Kamarajar Port Limited: Tender Procedure Manual

KAMARAJAR PORT LIMITED
(A MINI RATNA Govt. of India Undertaking)
TENDER PROCEDURE MANUAL
July 2014
CONTENTS
CHAPTERS DESCRIPTIONS PAGE NO
CHAPTER 1 GENERAL
1.0 ACTIVITIES CONNECTED TO WORKS 1
2.0 DEFINITION 2
2.1 Works 2
2.1.1 Civil Works 2
2.1.2 Electrical Works 3
2.1.3 Marine Works 3
2.2 Works Manual 3
2.3 Indent 3
2.4 User / Indenter 4
2.5 Competent Authority 4
2.6 Competent Technical Authority 4
2.7 Competent Tender Accepting Authority 4
2.8 Project Manager / Engineer-in-charge 4
2.9 Project Co-ordinator / Site-in-charge 4
2.10 Procurement 4
2.11 Tender Committee 4
3.0 CLASSIFICATION OF WORKS 4
3.1 Capital Works 5
3.2 Revenue Works 5
CHAPTER 2 PRE-TENDERING ACTIVITIES

4.0 STAGES FOR EXECUTION OF WORK 6
5.0 BASIS OF COST ESTIMATES 8
6.0 APPROVAL / SANCTIONS 10
6.1 Administrative Approval 10
6.2 Technical Sanction 10
6.3 Finance Concurrence of Estimates 11
7.0 EXPENDITURE SANTIONS 12
8.0 EXCESS OVER EXPENDITURE SANCTION 12
During Placement of LOI/Award of Work / Notice
8.1 12
of Award
8.2 During Execution 12
9.0 REVISED TECHNICAL SANCTION 13
10.0 APPOINTMENT OF SPECIALIST SERVICES 13
10.1 Consultants 13
10.2 Specialists 13
10.3 Third Party Agency 14
10.3.1 Third Party Certification Agency 14
10.3.2 Third Party Inspection Agency (TPI) 14
10.3.3 Empanelment of Consultants / Third
party Inspection Agency (TPI) / Certification 14
Agency
CHAPTER 3 TENDERING PROCESS

11.0 TYPES OF TENDERS 15
11.1 Item rate tenders 15
11.2 Percentage rate tenders 15
11.3 Lump-sum Turnkey /EPC Tenders 15
12.0 TENDERING METHODOLOGY 15
12.1 Open Tenders 15
12.2 Limited Tenders 16
12.3 Single Tender / Nomination on Emergency Basis 17
12.4 Engagement of Consultant / Expert / Agency 17
12.5 Works on Hand Quotation Basis 18
12.6 Through e-Tendering Mode 18
13.0 RATE CONTRACT 20
13.1 Works 20
APPROVED LIST OF EMPANELLED
14.0 22
CONTRACTORS FOR LIMITED TENDERS
14.1 Performance Evaluation 23
14.2 Removal from the approved list 23
14.3 Extension of Period of Empanelment 24
15.0 BIDDING SYSTEM 24
15.1 Single Envelope System 24
15.2 Two Envelope System 24
15.3 Three Envelope System 25
15.4 Essential Qualification Requirement (EOP) 26
15.5 Scale of Charges for Tender Documents 27
15.6 Time Limit for Publicity of Tenders 28
CHAPTER 4 TENDER DOCUMENTS AND APPROVALS

