The document discusses outsourcing of civil engineering maintenance work. It defines outsourcing and describes how comprehensive outsourcing of all maintenance services under one contract is being implemented for a residential campus. Only 2 bidders were technically qualified and performance has been found to be better with improved quality of service, coordination among disciplines and customer satisfaction. Issues related to workers and supervisors still need resolution.

1. OUTSOURCING IN CIVIL
ENGINEERING
MAINTENANCE WORK
DR K M Soni, Chief Engineer, WZ-I, Central
Public Works Department, Mumbai

2. DEFINITION OF
OUTSOURCING
 OUTSOURCING IS AN ARRANGEMENT IN WHICH
ONE COMPANY PROVIDES SERVICES FOR
ANOTHER COMPANY THAT COULD ALSO BE OR
USUALLY HAVE BEEN PROVIDED IN-HOUSE.
 THE CONTRACTING OR SUBCONTRACTING OF
NON CORE ACTIVITIES TO FREE UP CASH,
PERSONNEL, TIME, AND FACILITIES FOR
ACTIVITIES IN WHICH A COMPANY HOLDS
COMPETITIVE ADVANTAGE .
 OUTSOURCING IS ANY TASK, OPERATION, JOB
OR PROCESS THAT COULD BE PERFORMED BY
EMPLOYEES WITHIN AN ORGANIZATION, BUT IS
INSTEAD CONTRACTED TO A THIRD PARTY FOR
A SIGNIFICANT PERIOD OF TIME.

3.  TO PURCHASE (GOODS) OR SUBCONTRA
CT
(SERVICES) FROM AN OUTSIDE SUPPLIER
OR SOURCE.
 TO CONTRACT OUT JOBS, SERVICES, ET
C.
 OUTSOURCING IS THE ACT OF
TRANSFERRING SOME OF AN
ORGANIZATION'S RECURRING INTERNAL
ACTIVITIES AND DECISION RIGHTS TO
OUTSIDE PROVIDERS.

4. OUTSOURCING
 IN THE PRESENT CONTEXT, OUTSOURCING
IS CONTRACTING ALL THE SERVICES TO BE
CARRIED OUT RELATED TO MAINTENANCE
SERVICES IN A RESIDENTIAL CAMPUS.
 BASICALLY IT IS COMPRHENSIVE
MAINTENANCE TO BE CARRIED OUT
INCLUDING REGISTERING, MONITORING,
SUPERVISION AND ATTENDING THE
COMPLAINTS.
 OUTSOURCING IN THE PRESENT CASE IS
DIFFERENT IN TERMS THAT IT STILL
REMAINS THE CORE ACTIVITY OF THE
ORGANISATION.

5.  IT TAKES TIME TO IMPLEMENT AN
OUTSOURCING INITIATIVE AND LONGER
TO DO IT RIGHT
(www.123rf.com)

6. OBJECTIVE OF
OUTSOURCING
 RECRUITMENT
 TRAINING
 LEGAL OUTSOURCING
 IT OUTSOURCING
 WEB DESIGNING
 LOGISTICS
 MANUFACTURING
 TECHNICAL SUPPORT
 BUT IN THE PRESENT CASE, OUTSOURCING
IS RESORTED TO CIVIL ENGINEERING
MAINTENANCE.

7. WHY OUTSOURCING?
 LACK OF EXPERTISE
 COST EFFECTIVENESS
 CONCENTRATING CRUCIAL BUSINESS
 IN THE PRESENT CASE, OUTSOURCING IS
RESORTED FDUE TO NON AVAILABILITY
OF INHOUSE STAFF, CUSTOMER
SATISFACTION AND BETTER CO-
ORDINATION AMONG DIFFERENT
DISCIPLINES.

8. ADVANTAGES
 SWIFTNESS AND EXPERTISE
 CONCENTRATING CORE PROCESS
 RISK SHARING
 REDUCED OPERATIONAL AND
RECRUITMENT COST
 EFFICIENCY
 IN THE PRESENT CASE, OUTSOURCING IS
BEING RESORTED FOR SWIFTNESS,
REDUCED OPERATIONAL COST AND
EFFICIENCY.

