Railway's



Registration procedure in Railways:

Works of construction and of supply of material shall be entrusted for execution to contractors whose capabilities and financial status have been investigated and approved to the satisfaction of the Railway. For this purpose, list of approved contractors shall be maintained in the Railway. The said list be revised periodically once in a year or so by giving wide publicity through advertisements etc.

A Contractor including a contractor who is already on the approved list shall apply to the nearest General Manager (Construction), Chief Administrative Officer (Construction), Divisional Railway Manager, Chief Engineer/Chief Engineer (Construction), Chief Signal & Telecommunication Engineer / Chief Signal & Telecommunication Engineer (Construction) and Chief Electrical Engineer / Chief Electrical Engineer (Construction), furnishing particulars regarding :

  1. his position as an independent contractor specifying Engineering organization available with details or Partners / Staff / Engineers employed with qualifications and experience;
  2. his capacity to undertake and carry out works satisfactorily as vouched for by a responsible official or firm, with details about the transport equipments, construction tools and plants etc., required for the work maintained by him;
  3. his previous experience of works similar to that to be contracted for, in proof of which original certificates or testimonials may be called for and their genuineness verified, if needs be, by reference to the signatories thereof;
  4. his knowledge from actual personal investigation of the resources of the area/zone or zones in which he offers to work;
  5. his ability to supervise the work personally or by competent and duly authorized agent;
  6. his financial position;
  7. Authorized copy of the current Income-Tax Clearance Certificate.

An applicant shall clearly state the categories of works and the Area / Zone / Division(s) / District(s) in which he desires registration in the list of approved contractors.

The selection of contractors for enlistment in the approved list would be done by a committee for different value slabs as notified by Railway. An annual fee as prescribed by the Railway from time to time would be charged from such approved contractors to cover the cost of sending notices to them and clerk age for tenders etc.

The list of approved contractors would be treated as confidential office record.

TENDERS FOR WORKS:

Tender Form : Tender Forms shall embody the contents of the contract documents either directly or by reference and shall be as per specimen form, Annexure-I. Tender Forms shall be issued on payment of the prescribed fee to the appropriate contractors on the list of approved contractors. Contractors not on the list of approved contractors, will on payment of the prescribed fees, be furnished with tender forms and they shall be required to submit evidence regarding their financial status, previous experience and ability to execute the works.

However, for service contracts, MSEs registered with District Industries Centre, Khadi and Village Industries Board, Coir Board, National Small Industries Corporation, Directorate of Handicraft, and Handloom, Any other body specified by Ministry of MSME, shall be supplied such tender document free of cost on confirmation (Xerox copy) of their evidence to this effect.

{Ref. : Item-l to Railway Board's letter no. 2016/CE-I/CT/3/MSME, dated 29.08.2016}

Omissions & Discrepancies : Should a tenderer find discrepancies in or omissions from the drawings or any of the Tender Forms or should he be in doubt as to their meaning, he should at once notify the authority inviting tenders who may send a written instruction to all tenders. It shall be understood that every endeavour has been made to avoid any error which can materially affect the basis of tender and successful tenderer shall take upon himself and provide for the risk of any error which may subsequently be discovered and shall make no subsequent claim on account thereof.

Earnest Money :

(1)(a) The tenderer shall be required to deposit earnest money with the tender for the due performance with the stipulation to keep the offer open till such date as specified in the tender, under the conditions of tender. The earnest money shall be as under :

   Value Of The Work    Earnest Money Deposit (EMD)
For  works  estimated to cost up to Rs. 1 crore. 2% of the estimated cost of the work
For  works  estimated to cost more than Rs. 1 crore  Rs. 2 lakh plus ½% (half percent) of the excess of the estimated cost of work beyond Rs.1 crore

The earnest money shall be rounded to the nearest Rs.10. This earnest money shall be applicable for all modes of tendering.

However, for service contracts, MSEs registered with District Industries Centre, Khadi and Village Industries Board, Coir Board, National Small Industries Corporation, Directorate of Handicraft, and Handloom, Any other body specified by Ministry of MSME, shall be exempted from payment of minimum EMD detailed above.

