SCRUTINY OF

FINANCE PROPOSALS

Funds

• Revenue – Demand No.1-15• Capital - Demand No. 16• Plan Heads of expenditure-Capital

1100- New lines1400-GC1600-Traffic Facility works3300-S&T works4100-M&P5300-Passenger Amenity works6400-Other specified works

Sources of funds

• Capital

• Capital Fund

• DRF

• OLWR

• DF-I,II,III,IV

• Safety fund

• SRSF

Works Programme-

• PWP/Survey Reports

• FWP

• PB

• List of approved works (LAW)

• Lump sum Works Programme (LSWP)

• Out of Turn works (OOT)

Check list for PWP/LSWP

• Administrative approval• Initial Vetting • Rates & Quantities• Barest Minimum facilities• Approval of Personnel Branch for Quarters• As per existing Policy Guidelines • Sketches and Drawings• Major Modifications • Allocation and Source of Funding• Permissible Cost• ROR

Proposals which do not require Financial Justification

• Expenditure on Statutory Obligation

• Expenditure on consideration of Safety

• Passenger Amenity Works

• Labour Welfare Works

Verbatim Comments of FA&CAO

• Merit and Justification – Low Cost Alternative• Reasonableness of Rates and Quantities

particularly for High Value Items• Comments regarding reasonableness of

assumptions made in the forecast of Earnings/Benefits

• Correctness of ROR• Whether the cost proposed is within the

permissible ceiling limit.

Scrutiny of Detailed Estimates –

• Revenue – beyond Rs.2 lakhs• Capital – beyond Rs.10,000/-• Rates• Quantities and Specifications• Finance vetting – Arithmetical accuracy• Financial Justification• Incidence and Allocation • Sanction of Competent Authority

Material Modifications• (a) Any change in the alignment likely to affect the facilities offered to the public in the

neighbourhood or likely to increase or decrease the length of the line by over one kilometre.

• (b) Introduction of any new station or omission of any station. • (c) Any alteration in the type or number of engines or vehicles provided in an estimate

for rolling-stock. • (d) A change in the layout of a yard affecting the general method of working or

increasing or reducing the number of trains that can be dealt with. • (e) Any departure from the standards of construction as prescribed in Chapter II or as

accepted by the Railway Board in the Abstract Estimate or use of any second hand material, if it affects the speed of trains or the number of trains to be dealt with than contemplated originally.

• (f) The introduction or omission of any work or facility involving a sum of Rs.5 lakhs and over.

• (g) Any modification of a sub-work provided for in the estimate of a sanctioned work involving an additional outlay on that sub-work of more than Rs.5 lakhs.

• (h) The introduction of the new sub-work not provided for in the estimate of a sanctioned work involving an outlay of more than Rs.5 lakhs.

• (i) Any alteration in the standards of interlocking.

Preparation of Tender Schedules –

• GCC and special conditions of the contract• Quantities/specifications• Rates• PVC clause• Stage payment clause• Eligibility criteria• Turn over criteria• Fixation of cost of tender form, EMD, SD & PG• Period of contract• Pre-vetting of tender schedules

Selection of Type of Tender

• Open Tender

• Limited Tender

• Special Limited Tender

• Single Tender

• Two-Packet Tender

• Notice period

Opening of Tenders and Briefing Note

• Witnessing of timely closing and opening of tenders• Sealing, opening, numbering, circling, corrections, initials• Omissions, completeness, attestations• Delayed/Late tenders• Briefing Note verification• Tabulation of rates/LARs• Evaluation of credentials• Genuineness of the EMD• Details of black listing, if any• Details of works on hand• Estimate provision

Tender Committee

• Convener, Finance Member & sister department• Two/Three member committee• Reasonableness of rates• Evaluation of credentials• Negotiations• Recommendations• Dissent Note• Counter offer

Acceptance of Tender

• Accepting authority

• Powers of accepting authority

• Responsibility of accepting authority

• Issue of acceptance letter (LOA)

• Submission of Performance Guarantee

• Signing of agreement

Execution/Variation of Contract

• As per Terms and Conditions• Prompt payment on account bills• Recovery of SD• Additional items• Excess operation of existing items• Extensions of currency of contract• Prompt payment of Final bills• Release of performance guarantee and SD• Risk & Cost

Misc Proposals

• Indents• Furniture proposals• Computer Proposals• Imprest• Policy guidelines• Office stationery, equipments• Vehicles, vehicle repairs• Special contingencies• Annual Maintenance Contracts• Other miscellaneous proposals.

Points to be seen for Misc proposals

• Justification.

• Administrative approval.

• Funds availability

• Rate reasonability

• Finance concurrence

• Sanction of competent authority

• Mode of execution/Procurement

Arbitration Cases- Reasons for the rise

• Delay in handing over the site• Delay in furnishing the approved plans/drawings• No field survey before the estimate/schedule is

prepared• No periodic review of the contract• No timely action to deal with the

variations/deviations• Not making the measurements in time• Non settlement of the bills/SDs in time

thanks