wppp for ets including delegation of power

8/3/2019 WPPP for ETs Including Delegation of Power

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CONTRACT SERVICESCONTRACT SERVICESCON

TRACT SERVICESCONTRACT SERVICES


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PROCESS ADOPTED FORPROCESS ADOPTED FOR

FINALISATION OF DOCUMENTSFINALISATION OF DOCUMENTS

WPP of NTPC was beingWPP of NTPC was being

followedfollowed

Need felt for updating to suitNeed felt for updating to suitTransmission SectorTransmission Sector

requirements, based onrequirements, based on

experience gained over theexperience gained over the

yearsyears

POWERGRID WPPP finalisedPOWERGRID WPPP finalised

PROCESS ADOPTED FORPROCESS ADOPTED FOR

FINALISATION OF DOCUMENTSFINALISATION OF DOCUMENTS

WPP of NTPC was beingWPP of NTPC was being

followedfollowed

Need felt for updating to suitNeed felt for updating to suitTransmission SectorTransmission Sector

requirements, based onrequirements, based on

experience gained over theexperience gained over theyearsyears

POWERGRID WPPP finalisedPOWERGRID WPPP finalised


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Process For DocumentProcess For Document

Finalisation.Finalisation.

Services of ConsultantServices of Consultanttakentaken

Wide consultations wereWide consultations wereunder-taken withinunder-taken withinPOWERGRIDPOWERGRID

A no. of drafts wereA no. of drafts wereprepared and commentsprepared and commentswere sought from allwere sought from allconcernedconcerned

Final draft was laced onFinal draft was laced on



Services of ConsultantServices of Consultanttakentaken

Wide consultations wereWide consultations wereunder-taken withinunder-taken withinPOWERGRIDPOWERGRID

A no. of drafts wereA no. of drafts wereprepared and commentsprepared and commentswere sought from allwere sought from allconcernedconcerned

Final draft was laced onFinal draft was placed on


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Copy of documentCopy of document

circulated to fundingcirculated to funding

agencies (World Bank,agencies (World Bank,ADB etc) , Ministry, CVC,ADB etc) , Ministry, CVC,

CAG etcCAG etc

Comments received wereComments received weredeliberated and suitablydeliberated and suitably

incorporatedincorporated



Copy of documentCopy of document

circulated to fundingcirculated to funding

agencies (World Bank,agencies (World Bank,ADB etc) , Ministry, CVC,ADB etc) , Ministry, CVC,

CAG etcCAG etc

Comments received wereComments received weredeliberated and suitablydeliberated and suitably

incorporatedincorporated


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The WPPP is organised intoThe WPPP is organised intotwo Volstwo Vols

Volume I (PreVolume I (Pre

award)award)

Volume- II(PostVolume- II(Post

AwardAward))

The WPPP is organised intoThe WPPP is organised intotwo Volstwo Vols

Volume I (PreVolume I (Pre

award)award)

Volume- II(PostVolume- II(Post

AwardAward))


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WPPP is aimed at :WPPP is aimed at :WPPP is aimed at :WPPP is aimed at :

1 Transparency and consistency indecision making

2 Mapping of roles & responsibilities ofdifferent departments.

3 Benchmarking of time schedules forvarious activities.

4 Providing Methodology/ Guidelines to

deal with real issues/ situations.Covering entire gamut of Activities fromconception of the Project to C

ompletion

1 Transparency and consistency indecision making

2 Mapping of roles & responsibilities ofdifferent departments.

3 Benchmarking of time schedules forvarious activities.

4 Providing Methodology/ Guidelines to

deal with real issues/ situations.Covering entire gamut of Activities fromconcep

tion of the Project to Completion


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Review of WPPPReview of WPPP

envisaged after oneenvisaged after oneyear ofyear of

implementationimplementation

Review of WPPPReview of WPPP

envisaged after oneenvisaged after oneyear ofyear of

implementationimplementation Further, the procedure for

modification/ addition inWPPP, which may benecessissated based onexperience or other reasons,

has been given in thedocument itself.

Further, the procedure for

modification/ addition inWPPP, which may benecessissated based onexperience or other reasons,has been given in thedocument itself.


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Vol I (Pre-Award) CoversVol I (Pre-Award) CoversVol I (Pre-Award) CoversVol I (Pre-Award) Covers

Project Conception and approval

Internal Zero Date

Package list -Corporate / Site

MNW

Finalisation of Cost Estimate

Qualification Requirement of Bidders

Selection of Bidding Process

Finalisation of Bidding Documents

Calling of Tenders

Project Conception and approval

Internal Zero Date

Package list -Corporate / Site

MNW

Finalisation of Cost Estimate

Qualification Requirement of Bidders

Selection of Bidding Process

Finalisation of Bidding Documents

Calling of Tenders


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Vol I CoversVol I CoversVol I CoversVol I Covers

Contd..

