Tender
Tender
To
The President of India,
Acting through the Principal Chief Engineer,
Divisional Railway Manager,
Senior Divisional Engineer/Divisional Engineer,
South Central Railway.
1. I/We ------------------------------------------------- have read the various conditions to tender attached
hereto and hereby agree to abide by the said conditions. I/We also agree to keep this tender
open for acceptance for a period of 60 days (90 days for the Two Packet System tenders) from
the date fixed for closing of the tender and in default thereof, I/We will be liable for forfeiture of
my / our “Bid Security”. I/ We offer to do the work for South Central Railway, at the rates
quoted in the attached bill(s) of quantities and hereby bind myself /ourselves to complete the
work in all respects within the time period stipulated in the enclosed Schedule from the date of
issue of letter of acceptance of the tender.
2. I / We also hereby agree to abide by the Indian Railways Standard General Conditions of
Contract with all correction slips up-to-date and to carry out the work according to the special
conditions of contract and specifications of materials and works as laid down by Railway in the
annexed Special Conditions / Specifications, Standard Schedule of Rates (SSOR) and the South
Central Railway Works Hand Book Part III corrected with the latest printed / advance correction
slips, sanitary works Hand Book corrected with the latest printed/advance correction slips,
Schedule of Rates corrected with all correction slips up-to-date for the present contract.
3. A Bid Security as notified in the Tender Notice (NIT) has already been deposited online/
submitted as Bank Guarantee bond. Full value of the Bid Security shall stand forfeited without
prejudice to any other rights or remedies in case my/our Tender is accepted and if:-
a) I/We do not submit the Performance Guarantee within the time specified in the
Tender document:
b) I/ we do not execute the contract documents within 7 (Seven) days after receipt of
notice issued by the Railway that such documents are ready, and
c) I /We do not commence the work within fifteen days after receipt of orders to that
effect.
4. (a) I/We am/are a Startup firm registered by .......................................... Department of Industrial Policy
and Promotion (DIPP) and my registration number is ……………. valid upto………………….
(Copy enclosed) and hence exempted from submission of Earnest Money.
5. We are a Labour Cooperative Society and our Registration No. is ................................... with
…................................ and hence required to deposit only 50% of Earnest Money.
6. Until a formal agreement is prepared and executed, acceptance of this tender shall
constitute a binding contract between us subject to modifications, as may be mutually
agreed to between us and indicated in the letter of acceptance of my/our offer for this
work.
SIGNATURE OF WITNESSES
1.
2.
SIGNATURE OF TENDERER(S)
Date:
Signature Not Address of the Tenderer (s)
Verified
Digitally signed by
SHAIK MAHAMMAD
KHASIM PEERA
Date: 2024.08.08
10:34:47 IST
Reason: IREPS-CRIS
Location: New Delhi
SOUTH CENTRAL RAILWAY
CONTRACT AGREEMENT OF WORKS
Signature of witnesses
(to Signature of Contractor) with address:
TO BE SIGNED AT THE TIME OF AGREEMENT ONLY
Page 2 of 43
STANDARD GENERAL CONDITIONS OF CONTRACT
1 The rates include all lead and if the materials obtained by rail all freight charges
including loading charges.
2 Goods and Services Tax (GST): Goods and Services would be subject to GST Acts and
Rules as applicable from time to time (Ref. PCE/SC’s letter No. W/417/P/GST/2017
dated 09/06/2017 for Para 2.0 to 2.3) GST would replace taxes currently levied and
collected by Centre like Central Excise Duty, Service Tax, Cess and Surcharge so far as
they are related to supply of Goods and Services. GST would also replace State Taxes that
is within GST like state VAT, Central Sales Tax, Entry Tax and State cess and surcharges
so far as they are related to supply of Goods and Services. However, seignorage charges,
building and other worker welfare cess, IT and IT related cess etc., is likely to continue.
2.1 All the bidders/tenderers should ensure that they are GST compliant and their quoted
tax structure/rates are as per GST Law.
2.2 The responsibility for remitting the Service Tax/GST lies with the service providers.
2.3 It is stipulated that all the vendors/service providers should have GST Registration
Number while claiming the Service Tax in their invoices.
2.4 “Seigniorage charges”: (PCE/SC letter No.W.44/B/Vol. VII dt 06-12-2017).
Seigniorage charges/fee for consumption of earth, moorum, sand and other minerals in
works execution as fixed by the State Government from where the minerals are drawn
and payable to them as revised from time to time during currency of contract will be
recovered by the Railway from the contractors, in “on account” and “final bills” and
remitted to the State Government unless exemption obtained to the contrary or proof of
payment of seigniorage charges submitted as indicated below: “Transit
passes/Redestinated Mineral Despatch permits/Royalty Clearance Certificates” issued
by State Govt., officials in token of having paid seigniorage fee. Such
passes/permits/certificates should also indicate the relevant name of work/ contract
Agreement Number. In such cases, the genuineness of such documentary evidence
produced along with proof of payment of seigniorage charges shall be got verified by the
Railway from concerned Mining and Geology department and excess amount recovered,
if any, refunded to the contractor.
Note: The word “Consumption” of various minerals indicated in above clause, inter alia
means “supply” as well.
2.5 The rates quoted by the tenderer shall be inclusive of seigniorage charges on all items of
work to be executed under the contract, applicable as on the last date of submission of
tender. Applicable seigniorage charges shall be indicated by the agency while
participating in the tender.
2.6 For any subsequent increase or decrease in the rates of seigniorage charges,
reimbursement/recovery will be effected to/from the contractor as per the following
provisions.
a) For increase in the rates of seigniorage charges after the last date of submission of
tender:- the increased amount will be recovered by the Railway from the contractors, in
“on account” and “final bills” and remitted to the State Govt., on receipt of State Govt.’s
order to that effect. However, the Railway shall reimburse the additional liability to the
contractor, provided that the work executed falls in the original completion period of the
Page 3 of 43
work or in the extended period granted on administrative grounds i.e. under clause 17-A
(i), (ii) or (iii) of IRSGCC.
As such, claims regarding reimbursement due to increase in seigniorage charges shall not
be payable for works executed in the extended period granted on contractors account
under clause 17(B) of IRSGCC.
b) For any decrease in seigniorage charges or waival, recovery of seigniorage charges will
be made at the rates as prevailing on the last date of submission of tender but remittances
to State Government will be made only at the revised reduced rates. The difference in
amount will be retained by Railway and contractors will not have any claim on this
account.
c) In the event of contractor submitting proof of payment of seigniorage charges also,
adjustment of liability by way of reimbursement/recovery of the difference amount
arrived based on the increased/reduced rates at which actual payments done by the
contractor and the rates of seigniorage as prevailing on the last date of submission of
tender shall be effected on the lines of provisions under 3 a) & b) above.
2.7 No additional amount will be paid or claim entertained on this account by the Railway
contractor shall not have any claim whatsoever as a result of the increase in the rates of
all other taxes, duties, octroi or any form of levies etc., even if incurred on the supply/use
of minerals indicated above.
Note: A register shall be maintained by Engineer in-charge in which the entries should be made
regarding the documentary evidence i.e., Serial No. of “Transit passes/Re-destinated
Mineral dispatch permits/Royalty Clearance certificates” issued by concerned authority
showing proof of payment of Seigniorage charges, for each bill. Relevant entries shall
also be made on receipt of verified document from Mines & Geology department of State
Government against the particular bill and “Transit passes/Redestinated Mineral
dispatch permits/Royalty Clearance certificates” shall be scored out with cross mark
with an endorsement “Accounted against CC/Final bill No ------- dt.----- for Agt No ”.
These passes shall be kept on record for subsequent verification till closure of the
contract. The register should be page numbered and one page allotted one contract. The
reference where the verified “Transit passes/Redestinated Mineral dispatch permits/
Royalty Clearance certificates” is filed shall also be made on the register.
Taxes:
i. The tenderer shall quote the rate by taking in to account all the statutory
duties/taxes applicable to the work up to the date of opening of tender.
ii. Any new impost or revision in the duties/taxes/cess during the original currency
of the contract will be to the Railway’s account subject to production of Govt.,
notification and documentary evidence. This will also be applicable for the work
done during the extended period, if such extension is on Railway’s account.
iii. However, if the extension of contract period is on account of failure of contractor,
no-compensation shall be made towards upward revision or imposition of any
new taxes.
iv. Any benefit on account of downward revision of duty either in original contract
period or during the extended contract period shall be passed on by the contractor
to the Railways.
Page 4 of 43
3 WATER:-A charge of One percent will be made by the Railway for the supply by the
Railway of piped water from existing pipe lines and calculated on the amount of all items
of work (SSR/NS items) appearing in the bills payable to the contractor in respect of
which work such water has been issued to the Contractor and such charges should be
deducted from sums due or payable by the Railway to the Contractor from time to time.
4 In the event of water having to be brought by the Railway to the site of the work in
traveling tanks, the actual freight at Public Tariff rate and all other charges incurred
therein including any demurrage that may be levied shall be payable by the Contractor
and deducted from sums due or payable by the Railways to the Contractor from time to
time.
In addition to the charges of one percent referred to above, if additional pipe lines to
those already existing are called for by the contractor, the cost of the same and all charges
incurred by the Railway in their laying including supervision charges will be paid by the
contractor or the contractor provides and lay his own piping at the discretion of
Divisional Engineer.
5 The Railway does not guarantee work under each items of the Master Schedule. For
example if a gate-lodge or gang huts are to be built between stations and the work order
issued to the sectional contractors additional payment on account of lead or freight
charges for the materials that may have to be brought by rail or by road, will not be
admissible.
6 If there arises any discrepancy between the printed USSR / DSR of CPWD as amended
by addendum and corrigendum slips issued from time to time upto date and the
schedule attached to the Tender pertaining to this work, the former shall be treated as
authentative and binding in all purposes shall prevail.
7 Rubble masonry shall be first sum of Railways Specification No 503 according to South
Central Railway Specification for materials and works. Contractors attention is
particularly invited to dressing of stone as laid down in the Railway’s specification.
8 The Special conditions supplemented to the conditions of Tender and contracts the
General conditions of contract and the notes appearing under the relevant chapter and
sub chapters of the USSR / DSR of CPWD should be considered as part of the contract
papers where the provisions of these conditions are at variance with General Conditions
of Contract these special conditions shall prevail.
8.1 Indian Railways Standard General Conditions of Contract updated with correction slips
issued up to date of inviting tender or as otherwise specified in the tender documents.