16.0 STAGES OF APPROVAL 29
17.0 EXECUTION METHODOLOGY 29
FINALISATION OF BEC / EQR & FLOATING OF
18.0 29
TENDERS
19.0 BIDDING DOCUMENTS 31
19.1 Content of Bidding Documents 31
19.2 Clarification of the Bidding Documents 32
19.3 Pre-bid Meeting 32
19.4 Amendment of Bidding Documents 33
19.5 Preparation of Bids 33
19.6 Bid Prices 33
19.7 Currencies of Bid and Payment 34
19.8 Bid Validity 34
19.9 Bid Earnest Money 34
19.10 Performance Guarantee 36
19.11 Security Deposit 37
Purchase of Bidding Documents by Agents in
19.12 38
India
19.13 Cancellation of Tender Refund of Tender Fee 38
19.14 Exemption from Payment of Tender Fee 38
Offers without prescribed Bidding Documents of
19.15 38
KPL
20.0 SUBMISSION OF BIDS 39
20.1 Sealing and Marking of Bids 39
20.2 Envelopes 39
20.3 Receipt of Tenders 40
20.4 Tender Register 41
20.5 Numbering of Tenders 42
20.6 Late Bids 42
20.7 Modification and Withdrawal of Bids 42
21.0 BID OPENING AND EVALUATION 43
21.1 Bid Opening 43
21.2 Process to be Confidential 44
21.3 Clarification of Bids 44
Examination of Technical Bids and Determination
21.4 44
of Responsiveness of Technical Bid
21.5 Correction of Errors 45
21.6 Price / Purchase Preference 46
Seeking Compliance from Bidders after Tender
21.7 46
Opening
21.7.1 Correspondence with Bidders 47
CHAPTER 5 AWARD OF WORK

22.0 AWARD OF WORK 48
22.1 Process for Award of Work 48
22.2 Guidelines for Award of Work 49
22.3 Issue of Work Order 53
22.4 Repeat Order 53
23.0 Notification of Award and Signing of Agreement 54
KAMARAJAR PORT LIMITED TENDER PROCEDURE MANUAL
CHAPTER -1
GENERAL
1.0 ACTIVITIES CONNECTED TO WORKS

Proposed Kamarajar Port limited Works Manual shall be applicable for
all type of contract works at Port such as Civil, Electrical, Mechanical,
Marine and Project implementation works headed by the respective Head
of the Department under the overall charge of the related functional
Director. In the absence of a separate contract cell to maintain and
control the contracts awarded, the concerned officer/department shall
maintain the records and process the cases relating to contracts, in
addition to his/her normal duties.
The broad outline of the contract related activities are as given below.
1.1 To initiate/receive the proposals for various works to be carried

out contractually by the respective departments and to process the
case for estimation of works, administrative sanction of
expenditure, award of works, etc. by the competent authority. The
cost estimates shall be prepared, checked and approved by the
Initiating Department
1.2 To process the cases of capital works included in the approved Capital
Budget for award of works and to monitor and inspect the execution of
works.
1.3 To process the rate contract for annual repair, maintenance and other
works of the company.
1.4 To obtain the details of actual work executed and to get the approval of
the competent authority for deviation in works, if any.
1.5 To process, check and control running bills, final bills, issue of materials
and recovery, wherever necessary etc. to satisfy that the work has been
executed in accordance with the contract awarded and payments are
made correctly for the work done, as per basic records at site.
1.6 To maintain the contract files/records.
Page 1 of 55
1.7 To maintain a register of pre-qualified contractors for issue of limited

tender enquiries, work-wise.
1.8 To ensure that the contract works are being carried out as per the
various statutory provisions and to submit statutory returns in time to
statutory agencies whenever required.
1.9 To ensure that the revenue/capital work proposals and tender papers
are thoroughly studied and examined to find out technical feasibility and
economic viability before they are processed for sanction and award.
1.10 To ensure accountability and responsibility of the various personnel

involved with transparency and fairness in the system.
1.11 To control time over run and cost over run in the execution of
revenue/capital works. The system and procedures detailed below shall
apply to all cases of works awarded and executed through outside
agencies, in any department of the company.
2.0 DEFINITION
2.1 Works
"Works" shall mean: any activity/group of activities/turnkey or otherwise

such as construction works inclusive of civil, mechanical, electrical,
Marine Services, operation, repair & maintenance, materials and
services, related to these installations/works
2.1.1 Civil works
Construction of berths/jetties/dredging and all ancillary

works connected with port expansions.
Related to roads & railway works, foundations & other works

and all ancillary works connected with operational
requirements.
Residential/Non-Residential buildings, RCC/Steel storage

tanks, boundary walls, estate/land development including
horticulture, landscaping, plantations, interior works,
customized furniture/furnishings etc.
Estate repairing, maintenance and upkeep in field and plant

