BYS.SWAMINATHAN B.E.(CIVIL)

PROFESSORENGINEERING STAFF COLLEGE

KRISHNARAJA SAGARA

SALIENT FEATURES OF KTPP-ACT 2000

AND

STANDARD TENDER DOCUMENTS -WORKS

KTPP ACT 2000 Received Governor's assent on 10-12-2000

Published in Karnataka Gazette Extraordinary on

13-12-2000

To ensure transparency in public procurement by streamlining the procedure in inviting, processing, and acceptance of tenders.

Procurement Entity means any Govt. Dept. State Govt. Undertaking, Local authority or Board, Body, or Corporation established by or under any law or owned or controlled by the Govt.

EXCEPTIONS TO APPLICABILITY During the periods of calamity or emergency as declared by the

Govt.

Where a particular contractor has exclusive rights in respect of the construction work and no reasonable alternatives or substitutes exist provided a committee of three experts (one technical expert representing procuring entity, one technical representative of the Govt. department dealing with similar procurement, and one from reputed Academic or Research Institution or Non-Commercial Institution having expertise in this line) examine and declare that no alternate or substitutes exist

(Act-4)

Where procurement is by the Government Departments,

State Government undertakings, or any Board, Body or

Corporation, Zilla Panchayats, City Municipal

Corporations, City Municipal Councils, Hyderabad

Karnataka Areas Development Board, Malnad Area

Development Board,Bayaluseeme Development Board

Construction Works up to rupees 5 lakhs

For Grama Panchayats, Taluk Panchayats, Town Municipal

Councils, Town Panchayats,Urban Development Authorities

For the purpose of implementing miniwater supply

scheme and construction of class rooms rupees 2 lakhs

and for others rupees one lakh

PUBLICITY

Publication of Tender Bulletin: Both State Tender

Bulletin and District Tender Bulletin should be

published once in a week. All the notices inviting

tenders, intimation of acceptances and rejections

received 48 hours prior to publication of tender

bulletin shall be published

In case of emergency or urgency extraordinary issue

of tender bulletin shall be published after duly

recording the reasons for doing so.

(Rule 4-1,2,3,4 )

Distribution of Tender Bulletins: TBO should make

the TB available in office concerned of the Dept., local

authority board, public sector undertaking,

university, cooperative institution, any subscribers

enrolled on payment of prescribed fee.

Sufficient copies of TB shall be available at the office

of the TIA (Rule-5)

Tender Bulletin Contents: Should contain information

regarding Notice Inviting Tender Part A), Intimation of

Acceptance of Tenders Part B), Intimation of

Rejection of tenders Part C).

Intimation of acceptance of Tender shall not in itself

create a legal right.

A notice inviting tender will not be invalidated merely

on the grounds that the notice has not been published

in the Newspapers.(Rule 6-1,2,3)

Notice inviting tender should be published in State

Tender Bulletin and also in the District Tender Bulletin

where the office of the TIA is located if the cost of

procurement is more than rupees one crore.

If it is less than rupees one crore it shall be published

in the district tender bulletin only.(Rule8)

DETAILS TO BE MENTIONED IN NOTICE

INVITING TENDERS

The name and address of the procuring entity and

the designation and address of the NIA

The date up to which and places from where the TD

can be obtained

The amount of EMD payable and mode of payment

The last date, time, and place of receipt of tenders

The date, time, and place for opening of received

tenders

Any other relevant information

(Rule 9-a,b,c,d,e,f,g)

PUBLICATION OF NIT IN NEWSPAPERS

In INDIAN TRADE JOURNAL if the value of

procurement is more than rupees ten crores

The number, editions, and language of the newspapers

as per departmental rules

Director of information and publicity shall release the

advertisement (Rule 10-1,3)

NOTICE INVITING TENDERS AND

TENDER DOCUMENTS

Technical specifications contained in the tender

documents shall include a detailed description of

what is proposed to be procured.

Detailed estimates shall be prepared by the

competent technical authorities based on the

schedule of rates and standard data as revised from

time to time

Wherever possible appropriate INDIAN STANDARD

with number shall be incorporated

(Rule 11)

COMMERCIAL CONDITIONS

Payment of EMD by means of DD, bankers Cheque,

specified small savings instruments, irrevocable bank

guarantee otherwise tender to be rejected

Except other wise specifically exempted by Govt.

