This presentation discusses vigilance awareness and corruption prevention. It begins by quoting Lord Buddha about how small acts can have large consequences. It then discusses transparency international's corruption perceptions index, which measures corruption in 178 countries. India ranks low, with estimated 26,728 crores rupees exchanged as bribes annually. The presentation outlines India's vigilance organizations and common types of vigilance cases. It emphasizes the importance of preventive vigilance over punitive actions. Key recommendations include e-procurement, e-payments, ensuring tender transparency, and periodic staff rotations in sensitive roles.

1. By M.Nageswara Rao, SSO(A),
Secunderabad
VIGILANCE AWARENESS WEEK
31st Oct to 5th Nov, 2011
Presentation on Vigilance awareness
& Works matters
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2. “Do not overlook negative
actions merely because they
are small ; however small a
spark may be, it can burn
down a haystack as big as a
mountain”
Lord Buddha
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3. T I – TRANSAPARENCY INTERNATIONAL
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4. C P I - CORRUPTION PERCEPTIONS INDEX
The Transparency
International –
- the global coalition
against Corruption
- measures CPI
Surveys 178
countries in
2010 year.
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5. RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010
YEAR
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6. RESULTS OF TRANSPARENCY INTERNATIONAL IN 2010
YEAR
0
1
2
3
4
5
6
7
8
9
10 9.3 9.3 9.3
1.4 1.4
1.1
3.3
Corruption Perception Index on a scale from
10 to 0
Corruption Perception
Index on a scale from
10 to 0
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7. VIGILANCE ORGANISATION IN INDIA
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
procedure orders for their own Departments.
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8. VIGILANCE – RAILWAY BOARD
LEVEL
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9. Scenario of Corruption in India – an
overview
It is estimated that Rs.26,728 Crores exchange
hands in the form of bribe in India
Governments pay 20% to 100% more for their
goods and services.
UN report says that if the corruption level in India is
reduced to the level of Scandinavian countries,
investment in the country would increase annually
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10. ANALYTICAL STUDY OF VIGILANCE CASES
PERCENTAGE VIGILANCE CASES
ASPECT WISE
Selections,
Appointments&
Promotions
17%
Purchases
17%
Others
32%
Aw ard of Tenders &
Contracts
34%
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11. Vigilance Angle : What is it ?
Demanding and/or
accepting gratification
other than legal
remuneration.
Obtaining anything of
value without
consideration or with
inadequate
consideration from
those with whom
official dealings are
likely, either directly
or by exerting
influence.
Obtaining for self or
for any other person,
anything of value or
pecuniary advantage
by corrupt or illegal
means or by abusing
the position as a
public servant.
•(cont’d)
Disproportionate
Assets vis-à-vis
known sources of
Income
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12. Vigilance Angle (cont’d)
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
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13. No action, as a general rule, is taken on Anonymous
Complaints (i.e. complaints that do not bear name and
address of the complainant) and Pseudonymous
Complaints (i.e. complaints which do not bear the
signature of the complainant or which on verification is
not owned by the person in whose name it is made).
However, verifiable facts alleged in such complaints
may be looked into with prior concurrence of CVC.
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14. VIGILANCE AS A BITTER
PILL
- Neither liked by honest officer nor a
dishonest 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
organisation.
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15. Objective of Vigilance
Prevention
of
corruption.
Promotion of
Integrity.
Promotion of Vigilance
consciousness,
amongst Railway men.
Effecting system improvement.
Advise suitable administrative or
disciplinary action.
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16. Vigilance is
Not a stand
alone activity.
A part of the
overall risk
management
strategy of an
organisation.
-to prevent
leakages which
adversely affect
productivity and
profitability.
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17. Vigilance is
It is not the purpose
of Vigilance to wait
for lapses to be
committed and then
try to conduct post
mortem.