10 Bid Receipt and Opening

11 Evaluation of Bids

12 Post Bid Discussions

13 Award of Contract

AND

Various Pre-award Issues

Contd..

10 Bid Receipt and Opening

11 Evaluation of Bids

12 Post Bid Discussions

13 Award of Contract

AND

Various Pre-award Issues


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Salient Points of Vol ISalient Points of Vol ISalient Points of Vol ISalient Points of Vol I

Standardisation of : Package list

Qualification requirement

Bidding Documents

-

Approvals at higher levelrequired only in case ofdeviation from standard

Standardisation of : Package list

Qualification requirement

Bidding Documents

-

Approvals at higher levelrequired only in case ofdeviation from standard


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Salient Points of Vol I .Salient Points of Vol I .Salient Points of Vol I .Salient Points of Vol I .Specifies decision methodology for

selecting Bidding Process and modeof calling tenders.

eg Two Stage Bidding for Packageswhich are: Technically Complex;specialised in nature; POWERGRIDhas limited experience; Specs fastchanging

(Price bids from Bidders conformingto an acceptable common technicalstandards & other conditions/ QR)

Specifies decision methodology for

selecting Bidding Process and modeof calling tenders.

eg Two Stage Bidding for Packageswhich are: Technically Complex;specialised in nature; POWERGRIDhas limited experience; Specs fastchanging

(Price bids from Bidders conformingto an acceptable common technicalstandards & other conditions/ QR)


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Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I .. Spells out evaluation methodology

in details including that for

Arithmetic corrections

Cost compensation forcommercial/ technical deviations

Seeking post bid clarifications

When to carry out negotiations

Spells out evaluation methodology

in details including that for

Arithmetic corrections

Cost compensation forcommercial/ technical deviations

Seeking post bid clarifications

When to carry out negotiations


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Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I ..

Specifies Methodology to dealwith change in sub-vendors, ifrequested by recommendedbidder during post biddiscussions, taking care offinancial implications

Specifies Methodology to dealwith change in sub-vendors, ifrequested by recommendedbidder during post biddiscussions, taking care offinancial implications


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Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I .. Defines Applicability of WPPP - not

applicable in case of Restoration Works

All activities to commence from InternalZero Date, monitored through MNW

Pre-Award actions and advanceExpenditure on New Projects prior to

approval - to avoid delay

Late Bid, after bid opening, to besummarily rejected

Defines Applicability of WPPP - not

applicable in case of Restoration Works

All activities to commence from InternalZero Date, monitored through MNW

Pre-Award actions and advanceExpenditure on New Projects prior to

approval - to avoid delay

Late Bid, after bid opening, to besummarily rejected


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Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I .. Single response against Open Tender

to be treated as Open Tender

Change in BOQ, during bidding methodology to deal with is spelt out

Bid Evaluation Comparison withestimate on overall basis; No negotiationupto a variation of (+ve) 10%

Single response against Open Tender

to be treated as Open Tender

Change in BOQ, during bidding methodology to deal with is spelt out

Bid Evaluation Comparison withestimate on overall basis; No negotiationupto a variation of (+ve) 10%


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Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I ..Salient Points of Vol I ..

Owner supplied materials in case ofsite packages - BG done away with

CPG / Security Deposit for sitepackages

- deduction from RA bill allowed

Works Contract Tax - to be included

in bid price

Octroi / Entry Tax reimbursable onbought-out items also

Separate procedure for procurement of

software solutions

Owner supplied materials in case ofsite packages - BG done away with

CPG / Security Deposit for sitepackages

- deduction from RA bill allowed

Works Contract Tax - to be included

in bid price

Octroi / Entry Tax reimbursable onbought-out items also

Separate procedure for procurement of

software solutions


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VOLUME II- POST AWARDVOLUME II- POST AWARD

AREAS COVEREDContract SigningArranging CPGRelease of Initial Advance(Supply)Finalisation of L2 NetworkDetailed Engineering, Drawingapproval and Type TestingSub-vendor/Sub-ContractorsapprovalInspection and DespatchClearance


AREAS COVEREDContract SigningArranging CPG

Release of Initial Advance(Supply)Finalisation of L2 NetworkDetailed Engineering, Drawingapproval and Type TestingSub-vendor/Sub-ContractorsapprovalInspection and DespatchClearance


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AREAS COVERED..contdProject MonitoringOpening of LC, Processing ofBills and Release of Payment