8.2 CPWD Specifications Vol I & II updated with correction slips issued up to date of
inviting tender or as otherwise specified in the tender documents, if applicable in the
contract.
8.3 Indian Railways Unified Standard Specification (IRUSS) updated with correction slips
issued up to date of inviting tender or as otherwise specified in the tender documents, if
applicable in the contract.
8.4 Indian Railways Unified Standard Specifications (Works and Material) updated with
correction slips issued up to date of inviting tender or as otherwise specified in the
tender documents, if applicable in the contract.
Page 5 of 43
8.5 IR Specifications/Guidelines updated with correction slips issued up to date of inviting
tender or as otherwise specified in the tender documents.
8.6 Relevant B.I.S. Codes updated with correction slips issued up to date of inviting tender
or as otherwise specified in the tender documents.
8.7 Provisions of Make in India Policy 2017 issued by Govt. of India, as amended from time
to time, shall be followed for consideration of tenders.
9 Performance Guarantee (P.G.):- (Ref-Indian Railways Standard, GCC April 2022)
The procedure for obtaining Performance Guarantee is outlined below:
(a) The successful bidder shall have to submit a Performance Guarantee (PG) within 21
(Twenty one) days from the date of issue of Letter of Acceptance (LOA). Extension of
time for submission of PG beyond 21 (Twenty one) days and upto 60 days from the date
of issue of LOA may be given by the Authority who is competent to sign the contract
agreement. However, a penal interest of 12% per annum shall be charged for the delay
beyond 21(Twenty one) days, i.e. from 22nd day after the date of issue of LOA. Further, if
the 60th day happens to be a declared holiday in the concerned office of the Railway,
submission of PG can be accepted on the next working day.
In all other cases, if the Contractor fails to submit the requisite PG even after 60 days
from the date of issue of LOA, the contract is liable to be terminated. In case contract is
terminated railway shall be entitled to forfeit Bid Security and other dues payable to the
contractor against that particular contract, subject to maximum of PG amount. In case a
tenderer has not submitted Bid Security on the strength of their registration as a Startup
recognized by Department of Industrial Policy and Promotion (DIPP) under Ministry of
Commerce and Industry, DIPP shall be informed to this effect.
The failed Contractor shall be debarred from participating in re-tender for that work.
(b) The successful bidder shall submit the Performance Guarantee (PG) in any of the
following forms, amounting to 05% of the original contract value:
(i) A deposit of Cash;
(ii) Irrevocable Bank Guarantee;
(iii) Government Securities including State Loan Bonds at 5% below the market value;
(iv) Pay Orders and Demand Drafts tendered by any Scheduled Commercial Bank of
India;
(v) Guarantee Bonds executed or Deposits Receipts tendered by any Scheduled
Commercial Bank of India;
(vi) Deposit in the Post Office Saving Bank;
(vii) Deposit in the National Savings Certificates;
(viii) Twelve years National Defence Certificates;
(ix) Ten years Defence Deposits;
(x) National Defence Bonds and
(xi) Unit Trust Certificates at 5% below market value or at the face value whichever is
less. Also, FDR in favour of FA&CAO (free from any encumbrance) may be
accepted.
(c) The Performance Guarantee shall be submitted by the successful bidder after the Letter
of Acceptance (LOA) has been issued, but before signing of the contract agreement. This
P.G. shall be initially valid upto the stipulated date of completion plus 60 days beyond
Page 6 of 43
that. In case, the time for completion of work gets extended, the Contractor shall get the
validity of P.G. extended to cover such extended time for completion of work plus 60
days.
(d) The value of PG to be submitted by the Contractor is based on original contract value
and shall not change due to subsequent variation(s) in the original contract value.
(e) The Performance Guarantee (PG) shall be released after physical completion of the work
based on 'Completion Certificate' issued by the competent authority stating that the
Contractor has completed the work in all respects satisfactorily.
(f) Whenever the contract is rescinded, the Performance Guarantee already submitted for
the contract shall be encashed.
(g) The Engineer shall not make a claim under the Performance Guarantee except for
amounts to which the President of India is entitled under the contract (not withstanding
and/or without prejudice to any other provisions in the contract agreement) in the event
of:
(i) Failure by the Contractor to extend the validity of the Performance Guarantee as
described herein above, in which event the Engineer may claim the full amount of
the Performance Guarantee.
(ii) Failure by the Contractor to pay President of India any amount due, either as
agreed by the Contractor or determined under any of the Clauses/Conditions of
the Agreement, within 30 days of the service of notice to this effect by Engineer.
(iii) The Contract being determined or rescinded under clause 62 of GCC April 2022.
10. Security Deposit: The Security Deposit shall be 05% of the contract value. The Bid
Security submitted by the Contractor with his tender will be retained/encashed by the Railways
as part of security for the due and faithful fulfilment of the contract by the Contractor. Provided
further that, if Contractor submits the Cash or Term Deposit Receipt issued from a Scheduled
commercial bank of India or irrevocable Bank Guarantee Bond from a Scheduled commercial
bank of India, either towards the Full Security Depositor the Part Security Deposit equal to or
more than Bid Security, the Railway shall return the Bid Security, to the Contractor.
Balance of Security Deposit may be deposited by the Contractor in cash or Term Deposit Receipt
issued from Scheduled commercial bank of India or irrevocable Bank Guarantee bond issued
from Scheduled commercial bank of India, or may be recovered at the rate of 06% of the bill
amount till the full Security Deposit is recovered. Provided also that in case of defaulting
Contractor, the Railway may retain any amount due for payment to the Contractor on the
pending "on account bills" so that the amounts so retained (including amount guaranteed
through Performance Guarantee) may not exceed 10% of the total value of the contract.
The Irrevocable Bank Guarantee submitted towards Security deposit shall be initially valid up
to the stipulated date of Maintenance period plus 60 days and shall be extended from time to
time, depending upon extension of contract granted in terms of Clause 17A and 17B of the
Standard General Conditions of Contract.
Page 7 of 43
Note: Security Deposit deposited in cash by the Contractor or recovered from the running bills
of a Contractor or submitted by contractor as Term Deposit Receipt(s) can be
refunded/returned to the contractor, in lieu of irrevocable Bank Guarantee bond issued from
scheduled commercial bank of India, to be submitted by him, for an amount equal to or more
than the already available Security Deposit, provided however that, in a contract of value less
than Rs. 50 Crore, such refund/ return of the already available Security Deposit is permitted up
to two times and in a contract of value equal to or more than Rs. 50 Crore, such refund / return
of the already available Security Deposit is permitted up to three times.
10.1(i) Refund of Security Deposit: Security Deposit mentioned in sub clause (1) above shall be
returned to the Contractor along with or after, the following:
(a) Final Payment of the Contract as per clause 51.(1) and
(b) Execution of Final Supplementary Agreement or Certification by Engineer that Railway has
No Claim on Contractor and
(c) Maintenance Certificate issued, on expiry of the maintenance period as per clause 50.(1), in
case applicable.
10.1(ii) Forfeiture of Security Deposit: Whenever the contract is rescinded as a whole under
clause 62 (1) of GCC April 2022, the Security Deposit already with railways under the contract
shall be forfeited. However, in case the contract is rescinded in part or parts under clause 62 (1)
of GCC April 2022, the Security Deposit shall not be forfeited
10.2 No interest shall be payable upon the Bid Security and Security Deposit or amounts
payable to the Contractor under the Contract, but Government Securities deposited in terms of
Sub-Clause 9(b) will be payable with interest accrued thereon.
11. Force Majeure Clause: (Clause No: 17 in GCC April 2022) If at any time, during the
continuance of this contract, the performance in whole or in part by either party of any
obligation under this contract shall be prevented or delayed by reason of any war, hostility, acts
of public enemy, civil commotion, sabotage, serious loss or damage by fire, explosions,
epidemics/pandemics, strikes, lockouts or acts of God (hereinafter, referred to events)
provided, notice of the happening of any such event is given by either party to the other within
30 days from the date of occurrence thereof, neither party shall by reason of such event, be
entitled to terminate this contract nor shall either party have any claim for damages against the
other in respect of such non-performance or delay in performance, and works under the
contract shall be resumed as soon as practicable after such event has come to an end or ceased
to exist, and the decision of the Engineer as to whether the works have been so resumed or not
shall be final and conclusive, PROVIDED FURTHER that if the performance in whole or in part
of any obligation under this contract is prevented or delayed by reason of any such event for a
period exceeding 120 days, either party may at its option terminate the contract by giving notice
to the other party.
11 A Extension of Time in Contracts: Subject to any requirement in the contract as to
completion of any portion or portions of the works before completion of the whole, the
Contractor shall fully and finally complete the whole of the works comprised in the contract
(with such modifications as may be directed under conditions of this contract) by the date
Page 8 of 43
entered in the contract or extended date in terms of the following clauses: terms of the following
clauses:
(i) Extension due to Modification: If any modifications have been ordered which in the opinion
of the Engineer have materially increased the magnitude of the work, then such extension of the
contracted date of completion may be granted as shall appear to the Engineer to be reasonable
in the circumstances, provided moreover that the Contractor shall be responsible for requesting
such extension of the date as may be considered necessary as soon as the cause thereof shall
arise.
(ii) Extension for Delay not due to Railway or Contractor: If in the opinion of the Engineer, the
progress of work has any time been delayed by any act or neglect of Railway's employees or by
other Contractor employed by the Railway under Sub-Clause (4) of Clause 20 of these
Conditions or in executing the work not forming part of the contract but on which Contractor's
performance necessarily depends or by reason of proceeding taken or threatened by or dispute
with adjoining or to neighbouring owners or public authority arising otherwise through the
Contractor's own default etc. or by the delay authorized by the Engineer pending arbitration or
in consequences of the Contractor not having received in due time necessary instructions from
the Railway for which he shall have specially applied in writing to the Engineer or his
authorized representative then upon happening of any such event causing delay, the Contractor
shall immediately give notice thereof in writing to the Engineer within 15 days of such
happening, but shall nevertheless make constantly his best endeavours to bring down or make
good the delay and shall do all that may be reasonably required of him to the satisfaction of the
Engineer to proceed with the works. The Contractor may also indicate the period for which the
work is likely to be delayed and shall be bound to ask for necessary extension of time.
