CHAPTER X

CONTRACTS AND MEASUREMENT FOR WORKS

SECTION  'A'

General 

10.1. Code references for contracts.—The procedure and rules for the calling for tenders and entering into contracts for execution of works and supply of materials are contained in Chapter XII of the Indian Railway Code for the Engineering Department and Chapters III, IV and VII of the Indian Railway Code for the Stores Department.

10.2. Lists of approved contractors and Registration of applications :—

10.2.1. Lists of approved contractors shall be maintained in the offices of the Divisional Signal and Telecommunication Engineers for their Divisions and the Chief Signal and Telecommunication Engineer for the whole Railway. As per Para, 1216E. these lists shall be deemed to be confidential records and examined and revised periodically. They shall be maintained in manuscript form under the following categories of work:—

A. For works to be executed under Open line conditions affecting safety of running trains.—

(i) Provision of Mechanical Signalling.

(ii) Provision of Electrical Signalling,

(iii) Provision of Relay Interlocking, C. T. C. etc.

(iv) Laying of cables.

(v) Erection of overhead alignment by the side of the track,

(vi) Any other signalling work.

B. For works to be executed under Open Line conditions not involving safety of running train or on new lines or in areas away from track opened for traffic.—

(i) Provision of Mechanical Signalling,

(ii) Provision of Electrical Signalling,

(iii) Provision of Relay Interlocking, C. T. C, etc., (iv) Laying of Cables.

(v) Erection of overhead alignment by the side of track,

(vi) Any other signalling work,

(vii) Supply of sand, bricks, etc.

10.2.2. The Chief Signal and Telecommunication Engineer shall authorise the inclusion in the lists of approved contractors the names of applicants considered capable of executing works under one or more of the catagories in para 10.2.1 above. On receipt of an application from a contractor desirous of having his name included in the lists of approved contractors, the Divisional Signal and Telecommunication Engineer shall satisfy himself on the following points (as per para 1215-E.) and forward the application with his remarks to the Chief Signal and Telecommunication Engineer:—

(i) His position as an independent contractor.

(ii) His capacity to undertake and carry out works satisfactorily, as vouched for by a responsible-official or (firm).

(iii) His previous experience on works similar to that to be contracted for, in proof of which original certificates or testimonials may be called for and their genuineness verified, if need be, by reference to the signatories thereof.

(iv) His knowledge from actual personal investigation of the resources of the division in which he offers to work.

(v) His ability to supervise the work personally or by competent and duly authorised agents. It shall be ensured that each application for registration is accompanied by—

(i) A certificate showing the financial standing of the applicant,

(ii) An authorised copy of the Income-tax Clearance certificate,

(iii) Original certificates (or authorised copies thereof) regarding past experience of works.

10.3. Basis for inviting tenders and entering into contracts:

10.3.1. The documents which form a contract are as follows:—

(i) Instructions to parties tendering.

(ii) Tender form, if any.

(iii) Specifications—Standard and special,

(iv) Schedule of items and quantities, rates, etc.

(v) Conditions of contract—Standard and Special,

(vi) Agreement Form.

Items (i) to (vi) above shall be comprehensive and explicit so that there is the least possibility of conflicting, even differing, interpretations being placed on the intentions of the contract.

10.3.2. Each Divisional Signal and Telecommunication Engineer shall be in possession of copies of items (i) to (vi) vide para 10.3.1. and acquaint himself with the provisions contained therein. Signal Inspectors may be supplied with copies of these where necessary.

10.3.3. Copies of items (i) to (vi) vide paras 10.3.1. shall be available in the Office of the Chief Signal and Telecommunication Engineer and the Divisional Signal and Telecommunication Engineer for sale to contractors who shall be advised to make themselves conversant with the provisions contained in items (i) to (vi) before tendering for works or supply of materials.

10.3.4. Amendments when considered necessary to any para, clause or items of the regulations for tenders and contract, the general conditions of contract, the specifications for materials and works and the schedule of rates shall be authorised solely by the Chief Signal and Telecommunication Engineer and intimated to the Executive Officers and Inspectors who shall acknowledge receipt of the same.

