipt of documents in his office. All actions in such cases should be dealt with expeditiously.

(iv) The Command CE will complete the bond by making endorsement at the bottom of the last page as stated in para 1.8

(b) above. Thereafter the CE Command will issue letter of enlistment to the Contractor concerned, under intimation to the E-in-C, CEs of other Commands and all Zonal/Project CEs, CsWE, GEs and Independent AGEs in his Command. This letter will, inter-alia, indicate the Index number allotted to the Contractor in the Command. It is hereby clarified that while, no doubt, the competent authority for enlisting Contractors in Classes 'A to 'D' is the Zonal CE, the Command CE may at his discretion scrutinise the enlistment papers forwarded by Zonal CEs and satisfy himself about the correctness and eligibility of enlistment, before allotting Index Number etc. Command CEs are advised that such checks to be carried out by them should be institutionalised. It need hardly be emphasised that delays should not occur in finalising enlistments, by entering into protracted correspondence with the Zonal CEs.

Note : (i) The documents pertaining to securities in respect of enlistment in 'S' and A' to D' Classes will be forwarded by Chief Engineer Command to the PCDA/CDA concerned for safe custody and periodical drawal of interest and payment thereof to the Contractor

(ii) Wherever standing security deposit is required to be released in respect of contractor of S' and A' to D' Classes, necessary action to obtain "Clearance" from all concerned and to release it shall be taken by the CE Command.

(iii) From the above, it will be observed that authority on whose register Contractors of A' to D' Classes will be deemed to be borne shall be the CE Command. (d) 'E' Class :

(i) Application for enlistment as an approved Contractor in 'E' Class is to be submitted by the contractor to the concerned CWE/CE (where there is no CWE Office) who will decide as to whether the applicant is to be enlisted and if so for what categories of work.

(ii) Having taken a decision, the CWE/CE will take appropriate action to intimate the contractor of his decision and to obtain Standing Security Deposit and Standing Security Bond as described in para 1.8(b) above. After completing these formalities, he will allot an Index number and issue enlistment letter to the Contractor under intimation to  Command CE, Zonal/Project CE, CsWE in the Command, GEs and Independent AGEs in his Area.

(iii) Documents pertaining to security in respect of enlistment of contractors of Class 'E' will be forwarded by the CWE/CE to the PCDA/CDA concerned for safe custody and periodical drawal of interest and payment thereof to the contractor.

(e) Specimen copy of enlistment letter to be issued by the registering authority is given at

Appendix 1.5 

1.9 Enlistment anjointing comman

A  Contractors of following classes who are enlisted and have lodged Standing Security Deposit and executed Standing Security Bond in one command (i.e., the Contractor's parent command) can get themselves enlisted without lodging fresh Standing Security Deposit and Standing Security Bond in :

Any Command or Command(s)     — For 'S' Class Contractors

Any TWO Additional Command(s) — For 'A Class Contractors

Any ONE Additional Command     — For 'B' to 'D' Class Contractor

For this purpose the interested Contractors may forward their application for enlistment to the CE of the new command through CE of their parent Command, who will give his recommendations in this regard which will be accepted by the other command CE without further scrutiny.

1.10 Facility for Working for otther survice at same station 

The Contractors of `E' to `S' Class registered with any one MES formation providing services to either Army or Navy or Air Force or Ordnance factories or R&D, and who have deposited Standing Security Deposit and executed Standing Security Bond will be allowed to execute work in respect of GEs working for other services also without depositing separate security deposit provided the works pertaining to other services are located at same station (i.e., within the same municipal corporation/cantonment limit) at which GEs/AGEs of his enlisting authority are located and also provided that such works come under the jurisdiction of the same PCDA/CDA to which the enlisting authority has furnished Standing Security Deposit and Standing Security Bond for safe custody.

1.11 Transfer of Enlistment on Reorganisation of mes formation

(a) If any MES formation is disbanded/reorganised, the contractors enlisted with that formation may get their enlistment transferred to any one other formation at their willingness. In such cases the contractor will have to submit fresh Standing Security Bond. They will also have to submit fresh Standing Security if PCDA/CDA also changes and his old standing security will be refunded.