Prices should hold for at least 90 days from the date of

opening of the tender

Security deposit to be furnished by the successful

tenderer before signing the contract agreement

Clause for payment of liquidated damages to be

included

TAC can vary the quantity by 25% either way

Rule 12-(2),(4)

TD should be available from the date indicated

TD should be available to any one willing to pay it’s

cost

If there is a system of registration of contractors, then

TD will be supplied only to registered contractors

TD can be supplied by registered post or courier if

requested.

Any time after the issue and before opening the tender

TIA may make any changes, modifications, or

amendments to the tender documents duly intimating

all those who have purchased the TD

(Rule 13)

RECEIPT OF TENDERS AND TENDER

OPENING

Proper receipt and safe custody of TD should be

ensured

TD can be receive by post or courier but not

responsible for any delay in receipt

Last date and time can be extended , if there is delay

in publication of NIT, changes made could not be

communicated in time, any other reasonable

grounds

The tenderer should properly seal and super scribe

the cover. Otherwise may lead to accidental opening

(Rule 15-1,2,3)

Minimum time for submission Rule 17-1 (a) (b)

30 days for tenders up to Rs 2 crore

60 days for tenders excess of 2 crore

Any reduction in the above time should be specifically authorised by an

authority superior to TIA

All tenders received in time should be opened

A record of correction noticed at the time of opening shall be maintained

The name of the tenderer and quoted price should be read out

Receipt of correct EMD and other documents to be indicated

Minutes of the process to be recorded , and signed by tenderer

or his representative if willing

Tender Accepting Authority (TAA) may constitute a

tender scrutiny committee for processing received

tenders, evaluation and prepare a report for TAA

For public works, irrigation, minor irrigation Dept

works costing more than rupees 5 crores TSC is a

must.

For other Dept it is rupees 1 crore

(Rule 20-2)

TENDER EVALUATION

Standard Tender Documents are in general classified into three

categories.(G.O. FD 9PCL 2004 (I) Bangalore 6-8-05)

WORKS, GOODS, SERVICES

There are 6 types of STD pertaining to WORKS

KW-1, KW-2, KW-3, KW-4, KW-5, and KW-6.

KW-1 for works less than rupees 20 lakhs( single cover)

KW-2 between 20 lakhs and 50 lakhs(single cover)

KW-3 between 50 lakhs and 100 lakhs(two cover)

KW-4 between 100 lakhs and 1000 lakhs(two cover)

KW-5 above 1000 lakhs two stage without JV

KW-6 above 1000 lakhs two stage with or without JV

JV- Joint Venture

KW/1 for works lesser than rupees 20 lakhs

Mere Registration is enough

Shall not be under a declaration of ineligibility for corrupt and

fraudulent practices issued by GOK

AATC=A*N*2.5--B should be more than total tender value.

A – Maximum value of civil engineering works executed in any one

year during last 5 years (updated to FY in which tenders are invited)

taking into account the completed as well as works in progress

N- number of years prescribed for completion of the works for

which tender is invited.

B-Value at the price level of FY in which tenders are invited the

existing commitments for the period of completion of work

tendered.

Mandating satisfactory completion as a primary contractor for at least

one similar work to an extent of 50% of the cost of present work

The tenderer in his name should have in the last five year period

achieved in at least two financial years an average annual financial

turnover of not less than the estimated cost under this contract

Executed in any one year (for a continuous period of 12 months) the

following minimum quantities of work, cement concrete ( including

RCC and PSC), earth work in both excavation and embankment

(combined quantities) usually 80% of the peak annual rate of

construction

Liquid assets and or availability of credit facilities of not less than 30%

of the amount of contract

KW/2 for works more than rupees 20 lakhs and lesser than rupees

50 lakhs

Shall not be under a declaration of ineligibility for corrupt and

fraudulent practices issued by GOK

AATC=A*N*2.5--B should be more than total tender value.

A – Maximum value of civil engineering works executed in any one

year during last 5 years (updated to FY in which tenders are invited)

taking into account the completed as well as works in progress

N- number of years prescribed for completion of the works for

which tender is invited.

B-Value at the price level of FY in which tenders are invited the

existing commitments for the period of completion of work

tendered.

