Categorized . for every commercial staff

Subject :Uniformity in Works, Earnings and Service Contract

Letter No : 2018 Trans Cell ST NIT Period dt. 24.10.2018

Subject matter of the circular

GOVERNMENT OF INDIA MINISTRY OF RAILWAYS 

RAILWAY BOAR

No. 2018/Trans. Cell/S&T/NIT Period 

New Delhi, dated: 24.10.2018 

The General Manager, All Indian Railways/PUs, NF(Con), CORE The DG/RDSO/Lucknow, DG/NAIR/Vadodara CAOs, DMW/Patiala, WPO/Patna, COFMOW/NDLS, RWP/Bela, CAO/IROAF 

Sub: Process reforms: Uniformity of Provisions in Works, Earning & Services Contracts

Ref

(1) Railway Boards letter No. 2018/Trans. Cell/S&T/NIT Period dated 26.07.18. (2) Railway Boards letter No. 2018/CEI/CT/8 dated 09.08.18. (3) Railway Boards letter No. 2017/Trans/01/Policy dated 08.02.2018

With reference to Boards letters under reference (1), (2) & (3) above and in order to bring in uniformity in certain provisions of Works, Earning & Services Contracts, Board (ME, MRS, MT, FC & CRB) have approved the following

Tender Notice Period The provisions of Tender Notice Period for works contract issued vide Boards letter no. 2018/Trans Cell/S&T/NIT dated 26.07.2018 shall be applicable to the Works, Earning & Service Contracts with following modification: For tenders valued upto and including Rs 2 crore, invited through e tendering, the tender notice period can be reduced upto 14 days in consultation with associate finance. The tender may also be invited with the approval of DRM/CHOD/PHOD pending finance concurrence

Advertisement of Tender Notice in News Papers The existing instructions regarding advertisement of Tender Notice in News Papers for works contract issued vide Board’s letter no. 2018/CEI/CT/8 dated 09.08.18 shall also be applicable to the Earning & Service Contracts. Tender Validity Period The existing instructions of tender validity period for Works Contract issued vide Boards letter no. 2018/Trans Cell/S&T/NIT dated 26.07.2018 shall also be applicable to the Earning & Service Contracts

Handling Vitiation during variation in Contract Quantities The existing instructions regarding Handling Vitiation during variation in contract quantities for Works Contract issued vide Boards letter no. 2017/Trans/01/Policy dated 08.02.2018 shall also be applicable to the Earning & Service Contracts

822 24.10.1

Dispensing with Vetting of Brief Note & Size of TC Recommendation 

The existing instructions regarding Dispensing with Vetting of Comparative Statement & Brief Note for Works Contract issued vide Boards letter no. 2017/Trans/01/Policy dated 08.02.2018 shall also be applicable to the Earning & Service Contracts in which system generated statements from e tendering website are available and post tender opening, can directly be seen by the Tender Committee

System of Verification of Tenderers Credentials The existing instructions regarding System of Verification of Tenderers Credentials for Works Contract issued vide Boards letter no. 2017/Trans/01/Policy dated 08.02.2018 shall also be applicable to the Earning & Service Contracts

Calling Tenders Pending Sanction of Detailed Estimates/Reserve Price The existing instructions regarding Calling Tenders Pending Sanction of Detailed Estimates for Works Contract issued vide Boards letter no. 2017/Trans/01/Policy dated 08.02.2018 shall also be applicable to the Earning & Service Contracts pending sanction of detailed Estimates/Reserve Price

Discharge of Tenders The existing instructions regarding Discharge of Tenders for Works Contract issued vide Boards letter no. 2017/Trans/01/Policy dated 08.02.2018 shall also be applicable to the Earning & Service Contracts

  1. 9

The Minimum Tender Notice Period for Works, Earning & Service tenders shall be reckoned from the date of the publication of the tender on the etendering website

This issues with the concurrence of Associate Finance of Transformation Cell of Railway Board