(b) If any new MES formation is raised, the enlisted contractors, who are willing to work in area of new formation, may get their enlistment transferred to new formation and will have to submit fresh Standing Security Bond. They will also have to submit fresh Standing Security if PCDA/CDA also changes and his old Standing Security will be refunded. After enlistment in new formation, their enlistment with old formation will cease to exist

(c) here is no requirement of lodging separate Individual Security Deposit for running contracts on account of reorganization of MES formations. 

1.13 Provisional Enlistment  of  contarctor

(a) Para 419 of the Regulations for the MES-1968 states that tenders will normally be issued to contractors borne on the approved list of the MES.

(b) Due to dearth of contractors in some areas and with a view to attracting more contractors to MES, advertisements for MES tenders mention that Contractors not borne on the MES list may also apply. On receipt of applications from such Contractors they are asked to submit particulars with regard to their financial and technical capabilities. Simultaneously, action is also taken to obtain police verification.

(c) On the basis of the particulars submitted, tenders are then issued to such Contractors whom the Accepting officer considers suitable for the work in question. Should the tender of any un-enlisted Contractor happen to be the lowest and considered otherwise acceptable, it should be ensured that the contractor is first provisionally enlisted after obtaining all documents required for enlistment in MES corresponding to value of work. 

1.13 Upgrading of Contractors

(a) Criteria for upgradation of Contractors shall be same as given in para 1.4 here-in-before.

(b) For upgrading from 'S' Class to 'SS' Class, the Contractor will apply to E-in-C through CE Command with whom he has been working.

(c) For upgrading from 'A Class to `S' Class, the Contractor will apply to the CE Command through the Zonal/ Project CE with whom he has been working.

(d) (i) For upgrading to higher classes upto 'A Class, a Contractor will normally apply to the concerned Zonal/Project CE. Occasions may, however, arise when a Zonal/Project CE may himself consider that a contractor should be upgraded to a higher class upto 'A Class. In both these cases, the concerned Zonal/Project CEs will ascertain the views of the other Zonal/Project CEs in the Command, if necessary and after deciding the higher class in which the contractor is to be placed, intimate his decision to the Command CE. (ii) If any of the other Zonal/Project CE does not recommend upgrading, then the Command CE should be informed of the views of the Zonal/Project CE who has not recommended and the Command CE shall exclude Zonal/Project CEs in which Contractor's reports are unsatisfactory, whilst issuing letter of upgrading of the Contractors. Further action for intimating the Contractor of his upgrading and allotting fresh Index number in the new class will be taken by the Command CE. All formalities for obtaining from the Contractor, fresh Standing Ssmentecurity Bond and additional standing security deposit shall be completed by Zonal/Project CE who takes the decision on upgrading of the Contractor and he shall forward necessary documents to CE Command for further action as stated in para 1.8 above.

(e) The upgradation of Contractors shall be subject to provisions contained in Note 7 and 8 under para 1.4 hereinbefore. 

1.14 renewaL Of estisment

The enlistment of Contractors (in respect of Contractors of 'D' to `SS' Class) is done for the cyclic period of 5 years i.e. from 01 Jan 2006 to 31 Dec. 2010, 01 Jan 2011 to 31 Dec. 2015 and so on. With a view to ensure completion of the process ofrenewal well before expiry of the validity period, the action shall be taken by the registering authorities as indicated hereunder :

(a) Format for Renewal :

The format for the application for renewal will be as indicated in Appendix 1.6, alongwith the document stated therein. (No renewal of enlistment is required for E class Contractors)

(b) Stages of Renewal :

The process of renewal will be carried out in two stages as indicated below : First stage SS', 'S', A Class Second Stage B', 'C' and 'D' Class

(c) Time Schedule :

The following time schedule is laid down for the various activities involved in renewal 

(d) Criteria for Renewal :

All Contractors who apply for renewal will be re-enlisted except those falling under the following categories :

Contractors whose contracts have been cancelled and unrealized recoveries exist thereto. Cases, where cancellation of contract has been declared invalid/illegal in arbitration/ court of law, shall be decided after obtaining approval of E-in-C Branch.

Contractors in whose completed works during the last 5 years, serious defects were noticed which are substantially attributed to the performance of Contractors, established through Court of Inquiry or Technical Boards and disciplinary action is pending.