{Ref. : Item-II to Railway Board's letter no. 2016/CE-I/CT/3/MSME, dated 29.08.2016}

(b)It shall be understood that the tender documents have been sold/issued to the tenderer and the tenderer is permitted to tender in consideration of stipulation on his part, that after submitting his tender he will not resile from his offer or modify the terms and conditions thereof in a manner not acceptable to the Engineer. Should the tenderer fail to observe or comply with the said stipulation, the aforesaid amount shall be liable to be forfeited to the Railway.

If his tender is accepted this earnest money mentioned in sub clause (a) above will be retained as part security for the due and faithful fulfillment of the contract in terms of Clause 16 of the Standard General Conditions of Contract. The Earnest Money of other Tenderers shall, save as herein before provided, be returned to them, but the Railway shall not be responsible for any loss or depreciation that may happen thereto while in their possession, nor be liable to pay interest thereon.

(2)  The Earnest Money should be in cash or FDR (Fixed Deposit Receipt)/Banker’s cheque /Demand draft in favor of FA&CAO of the Railway executed by State Bank of India or any of the Nationalized Banks or by a Scheduled Bank.(ACS1 Dt22-09-2014).

{Ref. : Railway Board's letter no. 2013/CE-I/CT/O/45/JV, dated 23.06.2016}

Care In Submission Of Tenders :

Before submitting a tender, the tenderer will be deemed to have satisfied himself by actual inspection of the site and locality of the works, that all conditions liable to be encountered during the execution of the works are taken into account and that the rates he enters in the tender forms are adequate and all inclusive to accord with the provisions in Clause-37 of the Standard General Conditions of Contract for the completion of works to the entire satisfaction of the Engineer.

Tenderers will examine the various provisions of The Central Goods and services Tac Act, 2017(CGST)/ Integrated Goods and services Tax Act, 2017 (IGST)/ Union Territory Goods and Services Tax Act, 2017 (UTGST)/ respective state’s State Goods and services Tax Act (SGST) also, as notified by Central/State Govt. & as amended from time to time and applicable taxes before bidding. Tenderers will ensure that full benefit of Input Tax Credit (ITC) likely to be availed by them is duly considered while quoting the rates.

The successful tenderer who is liable to be registered under CGST/IGST/UTGST/SGST Act shall submit GSTIN along with other details required under CGST/IGST/UTGST/SGST Act to railway immediately after award of contract, without which no payment shall be released to the contractor. The contractor shall be responsible for deposition of applicable GST to the concerned authority.

In case the successful tenderer is not liable to be registered under CGST/IGST/UTGST/ SGST Act, the railway shall deduct the applicable GST from his/their bills under reverse charge mechanism (RCM) and deposit the same to the concerned authority.

{Ref. : Railway Board's letter no. 2017/CE-I/CT/4/GST dated 23.06.2017}

When work is tendered for by a firm or company of contractors, the tender shall be signed by the individual legally authorized to enter into commitments on their behalf.

The Railway will not be bound by any power of attorney granted by the tenderer or by changes in the composition of the firm made subsequent to the execution of the contract. It may, however, recognize such power of attorney and changes after obtaining proper legal advice, the cost of which will be chargeable to the contractor.

In case of manual tendering, tenderers are advised to submit printed copy of duly filled tender documents and related papers in A4 size only.

{Ref. : Railway Board's letter no. 2016/CE-I/CT/SI/4, dated 17.07.2017}

CONSIDERATION OF TENDERS

Right Of Railway To Deal With Tenders : The Railway reserves the right of not to invite tenders for any of Railway work or works or to invite open or limited tenders and when tenders are called to accept a tender in whole or in part or reject any tender or all tenders without assigning reasons for any such action.

Two Packets System of Tendering : The procedure detailed below shall be adopted for dealing with ‘Two Pockets System’ of Tendering :

With a view to assess the tenders technically without being influenced by the financial bids, 'Two Packets System of tendering' shall be adopted. In this system, the tenderers shall submit their quotations/offers in two sealed envelopes; with one cover containing the Technical & Commercial offers and the other cover containing the Financial Bids. The first packet shall be with the objective of scrutinising the capability, possession of appropriate machinery & equipments, financial strength, experience etc. of the tenderers.