(iii) Extension for Delay due to Railways: In the event of any failure or delay by the Railway to
hand over the Contractor possession of the lands necessary for the execution of the works or to
give the necessary notice to commence the works or to provide the necessary drawings or
instructions or any other delay caused by the Railway due to any other cause whatsoever, then
such failure or delay shall in no way affect or vitiate the contract or alter the character thereof or
entitle the Contractor to damages or compensation there for, but in any such case, the Railway
may grant such extension or extensions of the completion date as may be considered
reasonable.
The Contractor shall indicate the period for which the work is likely to be delayed and shall
seek extension of time as may be considered necessary under clause 11A(i) or/and 11A(ii) or/
and 11A(iii) above, as soon as the cause thereof shall arise and, in any case, not less than 15 days
before the expiry of the date fixed for completion of the works. The Engineer shall consider the
same and shall grant and communicate such extension of time as in his opinion is reasonable
having regard to the nature and period of delay and the type and quantum of work affected
thereby. No other compensation shall be payable for works so carried forward to the extended
period of time; the same rates, terms and conditions of contract being applicable, as if such
extended period of time was originally provided in the original contract itself.
The non-submission of request for extension or submission of request within less than 15 days
before the expiry of the date fixed for completion of the works, shall make him ineligible for
extension under these sub clauses, subject to final decision of Engineer.
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11 B Extension of Time with Liquidated Damages (LD) for delay due to Contractor: The time
for the execution of the work or part of the works specified in the contract documents shall be
deemed to be the essence of the contract and the works must be completed not later than the
date(s) as specified in the contract. If the Contractor fails to complete the works within the time
as specified in the contract for the reasons other than the reasons specified in Clause 17 and 17A,
the Railway may, if satisfied that the works can be completed by the Contractor within
reasonable short time thereafter, allow the Contractor for further extension of time (Proforma at
Annexure-VII of GCC April 2022) as the Engineer may decide. On such extension the Railway
will be entitled without prejudice to any other right and remedy available on that behalf, to
recover from the Contractor as agreed damages and not by way of penalty for each week or part
of the week, a sum calculated at the rate of Liquidated Damages as decided by Engineer,
between 0.05% to 0.30% of Contract value of the works for each week or part of the week..
For the purpose of this Clause, the contract value of the works shall be taken as value of work as
per contract agreement including any supplementary work order/contract agreement issued.
Provided also, that the total amount of liquidated damages under this condition shall not
exceed 5% of the contract value or of the total value of the item or groups of items of work for
which a separate distinct completion period is specified in the contract.
Provided further, that if the Railway is not satisfied that the works can be completed by the
Contractor and in the event of failure on the part of the contractor to complete the work within
further extension of time allowed as aforesaid, the Railway shall be entitled without prejudice to
any other right or remedy available in that behalf, to appropriate the contractor’s Security
Deposit and rescind the contract under Clause 62 of GCC April 2022, whether or not actual
damage is caused by such default.
NOTE:
In a contract, where extension(s) of time have been allowed once under clause 11B, further
request(s) for extension of time under clause 11A can also be considered under exceptional
circumstances. Such extension(s) of time under clause 11A shall be without any Liquidated
damages, but the Liquidated damages already recovered during extension(s) of time granted
previously under clause 11B shall not be waived. However, Price variation during such
extension(s) shall be dealt as applicable for extension(s) of time under clause 11B.
11 C Bonus for Early Completion of Work: In open tenders having advertised value more than
Rs.50 crore and original period of completion 12 months or more, when there is no reduction in
original scope of work by more than 10%, and no extension granted on either railway or
Contractor’s account, Contractor shall be entitled for a bonus of 1% for each 30 days early
completion of work. The period of less than 30 days shall be ignored while working out bonus.
The maximum bonus shall be limited to 5% of original contract value. The completion date shall
be reckoned as the date of issuance of completion certificate by Engineer.
Page 10 of 43
12 Price Variation Clause (PVC):
12.1 Applicability: Price Variation Clause (PVC) shall be applicable only in tender having
advertised value above Rs. 2 Crores. Provided further that, in a contract where PVC is
applicable, following shall be outside the purview of price adjustments (i.e. shall be excluded
from the gross value of the work for the purpose of price variation):
a) Materials supplied by Railway to the Contractors, either free or at fixed rate;
b) Any extra item(s) included in subsequent variation falling outside the purview of the
Bill(s) of Quantities of tender, under clause 39. (1)(b) of GCC April 2022, unless
applicability of PVC and ‘Base Month’ has been specially agreed, while fixing the rates of
such extra item(s).
12.2 Base Month: The Base Month for ‘Price Variation Clause’ shall be taken as the one month
prior to closing of tender, unless otherwise stated elsewhere. The quarter for applicability of
PVC shall commence from the month following the Base month. The Price Variation shall be
based on the average Price Index of the quarter under consideration.
12.3 Validity:
Rates accepted
by Railway Administration shall hold good till completion of work and no additional
individual claim shall be admissible except:
No. Component
6C, 8C & 9C
6B, 8B & 9B
1A, 2 & 3A
8D & 9D
8E & 9E
4A
5A
6A
8A
9A
7
1 Fixed * 15 15 15 15 15 15 15 15 15 15 15
2 Labour Lc 20 25 30 20 50 20 20 0 0 10 25
3 Steel Sc 0 0 0 0 0 0 0 85 0 50 0
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4 Cement Cc 0 0 15 0 0 0 0 0 85 0 0
5 Plant
Machinery & PMc 30 15 5 20 15 20 30 0 0 10 30
Spares
6 Fuel &
Fc 25 15 5 15 15 20 15 0 0 10 20
Lubricants
7 Other
Mc 10 15 30 30 5 25 20 0 0 5 10
materials
8 Detonators
Ec 0 15 0 0 0 0 0 0 0 0 0
& Explosive
Total 100 100 100 100 100 100 100 100 100 100 100
* It shall not be considered for any price variation.
The classification mentioned in the table above represents following type of item(s) in the
work(s) –
1 Earthwork in Formation
1A All Item(s) excluding 1B or/and 1C
1B Item(s) for supply of Steel
1C Item(s) for supply of Cement
2 Ballast Supply Works
3 Tunnelling Works (Without Explosives)
3A All Item(s) excluding 3B or/and 3C or/and 3D or/and 3E
3B Item(s) for supply of Steel
3C Item(s) for supply of Cement or/and Grout
3D Item(s) for Fabrication & Erection of Structures including supply of Steel
3E Item(s) for Fabrication & Erection of Structures excluding supply of Steel.
4 Tunnelling Works (With explosives)
4A All Item(s) excluding 4B or/and 4C or/and 4D or/and 4E
4B Item(s) for supply of Steel
4C Item(s) for supply of Cement or/and Grout
4D Item(s) for Fabrication & Erection of Structures including supply of Steel
4E Item(s) for Fabrication & Erection of Structures excluding supply of Steel.
5 Building Works
5A All Item(s) excluding 5B or/and 5C or/and 5D or/and 5E
5B Item(s) for supply of Steel
5C Item(s) for supply of Cement
5D Item(s) for Fabrication & Erection of Structures including supply of Steel
5E Item(s) for Fabrication & Erection of Structures excluding supply of Steel.
6 Bridges & Protection work
6A All Item(s) excluding 6B or/and 6C or/and 6D or/and 6E
6B Item(s) for supply of Steel
6C Item(s) for supply of Cement
6D Item(s) for Fabrication, Assembly, Erection& Launching of Girders including supply of
Steel
6E Item(s) for Fabrication, Assembly, Erection &Launching of Girders excluding supply of
Steel
Page 12 of 43
7 Permanent Way linking
8 Platform, Passenger Amenities
8A All Item(s) excluding 8B or/and 8C or/and 8D or/and 8E
8B Item(s) for supply of Steel item/fittings
8C Item(s) for supply of Cement Item
8D Item(s) for Fabrication & Erection of Structures including supply of Steel
8E Item(s) for Fabrication & Erection of Structures excluding supply of Steel
9 Any Other Works not covered in Classification 1 to 8
9A All Item(s) excluding 9B or/and 9C or/and 9D or/and 9E
9B Item(s) for supply of Steel
9C Item(s) for supply of Cement or/and Grout
9D Item(s) for Fabrication & Erection of Structures including supply of Steel
9E Item(s) for Fabrication & Erection of Structures excluding supply of Steel
12.7 Formulae: The Amount of variation in prices in various components (labour, material
etc.) shall be worked out by the following formulae:
(i) L = (W or WSF or WF or WSFL or WFL) x(LQ – LB) x LC
LB X 100
(ii) M = (W or WSF or WF or WSFL or WFL) x (MQ – MB) x MC
MB X 100
(iii) F = (W or WSF or WF or WSFL or WFL) x (FQ – FB) x FC
FB X 100
(iv) E = (W) x (EQ – EB) x EC
EB X 100
(v) PM = (W or WSF or WF or WSFL or WFL) x (PMQ-PMB) x PMC
PMB X 100
(vi) S = (W or WS or WSF) x (SQ – SB) X SC
SB X 100
(vii) C = (W or WC) x (CQ – CB) X Cc
CB X 100
Where,
L Amount of price variation in Labour
M Amount of price variation in Materials
F Amount of price variation in Fuel
E Amount of price variation in Explosives
PM Amount of price variation in Plant, Machinery and Spares
S Amount of price variation in Steel Supply Item
C Amount of price variation in Cement Supply
T Percentage variation payable on the gross value of bill of Concreting (Bill(s) of
Quantities for concrete items)
R Percentage variation payable on the gross value of bill of Ferrous Items (Bill(s) of
Quantities for ferrous items)
N Percentage variation payable on the gross value of bill of Non-Ferrous Items
(Bill(s) of Quantities for non-ferrous items)
I Percentage variation payable on the gross value of bill of Insulator (Bill(s) of
Page 13 of 43
Quantities for Insulator items)
G Percentage variation payable on the gross value of bill of General Works (Bill(s) of
Quantities for General items)
Er Percentage variation payable on the gross value of erection (Bill(s) of Quantities for
Erection Item)
LC % of Labour Component in the item(s)
Page 14 of 43
the base period.
EQ Index number of Monthly Whole Sale Price Index for the category ‘Explosive’ of (g).
Manufacture of other chemical products under (J) MANUFACTURE OF CHEMICALS
AND CHEMICAL PRODUCTS, published by Office of Economic Adviser, Govt. of India,
Govt. of India, Ministry of Commerce & Industry, Department of Industrial Policy &
Promotion (DIPP), for the average price index of 3 months of the quarter under
consideration.