Mandating satisfactory completion as a primary contractor for at least

one similar work to an extent of 50% of the cost of present work

The tenderer in his name should have in the last five year period

achieved in at least two financial years an average annual financial

turnover of not less than the estimated cost under this contract

Executed in any one year (for a continuous period of 12 months) the

following minimum quantities of work, cement concrete ( including

RCC and PSC), earth work in both excavation and embankment

(combined quantities) usually 80% of the peak annual rate of

construction

Liquid assets and or availability of credit facilities of not less than 30%

of the amount of contract

KW/3 For works more than rupees 50 lakhs

and lesser than rupees 100 lakh

Shall not be under a declaration of ineligibility

for corrupt and fraudulent practices issued by

GOK

AATC=A*N*2.5--B should be more than total

tender value.

A – Maximum value of civil engineering works

executed in any one year during last 5 years

(updated to FY in which tenders are invited)

taking into account the completed as well as

works in progress

N- number of years prescribed for completion of

the works for which tender is invited.

B- Value at the price level of FY in which

tenders are invited the existing commitments

for the period of completion of work tendered.

Mandating satisfactory completion as a primary

contractor for at least one similar work to an extent of

50% of the cost of present work

The tenderer in his name should have in the last five

year period achieved in at least two financial years an

average annual financial turnover of not less than the

estimated cost under this contract

Executed in any one year (for a continuous period of 12 months) the

following minimum quantities of work, cement concrete ( including RCC

and PSC), earth work in both excavation and embankment (combined

quantities) usually 80% of the peak annual rate of construction

Liquid assets and or availability of credit facilities of

not less than 30% of the amount of contract

Price adjustment allowed if the duration of work is

more than 12 months for increase or decrease in

rates of labor, materials, fuels, and lubrication as

per formulas given in the contract data

If the duration is between 6 to 12 months price

variation for cement, steel and bitumen only is

allowed

For less than 6 months no price variation

irrespective of cost

K/W4 for works more than Rs. 100 lakhs and less

than Rs.1000 lakhs.

Shall not be under a declaration of ineligibility for

corrupt and fraudulent practices issued by GOK

AATC=A*N*1.5--B should be more than total tender

value.

A – Maximum value of civil engineering works executed

in any one year during last 5 years (updated to FY in

which tenders are invited) taking into account the

completed as well as works in progress

N- number of years prescribed for completion of the

works for which tender is invited.

B- Value at the price level of FY in which tenders are

invited the existing commitments for the period of

completion of work tendered

Mandating satisfactory completion as a

primary contractor for at least one similar

work to an extent of 80% of the cost of present

work

The tenderer in his name should have in the

last five year period achieved in at least two

financial years an average annual financial

turnover of not less than two times the

estimated annual payments under this

contract

Liquid assets and/or availability of credit

facilities of not lesser than the equivalent of

the estimated cash flow for three months in

peak construction period.

The statement showing the value of existing commitments and on going

works as well as the stipulated period of completion remaining for each of

the works listed should be countersigned by the Employer in charge, not

below the rank of EE or equivalent

Tenderers may be disqualified if they have made misleading or false

representations in the forms, statements and attachments submitted in proof

of qualification requirements

Has a record of poor performance such as abandoning the works, not

properly completing the contract, inordinate delay in completion, litigation

history, or financial failures

Participated in the previous tender for the same work and had quoted

unreasonably high tender prices and could not furnish rational justification

Tender documents should always be submitted in two

sets in separate covers clearly indicating ‘ORIGINAL’

and ‘COPY’

Before the deadline for submission of tenders, the

Employer may modify the tender documents by

issuing addenda communicated in writing or by cable

to all purchasers of TD. This addenda forms a part of

TD

To enable the tenderers to have reasonable time due

to modifications, the deadline for the submission of

tenders may be extended

TENDER PREPARATION, SUBMISSION,

OPENING, , EVALUATION AND ACCEPTANCE

For single cover system tenders, both original and copy in separate covers,

EMD, Priced Bill quantities, Qualification Information Form and

Documents all should be put in one more cover, properly sealed, correctly

super scribed and submitted

Rates as well as the total cost should be filled in both figures and words. In

case of variation least of the two will be considered

If no rate is quoted for any item or items the tenderer is bound to execute

such items free of cost.

Corrections if any, shall be made by crossing out, initialing, dating, and

rewriting.

All duties, taxes, and other levies payable shall be included in the rates,

prices, and total tender price submitted.

Rates quoted should remain valid for a period of at least 90 days.

If the period is for a lesser period, the tender should be rejected

as non-responsive.