Kindly acknowledge the receipt and ensure compliance

(Umesh Balonda) Executive Director/S&

Transformation Cel

No. 2018/Trans. Cell/S&T/NIT Period 

New Delhi, dated: 24.10.2018 

  1. 1. PFAs, All Indian Railways & Production Units 2. The ADAI (Railways), New Delhi 3. The Director of Audit, All Indian Railways 

Janeel liman 

(Sanjeeb Kumar) Executive Director Accounts 

Transformation Cell 

No. 2018/Trans. Cell/S&T/NIT Period 

New Delhi, dated: 24.10.2018 

Copy to 

  1. 1. The ADAI (Railways), New Delhi 2. The Director of Audit, All Indian Railways 3. The Director, Indian Railway Institute of Civil Engineering, Pune. 4. The Director, Indian Railway Institute of Mechanical and Electrical Engineering, Jamalpur. 5. The Director, Indian Railway Institute of Signal Engineering and Telecommunications

Secunderabad. 6. The Director, Indian Railway Institute of Electrical Engineering, Nasik. 7. The Executive Director, Indian Railways Centre for Advanced Maintenance Technology

Gwalior. 8. The Director, Indian Railway Institute of Transport Management, Lucknow. 9. The Registrar, Railway Claims Tribunal, Delhi. 10. The General Secretary, IRCA, New Delhi. 11. The Chief Commissioner of Railway Safety, Lucknow. 12. The Secretary, Railway Rates Tribunal, Chennai. 13. The Chairman, Railway Recruitment Board, Ahmedabad, Ajmer, Allahabad, Bangalore

Bhopal, Bhubaneshwar, Chandigarh, Chennai, Gorakhpur, Guwahati, jammu & Srinagar

Kolkata, Malda, Mumbai, Muzaffarpur, Patna, Ranchi, Secunderabad and Trivandrum. 14. Managing Director, CRIS, Chanakyapuri, New Delhi 

Copy to: 1. The Genl. Secy., AIRF, Room No. 248, & NFIR Room No. 256C, Rail Bhavan 2. The Secy. Genl., IRPOF, Room No. 268, FROA, Room No. 256D & AIRPFA, Room No

256D Rail Bhavan Copy to

  1. 1. PS to MR, MOS(S), MOS(G) 2. CRB, FC, ME, MTR, MRS, MS, MT, SECY, DG(S&T), DG (RHS), DG (RPF), DG 

(Stores), DG(Pers) 3. All AMs, Principal Executive Director & Executive Directors of Railway Board 

82

24.10.18 

(Umesh Balonda) Executive Director/S&

Transformation Cell 

GOVERNMENT OF INDIA MINISTRY OF RAILWAYS 

RAILWAY BOARD 

No. 2018/Trans.Cell/S&T/NIT Period 

New Delhi, dated: 26.07.201

The General Manager, All Indian Railways/PUs, NF(Con), CORE The DG/RDSO/Lucknow, DG/NAIR/Vadodara CAOS, DMW/Patiala, WPO/Patna, COFMOW/NDLS, RWP/Bela, CAO/IROAF 

Sub: Tender Notice PeriodWorks Contracts

Ref

(1) Railway Board letter no.2017/CEI/CT/10Procurement Cycle dated 23.10.2017. (2) ECRs letter no. ECR/ADM/MSOP Modification/Note 10Para 05/Part A/Works 

Matter dated 21.06.2018

With reference to ECRs letter under reference (2) above and in supersession of Boards letter at (1) above, Board (ME, FC & CRB) have approved the following

  1. 1. The changes in existing para 1238 of Engineering Code as: 
  2. 1238. Tender Notice: Sufficient notice should be given for the submission of tenders, which in the case of large works should not be less than 21 days. The above prescribed tender notice period may be reduced from 21 days in the exceptional circumstances in consultation with the Principal Financial Adviser

