A Presentation on
GENERAL OVERVIEW OF CONTRACTS
MANAGEMENT
&&
Contract ClosingContract ClosingContract ClosingContract Clo...
FIVE WATCH WORDS OF PROCUREMENT
CONTRACT MANAGEMENTCONTRACT MANAGEMENT
–– An OverviewAn Overview
2
Transparency
Value for
...
The main objectives of Procurement is traditional
“five Rights’
that is procurement of
"stores of Right quality from Right...
Corporate
Contract
Procurement System & Procedures
Contracts Management Functions
May be divided into
Contract
Consultancy...
Corporate Contracts :
Major Plant & Machinery
involving
All New Projects
Expansion Projects
Contracts Management Functions...
Phase 1 Phase 2 Phase 3
PROCUREMENT SYSTEMS AND PROCEDURESPROCUREMENT SYSTEMS AND PROCEDURES
Contract Management System
6
...
CMD
ED
(CC&M)
ED
(Regions)
Organizational Setup
Procurement System & Procedures
(CC&M)
GM (CM) GM(CS)
(Regions)
GM
(Projec...
Contract Management System
PRE-AWARD CONTRACT MANAGEMENT
In the Pre-Award Contract Management System, the various activiti...
Types of Contracts being handled …
• Supply-cum-Installation Contracts (Turnkey Contracts)
Contract Management System
Type...
Procurement System
Contract Management System
Three Tier Procurement SystemThree Tier Procurement SystemThree Tier Procure...
Three tier Procurement SystemThree tier Procurement System
Procurement at Corporate Level
• Procurement of high value, lar...
Procurement PhilosophyProcurement Philosophy
A1. QUALIFICATION PROCESS
Qualification process to be adopted in selection of...
Procurement PhilosophyProcurement Philosophy
A2. BIDDING PROCEDURE
Single Stage
• Single Stage , Single Envelope
Ideal for...
Phase 1 Phase 2 Phase 3
PROCUREMENT SYSTEMS AND PROCEDURESPROCUREMENT SYSTEMS AND PROCEDURES
Contract Management System
14...
Contract awarded after satisfactory resolution of all points with the
bidder in the form of Notification of Award/Letter o...
CONTRACT AGREEMENT
• Contract Agreement is signed within 60 days of placement of
LOA / NOA.
• Initial advance if provided ...
CONTRACT AGREEMENT.Contains following
documents
–Bid Documents
–Bidder’s Offer
Procurement Process
Award of Contract
Procu...
Phase 1 Phase 2 Phase 3
PROCUREMENT SYSTEMS AND PROCEDURESPROCUREMENT SYSTEMS AND PROCEDURES
Contract Management System
18...
MAJOR POST –AWARD ACTIVITIES
Signing of contract agreement
Obtaining performance and advance securities
POSTPOST –– AWARDA...
Inspection and testing of equipment at manufacturer’s works
Entire co-ordination of work at project site including
monitor...
Closing of the Contract is effected only after :
PG test is successfully completed
Last stage payments are released
Final ...
Receipt of L-2 Network approved by CMG/CR
Post Award Expediting
Progress Reporting
by Contractor
Contract Review
Meeting
P...
Contract
Presentation by
S.K.Pandita
09650996263
Contract
Closing
CONTRACT CLOSING
After completion of the Contract and fulfilment of all
contractual obligations by the Company as well as ...
All concerned departments/ functions of project authority
involved in contract execution to issue certificates
certifying ...
• Contract Closing basically symbolizes that on closure of a contract, the
liabilities of either parties stand settled i.e...
Contracts Management Functions
Contract Closing
Contracts with Foreign parties
and Multilateral Agencies
closed by Corpora...
CORPORATECONTRACTS - P&S GROUP
Circular no 594
Date: 16.01.2006
System for Contract Closing for
Packages awarded byPackage...
This circular provides the guidelines
for closing of the various types of
contracts
awarded by
Corporate Contract Services...
In case of
Supply-cum-Erection Contracts,
the closing of the contract shall be
affected after the
warranty period is succe...
The responsibility for closing of various types of
contracts awarded by Corporate Contract
Services shall be as follows:
B...
The coordinators for Contract Closing activities
shall be as follows:
HOD of concerned group …….for Corporate Contract.
• ...
The coordinators for forwarding CCP’s
shall be as follows:
Contracts Closed by Regional Head Quarters &
Projects / Station...
The coordinators for forwarding CCP’s
shall be as follows:
Contracts Closed by Corporate Contracts
Regional Head Quarters
...
for Contract closing of all Contracts
awarded by Corporate Contract Services.
for setting up of
Greenfield/ Expansion proj...
CCP-01 Final ammendment to contract ⃝ Yes ⃝ No ⃝ n/a
CCP-02 Drawing reciept ⃝ Yes ⃝ No ⃝ n/a
CCP-03 Quality documents reci...
CCP-01
Certificate of Final Amendment to the Contract
Corporate Contract Services
7 Months from Sysnchronization
CCP-02
Dr...
CCP-06 Liquidated Damages for Delay Certificate
CCP-06(a)
For cases where LD for delay is settled by Corporate Contracts
C...
CCP-09
“Material Reconciliation” Certificate Indian Contractor
Site Finance
6 Months from
Synchronization
CCP-09A
Reconcil...
CCP-10
Certificate regarding Labour Payments and Statutory Requirements to be
furnished by Contractor.
Contractor
6 Months...
for Contract Closing of all
Consultancy Contracts
Seven ( 7) certificates,Seven ( 7) certificates,
CCC – 01 to CCC- 07
as ...
In case of Consultancy Contracts following seven (7)
certificates listed below as per Performa
shall be applicable
CERTIFI...
SIGNING OF CERTIFICATES … CCP’s
All the Contract Closing Certificates shall be signed by
the Heads of the relevant departm...
SIGNING OF CERTIFICATES … CCP’s
All the Contract Closing Certificates shall be signed by
the Heads of the relevant departm...
Ensure completion of Trial
operation / Commissioning
Receive acceptance of
amdt. from contractor
Issuance of amdt. Based
C...
Obtain balance Contract
Closing Certificate from
relevant dept. & Contractor
Initiate note for Enclose all CCPs &
Contract...
Annesure-I.1 CERTIFICATE NO. CCP – 01
PROFORMA OF CERTIFICATE OF FINAL AMENDMENT TO THE CONTRACT
[TO BE ISSUED BY CORPORAT...
Annexure-I.2 CERTIFICATE NO. CCP – 02
PROFORMA FOR DRAWING RECEIPT CERTIFICATE
[TO BE ISSUED BY ENGINEERING]
NAME OF PACKA...
Annexure-I.3 CERTIFICATE NO. CCP – 03
PROFORMA FOR QA DOCUMENTS RECEIPT CERTIFICATE
[ TO BE ISSUED BY CQA & I ]
NAME OF PA...
Annexure-I.4 CERTIFICATE NO. CCP – 04
PROFORMA FOR O&M MANUAL RECEIPT CERTIFICATE
[ TO BE ISSUED BY ENGINEERING ]
NAME OF ...
Annexure-I.5 CERTIFICATE NO. CCP – 05
PROFORMA FOR SCOPE COMPLETION CERTIFICATE
[ TO BE ISSUED BY SITE ERECTION ]
NAME OF ...
Annexure-I.6 CERTIFICATE NO. CCP – 06
PROFORMA FOR LIQUIDATED DAMAGES FOR DELAY CERTIFICATE
[ TO BE ISSUED BY SITE ERECTIO...
S. No Guaranteed Parameter Guaranteed Assessed Value Shortfall, if Liquidated damages
Annexure-I.7 CERTIFICATE NO. CCP – 0...
Annexure-I.8 CERTIFICATE NO. CCP – 08
PROFORMA OF “MATERIAL RECONCILATION” CERTIFICATE
TO BE ISSUED BY SITE ERECTION AND C...
Annexure-I.9 1/2 CERTIFICATE NO. CCP – 09
PROFORMA OF “PAYMENT RECONCILIATION” CERTIFICATE
[ TO BE ISSUED BY SITE ACCOUNTS...
