MINISTRY OF RURAL DEVELOPMENT

RURAL ROAD MAINTENANCE

TRAINING MODULES
FOR FIELD ENGINEERS

Module-9
CONTRACT MANAGEMENT
 Ministry of Rural Development

RURAL ROAD MAINTENANCE

TRAINING MODULES
FOR FIELD ENGINEERS

Module-9
Contract Management
This training module is produced through a collaborative effort between the
International Labour Organization and the National Rural Road Development Agency
under the technical assistance component of the World Bank supported Rural Roads
Project-II of Pradhan Mantri Gram Sadak Yojana Project (PMGSY).

Contents:
• Common types of road contracts
• Standard Contract Documents
• Procurement of Contracts
• Management of Contracts
• Effective Contract Management

Learning Objective:
At the end of this Module you are expected:
• To have understanding of the procurement procedure of works
• To manage the work contracts more efficiently

Acknowledgement
The following publications were also used as reference materials:
• Managing Maintenance of Rural Roads in India, ILO/NRRDA,
January 2015
9
Foreword
Pradhan Mantri Gram Sadak Yojana (PMGSY), was launched in December,
2000 as a special intervention of the Government of India with the broad
objective of ensuring sustainable poverty reduction. The scheme aims
to provide good quality all-weather single connectivity to every eligible
habitation. Rural roads are a state subject under the Constitution and as
such are the basic responsibility of the states. However under the PMGSY,
the construction of good quality and well-engineered roads are fully funded
by the central government. Maintenance of these roads is the responsibility
of the states. The year 2013 saw the launch of PMGSY-II with the objectives
of consolidating the existing rural road network and upgrading existing rural
roads that provide connectivity to rural growth centres. PMGSY-II envisages
sharing of construction costs between the Centre and the states with
maintenance costs continuing to be funded fully by the states.
Over the last 14 years, the PMGSY has carved out a place for itself as a
programme characterised by creation of good quality assets, effective
management and technical proficiency by the National Rural Road
Development Agency (NRRDA), along with capable state road agencies. For
implementation and operations, the involved agencies have been supported
with detailed documentation in the form of programme guidelines, an
operations manual, standard bidding documents, specifications, a standard
data book, a procurement and contracts management manual and the
Quality Assurance Hand Book with support from the Indian Roads Congress.
These documents have also contributed significantly towards effective
implementation of PMGSY and even for mainstreaming good practices in
other rural roads programmes being executed by the states from their own
resources.
An area of concern has been lack of regular maintenance as per the
“Programme Guidelines”. However, in recent years, there has been increased
awareness and commitment to maintenance by the states. The tempo needs
to be sustained and further accelerated.
Under the technical assistance component of the World Bank supported
Rural Roads Project-II, the International Labour Organization (ILO), in
collaboration with NRRDA has prepared a manual “Managing Maintenance
of Rural Roads in India”. This initiated the execution of maintenance works
and the development of these training modules for engineers and contractors
associated with rural road maintenance works. To strengthen such activities
in the participating states of RRP-II, a series of training of trainers workshops
were arranged at national and state level based on the course material
developed.
The training modules broadly cover the principles for maintenance
management of rural roads, planning and execution of common maintenance
interventions to ensure reliable transport services and safety to users and
the local communities served by the rural roads, and arrangements for
monitoring the performance of contractors engaged for the task.
I would like to acknowledge the support of all those associated with the
development of these training modules, especially the ILO and its technical
assistance team, Mr. Htun Hlaing, Mr. Bjorn Johannessen and the project’s
Rural Roads Maintenance Engineers. I would also place on record the
valuable suggestions of my colleagues Ms. Manju Rajpal, IAS, (ex Director –
RC), Mr. R. Basavaraja, Director NRRDA, Mr. S. S. Bhatia, Deputy Director,
NRRDA, Mr. A. K. Sharma, Consultant World Bank and senior engineers as
well as secretaries from State Governments in bringing the document to its
present shape.
I sincerely believe, the training modules would be found useful for the states
in their efforts to secure adequate maintenance of all rural roads, not merely
the PMGSY roads and improve maintenance practices so that benefits of
access continue to remain available for our rural people on a sustainable
basis.

(Rajesh Bhushan, IAS)

JS (RC) & DG, NRRDA
Ministry of Rural Development
Government of India
October, 2015
9
Introduction to Training Modules
The purpose of this training manual is to provide technical management staff
and contractors with appropriate guidelines for the effective management
of road maintenance works. The training modules are based on the manual
“Managing Maintenance of Rural Roads in India”. These modules broadly
cover the principles for maintenance management of rural roads, planning
and execution of common maintenance interventions to ensure reliable
transport services and safety to users and the local communities served
by the rural roads. The arrangements for monitoring the performance of
contractors engaged for the task are also covered in these modules.
This manual is broken down into the following categories composed of
different modules:
Module 1: INTRODUCTION
Module 2: TECHNICAL CONSIDERATIONS AND IMPLEMENTATION
ARRANGEMENTS
Module 3: FINANCING RURAL ROAD MAINTENANCE
Module 4: PLANNING, INSPECTION, REPORTING AND MONITORING
Module 5: APPROPRIATE SETTING OUT TECHNIQUES
Module 6: HAND TOOLS, EQUIPMENT & CONSTRUCTION MATERIALS
Module 7: ROUTINE MAINTENANCE WORK METHODS
Module 8: OCCUPATIONAL HEALTH & SAFETY, ENVIRONMENTAL
ISSUES AND DECENT WORK
Module 9: CONTRACT MANAGEMENT

The trainer may decide to conduct a full course consisting of all the nine
modules or may selectively conduct specific modules depending on the
needs of the target group.
As a general advice the trainer should:
• Encourage active participation
There is sometimes a tendency of the trainer to act like a teacher in
school and to read or lecture directly from the course material. This
behaviour should be avoided. Trainees remember information better if
they participate actively in discussions and if there is a free exchange of
views and of questions between everyone participating in the course.