Contractors who could not secure any work in the last 5 years either in MES or any Govt.Dept./ Public Sector Undertaking/AWHO/ANWHO/ DGsNP; or in case they could not secure any work, they have not participated in tenderiri*g in MES or have participated in tendering but have not been in first three lowest.

Contractors who are habitual litigants. Contractors who are already removed on .account of any default on their part, or banned, but ban period is not yet over.

Contractors not found fit ,for renewal for reasons other than (i) to (v) above, i.e., unethical conduct.

Some of the criteria listed above and action to be taken are elaborated as under :

(1) Regarding criteria (i) above, action needs to be taken to obtain the explanation of the Contractor allowing 4 weeks time to furnish replies and the issue decided taking into account the replies of the Contractor.

(2) In respect of criteria (iv) above, a Contractor will be considered a habitual litigant if he moves the court more than once ignoring arbitration clause and the court does not uphold his view.

3) Regarding criteria (vi) above, the Registering Authority will intimate the specific reasons to the next higher Engineer Authority alongwith the Contractor's explanation and his views on the same. (e) Any case of unusual nature may be referred to E-in-C Branch latest by 31 July of last year of yclic period for advice/ clearance.

1.15 Standing Security bond

(a) The Standing Security Bond form is given at Appendix 1.4. Such of the Contractors who ;we executed this bond will not be required to deposit earnest money and security deposits for ividual works.

(b) This bond form covers past contracts also and if Contractors execute the bond on this form, .curities deposited by them in respect of contracts concluded prior to the day of execution of the and may be either refunded to them or appropriated against the Standing Security of the Bond.

(c) The Standing Security Bond must be stamped and may be registered in accordance with the iw of the State in which it is executed. Registration of bond however, is not compulsory, but it Could necessarily be stamped in accordance with the law of the State.

(d) Execution of Standing Security Bond will not be a condition of contract; it will be 'dependent of any or all contracts. However, .in the case of Contractors who decide to execute tanding Security Bond, the execution of the Bond will be a condition precedent to their enlistment.

(e) In the case of Contractors, who execute Standing Security Bond, recovery of amount(s) due .om them will be regulated as per the terms of the Bond.

(f) One bond only will be required of any one Contractor irrespective of the trade group in 'hich he is registered.

(g) Contractors of 'SS' class will be required to execute bond with E-in-C. Contractors of `S' &'A `D' Classes will be required to execute a bond with the Chief Engineer of each Command and in ie case of 'E' Class Contractors with CWE/CE concerned (where there is no CWE office).

(h) Should the value of the Bond be reduced by an enforceable claim, the Contractor will be iquired to make up the deficiency (or meet the claim without touching the Bond) before he is wited to tender for further works.

(j) The value of a bond will not limit the value of a claim by Government under the conditions the contract.

(k) In case of Contractors of `S' and 'A to 'D' Classes, the jurisdiction to be indicated in the blank )ace in the first sentence of para 2 of the bond shall be the Command in which the contractor is ilisted and in para 3 of the bond, the CE Command will be entered as the Registering Officer. 

1.16 suspention down grading removel etc of contractors

(a) (i) The Standardised Code for registration, demotion, removal, suspension of busines banning of business etc. of building contractors, agreed to by Ministry of Defence is contain E-in-C's letter No. 36461/P-1/E8 dated 24 Nov 76. Provision of removal/suspension di non-production of ITCC shall not be applicable, since this requirement has been dispensed wi Government now. The decision regarding removal from registration/ suspensiol business/removal from approved list taken after the issue of show cause notice and considerati representation, if any, in reply thereto should be communicated to the firm concerned. Appendix 1.7)

(ii) Copies of the orders of demotion/suspension of business/ removal from the approve( with a memorandum of reasons, therefore, shall be sent by the concerned Department throu; administrative Ministry, to the other Ministries responsible for major construction work for action as they may deem necessary.

(iii) In respect of a contractor registered for various categories of works viz. building and works, furniture, electrical, sanitary and water supply order regarding removal would apply of one category unless otherwise specified.

(iv) The Ministries of Defence, Railway, Urban Development, Water Resources, Su Transport, Information and Broadcasting are the Ministries concerned with major constru works.

(b) Suspension on account of minor technical offences on the part Contractor :

The Code provides that the competent authority may order suspension of buy with a Contractor for a specific period on account of comparatively minor technical offences.