9. DISADVANTAGES
 RISK OF EXPOSING DATA/INFORMATION
 SUB STANDARD QUALITY
 LACK OF FOCUS ON CUSTOMER
 LOSS OF TALENT
 DEPENDENCY
 LACK OF INDEPTH KNOWLEDGE
 LACK OF SKILL DEVELOPMENT WITHIN
ORGANISATION
 LEGAL DISPUTES

10.  INSOURCING
 CO-SOURCING
 CONTRACT
 COMPREHENSIVE OUTSOURCING

11. ACTIVITIES OF CENTRAL
PUBLIC WORKS DEPARTMENT
 CONSTRUCTION
 MAINTENANCE (CIVIL+ ELECTRICAL &
MECHANICAL +HORTICULTURE
SERVICES+ HOUSEKEEPING)
 DAY TO DAY
 ARMO
 SPECIAL REPAIR
 ADDITION AND
ALTERATION

12. MAINTENANCE
 DAY TO DAY
MAINTENANCE
 DEPARTMENTAL
WORKERS
(INSOURCING)
 COSOURCING
 CONTRACTING
 OUTSOURCING
 ARMO, SPECIAL
REPAIRS AND A/A
WORKS

13. WORKMAN
 "WORKMAN" MEANS ANY PERSON
EMPLOYED IN OR IN CONNECTION WITH
THE WORK OF ANY ESTABLISHMENT TO
DO ANY SKILLED, SEMISKILLED OR UN-
SKILLED MANUAL, SUPERVISORY,
TECHNICAL OR CLERICAL WORK FOR
HIRE OR REWARD, WHETHER THE TERMS
OF EMPLOYMENT BE EXPRESS OR
IMPLIED

14.  THE SUPREME COURT OF INDIA IN THE CASE
OF STANDARD VACUUM REFINERY COMPANY
VS. THEIR WORKMEN OBSERVED THAT
CONTRACT LABOUR SHOULD NOT BE
EMPLOYED WHERE: —
(A) THE WORK IS PERENNIAL AND MUST GO
ON FROM DAY TO DAY;
(B) THE WORK IS INCIDENTAL TO AND
NECESSARY FOR THE WORK OF THE
FACTORY;
(C) THE WORK IS SUFFICIENT TO EMPLOY
CONSIDERABLE NUMBER OF WHOLE TIME
WORKMEN; AND
(D) THE WORK IS BEING DONE IN MOST
CONCERNS THROUGH REGULAR WORKMEN.

15. ISSUES OF OUTSOURCING
MAINTENANCE
 TO OUTSOURCE OR NOT TO OUTSOURCE – STRATEGIC
DECISION
 HOW MUCH TO OUTSOURCE ?
 WHERE TO OUTSOURCE ?
 DRAWING SPECIFICATIONS OF THE WORK/REQUIREMENTS ?
 DRAWING ADMINISTRATIVE, PAYMENT AND COMPENSATION
STRUCTURE ?
 DRAWING CONDITIONS NOT VIOLATING LAWS AND ACTS ?
 DRAWING SPECIFICATIONS AND REQUIREMENTS OF
EQUIPMENTS.
 CONDITIONS OF TRANSITION AND HANDING OVER OF
ASSETS.
 FRAMING CONTRACT DOCUMENT INCLUDING THE PERIOD
OF OUTSOURCING CONTRACT.
 DRAWING ELIGIBILTY CRITERIA FOR SELECTION OF
APPROPRIATE AGENCY.
 ISSUES RELATED TO UNIONS AND ASSOCIATIONS.