In exceptional circumstances, prior to expiry of the original time

limit, the Employer may request that the tenderers may extend

the period of validity for a specified additional period. The

request and the tenderers response shall be made in writing or

by cable. A tenderer may refuse the request without forfeiting his

EMD. A tenderer agreeing to the request will not be required or

permitted to modify his tender., but will be required to extend

the validity of his EMD for a period of the extension. EMD

Shall be in cash, Banker‟s cheque, DD, Pay order, or specified

Small Savings Instruments

Instruments having fixed validity issued as EMD shall be valid for 45 days

beyond the validity of the tender.

Any tender not accompanied by any acceptable EMD and not secured shall be

rejected as non-responsive.

The EMD of unsuccessful tenderer will be returned within 30 days of the end

of tender validity period specified.

The EMD of the successful Tenderer will be discharged when the Tenderer has

signed the agreement and furnished the required Performance Security.

The EMD may be forfeited if the tenderer withdraws the tender after tender

opening during the period of tender validity.

If the tenderer does not accept the correction of tender price

If the successful tenderer fails to sign the agreement or fails to furnish the SD

with in the specified time limit.

The tenderer shall prepare one original and a copy of the documents

comprising the Tender bound with volume containing the Form of Tender

and clearly marked „ORIGINAL‟ AND „COPY‟. In the event of discrepancy

between them the original shall prevail.

Both the original and copy of the Tender shall be signed by a person or

persons duly authorised to sign on behalf of the tenderer. All pages of the

tender where entries or amendments have been made shall be initialed by

the person signing the tender.

The tender shall contain no alterations or additions, except those

necessary to correct errors made by the tenderer . Such corrections must

be initialed by the person signing the tender.

The tenderer shall seal the original and copy of the tender in separate

envelopes duly marking the envelopes as “ORIGINAL” and “COPY”. These

envelopes shall then be put in side one outer envelope. The inner envelopes

containing the original and copy of the tender shall indicate the address of

the employer, name of the work for which the tender is submitted, and also

the name and address of the tenderer. The employer will assume no

responsibility for the misplacement and premature opening of the tender.

The tenders must be received by the Employer at the address specified no

later than the date and time specified. In the event of the specified date

being declared a holiday for the employer the tenders will be received up to

the appointed time on the next working day

The employer may extend the deadline for submission of tenders by issuing

an amendment in which case all rights and obligations of the Employer and

the Tenderers previously subjected to the original deadline will then be

subjected to the new deadline.

Any Tender received by the Employer after the deadline prescribed will be

returned unopened to the Tenderer.

Tenderers may modify or withdraw their Tenders by giving notice in

writing before the deadline prescribed.

Each Tenderer‟s modification or withdrawal notice shall be prepared,

sealed, marked, and delivered with proper marking on the envelope.

No tender shall be modified after the deadline for submission of tenders.

Withdrawal or modification of tender between the deadline for

submission of tenders and the expiration of original period of tender

validity specified or extended may result in the forfeiture of the EMD

Tenderers may only offer discounts to or modify prices of their tenders by

submitting tender modifications.

The Employer will open all the Tenders received (except those received

late) including modifications made, in the presence of the Tenderer or his

authorised representative who choose to attend this, on the specified date

and time and place. In the event of the specified date of tender opening

being declared a holiday for the Employer the tenders will be opened at

the appointed time and location on the next working day.

Envelopes marked withdrawal shall be opened and read out first. Tenders

for which an acceptable notice of withdrawal has been submitted shall not

be opened.

Subsequently all envelopes marked modification shall be opened and the

submissions therein readout in appropriate detail.

The Tenderers‟ names, the Tender prices, the total amount of tender, any

discounts, tender modifications and withdrawals, the presence or absence

of EMD and any other appropriate will be announced by the employer at

the opening.

No tenders shall be rejected at tender opening except for the late tenders.

Tenders (and modifications) that are not opened will be returned un-

opened to the tenderers.

Employer will prepare the minute of process.

Before detailed evaluation of the tenders the employee will determine

whether each tender meets the eligibility criteria, has been properly signed,

is accompanied by EMD, is substantially responsive.

A substantially responsive tender is one which confirms to all terms,

conditions, and specifications without material deviation or reservation.

A material deviation or reservation is one which affects in any substantial way

the scope , quality, or performance of the works, whose rectification would

result affect unfairly the competitive position of other tenderers presenting

substantially responsive tenders.

