C P I - CORRUPTION PERCEPTIONS INDEX 11/19/2011 The Transparency International – - the global coalition against Corruption - measures CPI Surveys 178 countries in 2010 year. 4
RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010 YEAR 11/19/2011 5
RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010 YEAR 11/19/2011 Corruption Perception Index on a scale from 10 to 0 10 9.3 9.3 9.3 9 8 7 6 5 4 3 3.3 2 1.4 1.4 Corruption Perception 1 1.1 Index on a scale from 0 10 to 0 6
VIGILANCE ORGANISATION IN INDIA 11/19/2011 CVC – CENTRAL VIGILANCE COMMISSION (website : www.cvc.nic.in)Apex Body at National level having jurisdiction over central Govt. Ministries and PSUs. Manned by Chief Vig. Commr. and to Vig. Commrs. Issues directives to various Ministries which in turn issue 7 procedure orders for their own Departments.
Scenario of Corruption in India – an overview 11/19/2011It is estimated that Rs.26,728 Crores exchangehands in the form of bribe in IndiaGovernments pay 20% to 100% more for theirgoods and services.UN report says that if the corruption level in India is 9reduced to the level of Scandinaviancountries, investment in the country would
ANALYTICAL STUDY OF VIGILANCE CASES PERCENTAGE VIGILANCE CASES 11/19/2011 ASPECT WISE Aw ard of Tenders & Others Contracts 32% 34% Purchases Selections, 17% Appointments& Promotions 17% 10
Vigilance Angle : What is it ? 11/19/2011 Obtaining anything of value without consideration or with Demanding and/or inadequate accepting gratification consideration from other than legal those with whom remuneration. official dealings are likely, either directly or by exerting influence. Obtaining for self or for any other person, anything of value or pecuniary Disproportionate advantage by corrupt Assets vis-à-vis or illegal means or by known sources of abusing the position Income as a public servant. •(cont‟d) 11
Vigilance Angle (cont’d) 11/19/2011 Misappropriation, Forgery, Cheating or similar criminal offences Gross or willful negligence, reckless decision making, blatant violation of systems and procedures and excessive exercise of discretion Other irregularities where circumstances will have to be weighed carefully to view whether the government servants’ integrity is doubtful 12
11/19/2011No action, as a general rule, is taken on AnonymousComplaints (i.e. complaints that do not bear name andaddress of the complainant) and PseudonymousComplaints (i.e. complaints which do not bear thesignature of the complainant or which on verification isnot owned by the person in whose name it is made).However, verifiable facts alleged in such complaintsmay be looked into with prior concurrence of CVC. 13
VIGILANCE AS A BITTER PILL 11/19/2011- Neither liked by honest officer nor adishonest officer. Yet its absence will be harmful to the organisation. Like bitter pill, the vigilance dept. will taste sour. But in the long run, it will be in the good health of an 14 organisation.
Objective of Vigilance Prevention of corruption. 11/19/2011 Promotion of Integrity. Promotion of Vigilance consciousness, amongst Railway men. Effecting system improvement. Advise suitable administrative or 15 disciplinary action.
Vigilance is 11/19/2011Not a stand A part of the -to preventalone activity. overall risk leakages which management adversely affect strategy of an productivity and organisation. profitability. 16
Vigilance is 11/19/2011 -in short, preventiveIt is not the purpose Preventive vigilance measures of Vigilance to wait intelligence is more are more important for lapses to be important than like old adagecommitted and then punitive(penalising) “PREVENTION IS try to conduct post vigilance BETTER THAN mortem. CURE” 17
11/19/2011Cannons of Standards of Financial propriety(Para Its like Bhagavdgita for all116 of I.Rly.Finance Code preventive checks. vol.I) 2. Every Govt. Servant should exercise the same VIGILANCE in respect of 1. The Expenditure expenditure incurred fromshould not be prima facie public money as a person be more than the of a ordinary prudence occasion demands would exercise in respect of the expenditure of his 18 own money.