16. OUTSOURCING
PROCESS/PLANNING
INITIATIVES
PRESENT CONTRACT
INCLUDES;
 DAY TO DAY MAINTENANCE
 ARMO
 SPECIAL REPAIR WORKS
 OPERATION OF E&M
SERVICES
 HOUSEKEEPING
 MANAGING SERVICE
CENTRE

17. DETAILS OF SERVICES
 Civil engineering repairs of plumbing, carpentry,
masonry work etc.
 Electrical engineering repairs like repair of wiring,
switches etc.
 Horticulture operations
 Caretaking operations like sweeping in external
areas and common areas
 Lift operations
 Water supply and pump operations
 Fire fighting and fire protection equipment
maintenance
 Watch and ward of common services and vacant
quarters
 Operations of service centers which include
receiving the complaints, their disposal and

18. SALIENT FEATURES OF THE
CONTRACT
 The contract includes the day to day
maintenance and repair, annual repair,
special repair and up-gradation of
Hyderabad estate campus having flats of
type IV-32, type IV special- 70, type V-160
Nos., single suit with kitchen-13 and double
suit with kitchen-76 Nos. with 14 quarters
for departmental maintenance staff.

20. VENDOR SELECTION
CRITERIA
 Satisfactorily completed three similar
works each of value not less than 50% of
estimated cost (present case Rs. 8.35
crore) or two similar works each of value
not less than 60% of estimated cost or one
similar work of value not less than 80% of
estimated cost in last 7 years and one
work of any nature (either part of given
above or separate one) costing not less
than 50% of the estimated cost

21. VENDOR SELECTION
CRITERIA• Should have had average annual financial
turnover of 100% of the estimated cost of
work for one year maintenance on
construction / maintenance works during
the last three financial years ending 31st
March 2014.
• Should not have incurred any loss in more
than two years during the last five years
ending 31st March 2014.
• Should have a solvency of 40%of the
estimated cost for one year from any

22. Bidding Capacity = A*N*2-B
Where A = Maximum value of works
executed in any one year during the last
5 years,
N = Number of years prescribed for
completion of work for which bids has
been invited (2 in the present case study)
and
B = Value of existing commitments and
ongoing works to be completed during
the period of completion of work for
which bids have been invited. Bidding

23. MARKS ALLOCATED
 (a) Financial strength: Maximum 20 Marks (16 for
financial turn over and 4 for solvency certificate),
 (b) Experience in similar work during last seven
years: Maximum 20 Marks,
 (c) Performance on works (time over run):
Maximum 20 Marks, (d) Performance on works
(Quality): Maximum 15 Marks,
 (e) Personnel and Establishment: Maximum 10
Marks,
 (f) Plant and equipment: Maximum 15 Marks.
Total: 100 Marks
 To become eligible for short listing, the bidder
must secure at least fifty percent marks in each
criterion and sixty percent marks in aggregate.

24. ELIGIBILITY CRITERIA
 IF THE BIDDER HIMSELF IS NOT
REGISTERED IN ANY CLASS AND
CATEGORY IN CPWD FOR THE
FOLLOWING WORKS, HE HAS TO
ASSOCIATE APPROVED AND ELIGIBLE
CONTRACTOR OF CPWD IN THE
CATEGORIES LISTED BELOW FOR THE
EXECUTION OF RESPECTIVE WORKS.
 CIVIL
 INTERNAL AND EXTERNAL ELECTRICAL
INSTALLATION
 HORTICULTURE

25. ELIGIBILITY CRITERIA
 FURTHER HE SHALL ASSOCIATE
AGENCIES ENLISTED/ANNUALLY PRE-
QUALIFIED IN CPWD IN APPROPRIATE
CATEGORY/CLASS FOR THE FOLLOWING
WORKS:
 1. D.G. SETS.
 2. FIRE ALARM SYSTEM
 3. FIRE FIGHTING SYSTEM
 COMPREHENSIVE MAINTENANCE OF
LIFT SHALL BE GOT MAINTAINED FROM
RESPECTIVE LIFT MANUFACTURERS
ONLY.

