GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

S.W-Tribal Welfare Engineering Department - Execution of works – streamlining the

tender procedure and enhancement of technical sanctions to Executive Engineers and
Superintending Engineers – Instructions – issued.

Social Welfare (TW – Ser –II – I ) Department

G.O.Ms.No.65 Dated: 03.07.1999
Read the following:
1) G.O.Ms.No.83 Social Welfare (SCP II) Department dt.17.04.1985.
2) G.O.Ms.No.30 Social Welfare (V2) Department dt.17.02.94.
3) G.O.Ms.No.90 Social Welfare (Ser.II – I ) Department dt.21.08.98
4) G.O.Ms.No.132,Transport Roads & Buildings (RI) Deptt.dt.11.8.1998.
5) G.O.Ms.No.23,Irrigation & command Area Developt.(PW:COD) Dept.dt.5.3.99
6) From CE(TW) Hyd. Lr.No.PA/DMI/3045/89,dt.21.06.1999

ORDER:

1. In the G.O.1st to 3rd read above ,Government have issued certain Rules for
Tribal Welfare Engineering Wing in regard to invitation and acceptance
of Tenders,Technical sanction powers of Engineers of the Department .In the
G.O.4th & 5th cited read above Government have issued comprehensive orders
to be followed by all department works for steamlining the tender procedure
and enhancement of Technical sanctions to Executive Engineers,
Superintending Engineers. In pursuance of these orders the Chief engineer
(TW) Hyderabad has requested the Government for issue of executive
instructions for Tribal Welfare Engineering Wing.

2. Government after careful consideration of the proposal of the Chief Engineer ,

(TW) Hyderabad have placed the matter before the A,P.T.A.C. for
approval.The A.P.T.A.C . in it’s meeting held on 23.06.99 have approved the
proposal.The Government accordingly here by issued in the G.O’s.1st to 3rd
read above

a) Items to be included in the estimate after its preparation as per SSR to

make it realistic
1) Turn over Tax @1% in data’s of various items relating to works of canal digging,
lining and repairing ,road works and other than the above 3% on all categories of
contracts.

2) A lump sum provision shall be made in abstract the estimate towards Insurance
considering the agreement period and defect liability period of two years for the
original works and one year for maintenance works, by obtaining details of
Insurance premium from Insurance organization.

3) A lump sum provision shall be made in abstract estimates to meet the expenditure
to be incurred by the contractor on engaging Technical personnel based on numbe
of persons indicated in the tender document and permissible wages as per SSRs.

4) A lump sum provision shall be made in the abstract estimate towards Banker’s
chargers for obtaining Bank guarantees for payment of EMD .Performance
security and release of retention amount as per prevailing procedure based on the
period i.e period of completion plus defect liability period.The Chief Engineer,
concerned shall assess duly obtaining the details there of from the scheduled Bank
and suitable provision shall be made. Till than, no provision for this item need be
provided.

5) A provision at 1 percent of the cost of cement towards construction of temporary

store shed shall be added on the data of relevant items.

Note :- The above items 1 to 5 are not applicable in the preparation of estimates
for works to be Entrusted on nomination basis as per reference 2nd & 3rd cited.

b) Reduction of permissible tender excess

The tenders with an excess of 15% of the estimated rates shall be summarily
rejected .No negotiation will be conducted with tenders.

c) Steps to be taken to ensure that ultimately tender excess is not more than the
prescribed limit:

With a view to prevent collusion or the formation into a ring by contractors, the
following procedure shall be followed.

1. In order to maintain anonymity, tender schedules shall be supplied on payment of

a cost to any contractor interested in tendering. The present practice of collecting
EMD at the time of sale of Tender Schedules shall be dispensed with. Here
after,the Contractors shall pay the EMD at the time of filing their tender
documents only.The EMD shall be at the rate of 1% of estimate contract value
 and it shall be paid in full ,without concession, either in shape of Bank Demand
Draft or unconditional Bank Guarantee.

2. For the works costing up to Rs.10.00 lakhs the existing procedure of collecting
EMD in the form of crossed Demand Draft at the time of filing tender schedules
shall be allowed.The eligibility criteria shall not be made applicable for these
works.

3. Tender schedules shall be issued till a date prior to the last date of submission of
tenders.

4. Time allowed from the date of publication of tender notice to the date of receipt of
tender is reduced to 14 days for the first call and 7 days for the second call

5. The total values of works grounded in any year including works given through
tenders or through nomination shall not exceed the budget provided to each
district.

6. The Contractors will no longer be required from now onwards to produce

clearance certificate from the Mines Department and Seigniorage charges will be
deducted by the concerned works Department from the bills of the contractors for
the materials used on the work only.

7. The Contractors will be allowed the facility of deduction of sales tax at the rate of
2% at source and be exempted from producing the clearance from commercial
Tax Department.