11/19/20113. No authority should exercise 4. Public moneys should not be its powers of sanctioning utilised for the benefit of a expenditure to pass an particular person or section of order, which will directly or the communityindirectly to its own advantage. 5. The amount of allowances such as T.A, granted to meet expenditure of a particular type should be so regulated that the allowances are not on the whole sources of profit to the recipients. 19
11/19/2011 DO’s1. Identify the purpose & plan in advance.2. Clubbing the similar requirements from allunits.3. Description of item should be clear andcomplete with I.S.specification/drawing if any.4. Specification should not be prepared insuch a way that specification meets therequirements of a single product/specificmake. 20
11/19/2011 DO’s5. Sample clause if any should be only forascertaining „TOUCH, FEEL & FINISH‟ of theindented item, but not for its quality.6.Quantity, Unit & Rate – should be quote infigures as well as words7.Officer signing indent should clearlymention their name and designation.8.Vetting is required for indents valuingRs.one lakh and more(for safety items- 21Rs.Two lakhs and more)
11/19/2011 DO’s9. If the demand of the item isrecurring, convert the same as Stock item.10. Essentiality certificate should becertified by the Indenting Officer.11. Ensure Funds availability andascertain correct head of account to bedebited before placing Indents. 22
11/19/201112. The description of the item shouldnormally be arranged in Order. A. Basic commodity B.Variance in kind or use. C. Composition/size/color/shape D.Specification/drawing No. 23
11/19/2011 Tenders should be both for technical and financialShould be invariably on a bids. Technical bids Public Tender basis. should be scrutinized before financial bids are opened. Delivery samples shouldList of suppliers should be be got checked with basic reviewed periodically. samples. 24
11/19/2011 Review ofPeriodical rotation Immovable propertyof Officers/staff in returns submitted sensitive posts. by Officers/Staff. Proper Institution of implementation of effective grievance DA Rules to weed procedure enquiry.out corrupt officers. 25
TENDERS AND CONTRACTS 11/19/2011 A VIGILANCE POINT OF VIEW 26
11/19/20111. E-Procurement– for efficiency in the procurement of goods, worksand services.-- brings in greater transparency, thus reducingopportunities for corruption.-- publish their tenders and complete biddocuments along with the application forms onthe Website itself duly curbing mal-practicesprevailing in various govt offices wherecompetition is sought to be restricted. 27
2. 11/19/20112. E-Payment- Here again bring economy and efficiency and atthe same time reducing corruption.- Leveraging technological advances in thebanking sector for the benefit of governmentorganisations like Railways, Defence etc.- Reducing transaction costs involved in makingpayments by way of cheques and sending thesame through courier.- Also curbs corruption which accompanieshanding over cheques to contractors, suppliersetc. 28
11/19/20113. Extensive use of Website & Internetenables stakeholders- To verify the outstanding bills position byContractors, suppliers.- To track down their PF application onlineby employees- Reducing enquiries thus enables staffmore productive. 29
11/19/20113. Extensive use of Website & Internetenables stakeholdersExperience certificate should be posted onSC Railway Website by the IssuingAuthorities to enable Tender Committee(TC) to verify the genuineness ofexperience certificate submitted by theContractors along with bid.This enables to obviate the physicalverification and speed up tender process. 30
11/19/2011Post on the website, summary every month, ofall the tenders/works contracts of value morethan One Crore Rupees ofEngg./Mech/Elec/S&T/ Medicaldepartment, Rs.50 Lakhs for Commercial Dept.and all the purchases of value more than Rs.20Lakhs done through Stores contract (Rly.Bd;sLr. No.2004/V-1/CVC/1/18 Dt.13-04-2005).- Actual date of start of work.- Actual date of completion.- Reasons for delays if any. 31
Open Tenders Common Irregularities 11/19/2011 Inadequate tender notice Inadequate time for participation Inadequate publicity Late availability of tender documents Tender box not available in advance Deviations in eligibility criteria 32
LIMITED TENDERSCOMMON IRREGULARITIES 11/19/2011 Arbitrary selection of firms. Firms with better experience ignored and firms with dubious credential selected. Inadequate time given for participation in tender. Tender notice not sent to all the firms. Bogus firms selected to inflate the number. Rates can be reasonably higher since the 33 competition is restricted.
SINGLE TENDERCOMMON IRREGULARITIES 11/19/2011 Projecting undue/artificial urgency Selecting unsuitable tenderer based on exaggerated credential ignoring his past failures. Accepting exorbitant rates on the grounds of urgency then merrily giving extensions with token penalty or without penalty. 34
IRREGULARITIES IN EXECUTION OF CONTRACT Failure to incorporate accepted tender 11/19/2011 conditions in contract agreement. Introduction of conditions having financial implications. Change in specifications during execution. Altering the location or nature of work giving undue advantage to the tenderer. 35 (Contd.)