Annexure-I.9 2/2 CERTIFICATE NO. CCP – 09
4. All recoveries / claims on account of variations/deviations to scope of contr...
Annexure-I.9A ( ½) CERTIFICATE NO. CCP – 09A
PROFORMA OF RECONCILIATION CERTIFICATE PAYMENT FOR PAYMENTS BY SITE
[ TO BE I...
Annexure-I.9A ( 2/2 ) CERTIFICATE NO. CCP – 09A
Enclosure to CCP – 09A
The list of recoveries and claims as advised by Sit...
Annexure-I.9B ( 1 of 2) CERTIFICATE NO. CCP – 09B
PROFORMA OF RECONCILIATION CERTIFICATE
FOR PAYMENTS BY CORPORATE FINANCE...
Annexure-I.9B ( 1 of 2) CERTIFICATE NO. CCP – 09B
Enclosure to CCP – 09B
The list of recoveries and claims as advised by S...
Annexure-I.9C CERTIFICATE NO. CCP – 09C
PROFORMA OF “CUSTOMS RECONCILIATION” CERTIFICATE
[ TO BE ISSUED BY ACCOUNTS DEPTT....
Annexure-I.10 CERTIFICATE NO. CCP – 10
PROFORMA OF CERTIFICATE REGARDING LABOUR PAYMENTS AND
STATUTORY REQUIREMENTS TO BE ...
Annexure-I.11 CERTIFICATE NO. CCP – 11
PROFORMA OF “NO DEMAND CERTIFICATE” BY CONTRACTOR
[ TO BE ISSUED BY THE CONTRACTORS...
Annexure-I.12 CERTIFICATE NO. CCP – 12
PROFORMA OF CERTIFICATE FOR COMPLETION OF WARRANTY PERIOD
[ TO BE ISSUED BY SITE ER...
Annexure-I.13 CERTIFICATE NO. CCP – 13
PROFORMA OF “CERTIFICATE FOR RETURN OF BGs / INDEMNITY BONDS ETC.”
[ TO BE ISSUED B...
Ensure completion of Trial
operation / Commissioning
Receive acceptance of
amdt. from contractor
Issuance of amdt. Based
C...
CERTIFICATE NO. CERTIFICATE DESCRIPTION RESPONSIBILITY
CCC-01 Certificate of Final Amendment to the
Contract
Corporate Con...
Amendment No. Date
Annexure-II.1… CERTIFICATE NO. CCC – 1
PROFORMA OF CERTIFICATE OF FINAL AMENDMENT OF THE CONTRACT
[ TO ...
Annexure-II.2 CERTIFICATE NO. CCC – 02
PROFORMA FOR DRAWING RECEIPT CERTIFICATE
[TO BE ISSUED BY ENGINEERING]
NAME OF PACK...
Annexure-II.3 CERTIFICATE NO. CC – 03
PROFORMA FOR SCOPE COMPLETION CERTIFICATE
[TO BE ISSUED BY ENGINEERING]
NAME OF PACK...
Annexure-II.4 . . CERTIFICATE NO. CCC – 04
PROFORMA FOR LIQUIDATED DAMAGES FOR DELAY CERTIFICATE
[ TO BE ISSUED BY ENGINEE...
Annexure-II.5… CERTIFICATE NO. CCC – 05
PROFORMA OF “PAYMENT RECONCILIATION” CERTIFICATE
[ TO BE ISSUED CORPORATE FINANCE ...
Annexure-II.6… CERTIFICATE NO. CCC – 06
PROFORMA of “NO DEMAND CERTIFICATE” BY CONTRACTOR
[ TO BE ISSUED BY THE CONSULTANT...
Annexure-II.7…. CERTIFICATE NO. CCC – 07
PROFORMA of CERTIFICATE FOR RETURN OF B.G.’S
[ TO BE ISSUED BY CORPORATE FINANCE ...
Contract ClosingContract Closing
The Action
Points & Pain
From
Prospective
From
the Vendor
Prospective
CCP01
Final Amendment of the Contract
CC&M
Preparation and submission of Quantity and amount
variation statement from LOA ...
CCP02
Engineering documents
Engg
Preparation, submission and approval of Engg docs
Repeated visit to NTPC EOC and customer...
CCP03
QA documents
QA&I
Preparation, submission and approval of QA docs
Repeated visit to NTPC EOC for re-generating
docum...
CCP04
Operation and Maintenance Manual
OS
Preparation, submission and approval of O&M manual
Repeated visit to NTPC EOC fo...
CCP05
Scope Completion
VENDOR
• Balance supply of Main items.
• Balance supply of Mandatory Spares, if applicable
• Supply...
CCP06
Final Time Extension
Vendor
Preparation, submission and persuasion for approval of
final time extension.
All Corresp...
CCP07
Status of PG – Test / Shortfall in Equipment Performance
Project / OS / RHQ
Preparation, Submission and approval of ...
CCP08
Material Reconciliation
VENDOR & PROJECT / Site
Preparation and submission of material reconciliation
Supply detail ...
CCP09
Payment Reconciliation
VENDOR & PROJECT / Site
Preparation and submission of payment reconciliation
Payment status o...
CCP10
Labour and statuary requirements
HR/IR-Site
Submission of all PF docs, wages sheets and contractors
and their Sub co...
CCP11
No demand certificate by Contractor
VENDOR
Issued by Contractor
To maintain the payment records
Cross check deductio...
CCP12
Facility of completion period
VENDOR & PROJECT / Site
Repeated visit to project siteRepeated visit to project site
F...
CCP13
Return of BGs
Owner-Site
Completion of all above
Repeated visitRepeated visit
To
project site & Corporate office
for...
Monitoring
To monitor and expedite Contract Closing activities and to
facilitate timely intervention of higher management for
contrac...
Constitution of Committees
In case of Greenfield/ expansion Projects
CCG, CMCC and the ED level Committees shall be
consti...
Monitoring
Status of Contract Closing
The Contract Closing Group shall work under
the overall Guidance of GM [Project]
CCG...
[i] Representative of Project Co-ordination Department of the
Region at Corporate Centre at E7 level
Convenor
[ii] Represe...
MONITORING OF CONTRACT CLOSING
Annexure-III
SAMPLE FORMAT OF STATUS REPORT ON CONTRACT CLOSING
TO BE PREPARED BY CONTRACT ...
DETAILED REPORT ON CONTRACT CLOSING
IN RESPECT OF
PACKAGES WHERE WORK COMPLETED BUT
CONTRACTS NOT YET CLOSED.
Annexure-IV
...
[i] Representative of Regional Head Quarters at AGM level Convenor
[ii] Concerned AGM [CS] Region Member
Contracts where c...
CMCC to meet on 20th of every month.
CMCC shall initiate action plan on
all cases which could not be resolved
or the cases...
Contracts where contract closing could not be resolved
within three [3] months of successful completion of
warranty period...
Exception reports on Contract Closing
on monthly basis
shall be put up by
ED [CMG] to CMD
through
Director [Project]
with ...
Director [Project] will review the progress
& status of Contract Closing
once in every six [6] months.
The Director[Projec...
Monitoring Status of Contract Closing
The Contract Closing Group shall work under the overall
Guidance of GM [Project]
On ...
A Presentation by
S.K.Pandita
C&M Consultant – Advisor
ex-AGM (CMM)
NTPCNTPC
09650996263
skpandita@gmail.com
OnOn
Contract...
Thank youThank you
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Contract closing ppt

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Contract Closing is one of the important POST Award activity of the Contract Management.
The process involves settling of Contract Closing Procedures, thereby helping the agencies having executed the jobs successfully, in realizing their Final / Retained payments from their CLIENTS, which is mostly to the tune of 10 to 15 % of the Contract Value.