PMB Index Number of Wholesale Prices in India by Groups and Sub Groups (Averages) for
‘Manufacture of machinery for mining, quarrying and construction’– published in RBI
(Reserve Bank of India) Bulletin, for the base period.
PMQ Index Number of Wholesale Prices in India by Groups and Sub Groups (Averages) for
‘Manufacture of machinery for mining, quarrying and construction’– published in RBI
(Reserve Bank of India) Bulletin, for the average price index of 3 months of the quarter
under consideration.
SB The average rate provided by the Joint Plant Committee for the relevant category of steel
item as mentioned in Clause 46A.9; for the base period.
SQ The average rate provided by the Joint Plant Committee for the relevant category of steel
item as mentioned in Clause 46A.9; for the 3 months of the quarter under consideration.
CB Index No. of Wholesale Price Index of sub-group Cement, Lime & Plaster as published in
RBI Bulletin for the base period
CQ No. of Wholesale Price Index of sub-group Cement, Lime & Plaster as published in RBI
Bulletin for the average price index of the 3 months of the quarter under consideration
RT IEEMA price index for Steel Blooms (size 150mmx150mm) for the month which is two
months prior to date of inspection of material.
RO IEEMA price index for Steel Blooms (size 150mmx150mm)for the month which is one
month prior to date of opening of tender.
PT IEEMA price index for Copper wire rods for the month which is two months prior to date
Of inspection of material.
PO IEEMA price index for Copper wire rods for the month which is one month prior to date of
opening of tender.
ZT IEEMA price index for Zinc for the month which is two months prior to date of inspection
of material
ZO IEEMA price index for Zinc for the month which is one month prior to date of opening of
tender
IT RBI wholesale price index for the sub-group “Insulators” for the month which is two
months prior to date of inspection of material
IO RBI wholesale price index for the sub-group “Insulators” for the month which is one
month prior to date of opening of tender
12.8 The demands for escalation of cost shall be allowed on the basis of provisional indices as
mentioned above in Clause 12.7. Any adjustment needed to be done based on the finally
published indices shall be made as and when they become available.
12.9 (1) Relevant categories of steel for the purpose of operating Price Variation formula as
mentioned in this Clause shall be as under:
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SL Classification Rates to be used for calculating SQ or SB
1 Reinforcement bars and other rounds ‘Average of per tonne rates of 10mm dia TMT &
25mm dia TMT; confirming IS1786; Fe 500
2 All types and sizes of angles, Average of per tonne rates of ‘Angle 75x75x6mm,
channels and joists Mild Steel Plate 10mm thickness and Channel
150x75mm; confirming IS2062, E250 Gr “A”
3 All types and sizes of plates Average of per tonne rates of ‘MS Plates 10mm
thickness and 25mm thickness; confirming IS2062,
E250 Gr “A”
4 Any other section of steel not covered Average of price for the 3 categories covered under
in the above categories SL 1, 2 & 3 in this table.
(2). Relevant city for referring “JPC (Joint Plant Committee)”rates of steel items (SQ /SB) in
different Zonal Railways shall be as under :
SL City Railway
1 Delhi Northern , North Central, North Eastern, North Western
2 Kolkata Eastern, East Central, East Coast, Northeast Frontier, South Eastern,
Southeast Central
3 Mumbai Central, Western, West Central
4 Chennai Southern, South Central & South Western
If as per tender conditions, PVC is applicable in the contract, same shall remain applicable irrespective of
Variation of quantities beyond Agreement value. PVC during extended period of contract shall be
governed by para 46A.10 of GCC.
Page 16 of 43
13 DEDUCTION OF INCOME TAX AT SOURCE:
In terms of new Section 194-C inserted by the Finance Act 1972 , in the income tax Act
1961 the Railway shall at the time of arranging payments to the contractor and/or
subcontractor (in the case of sub-contractor only when the Railway is responsible for
payment of consideration to him under the contract) for carrying out any work
(including supply of labour for carrying out any work) under the contract be entitled to
deduct income tax at source on Income comprised in the sum of such payments. The
deduction towards income tax to be made at source from the payments due to non-
residents shall continue to be governed by Section 195 of the Income Tax Act 1961. No
Income Tax will be deducted by the Railway on payments made for supply of materials
where such value of supply portion is distinct and ascertainable such as supply of
Timber, tiles, bricks, ballast including track/ballast etc. The deductions towards Income
Tax to be made at source from the payment due to non-residents shall continue to be
governed by Section 195 of the Income Tax Act 1961.
14 LIABILITY OF CONTRACTOR(S) - ANY DAMAGE SUSTAINED BY RAILWAYS
DURING ACCIDENTS ETC., CAUSED DUE TO CONTRACTOR(S) FAILURES,
FAULT OR NEGLIGENCE.
Railway will post an Engineer-in-charge who may be SSE/SE/JE or Supervisor of any
grade at site for Technical Supervision of the work. This Engineer-in-charge will be
responsible for safety of the traffic. The work shall be executed by the contractor in a
workman like manner to the satisfaction of the Engineer-in-charge. The Contractor and
his labour shall be guided by the instructions of the Engineer-in-Charge. In the event of
any accident occurring at the work site and it is established during the departmental
enquiry by the Railway or by Statutory enquiry of CRS, that the accident occurred wholly
or partly due to any act tantamounting to negligence on the part of the contractor or his
labour in not adhering to the instructions of the engineer-in-charge, the contractor shall
render himself liable for damages and also legal prosecution if loss of life is involved.
15. PERIOD OF COMPLETION:
15.1 The Railway expects that a resourceful and experienced contractor should be able to
complete the work in all respects within the period as specified in the Tender Notice and
in the Schedule where items of work are furnished from the date of letter of acceptance
of the Tender.
15.2 Extension of time of completion will be governed by clause 17 of General
Conditions of Contract. However, while granting the extension of time under clause
17(B) of GCC, a token penalty as deemed fit based on the circumstances of the case can
be imposed on the contractor without prejudice to other rights of Railway
Administration as provided under GCC.
16. Maintenance of Works: The Contractor shall at all times during the progress and
continuance of the works and also for the period of maintenance specified in the Tender
Form after the date of issue of the certificate of completion by the Engineer or any other
earlier date subsequent to the completion of the works that may be fixed by the Engineer,
be responsible for and effectively maintain and uphold in good substantial, sound and
perfect condition all and every part of the works and shall make good from time to time
and at all times as often as the Engineer shall require, any damage or defect that may
Page 17 of 43
during the above period arise in or be discovered or be in any way connected with the
works, provided that such damage or defect is not directly caused by errors in the contract
documents, act of providence or insurrection or civil riot, and the Contractor shall be liable
for and shall pay and make good to the Railway or other persons legally entitled thereto
whenever required by the Engineer so to do, all losses, damages, costs and expenses they
or any of them may incur or be put or be liable to by reasons or in consequence of the
operations of the Contractor or of his failure in any respect.
17.2(i) Unless otherwise specified in the special conditions of the contract, the accepted
variation in quantity of each individual item of the contract would be upto 25% of the
quantity originally contracted, except in case of foundation work (in which no variation
limit shall apply). However, the rates for the increased quantities shall be as per sub- para
(iii) below.
(ii) The Contractor shall be bound to carry out the work at the agreed rates and shall not be
entitled to any claim or any compensation whatsoever upto the limit of 25% variation in
quantity of individual item of works.
(iii) In case an increase in quantity of an individual item by more than 25% of the
agreement quantity is considered unavoidable, then same shall be executed at following
rates
a. Quantities operated in excess of 125% but upto 140% of the agreement quantity of the
concerned item, shall be paid at 98% of the rate awarded for that item in that particular
tender;
b. Quantities operated in excess of 140% but upto 150% of the agreement quantity of the
concerned item shall be paid at 96% of the rate awarded for that item in that particular
tender;
Page 18 of 43
c. Variation in quantities of individual items beyond 150% will be avoided and would be
permitted only in exceptional unavoidable circumstances and shall be paid at 96% of the
rate awarded for that item in that particular tender.
d. Variation to quantities of Minor Value Item: The limit for varying quantities for minor
value items shall be 100% (as against 25% prescribed for other items). A minor value item
for this purpose is defined as an item whose original agreement value is less than 1 % of
the total original contract value.
d.(I). Quantities operated upto and including 100% of the agreement quantity of the
concerned minor value item, shall be paid at the rate awarded for that item in that
particular tender;
d.(II). Quantities operated in excess of 100% but upto 200% of the agreement quantity of
the concerned minor value item, shall be paid at 98% of the rate awarded for that item
in that particular tender;
d.(III). Variation in quantities of individual minor value item beyond 200% will be
avoided and would be permitted only in exceptional unavoidable circumstances and
shall be paid at 96% of the rate awarded for that item in that particular tender.
d.(IV). In case of earthwork items, the variation limit of 25% shall apply to the gross
quantity of earthwork items and variation in the quantities of individual classifications
of soil shall not be subject to this limit.
d.(V). As far as Standard Schedule of Rates (SSOR) items are concerned, the variation
limit of 25% would apply to the value of SSOR schedule(s) as a whole and not on
individual SSOR items. However, in case of Non Standard Schedule of Rates (SSOR)
items, the limit of 25% would apply on the individual items irrespective of the manner
of quoting the rate (single percentage rate or individual item rate).
17.3 Valuation of Variations: The enlargements, extensions, diminution, reduction,
alterations or additions referred to in Sub-Clause (2) of this Clause shall in no degree
affect the validity of the contract; but shall be performed by the Contractor as provided
therein and be subject to the same conditions, stipulations and obligations as if they had
been originally and expressively included and provided for in the Specifications and
drawings and the amounts to be paid therefor shall be calculated in accordance with the
accepted Bill(s) of Quantities. Any extra items/quantities of work falling outside the
purview of the provisions of Sub-Clause (2) above shall be paid for at the rates
determined under Clause-39 of these Conditions.
17.4 In Zonal contracts the variations in the contract should not exceed 25% of the contract
value.
17.5 Overall agreement value, arrived at by adding the positive variation and subtracting the
negative variation from the accepted value of the contract, shall be taken for deciding the
competence of the sanction (Authority: RB ltr No: 2017/Trans/01/Policy dated
27/03/18)
17.6 In the event of any reduction in the quantity to be executed for any reasons what so
ever, the contractor shall not be entitled to any compensation but shall be paid
only for the actual amount of work done. The contractor is bound to notify the
Engineer at least seven days before the necessity arises for the execution of any item
in excess of 25% of the quantity provided in the agreement.