IRREGULARITIES IN EXECUTION OF CONTRACT Unreasonable variations in terms of quantity. 11/19/2011 Introduction of new non-schedule items. Acceptance of material of inferior brand than specified in contract agreement. Acceptance of material after date of expiry. Acceptance of under specification supply. Accepting material without inspection certificate. Accepting material without delivery challans. 36
IRREGULARITIES IN EXECUTION OF CONTRACT 11/19/2011 Waival of inspection or change in inspecting authority. Relaxation of technically rigid requirements. 37
IRREGULARITIES IN CONTRACTUAL PAYMENTS Temporary overpayment in running 11/19/2011 bills. Payment in anticipation of work to be done or supply to be made. Payment for the services not rendered. Inflated measurements. Multiple measurements. 38 Final over payment.
RECORDING OF WORK IN (MB) As per Para No.1313 of Engineering Code payments for all work 11/19/2011 done otherwise than by departmental labour and for all supplies are made only on the basis of measurements recorded in Measurement Books (Form E.1313). Supervisor in charge of the work has to record measurements in the MB as per rules contained in relevant Paras of Engineering Code. 39
TEST CHECK MEASUREMENTS BY NEXT HIGHER AUTHORITY Measurements recorded by an authority 11/19/2011 should invariably be test checked by the next higher authority. Such test checks of the measurements by the next higher authority as per the prescribed scales is necessary to safe guard against any mistakes and inaccuracies and which may be caused unintentionally and inadvertently (Rly.Bd’s Lr.Dt. 27-10-2002). 10% test check for works costing up to Rs. 25,000/- each and 20% for works costing above Rs.25,000/- each is necessary by 40 Asstt/Divnl. Officer.
DO’S (GENERAL) Keep a good image before the public/staff by 11/19/2011 being honest, impartial and just. Always be punctual in attendance. Be conversant with the current rules and regulations before taking any decision. Be conversant with the relevant clauses of the Conduct Rules and ensure that these Rules are not infringed. Use your discretion properly to avoid any miscarriage of justice. 41
DO’S (GENERAL) Be dispassionate while taking decisions so that undue favour accrues to anyone. 11/19/2011 While using staff cars ensure personally that the journey if performed for private purposes, is indicated so in the ‘remarks’ column of the Register and also indicating whether on duty/leave. While occupying Rest houses, ensure filing up the Register and also indicating whether on duty/leave. Maintain proper record of C.L/LAP availed and 42 ensure that it is properly debited to your account.
DONT’S (GENERAL) Do not delay files/papers put up to you. 11/19/2011 Do not forget to put a date under your signature. Absence of date may give rise to doubt about your motives in certain situations. Do not misuse staff cars/vehicles, railway labour, railway materials, catering etc. Do not misuse Duty passes for journeys performed, which are not for official work or for persons not entitled for such travel. 43
DONT’S (GENERAL) Do not sit on the Selection Board before whom 11/19/2011 any relative of yours is appearing for selection. Do not take part in the Tender Committee meetings if any of your relative is one of the tenders. Avoid sanctioning a privilege to yourself even if it is within your own competence. Let such sanction be accorded by your superior. 44
OPENING OF TENDERS Opened at the specified time, date and place 11/19/2011 by an officer nominated in the presence of A/C rep & authorised reps of tenderers. Seal of the Tender Box to be checked Tenders should be serially numbered Initials on cover page and all other loose sheets attached by both executive & A/C rep. Rates quoted should be circled. 45
OPENING OF TENDERS (CONTD…) Corrections, over writings & omissions to be numbered and 11/19/2011 written on each page and attested with date. Check completeness of tender form (for tampering etc.) downloaded from internet Name of the tenderers and rates quoted by each tenderer should be read out and entered in the tender register in WORDS and initialed by both reps. No clarifications to be solicited from tenderers Samples, if any to be initialed Any Blank Column shall be struck off by the tender clerk 46
OPENING OF TENDERS (CONTD…) 11/19/2011 Delayed tenders to be marked so and opened in the same manner. LATE tenders to be marked so and opened if received during opening session. Otherwise, to be opened by the Executive Both the Accounts and Executive witnessing officials are INDIVIDUALLY responsible for following the procedure laid down for tender opening. 47