(i) Under the existing rule in the MES, temporary suspensions for a period not exceedin: year may be ordered by the registering authority as a result of minor technical offenc the part of the Contractors, such as- adoption of inferior material, workmanship an like. In such cases, though the next higher Engineer Authority will be kept informed, permission of that authority is not necessary. This action of temporary suspensi normally taken as a disciplinary measure with ,a view to enabling the Contract improve his organisation etc. It, therefore, becomes necessary to inform the Contract the reasons for the suspension.

(ii) Suspension for similar reasons for a period exceeding one year shall be ordered only the prior approval of the next higher Engineer Authority. In this case also the Contr shall be kept informed of the reasons.     k.

(iii) Suspension for reasons other than technical lapses referred to above, such as susp malpractices or suspected disloyalty to the State, shall be done only with the approval of the E-in-C because in such cases other CEs may have to be kept informer communication is to be sent to the Contractor in such cases.

(c) Demotion to a LowervClass

(i) Demotion to lower class or removal shall be done with the prior approval of the higher Engineer Authority 

(ii) In the case of demotion to a lower class, the communication to the Contractor shall normally be a bare intimation of the fact.

(d) Removal from Approved List :

Action to remove a Contractor normally falls in the idermentioned categories :

(i) Where a contract nr himself desires his name to be removed;

(ii) For any of the reasons mentioned in the Standardised Code. En the above two cases, the communication to the contractor shall be on the lines indicated in )pendix 1.7.

(e) In the cases mentioned above, where intimation to Contractors regarding suspension, motion, and removal is given on the lines indicated above, reference to a legal adviser with wird to the form of communication. to be adopted is not necessary. However, in special cases, tere doubt arises about the form of communication to be adopted, a reference should be made to legal adviser.

(f) Before a final decision to demote, remove or suspend business with a Contractor borne on e list of approved Contractors is taken, the Registering Authority may at its discretion, with hold me of a tender in respect of any particular work to the Contractor whose case is under reference it h the next higher Engineer Authority

(g)Action on Cancellation of Contract :

(i) As soon as a contract is cancelled on account of Contractor's default, the Accepting Officer of the contract shall immediately bring the same to the knowledge of the registering authority who shall examine the case for taking necessary action in terms of the `Standardised Code' depending upon the merits of the case. Further his default shall invariably be brought to the notice of other Zonal Chief Engineers by a separate letter immediately. This action shall be, besides including the case in the quarterly work load return on Contractors with clear direction against further issue of tenders to the said Contractor.

(ii) Once a contract with a Contractor has been cancelled due to his continued default in completing the works, no tenders shall be issued by any MES formation either to the said Contractor or to any of his partners individually or to any of his allied firms, till clearance is obtained from E-in-C's Branch. In exceptional cases where the Command Chief Engineer considers that action against the Contractor in terms of the Standardised Code (or with-holding issue of further tenders) is not advisable, he should forward the case to E-in-C's Branch with his detailed recommendations for a decision. However, pending decision on such cases from E-in-C's Branch, issue of tenders to the firm shall stand suspended.

(h) Suspension, down-grading and removal of contractors of `S' Class shall, however be done ily with the prior concurrence of the E-in-C. Cases may arise wherein an 'S' class Contractor's wformance in one Command may be unsatisfactory, though he may be executing works quite tisfactorily in other Commands. The following procedure should therefore be adopted with regard suspension/ downgrading/removal of a `S' class contractor : 

(i) If the performance of 'S' Class contractor is found to be unsatisfactory in the Commanc where he is initially enlisted (i.e. parent Command) and suspension/ downgrading/  removal from the approved list is contemplated, the Command CE will initiate actior including issue of Show Cause Notice where necessary and seek the prior approval o.  E-in-C subsequently. Simultaneously the Command CE will keep the other Command CEs in whose Commands the Contractor is also enlisted (based on the enlistment in hi: Command), informed of the action proposed to be taken. On receipt of approval of the E-in-C, the Command CE will take action to suspend/downgrade/remove the Contractor Disciplinary action taken by the Command CE, will equally apply to the other Commands.