Page 19 of 43
17.7 In case the contractor fails to attend the meeting after being notified to do so or in the
event of no settlement being arrived at the Railway shall be entitled to execute the extra
work by other means and the contractor shall no claim for loss or damage that may
result from such procedure.
17.8 The aspect of vitiation of tender with respect to variation in quantities should be
checked and avoided. In case of vitiation of tender (both for increase as well as
decrease of value of contract agreement) sanction of competent authority as per single
tender should be obtained. In addition to the above, the partial modification is as
furnished below (RB Lr No: 2017/Trans/01/Policy/New Delhi dtd 08/02/2018), it has
been decided that as a result of variations, a contract shall be considered “vitiated”
only when, the following percentage variation in contract value between tenderers
are noticed to have been exceeded.
S.No Value of Contract Percentage difference between present
contractor and new L-1 as a result of
variation. (percentage shall be calculated
with base as the revised contract quantities
multiplied by the rates of the present
contractor)
1 Small value contracts (Tender
10%
value less than Rs.50 Lakh)
2 Other than small value
contracts (Tender value equal 5%
to or more than Rs.50 lakh)
18. Provision of Efficient and Competent Staff at Work Sites by the Contractor:
18.1 The Contractor shall place and keep on the works at all times efficient and competent
staff to give the necessary directions to his workmen and to see that they execute their
work in sound & proper manner and shall employ only such supervisors, workmen &
labourers in or about the execution of any of these works as are careful and skilled in the
various trades.
18.2 The Contractor shall at once remove from the works any agents, permitted subcontractor,
supervisor, workman or labourer who shall be objected to by the Engineer and if and
whenever required by the Engineer, he shall submit a correct return showing the names
of all staff and workmen employed by him.
18.3 In the event of the Engineer being of the opinion that the Contractor is not employing on
the works a sufficient number of staff and workmen as is necessary for proper
completion of the works within the time prescribed, the Contractor shall forthwith on
receiving intimation to this effect deploy the additional number of staff and labour as
specified by the Engineer within seven days of being so required and failure on the part
of the Contractor to comply with such instructions will entitle the Railway to rescind the
contract under Clause 62 of these conditions.
18A. Deployment of Qualified Engineers at Work Sites by the Contractor:
18.A.1 The Contractor shall also employ qualified Graduate Engineer(s) or equivalent, or
qualified Diploma Engineer(s), as prescribed in the tender documents.
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18.A.2 In case the Contractor fails to employ the Engineer, as aforesaid in Para 18A.1, he shall be
liable to pay liquidated damages at the rates, as prescribed in the tender documents.
18A.3 No. of qualified Engineers required to be deployed by the Contractor for various activities
contained in the works contract shall be specified in the tender documents as
Special Condition of Contract.
The contractor shall employ the following technical staff during the execution of this work.
18.4. One qualified Graduate Engineer when the cost of the work to be executed is Rs.200
lakhs and above.
18.5 One qualified Diploma Holder Engineer when the cost of the work to be executed is
more than Rs.25 lakhs, but less than Rs.200 lakhs.
18.6 These Engineers shall be available throughout the period when the work is progress
and not merely available for taking the instructions. In case the contractor fails to
employ the qualified Engineer, as aforesaid in the para No: 18.1 & 18 .2, he, in terms
of provisions in the GCC, shall be liable to pay an amount of Rs.40,000/- (Rs. Forty
thousand only) and Rs.25,000/- (Rs. Twenty five thousand only) for each month or
part thereof for the default period respectively.
The decision of the Engineer-in-charge as to the period for which the required technical
staff was not employed by the contractor and as to the reasonableness of the amount to
be deducted on this account shall be final and binding on the contractor. (The above
clause is not applicable for contracts exclusively for Welding of Rail joints in terms of
CTE/SC letter No.W.509/P/Vol.X dt.6-4-2006).
Page 21 of 43
and all such other incidental charges or contingencies as may have been specially
provided for in the Specifications.
However, if rates of existing GST or cess on GST for Works Contract is increased or any
new tax /cess on Works Contract is imposed by Statute after the date of opening of
tender but within the original date of completion/date of completion extended under
clause 17 & 17A (GCC April 2022) and the Contractor thereupon properly pays such
taxes/cess, the Contractor shall be reimbursed the amount so paid.
Further, if rates of existing GST or cess on GST for Works Contract is decreased or any
tax/cess on Works Contract is decreased / removed by Statute after the date of opening
of tender, the reduction in tax amount shall be recovered from Contractor’s bills/Security
Deposit or any other dues of Contractor with the Government of India.
20 A Provisions of Contract Labour (Regulation and Abolition) Act, 1970:
(1) The Contractor shall comply with the provision of the contract labour (Regulation and
Abolition) Act, 1970 and the Contract labour (Regulation and Abolition) Central Rules
1971 as modified from time to time, wherever applicable and shall also indemnify the
Railway from and against any claims under the aforesaid Act and the Rules.
(2) The Contractor shall obtain a valid license under the aforesaid Act as modified from time
to time before the commencement of the work and continue to have a valid license until
the completion of the work. Any failure to fulfill the requirement shall attract the penal
provision of the Act.
(3) The Contractor shall pay to the labour employed by him directly or through
subcontractors the wages as per provision of the aforesaid Act and the Rules wherever
applicable. The Contractor shall notwithstanding the provisions of the contract to the
contrary, cause to be paid the wages to labour, indirectly engaged on the works
including any engaged by subcontractors in connection with the said work, as if the
labour had been immediately employed by him.
(4) In respect of all labour directly or indirectly employed in the work for performance of the
Contractor's part of the contract, the Contractor shall comply with or cause to be
complied with the provisions of the aforesaid Act and Rules wherever applicable.
(5) In every case in which, by virtue of the provisions of the aforesaid Act or the rules, the
Railway is obliged to pay any amount of wages to a workman employed by the
Contractor or his sub-contractor in execution of the work or to incur any expenditure on
account of the contingent, liability of the Railway due to the Contractor's failure to fulfill
his statutory obligations under the aforesaid Act or the rules, the Railway will recover
from the Contractor, the amount of wages so paid or the amount of expenditure so
incurred and without prejudice to the rights of the Railway under the Section 20, Sub-
Section (2) and Section 2, Sub-Section (4) of the aforesaid Act, the Railway shall be at
liberty to recover such amount or part thereof from Contractor’s bills/Security Deposit or
any other dues of Contractor with the Government of India. The Railway shall not be
bound to contest any claim made against it under Sub-Section (1) of Section 20 and Sub-
Section (4) of Section 21 of the aforesaid Act except on the written request of the
Contractor and upon his giving to the Railway full security for all costs for which the
Railway might become liable in contesting such claim. The decision of the Chief Engineer
regarding the amount actually recoverable from the Contractor as stated above shall be
final and binding on the Contractor.
Page 22 of 43
20 B Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952:The
Contractor shall comply with the provisions of Para 30 & 36-B of the Employees
Provident Fund Scheme, 1952; Para 3 & 4 of Employees’ Pension Scheme, 1995; and Para
7 & 8 of Employees Deposit Linked Insurance Scheme, 1976; as modified from time to
time through enactment of “Employees Provident Fund & Miscellaneous Provisions Act,
1952”, wherever applicable and shall also indemnify the Railway from and against any
claims under the aforesaid Act and the Rules.
20 C (i) Contractor is to abide by the provisions of various labour laws in terms of above clause
54, 55, 55-A and 55-B of Indian Railways Standard General Conditions of Contract. In
order to ensure the same, an application has been developed and hosted on website
‘www.shramikkalyan.indianrailways.gov.in’. Contractor shall register his firm/company
etc. and upload requisite details of labour and their payment in this portal. These details
shall be available in public domain. The Registration/ updation of Portal shall be done as
under:
(a) Contractor shall apply for onetime registration of his company/firm etc. in the
Shramikkalyan portal with requisite details subsequent to issue of Letter of
Acceptance. Engineer shall approve the contractor’s registration in the portal
within 7 days of receipt of such request.
(b) Contractor once approved by any Engineer, can create password with login ID
(PAN No.) for subsequent use of portal for all Letter of Acceptances (LoAs) issued
in his favour.
(c) The contractor once registered on the portal, shall provide details of his Letter of
Acceptances (LoAs) / Contract Agreements on shramikkalyan portal within 15
days of issue of any LoA for approval of concerned Engineer. Engineer shall
update (if required) and approve the details of LoA filled by contractor within 7
days of receipt of such request.
(d) After approval of LoA by Engineer, contractor shall fill the salient details of
contract engaged in the contract and ensure updating of each wage payment to
them on shramikkalyan portal on monthly basis.
(e) It shall be mandatory upon the contractor to ensure correct and prompt uploading
of all salient details of engaged contractual labour & payments made thereof after
each wage period.
(ii) While processing payment of any ‘On Account Bill’ or ‘Final Bill’ or release of ‘Advances’
or ‘Performance Guarantee / Security deposit’, contractor shall submit a certificate to
the Engineer or Engineer’s representatives that “I have uploaded the correct details of
contract labours engaged in connection with this contract and payments made to them
during the wage period in Railway’s Shramikkalyan portal at
‘www.shramikkalyan.indianrailways.gov.in’ till Month, Year.”
20 D Provisions of “The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996” and “The Building and Other
Construction Workers’ Welfare Cess Act, 1996”:
The tenderers, for carrying out any construction work, shall get themselves registered
with the Registering Officer under Section-7 of the Building and Other Construction
Workers Act, 1996 and rules made thereto by the concerned State Govt., and submit
certificate of Registration issued from the Registering Officer of the concerned State Govt.
Page 23 of 43
(Labour Dept.). The Cess shall be deducted from contractor’s bills as per provisions of
the Act.
21.(1) Contractor to Supply Water for Works: Unless otherwise provided in the Contract, the
Contractor shall be responsible for the arrangements to obtain supply of water necessary
for the works.
21.(2) Water Supply from Railway System: The Railway may supply to the Contractor part or
whole of the quantity of the water required for the execution of works from the Railway's
existing water supply system at or near the site of works on specified terms and
conditions and at such charges as shall be determined by the Railway and payable by the
Contractor, provided that the Contractor shall arrange, at his own expense, to effect the
connections and lay additional pipelines and accessories on the site and that the
Contractor shall not be entitled to any compensation for interruption of failure of the
water supply.