INTRODUCTION TO TRAINING MODULES | i

 • Guiding the discussion
There are times during a discussion when everyone wants to speak
at the same time. When such situations arise, the trainer should insist
that the group listen to one person at the time. If one speaker hijacks
the floor too long, the trainer needs to interrupt, pointing out that other
participants may also want to speak.
• Listen attentively
Equal attention should be paid to each speaker. Listen attentively and
let the speaker understand that ideas and opinions expressed are both
interesting and relevant. It is sometimes useful to take a brief note of
participants’ suggestions while they are speaking, noting them down on
a flipchart or blackboard. A summary of these notes may prove useful
for later discussions.
• Emphasise important points
Each time the participants make an important point or expresses an
interesting opinion, the trainer should draw the group’s attention to it by
repeating the idea in simple terms which are understood by the majority
of the trainees.
• Preparing the sessions
When trainees only listen to a description of how a particular job should
be done, they are likely to forget what they heard. If however, they
actually carry out the task concerned, they will remember how to do
it. For this reason, every effort should be made to include as many
practical exercises and demonstrations as possible, be they carried out
on the worksite or in the training room. Practical sessions should always
be carefully planned in advance.
• Recapping
A discussion is more than just a conversation. A subject is discussed
with an aim in mind. It may occasionally be worthwhile recapping the
topic considered and recalling the aim of the discussion by intervening
from time to time to give a brief summary of the main points dealt with
so far.
• Questioning
An important role of the trainer is to ensure that the atmosphere during
training is sufficiently relaxed to allow participants to feel at ease to
speak freely. Questions set by the trainer should not be regarded by
the trainees as tests. Often there is no strict “right or wrong” answer to
a question, except for mathematics. Questions should simply give your
trainees the opportunity to put forward their individual points of view.

ii | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
Table of Contents
9.  CONTRACT MANAGEMENT 1
9.1 
INTRODUCTION 1
9.2 
COMMON FORMS OF ROAD CONTRACTS 1
9.2.1  BoQ Contract (Item Rate Contract) 1
9.2.2  Lump Sum Contract 2
9.2.3  Performance Based Contract 2
9.2.4  Petty Contracts 3
9.2.5  Retainer Contract 3
9.2.6  Community Contracting 5
9.2.7  Force Account 5
9.2.8 Pilot Contracts under PMGSY RRP-II for
Routine Maintenance 5
9.3 
PURPOSE OF CONTRACT DOCUMENT 6
9.4 
STANDARD CONTRACT DOCUMENTS 6
9.5 
PROCUREMENT OF CONTRACTS 7
9.5.1  Public Notification of Works Available for Outsourcing 10
9.5.2  Sale of Bid Document 10
9.5.3  Eligible Bidders 10
9.5.4  Qualification of Bidders 10
9.5.5  One Bid per Bidder 11
9.5.6  Site Visit by Bidders 11
9.5.7  Pre-Bid Meeting 11
9.5.8  Amendment of Bid Document 13
9.5.9  Submission of Bid 13
9.5.10  Bid Opening 13
9.5.11  Bid Validity 13
9.5.12  Bid Data Sheet (BDS) 13
9.5.13  Bid Security (Earnest Money) 14
9.5.14  Performance Security 14
9.5.15  Award of Contract 14

TABLE OF CONTENTS | iii

 9.6 
CONTRACT MANAGEMENT OF WORKS 14
9.6.1  Key Stakeholders of Contract 14
9.6.2  Conditions of Contract 16
9.6.3  Priority of Contract Documents 16
9.6.4  Contractors General Responsibility 17
9.6.5  Possession of Site 17
9.6.6  Taking Over of Site 17
9.6.7  Defect Liability Period (DLP) 17
9.6.8 Variations 18
9.6.9  Extension of Time 18
9.6.10 Payments 18
9.6.11  Quality Control 20
9.6.12  Duty Exemptions 20
9.6.13  Dispute Resolution 21
9.6.14  Communication During Contract 21
9.6.15  Safety, Security and Environment 21
9.6.16  Insurance of Work, Equipment and Persons 22
9.6.17  Protection of Environment 22
9.6.18  Compliance with Labour Regulations 22
9.6.19  Monitoring Site Meetings 22
9.7 
KEY POINTS FOR EFFECTIVE CONTRACT MANAGEMENT 24
ANNEX 1: Weightage Assigned to Defects for Releasing
Payments in Period II 27
ANNEX 2:  FIDIC Forms of Contract 28
ANNEX 3:  Sample Invitation For Bids (IFB) 29

iv | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
Contract Management

9.1 INTRODUCTION
Due to limited institutional capacity with the client department to execute
planned works, the most suitable option is to outsource the execution of
these works to a third party. Earlier only road construction works or major
maintenance works such as rehabilitation, renewal of surface were tendered
but with the continuous decrease in the number of departmental labour, now
even the routine maintenance works are also being carried out by engaging
Contractors in many States.
For contracting any identified works, a contract agreement is signed between
the Employer (the client department, mostly represented by the Chief
Engineer) and the selected Contractor (through competitive bidding). The
contract agreement is mutually binding legal document that obligates the
Contractor to execute specific works and obligates the Employer (or Client)
to provide monetary compensation for these executed works. Entering
into an agreement for execution of works is one method of allocating the
responsibility of managing or sharing potential risks.
Most States (and departments) have policies and procedures specifically
defining the procurement rules and have specific instructions on how the
procured contracts would be administrated by the Engineering staff (Executive
Engineer and below).
The intent of this training module is to expose the Engineering staff to whole
life cycle of procurement which is generally followed, with a brief introduction
on various options available for contracting, an overview of the procurement
process including the bid documents, and generic conditions of a works
contract. Concluding part covers the guidelines for effective management of
such contracts by the Engineering Staff, listing roles and responsibilities of
the managing staff, some do’s and don’ts during execution of contract and
the role of effective communication in contract management.

9.2 COMMON FORMS OF ROAD CONTRACTS

9.2.1 BoQ Contract (Item Rate Contract)

BoQ or item rate contract is the most common form of contract in civil
Engineering projects. The quantities of the items of work expected to be
executed under the contract are estimated, and tabulated in the bid document
as Bill of Quantities (BoQ). The bidder provides its rates (unit price) against

CONTRACT MANAGEMENT | 1
each item when submitting the bid. The bidder who quotes lowest aggregated
rate gets the Contract.
Payment of works in a BoQ contract is based on unit rates agreed for each
of the work activities and the Contractor is at any given time paid only for the
quantity of the completed works.
For this type of Contract, Engineer’s assessment of the activities (in number)
under the scope of the Contract is very important. In case of inaccurate
estimation of the quantities, some bidder may submit an ‘unbalanced bid’
when it discovers large difference between its estimation of work and the
client’s estimates of these quantities. The risk of inaccurate estimation of
works is covered by provision of ‘Variation’ clause in the contract, but this
is allowed only subject to certain conditions and limits. Also the client has
option of seeking additional performance security for ‘unbalanced’ items.

9.2.2 Lump Sum Contract

In a lump sum contract, the client agrees to pay a specified amount to
Contractor on completion of some predefined stage or milestone during the
execution of the work. In this case cost break down or the quantities of the
executed work are not required for payment.
It is called a Lump Sum because the Contractor is required to submit a total
(lump sum) price instead of bidding on individual items. A lump sum contract
is the mostly used on projects with a well-defined scope.
In this type of Contract, the complete design of the project before start ,
estimation of the quantities and the knowledge of effective unit prices (at
the time of execution) of the activities which constitute the completion of a
stage or milestone, by the Engineer (and the Contractor) is very important.
The client has reduced risk in this type of Contract and has essentially
assigned most of the risk to the Contractor. If the actual cost of the project is
underestimated, the underestimated cost will reduce the Contractor’s profit
by that amount. An overestimate has an opposite effect, but may reduce the
chance of being his being lowest bidder for the project.