The technical details and commercial conditions shall be read out before the tenderers or their representatives at the time of opening of tenders and the same shall be evaluated by the Tender Committee. If the offers are found acceptable by the competent authority (as prescribed by Railway Board from time to time for the estimated value of tender invited), the second packet shall be opened and the tenders shall be processed for finalisation in the normal manner.

However, if on the basis of information contained in the first packet, the Tender Committee needs clarification regarding designs, specifications etc.; discussions shall be held with each individual party/ tenderer after obtaining approval of the Competent Authority.

'Two Packets System' of tendering shall be resorted to for techno-commercial consideration in Works Contract Tenders of values as communicated by Railway Board from time to time on the subject.

{Authority : Railway Board's letter no. 94/CE-I/CT/4 Pt.17, New Delhi, Dated 13.08.2012}

JOINT VENTURE (JV) FIRMS IN WORKS TENDERS

Participation Of Joint Venture (JV) Firms In Works Tender : This Clause shall be applicable for works tenders of value as approved and communicated by Railway Board from time to time.

Separate identity/name shall be given to the Joint Venture Firm.

Number of members in a JV Firm shall not be more than three, if the work involves only one department (say Civil or S&T or Electrical or Mechanical) and shall not be more than five, if the work involves more than one department.

A member of JV Firm shall not be permitted to participate either in individual capacity or as a member of another JV Firm in the same tender.

The tender form shall be purchased and submitted only in the name of the JV Firm and not in the name of any constituent member.

The JV firm shall be required to submit EMD alongwith the tender in terms of the provisions contained in the Para 5 (EM) of part I of GCC.

One of the members of the JV Firm shall be its Lead Member who shall have a majority (at least 51%) share of interest in the JV Firm and also, must have satisfactorily completed in the last three previous financial years and the current financial year upto the date of opening of the tender, one similar single work for a minimum value of 35% of advertised tender value. The other members shall have a share of not less than 20% each in case of JV Firms with upto three members and not less than 10% each in case of JV Firms with more than three members. In case of JV Firm with foreign member(s), the Lead Member has to be an Indian Firm with a minimum share of 51%.

A copy of Memorandum of Understanding (MoU) executed by the JV members shall be submitted by the JV Firm alongwith the tender. The complete details of the members of the JV Firm, their share and responsibility in the JV Firm etc. particularly with reference to financial, technical and other obligations shall be furnished in the MoU. (The MoU format for this purpose shall be finalized by the Railway in consultation with their Law Branch and shall be enclosed alongwith the tender).

Once the tender is submitted, the MoU shall not be modified / altered / terminated during the validity of the tender. In case the tenderer fails to observe/comply with this stipulation, the full Earnest Money Deposit (EMD) shall be liable to be forfeited.

Approval for change of constitution of JV Firm shall be at the sole discretion of the Employer (Railways). The constitution of the JV Firm shall not be allowed to be modified after submission of the tender bid by the JV Firm, except when modification becomes inevitable due to succession laws etc. and in any case the minimum eligibility criteria should not get vitiated. However, the Lead Member shall continue to be the Lead Member of the JV Firm. Failure to observe this requirement would render the offer invalid.

Similarly, after the contract is awarded, the constitution of JV Firm shall not be allowed to be altered during the currency of contract except when modification become inevitable due to succession laws etc. and in any case the minimum eligibility criteria should not get vitiated. Failure to observe this stipulation shall be deemed to be breach of contract with all consequential penal action as per contract conditions.

On award of contract to a JV Firm, a single Performance Guarantee shall be submitted by the JV Firm as per tender conditions. All the Guarantees like Performance Guarantee, Bank Guarantee for Mobilization Advance, Machinery Advance etc. shall be accepted only in the name of the JV Firm and no splitting of guarantees amongst the members of the JV Firm shall be

On issue of LOA (Letter Of Acceptance), an agreement among the members of the JV Firm (to whom the work has been awarded) shall be executed and got registered before the Registrar of the Companies under Companies Act or before the Registrar/Sub-Registrar under the Registration Act, 1908. This JV Agreement shall be submitted by the JV Firm to the Railways before signing the contract agreement for the work. In case the tenderer fails to observe/comply with this stipulation, the full Earnest Money Deposit (EMD) shall be forfeited and other penal actions due shall be taken against partners of the JV and the JV. This Joint Venture Agreement shall have, inter-alia, following Clauses :

Joint And Several Liability - Members of the JV Firm to which the contract is awarded, shall be jointly and severally liable to the Employer (Railways) for execution of the project in accordance with General and Special Conditions of Contract. The JV members shall also be liable jointly and severally for the loss, damages caused to the Railways during the course of execution of the contract or due to non-execution of the contract or part thereof.