COMPARATIVE STATEMENTTen Name of Face Schedule - A Schedule -B Tot EMD Merit 11/19/2011SNo the Value of qtd Deta Order Tenderer Tender in Val Val val ils No. Rate Rate Rs. qtd in qtd in Rs. Rs. Special Conditions having financial implications quoted by the tenderer if any: Remarks if any: Signature of the Tender Clerk Signature of the Departmental Officer Name Name Designation Designation Signature of Section Officer Signature of Accounts Officer Name Name 48 Designation Designation
BRIEFING NOTE Briefing Note shall include - 11/19/2011 Details of offers received Period of validity of offers EMD details of each tenderer Last accepted rates for similar type of works Financial implications on the special conditions Remarks on special conditions quoted by the tenderer, if any Credentials of the tenderer Other certificates/documents submitted by the tenderer Estimated provision for the work etc. If any tender is BLACK LISTED, that should be brought out. Details of the contracts of the tenderer during the last 3 years and current year should be brought out 49
TENDER NOTICE Tender Notice shall be issued atleast 30 days in 11/19/2011 advance from the date of tender opening In case of urgency – 21 days with prior finance concurrence and approval of DRM Issue of tender schedules – immediately after tender notice With the approval of tender calling authority – atleast 15 days prior to the date of tender opening Date on which the tender documents will be made available on the website / in the office shall be clearly broughout in the Tender Notice Eligibility criteria and similar nature of works should be specifically mentioned in Tender Notice and in the tender documents for OT above Rs. 50 lakhs 50
ELIGIBILITY CRITERIA As per Sudhir Chandra Committee Report – Solvency Certificate from MRO or Nationalised/ Scheduled 11/19/2011 Banks for 40% of the tender value for works more than Rs. 1 cr Should have completed a similar nature of single work for a value of 35% of tender value Turnover to the tune of 150% of tender value Similar nature of works As per RB Lr No.94/CE-1/CT/4 dt 23.11.06 – PHOD of the Dept concerned shall issue guidelines Finance concurrence and approval of Tender Accepting Authority is required for incorporation of similar nature of works other than those circulated by PHOD Similar nature of work depends on the main element of the tender and shall be mentioned in NIT & Tender documents Clubbing of dissimilar nature of works shall be avoided. If unavoidable, Eligibility criteria shall be indicated in NIT & TS after taking finance concurrence & approval of Tender Accepting Authority 51
LATEST GUIDELINES ON TENDERS 11/19/2011 SD shall be 5% of the contract value and shall be recovered from runnng bills only @ 10%. BG, FDRs etc are not to be considered PG shall be in the form of irrevocable BG issued by nationalised or scheduled bank – 5% of the contract value. FDR can also be accepted. PG shall be furnished by the successful contractor within 30 days from the date of issue of acceptance letter & before the signing of the contract and valid upto expiry of the maintenance period Clause on Conservancy Charges 20% Limitation clause on claims amount (for referring to arbitration) should be kept in BOLD letters. 52
PERFORMANCE GUARANTEE- P G 11/19/2011 shall be submitted by the Contractor within 30 days from LOA (Letter of Acceptance). Extension can be given up to 60 days from LOA by the Authority who is competent to sign the Contract Agreement. But 15% P.A penal interest to be charged for beyond 30 dyas. Failed to submit the P G within 60 days from LOA, Contract shall be terminated duly forfeiting the EMD and other dues if any payable against the Contract. The failed contractor will be debarred from participating in the re tender for that work. No Risk and Cost 53 Tenders
BANK GUARANTEE – CHECK LIST 11/19/2011 PG shall be in the form of irrevocable BG issued by nationalised or scheduled bank – 5% of the contract value. FDR can also be accepted. Bank Guarantee compared scrupulously with the standard pro forma given by Railway Board Should be issued by Scheduled Bank only Is executed on stamp paper of proper value ( In AP- Rs.100) 54
CONSIDERATION OF TENDER BY TC 11/19/2011 Sanction of estimate Procedure of invitation and opening Validity of tender Eligibility of tenderers Technical credentials Financial capability Manpower availability Workload – Details of Assets Litigation History Special conditions by tenderers Reasonableness of rates 55
REASONABLENESS OF RATES 11/19/2011 Average of recent accepted rates Market conditions Quantum of work Site conditions Nature of work Period of completion Idle capacity of contractors Law & Order situation Competition Timing of tender 56