9.2.3 Performance Based Contract

Performance base maintenance contracts have in recent years become an
increasingly popular approach to road maintenance. The basic principle is
to define a desired performance standard to which the road needs to be
maintained during a certain period of time instead of specifying a contract
based on quantified volumes of work. The Contractor is paid a specified
amount, irrespective of the inputs, if the pre-defined conditions or standards
are met with.

2 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
In this type of Contract, the assessment of the activities under contract,
actual estimation of the quantities of items of expected work, the setting up
of performance criteria and conditions for payment is very important.
A copy of a set of performance criteria specified for one of the pilot contracts
in ILO-PMGSY project is placed at Annex 1.

9.2.4 Petty Contracts
When dealing with activities such as off-carriageway maintenance, the volume
of works and contract amounts are much smaller, and may not justify the use
of the comprehensive contracts intended for larger civil works projects. Due
to the limited size of these contracts, a simplified system can be applied. In
such a case petty (very small) contracts can be an effective arrangement for
smaller simple works dispersed over a large geographical which can be let
through direct selection (with limited competition), applying standardized unit
rates and simplified contract documents.

9.2.5 Retainer Contract
Retainer contracts with an agreed schedule of rates are sometimes used for
establishing a standby arrangement for dealing with emergency maintenance
works such as major landslides and washouts which require immediate
action in order to restore access as well as limiting the extent of damages.
In emergent situation there is a need to quickly mobilize resources to reopen
the road. In the past, force account units in the public works departments
took care of emergency works. In recent years, these units have often been
disbanded and the agencies totally rely on private Contractors to carry out
maintenance.
In such instances, it may take too long time to secure agreements with
Contractors through the standard tendering process. Instead, the technical
agencies can call for tenders on work activities that are commonly required
in order to deal with emergency situations. These tenders essentially consist
of priced unit rates for the activities normally required in order to repair
road sections that has become impassable as a result of sudden severe
damages. Retainer contracts are only utilized when an emergency occurs
and are normally organized once a year, preferably in advance of the season
during which major damages are likely to occur.
When a major incidence has occurred, the road agency can then quickly
mobilise a Contractor who have already submitted unit prices for emergency
works. Technical staff from the road agency then carries out a rapid
assessment of the works required and estimate the quantities of work. The
total cost of works is then calculated on the basis of these quantities together
with the already agreed unit prices.

CONTRACT MANAGEMENT | 3
4 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS
9
9.2.6 Community Contracting
Community contracting has become a popular arrangement for minor works
that are targeted towards a limited group of beneficiaries such as a village
or a particular neighbourhood in an urban setting. It is an approach often
championed by development agencies in order to secure a high level of local
participation by the end users in all stages of the project from conception,
planning to works implementation.
A common feature in community contracting is that there are normally
no formal contracting firms involved in the works. Instead, the role of the
Contractor is replaced by the community, which takes charge of the works,
relying on local labour and individuals who possess the necessary trade
skills. In some instances, these groups are later recognized as a “Contractor”
and also utilized during the maintenance and operation phase of a project.
While acknowledging the limited technical skills and capacity of local
communities operating as a Contractor, there is still a need to follow the basic
concepts of contracting. This includes establishing a contract agreement in
which the works are properly quantified and priced. Equally, this arrangement
also requires clearly defined procedures for supervision, measurement and
payment of works – similar to conventional contracting of civil works.

9.2.7 Force Account
Force account refers to maintenance activities undertaken by the Client using
its own departmental labour and machinery. Gangs of departmental labour
maintains stretches of roads in their sections, and the material and machinery
for carrying out maintenance activities was provided by the department. This
was a very effective option for routine maintenance of roads, and this practice
was in use in almost all State public works departments about 15 ~ 20 years
ago. But in recent times use of force account for routine maintenance is limited
to only few States (e.g. HP) as the intake of regular labour in departments
has substantially decreased and more and more works are being outsourced.

9.2.8 Pilot Contracts under PMGSY RRP-II for Routine Maintenance

Under RRP-II (Rural Roads Project-II), NRRDA has assigned ILO to test
two models of contracting for routine maintenance of rural roads (PMGSY
roads after 5 year DLP and other Non-PMGSY rural roads). These are
Performance Based Maintenance Contracts (PBMC), and Community
Contracts. ILO has produced a draft of SBD for PBMC, which is being tested
in Himachal Pradesh and Uttarakhand. ILO is also in process of drafting
Contract agreement / MoUs for facilitating Community Contracting (for off
carriageway maintenance) in Bihar and Uttar Pradesh.

CONTRACT MANAGEMENT | 5
9.3 PURPOSE OF CONTRACT DOCUMENT
The Contract Documents define the materials and products and how they
are installed together with all the management procedures.
A Contract Document may also be seen as a Tender Document with the
blanks filled in and the Form of Agreement signed by the parties to the
contract. The contents of the Contract depends on the contents of the Tender
Document and the nature of the tender.
They contain all the documents necessary to define;
• the Works for construction,
• the conditions pertaining to the contract and
• are binding on both the Employer and Contractor.

9.4 STANDARD CONTRACT DOCUMENTS

Government agencies usually rely on standard documents when preparing
a public works contract. These documents form part of the government
procurement regulations and as such must be adhered to. Making use of
standardized documents, simplifies contracts management. As the same
procedures are applied again and again, department staff and Contractors
are familiar with the prevailing regulations and conditions applied in the
contracts.
For the construction of rural roads under PMGSY, NRRDA has issued a
Standard Bidding Document (SBD). The document follows the format of the
MOST (Ministry of Surface Transport) Bidding Document, which is similar to
the format for National Competitive Bidding (NCB) for Works (India Version)
as approved by the Ministry of Finance for World Bank funded projects.
This Bid document is available at PMGSY website (http://pmgsy.nic.in).
Multinational Development Banks including the World Bank, uses FIDIC’s
(Refer Annex 2) MDB Harmonized Edition of the Construction Contract for
their projects.
For the construction of other rural roads (Non PMGSY) from the State funding/
schemes, respective States use their own Standard Bidding Documents or
Contract formats. Now most of the States have started using the template of
PMGSY SBD for these works.
Maintenance of the constructed works under PMGSY is responsibility of
the same Contractor for a period of 5 years after construction, hence terms
and conditions for maintenance of PMGSY roads during this period are also
included in the aforementioned PMGSY SBD.
Maintenance of PMGSY roads after 5 years maintenance period (also
termed as 5 years DLP), and other rural roads in the State is undertaken

6 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
by the department(s) having jurisdiction of rural roads in that State. These
works are also procured/contracted by the States using their own Bidding
Documents / Templates.