SECTION ' B" 

Tenders

10.4. Calling for tenders.—Tenders may be invited for any of the works listed in para 10.2 required to be carried out under contract. When calling for tenders for works, the provisions contained in para 121IE. shall be observed. Tenders may be invited by the Divisional Signal and Telecommunication Engineer, Deputy Chief Signal and Telecommunication Engineer/Construction, Divisional Railway Manager or the Chief Signal and Telecommunication Engineer depending on the contract value or works (s) according to the procedure that may be prescribed by the Administration for the purpose. The common methods of obtaining tenders are by advertisement (Open Tenders), by direct invitation to a limited number of contractors (Limited Tender) and in exceptional cases by invitation to one contractor (Single Tender).

10.5. Tender Notices:

10.5.1. Notice for inviting tenders shall be to the Form prescribed by the Administration and shall embody the stipulations contained in para 1239-E.

10.5.2. When limited tenders are invited, tender notices shall be issued to Contractors on the list of approved contractors and displayed on the notice boards of the offices of the Divisional Signal and Telecommunication Engineer and important stations on the Division concerned.

10.5.3. When open tenders are invited, Tender Notices shall be displayed on the Notice Boards of the offices of the Divisional Railway Manager, Deputy Chief Signal and Telecommunication Engineer, Divisional Signal and Telecommunication Engineer, Signal Inspectors and important stations on the region concerned. In addition, if so prescribed by the Administration, tender notices shall be published in the newspapers on the approved list of the Government of India, it being left to the authority inviting enders to select the newspapers and the number of insertions for this purpose.

10 6. Tender Forms.— Tender forms shall embody the contents of the contract document either directly or by reference. Tender forms shall be issued on payment of the prescribed fees to the appropriate contractors on the list of approved contractors. Contractors not on the approved list of approved contractors will, on payment of the prescribed fees, be furnished with tender forms and shall be required to submit evidence regarding their financial status, previous experience and ability to execute the works and an authorised copy of the Income Tax Clearance Certificate without which their tenders shall not be considered.

10.7. Drawings and Specifications.

10.7.1. Unless otherwise agreed to specifically, the execution of works and supply of materials on contract shall be according to the Railway's Drawings and the Specifications.

10.7 .2. If no specification exists for any item of work or supply, a complete specification of the item and of the materials to be used shall be prepared and embodied in the contract documents or made available for reference by intending tenderers.

10.8. Earnest Money and Security Deposit.

10.8.1. The tenderer shall be required to deposit with the tender, earnest money at the rates prescribed by the Administration as initial security. In case of acceptance of the tender, the earnest money will be retained by the Railway as a part of the security for the due and faithful fulfilment of the contract 'and the balance to make up the security deposit at the rates stipulated by the Administration shell unless otherwise specified in the special condition if any, be deposited by the contractor in cash or in the form of Government Securities or will be recovered by percentage deductions from the Contractor "on account" bills. A guarantee from a Scheduled Commercial Bank in India may also be accepted as Security Deposit. The Government Security may be of the required monetary value in the form of approved Banker's bonds. Government security certificates, deposit receipts of scheduled Banks or Post Office Savings Bank pass books, duly pledged or hypothecated to the Accounts Officer of the Railway.

10 8.2. No cheque shall be accepted from a Contractor or firm as earnest money with a tender unless it is guaranteed by the Bank concerned.

10 8. 3. The earnest money of all unsuccessful tenderers shall be refunded as expeditiously as possible.

10.9. Tender committees.—The Administration will specify—

(i) The constitution and functions of Tender Committees for the purpose of opening of tenders and submitting recommendations to the competent authority. The convenor of a Tender committee meeting shall be the Chief Signal and Telecommunication Engineer, the Divisional Railway Manager, the Deputy Chief Signal and Telecommunication Engineer (Construction), Divisional Signal and Telecommunication Engineer as the case may be ; Wherever practicable, an Officer of the Accounts Department shall be deputed on the Tender Committee.

(ii) The powers that shall be exercised by the Chief Signal and Telecommunication Engineer, Divisional Railway Manager and Divisional Signal and Telecommunication Engineer respectively in the matters of acceptance of tenders and entering into contracts, and the signing of contract documents.