Page 2 of 55
areas/offices/townships etc. including water supply etc.
Any other miscellaneous civil works.
2.1.2 Electrical works
Sub-stations, power supply, external and internal cabling /

Electrification,
Repair & maintenance of electrical installations/facilities in

field & plant areas/offices/townships etc. (through one
time/annual maintenance contracts etc.).
AMC, R&M of EDP equipment, Networking and other Marine

electronic equipment
2.1.3 Marine works
Works related to safe berthing /de-berthing of vessels in the

berth/jetty such as moorings, pilotage, signaling, navigational
aids etc. for loading/unloading of cargos.
Survey works related to dredging.
Works related to Environmental issues.
Works related to Safety issues, Fire Tenders
Other works
OPERATION AND MAINETENANCE OF Fire Services, Hire of

Contractual vehicles and hire of manpower services and any
other Service Contracts.
Consultancy Contracts, Project Managements, Professional

services.
2.2 'Works Manual shall mean a set of instructions/guidelines/actions to be

undertaken to execute any work.
2.3 'Indent' shall mean a requisition for a work / job by the operator / user
and will include as a minimum:
The scope of work
Administrative approval of competent authority as per DOP at the

work centre for undertaking the work.
The Expenditure Sanction and budgetary references etc if
Page 3 of 55
available, and the envisaged time schedule. In case of priority /

emergency works suitable (indication) reference shall be mentioned
in the Indent while obtaining the approval.
2.4 'User/Indenter' shall mean the (authority) Group/Department that

initiates the requisition of the work, provides sanction and arranges
budget for the same.
2.5 'Competent Authority' (CA) shall mean the appropriate authority with
delegated powers to accord administrative approval and Expenditure
sanction as per the Delegation of Powers (DOP).
2.6 'Competent Technical Authority' (CTA) shall mean the appropriate

technical authority who is delegated with relevant powers to accord
technical approvals, in respect of the indented works as per the DOP.
2.7 'Competent Tender Accepting Authority' (CTAA) shall mean the

appropriate authority who is delegated with relevant powers to accept the
tender in respect of the indented works as per the DOP.
2.8 'Project Manager/Engineer-in-Charge' shall mean the person(s)

designated to act for and on behalf of KPL for execution of the work as
per requirement of User/Indenter.
2.9 'Project Coordinator/Site-in-Charge' shall mean the person(s) nominated

by Head of Engineering Services as first person responsible for total
coordination, supervision & execution of work with an objective to
complete the work within schedule.
2.10 'Procurement' shall mean the process of making available all goods,
services, constructed/finished products, assets, etc.
2.11 'Tender Committee' for finalizing the bid evaluation criteria (BEC), and
evaluating the tenders etc., shall be constituted for each work / tender
and shall comprise representatives from the concerned Engineering
Services, Finance and the Indenter as per DOP.
3.0 CLASSIFICATION OF WORKS
All works can be primarily classified as Capital or Revenue as hereunder:
Page 4 of 55
3.1 'Capital' works will comprise of all works which facilitate to

generate/supplement revenue earnings and/or add to the Assets or
creation of infrastructure facilities. Any work of aforesaid nature which
will lead to an increase of equipment/capacity addition to the Port form
part of Plan and Non-Plan Capital Budget.
3.2 'Revenue' works will comprise of all maintenance, repair, refurbishment,

revamp works for sustaining business operation etc., form part of
Revenue Budget.
Note:
Wherever this manual does not address, issues / situations /
circumstances, works manuals will be perused / followed as the case may
be.
*****
Page 5 of 55
CHAPTER 2
PRE-TENDERING ACTIVITIES
4.0 STAGES FOR EXECUTION OF WORKS