9.5 PROCUREMENT OF CONTRACTS

Standard civil works contracts are designed to cater for a certain size of
works. The larger and more complicated projects use more comprehensive
documents. Smaller works contracts, such as the ones issued for routine
road maintenance works, do not need the same level of sophistication and
therefore contain less clauses and regulations. Experience shows that the
smallest jobs can be managed using simplified documents, thereby reducing
the time necessary for contract preparation. Still, the contract would define
the type and amount of works to be carried out and linking payment to the
progress of work.
The procurement of works is preceded by assessment of the scope of work
(Employer’s requirements), estimation of the costs, and the administrative
approval / technical sanction from a competent authority to undertake these
works. Thereafter for each work or package of works a Bid Document /
Contract Document is prepared at the Division (PIU) level, for which inputs
come from the respective Sub Divisions and the concerned branches
(Drawing / Administrative) of the Division office. In most cases, the work
to be executed under each contract is tabulated in the form of BoQ (Bill
of Quantities) in the Bid Document (Refer Section 9.2 for different form of
contracts).
Procurement is undertaken by the Division office using the approved Bid
documents for that work/package.
The ITB (Instructions to Bidders) section of the Bid document lists out
methodology, terms/conditions and other information specifying how the
Employer intends to undertake procurement of works.

CONTRACT MANAGEMENT | 7
Figure 1: Sections of a bid document

1. IFB : Invitation for Bids

• Provides a notice of availability of Bids listing some important

features of Contract and important dates of bidding

2. ITB : Instructions to Bidders

• Lists the conditions of Procurement, and bidding information

specific to the Contract in BDS (Bid Data Sheet)

3. Qualification Information

• Lists criteria to determine the qualifications of the Bidder

4. Conditions of Contract

• Lists the contractual conditions for execution of the Contract.

It includes GCC (General Conditions of Contract) which are
not changed from the SBD; PCC (Particular Conditions of
Contract) which are specific to a Contract and supplement
and override relevant GCC clauses; and the Contract Data
which provides specific information/data with reference to
GCC Clauses

5. Employer's Requirements

• Covers the Scope of Contract and contains the Specifications,

the Drawings, and supplementary information that describe
the Works to be procured.

6. Form of Bid

• Contains the forms which are to be filled by Bidder for

Bidding

7. Bill of Quantities (BoQ)

• If it is an item rate contract, this section contains the BoQ

which is used by Bidder to quote his unit rates against the
listed items of work

8. Contract Forms

• Contains the template of forms to be used after bidding for

awarding and executing Contract eg. Letter of Acceptance,
Contract Agreement, Performance Security etc.

8 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9

CONTRACT MANAGEMENT | 9
9.5.1 Public Notification of Works Available for Outsourcing
A public notification (mostly an advertisement in Newspaper) is issued which
specifies the name /brief detail of the work(s) available for out sourcing,
estimated costs, important dates of procurement (start date of availability of
bid, last date of bid submission, date of bid opening, date of pre-bid etc.) and
contact details of the concerned office.
The Bid Document also carries a copy of the detailed notification termed as
IFB (Invitation for Bids). In some cases, Client advertises the entire IFB in the
press/media. These days with the advent of E-procurement the Bid notice is
also placed on the Client’s website.
A specimen of the IFB is placed at Annex 3.

9.5.2 Sale of Bid Document

The Bid document is issued to the interested/prospective Contractors
against a specified payment. [Mostly, the cost of the Bid Document depends
on the approximate cost of the bidded work and the targeted category of the
Contractors]. For the works procured under e-procurement, the Contractor
has the option of downloading the Bid document from the Employer’s website,
and deposit bid document cost at the time of Bid submission. In case the bid
submission is also online, the Contractor uploads a copy of the demand draft
of the value equal to cost of the bid document, and submits the original draft
at the time of submission of technical documents.

9.5.3 Eligible Bidders
The ITB specifies the eligibility criteria of the Bidders who can submit the
Bids. For normal PWD Contracts, the Contractors registered with the PWD
(mostly any State PWD and the Central PWD registered Contractors) are
eligible. For the World Bank funded procurement, generally the Bidding is
open to all Bidders except for the Bidders from the countries debarred by UN
Security Council.
Depending on the requirement of the Contract, the Employer may allow or
not allow participation of a Joint Venture in the Bidding.

9.5.4 Qualification of Bidders
The Employer seeks information and documents from prospective Bidder
to prove that he is qualified to undertake the works under Contract. This
is generally based on Bidders experience in executing similar works, and
Bidders financial capability to manage the Contract. In most cases the
Employer seeks details of the following:

10 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
i. Registration of the Bidder with PWD / CPWD
ii. Registration of Bidder’s company as per law of the country
iii. Financial turnover of the Bidder’s company (Generally it is equal to the
value of the work to be Contracted)
iv. Amount of total works, and works of similar nature executed by the
Bidder in a specified period (The qualifying criteria depends on the
nature and importance of work, and is generally one single work of 80%
of the value of work to be contracted having been completed in last 5
years)
Apart from above, the Employer also checks the reputation of Bidders in
managing disputes on previous contracts.
The qualifying information is sought from Bidder on the templates provided in
Section 3 of Bid - ‘Qualification Information’.
The documents to be appended in support of qualification are certified copies
of the requested information. The Employer can seek the original documents
at the time of Bid evaluation.

9.5.5 One Bid per Bidder

For any Contract the Bidder can submit only one bid, otherwise the submitted
bids are not considered for evaluation.

9.5.6 Site Visit by Bidders

In order to make its assessment for bidding, if the bidder is allowed to visit the
site of works but the cost of visit and associated expenses for data collection
etc. is borne by the Bidder.

9.5.7 Pre-Bid Meeting
During Bidding period, the Employer facilitates a meeting with all the bidders
who have purchased the bidding document to answer any queries related to
Bidding and the proposed Contract. The responses of Employer are provided
to all the bidders (even if they are not present in this meeting) who have
purchased the Bid document, without disclosing which bidder had raised the
query.
The pre-bid meeting should be held early, e.g., two to three weeks after the
availability of the tender document. This allows potential bidders time to
thoroughly review the tender documents and gives enough time to prepare
their proposals once they have received important clarifications, if applicable.
The tendering process should also allow for written requests for clarification
or comments, but this should be limited to a certain deadline.

CONTRACT MANAGEMENT | 11
12 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS
9
9.5.8 Amendment of Bid Document
If required, the Employer can make modification / amendment to issued
Bid Document before close of bidding date. This is notified by issuing a
corrigendum / addendum in the same medium where the original Bid Notice
was given. The Employer also extends the deadline of bid submission, allow
bidders to account for changes made. Generally at least two weeks’ time is
given. The Employer needs to notify all the bidders who have purchased the
bid document about the issued corrigendum / addendum.