(iii) The conditions in regarding to acceptance of single tenders.

Note.—(i) When a single tender is received in response to a call for limited or open tenders, the urgency of the work may be the criterion for its acceptance, provided the tendered rates are considered reasonable.

(ii) If the rates in a single tender are considered inordinately high, negotiations may be carried out by the Tender Committee with the tenderer in the interest of work.

10.10. Opening of Tenders.—At the advertised time and place tenders received for a contract shall be opened by the Tender Committee and, where practicable, the names of tenderers and the rates tendered by them read out in the presence of such of the intending contractors or their agents as may attend. Each page and correction or stipulation (if any) of every tender shall be initialled with date by members of the Tender Committee.

10.11. Acceptance of Tenders.

10.11.1.—Tenders opened and duly initialled at the Tender Committee Meeting shall be valued in the office of the Chief Signal and Telecommunication Engineer, Divisional Railway Manager, Deputy Chief Signal and Telecommunication Engineer as the Divisional Signal and Telecommunication Engineer as the case may be, the stipulations made, if any, being duly assessed and a comparative statement prepared. The comparative statement together with a note shall be sent to the Accounts Department for vetting. Based on the vetted comparative statement, the tenders will be adjudged by the Tender Committee and recommendations made to the authority empowered to accept the tender.

10.11.2. Ordinarily the lowest tender may be accepted by the Railway unless such acceptances would not be in the public interest. The acceptance or rejection of any tender is left entirely to the discretion of the authority empowered to deal with the matter and no explanation can be demanded by any tenderer as to the cause of rejection of his tender.

10.12. Entering into Contracts.—No contract shall be entered into unless authority exists for commencement of the work. No authority shall enter into a contract beyond its own powers of sanction.

10.13. Execution of contract documents.

10.13.1. The tenderer whose tender is accepted shall be required to appear at the office of the General Manager, Chief Signal and Telecommunication Engineer, Divisional Railway Manager or Divisional Signal and Telecommunication Engineer as the case may be, in person or if a firm or corporation, a duly authorised representative shall so appear, and execute the contract within seven days after notice that the contract has been a warded to him. Failure to do so shall constitute a breach of the agreement effected by the acceptance of the tender in which case the earnest money accompanying the tender may be forfeited.

10.13.2. In the event of any tenderer, whose tender is accepted, refusing to execute the contract documents the authority may determine that such Tenderer has abandoned the contract and thereupon his tender and the acceptance thereof shall be null and void and the earnest money accompanying the tender shall be forfeited.

10.14. Form of Contract Documents.

10.14.1. Every contract shall be complete in respect of the documents it constitutes.

10.14.2. The contract agreement required to be executed by the successful tenderer shall be in the form prescribed by the Administration for the purpose. The draft of the contract agreement shall be vetted by the Accounts Department.

10.15. Copies of Contract documents.

10.15.1. Sufficient number of copies of the contract documents shall be available for use in the offices of the Divisional Signal and Telecommunication Engineer and the Signal Inspector. If materials are to be inspected by an agency other than the consignee, a copy of the contract documents shall be supplied to the inspecting agency also. No deviations in the contract documents shall be permitted with out the sanction of the competent authority.

10.15 .2. The executive Officers and Inspectors shall thoroughly study the contract documents for works to be carried out and shall adhere to the provisions contained therein.

10.16. Items of works not included in contract documents.

10.16.1. The Assistant Signal and Telecommunication Engineer and the Inspector in charge of the work shall ensure that no item of work that is not included in the contract is carried out without the sanction of the competent authority.

10.16 .2. Items of work not included in a contract may, if deemed expedient, be executed under the contract at the rates mutually agreed on by the contracting parties.

10.17. Modifications to contract.—In the event of any of the provisions of the contract requiring to be modified after the contract documents have been signed, the modifications shall be made in writing and signed by the Railway and the contractor and no work shall proceed under such modifications until this has been done. Any verbal or written arrangement abandoning modifying, extending, reducing or supplementing the contract or any of the terms thereof shall be deemed conditional and shall not be binding on the Railway unless and until the same is incorporated in a formal instrument signed by the Railway and the contractor, and till then the Railway shall have the right to repudiate such arrangement.