If a tender is not substantially responsive it will be rejected and may not

subsequently made substantially responsive by correction or withdrawal of

nonconforming part.

Tenders determined substantially responsive will be checked for

any arithmetic errors.

Where there is a discrepancy between the rates in figures and in

words the lower of the two will govern.

Where there is a discrepancy between the unit rate and the line

item total, the unit rate quoted will govern, and the resulting

corrections is binding upon the tenderer. If the tenderer does

not accept the corrected amount his tender will be rejected and

the EMD forfeited.

The employer will evaluate and compare only the tenders which

are substantially responsive.

The final tender price will be arrived at by making correction

for errors and making adjustments to reflect discounts or other

price modifications.

The employer will award the contract to the tenderer whose

tender has been determined to be substantially responsive and

who has offered the lowest evaluated tender price provided has

been determined eligible and qualified.

The employer reserves the right to accept or reject any tender

and to cancel the tender process and reject all tenders at any time

prior to the award of contract without thereby incurring any

liability to the affected tenderer(s) or any obligation to inform

the affected tenderer(s) of the ground for the employee‟s action

The Tenderer whose tender has been accepted will be notified

of the award by the Employer prior to expiration of the Tender

validity period by cable, telex, or facsimile confirmed by

registered letter. This letter ( letter of acceptance) will state the

sum that the employer will pay the contractor in consideration

of the execution, completion, and maintenance of the works by

the contractors prescribed by the contract (contract price)

The notification of award will constitute the formation of the

contract. The contract has to be kept ready for signature with in

30 days following the notification of award of tender along with

the letter of acceptance.

Within 20 days of receipt of letter of acceptance the

contractor will furnish security deposit of 5% of contract

price plus additional security for un balanced tenders in the

form of cash or banker‟s cheque, or demand draft, or pay

order or specified small saving instruments. The failure of the

successful tenderer to comply with these requirements shall

constitute sufficient grounds for cancellation of the award and

forfeiture of EMD.

Upon the furnishing of SD and signing of the agreement the

employer will promptly notify the other tenderers that their

tenders have been unsuccessful. Their EMD will be returned

to them within 30 days of signing of agreement.

CONDITIONS OF CONTRACT

Communications between employer and contractor are

effective only when in writing.

A notice will be effective only when it is delivered.

The contractor may subcontract with the approval of the

employer in writing. Sub contracting doesn't alter the

contractor‟s obligations.

The contractor shall cooperate and share the site with other

contractors, public authorities, utilities, and the employer.

The contractor shall employ the technical persons (of

number and qualification) as may be stipulated.

Technical staff so employed shall be available at site.

If the employer asks the contractor to remove a person

who is a member of the contractor’s staff or his work

force stating reasons, the contractor shall ensure that

the person leaves the site within 7 days and has no

further connection with the work in contract.

Employer is responsible for the excepted risks which

are in so far as rebellion, riot, commotion, disorder or

a cause due solely to the design of the works other

than contractor’s design.

Contractor is responsible for all loss of or damage to

physical property and of personal injury and death

which arise due to contractors performance.

TIME CONTROL

Within the time stated in the contract the contractor shall submit

for approval a program showing the general methods,

arrangements, order, and timing for all the activities in the

works.

The employer shall extend the Intended Completion Date if a

compensation event occurs or a variation is issued which makes it

impossible for completion of works within the Intended

Completion Date.

The employer shall decide whether and by how much to extend

the ICD within 21 days of the request of contractor

QUALITY CONTROL

If any defects are found employer shall notify the

contractor. The employer may instruct the contractor

to search for a defect and to uncover and test any

work that the employer considers may have a defect.

If a test not specified in the specification is done at

the request of the employer and the test shows a

defect then the contractor shall pay for the test and

samples. If there is no defect it will be a

compensation event.

The employer shall give notice to the contractor of any defects

before the end of the Defects Liability Period, which begins at

completion and is defined in the contract. The DLP shall be

extended for as long as de3fects remain to be corrected.

If the contractor has not corrected a defect within the time

specified in the employer‟s notice the employer will asses the

cost of having the defect corrected and the contractor will pay

this amount.

COST CONTROL

Variations: The employer shall have power to order the

contractors to do any or all of the following as

considered necessary or advisable during the

progress of the work by him.

1) Increase or decrease of any item of work included in

the bill of quantities.