Preventive
intelligence is more
important than
punitive(penalising)
vigilance
-in short, preventive
vigilance measures
are more important
like old adage
“PREVENTION IS
BETTER THAN
CURE”
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18. Cannons of Standards of
Financial propriety(Para
116 of I.Rly.Finance Code
vol.I)
Its like Bhagavdgita for all
preventive checks.
1. The Expenditure
should not be prima facie
be more than the
occasion demands
2. Every Govt. Servant
should exercise the same
VIGILANCE in respect of
expenditure incurred from
public money as a person
of a ordinary prudence
would exercise in respect
of the expenditure of his
own money.
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19. 3. No authority should exercise
its powers of sanctioning
expenditure to pass an order,
which will directly or indirectly
to its own advantage.
4. Public moneys should not be
utilised for the benefit of a
particular person or section of
the community
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.
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20. DO’s
1. Identify the purpose & plan in advance.
2. Clubbing the similar requirements from all
units.
3. Description of item should be clear and
complete with I.S.specification/drawing if any.
4. Specification should not be prepared in
such a way that specification meets the
requirements of a single product/specific
make.
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21. DO’s
5. Sample clause if any should be only for
ascertaining ‘TOUCH, FEEL & FINISH’ of the
indented item, but not for its quality.
6.Quantity, Unit & Rate – should be quote in
figures as well as words
7.Officer signing indent should clearly
mention their name and designation.
8.Vetting is required for indents valuing
Rs.one lakh and more(for safety items-
Rs.Two lakhs and more)
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22. DO’s
9. If the demand of the item is recurring,
convert the same as Stock item.
10. Essentiality certificate should be
certified by the Indenting Officer.
11. Ensure Funds availability and
ascertain correct head of account to be
debited before placing Indents.
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23. 12. The description of the item should
normally be arranged in Order.
A. Basic commodity
B.Variance in kind or use.
C. Composition/size/color/shape
D.Specification/drawing No.
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24. Should be invariably on a
Public Tender basis.
Tenders should be both
for technical and financial
bids. Technical bids
should be scrutinized
before financial bids are
opened.
List of suppliers should be
reviewed periodically.
Delivery samples should
be got checked with basic
samples.
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25. Periodical rotation
of Officers/staff in
sensitive posts.
Review of
Immovable property
returns submitted
by Officers/Staff.
Proper
implementation of
DA Rules to weed
out corrupt officers.
Institution of
effective grievance
procedure enquiry.
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26. TENDERS AND CONTRACTS
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27. 1. E-Procurement
– for efficiency in the procurement of goods, works
and services.
-- brings in greater transparency, thus reducing
opportunities for corruption.
-- publish their tenders and complete bid
documents along with the application forms on
the Website itself duly curbing mal-practices
prevailing in various govt offices where
competition is sought to be restricted.
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28. 2.
2. E-Payment
- Here again bring economy and efficiency and at
the same time reducing corruption.
- Leveraging technological advances in the
banking sector for the benefit of government
organisations like Railways, Defence etc.
- Reducing transaction costs involved in making
payments by way of cheques and sending the
same through courier.
- Also curbs corruption which accompanies
handing over cheques to contractors, suppliers
etc.
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29. 3. Extensive use of Website & Internet
enables stakeholders
- To verify the outstanding bills position by
Contractors, suppliers.
- To track down their PF application online
by employees
- Reducing enquiries thus enables staff
more productive.
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30. 3. Extensive use of Website & Internet
enables stakeholders
Experience certificate should be posted on
SC Railway Website by the Issuing
Authorities to enable Tender Committee
(TC) to verify the genuineness of
experience certificate submitted by the
Contractors along with bid.
This enables to obviate the physical
verification and speed up tender process.
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31. Post on the website, summary every month, of
all the tenders/works contracts of value more
than One Crore Rupees of
Engg./Mech/Elec/S&T/ Medical department,
Rs.50 Lakhs for Commercial Dept. and all the
purchases of value more than Rs.20 Lakhs
done through Stores contract (Rly.Bd;s Lr.
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.
