Para 7.6.6 — WORKS_MANUAL

ii) Scope & Design creep are widely stated causes for project delays. Changes in scope or design midway or at start cause time and cost variations. It may be therefore essential to consider options thoroughly and spend time on designs exhaustively at the time of DPR preparation and before procurement.

iii) Timely release of payments to contractors raises the confidence level of contractors to mobilise more resources for early completion. DMRC’s practice of releasing 80% of the Interim Payment Certificates (Bills) within 14 days of claim by contractor and the rest within 28 days of certification by the Engineer. Building these payment clauses into contracts raises contractor confidence, reduces project risk perception and enables better prices.

7.6.6 Structuring contracts for timely completion i) Optimal sharing of risks has been a balanced way of ensuring that the time and costs of completion of a project do not go way off the mark. Structuring contract clauses keeping in mind the principle of ‘responsibility for each risk shall be with the party best equipped to handle it’ has enabled contracts to lead to lower risk perception by bidders and as a result offer better prices. Contract clauses need to be further screened using this principle.

iv) Embedding a fair price variation clause in contracts that mimics the market forces of escalation/reduction would lower risks to contractors and to the public organisation as well. PV clauses would vary from contract to contract, depending the structure of materials and costs. v) Dispute Resolution Board (DRB) may be created by express consent of the procuring entity and the contractor to monitor the project execution at various stages of completion. This is a conciliation forum to resolve disputes amicably. The primary function of DRBs is to monitor the progress of the project with respect to contract requirements. In case of any non-compliance with respect to the contract, the Board immediately interferes and suggests ways to resolve the dispute. DRB mechanism may be embedded in contracts. vi) Encourage institutional arbitration: Settlement of disputes through Institutional arbitration is better than ad-hoc arbitration. Institutional arbitration provides an established format with a proven record ensures impartial decision-making and adherence to pre-established rules and procedures.

7.6.7 Aligning the Interest of The Stakeholders i) The incentive structure for all the key stakeholders of public procurement ought to be such that the system itself will ensure timely delivery of the projects / works in a qualitative manner within approved cost. A balanced framework and work culture, where risk and rewards are properly shared amongst stakeholders and timely completion of quality projects is the common goal, can be the bedrock of efficient project management. An incentive structure, which may include pecuniary as well as non-pecuniary aspects (Including public recognition), linked with measurable parameters of outcome / output, can help align the interests of stakeholders. An ethics based regime, where integrity of all the stakeholders is nurtured, can help increase efficiency in all aspects of project management. ii) Public authorities may devise strategies to provide incentives to contractors /concessionaires/ consultants/ architects/ other stakeholders by various means, including bonus, better rating and recognition for early/ timely / quality completion of the projects. Similar strategies may be devised for recognition of engineers/ officers/ other team members for early / timely and quality completion of the projects. The practice of mentioning the names of the contractor and the project in charge publicly at work sites may be implemented. Such recognition may be in a form which has long shelf life so as to associate the contractor and project In-charge with the life of the project. iii) “Coming together is a beginning; keeping together is progress; working together is success”. It is an accepted fact that the success of any project is dependent on a wellcoordinated team working towards a common goal. For successful execution of any project within specified time, cost and quality, the interest of all the stakeholders need to be aligned. Coordinated efforts of all stakeholders such as contractors, consultants, public authority and project executing authority and public representatives will bring about the best possible outcome.

Hierarchy Level Annexure 1: Procurement Guidelines (Refer Para 1.1) I – Statutory Framework The Constitution of India Indian Contract Act, 1872; Sale of Goods Act, 1930 and other Mercantile Laws Other Laws relevant to Public Procurement (e.g. Right To Information Act, 2005; The Micro, Small and Medium Enterprises Development Act, 2006; Prevention of Corruption Act, 1988 etc) II – Rules and Regulations General Financial Rules, 2017 Delegation of Financial Power Rules Any other financial, vigilance (e.g. CVC Guidelines), security, safety, counter- trade and other regulatory aspects; orders and guidelines of the Government on the subject of Public Procurement III –Ministry of Finance’s Manuals Ministry of Finance’s Manual for the Procurement of Good/ Works and Consultancy Services (including non-consultancy services) IV – Procuring Entities’ Codes/ Manuals and Standard Bidding Documents More Comprehensive and detailed Codes and Manuals for Public Procurement for various categories issued by ‘Procuring Entities’ for their own use Standard Bidding Documents for Procurement of Goods/ Works/ Consultancy Services etc.

Remarks: The documents at Hierarchy Levels I and II above are of fundamental and generic nature. Documents at lower levels of hierarchy must conform to the Documents higher up in hierarchy. Relationships of Bidders/ Suppliers/ contractors/ service providers with procuring entities are solely governed by the law of the land and the relevant bid/ contract/ enlistment document(s). Other documents at hierarchy levels II and III mentioned above shall have no locus standi in such relationships.

Attendance Record Sr No Bidder’s Name Bidder’s Address Bidder’s Authorisatio n and Date Represented by Contact No. Signature of Representative

Bid Opening Report Tend er No Title Date of Opening Offer No. Bidde r’s Name Bidde r’s Ref and Date Submiss ion of Requisit e EMD (Y/ N) Submissio n of other Mandatory Documents (Y/ N) Rate Quote d and Taxes/ Duties Signature of Representative --/ --- --/ -- --/ --

Signature, Date and Time Name and Designation of Tender Opening Officer Signature, Signature, Date and Time Name and Designation of Tender Opening Officer

Signature, Date and Time Name and Designation of Procuring Entity Officer Signature, Signature, Date and Time Name and Designation of Procuring Entity Officer

Annexure 2: Bid Opening Attendance Sheet cum Report (Refer Para 4.10 (iv)) [Name of Procuring Entity] Bid (Techno-commercial/ Financial) Opening Attendance Sheet cum Report

Total no. of regular tenders taken out from the tender box to be opened as mentioned above................................................... (in figures and in words)

Received total regular tenders....................... (In figures/ words) as above