Duration of the Joint Venture Agreement - It shall be valid during the entire currency of the contract including the period of extension, if any and the maintenance period after the work is completed.

Governing Laws - The Joint Venture Agreement shall in all respect be governed by and interpreted in accordance with Indian Laws.

Authorized Member - Joint Venture members shall authorize one of the members on behalf of the Joint Venture Firm to deal with the tender, sign the agreement or enter into contract in respect of the said tender, to receive payment, to witness joint measurement of work done, to sign measurement books and similar such action in respect of the said tender/contract. All notices/correspondences with respect to the contract would be sent only to this authorised member of the JV Firm.

  • No member of the Joint Venture Firm shall have the right to assign or transfer the interest right or liability in the contract without the written consent of the other members and that of the employer (Railways) in respect of the said tender/contract.
  • Documents to be enclosed by the JV Firm along with the tender :
  • In case one or more of the members of the JV Firm is/are partnership firm(s), following documents shall be submitted :

Notary certified copy of the Partnership Deed,

Consent of all the partners to enter into the Joint Venture Agreement on a stamp paper of appropriate value (in original).

Power of Attorney (duly registered as per prevailing law) in favour of one of the partners of the partnership firm to sign the JV Agreement on behalf of the partnership firm and create liability against the firm.

 In case one or more members is/are Proprietary Firm or HUF, the following documents shall be enclosed :

Affidavit on Stamp Paper of appropriate value declaring that his/her Concern is a Proprietary Concern and he/she is sole proprietor of the Concern OR he/she is in position of "KARTA" of Hindu Undivided Family (HUF) and he/she has the authority, power and consent given by other partners to act on behalf of HUF.

 In case one or more members is/are limited companies, the following documents shall be submitted :

a)  Notary certified copy of resolutions of the Directors of the Company, permitting the company to enter into a JV agreement, authorizing MD or one of the Directors or Managers of the Company to sign JV Agreement, such other documents required to be signed on behalf of the Company and enter into liability against the company and/or do any other act on behalf of the company.

b)  Copy of Memorandum and Articles of Association of the Company.

c)  Power of Attorney (duly registered as per prevailing law) by the Company authorizing the person to do/act mentioned in the para (a) above.

All the Members of JV shall certify that they are not black listed or debarred by Railways or any other Ministry / Department / PSU (Public Sector Undertaking) of the Govt. of India/State Govt. from participation in tenders/contract on the date of opening of bids either in their individual capacity or as a member of the JV Firm in which they were/are members.

{Authority : Railway Board’s letter no. 2002/CE-I/CT/37 JV Pt III, Dated 05/14.11.2013}

Credentials & Qualifying Criteria : Technical and financial eligibility of the JV Firm shall be adjudged based on satisfactory fulfillment of the following criteria :

 Technical Eligibility Criteria (‘a’ or ‘b’ mentioned hereunder) :

(a)   Either the JV Firm or Lead Member of the JV Firm must have satisfactorily completed in the last three previous financial years and the current financial year upto the date of opening of the tender, one similar single work for a minimum of 35% of advertised value of the tender.

(OR)

(b)  (i) In case of composite works (e.g. works involving more than one distinct component, such as Civil Engineering works, S&T works, Electrical works, OHE works etc. and in the case of major bridges – substructure, superstructure etc.), for each component, at least 35% of the value of any of such components individually for single similar nature of work should have been satisfactorily completed by the JV Firm or by any member of the JV Firm in the previous three financial years and the current financial year upto the date of opening of tender. The member satisfying technical eligibility criteria for the largest component of the work shall be the Lead Member and that Member shall have a majority (at least 51%) share of interest in the JV Firm.