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Contract closing ppt

  1. 1. A Presentation on GENERAL OVERVIEW OF CONTRACTS MANAGEMENT && Contract ClosingContract ClosingContract ClosingContract Closing S.K.Pandita C&M Consultant – Advisor ex-AGM (CMM) NTPC 09650996263 skpandita@gmail.com
  2. 2. FIVE WATCH WORDS OF PROCUREMENT CONTRACT MANAGEMENTCONTRACT MANAGEMENT –– An OverviewAn Overview 2 Transparency Value for Money Quality Time Fairness
  3. 3. The main objectives of Procurement is traditional “five Rights’ that is procurement of "stores of Right quality from Right supplier in the Right quantity at CONTRACT MANAGEMENTCONTRACT MANAGEMENT objectiveobjective "stores of Right quality from Right supplier in the Right quantity at the Right time and at Right price" the 6th is right attitude & The MOST important the 7th Right Procedures
  4. 4. Corporate Contract Procurement System & Procedures Contracts Management Functions May be divided into Contract Consultancy Contracts Regional Contracts
  5. 5. Corporate Contracts : Major Plant & Machinery involving All New Projects Expansion Projects Contracts Management Functions involving Major Engg. Support Expansion Projects Major R&M of Plant & Consultancy Contracts :
  6. 6. Phase 1 Phase 2 Phase 3 PROCUREMENT SYSTEMS AND PROCEDURESPROCUREMENT SYSTEMS AND PROCEDURES Contract Management System 6 Pre-Award Activities Award of a Contract Post-Award Activities
  7. 7. CMD ED (CC&M) ED (Regions) Organizational Setup Procurement System & Procedures (CC&M) GM (CM) GM(CS) (Regions) GM (Project) DGM( C&M)
  8. 8. Contract Management System PRE-AWARD CONTRACT MANAGEMENT In the Pre-Award Contract Management System, the various activities involved in the Pre-Award Contract Management System are as follows & the key responsibility are identification of Contract Packages till the award of Contract : 8 1. CONTRACT PACKAGING1. CONTRACT PACKAGING 2. TENDERING/BIDDING2. TENDERING/BIDDING 3. QUALIFICATION REQUIREMENTS FOR BIDDERS3. QUALIFICATION REQUIREMENTS FOR BIDDERS 6. SUBMISSION, RECEIPT AND OPENING OF BIDS6. SUBMISSION, RECEIPT AND OPENING OF BIDS 5. ISSUANCE OF INVITATION FOR BIDS5. ISSUANCE OF INVITATION FOR BIDS 4. BIDDING DOCUMENTS4. BIDDING DOCUMENTS 8. CONTRACT AWARD8. CONTRACT AWARD 7. EVALUATION OF BIDS7. EVALUATION OF BIDS
  9. 9. Types of Contracts being handled … • Supply-cum-Installation Contracts (Turnkey Contracts) Contract Management System Types of Contracts • Supply-cum-Installation Contracts (Turnkey Contracts) • Civil Works Contracts • Supply Contracts • Erection Contracts • Consultancy Contracts • E P C Contracts
  10. 10. Procurement System Contract Management System Three Tier Procurement SystemThree Tier Procurement SystemThree Tier Procurement SystemThree Tier Procurement System Procurement at Corporate Level Procurement at Regional Level Procurement at Plant / Site Level
  11. 11. Three tier Procurement SystemThree tier Procurement System Procurement at Corporate Level • Procurement of high value, large and complex equipment/system having intense Engineering coordination for initial setting up of Power projects as well as R&M of Power Stations. • Procurement of Fuel on long-term basis & Mining Contracts• Procurement of Fuel on long-term basis & Mining Contracts Procurement at Regional Level • Procurement of value ranging from Rs.10 crore to Rs.50 crore Procurement at Site Level • Site Specific procurements for initial setting up of Projects • Small value procurements related to O&M
  12. 12. Procurement PhilosophyProcurement Philosophy A1. QUALIFICATION PROCESS Qualification process to be adopted in selection of contractors : Pre-qualification Enlistment Process Post-qualification Pre-qualificationPre-qualification • In certain specialized areas like ‘Fuel Procurement’ and ‘Mining’, NTPC is adopting Pre-qualification followed by Two-stage bidding Enlistment Process • Previously Enlistment was done for small value contracts but lately NTPC is undertaking Enlistment for large valued Civil Works contracts also
  13. 13. Procurement PhilosophyProcurement Philosophy A2. BIDDING PROCEDURE Single Stage • Single Stage , Single Envelope Ideal for all clearly - specified goods Technical and Price Bids in one envelope Both opened at the same timeBoth opened at the same time • Single Stage , Single Envelope Ideal for technology items ( IT- domain ) Technical & Price Bids in separate envelope Price Bids opened for technically suitable & acceptable bidders after approvals. Two Stage Bidding • Ideal for complex equipment / system • First stage -- technical proposals are invited • Discuss and Finalize technical specification • Second stage .. Price Bids are invited
  14. 14. Phase 1 Phase 2 Phase 3 PROCUREMENT SYSTEMS AND PROCEDURESPROCUREMENT SYSTEMS AND PROCEDURES Contract Management System 14 PrePre--AwardAward ActivitiesActivities Award of a Contract Post-Award Activities CONTRACT AWARD EVALUATION OF BIDSEVALUATION OF BIDS
  15. 15. Contract awarded after satisfactory resolution of all points with the bidder in the form of Notification of Award/Letter of Award • NOA/LOA will contain all resolutions reached with the bidder • Quality Plan • Implementation Schedule • DOCUMENTS FINALISED AFTER ISSUE OF NOA/LOA Procurement Process Award of Contract Procurement Process Award of Contract 15 • DOCUMENTS FINALISED AFTER ISSUE OF NOA/LOA • Detailed PERT Network • Quality Plan • Billing Break up • Contract Coordination Procedure
  16. 16. CONTRACT AGREEMENT • Contract Agreement is signed within 60 days of placement of LOA / NOA. • Initial advance if provided in the LOA/NOA is released after • Contract Signing Procurement Process Award of Contract Procurement Process Award of Contract 16 • submission of securities towards Advance Payment • Contract Performance Guarantee • Failure to sign Contract Agreement / submit CPG within the time period specified in the Bid Documents can lead to – Forfeiture of Bid Security – Cancellation of Contract.
  17. 17. CONTRACT AGREEMENT.Contains following documents –Bid Documents –Bidder’s Offer Procurement Process Award of Contract Procurement Process Award of Contract 17 –Bidder’s Offer –Minutes of post bid discussions –NOA/LOA along with Amendments if any – Approved PERT Network –Approved Quality Plan
  18. 18. Phase 1 Phase 2 Phase 3 PROCUREMENT SYSTEMS AND PROCEDURESPROCUREMENT SYSTEMS AND PROCEDURES Contract Management System 18 PrePre--AwardAward ActivitiesActivities Awardofa Contract Post-Award Activities
  19. 19. MAJOR POST –AWARD ACTIVITIES Signing of contract agreement Obtaining performance and advance securities POSTPOST –– AWARDAWARD CONTRACT MANAGEMENTCONTRACT MANAGEMENT May 19, 2014 Approval of manufacturing / construction drawings Finalisation and approval of quality plans Amendments / modifications to contract as may be necessitated during contract execution
  20. 20. Inspection and testing of equipment at manufacturer’s works Entire co-ordination of work at project site including monitoring of receipt of material, identifying space for contractor’s site office establishment, ensuring timely receipt of contractors' erection/ construction equipment, POSTPOST –– AWARDAWARD ---- CONTRACT MANAGEMENTCONTRACT MANAGEMENT MAJOR POST –AWARD ACTIVITIES May 19, 2014 equipment, review of manpower deployment of contractor, providing site fronts and other inputs/owner issue material etc., Supervision/ monitoring of erection/ construction work, start-up activities, trial operation/ commissioning, performance and guarantee tests. Closure of Contracts
  21. 21. Closing of the Contract is effected only after : PG test is successfully completed Last stage payments are released Final Time extension Final contract AmendmentsFinal contract Amendments The warranty period is successfully completed CPG of the Contractor is returned / discharged As per Contract Closing procedure, thirteen certificates shall be issued by the concerned departments for effecting the contract closing activity.
  22. 22. Receipt of L-2 Network approved by CMG/CR Post Award Expediting Progress Reporting by Contractor Contract Review Meeting PRT --- Project review team meetings of the project authority on monthly basis CRM --- Periodicity of CRM is governed by Project requirement & progress of the package first CRM is held within 45 days of award
  23. 23. Contract Presentation by S.K.Pandita 09650996263 Contract Closing
  24. 24. CONTRACT CLOSING After completion of the Contract and fulfilment of all contractual obligations by the Company as well as the vendor / contractor, The Contract should be closed expeditiously after settlements all the dues of either party and settlement of all outstanding issues, if any, relating tosettlement of all outstanding issues, if any, relating to the Contract. The responsibility for closing the Contract shall be with the CC&M / CS Department for all category of contracts in association with Erection Department, Engineering Department, Finance, OS Department & the Head of the Project.