8. Expert committees at different levels shall be constituted by Heads of

Departments to resolve the disputes of the Contractors in so far as technical issues
are concerned.

9. To resolve the problems of the Contractors vis-à-vis the Government ,an

institutional mechanism will be created at the district level with the Collector as
the Chairman and at the State level the Chief Secretary as Chairman to review
periodically and to redress the difficulties of the Contractors.

10. To enforce proper quality control standards in execution of works,the

performance of the Contractors and the Engineers incharge of the work shall be
graded by associating professional bodies and suitable incentive/punitive system
will be implemented on the basis of such grading and stern action will be taken
for defective works against both the Engineers as well as contractors.

11. Quality Control shall here after be the primary responsibility of the Engineers
executing the works.
12. In order to prevent collusion amongst the tenders,for the first two tender calls if
the premium quoted are found to be high/abnormal,the works shall be entrusted to
the reputed contractors on selection basis by the competent committees at the
district level up to Rs.1 Crore and at State level above Rs.1 Crore. The
Contractors in five members each time from out of the published lists of the
contractors with proven track record shall be called upon to quote their prices and
the lowest among them shall be awarded the work within the maximum ceiling
limit prescribed.

13. As a measure o encourage good contractors,the procedure of registration shall be

rationalized and made more scientific by introducing a grading system,which will
taken into account the technical qualifications of the contractors,their standing in
the civil contract fields,past track record of execution of works, ownership of
plant and machinery, financial status and training and memberships in
professional bodies. The contractors with history will be suitably down graded
/black listed or debarred.

d) How to deal with cases where the tender filled is less that the estimated cost:

Tender upto 15% less than the estimate may be accepted but for tenders less than
15% of the estimate,a bank guarantee or Demand Draft for the difference between
the tendered amount and 85% of the estimate value should be taken so that if the
tenderer leaves the work midway and the Department is forced to call for the work
once again ,the bank guarantee or Demand Draft shall be used to finance the re-
tendered work.

e) To improve the work culture and speed up the execution of works,the

Government issues the following orders:

1) The power of technical sanction be enhanced to Rs.10.00 lakhs in respect of an

Executive Engineer and Rs.50.00 lakhs in respect in respect of Superintending
Engineer and these Engineers be given the powers to approve the tender-
notices,tender-schedule and finalise the tenders at their level for the works for
which they are technically empowered to sanction.
2) Entrustment of works on Nomination basis to VTDA’s as permitted in
G.O.Ms.No.90 of SW (TW-ser-II-I) Dt:-21.8.98 will not be affected by this
order.
3) In addition to the modification approved in G.O.Ms.No.90 of SW (TW-Ser-II-I)
Dt:-21.8.98.the following items shall be entrusted on TENDER BASIS as
recommended by APTAC in the meeting held on 6.11.98.

i)Protected Water Supply Schemes (MPWS / PWS) shall initially be

entrusted to the VTDA’s on nomination basis as per G.O.Ms.No.30 Dt:-17.2.94 of
SW Dept.If the VTDA fails to ground the work within 15 days (fifteen days) from
the date of entrustment,the work can be entrusted on tender basis.

ii)All road works such as laying of new ,Special repairs to existing roads
and taking up metalling of roads whose estimated cost is more than Rs.5.00 Lakhs
shall be entrusted on tender basis.

4) Tender shall be received in 2 parts in 2 different sealed covers.The first cover

shall contain the qualification data Viz., annual turnover and value of works
under execution.The second cover will contain the financial bid for the works in
question all engineers opening tenders shall first open the first sealed cover
containing the qualification data and see weather the tender is qualified by using
the formula ::2(AN-B) estimate value ,where A is annual turn over on all civil
contracts of the tenderer, N is period of completion for the work for which
Tender is submitted and B is the value of works under execution by the tendered.

The second cover containing the financial bid will be opened only of those
tenderers who are qualified according to this formula.The financial bids of the
tenderers who are not qualified shall not be opened and they shall be kept in the
sealed covers only.

5) For the works costing above Rs.5.00 lakhs and upto Rs.50.00 lakhs the tender
notice shall be published in district editions of two telugu dailies with the largest
circulation.For works costing more than 50.00 lakhs, the tenderer notices will be
published in one telugu daily and one English daily having largest circulation at
the state Level.To reduce the cost of each publication ,the format for the tender
notice in the newspaper shall be finalised by the Board of Chief Engineers so that
the cost of the advertisement is kept to be minimum.

6) The tender schedules should contain not only the quantities but also the rates
worked out by the department,and the amount for each item and the total value of
the contract.The tender will not be required to quote item wise. He should
indicate his willingness to do the work either at the estimated value of the work
or at a percentage in excess of the estimated value of the work or at a percentage
in less than estimated value of the work.The work order should be issued to the
successful tenderer on same day or next day of opening of tenders subject to
fulfillment of conditions prescribed.Once the works order is issued to the
successful tenderer,EMD of all the remaining contractors be refunded within 2
days by Regd.Post Acknowledgement due.

