TENDERS PROCEDURES

IN
WATER RESOURCES DEPT

Er Ghanta Surender,
Former Director,
WALAMTARI

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 TYPES OF CONTRACTS

• ITEM RATE ( BOQ) CONTRACT

• The dept will call for tenders, indicating the details of
items to be executed, their quantities, rates as per dept
estimate.
• The bidder has to quote item wise rates.
• The work will be awarded to the bidder who quotes the
lowest rates, and the agreement is entered.
• The department will furnish all the designs, drawings,
specifications for each item of work to be executed.
The contractor has to execute the work accordingly.
• The payment will be made, for the work done , as per
the item wise rates quoted by the contractor,.
• The quantities can be increased or decreased.
 Lump Sum (percentage) Contract
The tenders are called, indicating the details of
items of works to be executed, their quantities
and rates, and the total cost of the project.
The contractor has to quote a lump sum price, as
a + or - % (excess or less) over the estimated
contract value ECV of the project.
Item wise rates are not to be quoted / not
applicable.
Work is awarded to the lowest bidder.
The dept will furnish all the designs, drawings,
specifications for the works to be executed.
Payment is made for the work done, based on the
estimated rates plus or minus tender premium.
.The project as a whole is to be completed within
the time frame fixed.
 E.P.C (Engineering Procurement Construction)
Contract
• The tenders are called by specifying the detailed
scope of work / components of works to be
executed.
• Quantities, item wise rates, cost of the project etc are
NOT furnished in the tender.
• The contractor himself has to investigate, prepare
designs & drawings, estimates and quote a lump
sum price to complete the work, in all respects.
• The work will be awarded to the lowest bidder.
• The contractor will furnish the designs and drawings
of all components for approval of the department
• The work will be executed as per the drawings
approved by the department
• Payment is arranged based on the stage wise
progress achieved ( not based on the quantities).
 UNIT LENGTHS FOR ARRANGING INTERMEDIATE PAYMENT
•

• For Structures
• (a) 30% on completion of foundations including earthwork,
• (b) 30% on completion of sub-structure,
• (c) 40% on completion of super-structure, balance items.
• Earth work excavation for canals;
• a) 100 M for canals with discharge more than 10000cusecs,
• b) 250 M for canals with discharge between 1000 to 10000cusecs
• c) 1.0 Km. for canals with discharge between 10 to 1000 cusecs
• B) E.W excavation in Deep Cuts; Berm wise, with a bay length of 25
mts, subject to a max of 1 km in a reach.
• LINING
• 100m for a normal cutting,
• 25m for Deep Cuts.(depth > 12m)
• Lining shall be divided in to bed & sides, and the two sub-components
shall be divided in proportion of quantities duly withholding 1 %
towards completion of joints.
• The payment for lining of bed without sides shall be restricted for a
maximum length of 1 km duly with holding 5 % till the side lining is 5
completed.
 UNIT LENGTHS FOR ARRANGING INTERMEDIATE PAYMENT
• Tunnels,Draft tubes, Pump House, Surgepool and Cistern:
• Earth work Excavation:
• i. Tunnels,Draft tubes: The Unit length is 25m bay.
• ii. Pump House & Surgepool: 5m depth of cutting is a unit.
• 2 Civil works other than Earth work
• i. Tunnels, Draft tubes: For lining the Unit length is 25m bay.
• ii. Pump House, Surgepool & Cistern: In stages of every 1m from the
deepest foundation level.
• Delivery main
• a) Material supply & Fabrication – 55%,
• b) Lining / coating, Testing of pipes – 15 %,
• c) Conveyance, Laying and Field jointing – 20 %,
• d) Refilling and Hydro testing –10 %.
• Distribution system @ Rs.16,500/- per acre.
• Electro-Mechanical equipment
• 85% of the quoted price for supply of goods at site
• 10% of quoted price on erection, testing and commissioning
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• 5% of the quoted price at the time of final bill.
B.O.T( Build Operate Transfer) Contract
• The tenders are called specifying the details of work, period of
operation, the cess / tax leviable etc, terms and conditions
• The bidder has to construct the project at his cost & operate
it for the specified period and then transfer the project to
Government .
• During the operation period, the bidder can collect the cess /
tax from the beneficiaries of the project, at the rates fixed /
accepted by the govt.
• The work will be awarded to the bidder who offers lowest
cess /taxes chargeable on the user.
• The work is to be executed as per the designs, drawing and
specifications approved by the dept.
• No cost is payable to the contractor,
• Bridges on major rivers, Bypass roads, Highways, mini hydel
projects, commercial shopping complexes etc
 Pre-qualification (Short listing)

• In case of specialized nature of works, like tunnels,

Major lift irrigation projects etc, tenders for pre-
qualification (short listing) will be called for, inviting the
firms having required experience in that specialized
category of works.