21.(3) Water Supply by Railway Transport: In the event of the Railway arranging supply of
water to the Contractor at or near the site of works by travelling water tanks or other
means, the freight and other charges incurred thereby, including demurrage charges that
may be levied, shall be paid by the Contractor in addition to the charges referred to in
Sub-Clause (2) of the Clause provided that the Contractor shall not be entitled to any
compensation for interruption or failure of the water supply.
21.(4)(a) Contractor to Arrange Supply of Electric Power for Works: Unless otherwise
provided in the contract, the Contractor shall be responsible for arrangements to obtain
supply of Electric Power for the works.
(b) Electric Supply from the Railway System: The Railway may supply to the
Contractor part or whole of the electric power wherever available and possible, required
for execution of works from the Railway's existing electric supply systems at or near the
site of works on specified terms and conditions and such charges as shall be determined
by the Railway and payable by the Contractor provided the cost of arranging necessary
connections to the Railway's Electric Supply systems and laying of
underground/overhead conductor, circuit protection, electric power meters,
transmission structure, shall be borne by the Contractor and that the Contractor shall not
be entitled to any compensation for interruption or failure of the Electric supply system.
22.0 DISASTER MANAGEMENT
In case of accidents/natural calamities involving human lives, the Railway
administration can draft vehicles and equipment of the contractor however, for
payment purpose, the item will be operated as additional NS item duly negotiating the
rates.
22.1 SAFETY PRECAUTIONS TO BE TAKEN AT WORK SITE.
The contractor shall not allow any road vehicle belonging to his or his suppliers etc, to
ply in railway land next to the running line. If for execution of certain works viz.
earth work for parallel railway line and supply of ballast for new or existing rail line
gauge conversion etc, road vehicles are necessary to be used in railway land next to
the railway line, the contractor shall apply to the Engineer- in- charge for permission
giving the type and number of individual vehicles, names and license particulars of the
drivers location duration and timings for such work/ movement. The Engineer In-
Page 24 of 43
charge or his authorized representative will personally counsel , examine and
certify the road vehicle drivers contractor’s flagmen and supervisor to be deployed
on the work location, to be deployed on the work location period and timing to the
work .This permission will be subject to the following obligatory conditions.
22.2 Road vehicles can ply along the track after suitable cordoning of track with minimum
distance of 6 m from the center of the nearest track. For plying of road vehicles
during night hours, adequate measures to be communicated in writing along with a
site sketch to the contractor/contractor’s representative and controlling engineer/
supervisors in charge of the work including officers and the in-charge of the section“.
22.3 Nominated vehicles and drivers will be utilized for work in the presence of at
least one flagman and one supervisor certified for such work.
22.4 The vehicles shall ply 6 mtr. clear of track. Any movement/work at less than 6mtrs
and up to minimum 3.5m clear of track centre, shall be done only in the presence of
railway employee authorized by the Engineer-in-charge. No part of the road vehicle
will be allowed at less than 3.5 mtr. from track centre. Cost of such railway employee
shall be borne by the Railways.
22.5 The contractor shall remain fully responsible for ensuring safety and incase of any
accident, shall bear cost of all damages to this equipment and men and also damages to
railway and its passengers.
22.6 Engineer-in-charge may impose any other conditions necessary for a particular work or
site.
22.7 The Contractor at all times shall adopt safe working methods to ensure safety of
structures, equipment and labour at site of works.
22.8 The contractor shall not start any work without the presence of Railway supervisor
or his representative authorized by ADEN-in-charge and Contractor’s supervisor at site.
22.9 The methodology proposed to be adopted by the Contractor is to be approved by
Engineer-in- charge with a view to ensure of safety of trains, passengers and
workers and he shall also ensure that the methods and arrangements are actually
available at site before start of the work and the contractor’s supervisors and the
workers have clearly understood the safety aspects and requirements to be adopted /
followed while executing the work.
22.10 Survey of site by Supervisor of contractor and Railway’s Supervisor is to be done to
assess precautions to be taken at site for working of trains and materials required for
protection.
22.11 The list of permissible / sanctioned infringements to moving dimensions for the
section shall be made available where work is to be done to execute the works
without infringing the moving dimensions.
22.12 Competency certificate issued by ADEN-in-charge with the Contractor’s supervisor
at site should be available in the format given in Annexure-I.
22.13 The detailed plans for safe execution of works, duly approved by the Division
should be available for undertaking execution of such works which have bearing on
moving dimensions, especially those works close to the running lines and fixed
structures on brides, inside tunnels etc.,
22.14 Look-out caution, speed restrictions as well as traffic block shall be ensured where
necessary for execution of works affecting running lines.
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22.15 Mobile phones or Walky-Talkie sets where necessary should be provided at work sites.
22.16 PRECAUTIONARY MEASURES TO BE TAKEN AT WORK SITE AWAY FROM
THE TRACK:-
22.17 Trenches and foundation pits should be adequately and securely fenced, provided with
proper caution signs and marked with red lights at suitable intervals during night to
avoid accidents. Adequate protective measures should be taken to see that the
excavation operations do not affect or damage adjoining existing buildings.
22.18 Proper precautions should be taken for safety of persons and adjoining property before
undertaking any blasting operation. Red flags should be prominently displayed
around the area to be blasted. All the people on the work except those, who
actually light the fuses, should be withdrawn to a safe distance of not less than 300
meters from the blasting site. Recommendations given in I.S. 4081:1986 should be
followed for safety during various operations involved in the process of blasting.
22.19 Suitable scaffold should be provided for workman for all works than cannot be safely
done from the ground or from solid constructions except such works which can be done
safely from ladders for a short period. When a ladder is used, extra labourers
should be engaged for holding the ladder and if the ladder is used for carrying
materials as well, suitable footholds and handholds should be provided on the ladder
and ladder should be given an inclination not steeper than 4 to 1 ( Four vertical to one
Horizontal).
22.20 Workers employed on mixing asphalt materials, cement and lime mortars should be
provided with protective hand and footwear and protective goggles.
22.21 Workers employed in whitewashing and stacking of cement bags or any materials
which injurious to the eyes should be provided with protective goggles.
22.22 Workers engaged in welding works should be provided with welders protective eye-
shields, single piece cotton cloth and shoes.
22.23 Stone breakers should be provided with protective goggles, leg-guards and protective
clothing and they should be seated at sufficiently safe distance from each other.
22.24 A fully equipped First-Aid Box should be maintained at site by the Agency with at
least one person fully trained to give First-Aid.
22.25 Inflammable articles such as Petrol, oil etc., should be stored separately from other
materials and all prescribed precautions as per the Indian Explosive Act should be
taken.
22.26 In the Bridge work, Track works, repairs to tunnel and demolition of structures
through contractual Agency, the safe working and ensuring safety of workman
employed should be specifically laid down in the contract itself.
23.0 PRECAUTIONARY MEASURES TO BE TAKEN AT WORK SITE IN VICINITY OF
TRACK:-
23.1 Drivers of trains must be served with caution order to look out for any obstruction at the
place of work.
23.2 Arrangements should be made to protect the track in case of emergency at work site.
23.3 Before the start of the work, the land strip adjacent to the running track where road
vehicle / machinery is to ply for the work shall be demarcated by lime in advice at
the appropriate distance from the centre of existing track in consultation with the
Railway Supervisor [Annexure-IV(A)]. Sketch showing the location of marking and
barricading along the full length of the work area should be done as per the sketch
given in [Annexure-IV (B)]. This will enable the workmen posted at the site and also
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the lorry drivers to have clear guidelines on the movement of vehicles.
23.4 Movement of Lorries near the track should be prohibited during night. In case it is
unavoidable adequate protective measures including lighting must be ensured in the
complete work area for the safety of the Public and Passengers. Also additional staff
shall be posted as necessary for night working.
23.5 Work should not be allowed to progress without the prior approval of the Engineer-in-
charge in case movement of vehicles close to the track is involved.
23.6 Machines and vehicles should ply 6 meters (from Track centre ) in case movement at
less than 6 meters away from the track is inescapable, it should be permitted in the
presence of Railway employee authorized by the Engineer-in-charge.
23.7 Contractor’s representative should be issued a certificate by ADEN to the effect that
they have acquired sufficient knowledge about the safety precautions that are
needed to be followed while working near the track.
23.8 The worksite shall be suitably demarcated to keep public and passengers away from
the work area. Necessary sign boards such as Work in progress etc., shall be provided
at appropriate locations to warn the Public / passengers.
23.9 Check lists given in Annexure-II & III shall be used to ensure that all the requisite
measures have been taken before start of work and work in progress.
23.10 All temporary arrangements required to be made during execution of work shall be
made in such a manner that moving dimensions do not infringe. Necessary checks
shall be exercised by Site in-charge from time to time.
24.0 WORKING OF CONTRACTOR’S VEHICLES AT SITE
24.1 INDIAN RAILWAYS PERMANENT WAY MANUAL 1986 –(EDITION)
ADVANCE CORRECTION SLIP No.95 dt 30-06-04 Etc., 826 (i)- The contractor shall
not start any work without the presence of Railway Supervisor or his
representative and contractors supervisor at site. 826 (vii)- The Engineer-in-Charge
shall approve the methodology proposed to be adopted by the contractor with view to
ensure safety of trains, passengers and workers and he shall also ensure that the
methods and arrangements are actually available at site before start of the work and the
contractor’s supervisors and the workers have clearly understood the safety aspects
and requirements to be adopted /followed while executing the work. There shall be an
assurance register kept at each site, which will have to be signed by both, i.e
Railway supervisor or his representative as well as the contractor’s supervisors as a
token of their having understood the safety precautions to be observed.
24.2 When the contractor’s vehicles are to be worked closer to 6m but not less than
3.5m from center line of the running track (Annexure-IV A)
24.3 Drivers of vehicle shall be briefed about safety and precautions to be taken while
moving/working close to traffic.
24.4 Demarcation of the land shall be done by bright colored red ribbon/nylon rope of
12mm thick suspended on 75cm high wooden/bamboo posts at a distance of 3.5m from
center line of nearest running track as shown in (Annexure-IV B)
24.5 Contractor shall ensure the road vehicle/Machinery ply in a way so that these do
not infringe the line of demarcation.
24.6 Presence of an authorized Railways representative shall be ensured before plying of
vehicles or working machinery.