RECOMMENDATIONS OF TC Acceptance (unconditional or conditional) 11/19/2011 Negotiations Not as a rule only when substantial financial gains are expected With lowest tenderer only Within period of validity Only with the authorised person Discharge Ring formation Insufficient response Exceptional high rates Special conditions Unacceptable tender documents Major modifications proposed 57
RECOMMENDATIONS OF TC All pages and correction to be signed by all 11/19/2011 members Dissent should be within the minutes No recording of notes or cross notes on file Avoid subordinate staff Retendering if L1 withdraws before tender finalisation (CVC guidelines) Counter Offers In case of R&C Tenders Opportunity for defaulting contractor Tenability of R&C Tender 58
ACCEPTANCE OF TENDER 11/19/2011 AA has full powers to accept, modify or reject the recommendations of TC Normally case not to be sent back to TC for reconsideration AA should record reasons if recommendations are not accepeted Acceptance shall be recorded on the body of the TC minutes itself 59
TENDERS AND CONTRACTS 11/19/2011 A VIGILANCE PERSPECTIVE 62
ANALYTICAL STUDY OF VIGILANCE CASES PERCENTAGE VIGILANCE CASES 11/19/2011 ASPECT WISE Award of Tenders & Contracts (34%) Award of Tenders & Others Contracts Selections, 32% 34% Appointments & Promotions (17%) Purchases Purchases (17%) Selections, 17% Appointments& Others (32%) Promotions 17% 63
BASIC ISSUES IN A TENDER 11/19/2011 Whether the work was necessary? Whether it was essential to get the work through contractual agency? In other words whether the work could have been done within existing resources? Favouritism High Rates – or combination of both. 64
COMMON ALLEGATIONS IN TENDERS AND CONTRACTS 11/19/2011Favoritism i.e. Award of contract to favoured firm bypassing more deserving lowertenderer/s on flimsy groundsAward of contract at exorbitant ratesExecution of Substandard workAcceptance of Substandard SuppliesOverpayment / Payment of work not doneFailure to Carryout out Quality CheckMisappropriation of material by contractor in connivance with officials 65
TYPE OF TENDERS AND THEIRCOMMON IRREGULARITIES1. OPEN TENDERS 11/19/2011 Most Widely Publicized in prescribed form Any individual or firm can participate in the Open Tender Basic Requirement - Free and Fair Competition Tender should Normally be awarded to Lowest Suitable Tenderer 66
COMMON IRREGULARITIES (OPEN TENDER) 11/19/2011 Inadequate Notice Inadequate Time available for participation Inadequate Publicity Late availability of Tender Form, Drawing etc. Tender Box not available in advance Issue of tender form denied on the pretext of non fulfillment of eligibility criteria 67
2. LIMITED TENDER Tender Notice issued to selected firms 11/19/2011 Firms short listed in advance, based on past experience, expertise, and specialization List of selected firms require finance concurrence and competent authoritys approval Proof of Service necessary 68
COMMON IRREGULARITIES(LIMITED TENDER) 11/19/2011 Arbitrary selection of firms Firms with better experience ignored and firms with dubious credential selected Inadequate time given for participation in tender Tender Notice not sent to all the firms Bogus firms selected to inflate the number Rates becomes very important as the competition has been restricted 69
3. SINGLE TENDER Tender is invited from single pre- selected bidder of 11/19/2011 proven capacity Used in emergencies and exceptional cases Where other tender routes can not be followed due to exigencies of given situation When item is propriety item or only one firm is capable of doing the work 70
COMMON IRREGULARITIES(SINGLE TENDER) 11/19/2011 Projecting undue/ artificial urgency Selecting unsuitable tenderer based on exaggerated credentials, ignoring his past failures Accepting exorbitant rates on the grounds of urgency then merrily giving extensions with token penalty or without penalty 71
IRREGULARITIES IN GENERAL Twisting, Suppression, exaggeration, Manipulation, an 11/19/2011 d Half truth by TC to 1. Depict better placed bidder as unsuitable or less suitable 2. Exaggerating track record of favourite bidder 3. Suppression/ down playing his past failures 4. Exaggerating past failures of his main rival 72 Contd.
IRREGULARITIES IN GENERAL 5. Ignoring/Suppressing otherwise satisfactory credentials of main rival 11/19/2011 6. Projecting the lowest rates of main rival as ‘unworkable’ on the basis of exaggerated estimated cost 7. Projecting undue/ artificial urgency and than bypassing lowest offer on the ground that agency has some other works on hand 8. Manipulating technical aspect to reject inconvenient bids on artificial grounds. 73 Contd.