9.5.9 Submission of Bid
The Bidder prepares his Bid using only the purchased version of the Bid
Document. The rates of the items are quoted (if its item rate contract) in the
BoQ provided in Bid, and the total quoted price of Bidder for that Contract
is provide in Letter of Bid. Generally following are part of the submitted bid.
i. Form (letter) of bid
ii. Bid Security
iii. Qualification information with supporting documents and undertakings
iv. Purchased Bid document, filling the information where indicated

9.5.10 Bid Opening
On the specified date and time, the Employer opens the bids received by
the deadline and reads the Bid prices quoted by respective Bidders. This
is done in the presence of the Bidders and/or their representatives. Other
documents such as availability of the requested Bid Security, its validity
dates, the demand draft for Bid document (if downloaded from website) etc.
are also confirmed. A record of the proceedings is prepared, and shared with
all the participating Bidders.

9.5.11 Bid Validity
The Employer requires that the submitted Bid should be valid till the time
procurement process is complete, and the Contract is awarded to the
successful Bidder. Normally this period is taken as 90 days after the deadline
date for bid submission. On expiry of original Bid validity period, the Employer
can seek the extension of the Bid validity from the Bidder but the Bidder has
prerogative to agree to such extension.

9.5.12 Bid Data Sheet (BDS)

BDS contains specific data for the Works to be procured and complement,
amend, or supplement the provisions in the Instructions to Bidders (ITB).
Whenever there is a conflict, the provisions in BDS prevail over those in
Instructions to Bidders.

CONTRACT MANAGEMENT | 13
9.5.13 Bid Security (Earnest Money)
The Employer seeks a Bid Security from the participating bidders which
normally is 1% to 2% of the estimated cost of works under the Contract.
The Bid Security can be in the shape of a Fixed Deposit Receipt or Demand
Draft, and in general has validity of 45 days beyond the Bid validity period. All
Bidders are refunded their bid security, after the successful Bidder submits
the Performance Security to the Employer and signs the Contract agreement.
In some cases, the Bid Security of the successful bidder is converted as part
of the required Performance Security.

9.5.14 Performance Security
The Contractor is to provide performance security for the proper performance
of the contract. Generally it is 5% of the contract price, and is kept valid till
the completion of defects liability period. Performance security is obtained
from the Contractor in the form of Bank Guarantee, on a format annexed
with the Bid Document. Performance security is to be provided by Contractor
within 28 days (or as decided by Employer) of the receipt of the Letter of
Acceptance from Employer.
If circumstances arise during the execution of the contract which requires
realization of Performance Security, the Employer is required to notify the
Contractor stating the nature of the default in respect of which claim is being
made by Employer against Contractor.

9.5.15 Award of Contract
The Contract is awarded to the lowest evaluated bid/tender, assuming it is
substantially responsive. The successful bidder is notified in writing, in the
form of Letter of Acceptance. All other bidders are also informed about the
Employers decision on award of Contract.
In some States/Departments, Letter of Acceptance amounts to contract
even though acceptance letters refers to a formal contract to be drawn up
afterwards.
The formal agreement is signed within 28 days (or as decided by the
Employer) along with submission of performance security.
Employer has right to accept or reject any or all bids and even to annul the
bidding process any time prior to award of contract.

9.6 CONTRACT MANAGEMENT OF WORKS

9.6.1 Key Stakeholders of Contract
Three key stakeholders of any works contract are (i) Employer, (ii) Contractor
and (iii) Engineer. First two are signatories (parties) of the Contract agreement,
14 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS
9
while the Engineer is the entity which facilitates management of the contract
(generally) on behalf of the Employer.

Employer
Employer means the person named as such in BDS or Contract Data, and
the legal successor in the title to such person.
Normally in Public Works Contracts in India, the Employer is the Chief
Engineer acting on behalf of the Governor of the State

Engineer
Engineer means the person appointed by the Employer to act as Engineer
for the purpose of the Contract. He can be a departmental officer (generally
Executive Engineer) or a PMC (Project management consultant).The
Engineer represents the Employer to carry out duties as specified in the
conditions of Contract. On some issues the Engineer may require to seek
prior approval of the Employer, such as cost increase or time extension. The
Engineer has no authority to relieve the Contractor of any of its obligations
under the contract, but has authority to act in an emergency. The Engineer
may delegate to his representative any of his duties and authorities. The
Engineers approval does not absolve the Contractor of his duties and
responsibilities under the contract. The Engineer shall instruct in writing and
oral instructions shall be confirmed by written communication. The Engineer
shall act impartially on all matter entrusted to him.

Contractor
Contractor means the person whose tender has been accepted by the
Employer and the legal successor in title to such person.
Contractor or Contracting Agency is responsible for execution of the listed
Works under the Contract against some agreed amount of payments, subject
to specified terms and conditions of the agreement.

Sub-Contractor
Sub-Contractor means any person/agency named in the contract or proposed
by the Contractor as a sub-Contractor to whom a part of work has been sub
contracted with the consent of Engineer and the legal successor in title to
such person.
If allowed in the Contract, the Contractor can Sub Contract some works to
another Contractor. This happens mostly in cases where specialised jobs
are required to be undertaken within the contract. The Contractor cannot
subcontract the whole of the Works.

CONTRACT MANAGEMENT | 15
Consent to Sub-Contract does not relieve the contractor from any of his
obligations and liabilities from that part of work. The Contractor is completely
responsible for the acts, defaults and neglects of any subcontractor.
Generally, the contractor is not required to obtain consent for:
a. The provision of labour
b. The purchase of materials
c. The sub-contracting of any part of the Works for which the Subcontractor
is named in the Contract.

9.6.2 Conditions of Contract
Normally, there are two sub-groups of conditions of a Works Contract
i. General Conditions (GC or GCC)
ii. Particular Conditions (PC or PCC)
General Conditions of Contract are not changed from the conditions provided
in the base Contract Document (mostly FIDIC Contract template or Client
departments own SBD). These are be applied to any Project without change.
Particular Conditions are amended General conditions supposed to take
care of issues specific to any given project, but within the limits clearly set
out by Client department.
Particular Conditions have precedence over respective clauses of the
General Conditions.

9.6.3 Priority of Contract Documents

The priority of different documents forming the contract is clearly spelt out for
removing any ambiguities or discrepancies, though all documents forming
contract are mutually explanatory of one another.
The Contract Documents for works contracts comprise the following
documents arranged in the order of preference as per the conditions of
contract:
1. The Contract Agreement (Agreement signed between Employer and
Contractor),
2. Letter of Acceptance issued by Employer to Contractor,
3. Notice to Proceed with the Work ,
4. Contractor’s Bid,
5. Contract Data,
6. Particular Conditions of Contract,
7. General Conditions of Contract,
8. Employer’s Requirements (Works and Specifications),

16 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
9. The Drawings,
10. Bill of Quantities (BoQ) and
11. Any other document listed in the Contract Data.

9.6.4 Contractors General Responsibility

The Contractor shall design (to the extent required) execute and complete
the works and remedy any defects by providing all superintendence, labour
materials, Plants, Equipment and other things, as specified or as inferred
from the contract.

9.6.5 Possession of Site
Employer has to provide the possession of the site to the contractor as per
agreement dates. If it is delayed the contractor can claim time extension and
extra cost.