7) The monetory limits for registration of contractors is revised as follows:

------------------------------------------------------------------------------------------------------
Sl.No Class of Monetory Limits Authority to register
Contractor
------------------------------------------------------------------------------------------------------
1. Special Class above Rs.5.00 Crores Board of Chief Engineers
2. Class-I Rs.1.00 to 5.00 Crores Chief Engineers
3. Class-II Rs.50 to 100 Lakhs Superintending Engineers
4. Class-III Upto Rs.50.00 Lakhs Executive Engineers

8) Contractors who execute their works within time as per specification shall be
issued a merit certificate acknowledging their timely completion ensuring good
quality .The merit certificate shall be given in a public function with due
publicity to increase the prestige and standing of the contractors in the
society.The performance of the contractors on the works shall be obtained and
maintained in the offices of the registering authorities Viz., Executive Engineers,
Superintending Engineers, Chief Engineers and Board of Chief Engineers .The
performance shall be assessed annually and the results shall be made use of while
considering applications for renewal of contractors registrations.

9) The site order book shall be maintained as provided for in the codes and it should
contain the remarks and instructions of all engineers who visit the works
Viz.,The Executive Engineer ,Superintending Engineer ,Chief Engineer.

10) In order to avoid ambiguity in implementing the order ,detailed guidelines are
formulated in Annexure I and II to this order.

11) The Chief Engineer (TW) Hyderabad is requested to take necessary action and
issue instructions to all concerned to follow the above instructions

(BY ORDER AND IN THE NAME OF GOVERNOR OF ANDHRA PRADESH)

S.RAY
PRINCIPAL SECRETARY TO GOVERNMENT

TO
The Chief Engineer (TW),Hyderabad
The Comissioner of Tribal Welfare,A.P.,Hyderabad.

Copy to the:
P.S.to Minister(Tribal Welfare)
P.S.to Principal Secretary to Government,Social Welfare Department.
P.S.to Secretary to Government ,Tribal Welfare Department.
All The District Collector’s
 All P.O’s of ITDA
All DTWO’s in the state.
Spare
//forwarded by order//

ANNEXURE-I

1.0 PREPARATION OF REALISTIC ESTIMATES

1.1 STANDARD DATA

a) The standard data which forms basis for preparation of estimates for all
Civil Engineering work shall be updated taking the improved construction
technology into consideration.
b) The Chairman Board of Chief Engineers and Engineer-in-Chief (Admin) I
& CAD Department shall complete the updation of Standard data with in a
period of six months.
1.2 FINALISATION OF STANDARD SCHEDULE OF RATES (SSR).

a) The SSrs shall be finalised before June without exception every year.The
preparation of SSR shall be made more transparent by associating the
representatives of Construction Industry, National Academy of Construction and
the Institution of Engineers (India) A.P .State Center,at the time of finalization
.For cities like Hyderabad and Visakhapatnam, Unit rates will be prepared for
various component items.

1.3 PROVISIONS TO BE MADE IN ESTIMATES:

In order to prepare realistic estimates,the following provisions are permitted to be

added in the estimate.

a) Turnover tax at the rate of 1 percent for items relating to canal digging
lining,repairing road works,etc ., where the earth work excavation and
embankment is involvede and for works other than the above, turnover
tax at 3 percent shall be added in the data.

b) A lumpsum provision shall be made in the abstract estimate towards

Insurance considering the agreement period and defect liability period of
two year for the original works and one year for maintenance w2orks,by
obtaining details of Insurance premium from Insurance Organisations.

c) A lumpsum provision shall be made in the abstract estimates to meet the

expenditure to be incurred by the Contractor on engaging Technical
Personnel based on number of persons indicated in the tender document
and permissible wages as per SSRs.
 d) A lumpsum provisions shall be made in the abstract estimate towards
Banker’s chargers for obtaining Bankguarantees for payment of
E.M.D.,performance security and release of retention amounts as per
prevailing procedure based on the period i.e. period of completion plus
defect liability period.The Chief Engineer concerned shall assess duly
obtaining the details there of from the Scheduled Banks and suitable
provision shall be made.Till than ,no provision for this item need be
provided.

e) A provision at 1 percent of the cost of Cement towards construction of

temporary store shed shall be added on the data of relevant items.