10.18. Issue of Departmental materials to contractors.—When so specified in the contract, cables and other signalling materials shall be issued to contractor and receipts obtained for the same, It shall be ensured that the Contractors takes reasonable care of all materials made over to him and that on completion of the works the unused balance of the same are handed over by him in good order.

SECTION' C ' 

MEASUREMENTS AND MEASUREMENT BOOKS

10.19. Code References.—The rules regarding the recording of measurements in measurement books, care and custody of measurement books and the preparation of contract bills are embodied in Para 1313 E.

10.20. Measurement Books.

10.20.1. Each measurement book shall  have .— 

(i) instructions printed at the commencement, 

(ii) An Index which should be posted up-to-date.

A form of measurement book is attached as Annexure ' 43'.

10.20.2. Measurement books shall be issued to the Assistant Signal and Telecommunication Engineer by the Divisional Signal and Telecommunication Engineer as required duly numbered thus M. B. No................of 19 . As few books shall be issued as can conveniently meet the requirements.

10.20.3. A register of measurement books shall be maintained by the Divisional Signal and Telecommunication Engineer wherein the contents and the movement of each measurement book shall be indicated.

10.20-4. Measurement books shall be sent from one Office to another in the personal custody of a responsible person.

10.20.5. Completed measurement books and those not in use although not completely written up, shall if they are no longer required, be sent to the Divisional Signal and Telecommunication Engineer to be filed in his Office.

10.20.6 If a measurement book is lost, immediately the loss is discovered, the matter shall be reported to the Divisional Signal and Telecommunication Engineer, who will obtain sanction to write off the book from the registers of Measurement Books.

10.21 Recording Measurements.

10-21.1. Every entry in a measurement book shall be commenced with a Statement as to how it is to be billed. The instructions for recording measurements contained in Annexure ' 43' shall be followed.

10.20.2. The pages of every measurement book shall be machine numbered; no page on any account shall be torn out, nor shall any entry be erased or defaced so as to be illegible.

10.21.3. Entries shall be recorded continuously in the measurement book. No blank pages shall be left. Any page left blank inadvertently shall be cancelled by diagonal lines drawn across the pages, the cancellation being attested.

10.21.4. When any measurements are cancelled, the cancellation shall be supported by the initials with date of the Officer ordering the cancellation or by the Official who made the measurements. The reasons for cancellation shall be recorded.

10.21.5. Should it be found necessary to make any additions to measurements already taken owing to omission at the time of the measurements, such additions shall be detailed in a subsequent page of the book, giving reference to the page containing the original measurements and explaining the reasons for the same.

10.21.6. Entries of the measurements shall be made direct into the measurement book at the site of the work in the presence of the contractor or his agent. The copying of entries from a rough note book or other record is forbidden.

10.21.7. The Contractor or his authorised agent shall be present at the time of all on account and 'final' measurements and should sign the measurements recorded in the measurement book as acknowledgement of his acceptance of the accuracy of the measurements and the classification of materials. The contractor shall be given due notice of the time and date on which the measurements are to be taken. Failing his attendance, the work may be measured up in his absence and such measurements shall notwithstanding such absence, be binding upon him whether or not be shall have signed the measurement book provided hat any objection to any measurement that is made by him in writing within seven days of the date of such measurements shall be duly investigated and considered.

10.21.8 After the contractor's dated signature has been obtained, the official recording the measurements shall attest his full signature and designation at the end of the measurements.

10.22 ' On Account' Measurements.

10.22.1 For measurements against which on account bills are prepared and which arc subject to adjustment in final bills, the official in charge may use percentage measurements for the part the work completed.

10.22.2 Quantities for payment' on account' shall never exceed the estimated quantities of actual work done upto the time of payment. In order to ensure this, the following certificate shall be recorded by the official in charge in the measurement book for all' on account' measurements.

" I hereby certify that not less than the quantity of work paid for has actually been done and that the measurements are from plans/approximately estimated ".

10.23 Responsibility of the Assistant Signal and Telecommunication Engineer for measurements of works.

The Assistant Signal and Telecommunication Engineer shall be responsible for the correctness of the measurements for all works in his charge. He shall ensure that the measurements are made in the specified manner and shall cither record them himself or have them recorded by the Inspector in charge of the work.