Unforeseeable Site Conditions

Other than climatic conditions, if contractor finds an adverse physical
obstruction or condition which is foreseeable by an experienced contractor.
The Engineer after consultation with Employer may grant.
a. The time extension needed for the completion of the effected work
b. And the amount of cost increase needed by the contractor for the above
reason.

9.6.6 Taking Over of Site

Employer takes over the Site from the Contractor after completion of the works
under the Contract. Even after taking over, the Contractor has responsibility
to remedy any defects to the constructed works during the defined Defect
Liability Period.

Substantial Completion Of Parts

If agreed under contract, the Employer can take over any part of the
project that has been substantially completed. In big projects, separate
time of completion (or milestone) is mentioned which can be taken over on
completion. In some circumstances, the Employer takes over major parts of
work and the contractor is liable to complete any outstanding work within the
defect liability period.

9.6.7 Defect Liability Period (DLP)

In most Contracts a Defects liability period is agreed, during which the
Contractor is responsible to rectify any defects or repair any damage to
the works constructed by him. DLP starts immediately after the completion

CONTRACT MANAGEMENT | 17
period of the Contract. The Engineer can get the defects rectified at the cost
of Contractor if it fails to carry out the required work.
In case substantial completion of some works (or section) in Contract is
accepted by the Employer, the DLP for that work (or section) shall start from
such acceptance date.
If there is any default on the part of the contractor in carrying out the work of
remedy within reasonable time the employer is entitled to employ and pay
other contractor whom he thinks suitable to carry out the same work. All the
cost incurred for doing the work by the other contractor will deducted from
the contractors payments.

9.6.8 Variations
The quantities set out in the bill of Quantities are the estimated quantities
of the works and not the actual quantities. There are circumstances during
the execution of Contract that the engineer needs to vary the quantity or
specification of work and also to omit or add additional work. For the items for
which rates are not agreed in Contract, or the percentage of variation is higher
than agreed threshold, the engineer is required to fix new rates for variations,
additions deletion and alterations. The new rates are worked out on the basis of
existing rates in the contract wherever possible otherwise suitable rates are to
be worked out by engineer after consultation with contractor and the Employer.

9.6.9 Extension of Time
On receipt of request from the Contractor, the employer can extend the
time for completion due to additional works, exceptionally adverse climatic
conditions, causes for which the employer is responsible, and agreed
circumstances for which Contractor is responsible and were notified by the
Contractor.

9.6.10 Payments
Contractor submits monthly (or as per agreed period) statement of money
due in the format instructed by the Engineer. The engineer is to certify
this payment request within a defined period (28 days in FIDIC SBD) after
inspecting and measuring the executed works.
After completion of all works under contract, the contractor submits the
final value of all work done. This is done after the issuance of taking over
certificate by Employer. The employer not liable to the contractor for any
matters beyond claims in the final statement.
In the event of the failure of Employer to make the payment within the time
stated in Contract agreement, the Employer shall pay contractor interest at
the rate stated in the agreement.

18 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9

CONTRACT MANAGEMENT | 19
Retention Money
Retention money is deducted from the interim monthly payments of the
Contractor during progress of work. Generally it is returned in two stages,
(a) 50% of the retention money is returned to Contractor on the completion
of whole of the works under Contract and (b) balance 50% after the expiry of
Defects Liability period.

Liquidated Damages
If contractor fails to comply with the given time for completion, then contractor
has to pay to the employer an agreed amount of liquated damages. The
employer deducts this amount from the payment of the contractor. Still this
does not relieve the contractor from his obligations as mentioned in the
contract to complete the works. If any section or part of the work is already
completed and handed over, the liquated damages proportionately reduced.

9.6.11 Quality Control
All material, plant and workmanship shall be as described in the contract and
according to the engineer’s instructions. The contractor shall facilitate the
engineer to examine and measure any works.
The Contractor is not supposed to cover any work without the approval of
the engineer. He has to inform the Engineer the works which are about to
be covered up or put out of view. If required, the contractor shall uncover
any part of the works or make openings, as engineer may instruct and shall
reinstate such part of the work. If any such part has been covered up or put
out of view after compliance and is found to be executed in accordance with
the contract, the amount of contractors cost of such uncovering, reinstating
and making good shall be provided to the contractor.
The engineer can issue instructions for removal from the site, any material or
plant which is not in accordance with the contract and seek its substitution.
The contractor has to supply samples of materials, before incorporation of
works for testing as may be required by engineer. Quality control tests can be
carried out at the place of manufacture, fabrication or preparation or on the
site as required by the engineer.

9.6.12 Duty Exemptions
The World Bank funded Contracts allow for Duty exemption (Excise and
Custom) on the goods, material, machinery and equipment intended to be
used for execution of a specific Contract. This exemption is allowed by the
concerned department after the Contractor’s request is agreed and counter
signed by the Engineer / Project Director.

20 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
9.6.13 Dispute Resolution
If the Contractor believes that a decision taken by the Engineer was either
outside the authority given to the Engineer by the Employer or that the
decision was wrongly taken, the decision shall be referred to the Adjudicator
within 28 days of notification of the Engineer’s decision.
The Adjudicator shall give a decision in writing within 56 days of receipt of a
notification of a dispute.
Either party (Contractor or Engineer) may refer a decision of the Adjudicator
to Arbitration within 28 days of the Adjudicator’s written decision. Arbitration
shall be under the Indian Arbitration and Conciliation Act, 1996. If neither party
refers the dispute to Arbitration within the above 28 days, the Adjudicator’s
decision will be final and binding on both the parties.
Performance under the contract shall continue notwithstanding the reference
to the Adjudicator or Arbitrator, and payments by the Employer to the
Contractor will not be withheld unless they are the subject matter of dispute.

9.6.14 Communication During Contract

The language of the contract shall be as specified in the conditions of
particular application.
Communication (all letters, notices and instructions) shall be sent to an
accepted address of Contractor, Engineer and Employer, clearly stated in
the contract. The address so provided can be changed after giving proper
notice of change. Emails or fax to the notified office email id or fax number
are also be used for communication. The Notice sent by facsimile (fax) or
other electronic means shall be effective on confirmation of the transmission.
Instructions given by the Engineer shall be in writing. If for any reason the
Engineer considers gives instruction orally, these should be confirmed in
writing within 7 days.

9.6.15 Safety, Security and Environment

The contractor is required to take care of the safety of all persons, his staff
and workers and also of the persons visiting site in various capacities and
responsibilities for execution / management of the Contract. The contractor is
to ensure that its operations on the site do not interfere with the convenience
of the public or block the access to others.
He has to maintain at his own cost, all lights, guards, fencing, warning signs
required for securing the construction site.
He has to take all reasonable steps to protect the environment, and take
steps to control pollution or noise within the prescribed limits (by Contract or
by law).