Note:-The above items (a) to (e) are not applicable in the preparation of
estimates for the works to be entrusted on nomination basis as per
references 2nd & 3rd cited.
1.4 At the time of preparation of estimate,proper care should be taken to provide the
lumpsum provisions for the aforesaid items and nessary conditions also should be
incorporated in the tender document for suitable reimbursement to the contractors
from out of the above provisions, however not exceeding the amounts indicated
against each,on production of the Insurance policies,copies of appointment orders
with payments vouchers, Bank guarantee etc. Failing to comply with the above
,reimbursement shall not be allowed but suitable penalty shall be imposed for not
engaging technical personnel and the Engineer-in-Charge shall take insurance
policy at the cost of contractor duly deducting the premium from the contractor’s
bills.Contractor has to take policy in favour of the employer i.e.Department.

2.00 TECHNICAL SANCTION:

a) Not withstanding anything contained in the relevant codal provisions,APSS and

Government orders with regard to the procedure of according the technical
sanction,enhanced powers are delegated to the field officers as follows:

E.Es upto :Rs.10 lakhs

S.Es upto :Rs.50 lakhs
CEs upto :Value of the administrative approval.

3.0 PREPARATION OF TENDER DOCUMENTS AND FINALISATION OF

TENDERS

3.01 TENDER DOCUMENTS

3.01.1 TENDER NOTICE

The tender notice or Notice Inviting Tenders (NIT) will be approved by the
Engineers for the works for which they are competent to accord technical sanction.

The tender documents will be prepared by the concerned Engineers,bringing

greater transparency.The provisions made in the estimate for items which are
reimbursable to the Contractors with conditions therefor and other relevant conditions
relating to the implementation of contract and other eligibility criterion in the
APSS,APWD code and,Government orders the following will be incorporated wherever
necessary.

3.1.2 DEFECT LIABILITY PERIOD

In partial modification of G.O.Ms.No.132,dt:11.8.1998,the defect liability

period is increased to two years for the original works and one year for maintenance
works,duly taking into account normal wear and tear.

3.1.3 SEGNIORAGE CHARGES & SALES TAX:

The Seigniorage charges will be recovered from Contractor’s bills as per the rates
prescribed in the contract documents for the materials used on the work only.The present
practice of insisting for production of documentary evidence for having paid the
seigniorage charges in items of G.O.Ms.No.243,dt:8.5.1986 and in the absence of such
production of the evidence, the imposition of five times penalty is dispensed with.

For sales tax/tax on works contract,contractors are given an opinion to opt for the
composing schemes under section 5(g) of the APGST Act and those opting for it are
subject to a tax deduction of 2% at source on the total value of the contract.In such
case,the departments will not insist on production of clearance certificate and no
assessment of tax will be needed.

3.1.4 PAYMENT OF BILLS:

The contractors will be permitted to submit their work bills once in a month and payment
will be made after proper check of quality with in a reasonable time limit.The final
payment of the contractor should not be delayed for want of certificate from the quality
control staff.

3.1.5 QUALITY CONTROL MEASURES:

Emphasis on the quality will be paramount.The concerned Department are directed to
strengthen the equality Control Machinery of the Government by keeping separate
Quality Control cell under the direct control of Government.The quality control cell
should see that quality audit is done periodically and also avolve suitable punitive action
against contractors as well as Engineers in charge of the work who violate proper quality
standards.

3.1.6 CONSTRUCTIO MATERIALS:

The present practice that the Contractor has to procure at his own cost the principal
construction materials like cement,steel,bitumen,sand,metal soils etc.,shall continue.

3.1.7 EARNEST MONEY DEPOSIT:

In order to maintain the anonymity,Tender Schedules will be supplied on payment of a

cost to any contractor of eligible class interested in bidding,without insisting for
EMD.This is introduced to enable prevention/reduction of extraneous forces interfering
or pressurizing the contractors to quote or under quote or not to quote at all in the
tenders.Hence the practice of collecting EMD in the shape of demand draft at the rate of
1and ½ percent subject to a maximum of Rs.1.00 lakhs or Rs.75,000/- from the
contractors who have lump sum deposit with the concerned Chief Engineers will be
dispensed with and in lieu thereof,Bank guarantee or DD obtained in favour of the
officers as specified in the tender,at the rate of 1% of the Estimate contract value will
collected without any concession.The balance EMD will be collected at the present rates
while concluding the agreement and Bank Guarantee will be unconditional and
irrevocable Chief Engineer will be permitted to take back their deposits,subject to
conditions that they are free from all liabilities.

3.1.8 APPLICABILITY OF QUALIFICATION CRITERIA & EMD ETC.,

The qualification criteria at para 3.02 as well as modified procedure of collecting EMD in
the shape of Bank Guarantee will not be made applicable for the works costing Rs.10
lakhs (ECV) and below. For above works single cover system shall be followed and the
EMD shall be submitted along with the completed Tender Schedule.