10.24. Computation of quantities.

After measurements for a work are recorded, the quantities shall be computed and entered in the ' contents' column of the measurement book. This may be done by the official recording the measurements himself or in the office.

10.25. Preparation of abstracts in Measurements Books.

10-25.1. After the quantities are computed, an abstract shall be prepared in the measurement book in the Divisional Signal and Telecommunication Engineer's Office. The abstract shall be headed thus

"Abstract of pages............to............"

The abstract shall show the correct description of the item, total quantity done up-to-date, rate and the total value for each item measured/checked, in connection with the work. The total of the values of all the items will be the total value of the work done up-to-date.

10.25.2. In the case of a first and final bill this amount will not be subject to any deduction and will be paid in full to the contractor.

In the case of an 'on account' bill, the prescribed percentage of the value of the work done since the last certificate shall be deducted as security deposit towards the due fulfilment of the contract. The balance will be the amount payable to the Contractor and this amount must be written clearly in words as well as in figures.

10.25.3. On satisfactory completion of the work the security deposit will be refunded to the contractor after the final payment for the work is made. Part of the security deposit may be kept with the Railway in specified cases whenever it is necessary to witch the results of the work and to ensure that there will be no failure of the work for the period stipulated in the contract.

10 25.4. The abstract shall be signed and dated by the Assistant Signal and Telecommunication Engineer.

10.25.5. Each paragraph of the measurement book to which the abstract pertains shall be crossed in Red Ink diagonally thus.

See Abstract pages...........................

10.25 6. At the foot of each abstract the relevant bill number and date of preparation of the bill shall be entered.

10.26. Submission of bills.

After the abstract is prepared in the measurement book, the bill shall be prepared in the Divisional Signal and Telecommunication Engineer's Office on the prescribed form.

10.27 Checking of bills in Divisional Signal and Telecommunication Engineer's Office.

10.27.1. The quantities in measurement books submitted by the Assistant Signal and Telecommunication Engineer shall be checked for arithmetical accuracy in the Divisional Signal and Telecommunication Engineer's Office where it will be verified that-

(i) the description of items is according to the contract schedule.

(ii) there are no delays in recording measurements,

(iii) the quantities executed are according to sanctioned plans and estimates,

(iv) where measurements are not recorded, correct reference to the standard measurements is clearly given, and

(v) the quantities recorded in the bill agree with those shown in the measurement book and rates higher than those sanctioned are not allowed.

10.27.2. An endorsement shall be made at the end of Assistant Signal and Telecommunication Engineer's abstract in the measurement book under the signature of Divisional Signal and Telecommunication Engineer giving reference to the particulars of the bill passed.

10 27.3. The Railway Administration may lay down a time schedule for preparation and checking of bills.

10.28. Bill Registers.—The Divisional Signal and Telecommunication Engineer's Office shall maintain Bill Registers in which all bills prepared in their office shall be recorded. The Register shall be kept up-to-date and complete information with reference to agreements, work orders, abstracts in measurement books and amounts.

10.29. Disputes with Contractors.

10.29.1. On the completion of every work, 'No claims certificate' shall be obtained from the Contractor according to the relevant clause or clauses in the condition of contract. Every month or when ' on account' bills are made out, the contractor shall be instructed to submit a list of outstanding claims, if any.

10.29.2. If there is any likelihood of a dispute with a contractor, all documents, measurements and letters bearing on the case shall be at once collected and stored in safe custody with the officer responsible for the case. In all such cases care shall be taken to commence all correspondence with the contractor with head line 'without prejudice'. The contractor shall be instructed to submit complete details of his claims in writing with a certificate to the effect that these are final.

10.29.3. Inspite of all reasonable efforts to effect agreement, if the contractor refuses to sign the final contract certificate, the final contract certificate shall be forwarded to the Accounts Officer to tender payment. The contractor may accept payment if he wishes under protest.

10.29.4. Disputes arising out of the contract for a work, between the contractor on the one hand and the Railway Administration on the other, shall be referred for arbitration in accordance with the relevant clause in the General Conditions of Contract.