IRREGULARITIES IN GENERAL9. Considering tender on extraneous conditions not included in the tender 11/19/201110.Falsely Certifying that the quality of product/ material offered by favourite firm as okay vis-a-vis specifications11.Deliberately painting the quality of product offered by the better placed bidder as unsuitable12.Exaggerating capacity/ resources of favourite contractor and downplaying that of his rival (lower bidders) 74
APPOINTMENT OF CONSULTANT Consultant appointed or Consultancy contract awarded when absolutely essential. 11/19/2011 Awarding consultancy contract in transparent and fair manner. The consultants role should be well defined as well as payment conditions. No change of payment conditions after award of contract to the disadvantage to Railway. The payment made to consultant should be commensurate with the work done by them. 75
ELIGIBILITY CRITERIA Eligibility criteria for tendereres is provided in some of the tender to have experienced and resourceful contractors for timely and proper execution of works. 11/19/2011 It is observed that at times this eligibility criteria is loosely and selectively applied in various tenders to favour particular firm. It is expected that eligibility criteria is applied in true spirit and uniformly keeping basic objective in mind. It should not to be used as a tool to eliminate unfavourable lower bidders. 76
RING FORMATION Ring/ Cartel formation among the bidders leads to elimination of competition and award of contract at exorbitant rates. 11/19/2011 At times it is done with active collusion with officers concerned. The ring formation becomes more important in case of limited tenders thus an attempt should be made to identify sister concerns. In case of suspected ring formation with high rates, tender cancellation is advisable 77
AWARD OF TENDER AT EXORBITANT RATES Due to high pitching estimates. Tenderers are guided by estimated cost given in NIT and often 11/19/2011 estimated cost are used to assess reasonability of rates. Picking up ‘Comparable rates’ selectively. Preparing rate analysis after the opening of tender to justify the high rates received. Unrealistic short completion period may lead to high rate. 78 Contd.
AWARD OF TENDER AT EXORBITANTRATES 11/19/2011 By assuming unreasonably high rates towards transportation cost, labour cost, local taxes, inflation etc. Modifying description of items to make them Non- Stock items in case Of Stores and Non-Schedule item in case works items leading to purchase/ execution of works at high rate. 79
POINTS TO BE KEPT IN MIND Tender opening register must be maintained in which rates and special conditions quoted by tenderers are 11/19/2011 recorded. This must be signed by tenderers present at the time of opening. Delayed tenders i.e. received between closing of box and opening of tender to be opened by tender opening officials and marked distinctly. 80 Contd.
POINTS TO BE KEPT IN MIND Late tenders i.e. received after opening of tender - to be opened by executive and marked distinctly. 11/19/2011 Under no circumstances no member of TC should refer the case to any officer/staff under him for scrutiny / comments. Contd. 81
POINTS TO BE KEPT IN MIND Rate register should be maintained religiously in which accepted rates are recorded chronologically and any adverse remark regarding their non-comparability should also be recorded. 11/19/2011 The register can be referred to see that the rates LAR taken in briefing note are representative 82
EXECUTION OF CONTRACTFailure to incorporate accepted tender 11/19/2011 conditions in contract agreementIntroduction of condition having financial implicationsChange in specifications during executionAltering the location or nature of work giving undue advantage to tenderer contd. 83
EXECUTION OF CONTRACTUnreasonable Variations in terms of 11/19/2011 Quantity ItemsIntroduction of New Non Schedule ItemsTransportations from much higher lead than intended in tenderAcceptance of material of inferior brand then specified in Contract Agreement 84
OVER PAYMENTTemporary overpayment in Running 11/19/2011 BillsPayment in anticipation of work to be done or supply to madeFinal overpaymentPayment for the services not renderedInflated measurementMultiple measurement 85
EXECUTION OF SUBSTANDARD WORK 11/19/2011Acceptance of under specification work or supplyNot following laid down procedureBy passing certain processesNot conducting requisite testsUse of un passed raw materials 86
LATEST GUIDELINES ON TENDERS No Risk and Cost Tenders 11/19/2011 SD shall be 5% of the contract value and shall be recovered from runnng bills only @ 10%. BG, FDRs etc are not to be considered PG shall be in the form of irrevocable BG issued by nationalised or scheduled bank – 5% of the contract value. FDR can also be accepted. PG shall be furnished by the successful contractor within 15 days from the date of issue of acceptance letter & before the signing of the contract and valid upto expiry of the maintenance period Clause on Conservancy Charges 20% Limitation clause on claims amount (for referring to arbitration) should be kept in BOLD letters. 88