3.1.9 SUBLETTING:

The subletting of the work is strictly prohibited,unless it is permitted in the tender and in
the event it is found that any portion of the work is sblet,action will be taken against the
contractor by debarring him from participating in the tenders for the period as decided by
the Engineer-in-Chief/Chief Engineer concerned.However,the debarring period shall not
be less than one year.
3.2 QUALIFICATION CRITERIA:

3.2.1 To qualify for award of the Contract ,each bidder in its name should have,during
the last five years(specified financial years i.e.they should be immediately
preceding the financial year in which tenders are invited).

a) Satisfactorily completed (not less than 50 percent of Contract value ) as a prime

contractor ,similar works of value not less than Rs-(usually not less than 50% of
Estimated value of contract)in any one year.
b) Executedin any one year,the following minimum quantities of works:

-Cement concrete including RCC and PSC Cu.M.

-Earth work in both excavation and Enbankment Cu.M
-(relevant principal items be indicated)

(usually 50 percent of the expected peak quantities of construction per year).

3.2.2 Each Bidder should further demonstrate:

a) Availability (either owned or leased or to be procured against mobilization

advances) of the Following key and critical equipment for this work.

Note :Based on the studies carried out by the Engineer,the minimum suggested
major equipment to obtain the completion of works in accordance with the
prescribed construction schedule/mile stones are shown in the above list)

b) Availability of the Key personnel wth adequate experience as required should be

indicated based on the requirement for the work to be executed.

c) Liquid assets/credit facilities of not less than Rs.lakhs (credit lines/letter of

credit/solvency certificate from Banks etc.shall be equivalent of the estimated
cash flow for three months in peak construction period.

d) EMD in the shape of Bank Guarantee in the standard format enclosed,for Rs…..
(One percent of the estimated contract value) to be valid for the period as
indicated at para 1.03 (d) i.e,period of competion plus defect liability period.

e) Experience relating to the works executed in State/Central Goveernment

departments or State/Central Government departments or State/Central
Government undertakings shall only be considered.

3.2.3 BID CAPACITY:

The sub Contractor’s/GPA holder’s experience shall not be taken into account in
determining the bidders compliances with the qualifying criteria.The tenderers who meet
the requirement qualification criteria will be qualified only if their available bid capacity
is more than the estimated contract value.The available bid capacity will be calculated as
under:

Assessed Available Bid Capacity: A X N X 2-B

Where
A=Maximum value of civil engineering works executed in any one year during the last
five years (updated …..*price level)taking into account the completed as well as works in
progress).

N=Number of years prescribed for completion of the works for which tenders are invited.

B=Value of existing commitments and ongoing works to be completed during the period
of completion of works for which tenders are invited.

Note:-The statement showing the value of existing commits and ongoing works as well as
the stipulated period of completion remaining for each of the works listed should be
issued by the Engineer-in-Charge of Government department /undertaking not below the
rank of Executive Engineer or equivalent and countersigned by the rank of SE or
equivalent.The statement to the above effect will be clearly enclosed to the Bidding
Document ,and the tendered shall furnish the particulars invariably in the same format
failing which the tender shall be treated as incomplete and summarily rejected.

@=at ….*price level.Financial turnover and cost of completed works of previous years
shall be given weightage of 10% per year to bring them to …price level*

The financial year in which bids are invited.

3.2.4 Even though the tenderer meets the above qualifications criteria.He/she is
subject to be disqualified if he/she is found to have misled or made false
representation in the forms,statements submitted in proof of the qualification
requirements or record or poor performance such as abandoning works not
properly completed in the contract,inordinate delays in completions,litigation
history and or financial failures and /or participated in the previous tendering for
the same works and had quoted unreasonably high bid prices.In addition to the
above ,even while execution of the work,if found that the Contractor had
produced false/fake certificates of experience ,he/she will be blacklisted and
work will be taken over involving clause 60 (a)of PS to APSS.

3.2.5 Tenders shall be valid for a period of 1/2/3 months as the case may be .Before
the expiry of the Validity,the authority competent to call for tenders shall seek
for further extension of validity from the contractors and in case the validity is
not extended his/her tender will not be considered and the EMD shall be returned
.During the period of validity if any tendered withdraws his tender,his/her EMD
shall be forfeited.
4.0 EVALUATION OF TENDERS:
4.1 RECEIPT OF TENDERS:
The tender schedules shall be issued upto one day prior to the last day of submission of
tenders.The tenders shall be received at the place and time as specified in the Tender
Notice.The contractor shall be allowed to submit the tender either personally or through
his agent or by post.In case of submission of tender by post the risk and responsibility for
either loss or delays in transit of the same is to to be borne by the contractor.The tender
opening authority will not consider any tender received by him after expiry of date and
time fixed for receipt of tenders.