Technical Approval forvariationsAdministrative approval forissue of amendment

Time Extension and LiquidatedDamagesCommissioning and TakingOver

Revised Cost EstimateDis ute Resolution and


AREAS COVERED..contdProject MonitoringOpening of LC, Processing ofBills and Release of Payment

Technical Approval forvariationsAdministrative approval forissue of amendment

Time Extension and LiquidatedDamagesCommissioning and TakingOver

Revised Cost EstimateDis ute Resolution and


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(IMPORTANT AREAS)(IMPORTANT AREAS)

Time Extension And LiquidatedDamage

Guidelines for decision

making No LD to be imposed if net delay

is not attributable to the

Contractor Token LD to be levied if net delay

is attributable to Contractor &Loss not suffered by POWERGRID

Methodology for calculating


(IMPORTANT AREAS)(IMPORTANT AREAS)

Time Extension And LiquidatedDamage

Guidelines for decision

making No LD to be imposed if net delay

is not attributable to the

Contractor Token LD to be levied if net delay

is attributable to Contractor &Loss not suffered by POWERGRID

Methodology for calculating


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LD(Contd)

Methodology to find out delayattributable to the Contractor

Total Delay= ADelay due to force majeure =BDelay attributable toPOWERGRID =CConcurrent period in B & C = XNet period of delay on accountof Force Majeure andPOWERGRID= B+C-XNet period of dela on account


LD(Contd)

Methodology to find out delayattributable to the Contractor

Total Delay= ADelay due to force majeure =BDelay attributable toPOWERGRID =CConcurrent period in B & C = XNet period of delay on accountof Force Majeure andPOWERGRID= B+C-XNet period of delay on account


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LD(Contd)Loss, if any, suffered by

POWERGRID viz.

Extra payment to other contractor

Extra payment to other agencies

Compensation to generatingcompany towards deemed

generation Delay in return on investment

Exchange rate fluctuation in a

foreign currency contract,wherever a licable


LD(Contd)Loss, if any, suffered byPOWERGRID viz.

Extra payment to other contractor

Extra payment to other agencies

Compensation to generatingcompany towards deemed

generation Delay in return on investment

Exchange rate fluctuation in a

foreign currency contract,wherever a licable


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LD(Contd)

Methodology to work out LDAmount if the delay is

attributable to contractor andloss suffered by POWERGRIDLoss > Full LD Amount as percontract

Leviable LD= Full LDLoss < Full LD Amount as percontract

Leviable LD= Loss+

Token LD subject to


LD(Contd)

Methodology to work out LDAmount if the delay is

attributable to contractor andloss suffered by POWERGRIDLoss > Full LD Amount as percontract

Leviable LD= Full LDLoss < Full LD Amount as percontract

Leviable LD= Loss+

Token LD subject to


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LD(Contd)Pending finalisation of LD,payment to the contractor shall

continue in case of Corporatepackages without deduction onthis account on theconsideration that theretention amount and BGs(against retention etc) areavailable. However deductionstowards LD from progressivepayment can be made only

after approval of ED(Region), if


LD(Contd)Pending finalisation of LD,payment to the contractor shall

continue in case of Corporatepackages without deduction onthis account on theconsideration that theretention amount and BGs(against retention etc) areavailable. However deductionstowards LD from progressivepayment can be made only

after approval of ED(Region), if


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CONTRACT CLOSINGMonitoring for Contract closing to

commence on completion of 80-90% of scopeContract Closing Certificates 13 innumber, To be issued by not lessthan Manager

A Contract to be treated as closedon Release of CPG/SD onsuccessful completion of warrantyperiod and on Issuance of CCP-13Closing of a Contract to be

formally declared by theconcerned Contracts Deptt.,acting as co-ordinator, afterascertaining receipt of allcertificates

All activities except release ofCPG/SD of Contract closing to be


CONTRACT CLOSINGMonitoring for Contract closing to

commence on completion of 80-90% of scopeContract Closing Certificates 13 innumber, To be issued by not lessthan Manager

A Contract to be treated as closedon Release of CPG/SD onsuccessful completion of warrantyperiod and on Issuance of CCP-13Closing of a Contract to be

formally declared by theconcerned Contracts Deptt.,acting as co-ordinator, afterascertaining receipt of allcertificates

All activities except release ofCPG/SD of Contract closing to be


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CUSTODY AND RELEASE OF BGs

Finance to be custodianStreamlined procedure for

monitoring all BGsAdvance BG will bereleased on adjustment offull advance.CPG to be reduced to 50%on taking overQuarterly review of statusby ED(region) in respect ofall critical BGs on the basisof MIS prepared by PESM