CONTRACT MANAGEMENT | 21
9.6.16 Insurance of Work, Equipment and Persons
The contractor has to take an insurance policy for the damage to works
(generally full replacement costs of the works), equipment / machinery at
site of work and against death or injury to any person during the performance
of the contract (for the amounts indicated in the agreement).
The contractor has to produce evidence of taking these insurances in the
beginning of Contract (within the defined time frame). In case of failure to do
so, the Employer can take such insurances at the cost of contractor.

9.6.17 Protection of Environment
During continuance of the contract, the Contractor and his sub-Contractors
shall abide at all times by all existing enactments on environmental protection
and rules made there under, regulations, notifications and bye-laws of the
State or Central Government, or local authorities and any other law, bye-law,
regulations that may be passed or notification that may be issued in future by
the State or Central Government or the local authority.

9.6.18 Compliance with Labour Regulations

During continuance of the Contract, the Contractor and his sub-Contractors
shall abide at all times by all existing labour enactments and rules made
there under, regulations, notifications and bye laws of the State or Central
Government or local authority and any other labour law (including rules),
regulations, bye laws that may be passed or notification that may be issued
under any labour law in future either by the State or the Central Government
or the local authority.

9.6.19 Monitoring Site Meetings

Following the commencement of construction works by the Contractor,
Monitoring Site Meetings shall be held on a Monitoring basis. These shall be
attended by all the relevant stakeholders to ascertain whether the Contractor
is carrying out his/her work in line with gender, environment and workplace
health and safety issues contained in the contract documents.
The Monitoring Site Meeting shall be attended by the following:
• Client’s representative
• Contractor’s representative
• Workers’ representative (male and female representation)
• Members of the Entity Works Committee
• Representatives of the community including special interest groups
such as women, youth and persons with disabilities
• Representatives of the district, community and workers.

22 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
Minutes of the meeting shall be taken by the client’s representative who shall
produce and distribute to all the relevant stakeholders. Failure to organise
and participate in Monitoring Site Meetings may result in poor communication
between the contractor and the communities in which construction is
undertaken.

Checklist
The following checklist of activities, to be undertaken during the Monitoring
Site Meeting, is for guidance only and may not be fully exhaustive.
• Meet with members of the local communities and District stakeholders
as a precursor to maintaining good working relationship. The meeting
will follow up on mutual obligations by the contractor to the community
and by the community to the contractor, including issues relating to
gender sensitivity, environment conservation, labour and workplace
safety, health issues including HIV/AIDS prevention as agreed in Pre-
Tender and Mobilisation Site Meetings.
• Follow up on availability of materials approved by the Client for fill,
surfacing, aggregate, sand, water, etc. and whether the Contractor is
having any challenges in accessing these materials.
• Revisit security issues related to the Contractor’s property and all those
workers employed from the local communities.
The following may also be undertaken during the meeting:
a. Confirm the availability, location, condition and access to sources of
materials approved by the Client for fill, surfacing, aggregate, sand,
water, etc. and agree with representatives of the local communities
modalities for accessing these materials and the cost, if any, thereof.
b. Locate and acquire storage facilities in the community including the
costs involved.
c. Agree on any measures necessary to ensure security of the Contractor’s
property and all workers employed from the local communities.
d. Clarify the mode of operation such as work methods (task allocation
and rates, working hours).
e. To explain the target group eligible for employment. In all cases, it must
be stressed that, both men and women are eligible for employment.
Explain the likely application of 50% quota system in the recruitment to
allow for a ratio of 1 : 1 of women : men or where this is not achievable, at
least 30% of the labour force should be women. Emphasise that women’s
participation should not be restricted to only work that is traditionally
associated with women but that it should include supervisory roles
and other otherwise “manly” work. Youth and Persons with Disabilities
should also be considered as special cases.

CONTRACT MANAGEMENT | 23
 f. Discuss the labour mobilisation strategy and recruitment method for
both male and female.
g. Other issues/matters as the Meeting may consider appropriate.
Provide the local leaders with the Standard Notice of Recruitment (SNR) for
display at public places in their respective communities. In this case, local
leaders shall include District officials, officials of community and women
groups, churches and mosques and youth leaders among others. Standard
notices shall be posted to public places such as schools, announcements
at market places, trading centres and road junctions, floats Districts notice
boards, tree trunks along road sides and at health centres notice boards
among others.

9.7 KEY POINTS FOR EFFECTIVE CONTRACT MANAGEMENT

In normal construction works of any road agency (in India), the Contracts
on ground are managed by the Assistant Engineer (on behalf of Executive
Engineer) supported with a team of Junior Engineers. Though in most cases
the field Engineer is not a signatory of the Contract, but by the delegated
authority he has the responsibility to supervise the execution of the Contract
by the Contractor in such manner that there is no loss to the Government
Exchequer and the intended purpose of the Contract is delivered. For
effective management of a Contract, some key points for the field Engineer
are listed below:
 Discharges the duties with complete fidelity and uphold the reputation of
Engineering profession and the department
 Always treat Contractor a key stakeholder in success of the Contract
 Read the Contract Agreement very carefully, and note down which
actions AE can take directly and for which actions AE has to take
decision / approval of the EE or CE, e.g. following may require approval
from Employer:
•  Subletting any part of the work
•  Variation orders
•  Certificate of completion
•  Approval of new rates
× Don’t simply put the contract on the shelf once signed. Spend time
reading and understanding the contract, particularly the contract
management and dispute resolution procedures.
 Understand the sequence of priority of documents which are part of
Contract (refer Section 9.6.3 above)
 In case of any ambiguity or discrepancy bring the issue in the notice of
Executive Engineer or some expert before issuing any instruction to the
Contractor

24 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
 Keep note of all the important dates
•  Dates when bidding takes place
•  Date of Pre-Bid meeting
•  Last date of Bid submission
• Date of Bid opening (In most of the cases, the last date of bid
submission and date of bid opening are same)
•  Date of issue of letter of acceptance
•  Date of Contract Agreement
•  Date of Site handover
•  Milestone Dates
•  Date of Completion (Original and extended)
 Make sure to have a clear timetable of contract meeting, and always
agree the agenda in advance
× Don’t forget to get the feedback of the other party – clear and honest
feedback will help develop and sustain a productive relationship and
avoid disputes
× Don’t ignore to record minutes of each meeting
 Keep note of the specific approvals required to be obtained from the
Employer (in most case CE) for matters relating to change of scope,
price variation and time extension
 Keep record of daily proceedings, especially the circumstances which
may cause delay to Contract. This will help in counting Contractor’s
Claims.
 Always monitor the progress of works with a baseline schedule, prepared
at the beginning of Contract
 Always prepare inspection notes. This is very important when the site is
handed over to the Contractor
 Do not delay the inspections, measurements and due certification of the
submitted payment certificates by the Contractor
 Keep note of expiry date of Performance Guarantee. Notify Contractor
well in advance
 Intervene immediately in case of emergency, for the safety of work and
workers
 Correspondence with the Contractor should be formal and precise,
quoting the relevant Contract Clauses
 Use the advancement in IT systems to your advantage. An effective
data monitoring system can be invaluable for contract management and
can save time and money in the long run if used effectively