However 

For tenders valued upto and including Rs 2 crore invited through etendering, the tender notice period can be reduced upto 14 days in consultation with associate 

finance. 2. For works in remote locations or of specialized nature or amount higher than Rs 50 crore

adequate tender notice period (not less than 21 days) should be given for preparation to the 

potential bidders in order to ensure competitive and well informed bidding. 3. The tender validity period shall be kept three times the tender notice period. However, the tender 

validity period in case of self certification of credentials will continue as per railway board

letter no. 2017/Trans/01/Policy dated 08.02.2018. 4. The minimum tender notice period shall be reckoned from the date the tender is published on the 

etendering website. The publication in newspaper will continue as per the present practice and 

the effective date of tender notice will be the date of uploading on etendering website. This issues with the concurrence of Associate Finance of Transformation Cell of Railway Board

820 

.1.18 

(Umesh Balonda) Executive Director/S&

Transformation Cell New Delhi, dated: 26.07.2018 

No. 2018/Trans.Cell/S&T/NIT Period 

  1. 1. PFAS, All Indian Railways & Production Units 2. The ADAI (Railways), New Delhi 3. The Director of Audit, All Indian Railways 

Sea , Kчлал 

(Sanjeeb Kumar) Executive Director Accounts 

Transformation Cell 

SM13 

भारसरकार Government of India रेल मंत्रालMinistry of Railways 

(ad aš) (Railway Board

सत्यापन जा 

No. 2018/CEI/CT/

New Delhi, dated 09.08.201

As per list attached 

Sub: Advertisement of Tender Notice in Newspaper Tenders Invited Through 

IREPS

Ref: Railway Boards letter No. 2014/CEI/CT/0/10/TN dated 01.7.2014 

Railway Board vide letter under reference, had issued instructions regarding publishing Tender Notices and corrigendum / addendum in newspapers

  1. 2. Now, GFR 2017 have done away with the need for publishing advertisements in newspapers for procurement
  2. 3. With the implementation of etendering in railway works contracts through IREPS, Board (ME & FC) have decided to discontinue the requirement of newspaper advertisement of works tenders invited through eprocurement website (i.e. IREPS) with following stipulations

(i) The date of publishing of tender on Railways eprocurement portal (IREPS) shall be treated as date of publication of tender notice for the purpose of calculation of sufficient notice period for tender in terms of Para 1238 of Engg. Code

(ii) Any instruction requiring minimum number of days for tender opening from the date of publication of tender invitation in print media/bulletin/journal shall now be the same minimum number of days required from the date of uploading on eProcurement website (i.e. IREPS)

  1. 4

This issues with the concurrence of Finance Directorate of the Ministry of Railways

0916410 

(अनिल कुमार) निदेशक/सिविल इंजीनियरिंग(जी)/रेलवे बोर्ड 

Phone : Rly: 03047598, MTNL:01123047598

No. 2018/CEI/CT/

New Delhi, dated 09.08.2018 

Copy forwarded for information to: 1. The PFAs of all Indian Railways. 2. The Deputy Comptroller and Auditor General of India (Railways), Room No. 224, Rail 

Bhawan, New Delhi

Single 

For Financial Commissioner/Railways 

भारतसरकार GOVERNMENT OF INDIA रेलमंत्रालय MINISTRY OF RAILWAYS 

रेलवेवोर्ड RAILWAY BOAR

No. 2017/Trans/01/Policy 

New Delhi, dated: 0802201

The General Manager, All Indian Railways/PUs, NF(Con), CORE The DG/RDSO & NAIR, CAOS, DMW/Patiala, WPO/Patna, COFMOW/NDLS, RWP/Bela 

Sub: Process Reforms Works Contracts. Ref: Railway Boards letter no Trans 01/policy dated 17.11.2017 

In order to expedite decision making and execution of works, following changes have been approved by the Board (ME, FC & CRB). 1.0 Handling Vitiation during Variation in Contract Quantities 