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32. Open Tenders
Common Irregularities
 Inadequate tender notice
 Inadequate time for participation
 Inadequate publicity
 Late availability of tender
documents
 Tender box not available in advance
 Deviations in eligibility criteria
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33. LIMITED TENDERS
COMMON IRREGULARITIES
 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
competition is restricted.
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34. SINGLE TENDER
COMMON IRREGULARITIES
 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.
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35. IRREGULARITIES IN EXECUTION OF CONTRACT
 Failure to incorporate accepted tender
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.
(Contd.)
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36.  Unreasonable variations in terms of quantity.
 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.
IRREGULARITIES IN EXECUTION OF CONTRACT
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37.  Waival of inspection or change in inspecting
authority.
 Relaxation of technically rigid requirements.
IRREGULARITIES IN EXECUTION OF CONTRACT
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38. IRREGULARITIES IN CONTRACTUAL PAYMENTS
 Temporary overpayment in running
bills.
 Payment in anticipation of work to be
done or supply to be made.
 Payment for the services not
rendered.
 Inflated measurements.
 Multiple measurements.
 Final over payment.
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39. RECORDING OF WORK IN (MB)
 As per Para No.1313 of Engineering Code payments for all work
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.
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40. TEST CHECK MEASUREMENTS BY NEXT HIGHER
AUTHORITY
 Measurements recorded by an authority
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
Asstt/Divnl. Officer.
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41. DO’S (GENERAL)
 Keep a good image before the public/staff by
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.
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42. DO’S (GENERAL)
 Be dispassionate while taking decisions so
that undue favour accrues to anyone.
 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
ensure that it is properly debited to your
account.
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43. DONT’S (GENERAL)
 Do not delay files/papers put up to you.
 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.
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44. DONT’S (GENERAL)
 Do not sit on the Selection Board before whom
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.
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45. OPENING OF TENDERS
 Opened at the specified time, date and place
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.
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46. OPENING OF TENDERS (CONTD…)
 Corrections, over writings & omissions to be numbered and
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
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47. OPENING OF TENDERS (CONTD…)
 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.
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48. COMPARATIVE STATEMENT
 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
 Designation Designation
Ten
SNo
Name of
the
Tenderer
Face
Value of
Tender in
Rs.
Schedule - A Schedule -B Tot
qtd
val
EMD
Deta
ils
Merit
Order
No.
Rate
qtd
Val
in
Rs.
Rate
qtd
Val
in
Rs.
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49. BRIEFING NOTE
 Briefing Note shall include -
 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
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50. TENDER NOTICE
 Tender Notice shall be issued atleast 30 days in
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
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51. ELIGIBILITY CRITERIA
 As per Sudhir Chandra Committee Report –
 Solvency Certificate from MRO or Nationalised/ Scheduled
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
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52. LATEST GUIDELINES ON TENDERS
 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.
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53. PERFORMANCE GUARANTEE- P G
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
Tenders
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54. BANK GUARANTEE – CHECK LIST
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)
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55. CONSIDERATION OF TENDER BY TC
 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
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56. REASONABLENESS OF RATES
 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
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57. RECOMMENDATIONS OF TC
 Acceptance (unconditional or conditional)
 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
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58. RECOMMENDATIONS OF TC
 All pages and correction to be signed by all
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
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59. ACCEPTANCE OF TENDER
 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
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60. 7/27/2017
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61. 7/27/2017
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62. TENDERS AND CONTRACTS
A VIGILANCE PERSPECTIVE
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63. ANALYTICAL STUDY OF VIGILANCE CASES
PERCENTAGE VIGILANCE CASES
ASPECT WISE
Selections,
Appointments&
Promotions
17%
Purchases
17%
Others
32%
Award of Tenders &
Contracts
34%
Award of Tenders &
Contracts
Selections,
Appointments &
Promotions
Purchases
Others
(34%)
(17%)
(17%)
(32%)
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64. BASIC ISSUES IN A TENDER
 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.