CONTRACT MANAGEMENT | 25
26 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS
9
ANNEX 1: WEIGHTAGE ASSIGNED TO DEFECTS FOR RELEASING
PAYMENTS IN PERIOD II
Weightage assigned to Defects for Releasing Payments in Period – II
  Defect Weightage
1 Pavement 38
(i) Surface patches* (Due to stripping, ravelling, delamination) 20
(ii) Potholes 10
(iii) Surface deformations (all depressed, rutted or corrugated surfaces) 8
(iv) Surface Bleeding 0
2 Edges & Shoulders 25
(i) Edge Break 10
 
(ii) Deformation / Scouring of Shoulders (Berms) 15
3 Drainage 18
(i) Surface runoff 0
  (ii) Side drains 8
(iii) Cross-Drains (Culverts) 10
4 Vegetation Control 2
(i) Shrubs, Bushes, Grass 1
 
(ii) Tree branches 1
5 Road Safety 8
(i) Blockage on carriageway 1
(ii) Road Signage & Road Marking 2
 
(iii) Railings of Bridges & Parapets of Culverts 4
(iv) Maintenance of 200m, Km and guard stones 1
6 Side slopes 9
(i) Landslides/Slips (Hill Side) [Less than 3 cum in each instance] 6
(ii) Erosion of Slopes (Valley Side) [If damages more than half width of the
3
shoulder]

CONTRACT MANAGEMENT | 27
ANNEX 2: FIDIC FORMS OF CONTRACT
FIDIC
FIDIC stands for Federation Internationale Des Ingenieurs Conseils
(International Federation of Consulting Engineers) which was founded in
1913. The FIDIC Secretariat is located in Geneva, Switzerland.
FIDIC publishes international standard forms of contracts, to suit various
types of Projects and responsibilities associated with its execution.
Construction Contracts: Red Book
Plant and Design-Build Contract: Yellow Book
EPC/Turnkey Contract: Silver Book
Short Form of Contract: Green Book.
One of the Traditional FIDIC Forms of Contract for Construction works
known as Red Book is Conditions of Contract for Works of Civil Engineering
Construction (Fourth Edition 1987 amended up to 1992). In 1999 FIDIC
issued a revised version of Construction Contract Conditions of Contract for
Construction - Design by Employer known as New Red Book.
More information can be accessed at official website of FIDIC -
http://fidic.org/

28 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
ANNEX 3: SAMPLE INVITATION FOR BIDS (IFB)
Invitation for Bids (IFB)
1. The Chief Engineer HPPWD, Shimla Zone at Shimla, HP on behalf of
the Governor of Himachal Pradesh invites sealed bids for ‘Performance
Based Routine maintenance of rural roads in District Solan (Himachal
Pradesh)’ from the eligible and approved Contractors registered
with HPPWD. Non-registered Bidders may submit bid, however,
the successful Bidders must get registered in appropriate class with
appropriate authorities before signing the contract. Bidding is open to all
Bidders as defined in the bidding document. The detail of work is given
as under:
Estimated
S. Total Length
Package* Contract Price Bid Security
No. (Km)
(Rs. In Lacs) (Rs.)
Name of Work: Performance Based Routine maintenance of rural roads in District Solan
(Himachal Pradesh)
1 Package 1
Waknaghat to Subathu Road 18.250 21.30 21300
(kms 0/0 to 18/250)

2. Interested eligible bidders may obtain further information from Executive

Engineer, HPPWD Solan, Himachal Pradesh and inspect the bidding
documents during office hours [1000 hours to 1700 hours] at the address
given below at Sr. No. 10.
3. A complete set of bidding documents in English may be purchased by
interested eligible bidders upon the submission of a written application
to the address below. Cost of Bid Document is Rs. 1000/- (Rupees One
thousand) only per package (non-refundable) in form of demand draft
in favour of Executive Engineer, HPPWD Solan Division, Distt. Solan
Himachal Pradesh.
4. The bid document is also available online at https://pmgsytendershp.gov.
in and www.pmgsytenders.gov.in.The bid document can be downloaded
free of cost from this site. However, if Bidder submits the bid using bid
document downloaded from this site, he is required to submit demand
draft towards cost of bid document in favour of Executive Engineer,
HPPWD Solan Division, District Solan, Himachal Pradesh during Bid
Submission.
Though every effort shall be made to make the Bid document available
on this website during the bidding period, the Employer shall not be
held liable for any electronic system failure or the failure of the Bidder to
access this website.

CONTRACT MANAGEMENT | 29
 5. Bids must be delivered to the address below on or before 14 February,
2015 by 11:00 AM. Late bids will be rejected. Bids will be publicly opened
in the presence of the bidders’ designated representatives and anyone
who choose to attend at the address below on 14 February, 2015 at
11:30 AM.
6. All bids must be accompanied by a Bid Security as specified for that
package above.
7. If the office happens to be closed on the date of opening of the bids as
specified, the bids will be opened on the next working day at the same
time and venue.
8. The bids for the work shall remain valid for acceptance for a period not
less than ninety days after the deadline date for bid submission.
9. Bidders may bid for any one or more of the Packages mentioned in the
table above. To qualify for a package of contracts made up of this and
other contracts for which bids are invited in the same IFB, the Bidder
must demonstrate having experience and resources sufficient to meet
the aggregate of the qualifying criteria for the individual contracts.
10. The address referred to above is:
Attn: Executive Engineer, B & R Division, HPPWD,
Solan, Distt. Solan, H.P.
Himachal Pradesh, India
Tel: 01792- 223811
Fax: 01792- 223811
E-mail: ee-sol-hp@nic.in
Web site: www.pmgsytenders.gov.in, https://pmgsytendershp.gov.in
11. Other details can be seen in the bidding documents.

Executive Engineer,
B & R Division, HPPWD,
Solan, Distt. Solan, H.P.

30 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS

9
Notes

CONTRACT MANAGEMENT | 31
32 | RURAL ROAD MAINTENANCE TRAINING MODULES FOR FIELD ENGINEERS
 This training module is produced through a collaborative effort between the International
Labour Organization and the National Rural Road Development Agency under the
technical assistance component of the World Bank supported Rural Roads Project-II of
Pradhan Mantri Gram Sadak Yojana Project (PMGSY).

INTERNATIONAL LABOUR ORGANIZATION NATIONAL RURAL ROADS DEVELOPMENT AGENCY

ILO DWT for South Asia and Country Office for India Ministry of Rural Development, Government of India
India Habitat Centre 5th Floor, 15-NBCC Tower
Core 4B, 3rd Floor, Lodhi Road Bhikaji Cama Place
New Delhi–110 003, INDIA New Delhi–110 066, INDIA

Designed and Printed By The Dezign Desq #9810196542.