In partial modification of existing instructions, it has been decided that as a result of variations, a contract shall be considered vitiatedonly when, the following percentage variation in contract value between tenderers are noticed to have been exceeded

SN | Value of Contract 

Percentage difference between present Contractor and new L1 as a result of variation. (percentage shall be calculated with base as the revised contract quantities multiplied by the rates of the present contractor

1

Small value contracts (Tender Value less than Rs 50 lakh) Other than small value contracts (Tender Value equal to or more than Rs 50 lakh

1.1 When the percentage difference between present Contractor and new L1 is noticed as becoming beyond the values specified above, the following action shall be taken

The Railway administration should immediately examine whether it is practicable to bring in a new agency to carry out the extra quantity of work keeping in view the progress of the work in accordance with the original contract and the nature and layout of the work. If it is found that there will be no serious practical difficulty in meeting the additional quantity of work done by another agency, then fresh tenders for the extra quantity may be invited otherwise negotiating the rate with the existing contractor for arriving at a reasonable rate for the additional quantities of work, may be adopted. 1.2 The above shall be regulated as under

  1. a) The case shall be decided by the tender accepting authority (competent for the revised 

quantity) and shall not be treated as a case of single tender. The provisions of Railway Board letter no 2007/CE.I/CT/18/Pt. XII dated 31.12.2010 hereby gets superseded

  1. b) These instructions will be similarly applicable to earning contracts with H1,H

substituted for L1, L2 and so on. c) Executives while executing the work shall make all efforts to ensure that no vitiatio

takes place in normal circumstances. Vitiation should be an exception rather than

Sanjeeb luwart 

routine affair. Efforts should be made to invite bids on the basis of percentage 

above/below/at par. d) Vitiation should always be computed with respect to the items, rates, quantities and 

conditions as available at the time of Tender Opening and subsequent changes/ additions by way of new items will not be counted for computing Vitiation

2.0 Dispense with Vetting of Brief Notes & size of TC Recommendation 2.1 It has been decided that all system generated statements from IREPS website, post tenderopening are directly seen by the Tender Committee and vetting of the comparative statement and vetting of brief note is not required for Tender Committee proceedings. 2.2 The Tender Committee proceedings are made brief and crisp. 3.0 System of Verification of Tenderers credentials: 3.1 For the works tenders, it has been decided to adopt the affidavitbased system of credential verification. The tenderer shall submit along with the tender document, documents in support of his/their claim to fulfill the eligibility criteria as mentioned in the tender document. Each page of the copy of documents/certificates in support of credentials, submitted by the tenderer, shall be selfattested/digitally signed by the tenderer or authorized representative of the tendering firm, Selfattestation shall include signature, stamp and date (on each page). Only those documents which are declared explicitly by the tenderer as documents supporting the claim of qualifying the laid down eligibility criteria, will be considered for evaluating his/their tender. The system shall be applicable once it is made operational in IREPS. This system is already being followed by some of Railway PSUs. 3.2 In all works tender documents, following para may be added in the section describing the qualification and eligibility criteria

The tenderers shall submit a notarized affidavit on a nonjudicial stamp paper stating that they are not liable to be disqualified and all their statements/documents submitted alongwith bid are true and factual. Standard format of the affidavit to be submitted by the bidder is enclosed as annexureA. Non submission of an affidavit by the bidder shall result in summary rejection of his/their bid. And It shall be mandatorily incumbent upon the tenderer to identify, state and submit the supporting documents duly self attested by which they/he is qualifying the Qualifying Criteria mentioned in the Tender Document. It will not be obligatory on the part of Tender Committee to scrutinize beyond the submitted document of tenderer as far as his qualification for the tender is concerned.” 