  25. 25. All concerned departments/ functions of project authority involved in contract execution to issue certificates certifying fulfillment of respective obligations by the contractor. Contractor to furnish ‘no claim certificate’ to the Contract Closing (For General Contracts) May 19, 2014 Contractor to furnish ‘no claim certificate’ to the employer Contractor to be discharged of its obligations under the contract after completion of defect liability period.
  26. 26. • Contract Closing basically symbolizes that on closure of a contract, the liabilities of either parties stand settled i.e. works / supplies have been completed in terms of the provisions of the contract and all the due payments have been released. • Closing of the Contract is effected only after : – PG test is successfully completed Contract Closing (For General Contracts) 26 – PG test is successfully completed – Last stage payments are released – The warranty period is successfully completed – CPG of the Contractor is returned / discharged • As per Contract Closing procedure, thirteen certificates shall be issued by the concerned departments for effecting the contract closing activity.
  27. 27. Contracts Management Functions Contract Closing Contracts with Foreign parties and Multilateral Agencies closed by Corporate Contractsclosed by Corporate Contracts Rest by Site And Consultancy Contracts by Engineering
  28. 28. CORPORATECONTRACTS - P&S GROUP Circular no 594 Date: 16.01.2006 System for Contract Closing for Packages awarded byPackages awarded by Corporate Contract Services This circular supersedes earlier Circular Nos. 309, 375, 399, 449, 483, 475, 478, 508 and 510.
  29. 29. This circular provides the guidelines for closing of the various types of contracts awarded by Corporate Contract Services. for setting up offor setting up of Greenfield/ Expansion projects Renovation & Modernization Works Supply cum Erection Contracts for Various power stations.
  30. 30. In case of Supply-cum-Erection Contracts, the closing of the contract shall be affected after the warranty period is successfully completed and the CPG of the Contractor is returned/ discharged.CPG of the Contractor is returned/ discharged. For civil packages, the closing of Contract shall be affected after completion of the defect liability period and refund of Security Deposit.
  31. 31. The responsibility for closing of various types of contracts awarded by Corporate Contract Services shall be as follows: By Corporate Contracts • on foreign parties • All multi-project Contracts, under different region• All multi-project Contracts, under different region By Regional Head Quarters. • All multi-project contracts under the same region By Corporate Engineering group • The consultancy Contracts, by executing department. By Projects / Station • All balance contracts shall be closed by the respective Projects / Stations.
  32. 32. The coordinators for Contract Closing activities shall be as follows: HOD of concerned group …….for Corporate Contract. • on foreign parties • All multi-project Contracts, under different region ED ( Region ) …… for Regional Head Quarters. • All multi-project contracts under the same region• All multi-project contracts under the same region HOD ( Engg ) ……. for Corporate Engineering group • The consultancy Contracts, by executing department. HOP …… for Projects / Station • All balance contracts shall be closed by the respective Projects / Stations. Greenfield / Expansion and R & M Projects shall be from ERECTION / CONSTRUCTION / O&M Deptt. respectively
  33. 33. The coordinators for forwarding CCP’s shall be as follows: Contracts Closed by Regional Head Quarters & Projects / Station HOD of concerned Contract groupHOD of concerned Contract group shall coordinate and forward all certificates to Regions & Projects
  34. 34. The coordinators for forwarding CCP’s shall be as follows: Contracts Closed by Corporate Contracts Regional Head Quarters Corporate Engineering all certificates required from site shall be sent by representatives of Head of Projects
  35. 35. for Contract closing of all Contracts awarded by Corporate Contract Services. for setting up of Greenfield/ Expansion projects Renovation & Modernization Works Supply cum Erection Contracts for Various power stations.Supply cum Erection Contracts for Various power stations. Thirteen (13) certificates, CCP- 01 to CCP-13 as per the Performa shall be issued by the concerned departments and submitted to the designated authority
  36. 36. CCP-01 Final ammendment to contract ⃝ Yes ⃝ No ⃝ n/a CCP-02 Drawing reciept ⃝ Yes ⃝ No ⃝ n/a CCP-03 Quality documents reciept ⃝ Yes ⃝ No ⃝ n/a CCP-04 O&M Manual reciept ⃝ Yes ⃝ No ⃝ n/a Contact Telephone/ E-mail Project Name Prepared By Date Contractor Contract As per Contract Closing procedure, thirteen certificates shall be issued by the concerned departments for effecting the contract closing activity. CCP-04 O&M Manual reciept ⃝ Yes ⃝ No ⃝ n/a CCP-05 Scope completion ⃝ Yes ⃝ No ⃝ n/a CCP-06 Liquidated damages for delay ⃝ Yes ⃝ No ⃝ n/a CCP-07 Equipment performance shortfall ⃝ Yes ⃝ No ⃝ n/a CCP-08 Material reconciliation ⃝ Yes ⃝ No ⃝ n/a CCP-09 Payment reconciliation ⃝ Yes ⃝ No ⃝ n/a CCP-10 Labour payment & statutory requirement⃝ Yes ⃝ No ⃝ n/a CCP-11 No demand ⃝ Yes ⃝ No ⃝ n/a CCP-12 Completion of warranty period ⃝ Yes ⃝ No ⃝ n/a CCP-13 Return of Bank guarantee ⃝ Yes ⃝ No ⃝ n/a
  37. 37. CCP-01 Certificate of Final Amendment to the Contract Corporate Contract Services 7 Months from Sysnchronization CCP-02 Drawing Receipt Certificate Corporate Engineering 2 Months from Synchronization CCP-03 QA Documents Receipt Certificate CQA & I 2 Months from Synchronization CCP-04 O&M Manual Receipt Certificate Corporate Engineering 4 Months from Synchronization CCP-05 Scope Completion Certificate Site Erection 8 Months from Synchronization
  38. 38. CCP-06 Liquidated Damages for Delay Certificate CCP-06(a) For cases where LD for delay is settled by Corporate Contracts Corporate Contract Services 7 Months from Synchronization CCP-06 (b) For cases where LD for delay is settled by Corporate Contracts Concerned Site/ Regional offices 7 Months from Synchronization CCP-07 Shortfall in Equipment Performance CertificateShortfall in Equipment Performance Certificate Corporate OS : Site Performance Test-Cat-I Regional OS : Site Performance Test- Cat-II Site : Site Perform- ance Test- Cat-III CQA&I : Shop Test 5 Months from Performance and Guarantee (PG) Tests CCP-08 “Material Reconciliation” Certificate Site Erection & Site materials Mgmt. 6 Months from Synchronization
  39. 39. CCP-09 “Material Reconciliation” Certificate Indian Contractor Site Finance 6 Months from Synchronization CCP-09A Reconciliation Certificate for Payments by Site : Foreign Contractor Site Finance 6 Months from Synchronization6 Months from Synchronization CCP-09B Reconciliation Certificate for Payments by Corporate Finance: Foreign Contractor Corporate Finance (IF Deptt.) 6 Months from Synchronization CCP-09C “Customs Reconciliation” Certificate: Foreign Contractor Transportation and Customs Clearance [T&CC] office 6 Months from Synchronization
  40. 40. CCP-10 Certificate regarding Labour Payments and Statutory Requirements to be furnished by Contractor. Contractor 6 Months from Synchronization CCP-11 “No Demand Certificate” by Contractor Contractor 6 Months from PG Test CCP-12CCP-12 Certificate for Completion of Warranty Period Site Erection/O&M* 14 Months from Trial Operation/Completion of Facilities CCP-13 Certificate for Return of BGs/ Indemnity Bonds etc. Site Finance/ Corporate Finance All BGs except CPG:5 Month from Trial Operation / Completion f Facilities CPG: 15 Months from Trial Operation/ Completion of Facilities
  41. 41. for Contract Closing of all Consultancy Contracts Seven ( 7) certificates,Seven ( 7) certificates, CCC – 01 to CCC- 07 as per the Performa shall be issued by the concerned departments and submitted to the designated authority
  42. 42. In case of Consultancy Contracts following seven (7) certificates listed below as per Performa shall be applicable CERTIFICATE NO. CERTIFICATE DESCRIPTION RESPONSIBILITY CCC-01 Certificate of Final Amendment to the Contract Corporate Contract Services CCC-02 Receipt of Deliverable Certificate CorporateCCC-02 Receipt of Deliverable Certificate Corporate Engineering CCC-03 Scope Completion Certificate Corporate Engineering CCC-04 Liquidated Damages for Delay Certificate Corporate Engineering CCC-05 “Payment Reconciliation” Certificate Corporate Finance CCC-06 “No Demand Certificate” Consultant Consultant CCC-07 Certificate for Return of BGs Corporate Finance
  43. 43. SIGNING OF CERTIFICATES … CCP’s All the Contract Closing Certificates shall be signed by the Heads of the relevant department. In any case the certificates shall not be signed by executives below E 6 level.