CUSTODY AND RELEASE OF BGs

Finance to be custodianStreamlined procedure for

monitoring all BGsAdvance BG will bereleased on adjustment offull advance.CPG to be reduced to 50%on taking overQuarterly review of statusby ED(region) in respect ofall critical BGs on the basisof MIS prepared by PESM


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ADVANCEMENT OF SUPPLIESAdvancement of supplies maybe on account of the following

- Requirement fromPOWERGRID

- For timely completion ofPOWERGRIDs projectAdvancement to be normallyallowed except for fund/storage

constraints as it is positive stepNo approval required foradvancement upto 30 days.Once advancement allowed, PV

as per actuals


ADVANCEMENT OF SUPPLIESAdvancement of supplies maybe on account of the following

- Requirement fromPOWERGRID

- For timely completion ofPOWERGRIDs projectAdvancement to be normallyallowed except for fund/storage

constraints as it is positive stepNo approval required foradvancement upto 30 days.Once advancement allowed, PV

as per actuals


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QUANTITY VARIATION PROVISIONS(CONTD)Revised ProcedureUniform Quantity Variation Provisionsin all types of contract

Overall limit of +/- 15% of contractpriceNo limit for individual itemsIf overall contract price exceed 15%. Payment at unit rates upto

quantities originally provided in thecontract .unit rate for thequantities executed beyond (+15%)to be negotiated and finalisedA token compensation @ 0.01% of

Contract price for every 1% reduction


QUANTITY VARIATION PROVISIONS(CONTD)Revised ProcedureUniform Quantity Variation Provisionsin all types of contract

Overall limit of +/- 15% of contractpriceNo limit for individual itemsIf overall contract price exceed 15%. Payment at unit rates upto

quantities originally provided in thecontract .unit rate for thequantities executed beyond (+15%)to be negotiated and finalisedA token compensation @ 0.01% of

Contract price for every 1% reduction


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Reference Contract PriceFor different purposes suchas Quantity Variation, LDamount, CPG value, Advance

amount. Contract price asoriginally awarded

Amendment to

Contract Price willnot affect LD amount,CPG Value, advanceamount resulting in

simplified contract


Reference Contract PriceFor different purposes suchas Quantity Variation, LDamount, CPG value, Advance

amount. Contract price asoriginally awarded

Amendment to

Contract Price willnot affect LD amount,CPG Value, advanceamount resulting in

simplified contract


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TURNKEY CONTRACT ANDLUMPSUM PRICE

Lumpsum price ofitems to remainunchangedirrespective of

quantities actuallyexecuted Unlessscope change iseffected by

POWERGRID.


TURNKEY CONTRACT ANDLUMPSUM PRICE

Lumpsum price ofitems to remainunchangedirrespective of

quantities actuallyexecuted Unlessscope change iseffected by

POWERGRID.


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Change of sub-vendor asper WP policy(volume I) to

be followed during postaward stage.


Change of sub-vendor asper WP policy(volume I) to

be followed during postaward stage.


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Acceptance of BG from a Bank otherthan specified in contract

To be accepted in exceptionalcircumstances with theapproval of ED (finance)


Acceptance of BG from a Bank otherthan specified in contract

To be accepted in exceptionalcircumstances with theapproval of ED (finance)


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Procedure for taking up new work /quantum of work exceeding the

contract item pending ContractAmendment

Any new work / quantum of workexceeding the contract item shallbe taken up only after technicalclearance / technical approval.

On receipt of technical clearance /technical approval communicationto be sent to contractor and allconcerned with the quantum ofwork to be taken up by thecontractor so that progress of

work continues pending issue of


Procedure for taking up new work /quantum of work exceeding the

contract item pending ContractAmendment

Any new work / quantum of workexceeding the contract item shallbe taken up only after technicalclearance / technical approval.

On receipt of technical clearance /technical approval communicationto be sent to contractor and allconcerned with the quantum ofwork to be taken up by thecontractor so that progress of

work continues pending issue of


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PROJECT MANAGERFor a more coordinatedapproach in major/important/specialized projects

Normally at a level of AGM &above


PROJECT MANAGERFor a more coordinatedapproach in major/important/specialized projects

Normally at a level of AGM &above


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ARBITRATION / DRP

Normally Arbitration / DRP shallbe avoided to the extentpossiblePrior to reference of a disputeby contractor to Arbitration /DRP, at least one attempt shallbe made for amicable settlementby a standing committee asfollows.

