APPENDIX XIX-A

(See Paragraph 307)

NOTE—These rules should be read with the instructions laid down in Appendix XIX.

Extracts from Public Works Account Rules, Financial Handbook Volume VI

M—WORKS EXECUTED ON LUMP SUM CONTRACT

405. In a lump sum contract, the contractor agrees to execute a complete work with all its contingencies in accordance with the drawings and specification for a fixed sum, the following being the essential characteristics :

(i) A schedule of rates is specified in order to regulate the amount to be added to or deducted from the fixed sum on account of additions and alterations not covered by the contract.

(ii) Except as provided in clause (i), no allusion is made in the contract to the departmental estimate of the work, schedule of rates or quantities of works to be done.

(iii) Detailed measurements of the work done are not required to be recorded except in respect of additions and alterations.

NOTE—In the hill districts of the Kumaun and Garhwal Divisions the system of auctioning contracts of the work of slip clearance may be adopted subject to the conditions (1) that the auction will be held by the district or assistant engineer and (2) that it will be one of the conditions of the contract that no concession in rates, etc., will be allowed after a contract has been given out at the bid of the contractor.

406. Before a work is given out on contract on a lump sum basis the procedure prescribed for ordinary works for inviting tenders and entering into agreement with the contractor, vide paragraphs 360 to 367 (reproduced below as Annexure A), should mutatis mutandis be followed. Otherwise also the rules regulating ordinary works apply so long as they are not inconsistant with any special rules relating to lump sum contracts.

NOTES—(1) In Drawing up a contract document, the essential conditions mentioned in paragraph 405 must be observed closely.

(2) The form of contract is prescribed by the Government in consultation with their law officers. The special account rules for such works contained in section H of Chapter XIV (reproduced in paragraph 311 of Chapter XIII of Volume V of the Handbook), are based on the assumption that the essential conditions will be observed in drawing up contracts; it is therefore desirable that before a form is finally determined, the advice of the Accountant General should be sought on the question whether the proposed form meets the requirements of audit.

(3) Security deposits should be kept for not less than six months after the work is completed or for any longer period mentioned in the contract during this period the divisional officer should adjust any expenditure to which the contractor may become liable under the conditions of his contract.

ANNEXURE A

(See also Appendix XIX)

Extracts from Public Works Account Rules, Financial Handbook, Volume VI

III—Tenders

360. Tenders which should always be sealed, should invariably be invited in the most open and public manner possible, whether by advertisement in the Government Gazette or local newspapers, or by notice in English and Hindi posted in public places, and tenderers should have free access to the contract documents. The notice should in all cases state—

1—The place where and the time when the contract document can be seen, and the blank forms of tender obtained, also the amount, if any, to be paid for such forms of tender.

2—The place where, the date on which and the time when tenders are to be submitted and are to be opened (in the case of large contracts this should be at least one month after the date of first advertisement or notice).

3—The amount of earnest money to be deposited and the amount and nature of the security deposit required in the case of the accepted tender.

4—With whom or what authority and acceptance of the tender will rest.

Authority should always be reserved to reject any or all of the tenders so received without the assignment of a reason, and this should be expressly stated in the advertisement.

[See also rule 11, Appendix XIX]

361. ***No tender should be accepted from any person directly or indirectly connected with the service of the Government.

362. As a rule no tender for the execution of works of any description should be entertained unless accompanied by earnest money paid to the extent which has been notified as necessary by the divisional or other officer. But in the case of works costing less than Rs. 10,000, the divisional or other officer may, at his discretion, demand earnest money only from the contractor whose tender has been accepted.

[See rule 17, Appendix XIX]

Tenders for road metal collections costing less than Rs. 5,000 may be accepted without earnest money at the discretion or the divisional officer.

363. The amount of earnest money to be deposited should be sufficiently large to be a security against loss, in case of the contractor failing to furnish the required security within the appointed time after the acceptance of his tender, or until the sums due to him form a sufficient guarantee, as the case may be.

364. Usually the lowest tender should be accepted, unless there be some objection to the capability of the contractor, the security offered by him, or his execution of former work. At the same time the acceptance or rejection of tenders is left entirely to the discretion of the officer to whom the duty is entrusted, and no explanation can be demanded of the cause of the rejection of his offer by any person making a tender. In cases where the lowest tender is not accepted, reasons should, however, be recorded confidentially. In selecting the tender to be accepted the financial status of the individuals and firms tendering should be taken into consideration in addition to all other relevant factors.

IV—Security for performance of contracts

365. Security for the due fulfillment of the contract should invariably be taken. This security may take the form of a cash deposit, a deposit of interest bearing securities, a deduction of 10 per cent from the payments to be made on account of work done, or a personal bond of two persons of known probity and wealth.

NOTES—(1) When earnest money tendered under paragraph 363 is converted into security deposit, it should be taken into account for the purpose of the deduction made under this rule, e.g., when 10 per cent of the first monthly payment is less than the amount of earnest money no deduction will be made from the bill (the deduction will commence from the subsequent payment) but when it is more, only the difference between it and the earnest money will be deducted from the bill towards the security deposit.

(2) Fixed receipts of the State Bank of India, should, if offered be accepted as security from contractors who are required to furnish security to ensure proper execution of Government work that may be entrusted to them subject to the conditions laid down in paragraph 614 (e) (See also note 2 under paragraph 7 of the volume V of the Handbook).

V—Provision in contract for imported stores

366. In framing contracts of any description it should be laid down that the supply of imported materials, if required to any considerable extent, shall be arranged for the Government. Such stores should either be supplied from the existing Government stock or be obtained in accordance with the Stores Purchase Rules. In the case of important construction works let out on contract, such stores may be supplied by the contractor subject to the conditions given in the Stores Purchase Rules, (See Appendix XVIII, Volume V of the Handbook).

VI—Enforcement of terms of contract

367. Engineers and their subordinates are responsible that the terms of contracts are strictly enforced and that no act is done rendering to nullify or vitiate a contract. All contract deeds must be executed on one or other of the standard forms, but they may be modified to suit local requirements after consultation with the legal advisers of the Government. All agreements or security bonds entered into with the department by contractors for the execution of work or for securing the due performance of contract are exempt from stamp duty.