With the submission of the affidavit as mentioned above, the practice of verification of tenderers documents by the Railways may be dispensed with. Following clause may also be added to the Instructions to Bidders

  1. a) The Railway reserves the right to verify all statements, information and documents 

submitted by the bidder in his tender offer, and the bidder shall, when so required by the Railway, make available all such information, evidence and documents as may be necessary for such verification. Any such verification or lack of such verification, by the railway shall not relieve the bidder of its obligations or liabilities hereunder nor will it affect any rights of the railway thereunder

  1. b) In case of any wrong information submitted by tenderer, the contract shall be 

terminated, Earnest Money Deposit (EMD), Performance Guarantee (PG) and Security Deposit (SD) of contract forfeited and agency barred for doing business on entire Indian Railways for 5 (five) years

Sampeab llevando 

  1. c) With such a system of selfcertification of credentials, tender finalization should also be 

speeded up. It has accordingly been decided that the tender validity period should be reduced to 45 days for single packet and 60 days for two packet system of tendering in place of the present limits of 90 days and 120 days) for tenders having affidavit based system of credential verification

4.0 Tender Invitation at short notice period 

In continuation of existing instructions, for tenders called with short notice period of 21 days, tender validity period would be 30 days and for tenders called with 14 days notice period, the tender validity would be 20 days only. This would in fact justify the urgency of work. 5.0 Calling tenders pending sanction of detailed estimates 

In cases of urgency, open tenders may be called, before sanction of detailed estimates, with the approval DRM/PHOD/CHODs. However, the letter of acceptance shall be issued only 

after the sanction of detailed estimate. 6.0 Multiple L

In case of more than one L1 bidders, tender may be awarded to tenderer having higher Bid Capacity. In case Bid Capacity is also the same, tenderer having done more value of similar work in last three previous financial years and the current financial year upto the date of opening of the tender, may be selected for the award. Instructions with respect to Bid Capacity will follow

7.0 Discharge of tenders 

Before discharging a tender due to higher rates etc, the TC and TAA may examine the possibility of a cartel formation, getting lower rates as a result of retendering, loss of transparency in reinvited tender, the opportunity cost for delay in the execution of the work and the cost of retendering. Each zonal Railway may workout a model cost estimate for the process of tendering which may be kept in view by the TC and TAA while examining the tender. 8.0 Price variation Clause (PVC

Price variation Clause (PVC) in Works Contract is dealt with in accordance with provisions of item 46A of GCCJuly 2014. In order to simplify and enhance the pace of the works, it has been decided to remove the PVC clause in all works contract tenders having 

value less than Rs 5 Crore. 9.0 Project Management Consultancy (PMC

In partial modification to Railway Boards letter no 2007/CE. 1/CT/18 dated 05.07.2010, and 14.09.2017, it has been decided to extend the scope of PMC services for all works contracts costing more than Rs 10 Crore in open line, Construction and RE organization while ensuring the following

  1. a) Personal approval of DRM/PHOD/CHOD would be required on case to case basis. b) The proposal to engage PMC services for any project/contract shall be governed as per 

instructions contained in Railway Boards letters mentioned above (and amended from time to time). These instructions will also be applicable for all the works approved for 

PMC by DRM/PHOD/CHOD. c) The word Deputy CE or its equivalent mentioned in the instructions above shall mean 

Equivalent Branch Officer of the Division/Railway Electrification (RE). d) The expenditure incurred on PMCs should be within the D&G charges as per extant 

instructions

Sanjees Kerman al 

10.0 Contractors Measurements 

In partial modification to Railway Boards letter no 2016/CEI/CT/14 Measurement/1 dated 21.09.2017, and 2016/CEI/CT/14 Measurement/3 dated 21.09.2017, it has now been decided to extend the scope of Contractors Measurement for all works costing more than Rs 5 Crore in Divisions, Construction and RE organization, subject to following condition

  1. a) Approval of DRM/PHOD/CHOD, without finance concurrence
  2. b) The proposal to have works measurements by Contractors for any project/contract 

shall be governed in accordance with the instructions contained in Railway Boards letters mentioned above (amended from time to time). Such instructions are applicable for all the works approved for Contractors Measurement by DRM/PHOD/CHOD

