Introduction to Contracts and Contract Documents · Calling of tenders · Dispensing with Tenders : quotation system · Classes of tenders · Earnest money and security deposit for works contract · Opening of tenders and scrutiny, briefing note, etc. · Formation of tender committee · Consideration of tenders, negotiations, etc. · Acceptance of tenders · Price variation clause · Services/Revenue contracts Definition of Contract, Type of Contracts, Forms of Contract, Contract Documents Conditions to be fulfilled before Calling for Tenders • Before calling tenders, the following conditions should be fulfilled : (i) The Railway is in a position to hand over the site of work and plan to the contractor. (ii) The Railway should be ready with full knowledge of character and scope of work.
(iii) The Railway is ready with design, detailed drawing, schedule of quantities. (iv) Tender documents for sale is ready from the date of notification of tender
notice • In case of tenders involving foreign exchange for expenditure in excess of Rs. 50,000/- prior reference to the Rly. Board shall be made for their approval before tenders are called for. • In contracts where the foreign currency component is estimated to be in excess of Rs. 2 lakhs, special procedure prescribed for invitation of tenders etc. should be followed • Sanction of detailed estimate necessary before calling for tenders : dispensation only in “extremely urgent” cases.
• Value of tender forms based on contract value TENDER NOTICE • The tender notice should in all cases state: – (i) Name and place of work (ii) Approximate cost of work (iii) Amount of earnest money and the form in which it can be deposited. (iv) Period of completion. (v) Place and time where tender documents can be seen. (vi) Place and time where tender documents can be obtained. (vii) Date and time up to which tender documents will be sold.
(viii) The amount, if any, to be paid for such documents. (ix) The place where the date on which and the time when tender are to be submitted and are to be opened. (x) Any other information relevant in tender notice. • How to invite Tenders ? –Notices in Railway offices. –Advertisements in vernacular/local newspapers –Advertisement in National/International newspaper –Registered letters to approved contractors • Time frame –Normally, Tender notice should be published at least a month in advance of the date of opening. Extremely urgent works ,three weeks notice. –Tender paper for sale should be available three weeks before opening of tender. TENDER DOCUMENTS • The tender documents consist of: – (i) Instructions to tenderers and conditions of tenders,
(ii) Regulations for tenders & contracts, GCC & standard specifications. (iii) Special conditions of contract, if any. (iv) Special specification, if any.
(v) Tender schedule. (vi) The form of agreement, which the successful tenders, is required to execute • Approximate quantities/value item wise should always be indicated in the tender papers while calling for the tender for works