(ii) If the performance of a 'S' Class Contractor is found to be unsatisfactory in a Commanc other than the parent Command in which he was initially enlisted anc suspension/downgrading/removal from the approved list is contemplated, the Commanc CE will initiate action including issue of Show Cause Notice where necessary anc subsequently seek concurrence/ comments from other Commands, where the contractor i5 enlisted including the parent Command. There after the case will be referred to the E-in-C alongwith the views of other Command CEs for prior approval. E-in-C shall then convey his decision to the Command CE, keeping the parent Command as well as other Commands also informed of his decision.

(iii) Temporary suspension on account of minor technical offences, may be done by any CE Command under whom the Contractor is enlisted. Such temporary suspensions will apply only to the particular Command. However the other Command CEs as well E-in-C will be kept informed.

(j) With regard to Contractor of other classes namely 'A'. to 'D' the following procedure will be followed :

(i) If a Contractor's performance is found to be unsatisfactory in any Zone/Project and suspension, downgrading, removal from the approved list is contemplated by the Zonal/Project CE, he will inform other Zonal/Project CEs in the Command of the action he proposes to take and asks for their concurrence/ comments thereon and in the meantime, temporarily suspend the Contractor so far as his Zone/Project is concerned and will intimate to all CsWE and GEs under him and Command CE. If all other Zone/Project CEs agree or indicate no objection to the proposed action of the Zonal/Project CE concerned, he will forward his proposal to the CE Command for his decision.

(ii) If, however, any Zonal/Project CE does not agree to the aforesaid action and considers the Contractor to be suitable for work in his Zone/Project, no change will be made, in the registration of the Contractor in so far as that Zone/Project is concerned

(iii) CE Command will inform the Contractor and all concerned of the decision indicating, if necessary the Zone/Projects in which Contractor's enlistment remains unaffected.

1.17 Refund of Standing securit

(a) The Standing Security deposited by a Contractor will be refunded to him either on removal of his name from the approved list or on change of category from (a) to (b) of Para 497 of MES Regulations on production of No Demand Certificate (IAFA-451) by the Contractor. 

(b) The refund of Standing Security Deposit will alw4s be subject to the provisions that there are no dues to be recovered from the Contractor by the Government, the prescribed defects liability period of contracts has expired and that the other conditions for the release of the Security Deposit have been fulfilled (also see paras 512, 513 and 514 of MES Regulation, 1968 including amendments thereto).

1.18  Procedure for Refund ofltanding Security Deposit

1.18.1 The following procedure is to be followed for refund of standing security of contractors enlisted in `S' to 'D' class, who have deposited standing security in one Command only even though they are parallel enlisted in more than one Command.

1.18.2 Action by Executive Authorities

(a) The Contractor will be required to apply to the Chief Engineer Command, with whom the standing security is lodged, for release of the security deposit alongwith 'No Demand Certificate'. If he does not send the 'No Demand Certificate' on IAFA-451 (which should cover all contracts held in the entire area of his operations) alongwith his application or if the release is necessitated by the contractor having been removed from the list, the Chief Engineer Command will write to him to furnish a 'No Demand Certificate' on IAFA-451.

(b) The Chief Engineer Command will write under advice to the PCDA, to all GEs and OsC ESDs/EPs in his Command with a copy to CsWE to render to him (under advice to CsWE) a 'No Claim Certificate' to the effect that :

(i) there are no claims outstanding against the contractor.

(ii) a period of 12 months has passed since the completion of the last contract executed by the contractor.

(iii) any guarantee period in any particular contract executed by the contractor is over.

(iv) final bills in respect of all contracts have been paid.     rr

(c) Simultaneously with the action at (a) and (b) above, the CE Command will call for 'No Claim Certificate' in respect of the contractor from the CEs of the other Commands where contractor is having parallel enlisted. A copy of this communication will also be endorsed to PCDA/CDA of these Commands. On receipt of this request the CEs of other Commands will take action similar to that at para (b) above. On receipt of 'No Claim Certificate' from all the GEs in their Commands, the CEs will forward 'No Claim Certificate' in terms of para (b) above, to the Chief Engineer initiating the case.

(d) On receipt of the 'No Demand Certificate' on IAFA-451 from the Contractor and 'No Claim Certificate' from other CEs Command and from the GEs of his own Command, the CE Command initiating the case will send to his PCDA the contractor's 'No Demand Certificate' and a 'No Clair Certificate' based on the certificates received from his GEs and other CEs. It will be his responsibiE to see that 'No Claim Certificate' has been rendered by all parties.