  1. C) The word Deputy CE or its equivalent mentioned in the instructions above shall mean 

equivalent Branch Officer of the division/RE organization. XEN/AXEN shall mean their equivalent counterparts in Division/RE organization

11.0 Deposit Works 

These works are defined in accordance with para 1843 of IR Code of Engineering Department. The method of execution is also defined therein. The limit of variation by 20% due to reasons other than escalation etc may not be applicable for Deposit Works. Sanction, execution and variations in these works shall be made by the Railway administration in consultation with the sponsoring authority bearing the cost of the deposit works, within the broad guidelines provided in IR Code of Engineering Department and Model SOPOctober 2017. Revised detailed estimate should however be within the powers of the sanctioning authority

12.

This issues with the concurrence of Associate Finance of Transformation Cell Railway Board. Kindly acknowledge the receipt and ensure compliance

(T. K. Pandey) Executive Director, Transformation 

PFAS, All Indian Railways & Production Units The ADAI (Railways), New Delhi The Director of Audit, All Indian Railways 

Sanjeeb Kumar 

(Sanjeeb Kumar) Executive Director (Accounts), Transformation 

Annexure

FORMAT FOR AFFIDAVIT TO BE UPLOADED BY TENDERER ALONGWITH THE TENDER DOCUMENTS 

(To be executed in presence of Public notary on nonjudicial stamp paper of the value of Rs. 100/. The stamp paper has to be in the name of the tenderer)*

..............(Name and designation)** appointed attorney/authorised signatory of the tenderer (including its constituents)

as 

the 

M/

(hereinafter called the tenderer) for the purpose of the Tender documents for the work of 

_ as per the tender of (Railway), do hereby solemnly affirm and state on the behalf of the tenderer including its constituents as under

No

  1. 1

I/we the tenderer (s), am/are signing this document after carefully reading the contents

I/We the tenderer(s) also accept all the conditions of the tender and have signed all the pages in confirmation thereof

I/We hereby declare that I/we have downloaded the tender documents from Indian Railway website www.ireps.gov.in . I/we have verified the content of the document from the website and there is no addition, no deletion or no alteration to the content of the tender document. In case of any discrepancy noticed at any stage i.e. evaluation of tenders, execution of work or final payment of the contract, the master copy available with the railway Administration shall be final and binding upon me/us

  1. 4

1/we declare and certify that I/we have not made any misleading or false representation in the forms, statements and attachments in proof of the qualification requirements

  1. 5

I/We also understand that my/our offer will be evaluated based on the documents/credentials submitted alongwith the offer and same shall be binding upon me/us

I/We declare that the information and documents submitted along with the tender by me/us are correct and I/we are fully responsible for the correctness of the information and documents, submitted by us

Sangeel Numar 

I/we undersigned that if the certificates regarding eligibility criteria submitted by us are found to be forged/false or incorrect at any time during process for evaluation of tenders, it shall lead to forfeiture of the tender EMD besides banning of business for five year on entire IR. Further, I/we (insert name of the tenderer)*

__and all my/our constituents understand that my/our offer shall be summarily rejected

I/We also understand that if the certificates submitted by us are found to be false/forged or incorrect at any time after the award of the contract, it will lead to termination of the contract, alongwith forfeiture of EMD/SD and Performance guarantee besides any other action provided in the contract including banning of business for five year on entire IR

DEPONENT SEAL AND SIGNATURE 

OF THE TENDERER 

VERIFICATION 

I/We above named tenderer do hereby solemnly affirm and verify that the contents of my/our above affidavit are true and correct. Nothing has been concealed and no part of it is false

DEPONENT 

SEAL AND SIGNATURE 

OF THE TENDERER 

Place: Dated

**The contents in Italics are only for guidance purpose. Details as appropriate, are to be filled in suitably by tenderer. Attestation before Magistrate/Notary Public