  44. 44. SIGNING OF CERTIFICATES … CCP’s All the Contract Closing Certificates shall be signed by the Heads of the relevant department. In any case the certificates shall not be signed by executives below E 6 level. In respect of Packages which are to be closed by Site, Head of ProjectHead of Project to decide relevance of a Particular Certificate for a Particular Package and accordingly take suitable action for closing of contract with or without a particular certificate.
  45. 45. Ensure completion of Trial operation / Commissioning Receive acceptance of amdt. from contractor Issuance of amdt. Based Contract Closing (For General Contracts) Check if any , comm. issue is pending after latest amendment of contract Issue certificate No:CCP-01 Issuance of amdt. Based on settlement reached Receive technical app. for pending issues
  46. 46. Obtain balance Contract Closing Certificate from relevant dept. & Contractor Initiate note for Enclose all CCPs & Contract Closing (For Multi region Project Contracts & Foreign Contractor) Initiate note for Contract Closing Enclose all CCPs & brief status of activities Approval of CC Note Intimate concerned Project(s) upon receipt of Approval for Closing of Contract
  47. 47. Annesure-I.1 CERTIFICATE NO. CCP – 01 PROFORMA OF CERTIFICATE OF FINAL AMENDMENT TO THE CONTRACT [TO BE ISSUED BY CORPORATE CONTRACT SERVICES] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: This is to certify that amendments have been issued to the aforesaid contract as per theThis is to certify that amendments have been issued to the aforesaid contract as per the details mentioned below: 1. 2. 3. 4. This is to certify further that Amendment No Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  48. 48. Annexure-I.2 CERTIFICATE NO. CCP – 02 PROFORMA FOR DRAWING RECEIPT CERTIFICATE [TO BE ISSUED BY ENGINEERING] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: DATED:NAME OF CONTRACTOR: DATED: Project: This is to certify that we have received all the drawings which were to be submitted by the Contractor in requisite number along with the reproducible as detailed in Annexure. Enclosed herewith, as per provisions stipulated in the above mentioned LOA/ Contract. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  49. 49. Annexure-I.3 CERTIFICATE NO. CCP – 03 PROFORMA FOR QA DOCUMENTS RECEIPT CERTIFICATE [ TO BE ISSUED BY CQA & I ] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: Project :Project : This is to certify that the QA documents as per the list enclosed, in respect of the above mentioned LOA/ Contract has been received in line with the provisions of the Contract. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  50. 50. Annexure-I.4 CERTIFICATE NO. CCP – 04 PROFORMA FOR O&M MANUAL RECEIPT CERTIFICATE [ TO BE ISSUED BY ENGINEERING ] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: Project : This is to certify that we have received from the contractor all the necessary O&M Manuals in requisite number including the list of spare parts along with the names of vendors in respect fo the above LOA/ contract. The consolidated list of such manuals received is enclosed along with the distribution as marked on the list. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  51. 51. Annexure-I.5 CERTIFICATE NO. CCP – 05 PROFORMA FOR SCOPE COMPLETION CERTIFICATE [ TO BE ISSUED BY SITE ERECTION ] NAME OF PACKAGE:- LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: Project : 1. This is to certify that. The scope of the above Contract has been completed in line with the contract read in conjunction with the following documents: 1. Final Amendment No._______________________________[As per CCP-01] 2. Approved drawings including site run piping schemes, if any, 3. Approved Bill of Materials3. Approved Bill of Materials 4. Material Dispatch Clearance Certificate [s] 5. Measurement Book 6. As Built Drawings 7. Any other documents [specify] 2.It is further certified that the following have been supplied, as per the details given in the Contract Documents and the same have been taken over by NTPC. 1. Mandatory Spares 2. Recommended Spares 3. Special Tools & Tackles Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  52. 52. Annexure-I.6 CERTIFICATE NO. CCP – 06 PROFORMA FOR LIQUIDATED DAMAGES FOR DELAY CERTIFICATE [ TO BE ISSUED BY SITE ERECTION/ REGIONAL OFFICE / CORPORATE CONTRACT SERVICES ] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: Project : This is to certify that the issue regarding liquidated damages for delay as per theThis is to certify that the issue regarding liquidated damages for delay as per the provisions of clause_______of the above contract/ LOA has been resolved with the approval of the Competent authority vide reference ________________[copy enclosed]. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ Note: In respect of cases where LD for delay is settled by Corporate Contact Services [CS], this certificate will be issued by CS and where LD for delay is settled by the Site / Region, the same will be issued by the concerned Site/Regional Offices.
  53. 53. S. No Guaranteed Parameter Guaranteed Assessed Value Shortfall, if Liquidated damages Annexure-I.7 CERTIFICATE NO. CCP – 07 PROFORMA SHORTFALL IN EQUIPMENT PERFORMANCE CERTIFICATE TO BE ISSUED BY OS FOR SITE PERFORMANCE TEST AND BY CQA&I FOR SHOP TEST NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that the following shortfall in equipment performance as compared to the guaranteed parameters have been assessed and agreed to with the contractor in respect of the above mentioned LOA/Contract. S. No Guaranteed Parameter Guaranteed Value Assessed Value Shortfall, if any. Liquidated damages Annual 1 2 3 4 5 6 Further, it is also confirmed that liquidated damages for shortfall in equipment performance in respect fo above Items, have been recovered fully from the contractor and no other dues are outstanding for shortfall in equipment performance. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ To be counter signed by Site Accounts. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  54. 54. Annexure-I.8 CERTIFICATE NO. CCP – 08 PROFORMA OF “MATERIAL RECONCILATION” CERTIFICATE TO BE ISSUED BY SITE ERECTION AND COUNTERSIGNED BY SITE MATERIALS MANAGEMENT NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that the materials issued to the contractor in respect of the aboveThis is to certify that the materials issued to the contractor in respect of the above mentioned LOA/Contract have been, reconciled with the stipulations under the contract documents and no other recovery of material is pending with the contractor. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ To be counter signed by material management. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  55. 55. Annexure-I.9 1/2 CERTIFICATE NO. CCP – 09 PROFORMA OF “PAYMENT RECONCILIATION” CERTIFICATE [ TO BE ISSUED BY SITE ACCOUNTS IN CASE OF INDIAN CONTRACTORS ] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that all the payments released to the contractor in respect of the above mentioned LOA/Contract have been reconciled with the provisions of the contract documents and statemet of Accounts and or other Certificates of Contractor. It is observed that there are no recoveries pending under any of the items listed overleaf.under any of the items listed overleaf. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ Enclosure to CCP-09 The list of recoveries and claims as advised by site Erection Department should include all recoveries and claims on any account whatsoever, including the following: 1. Liquidated damages for delay. 2. Liquidated damages for shortfall in Performance as observed during shop-testing [by inspection deptt.] 3. Liquidated damages for shortfall in performance as observed during performance guarantee tests conducted at site and other site tests.
  56. 56. Annexure-I.9 2/2 CERTIFICATE NO. CCP – 09 4. All recoveries / claims on account of variations/deviations to scope of contract permitted or otherwise taken place during execution of the contract as listed in certificate No. CCP-05 for contract closing [Certificate by site Erection for contract closing]. 5. Recoveries on account of reconciliation of payments made under the contract. 6. All the claims against the contractor regarding clearance of materials from site and vacation of the premises allotted for site office, stores. 7. All claims in respect of Training/Transportation/Accommodation/Services provided by site in respect of above LOA/Contract. 8. Recoveries on account of settlement of insurance claims 9. Recoveries on account of reconciliation of materials issued to the Contractor. 10. All recoveries on account of demurrage, transportation, insurance premiums etc. and10. All recoveries on account of demurrage, transportation, insurance premiums etc. and other recoveries as informed by T&CC group on account of port clearance, transportation etc. 11. All recoveries on account of wastage and scrap. 12. All recoveries/claims [if any] on account of maintenance of equipments. 13. All recoveries/claims [if any] on account of price variation. 14. All recoveries/claims [if any] on account of statutory dues paid on behalf of the Contractor by NTPC. 15. Royalty charges. 16. All recoveries/claims [if any] on account of hiring out of NTPC’s plant and equipment. 17. All recoveries/claims [if any] on account of water and electricity charges ,if applicable 18. Any recoveries/claims against specific instructions.