4.01.1 Tenders will be received in two parts in 2 different sealed covers.Cover-A and
Cover-B .The Cover-A shall contain the qualification data Viz.Annual Turnover and
value of works under execution etc.,as at para 3.02.The Cover-B will contain the
financial bid for the work in question.The Cover ‘A’ and Cover ‘B’ will be sealed and
kept in another sealed envelope (Cover ‘C’) supplied by the department while issuing
Tender Schedules.

4.1.2 The EE’s and SE’s delegated with power to invite the tenders will open and
evaluate the tenders as per the qualification criteria. While opening the tenders
care should be taken to first open Cover-C in the presence of the tenders or their
authorized representatives and other officials concerned on the specified date and
time and also to verify whether the Cover-A and Cover-B are properly sealed and
minutes be recorded to this effect then and there only. Incase the covers A&B are
any one of them are found/unsealed. Such tenders will not be opened and
summarily rejected.

4.1.3 First Cover (Cover-A) with superscription as “TECHNICAL BID” which shall
contain the Qualification data as described at Para 3.02 will be opened.

4.1.4 SECOND COVER (Cover-B) with the superscription of “PRICE BID” shall
contain the schedule-A i.e, the statement of description of work, quantity,
estimate rate and amount. Price bid (Cover-B) of those tenderers who are
determined as qualified as per eligibility criteria will be opened on the date
specified in the tender notice and the Cover-B of un-qualified tenderers will not
be opened and kept in the safe custody till the tenders are finalized and there after
shall be returned to them along with the E.M.D. The Schedule- A of Price bill
shall contain the working items indicated as Part-I and LS provisions as Part-II.
The Premium or discount quoted by the Contractor hall be applicable only for
Part-I. However, the provisions contained in the Part-II will be operable basing on
the conditions provided in the tender Schedules. The tenderers will have to state
clearly their willingness to execute the work at the percentage excess or less or at
par over the ECV indicated at Part-I at the space provided therein.
4.1.5 Before recommending/accepting the tender, the tender accepting authority shall
verify the correctness of certificates submitted to meet the eligibility criteria and
specify for experience, the authenticated agreements of previous works executed
by the lowest tenderer, shall be called for.

The EMD will be returned to the qualified but unsuccessful tendered either after
finalization of tenders or on expiry of validity of tenders which ever is earlier.

4.2 FINALISATION TENDERS:

4.2.1 Tenders will be finalized by the EEs/SEs for the works costing upto their powers
to accord Technical Sanction.

4.2.2 The Chief Engineer shall finalize the tenders for the works costing upto Rs. 1
Crore. The tenders for the works costing more that 1 crore will be referred to COT
along with Technical Bid Evaluation and Price Bid evaluation for the
consideration. The COT shall scrutinize the tenders submitted by Engineer-in-
Chief/ Chief Engineers/Project Administrators in accordance with the conditions
stipulated in the Tender document and in case of any discrepancy or non-
adherence to the conditions, the same shall be communicated which will be
binding both on the tender concluding authority and the contractor. In case of any
ambiguity, the decision taken by the COT on tenders shall be final.

4.2.3 Negotiations are not permitted to be conducted at any level.

4.2.4 The time allowed from the date of publication of tender notices to the date of
receipt of tenders is 14 days for the first call and 7 days for the second call the
tenders will be received following three box systems i.e, at SE’s office, Office of
the SP of the District where the SE’s office is located and one in the office of the
CE or by port to the SE concerned, if the cost of work is more than 1 crore.

4.2.5 TENDER PERCENTAGE:

a). MAXIMUM CEILING:

The maximum permissible tender excess is 15% over the estimated contract value
in case the Excess s more than 15% the tenders shall be summarily rejected. At
the same time, the tenders with the maximum permissible percentage excess are
not necessarily to be accepted, they may be accepted basing on the trend of
tenders accepted either in the project or in near vicinity for similar works. In case
the trend of tender available relates to considerable time gap., the accepted
premium of the tenders be updated with reference to the present price index and
with justifiable reasons only on the tenders shall be accepted.

b). DISCOUNT TENDERS (Percentage less than Estimated Cost).

 Tenders upto 15% less than the estimate may be accepted but for tenders which
are less by more that 15% of the estimate, a bank guarantee or demand draft for
the difference between the tendered amount and 85% of the estimate value should
be taken so that if the tenderer leaves the works midway and the department is
forced to call for tenders for the work once again, the bank guarantee draft shall
be used to finance the re-tendered work.

4.2.6 The tenders received are found to have abnormally high percentage or within the
or permissible Ceiling limits prescribed but under collusion or due to unethical
practices adopted at the time of tendering process, shall be rejected.