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24.7 Railway supervisor shall issue suitable caution order to drivers of approaching train
about road vehicles plying or machinery working close to running tracks. The train
drivers shall be advised to whistle freely to warn about the approaching train.
Whistle boards shall be provided wherever considered necessary.
24.8 Lookout men shall be posted along the track at a distance of 800m from such
locations, which will carry red flag and whistles to warn to the road
vehicles/machinery users about the approaching trains.
24.9 On curves where visibility is poor, additional lookout men shall be posted.
24.10 In unusual circumstances, where operator apprehends infringement to track while
working truck/machinery near running track, following action shall be taken:
24.11 The contractor /supervisor/vehicle operator immediately advise the situation to
Railway official and assist him in protecting the track.
24.12 Protection shall be done for other emergencies.
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29.0 Final Supplementary Agreement: After the work is completed or otherwise concluded
by the parties with mutual consent, and taken over by the Railway as per terms and
conditions of the contract agreement, and there is unequivocal no claim on either side
under the Contract other than as mentioned in item 4 of Annexure XIV (GCC April 2022),
the parties shall execute the Final Supplementary Agreement as per Annexure XIV (GCC
April 2022). (Clause No: 48(3) of GCC April 2022)
DETERMINATION OF CONTRACT
(Clause No: 61 & 62 of GCC April 2022)
61.(1) Right of Railway to Determine the Contract: The Railway shall be entitled to determine
and terminate the contract at any time should, in the Railway's opinion, the cessation of
work becomes necessary owing to paucity of funds or from any other cause whatever, in
which case the value of approved materials at site and of work done to date by the
Contractor will be paid for in full at the rate specified in the contract. Notice in writing
from the Railway of such determination and the reasons therefor shall be conclusive
evidence thereof.
61.(2) Payment on Determination of Contract: Should the contract be determined under sub
clause (1) of this clause and the Contractor claims payment for expenditure incurred by
him in the expectation of completing the whole of the work, the Railways shall admit and
consider such claims as are deemed reasonable and are supported by vouchers to the
satisfaction of the Engineer. The Railway's decision on the necessity and propriety of
such expenditure shall be final and conclusive.
61.(3) The Contractor shall have no claim to any payment of compensation or otherwise,
howsoever on account of any profit or advantage which he might have derived from the
execution of the work in full but which he did not derive in consequence of
determination of contract.
Contractor will be asked to suggest to General Manager at least 2 names out of the panel
for appointment as Contractor’s nominee within 30 days from the date of dispatch of the
request by Railway. The General Manager shall appoint at least one out of them as the
Contractor’s nominee and will, also simultaneously appoint the balance number of
arbitrators either from the panel or from outside the panel, duly indicating the ‘presiding
arbitrator’ from amongst the 3 arbitrators so appointed. General Manager shall complete
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this exercise of appointing the Arbitral Tribunal within 30 days from the receipt of the
names of Contractor’s nominees. While nominating the arbitrators, it will be necessary to
ensure that one of them is from the
Accounts Department. An officer of Selection Grade of the Accounts Department shall be
considered of equal status to the officers in Senior Administrative Grade of other
departments of the Railway for the purpose of appointment of arbitrator.
64.3.(a).iii: The serving railway officer working in arbitral tribunal in the ongoing arbitration
cases as per clause 64.(3)(a)(i) and clause 64.(3)(a)(ii) above, can continue as arbitrator in
the tribunal even after his retirement.
64.(3)(b): Appointment of Arbitrator where applicability of Section 12 (5) of Arbitration and
Conciliation Act has not been waived off:
(i) In cases where the total value of all claims in question added together does not exceed
₹ 50,00,000/- (Rupees Fifty Lakh), the Arbitral Tribunal shall consist of a Retired Railway
Officer, retired not below the rank of Senior Administrative Grade Officer, as the
arbitrator. For this purpose, the Railway will send a panel of at least four (4) names of
retired Railway Officer(s) empanelled to work as Railway Arbitrator duly indicating their
retirement dates to the Contractor within 60 days from the day when a written and valid
demand for arbitration is received by the General Manager.
Contractor will be asked to suggest to General Manager at least 2 names out of the panel
for appointment as arbitrator within 30 days from the date of dispatch of the request by
Railway. The General Manager shall appoint at least one out of them as the arbitrator
within 30 days from the receipt of the names of Contractor’s nominees.
(ii) In cases where the total value of all claims in question added together exceed ₹
50,00,000/- (Rupees Fifty Lakh), the Arbitral Tribunal shall consist of a Panel of three (3)
retired Railway Officer, retired not below the rank of Senior Administrative Grade
Officer, as the arbitrators. For this purpose, the Railway will send a panel of at least four
(4) names of retired Railway Officer(s) empanelled to work as Railway Arbitrator duly
indicating their retirement date to the Contractor within 60 days from the day when a
written and valid demand for arbitration is received by the General Manager.
Contractor will be asked to suggest to General Manager at least 2 names out of the panel
for appointment as Contractor’s nominee within 30 days from the date of dispatch of the
request by Railway. The General Manager shall appoint at least one out of them as the
Contractor’s nominee and will, also simultaneously appoint the balance number of
arbitrators either from the panel or from outside the panel, duly indicating the ‘Presiding
Arbitrator’ from amongst the 3 arbitrators so appointed. General Manager shall complete
this exercise of appointing the Arbitral Tribunal within 30 days from the receipt of the
names of Contractor’s nominees. While nominating the arbitrators, it will be necessary to
ensure that one of them has served in the Accounts Department.
64.(3)(c)(i): If one or more of the arbitrators appointed as above refuses to act as arbitrator,
withdraws from his office as arbitrator, or vacates his/their office/offices or is/are
unable or unwilling to perform his functions as arbitrator for any reason whatsoever or
dies or in the opinion of the General Manager fails to act without undue delay, the
General Manager shall appoint new arbitrator/arbitrators to act in his/their place in the
same manner in which the earlier arbitrator/arbitrators had been appointed. Such re-
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constituted Tribunal may, at its discretion, proceed with the reference from the stage at
which it was left by the previous arbitrator (s).
64.(3) (c) (ii): (a) The Arbitral Tribunal shall have power to call for such evidence by way of
affidavits or otherwise as the Arbitral Tribunal shall think proper, and it shall be the duty
of the parties hereto to do or cause to be done all such things as may be necessary to
enable the Arbitral Tribunal to make the award without any delay. The proceedings shall
normally be conducted on the basis of documents and written statements.
(b) Before proceeding into the merits of any dispute, the Arbitral Tribunal shall first
decide and pass its orders over any plea submitted/objections raised by any party, if any,
regarding appointment of Arbitral Tribunal, validity of arbitration agreement,
jurisdiction and scope of the Tribunal to deal with the dispute (s) submitted to
arbitration, applicability of time ‘limitation’ to any dispute, any violation of agreed
procedure regarding conduct of the arbitral proceedings or plea for interim measures of
protection and record its orders in day to day proceedings. A copy of the proceedings
duly signed by all the members of tribunal should be provided to both the parties.
64.3(c)(iii): (i) Qualification of Arbitrator (s):
(a) Serving Gazetted Railway Officers of not below JA Grade level.
(b) Retired Railway Officers not below SA Grade level, one year after his date of
retirement.
(c) Age of arbitrator at the time of appointment shall be below 70 years.
(ii) An arbitrator may be appointed notwithstanding the total number of arbitration cases
in which he has been appointed in the past.
(iii) While appointing arbitrator(s) under Sub-Clause 64.(3)(a)(i), 64.(3)(a)(ii), 64.(3)(b)(i) &
64.(3)(b)(ii) above, due care shall be taken that he/they is/are not the one/those who had
an opportunity to deal with the matters to which the contract relates or who in the course
of his/their duties as Railway servant(s) expressed views on all or any of the matters
under dispute or differences. A certification to this effect as per annexure- XVI shall be
taken from Arbitrators also. The proceedings of the Arbitral tribunal or the award made
by such Tribunal will, however, not be invalid merely for the reason that one or more
arbitrator had, in the course of his service, opportunity to deal with the matters to which
the contract relates or who in the course of his/their duties expressed views on all or any
of the matters under dispute.
64.(3)(d)(i): The arbitral award shall state item wise, the sum and reasons upon which it is
based. The analysis and reasons shall be detailed enough so that the award could be
inferred therefrom.
64.(3)(d)(ii): A party may apply for corrections of any computational errors, any typographical
or clerical errors or any other error of similar nature occurring in the award of a Tribunal
and interpretation of a specific point of award to Tribunal within 60 days of receipt of the
award.
64.(3)(d)(iii): A party may apply to Tribunal within 60 days of receipt of award to make an
additional award as to claims presented in the arbitral proceedings but omitted from the
arbitral award.
64.(4): In case of the Tribunal, comprising of three members, any ruling on award shall be made
by a majority of members of Tribunal. In the absence of such a majority, the views of the
Presiding Arbitrator shall prevail.
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64.(5): Where the arbitral award is for the payment of money, no interest shall be payable on
whole or any part of the money for any period till the date on which the award is made.
64. (6): The cost of arbitration shall be borne by the respective parties. The cost shall inter-alia
include fee of the arbitrator(s), as per the rates fixed by Railway Board from time to time
and the fee shall be borne equally by both the parties, provided parties sign an agreement
in the format given at Annexure XV to these condition after/ while referring these
disputes to Arbitration. Further, the fee payable to the arbitrator(s) would be governed
by the instructions issued on the subject by Railway Board from time to time irrespective
of the fact whether the arbitrator(s) is/are appointed by the Railway Administration or
by the court of law unless specifically directed by Hon’ble court otherwise on the matter.
64.(7) Subject to the provisions of the aforesaid Arbitration and Conciliation Act 1996 and the
rules thereunder and relevant para of the Standard General Conditions of Contract
(GCC) and any statutory modifications thereof shall apply to the appointment of
arbitrators and arbitration proceedings under this Clause.
64.(8) In case arbitration award is challenged by a party in the Court of Law, 75% of award
amount, pending adjudication by Court of Law, shall be made by party to other party. In
case payment is to be made by Railway to Contractor, the terms & conditions as
incorporated in the Ministry of Railways letter No. 2016/CE(I)/CT/ARB/3(NITI
Aayog)/Pt. dated 08th Mar,2017 as amended from time to time, shall be followed. In case
Contractor has to pay to the Railway, then 75% of the award amount shall be deducted
by the Railway from the Contractor’s bills, Performance Guarantee/ Security Deposit or
any other dues of Contractor with the Government of India.