  57. 57. Annexure-I.9A ( ½) CERTIFICATE NO. CCP – 09A PROFORMA OF RECONCILIATION CERTIFICATE PAYMENT FOR PAYMENTS BY SITE [ TO BE ISSUED BY SITE ACCOUNTS /REGIONAL ACCOUNTS OFFICE / IN CASE OF FOREIGN CONTRACTORS ] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: PROJECT/REGIONAL OFFICE:PROJECT/REGIONAL OFFICE: This is to certify that, 1] All the payments against the above mentioned LOA/ Contract have been reconciled with the provisions of the Contract Documents and Statement of Accounts and/or other certificates of the Contractor. 2] No recoveries are pending from the Contractor under any of the items advised by Site Erection Department as listed overleaf. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  58. 58. Annexure-I.9A ( 2/2 ) CERTIFICATE NO. CCP – 09A Enclosure to CCP – 09A The list of recoveries and claims as advised by Site Erection Department should include all recoveries and claims on any account whatsoever, including the following: 1. All the claims against the Contractor regarding clearance of material from site and vacation of premises allotted for site office, stores. 2. All claims in respect of Training / Transportation / Accommodation / Services provided by Site in respect of the above mentioned LOA / Contract. 3. Recoveries on account of settlement of insurance claims.3. Recoveries on account of settlement of insurance claims. 4. Recoveries on account of reconciliation of materials issued to the Contractor. 5. All recoveries on account of wastage and scrap. 6. All recoveries / claims [if any] on account of statutory dues paid on behalf of the Contractor. 7. All recoveries / Claims [if any] on account of hiring out of NTPC’s plant and equipment. 8. All recoveries / claims [if any] on account of water and electricity charges [if applicable] 9. Any other recoveries / claims against specific instructions.
  59. 59. Annexure-I.9B ( 1 of 2) CERTIFICATE NO. CCP – 09B PROFORMA OF RECONCILIATION CERTIFICATE FOR PAYMENTS BY CORPORATE FINANCE [ TO BE ISSUED BY COPRRATE FINANCE - I.F. DEPTT. FOR CONTRACT ON FOREIGN CONTRACTOR NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that,This is to certify that, 1] All the payments against the above mentioned LOA / Contract released to the Contractor from Corporate Finance [I.F. Deptt.] have been reconciled with the provisions of the Contract Documents and Statement of Accounts and/or other certificates of the Contractor. 2] No recoveries are pending from the Contractor under any of the items advised by Site Erection Department as listed overleaf. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  60. 60. Annexure-I.9B ( 1 of 2) CERTIFICATE NO. CCP – 09B Enclosure to CCP – 09B The list of recoveries and claims as advised by Site Erection Department should include all recoveries and claims on any account whatsoever, including the following: 1. Liquidated damages for delay. 2. Liquidated damages for shortfall in performance as observed during shop-testing [by Inspection Deptt.] 3. Liquidated damages for shortfall in performance as observed during performance3. Liquidated damages for shortfall in performance as observed during performance gurantee tests conducted at site and other site tests. 4. All recoveries / claims on account of variation / deviations to scope of contract permitted or otherwise taken place during execution of the Contract as listed in certificate No. CCP-05 for contract closing [certificate by Site Erection for Contract Closing] 5. Recoveries on account of reconciliation of payments made under the contract. 6. Reconciliation on account of settlement of insurance claims. 7. All recoveries / claims [if any] on account of price variation. 8. Royalty charges. 9. Any other recoveries / claims against specific instructions.
  61. 61. Annexure-I.9C CERTIFICATE NO. CCP – 09C PROFORMA OF “CUSTOMS RECONCILIATION” CERTIFICATE [ TO BE ISSUED BY ACCOUNTS DEPTT. OF T&CC OFFICE CONTRACT ON FOREIGH CONTRACTOR ] NAME OF PACKAGE: LETTER OF AWARD / NOA CONTRACT NO. : NAME OF CONTRACTOR: PROJECT/REGION: This is to certify that: 1] All the payment released by this......**...... T&CC Office in respect of the above mentioned LOA/Contract have been debited to the Project / Region as per details [***] enclosed for reconciliation / settlement / recovery by them. 2] All the payments released towards the payment of Customs Duty have been completely reconciled2] All the payments released towards the payment of Customs Duty have been completely reconciled with the Customs Authorities by the Contractor. No amount is due to the Customs Authorities and no recoveries are pending from the Contractor under any of the items noticed. [ This is applicable for vendor clearance ] 3] All documents required from the Contractor for reconciliation of the Customs Duty Payment with the Customers Authorities have since been received and those are in order. No recoveries are pending from the Contractor under any of the items noticed. [ This is applicable where the clearance is done by NTPC] Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ ** Name of T*CC Office from where payments have been released *** The details will include amount, date when paid, reasons for payment and when debit was given to the concerned Project / Region together with reference thereof, if any. Note : Strike out whichever is not applicable and initial.
  62. 62. Annexure-I.10 CERTIFICATE NO. CCP – 10 PROFORMA OF CERTIFICATE REGARDING LABOUR PAYMENTS AND STATUTORY REQUIREMENTS TO BE FURNISHED BY CONTRACTOR. [ TO BE ISSUED BY THE CONTRACTOR ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT:PROJECT: This is to certify that the we have made all labour payments including PF Liabilities in respect of the above mentioned LOA/Contract and no other payments in this regard is pending from us. Further we confirm that all Statutory requirements have been complied with by us and in case any default is reported against us, we shall be solely responsible for the same. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  63. 63. Annexure-I.11 CERTIFICATE NO. CCP – 11 PROFORMA OF “NO DEMAND CERTIFICATE” BY CONTRACTOR [ TO BE ISSUED BY THE CONTRACTORS ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: We, M/s...................................................................................................[contractor] do hereby acknowledge and confirm that we have received the full and final payment due and payable to us from NTPC Ltd. in respect of our aforesaid LOA/Contract No............................................... dated ...................................including amendments, if any, issued by NTPC Ltd., to our entire satisfaction and we further confirm that we have noissued by NTPC Ltd., to our entire satisfaction and we further confirm that we have no claim whatsoever pending with NTPC Ltd. under the said Contract. Notwithstanding any protest recorded by us in any correspondence, document, measurement books, and/or final bills etc., we waive all our rights to lodge any claim or protest in further under this contract. We are issuing this “NO DEMAND CERTIFICATE” in favour of NTPC Ltd. with full knowledge and with our free consent without any undue influence, misrepresentation, coercion etc. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ [Company Common Seal] [ This certificate shall be accompanied by the Power of attorney of the signatory]
  64. 64. Annexure-I.12 CERTIFICATE NO. CCP – 12 PROFORMA OF CERTIFICATE FOR COMPLETION OF WARRANTY PERIOD [ TO BE ISSUED BY SITE ERECTION ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT:PROJECT: This is to certify that the warranty period for the above mentioned LOA/Contract has been completed in line with the provisions of the contract. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  65. 65. Annexure-I.13 CERTIFICATE NO. CCP – 13 PROFORMA OF “CERTIFICATE FOR RETURN OF BGs / INDEMNITY BONDS ETC.” [ TO BE ISSUED BY SITE ACCOUNTS ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: Instrument No:-………………………. Dt……………………. Value for……………………Instrument No:-………………………. Dt……………………. Value for…………………… Issuing Authority ………………………………….. Place……………. This is to certify that all the *Bank Guarantee/Indemnity bonds / Insurance policies / Collaborator’s or Associate’s Guarantee received for the above mentioned LOA / Contract have been returned in original to the contractor. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ *Delete whichever is not applicable.