for Corporate awardedpackages : ED(Fin),ED(CS),ED(Engg/LD&C/Telecom),

ED(Region) headed by


ARBITRATION / DRP

Normally Arbitration / DRP shallbe avoided to the extentpossiblePrior to reference of a disputeby contractor to Arbitration /DRP, at least one attempt shallbe made for amicable settlementby a standing committee asfollows.

for Corporate awardedpackages : ED(Fin),ED(CS),ED(Engg/LD&C/Telecom),

ED(Region) headed by


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Retention of documentsAll documents pertaining toaward and implementationagainst a contract shall be

retained for a period of eightfinancial years after the closingof the contract.Thereafter the same can be

destroyed if not underexamination / scrutiny by anyinvestigating authorities)


Retention of documentsAll documents pertaining toaward and implementationagainst a contract shall be

retained for a period of eightfinancial years after the closingof the contract.Thereafter the same can be

destroyed if not underexamination / scrutiny by anyinvestigating authorities)


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Thus the WPP

formalises and consolidatesthe policies, procedures

hitherto followed for contractadministration and re-engineers the processess,

using the experience gainedover the years and, providesbenchmark time schedules fordifferent activities

Thus the WPP

formalises and consolidatesthe policies, procedures

hitherto followed for contractadministration and re-engineers the processess,

using the experience gainedover the years and, providesbenchmark time schedules fordifferent activities


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Delegation of PowersDelegation of Powers

Contents :Contents :

- Delegation by Board to CMDDelegation by Board to CMD

-

DOP for construction stage of approvedDOP for construction stage of approvedprojectsprojects

- DOP for O&MDOP for O&M


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Contents (Contd):Contents (Contd):

- DOP for Personnel Powers in CCDOP for Personnel Powers in CC

- DOP for Admin Powers in CCDOP for Admin Powers in CC

- DOP for P&A powers in RegionsDOP for P&A powers in Regions

- DOP for ConsultancyDOP for Consultancy

- DOP for Bond CellDOP for Bond Cell


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Salient PointsSalient Points

- Concurrence by Finance necessary unlessConcurrence by Finance necessary unlessotherwise specifiedotherwise specified

- Subject to observance of relevant policySubject to observance of relevant policyguidelines, rules and regulations and instructionsguidelines, rules and regulations and instructionson system and procedureon system and procedure

- Full Powers not to exceed powers of CMDFull Powers not to exceed powers of CMD


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Powers of CMDPowers of CMD

- By Exception i.e., authorised to exerciseBy Exception i.e., authorised to exerciseall or any power rested in Board except asall or any power rested in Board except as

in Annexure-A of DOPin Annexure-A of DOP- Award of Contracts upto Rs. 10 Cr; 10 toAward of Contracts upto Rs. 10 Cr; 10 to

20 Cr. By Sub-committee; beyond 20 Cr.20 Cr. By Sub-committee; beyond 20 Cr.

By BoardBy Board


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Powers excluded from Delegation to CMDPowers excluded from Delegation to CMD

- Feasibility Reports, Projects Reports andFeasibility Reports, Projects Reports andEstimates etc. costing more than 5 Cr.Estimates etc. costing more than 5 Cr.

- Any deviation in estimate approved byAny deviation in estimate approved byBoard/ GoI, which is more than 10% forBoard/ GoI, which is more than 10% forany component part of project.any component part of project.


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Powers excluded from Delegation to CMDPowers excluded from Delegation to CMD(contd..)(contd..)

- Consultancy Contracts beyond 50 lakh asConsultancy Contracts beyond 50 lakh as

against 10 Cr. For othersagainst 10 Cr. For others- Write off of stores, plant and machineryWrite off of stores, plant and machinery

more resulting in net loss of more thanmore resulting in net loss of more than

10 lakhs10 lakhs


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Canons of Financial ProprietyCanons of Financial Propriety

- Expenditure should not be prima facieExpenditure should not be prima faciemore than occasion Demandsmore than occasion Demands

- Same vigilance to be exercised as of ownSame vigilance to be exercised as of ownmoneymoney

- Allowances not to be source of profitAllowances not to be source of profit

- Subject to approved budgetSubject to approved budget


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Powers of Executives (some examples)Powers of Executives (some examples)

(Construction Stage)(Construction Stage)

- Technical & Administrative approval ofTechnical & Administrative approval of

Cost EstimatesCost Estimates

ED upto 500 lakhsED upto 500 lakhs

Manager upto 10 lakhsManager upto 10 lakhs


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Approval of Award of Contracts (openApproval of Award of Contracts (open

tender)tender)

ED upto 500 lakhsED upto 500 lakhs

GM upto 150 lakhsGM upto 150 lakhs

Dy Manager upto 5 lakhsDy Manager upto 5 lakhs


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Thank YouThank You