The under mentioned stages are basic pre-requisites, which are required
to be followed before works are taken in hand or liability incurred in
connection with it.
4.1 Requisition of Work from the User Group/Indenter.
4.2 Basic scope of work and preliminary cost estimates by User

Group/Service Group Pre-Feasibility Report/Feasibility Report in case of
Large Projects.
4.3 With the above basic scope of work and cost estimates, the Indenter/User
Group shall move the case and obtain administrative approval, financial
concurrence and expenditure sanction including fund allocations. The
Indenter/User Group shall convey the Administrative Approval (AA) and
Expenditure Sanction (ES) of the Competent Authority (CA).
4.4 It must be ensured that the detailed scope of work to be tendered reflects
the indenter's intent and is 'fit for purpose.' Any additions which are
extraneous to the scope must be avoided unless duly accompanied with
the appropriate administrative authority's approval.
4.5 In case of urgency, the Head of Departments may permit invitation of

tender and finalization of offers in anticipation of sanction. In case of
Engineering Procurement and Construction (EPC) cases, approval of
Director in charge shall be obtained to initiate tender processing pending
Expenditure Sanction. However, financial concurrence must be obtained
before opening of Price Bids.
4.6 Emergency works may be resorted to if there is an operational urgency

like fire, flood, earthquake, war, civil disturbance, etc. and when it is
necessary to restore normalcy (for reasons including those related to
environment, safety and security) of equipment, machinery, civil,
mechanical or other works (including third party property) in the shortest
time and normal methods of tendering is not considered feasible. The
Page 6 of 55
user/indenter shall record the above mentioned operational urgency to

resort Nomination / Single Tender as per DoP.
4.7 The competent authority shall accord administrative approval and

expenditure sanction for emergency works as per DOP. The powers for
acceptance of tenders will be governed as per DOP or such other
revisions / instructions as may be issued from time to time.
4.8 Scope of Work
4.8.1 Finalization of Scope of work
Based on the broad scope of work available in the Feasibility

Report(FR)/ Detailed Project Report (DPR) prepared for the
approval of the scheme, Head of Engineering Services in Work
centers shall prepare the detailed and the firm scope of work,
to the extent to provide Basic engineering including order of
magnitude, estimates and preparation of Technical Bid
Packages. The detailed scope of work is to be developed and
finalized taking into account the technical inputs from Work
centers.
Geotechnical investigation for obtaining soil report and

topographical survey shall be carried out and soil/survey
report so finalized will be part of the bidding document
Work centers will provide the location coordinates for

proposed surface facilities/pipe lines.
4.8.2 In case of revamping/modification works envisaged in the scope of

work , site survey/physical check shall be carried out by the
respective discipline engineers or Consultant for preparing the
related scope of work for the Bid Package.
4.8.3 Approval of Scope of work
The approval of scope of work shall be taken from the

competent sanctioning authority. Concerned level officer of the
User / Indenter group shall have full powers.
Any change in scope of work vis--vis scope approved as above

shall require the approval of competent authority.
Normally Scope of Work should be firmed up before Invitation
Page 7 of 55
of Bids; however any specific and essential alterations

subsequent to invitation of tender may be done only with the
approval of Competent Sanctioning Authority. The
addendum/amendment shall be notified in writing to all
prospective bidders who have received the bidding documents
after the approval of Competent Sanctioning Authority. In
order to provide reasonable time to the prospective bidders, for
taking into account such amendment/addendum in preparing
their bids, time as decided by the Competent Authority shall
be allowed to the bidders for submission of bids after issuance
of such amendment/addendum.
Before inviting tender, the tender document would be vetted

by concerned department. If any changes required in the
scope, the same shall be incorporated in the tender after
obtaining necessary approvals.
4.9 Feasibility Study for Major Projects/ Schemes, Feasibility Report shall
include the contents as per prevailing guidelines issued from the
Corporation/Project Appraisal Section from time to time.
5.0 BASIS OF COST ESTIMATES
Cost estimates shall be prepared by adopting any one of the following