  66. 66. Ensure completion of Trial operation / Commissioning Receive acceptance of amdt. from contractor Issuance of amdt. Based Contract Closing (For Consultancy Contracts) Check if any , comm. issue is pending after latest amendment of contract Issue certificate No:CCC-01 Issuance of amdt. Based on settlement reached Receive technical app. for pending issues
  67. 67. CERTIFICATE NO. CERTIFICATE DESCRIPTION RESPONSIBILITY CCC-01 Certificate of Final Amendment to the Contract Corporate Contract Services In case of Consultancy Contracts the following seven (7) certificates as per Performa at Annexure-II.1 to Annexure-II.7, shall be applicable: CCC-02 Receipt of Deliverable Certificate Corporate Engineering CCC-03 Scope Completion Certificate Corporate Engineering CCC-04 Liquidated Damages for Delay Certificate Corporate Engineering CCC-05 “Payment Reconciliation” Certificate Corporate Finance CCC-06 “No Demand Certificate” Consultant Consultant CCC-07 Certificate for Return of BGs Corporate Finance All the Contract Closing Certificates shall be signed by the Heads of the relevant department. In any case the certificates shall not be signed by executives below F6 level.
  68. 68. Amendment No. Date Annexure-II.1… CERTIFICATE NO. CCC – 1 PROFORMA OF CERTIFICATE OF FINAL AMENDMENT OF THE CONTRACT [ TO BE ISSUED BY CORPORATE CONTRACT SERVICES ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that amendments have been issued to the aforesaid contract as per the details mentioned below: Amendment No. Date 1. 2. 3. 4. 5. This is to certify further that Amendment No.____________________dated_____________is the last amendment issued. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  69. 69. Annexure-II.2 CERTIFICATE NO. CCC – 02 PROFORMA FOR DRAWING RECEIPT CERTIFICATE [TO BE ISSUED BY ENGINEERING] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that we have received all the deliverables in requisite numberThis is to certify that we have received all the deliverables in requisite number which were to be submitted by the Contractor along with the reproducible as detailed in Annexure enclosed herewith, as per provisions stipulated in the above mentioned LOA/Contract. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  70. 70. Annexure-II.3 CERTIFICATE NO. CC – 03 PROFORMA FOR SCOPE COMPLETION CERTIFICATE [TO BE ISSUED BY ENGINEERING] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT:PROJECT: This is to certify that, the scope of the above Contract has been completed in line with the contract read in conjunction with the following documents: Final Amendment No.______________________[As per CCC-01] Any other documents [specify] Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  71. 71. Annexure-II.4 . . CERTIFICATE NO. CCC – 04 PROFORMA FOR LIQUIDATED DAMAGES FOR DELAY CERTIFICATE [ TO BE ISSUED BY ENGINEERING ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that the issue regarding liquidated damages for delay as per the provisions of clause__________________of the above contract / LOA has been resolved with the approval of the Competent authority vide reference _____________________________[copy enclosed]. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ This Certificate shall be applicable to Consultancy Contracts, where Liquidated Damages for Delay have been envisaged in the Contract.
  72. 72. Annexure-II.5… CERTIFICATE NO. CCC – 05 PROFORMA OF “PAYMENT RECONCILIATION” CERTIFICATE [ TO BE ISSUED CORPORATE FINANCE ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that, 1] All the payments against the above mentioned LOA / Contract released to1] All the payments against the above mentioned LOA / Contract released to the Contractor from Corporate Finance have been reconciled with the provisions of the Contract Documents and Statement of Accounts and / or other certificates of the Contractor. 2] No recoveries are pending from the Contractor under any of the items advised by Corporate Engineering Department. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................
  73. 73. Annexure-II.6… CERTIFICATE NO. CCC – 06 PROFORMA of “NO DEMAND CERTIFICATE” BY CONTRACTOR [ TO BE ISSUED BY THE CONSULTANT ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: We, M/s.............................................................................[ Consultant ] do hereby acknowledge and confirm that we have received the full and final payment due and payable to us from NTPC Ltd. in respect of our aforesaidwe have received the full and final payment due and payable to us from NTPC Ltd. in respect of our aforesaid LOQ / Contract No......................................dated........................ including amendments, if any, issued by NTPC Ltd., to our entire satisfaction and we further confirm that we have no claim whatsoever pending with NTPC Ltd. under the said Contract Notwithstanding any protest recorded by us in any correspondence, document, measurement books, and / or final bills etc., we waive all our rights to lodge any claim or protest in future under this contract. We are issuing this “NO DEMAND CERTIFICATE” in favour of NTPC ltd. with full knowledge and with our free consent without any undue influence, misrepresentation, coercion etc. Signature............................................... [ Company Common Seal ] Date................................ Name..................................................... Place............................... Designation............................................ [ This certificate shall be accompanied by the Power of attorney of the signatory ]
  74. 74. Annexure-II.7…. CERTIFICATE NO. CCC – 07 PROFORMA of CERTIFICATE FOR RETURN OF B.G.’S [ TO BE ISSUED BY CORPORATE FINANCE ] NAME OF PACKAGE: LETTER OF AWARD / NOA/ CONTRACT NO. : NAME OF CONTRACTOR: PROJECT: This is to certify that all the Bank Guarantee received for the above mentioned LOA / Contract have been returned in original to the consultant. Signature............................................... Date................................ Name..................................................... Place............................... Designation............................................ *Delete whichever is not applicable.
  75. 75. Contract ClosingContract Closing The Action Points & Pain From Prospective From the Vendor Prospective
  76. 76. CCP01 Final Amendment of the Contract CC&M Preparation and submission of Quantity and amount variation statement from LOA to Final amendment Repeated Visit to Project Site, NTPC EOC and customer office for discussion, details required to be, 1. Certified by site engineer 2. Approval from NTPC EOC. ( CC&M & Engineering, Finance )
  77. 77. CCP02 Engineering documents Engg Preparation, submission and approval of Engg docs Repeated visit to NTPC EOC and customer office for details required to be, 1. Submission and approval from NTPC EOC.
  78. 78. CCP03 QA documents QA&I Preparation, submission and approval of QA docs Repeated visit to NTPC EOC for re-generating documents i.e., MDCCs, CHPs, QAPs, FQPs, MTCs And Procedures. 2.Submission and Approval from NTPC EOC(QA&I)
  79. 79. CCP04 Operation and Maintenance Manual OS Preparation, submission and approval of O&M manual Repeated visit to NTPC EOC for re-generating docs i.e., TDS, Layouts, P&ID and others and Customer office for require documents. 2. Submission and Approval from NTPC EOC(OS / Engineering / fuel handling group)
  80. 80. CCP05 Scope Completion VENDOR • Balance supply of Main items. • Balance supply of Mandatory Spares, if applicable • Supply of special T&P, if applicable • Balance Work Repeated visit to project site and customer office for discussion, On Balance work Balance Supply & Punch list
  81. 81. CCP06 Final Time Extension Vendor Preparation, submission and persuasion for approval of final time extension. All Correspondence file required Repeated visit to project site office for discussion, On Submission and Persuasion for approval of final time extension.
  82. 82. CCP07 Status of PG – Test / Shortfall in Equipment Performance Project / OS / RHQ Preparation, Submission and approval of PGT procedure. Conductance of PG test at site Repeated visit to NTPC EOC (Engg and OS) ,RHQ and project site for, 1. Submission and approval of PGT procedure. 2. Conductance of PG test and making report and its approval.
  83. 83. CCP08 Material Reconciliation VENDOR & PROJECT / Site Preparation and submission of material reconciliation Supply detail required Visit to project site for Reconciliation of material and Certified by site engineer
  84. 84. CCP09 Payment Reconciliation VENDOR & PROJECT / Site Preparation and submission of payment reconciliation Payment status of invoice wise (Supply+ETC) Visit to project site and Site Finance for, Reconciliation of Payment with Site-finance
  85. 85. CCP10 Labour and statuary requirements HR/IR-Site Submission of all PF docs, wages sheets and contractors and their Sub contractors issues. To be made & ensure are always available at Site to be checked by Engineer – In – Charge from time to time
  86. 86. CCP11 No demand certificate by Contractor VENDOR Issued by Contractor To maintain the payment records Cross check deductions From time to time to be Issued by Contractor
  87. 87. CCP12 Facility of completion period VENDOR & PROJECT / Site Repeated visit to project siteRepeated visit to project site For collection of completion certificate, To be issued by NTPC site after completion of warranty period.
