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MCEWPt1_ver241107F.doc

40Manual for Civil Engineering Works (Part I)

opened and the original price bids are to be kept in tact.

Original offer is opened along with the revised offer only in case the tenderer connects hisrevised offer with the original offer.

Price bids of the tenderer will have no condition and a comparative statement of the price bidsoffered by different tenderers is prepared for scrutiny of the tender committee. The price bids which areincomplete and not submitted as per the instructions given in the tender document are rejected.

EVALUATION REPORT: The Evaluation report will be prepared by a committee comprisingrepresentatives from the Contracts, Engineering and Finance Departments or such departments of thecompany as are handling this task. It will evaluate bids only on the basis of set criteria which will beclearly stated in the bid documents. It will not, nor will it be compelled to change the criteria, after theprice bids have been opened. No document presented by the bidder after the closing date and time of

the bid will be taken into account by the Evaluation committee unless it is of a purely technical naturewhich has no bearing financially on the contract and which does not seek major changes in technicalspecifications given in the bid documents. If a bidder offers a rebate unilaterally after the closing dateand time of the bid, it will not be taken into account for evaluating purposes by the Tender Committee,but, if that bidder emerges as the lowest evaluated, the rebate offered will be taken into account by theHead of the department co-ordinating the contract, while forwarding the Tender Committee'srecommendations to the accepting authority and while awarding the contract. The Tender Committee'sreport will be self-contained, clear and unambiguous. If any cost compensation is carried out onaccount of technical deviation or on other factors, it will be mentioned in the evaluation report, in termswhich can easily be understood by non-technical officials.

If the prices quoted are above or below the upto date cost estimate by a percentageconsidered abnormal, say 10%, the Tender Committee will give, after consulting the Cost Engineering

Department, the reasons for such variation. Cogent reasons will be given for rejecting bids as non-responsive.

ITEMWISE EVALUATION: If the bid of the successful bidder is seriously unbalanced inrelation to the estimate of the cost of the work to be performed under the contract, the company mayrequire the bidder to produce detailed price analysis for any or all items of the bill of quantities, todemonstrate the internal consistency of these prices with the construction method, and scheduleproposed. After evaluation of the price analysis, the company may require that the amount of theperformance security is increased at the expense of the successful bidder to a level sufficient to protectthe company against financial loss in the event of default of the successful bidder under the contract.The definition of seriously "unbalanced bid" will no doubt vary from organisation to organisation andfrom contract to contract. It is therefore, essential that before bids are called for, the Cost Engineering

Department must fix the price above or below which the pricing of an item would be termed as seriouslyunbalanced. If the pricing of the bidder is such that he is likely to garner a major portion of the value ofthe contract at the initial stage of the project itself, the bid will be evaluated appropriately after carefullyassessing the resultant fund flow.

In case a bid is indicated as seriously unbalanced then the TC will necessarily ask forsubmission of detailed analysis of rates from the bidder in order to come to a conclusion. In the event ofacceptance of seriously unbalanced bid then the performance security/security deposit may have to be


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increased in a manner so as to protect the interest of the company.

The concept of fund flow may be adopted for works valued at over Rs. 2 core since for smallerworks the procedure may be cumbersome & irrelevant.

After ascertaining the justified rate, the variation in award of work should generally be + 10% ofthe justified rate.

Deviation sought by the bidders; whether they are commercial or technical deviation; must onlybe given in the schedules prescribed for them. Any willful attempt by the bidders to camouflage the

deviation by giving them in the covering letter or in any other documents than the prescribed schedulesmay render the bid itself as "Non-responsive".

Any of the following methods shall be adopted for aiming at the justification of the rate:

i) Analysing rates of major items arranged in descending order in terms of value on the wholecosting 80% of the estimated cost put to tender based on prevalent market rates of materials, labourand carriage etc. as per standard analysis of rates of N.B.O/C.P.W.D. and then working out thepercentage on this basis.

ii) Calculating the increase in cost due to :-

a) Increase in rates of stipulated materials over those adopted in schedule of rates used for

estimate.b) Increase in rates of non-stipulated materials.c) Increase in labour cost.

Adoption of a particular method shall be decided judiciously by CGM(Civil)/ GM (Civil)/SO(Civil).

In case of second method while calculating increase in cost, 2.5% (two and half) for handlingcharge and 10% as contractor's profit and overhead shall be added for stipulated materials. Similarly fornon-stipulated materials difference in cost shall be worked out by adding 10% on material cost and 10%on applicable schedule of rates cost.

The cost of carriage should be calculated separately for major materials with leads involved:

a) For major stipulated materials.b) For major non-stipulated materials like bricks, aggregates, sand, timber and non-stipulated steel.c) Other materials like Terrazzo tiles, A.C. Sheets, Sanitary fittings should be inclusive ofcarriage and this need not be calculated separately.

Increase in labour cost shall be worked out for increase in minimum wages of the unskilledlabour.


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The arithmetic sum of the weighted percentage as worked out for the above shall be justifiedpercentage above the estimated cost.

Abnormally high rates & abnormally low rates in the item rate tenders shall be regularized anddealt as per details given below:

i) For identification of AHR & ALR items the ceiling of +/- 20% respectively ; when comparedwith the updated estimated rate ; is considered as reasonable. Updating shall be done after addingpercentage calculated as per system laid down earlier on the estimated rate.

ii) Variation in Quantity during execution on quoted rate for AHR & ALR items shall bepermitted upto +/- 25% of the Quantity provided for items of work below plinth level & +/-5% of thequantity provided for items of work above plinth level.

iii) Quantity variation beyond the limit mentioned at ii) above shall be dealt by arriving at newrate based on prevalent market rates of materials and labour analysed as per standard analysis of rateof N.B.O./C.P.W.D. Payment of extra quantity over the permitted quantity of +/- 25% and +/- 5% (as the casemay be) would be made on the basis of the new analysed rate or the quoted rate whichever is less.

iv) For identified abnormally low rate ( ALR) items, the contractor will be required to deposit withthe company the difference in amount calculated between the departmental justified rate multiplied bythe quantity of a particular ALR item and the ALR rate quoted by the contractor multiplied by thequantity of the same item. The total amount to be deposited will be the sum total of all the identified

ALR items calculated as per the method outlined above.

The amount so retained will be refunded on successful completion of the individual ALR items ofwork.

The Act governing Royalty/Cess on Minor Minerals is a state subject Therefore it's application willdepend on respective legislation in force at the place of work.

Based on the above scrutiny/ examination of the valid tenders/ price bids the TC may

recommend the award of work to the lowest tenderer(L1) provided :

a) The overall amount for the contract as well as rates for individual items of work quoted by L1are justified, competitive and reasonable/ workable when compared to comparable rates such asprevailing market rates (wherever possible and practicable), schedule of rates of the company or ratesrecently awarded for similar jobs in the company and in conformity with the guidelines given at Cl.4.18.

b) it is not obligatory to recommend the award of work to the lowest tenderer in any case . Incase the lowest tender is found to be unworkable and impractical the same may be superseded

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