1.18.3 Actions in Offices of Principal Controllers of Defence Accounts

(a) The PCDA of the Command in which the security is lodged will, on receipt of intimation from CE Command (vide para 1.18.2 (b) above) calls for 'No Claim Certificate' from AAOs/RAOs/LAOs etc. of his own Command and also from other PCDA/CDA. 

(b) The PCDA/CDA of other Commands will also take similar action in respect of their areas on receipt of the first communication on the subject (vide para 1.18.2 (c) and 1.18.3 (a) above).

(c) On receipt of(i) 'No Demand and No Claim Certificate' from the CE of his Command (ii) `No Claim Certificates' from his AAOs/RAOs/LAOs etc. (iii) 'No Claim Certificate from other PCDA/CDA, the PCDA of the Command where the Contractor has lodged the standing security will authorise the CE of his Command to release security to the Contractor. 1.18.4 In the case of Contractor other than those stated in para

1.18.1, the procedure to be followed is the same as at paras 1.18.2 and 1.18.3 above, except that the action to write to CEs of other Commands is not necessary

1.18.5 In case of Contractors of 'SS' Class who have deposited standing security to E-in-C's Branch, the procedure to be followed is same as 1.18.2 and 1.18.3 above except that action is to be taken by E-in-C's Branch who will write under advice to PCDA/CDA and all Commands CEs.

1.18.6 In case of Contractors whose standing security is lodged with an authority other than the E-in-C's Branch/CEs Command, the Officer with whom the standing security is lodged shall follow, mutatis mutandis, the procedure set out in para 1.18.2 to 1.18.4 above.

1.19 Related firms

(a) In the trade of works contracts, "business relationship" is the most important factor. This is corroborated with the provision to be made in the notice of tender as such a Contractor or Corporation, wishing to be registered as an approved Contractor, should give particulars of all MES registered Contractors with whom he/it has business relationship, irrespective of the fact whether there is blood/close lationship or not. These would include all sister concerns of the Contractor or Corporation also.

(b) In case of Contractors having blood/close relation with each other but not any business relation whatsoever, particulars of such related contractors need not be given under serial no. 7 of the enlistment form. In such cases, it would not be correct to deny issue of tenders to these contractors if they otherwise fulfill all requirement in selection for issue of tenders. However, while deciding a tender in favour of one party, it shall be ensured that fair competition has taken place.

(c) A Contractor/Corporation is termed to have "buginess relationship" with other Contractor(s)/ Corporation(s) when one or more partner(s)/directors (s) are common.

1.20 Re-enlistment of Proprietorship Firm with Revised Constitution in Favour of Legal heirs of Contractors in Case of Death of the Proprietor.

The Government has accorded sanctions to enlist one of the legal heir of a proprietorship firm with revised constitution in case of death of the proprietor provided they meet the following conditions :

(a) A newly constituted firm shall meet all the criteria as laid down for fresh enlistment of Contractors.

(b) One of the partners (in case tithe newly re-constituted firm seeking re-enlistment as partnership firm) or the legal heir seeking re-enlistment as a proprietorship firm was the power of attorney holder of the original proprietorship firm and had executed work in the original firm in such capacity to the satisfaction of the department. 

(c) Only one firm will be enlisted as reconstituted firm of the original proprietory concern and all the legal heirs other than those who are part of the reconstituted firm shall render irrevocable under taking in the form of affidavit to the newly constituted firm in this regard.

(d) Reconstituted firm shall take over all liabilities and assets of the original proprietory concern.

1.21 Change in Constitution  of enlisted contractors

Reconstitution of enlisted Contractors/Firms should be approved by the enlisting authorities a fte. proper scrutiny and verification that newly constituted firm eets the enlistment criteria and is considered capable of executing the works. Due inquiry shall be conducted about the bonafides of newly inducted partners to avoid any proxy enlistment/transfer of enlistment.

1.22 Parent Comman

The up-gradation, change in constitution, addition/ alteration in categories of enlistment and disciplinary action on the contractor shall be approved only by the parent Command. The Command where contractor is enjoying facility of parallel enlistment shall not have any power to alter the particulars of the contractor than those approved/ amended by parent Command. In case where due to reorganization, original folder of the contractor has been transferred to new Command, the Command taking over the folder shall be considered as parent Command. 

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