26. PROVISIONS OF MANDATORY
EQUIPMENTS
 CIVIL/ELECTRICAL DEFINED AND INCLUDED IN THE TENDER
DOCUMENTS
 Hopper mixer
 Floor Polishing machines
 Steel scaffolding
 Welding machine
 Tile cutters
 Edge moulding machine
 Aluminium ladder
 Wheel ladder with platform
 Megger
 Earth resistance tester
 Green barber (lawn mower)
 Double bucket trolley
 Trolley mounted Water jet
 Walk behind sweeping machine (mechanical)
 Vacuum cleaners

27. 1. Graduate
Engineer
Civil/Elec. Principal Technical
Representative
1 5
2.
Graduate
Engineer or
Diploma
Engineer
Civil Technical
Representative
1 Nil for
Graduate
Engineer
and 5 Years
for Diploma
Engineer
3. Graduate
Engineer or
Diploma
Engineer
Electrical Technical
Representative
1 Nil for
Graduate
Engineer
and 5 Years
for Diploma
Engineer
4. Hort.

28. Sl. No. Description Recovery for
absence
Per Day
1. Service Engineer Rs. 1000.00 Per visit
2. Enquiry Clerk/Supervisor/Computer Operator Rs. 900.00 Per Day / Person
3. E & M operator Rs. 800.00 Per Day / Person
4. Supervisor Rs. 800.00 Per Day / Person
5. Wireman /Operator /Mechanic Rs. 800.00 Per shift / person
6. Skilled labour (Mason / Carpenter / Plumber etc.) Rs. 800.00 Per Day / Person
7. Operator for Petrol Driven sweeping Machine (skilled) Rs. 800.00 Per Day / Person
8. Operator for water Jet machine (skilled) Rs. 800.00 Per Day / Person
9. Operator for Vacuum cleaner (skilled) Rs. 800.00 Per Day / Person
10. Unskilled labour Rs. 700.00 Per Day / Person
11. Khalasi Rs. 700.00 Per shift / person
RECOVERIES

29. OTHER CRITERIA
SPECIFIED
 SAFETY CRITERION
 MATERIAL SPECIFICATIONS
 TIMINGS FOR WORKERS AND SERVICE
CENTRES
 EMERGENCY REQUIREMENTS
 TESTING CRITERION OF MATERIALS
 DEPLOYMENT OF MINIMUM WORKERS
 LABOUR WELFARE MEASURES
 COMPLAINTS CLASSIFICATION
 NO DELAY
 MINOR
 MAJOR

30. BIDS RECEIVED
 ONLY 2 Nos. WERE TECHNICALLY
QUALIFIED
 COMPREHENSIVE OUTSOURCING
IMPLEMENTD
 PERFORMANCE FOUND TO BE BETTER

31. ISSUES NEED TO BE
RESOLVED
 WORKERS ISSUES
 SUPERVISORS ISSUES
 CO-ORDINATION ISSUES
 ENGINEERS ISSUES

32. MAINTENANCE OUTSOURCING
MODELS
 Providing services of workers departmentally
or partially on contracts i.e. in-house work or
partial outsourcing (COSOURCING).
 Individual contracts for each work i.e.
individual work outsourcing (CONTRACT).
 Individual contracts for all the works of one
specialized field such as civil, electrical and
horticulture i.e. specialized fields outsourcing
(SPECIALISED FIELD OUTSOURCING).
 Comprehensive maintenance in which all the
works are carried out under one contract i.e.
comprehensive outsourcing (OUTSOURCING)

35. ADVANTAGES OF
OUTSOURCING
1. INCREASED CUSTOMER
SATISFACTION
2. BETTER CO-ORDINATION AMONG
VARIOUS DISCIPLINES
3. IMPROVE QUALITY OF SERVICE
4. BETTER MANAGEMENT
5. COST COMPARABLE

36. CONCLUSIONS
 AVAILABILITY OF LIMITED AGENCIES IN THIS
FIELD
 LIMITED EXPERIENCE OF COMPREHENSIVE
MAINTENANCE IN CIVIL ENGINEERING
WORKS
 INSOURCING VERY COSTLY
 COST IS COMPARABLE
 CO-SOURCING NOT VERY SUCCESSFUL
 COMPREHENSIVE OUTSOURCING PROVIDES
BETTER CUSTOMER SATISFACTION AND
EFFICIENT SERVICES