2) Omit any item of work

3) Change the character or quality or kind of any item

of work

4) Change the levels, lines, positions, and dimensions

of any part of the work

5) Execute additional items necessary for this work

6)Change in any specified sequence, methods or timing of

construction of any part of the work.

The contractor shall be bound to carry out the work in

accordance with any instructions given in writing and such

alterations shall not vitiate or invalidate the contract.

If verbal orders are given the contractor promptly request in

writing the employer to confirm this. If confirmation is not

received within 30 days of request the work shall be carried out

as though there is no variation.

In case variation is approved it shall be accompanied by BOQ

Approval of the Government has to be obtained for the

variation exceeding 5%

PAYMENTS FOR VARIATIONS

1) Payment for increase in the quantities of an item in

the BOQ up to 25% of that provided in the BOQ

shall be made at the rates quoted by the contractor.

2)For quantities in excess of 125% of the tendered

quantity of an item as given in the BOQ, the

contractor shall be paid at the rate entered in or

derived form, in the Schedule of Rates (applicable

for the area of the work and current at the time of

award of contract) plus or minus the overall

percentage of the original tendered rates over the

current SR prevalent at the time of award of

contract.

If there is no rate for the additional, substituted or altered item of the

work in the BOQ, efforts would be made to derive the rates from those

given in the BOQ or the SR ( applicable for the area of the work and

current at the time of award of contract) and if found feasible the payment

would be made at the derived rates for the item plus or minus the overall

percentage of the original tendered rates over the current SR prevalent at

the time of award.

If the rates cannot be arrived as above the contractor shall be requested to

submit his quotation with rates and rate analysis with in 7 days.

If the contractors quotation is unreasonably high payment will be based on

employer‟s forecast of the effects of the variation on contractor‟s cost.

If the employer decides that the urgency of varying the work

would prevent a quotation being given and considered without

delaying the work, no quotation shall be given and the variation

shall be treated as a compensation event.

Under no circumstances the contractor shall suspend the work

on the plea of non-settlement of rates for items falling under this

clause.

The employer shall pay the contractor within 60 days of

submission of bill

COMPENSATION EVENTSThe following are compensation events unless they are caused by the

contractor.

1) The employer does not give access to a part of the site by the site

possession date stated in the contract.

2) The employer orders a delay or does not issue drawings, specifications or

instructions required for execution of works in time.

3) The employer instructs the contractor to uncover or to carryout

additional tests upon work which is then found to have no defect.

4) The employer gives an instruction for dealing with an unforeseen

conditions, caused by the employer or additional work required for safety

or other reasons

The effect on the contractor of any of the employer‟s risk.

The employer unreasonably delays issuing a certificate of

completion.

Other compensation events listed in the contract data or

mentioned in the contract.

If a compensation event would cause additional cost or would

prevent the work being completed before the intended

completion date, the contract price shall be increased and/or

the ICD be extended. The employer shall decide the quantum

of both.

LIQUIDATED DAMAGES

The contractor shall pay liquidated damages to the employer at the rate

per day stated in the contract for each day of delay in completion of work

later than ICD.

The total amount of liquidated damages shall not exceed the amount

defined in contract data.

If the ICD is extended after liquidated damages have been paid the

employer shall correct any overpayment of liquidated damages by the

contractor by adjusting the next payment of bill.

Loss or damage to the work or materials between start date and the end

of Defects Liability Period shall be remedied by the contractor for

damages caused by him.

FINISHING THE CONTRACT

The contractor shall request the employer to issue a

certificate of completion of the works and the employer

will do so upon deciding that the work is completed.

The employer shall take over the site and the works

within 7 days of issuing a certificate of completion.

The contractor shall supply to the employer a detailed

account of the total amount that the contractor

considers is payable under the contract before the end

of the Defects Liability Period.

The employer shall issue a Defects Liability Certificate and certify any

final payment that is due to the contractor within 90 days of receiving

the contractor‟s account if it is correct and complete. If it is not, the

employer shall issue within 90 days a schedule that states the scope of

the corrections or additions that are necessary. If the final account is still

unsatisfactory after it has been resubmitted, the employer shall decide

on the amount payable to the contractor and make payment within 60

days of receiving contractor‟s revised account.

If “as built” drawings are required, the contractor shall supply them by

the dates stated in the contract data otherwise the shall withhold the

amount payable to the contractor.