  88. 88. CCP13 Return of BGs Owner-Site Completion of all above Repeated visitRepeated visit To project site & Corporate office for collection of all BGs and formal closer of contract.
  89. 89. Monitoring
  90. 90. To monitor and expedite Contract Closing activities and to facilitate timely intervention of higher management for contract closing activities, following procedure shall be adopted: Review Progress status on Contract Closing activities. Monitoring of Closing of Contract Advice GHs & PIs for necessary action for of Contract. Seek intervention of highest authorities for resolving the pending issues & expedite the closing of contract During review identify the areas that require corrective at other similar situations in other packages/projects
  91. 91. Constitution of Committees In case of Greenfield/ expansion Projects CCG, CMCC and the ED level Committees shall be constituted immediately after the synchronization of the last unit of the Project. For R&M Projects, CCG, CMCC and the ED level committees shall beCCG, CMCC and the ED level committees shall be similarly constituted immediately after completion of any one of the R&M packages. Necessary action for constitution of these committees shall be taken by Regional Project Coordination Department at Corporate Centre, Regional HQs and concerned Group at Corporate Contract services respectively.
  92. 92. Monitoring Status of Contract Closing The Contract Closing Group shall work under the overall Guidance of GM [Project] CCG – Contract Closing GroupCCG – Contract Closing Group CMCC - Committee for Monitoring Contract Closing ED level Committee Exception by CMG to CMD Review by Director Project in every 6 month. The Director[Project] meeting shall be attended by D[O], D[T], ED [CC&M], ED [Engg.], ED [Fin.], ED [CMG] and concerned EDs of the Region.
  93. 93. [i] Representative of Project Co-ordination Department of the Region at Corporate Centre at E7 level Convenor [ii] Representative of Site Erection at E6 level Member [iii] Representative of Site [Finance] at E6 level Member A Contract Closing Group (CCG) shall be constituted for following up all the Contract closing activities The Contract Closing Group shall work under the overall Guidance of GM [Project] and comprise of the following members: [iii] Representative of Site [Finance] at E6 level Member [iv] Representative of Corporate Contract Services at E6 level Member [v] Representative of Corporate Engg. At E6 level Member The meeting of the CCG shall take place by 7th of every month. Based on the discussions, the Convenor of CCG shall prepare a summary status report on Contract Closing as per format at Annexure-III and a detailed package-wise report on Contract Closing in respect of Packages where work has been completed but Contracts not yet closed as per format given at Annexure-IV. A copy of the Monthly Status Reports [Annexure-III & IV] prepared by CCG shall be sent to ED [Region], ED [CMG] and Head of the Project.
  94. 94. MONITORING OF CONTRACT CLOSING Annexure-III SAMPLE FORMAT OF STATUS REPORT ON CONTRACT CLOSING TO BE PREPARED BY CONTRACT CLOSING GROUP [ CCG ] AND PUT UP TO CMCC EVERY MONTH REPORT FOR THE MONTH OF : PROJECT : SL. NO Description CUMMULATIVE CONTRACTS Contracts to be closed by CS Stations Regions 1. NO. OF CONTRACTS AWARDED 2. NO. OF CONTRACTS WORK COMPLETED 3. NO. OF CONTRACTS WORK COMPLETED BUT CONTRACT NOT CLOSEDCLOSED 4. NO. OF CONTRACTS CLOSED TARGETS for CLOSURE 5. TARGET NO. OF CONTRACTS TO BE CLOSED IN THE REPORTING MONTH 6. NO. OF CONTRACTS CLOSED IN THE REPORTING MONTH 7. TARGET NO. OF CONTRACTS TO BE CLOSED DURING NEXT MONTH Signature of CCG Convenor Convenor of CMCC Concerned HOD of Contracts Corporate Monitoring Group Concerned Head of Project
  95. 95. DETAILED REPORT ON CONTRACT CLOSING IN RESPECT OF PACKAGES WHERE WORK COMPLETED BUT CONTRACTS NOT YET CLOSED. Annexure-IV REPORT FOR THE MONTH OF : PROJECT : Package: Contractor: Work Completion / Trial Operation Completion Date Date of Completion of Warranty Period Certificates Remaining to be Issued Reasons Holding Contract Closing Specific Actions Required and Responsibility CentreCompletion Date Warranty Period Issued Responsibility Centre Remarks Signature of CCG Convenor Date Distribution: 1. Convenor of CMCC 2. Respective Responsibility Centre where Actions required. 3. Concerned GM [ CS ] / AGM [ CS ] 4. Concerned Head of Project
  96. 96. [i] Representative of Regional Head Quarters at AGM level Convenor [ii] Concerned AGM [CS] Region Member Contracts where contract closing has not taken place within two [2] months of successful completion of warranty period. Convenor of the CCG by 10th of every month shall put up a report to the CMCC - Committee for Monitoring Contract Closing which shall comprise of the following: * [ii] Concerned AGM [CS] Region Member [iii] Concerned AGM [PE] Region Member [iv] Representative of OS at AGM level Region Member [v] Representative of Regional Finance at AGM level* Member In case representative at AGM level is not available at Regional HQs, the Head of Finance at the Regional Head Quarters shall act as the member of the committee.
  97. 97. CMCC to meet on 20th of every month. CMCC shall initiate action plan on all cases which could not be resolved or the cases where Contract Closing has not taken place within two [2] months of completion of warranty periodcompletion of warranty period by the Contract Closing Groups - CCG A copy of the Report of the CMCC shall also be forwarded to ED [Region], ED [CMG] and Head of the Project for information.
  98. 98. Contracts where contract closing could not be resolved within three [3] months of successful completion of warranty period. Convenor of the CMCC by 25th of every month shall put up a report to the Committee of Executive Directors ( ED level committee) which shall comprise of the following: [i] ED [CC&M] Convenor [ii] ED [Region] Member [iii] ED [Finance] Member [iv] ED [Engg.] Member [v] Ed [OS] Member The Convenor of CMCC shall also act as Secretary for the ED level Committee.
  99. 99. Exception reports on Contract Closing on monthly basis shall be put up by ED [CMG] to CMD through Director [Project] with a copy towith a copy to Director [Technical], Director [Finance], ED [CC&M], ED[Engg.], ED [Fin.], concerned ED [Region] and concerned Head of Project. identifying the delays and reasons thereof
  100. 100. Director [Project] will review the progress & status of Contract Closing once in every six [6] months. The Director[Project] meeting shall be attended by D[O], D[T], ED [CC&M], ED [Engg.], ED [Fin.], ED [CMG] and concerned EDs of the Region. The Agenda for the Director [Project] meeting shall beThe Agenda for the Director [Project] meeting shall be circulated by GM [CMG] and shall include the exception reports of CMG, status of implementation of action plan finalised by the ED level committee and any other hold-ups affecting Contract Closing. Minutes of the aforesaid Review Meeting shall be issued by GM[CMG] with copies to all the participants, & Heads of the Projects, GM[CS], GM[PE} and GM[Fin].
  101. 101. Monitoring Status of Contract Closing The Contract Closing Group shall work under the overall Guidance of GM [Project] On 7th of every month CCG – Contract Closing Group On 10th of every month Convenor of the CCG by shall put up a report to the CMCC for delay > 2 Months On 20th of every month CMCC to initiate action for above On 25th of every month CMCC to report ED Committee for Delay >3 months review by ED Level Committeefor Delay >3 months review by ED Level Committee Monthly Exception Report by CMG to CMD Review by Director Project in every 6 month. Project Co-ordination at Corporate Centre at E7 l Representative of Regional HQ at AGM level ED [CC&M] Site Erection at E6 level AGM [CS] Region ED [Region] Site [Finance] at E6 level AGM [PE] Region ED [Finance] Cont. Services at E6 level AGM [OS] Region ED [Engg.] Corp. Engg. At E6 level AGM [Finance] level* Ed [OS]
  102. 102. A Presentation by S.K.Pandita C&M Consultant – Advisor ex-AGM (CMM) NTPCNTPC 09650996263 skpandita@gmail.com OnOn Contract ClosingContract Closing
  103. 103. Thank youThank you
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