• They will be short listed against some specified

qualification criteria.

• Whenever the tenders are called, for that specialized

category of work, only these short listed firms will be
eligible to tender.

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 Tender (Bid) documents
Tender (Bid) documents comprise of
a) Instruction to bidders on qualification criteria etc.
b) General / Special Conditions of contract containing
the rules and regulations, terms and conditions, to
be fallowed in execution of the project.
c) Specifications of works to be executed
d) Price bid containing details of items of works to be
executed, their quantity, Rate, Amount, Total cost
of the work put to tender as per department
estimate.
e) Drawings.
f) The tender documents are to be approved by the
authority who accorded technical sanction

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Calling of tenders
• Tenders shall be called, for all works costing more than
Rs.5000/.
Tender notice publication
• All works : In Tender digest (weekly)
• 25 to 50 Lakhs : In 2 Telugu dailies
• Above 50 Lakhs : In 1 English & 1 Telugu daily
• All works costing above Rs.10.0 Lakhs have to be kept on
e-Procurement platform
Time Period for filing tenders
. 14 days for first call
. 7 days for second call
Earnest Money Deposit (EMD) Payable
• 1% of Estimated cost is to be paid for participating in the
tender ( returnable to the unsuccessful bidders)

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 Contractors eligibility to tender
• Special class upto & above 10 crores
• I class upto 10 crores
• II class upto 2 crores
• III class upto 100 Lakhs
• IV Class upto 50 Lakhs
• V class upto 10 Lakhs

• Higher class contractor can tender for

works in lower classes

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 Types of Tenders
• Single cover system:
• The Technical data / price bid are kept in single
cover.
• All the bids received are opened , and the lowest
bidder awarded the work.

• Double cover system:

• The technical data and the price bid are to be kept in
two separate covers.
• First technical data will be opened and evaluated
with reference to the qualification criteria prescribed.
• The price bids of technically qualified bidders only
will be opened, and the lowest bidder identified.
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 Receipt of Tenders
• Conventional Tender Box Method
• The tenders of works costing below Rs
10 Lakhs are called under conventional
Tender box Method.

• eprocurement Method
• The tenders of all works costing more than
Rs 10 Lakhs are called through
eprocurement platform on
www.eprocurement .gov.in
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 Conventional (Tender box) system

• Tenders for works costing below Rs 10 Lakhs are

called through conventional tender box system.
• Tender documents will be issued by the tender
calling authorities on payment of 1% of the value of
work through DD (returnable to un successful
bidders).
• Tenders have to be deposited in the boxes provided
at the office of tender calling authority
• Tender box will be sealed on the last date/time fixed
• Tenders will be opened on the date/time fixed, in the
presence of bidders present
• Tenders will be evaluated and the lowest bidder
announced. 14
Works costing below Rs.50 lakhs
– Any registered contractor is eligible to
tender.
– Single cover system is fallowed
– No other technical qualification criteria,
except valid registration as contractor, IT
clearance, Sales Tax clearances etc.
– Lowest bidder is awarded the work

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Qualification criteria for works costing more than Rs 50 lakhs
General
The bidder should be a registered contractor with Govt. of A.P
– The bidder should be registered with I.T / Commercial
Tax/ labour etc departments and should have filed up to
date returns to I.T department and Commercial Tax etc
departments.
Technical
The bidder should satisfy the following criteria for opening of
the price bid.
a) Completed similar works of value (not less than 50% of
ECV) in any one year, during the last 5 years.
b) Executed the following quantities in any one year during
last 5 years.
• ELSR’s ……… KL * Pipelines……Km
• W T Plant……..MLD Pumps………..HP
• Other principal items
(Quantities are fixed considering 50% of the quantities
to be executed in the project in one year ) 16
c) Should possess the key construction equipment specified
d) Should possess the technical personnel specified
e) Should possess the liquid assets (3 months requirement
of funds)
f) Should have own Q.C. lab or tie up with a Q.C
institute.
g) The available bid capacity as worked out below shall
be more than E.C.V (estimated contract value) put to
Tender.
Available bid capacity = 3AN-B
Where:
• A = Max value of civil eng works executed in any one
year, during the last 5 financial years.
• N = Period of completion in years ( of the work put to
tender)
• B=Value of balance works on hand, yet to be executed
during the period of completion of present work.
Note: Value of A shall be updated to current year
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considering escalation at 10% per annum.
 DOCUMENTS TO BE ENCLOSED BY THE BIDDER