4.2.7 When such situation arises that even for second tender call, the reasonable
percentage in fair and Free environment is not received, the works will be
entrusted on selection basis from out of the list of contractors whoa re possessing
the eligibility criteria as specified in the tender document with proven tract record
prepared as per the procedure laid down in the Annexure-II will be selected. In
turns of 5 contractors at each and will be asked file their price bids at a specified
place and time before the competent committees as stated at para 4.03 to entrust
work. The Committee assessing the reasonableness of excess percentage quoted
will recommend to award the work to the lowest of all the contractors
participated. The contractor to whom the work is entrusted on selection basis will
be provided necessary security and protection if requested at his cost.

4.3 COMMITTEES TO ENTRUST WORKS ON SELECTION BASIS:

For the purpose of above selection and entrustment of works to contractors the
composition of the committees at District and State level and powers delegated to
them are as under:

a) For the Works costing upto Rs.1 crore, a committees consisting of a

Collector of the District in which work is located. The SE concerned with
work and two SEs of two other works Departments Viz., Panchayat Raj,
R&B and the Irrigation will recommend to the competent authority to a
ward the work.

b). For the works costing above Rs. 1 crore, the committee consisting of the
C.O.T. and the CE concerned and Engineer-in-Chief (Irrigation) will
recommend and award the works on the selection basis.

5.0 COMMITTEES TO RESOLVE INTER-DEPARTMENTAL PROBLEMS:

In order to expedite execution of works and to remove any difficulty that

contractors may face in obtaining clearances and other infrastructure facilities
form various departmental such as shifting of power lines, procurement of
blasting materials, power supply connection etc., at the District Level, the
Collector will formulate Committees and take necessary steps. The Chief
 Secretary will have periodical review with the concerned Secretaries and Chief
Engineers in order to resolve the difficulties which could not be sorted out at
District Level. The Heads of the Departments are directed to constitute suitable
committees at different levels for speedy settlement of the different kinds of or
levels of disputes of technical nature by the CEs concerned.

S.RAY
PRINCIPAL SECRETARY TO GOVERNMENT.

ANNEXURE-II

1. Government hereby ordered to introduce and improved system of periodic

monitoring and evaluation of the performance and capabilities of contractors. The
contractors who have already registered with the competent authorities for the
corresponding classes will continue to have the registration valid till the period
indicated therein. However their class of registration is subject to evaluation of
the performance as per the evaluation format appended, based on which they shall
either be down grated or upgraded as per the credits, obtain in the evaluation.

2. The evaluation will be done based on the following criteria.

i. Technical Qualification.
ii. Standing in Civil Contract field relating to the specialization for which
the contractor submits the particulars either for registration or
upgradation.
iii. Records of execution of works.
iv. Plant and machinery available with the contractor.
v. Financial status.
vi. Training in National Academy of Construction (NAC)
vii. Membership of BAI or any other professional bodies.
viii. History of Litigation.

The basis for the above criteria and procedure to furnish the details
required therefore are discussed below.
3. BASIS FOR EVALUATION CRETERIA.

i. RECHNICAL QUALIFICATION: Role of technical agents in execution

of Civil Engineering works is of quote significance more particularly in
L.S. contracts. Keeping in view this cretirian is introduced and the credits
are indicated for self-qualification of the contractor and qualification and
experience of the employed engineers by the contractors. In addition
suitable credits are also assigned for the man power possessed by the
contractor who are trained in N.A.C.

ii. STANDING IN CIVIL CONTRACT FIELD: The Experience of the

contractor in the civil contract field is considered as one of the important
creterian in as much as the experienced contractor will have greater
exposure to the working environment, procedure of execution of public
works and also have quality consciousness. Considering the above aspects
the total length of experience as well as the experience in the present class
of contract are assigned with suitable credits.

iii. RECORD OF EXECUTIION OF WORKS: in addition to experience in

execution of Civil Engineering works a contractor may possess
experience in certain specialized fields such as irrigation works, R&B
works, water supply and sanitary works etc. in case a contractor files an
application for either registration or renewal or upgradation in a particular
field of specialization, his record of execution of works should be
assessed. Therefore in this creterian credits have been assigned for
executing similar nature of works during the last 5 years from the year in
which he files application so as to evaluate is upto date knowledge of the
work culture since the last five years because the contactor’s registration
is valid for a period of 5 years. Similarly credits are also assigned for
having completed the similar nature of works within the agreement period
unless and otherwise it is extended for the reasons beyond the control of
the contractor. However it a contractor completes the works ahead of the
agreement period additional weightage will be given by the suitable
methodology indicated therein.

iv. PLANT AND MACHINERY: it is expedient that a contarctor should

posses necessary plant and machinery of his own that are required to
execute the nature of work for which his performance is valuate, in order
assess his capability of executing the works within the stipulated period.
Hence suitable credits have been assigned to this creterian. However the
required the plant and machinery will be indicated for the different works
by the concerned engineers who evaluate the performance.