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Goods and Services Tax (GST) (Clause No: 06 of GCC April 2022)
(a) (i) Before submitting a tender, the tenderer will be deemed to have satisfied himself by
actual inspection of the site and locality of the works, that all conditions liable to be encountered
during the execution of the works are taken into account and that the rates he enters in the
tender forms are adequate and all-inclusive to accord with the provisions in Clause-37 of the
Standard General Conditions of Contract for the completion of works to the entire satisfaction
of the Engineer.
(ii) Tenderers will examine the various provisions of the Central Goods and Services Tax Act,
2017(CGST)/ Integrated Goods and Services Tax Act, 2017(IGST)/ Union Territory Goods and
Services Tax Act, 2017(UTGST)/ respective state’s State Goods and Services Tax Act(SGST) also,
as notified by Central/State Govt. as amended from time to time and
applicable taxes before bidding. Tenderers will ensure that full benefit of Input Tax Credit (ITC)
likely to be availed by them is duly considered while quoting rates.
(iii) The successful tenderer who is liable to be registered under CGST/IGST/UTGST/SGST Act
shall submit GSTIN along with other details required under CGST/IGST/UTGST /SGST Act to
railway immediately after the award of contract, without which no payment shall be released to
the contractor. The contractor shall be responsible for deposition of applicable GST to the
concerned authority.
(iv) In case the successful tenderer is not liable to be registered under
CGST/IGST/UTGST/SGST Act, the railway shall deduct the applicable GST from his/their
bills under reverse charge mechanism (RCM) and deposit the same to the concerned authority.
(v) Contractor shall be liable to pay/refund the amount collected as GST to the Indian Railways
along with interest and penalties, if any imposed by the authorities, in case GST input tax credit
of lndian Railways is denied /rejected by the tax authorities due to reasons mentioned below
but not limited to:
Wrong/incorrect invoices issued by Contractor;
No-filing of GST returns;
Non-payment of GST collected from lndian Railways to the authorities;
Any other non-compliance done by Contractor;
General Indemnity: Contractor hereby agrees to indemnify and hold harmless the Indian
Railways from and against any and all losses, including loss on account of Input Tax Credit and
all losses incurred by the Indian Railways relating to or arising out of or in connection with any
actual or threatened claim, legal action, proceedings, prosecution or inquiry by or against the
Indian Railways arising out, directly or indirectly, of failure by the contractor to comply with
the provisions of GST and related laws, or based upon or arising from any failure by the
Contractor.
Retention Money: Any payment liable to be paid by Indian Railways to contractor against the
goods or services or both supplied by such contractor to Indian Railways shall be kept on hold
in case supplier makes any non-compliance of any of the GST law provisions including non-
reporting of invoices in GST returns. Such payment shall be released after proper verification of
records and availability of ITC lo Indian Railways as per provisions of GST Law.
(b) When work is tendered for by a firm or company, the tender shall be signed by the
individual legally authorized to enter into commitments on their behalf.
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(c) The Railway will not be bound by any power of attorney granted by the tenderer or by
changes in the composition of the firm made subsequent to the execution of the contract.
It may, however, recognize such power of attorney and changes after obtaining proper
legal advice, the cost of which will be chargeable to the Contractor
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(v) In case tenderer opts for payment through LC, following shall be the procedure to deal release of
payment through LC.
(a) The LC shall be a sight LC.
(b) The contractor shall select his Advising/Negotiating bank for LC. The incidental cost towards
issue of LC and its operation thereof shall be borne by the contractor.
(c) SBI, New Delhi, Main Branch will be the nodal branch for issue of LCs based on line requests
received from Railway Accounts Units for tenders opened in financial year 2018-19. SBI
branches, where the respective Railway Accounts Office has its Account (local SBI branch) will be
the issuance/reimbursing branch for LC issued under this arrangement. The Bank shall remain
same for this tender till completion of contract. The incidental cost @ 0.15% per annum of LC
value, towards issue of LC and operation thereof shall be borne by the contractor and shall be
recovered from his bills.
(d) The LC shall be opened initially for duration of 180 to 365 days in consultation with contractor.
The LC shall be extended time to time as per the progress of the contract, on the request of the
contractor. The value of LC to be opened initially as well as extended thereafter shall be finalized
by the engineer in consultation with the contractor on the basis of expected progress of work.
(e) The LC terms and conditions shall inter-alia indemnify and save harmless the Railway from and
against all losses, claims and demands of every nature and description brought or recovered
against the Railways by reason of any act or omission of the contractor, his agents or employees,
in relation to the Letter of Credit (LC). All sums payable/borne by Railways on this account
shall be considered as reasonable compensation and paid by contractor.
(f) The LC terms and conditions shall inter-alia provide that Railways will issue a Document of
Authorization (format enclosed as Annexure-2)after passing the bill for completed work, to enable
contractor to claim the authorized amount from their bank.
(g) The acceptable, agreed upon document for payments to be released under the LC shall be the
Document of Authorization.
(h) The Document of Authorization shall be issued by Railway Accounts Office against each bill
passed by Railways.
(i) On issuance of Document of Authorization, a copy of Document of Authorization shall be posted
on IREPS for download by the contractor. A digitally signed copy of Document of Authorization
shall also be sent by Railway accounts office to Railways bank (Local SBI branch)
(j) The contractor shall take print out of the Document of Authorization available on IREPS and
present his claim to his bank (advising Bank) for necessary payment as per LC terms and
conditions. The claim shall comprise of copy of Document of Authorization, Bill of Exchange and
Bill.
(k) The payment against LC shall be subject to verification from Railways Bank (Local SBI branch)
(l) The contractors bank (advising bank) shall, submit the documents to the Railways Bank (SBI local
branch) (m) The Railways bank (issuing bank) shall, after verifying the claim so received w.r.t the
digitally signed Document of Authorization received from Railway Accounts office, release the
payment to contractor’s bank (advising bank) for crediting the same to contractors account.
(n) Any number of bills can be dealt within one LC, provided the sum total of payments to contractor
is within the amount for which LC has been opened.
(o) The LC shall be closed after the release of final payment including PVC amount, if any to the
contractor.
(p) The release of performance guarantee or security deposit shall be dealt directly by railway with the
contractor i.e not through LC
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3.0 For opening of LC, executive department shall make a request letter to concerned
Accounts Department on a format.
4.0 Necessary changes in IREPS and IPAS e- applications have already been carried out, for
having option for payment to contractors through LC.
Railway board instructed (vide Rly Bd's Lr No.2017/CE-l/CT/9 Dated 31.05. 2023) that for all
contracts costing more than Rs. 5 Crore, Contractor’s e-MB is mandatory.
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ANNEXURE - I
COMPETENCY CERTIFICATE
His knowledge has been found satisfactory and he is capable of supervising the work safely.
ANNEXURE - II
CHECK LIST BEFORE STARTING THE WORK
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REVISED FORM OF BANK GUARANTEE BOND FOR PERFORMANCE GUARANTEE
1. In consideration of the President of India (hereinafter called “the Government”) having agreed to
exempt-------------------- ( hereinafter called “ the said Contractor(s)”) from the demand, under the
terms and conditions of an Agreement dated -------------- made between -------------- and -------------------------
--- for ------------------------- (hereinafter called “the said Agreement”), of Security deposit for the due
fulfillment by the said contractor(s) of the terms and conditions contained in the said Agreement, on
production of a Bank Guarantee for Rs.--- ---------------------(Rupees-------------------------only). We -------------
------------------------------------- (indicate the name of the Bank) (hereinafter referred to as the Bank) at the
request of ---------------------------- (Contractor(s) do hereby undertake to pay to the Government an amount
not exceeding Rs ----------------against any loss / damage caused to or suffered or would be caused to or
suffered by the Government by reasons of any breach by the said contractor(s) of any of the terms or
conditions contained in the said Agreement.
2. We ---------------------------------(indicate the name of the Bank) do hereby undertake to pay the amounts
due and payable under this guarantee without any demur, merely on a demand from the
Government stating that the amount claimed is due by way of loss or damage caused to or would be
caused to or suffered by the Government by reason of breach by the said contractor(s) of any of the
terms or conditions contained in the said Agreement or by reason of the contactor(s) failure to perform
the said Agreement. Any such demand made on the bank shall be conclusive as regards the amount
due and payable by the Bank under this guarantee shall be restricted to an amount not exceeding Rs.--.
3. We undertake to pay to the Government any money so demanded notwithstanding any dispute or
disputes raised by the contractor(s)/supplier(s) in any suite or proceeding pending before any court or
Tribunal relating thereto our liability under this present being absolute and unequivocal. The payment
so made by us under this bond shall be a valid discharge of our liability for payment thereunder and
the contractor(s) / supplier(s) shall have no claim against us for making such payment.
4. We, -------------------------------(indicate the name of bank) further agree that the guarantee herein
contained shall remain in full force and effect during the period that would be taken for the
performance of the said Agreement and that it shall continue to be enforceable till all the dues of the
Government under or by virtue of the said Agreement have been fully paid and its claims satisfied or
discharged or till ------------------------- Office/Department) Ministry of ----------------------- certifies that the
terms and conditions of the said Agreement have been fully and properly carried out by the said
Contractor(s) and accordingly discharges this guarantee. Unless a demand or claim under this
guarantee is made on us in writing on or before the ---------------------------- we shall be discharged from all
liability under this guarantee thereafter.
5. We, ---------------------(indicate the name of the Bank) further agree with the Government that the
Government shall have the fullest liberty without our consent and without affecting in any manner our
obligations hereunder to vary any of the terms and conditions of the said Agreement or to extend time of
performance by the said contractor(s) from time to time or to postpone for any time or from time to time
any of the powers exercisable by the Government against the said Contractor(s) and to forbear or enforce
any of the terms and conditions relating to the said agreement and we shall not be relived from our
liability by reason of any such variation, or extension being granted to the said Contractor(s) or for any
forbearance act or omission on the part of the Government or any indulgence by the Government to the
said Contractor(s) or any such matter or thing whatsoever which under the law relating to the sureties
would, but for this provision, have effect of so relieving us.
6. This guarantee will not be discharged due to the change in the constitution of the bank or the
Contractor(s) / Supplier(s).
7. We, ----------------------(indicate the name of the bank) lastly under take not to revoke this guarantee
during its currency except with the previous consent of the Government in writing.
Dated: the---------------- day of --------- 20
For
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