• 1 Contractor Registration Certificate

• 2 Xerox copy of the DD/BG of EMD
• 3 Annual Turn over certificate certified by CA with balance sheet.
• 4 APGST/VAT or CST Document. VAT, CT clearances
• 5 Certificate in support of existing commitments.
• 6 Experience certificate in support of Quantities executed
• 7 Income Tax Document. PAN, ITR
• 8 Joint Venture agreement,
• 9 Memorandum of Understanding for pumps/ pipes etc
• 10 Qualification certificate of key personnel.
• 11 Declaration on critical equipment owned .
• 12 Declaration of no litigation history
• 13 Declaration on genuinity of certificates enclosed
• 14 Similar work experience certificate for the works completed
• 15 Solvency for liquid assets
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 ‘ e ‘ Procurement:
All works costing above Rs.10 lakhs shall be
through “e” procurement platform at the web
site www.eprocurement.gov.in.
• The tender notice, tender schedules etc will
be uploaded at the above web site by the
concerned departments.
• The bidders should get them selves registered
at the above web site for participating in the
tenders called through eprocurement
• A digital signature is issued to the
contractors registered at the above site for
filing the Tenders
• The tenders on line can be seen department
wise / cost wise / district wise / circle wise.
• The bidder interested to tender, should
upload his documents, certificates, price bid, 19
xerox copy of the DD/BG for EMD etc
 ‘e’ Procurement: (contd.)
. Till the closure date / time, the bidders can alter
their offer any number of times, but after the closing
date / time they cannot alter their bids.
. Till the scheduled date/time fixed for opening of the
tenders, nobody can see the bids filed by the
contractors.
. On the scheduled date & time, the technical bids
will be opened “on line” and the technically qualified
bidders are identified, verifying their eligibility, with
reference to the qualification criteria specified.
• On the scheduled date & time, the price bids of the
technically qualified bidders will only be opened “on
line”, and the lowest bidder is identified and listed at
the above web site.
• The details of bidders participated, technically
qualified and the price quoted by the bidders etc can
be seen by all the bidders who participated in the
Tender at the above web site online. 20
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Tender percentage acceptable
a) Up to + 5% excess over E.C.V
b) Up to – 15% less than E.C.V
c) for tenders less than –15% the difference cost between
tendered amount and 85% of E.C.V. shall be deposited by
the bidder.
d) no negotiations are permitted.

Tender acceptance powers

Executive Engineer up to Rs.10 lakhs
Superintending Engineer up to Rs.50 lakhs
Chief Engineer/ENC up to Rs.200 lakhs
Tender Committee above Rs.200 lakhs
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 Nomination works
• In case of emergency works (breach closing,
flood dames etc) where there is no time to call
for tenders, the works can be let out on
nomination, to registered contractors, at
estimated rates, under intimation to the next
higher authority, explaining the urgency, up to
the fallowing limits:
• E.E…………..Rs 1,00,000
• S.E…………..Rs 2,00,000
• C.E…………..Rs 3,00,000

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 Thank you

Mail your queries if any to

ghantasurenderer@yahoo.com

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 Criteria adopted for State / Externally funded projects.
Externally funded by World bank/
Item STATE / NABARD/ japan.
AIBP
Tender documents Chief Engineer By Bank
approval
Tender % acceptable +5% No limit
Bid evaluation Technical Bid, Price Bid Technical Bid , Price Bid in single
in two separate covers. cover . Bids in duplicate
Price bids of technically All the bids are opened, and tech
qualified bidders are only eligibility of lowest bidder evaluated
opened
EMD 1% of ECV 1%
Bid approval Tender Committee World Bank

Annual Turn over Not applicable Annual turn over in one year equal to
cost of the project

Cmpletion of similar Completed similar Work Completed 90% of similar work in

work in any one year during any one year
last 5 years
Physical quantities 50% of the BOQ Same
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Balance Bid capacity 2AN-B 1.5 AN-B