v. FINANCIAL STATUS: Since the Government have been implementing

the works in various public works departments with huge outlays, it is
necessary to assess the financial capability of a contractor to commence
 the work and continue the work atleast for a minimum period of 3 months
without waiting for the bills to be paid by the concerned authorities. The
creterian has therefore been given importance and suitable credits are
assigned for different components viz. annual average turnover,
availability of liquidated assets such as solvency/over draft facility and
other credit lines etc.

vi. CONTRACTORS TRAINED IN NAC: In case of the contractor himself is

trained in the National Academy of Construction it so expected that he
will be able possess better skills in execution of works as well as contract
management, hence suitable credits are assigned to this creterian.

vii. MEMBERSHIP IN BAI AND ANY OTHER PROFESSIONAL

BNODIES: This creterian is introduced to assess character and
professional ethics of a contractor. Various items have been identified
under this criterian which are assigned suitable credits for each of them.
The sum total of credits under this criterion will be subtracted from the
total credits achieved by a contractor for all the above seven criteria. It is
imperative to mention that in case the concealment or misleading/false
information is furnished, the contractor shall face very severe action such
as blacklisting or debarring from the contracting field.

The contractor shall submit an affidavit to the effect that the history of
litigation furnished by him is true and incase it is detected at any stage he
will abide by the action taken by the Government without approaching to
any court whatsoever for redressal. Before taking action against the
contractors the engineers will, after through probe and enquiry will give
suitable opportunity to the contractor for offering his explanation and then
initiate action against him.

4. PROCEDURE TO FURNISH THE PARTICULARS FOR EACH OF THE

ABOVE EVALUATION CRITERIA::

The contractors shall furnish the information of each of the criterian (from I to
Vii) mentioned above following the formats supplied to them by the concerned
engineers who evaluate their performance, however the formats will broadly
contain the particulars to be furnished as stated below:

i. With regard to qualification, the copies of certificate issued by the

University/Colleagues/Polytechnic or any other competent authority
shall be submitted.

ii. The copies of registration right from the inception, to date shall be
furnished.
iii. With regard to execution of works during the last 5 years the
contractor shall produce the copies of experience certificates issued by
the competent authority not below the rank of Executive Engineer and
counter-signed by the Superintending Engineer or equivalent
indicating description of work. date of agreement, agreement
value/Revised agreement value date of commencement, agreed date of
completion, actual date of completion, total value of work done,
reasons for delay if any, the physical quantities executed during each
financial year etc.

iv. The copies of relevant document in proof of possessing the equipment

shall be produced.

v. The audited balance sheet, income tax returns for the past 5 years shall
be submitted along with solvency, overdraft facility etc., in proof of
the credit facility available to him.

vi. The copies of certificates issued by the competent authority of NAC.

vii. Copies of Membership of Builders Association or any professional

body.

NOTE: The copies of all the certificates documents shall invariably be

attested by a serving Executive Engineer of any works department
of Government of Andhra Pradesh. For incorrectness of the copies
of certificates/documents when compared with the Originals action
will be taken against EE who attested the copies and the
Contractor.

S.RAY
PRINICIPAL SECRETARY TO GOVERNMENT.
 EVALUATION PROCEDURE

1. TECHNICAL QUALIFICATION 10

a) Contractor’s Qualification BE…..3

b) Employed Engineers

i) B.E. with 4 years experience 2 each

ii) Diploma with 4 years experience 1.5 each

c). Trained Manpower from NAC

Maximum of 10 credits.

2. STANDING IN CIVIL CONTRACT FIELD: 15

a) Experience form lowest class upto the

year of present class Registration (for each
year 1 credit) subject to a maximum of 5.

b) Experience in the Present class from the

year of registration to the present class to
the year of Evaluation (for each year 4 credits)
subject to a maximum of 15.

3. RECORD OF EXECUTION OF WORKS 25

(during preceding five years).

a) Similar Nature of works as prime

contractor for each Rs. 2.00 Cr. (2) credit
and additional Rs. 1 Cr in that year will
fetch (1) credit. Cumulative of all for 5 years.

b) Works completed within agreement period

each work of Rs. 1 Cr. Will be given (1) credit
maximum of 25 credits.

4. PLANT AND AMCHINERY: 10

 Requiring to the work of specialization.

5. FINANCIAL STATUS 25

Annual average-turn over during the preceding five years.

a) For each Rs. 1 Crore.

b) For every additional Rs. 1 Crore.

Subject to a maximum of 25 credits.

6. CONTRACTOR TRAINED IN NAC(CDI) 10

7. MEMBER OF BAI AND OTHER 5

PROFESSIONAL BODIES:

8. HISTORY OF LITIGATION 35

During preceding five years.

a) Arbitration/lost 2
b) Court cases/stayed 10
c) determined work 10
d) Taken over under CI
61 PS to APSS 13

S.RAY
PRINCIPAL SECRETARY TO GOVERNMENT.