(ii)  In such cases, what constitutes a component in a composite work shall be clearly pre-defined with estimated tender cost of it, as part of the tender documents without any ambiguity. Any work or set of works shall be considered to be a separate component, only when cost of the component is more than Rs. 2 crore each.

(iii) However, as long as the JV Firm or any member of the JV Firm meets with the requirements, in one or more components of the work, and has completed a minimum of 35% of the advertised value of the tender for the same value of the component, and resultantly, all the members of the JV collectively, then meet the prescribed technical eligibility criteria, the JV shall stand technically qualified.

Note : Value of a completed work done by a Member in an earlier JV Firm shall be reckoned only to the extent of the concerned member's share in that JV Firm for the purpose of satisfying his/her compliance to the above mentioned technical eligibility criteria in the tender under consideration.

Financial Eligibility Criteria : The contractual payments received by the JV Firm or the arithmetic sum of contractual payments received by all the members of JV Firm in the previous three financial years and the current financial year upto the date of opening of tender shall be at least 150% of the estimated value of the work as mentioned in the tender.

Note :  Contractual payment received by a Member in an earlier JV Firm shall be reckoned only to the extent of the concerned member's share in that JV Firm for the purpose of satisfying compliance of the above mentioned financial eligibility criteria in tender under consideration

{Authority : Railway Board’s letter no. 2002/CE-I/CT/37, Dated 07.09.2011}

Definition:

In these Regulations for Tenders and Contracts the following terms shall have the meanings assigned hereunder except where the context otherwise requires.

(a)  “Railway” shall mean the President of the Republic of India or the Administrative Officers of the Railway or Successor Railway authorized to deal with any matters, which these presents are concerned on his behalf.

(b) “General Manager” shall mean the Officer-in-Charge of the general superintendence and control of the Zonal Railway/Production Units and shall also include the General Manager (Construction) and shall mean and include their successors, of the Successor Railway.

(c) “Chief Engineer” shall mean the Officer in charge of the Engineering Department of Railway and shall also include the Chief Engineer (Construction), Chief Electrical Engineer, Chief Electrical Engineer (Construction), Chief Signal & Telecom Engineer, Chief Signal & Telecom Engineer (Construction) and shall mean and include their successors of the Successor Railway.

(d) “Divisional Railway Manager” shall mean the Officer in charge of a Division of the Zonal

Railway and shall mean and include the Divisional Railway Manager of the Successor Railway.

(e) “Engineer”  shall  mean  the  Divisional  Engineer  or  the  Executive  Engineer,  Divisional

Signal & Telecom Engineer, Divisional Electrical Engineer in executive charge of the works and shall include the superior officers of Open Line and Construction organisations on the Railway of the Engineering, Signal & Telecom and Electrical Departments, i.e. the Senior Divisional Engineer/Deputy Chief Engineer/Chief Engineer, Senior Divisional Signal & Telecom Engineer / Dy.Chief Signal & Telecom Engineer, Senior Divisional Electrical Engineer / Deputy Chief Electrical Engineer and shall mean & include the Engineers of the Successors Railway.

(f) “Tenderer” shall mean the person / the firm / co-operative or company whether incorporated or not who tenders for the works with a view to execute the works on contract with the Railway and shall include their personal representatives, successors and permitted assigns.

(g)   “Limited Tenders” shall mean tenders invited from all or some Contractors on the approved or select list of Contractors with the Railway.

(h)    “Open Tenders” shall mean the tenders invited in open and public manner and with adequate notice.

(i)  “Works” shall mean the works contemplated in the drawings and schedules set forth in the tender forms and required to be executed according to the specifications.

(j)  “Specifications” shall mean the Specifications for Materials and Works of the Railway as specified under the authority of the Ministry of Railways or Chief Engineer or as amplified, added to or superseded by special specifications if any, appended to the Tender Forms.

(k)  “Schedule of Rates of the Railway” shall mean the Schedule of Rates issued under the authority of the Chief Engineer from time to time.

(l)   “Drawings” shall mean the maps, drawings, plans and tracings or prints thereof annexed to the Tender Forms.

(m)  “Contractor’s authorized engineer” shall mean a graduate engineer having more than 3 years’ experience in the relevant field of construction work involved in the contract, duly approved by the Deputy chief Engineer.

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