TERMINATION

The employer or the contractor may terminate the contract if

the other party causes a fundamental breach of the contract.

a)The contractor stops the work for 45 days when no stoppage

of work is shown on the current program and the stoppage has

not been authorised by the employer.

c)The contractor becomes bankrupt or goes into liquidation

other than for a reconstruction or amalgamation.

e) The employer gives notice that failure to correct a particular defect is a

fundamental breach of contract and the contractor fails to correct the

defect within a reasonable period of time determined by the employer.

f)The contractor does not maintain a security which is required

.

g) The contractor has delayed the completion of works by the number of

days for which the maximum amount of liquidated damages can be paid as

defined in contract.

h)If the contractor, in the judgment of the employer has engaged in corrupt

or fraudulent practices in competing or in the execution of the contract.

Corrupt Practice means offering, giving, receiving or

soliciting of anything of value to influence the action of a

public official in the procurement process or in contract

execution.

Fraudulent Practice means a misrepresentation of facts in

order to influence a procurement process or the execution of

a contractor the detriment of the borrower and include

collusive practice among tenderers (prior to or after tender

submission) designed to establish tender prices at artificial

non competitive levels and to deprive the borrower of the

benefits of free and open competition.

When either party to the contract gives a notice of a breach of

contract for a cause other than the above the employer shall

decide about its veracity.

Not withstanding the above the employer may terminate the contract.

If the contract is terminated the contractor shall stop work immediately

make the site safe and secure and leave the site as soon as reasonably

possible.

If the contract is terminated because of a fundamental breach of contract

by the contractor the employer shall prepare bills for the value of work

done less advance payments received up to the date of the bill, less other

recoveries due in terms of the contract, less taxes due to be deducted at

source as per applicable law and less the percentage to apply to the work

not completed as indicated in the contract.

If the contract is terminated at the employer‟s convenience or

because of a fundamental breach of contract by the employer,

the employer shall prepare bill for the value of work done, the

reasonable cost of removal of equipment, repatriation of the

contractor‟s personnel employed solely on the works, and the

contractor‟s costs of protecting and securing the work and less

advance payment received up to the date of the certificate, less

less other recoveries due in terms of the contract, and less taxes

due to be deducted at source as per applicable law and make

payment accordingly.

If the contractor is frustrated by any event entirely outside the

control of either the employer or the contractor the employer

shall certify that the contract has been frustrated. The

contractor shall make the site safe and stop work as quickly as

possible after receiving this certificate and shall be paid for all

work carried out before receiving it and for any work carried

out afterwards to which commitment was made.

SPECIAL POINTS TO BE NOTED

EMD amount as % of the estimated cost of the work put to

tender is as follows.

Up to Rs. 20 lakh 2.5%

Rs.20 lakh to Rs. 100 lakh 2.0%

Minimum of Rs.50000

100 lakh to 1000 lakh 1.5%

Minimum of 200000

Above1000 lakh 1.0%

Minimum of 1500000

IMPORTANT GOVERNMENT ORDERS AND

CIRCULARS PERTAINING TO KTPP WORKS

WEB SITE http://www.kar.nic.in/finance/trans/tender.htm

GO NO. FD 9 PCL 2004 (I) B‟lore dt 06-08-2005

Gives divisions of works contract KW1,2,3,4,5,6 and Annexure

I to VI gives details of above tender documents

GO NO. FD 06 PCL 2006 B‟lore dt 21-03-2007

Makes it compulsory for every Procurement Entity to make use

of STD under annexure I to VI as above.

CIRCULARNO.PWD 1359 SO/FC 2001 (P-2) gives

guidelines regarding negotiations.

CIRCULARNO.PWD 140 SO/FC 2003 dt 1 Sept. 2003

Procedure for sale of tender documents

GO NO.FD 59 PRO CELL 2004 dt. 26-11-2004

Provision for Price Adjustment for works above Rs. 50

lakh and duration above 12 months

GO NO.FD56 PRO CELL B’lore dt 18-1-2005

Regarding Measurement Books. For works up to Rs.

25 lakh Regular MB in form no.PWG 27 to be used.

For works more than Rs. 25 lakh printout and soft

copy of measurement

GO NO.FD 55 PRO CELL B‟lore dt 17-02-2005

Regarding third party inspection which is a must for all works

costing more than Rs 2 crore

For goods and equipments Rs. 25 lakh.

GO NO.FD 4 PCL B‟lore dt 14-10-2008

Gives amendments to all standard documents KW-1 to KW-6

THANK YOU