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65. COMMON ALLEGATIONS IN
TENDERS AND CONTRACTS
Favoritism i.e. Award of contract to favoured firm bypassing more deserving lower
tenderer/s on flimsy grounds
Award of contract at exorbitant rates
Execution of Substandard work
Acceptance of Substandard Supplies
Overpayment / Payment of work not done
Failure to Carryout out Quality Check
Misappropriation of material by contractor in connivance with officials
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66. TYPE OF TENDERS AND THEIR
COMMON IRREGULARITIES
1. OPEN TENDERS
 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
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67. COMMON IRREGULARITIES
(OPEN TENDER)
 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
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68. 2. LIMITED TENDER
 Tender Notice issued to selected firms
 Firms short listed in advance, based on past
experience, expertise, and specialization
 List of selected firms require finance concurrence and
competent authority's approval
 Proof of Service necessary
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69. COMMON IRREGULARITIES
(LIMITED TENDER)
 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
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70. 3. SINGLE TENDER
 Tender is invited from single pre- selected bidder of
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
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71. COMMON IRREGULARITIES
(SINGLE TENDER)
 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
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72. IRREGULARITIES IN GENERAL
 Twisting, Suppression, exaggeration, Manipulation,
and 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
Contd.
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73. IRREGULARITIES IN GENERAL
5. Ignoring/Suppressing otherwise satisfactory credentials of
main rival
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.
Contd.
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74. IRREGULARITIES IN GENERAL
9. Considering tender on extraneous conditions not included in the
tender
10.Falsely Certifying that the quality of product/ material offered
by favourite firm as okay vis-a-vis specifications
11.Deliberately painting the quality of product offered by the
better placed bidder as unsuitable
12.Exaggerating capacity/ resources of favourite contractor and
downplaying that of his rival (lower bidders)
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75. APPOINTMENT OF CONSULTANT
 Consultant appointed or Consultancy contract awarded when
absolutely essential.
 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.
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76. 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.
 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.
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77. RING FORMATION
 Ring/ Cartel formation among the bidders leads to elimination of
competition and award of contract at exorbitant rates.
 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
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78. AWARD OF TENDER AT EXORBITANT RATES
 Due to high pitching estimates.
 Tenderers are guided by estimated cost given in NIT and often
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.
Contd.
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79. AWARD OF TENDER AT EXORBITANT
RATES
 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.
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80. POINTS TO BE KEPT IN MIND
 Tender opening register must be maintained in which
rates and special conditions quoted by tenderers are
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.
Contd.
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81. POINTS TO BE KEPT IN MIND
 Late tenders i.e. received after opening of tender - to be
opened by executive and marked distinctly.
 Under no circumstances no member of TC should refer
the case to any officer/staff under him for scrutiny /
comments.
Contd.
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82. 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.
 The register can be referred to see that the rates LAR taken in
briefing note are representative
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83. EXECUTION OF CONTRACT
Failure to incorporate accepted tender
conditions in contract agreement
Introduction of condition having financial
implications
Change in specifications during execution
Altering the location or nature of work
giving undue advantage to tenderer
contd.
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84. EXECUTION OF CONTRACT
Unreasonable Variations in terms of
 Quantity
 Items
Introduction of New Non Schedule Items
Transportations from much higher lead
than intended in tender
Acceptance of material of inferior brand
then specified in Contract Agreement
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85. OVER PAYMENT
Temporary overpayment in Running
Bills
Payment in anticipation of work to be
done or supply to made
Final overpayment
Payment for the services not rendered
Inflated measurement
Multiple measurement
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86. EXECUTION OF SUBSTANDARD WORK
Acceptance of under specification
work or supply
Not following laid down procedure
By passing certain processes
Not conducting requisite tests
Use of un passed raw materials
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87. 7/27/2017
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88. LATEST GUIDELINES ON TENDERS
No Risk and Cost Tenders
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.
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89. 7/27/2017
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90. THANK YOU
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