methodologies, as appropriate. For each type of work, there shall be only
one costing methodology approved by the respective Head.
5.1 The Standard Schedule of Rates shall be prepared for all the standard
items by adopting the standard procedures (as per CPWD norms with
prevailing market rates for labour and materials, equipments, etc.) by the
Committee constituted time to time by Competent Authority. These
estimates will be scrutinized by Finance Department during Financial
concurrence stage and get the approval of the Competent Authority as
per DoP.
5.2 CPWD rates shall also be adopted in the case of Item Rate/Percentage
Rate tenders for Civil and Electrical works, if considered relevant other
Schedule of Rates (SORs) may be adopted with the prior approval.
5.3 Where CPWD Schedule of Rates is not available, LAR (Last Awarded
Rates) duly updated by cost index for the current year or derived from the
Page 8 of 55
other existing rates by interpolation shall be applicable. If such LAR is

not available, then the rates shall be worked out with the help of
budgetary quotes and/or market rates obtained by the concerned project
executing/service group approved by Competent Authority. The CPWD
procedures for making detailed estimate based upon the budgetary
quotes/market survey shall be followed.
5.4 Market survey shall be done by the Service/Project execution group to

collect costs/budgetary quotations as per the existing practices and duly
approved by the Competent Authority.
5.5 The accuracy in the range of estimates prepared on the basis of Schedule
of quantities and schedule of rates as mentioned above shall be
considered as +/-10%.
5.6 Cost estimates for specialized nature of works shall be prepared using
project cost data obtained on budgetary basis or drawn from execution of
similar earlier works, or use of costing software/database or through
expert services of experienced project management consultant.
5.7 While carrying out market survey/collecting budgetary quotes etc., no

commitments and assurances will be held out to prospective
vendors/suppliers/contractors.
5.8 No profit margin will be considered where ever budgetary quotes are
adopted for complete item of work.
5.9 Revision of Cost Estimates
Revision of Cost estimate shall be carried out in following circumstances:
i. Time lag between the preparation of Feasibility Report and actual

tendering being considerable.
ii. Need to modify the scope of work in line with execution methodology
and additional requirements from the Asset.
iii. Cost of individual tenders may not be explicitly contained in the FR
etc.
iv. Abrupt fluctuations in the market rates.
The Consultants advice may be obtained to review the cost estimates as
Page 9 of 55
worked out in the proposal / as provided in the FR / DPR.
The revised cost estimate should be firmed up and got approved from the
Competent Authority before date of submission of the bids. These revised
estimates shall be considered for evaluation of the bids.
6.0 APPROVAL/SANCTION
6.1 Administrative Approval
6.1.1 Administrative approval for all schemes of Capital/Revenue nature

under various components shall be obtained as per DOP. Incase,
where individual scheme/component of Capital/Revenue nature
has already been approved in the Budget, a separate approval is
not required.
6.1.2 The Indenting department must ensure that the proposal is

structurally and technically sound and forward the same to
Finance Department depending upon the value as per DOP for
scrutiny and concurrence.
6.1.3 Finance Department shall scrutinize the detailed estimates and

ensure that the estimates are within the amount sanctioned under
the Budget/Administrative Approval. After the estimates are found
to be in order, financial concurrence shall be accorded and
forwarded to the competent authority as per the DOP.
6.2 Technical Sanction
6.2.1 A Technical Sanction amounts to a guarantee that the proposals

are technically sound, and that the estimates are accurately
prepared and are based on adequate data.
6.2.2 Before an estimate is technically sanctioned, the following shall be

desirable:
(i) Detailed architectural / engineering drawings and

specifications.
Page 10 of 55
(ii) Preliminary structural drawings for foundations

(iii) Preliminary structural drawings of superstructure
(iv) Preliminary drawings for internal and external services.
(v) Detailed engineering, structural and other related drawings and
specifications
6.2.3 The officers of the concerned department are empowered to accord

technical sanction as per DOP.
6.2.4 In case of multi-component projects / sub-heads of works,

sanctioned (Exp. Sanction) by the Competent Authority for
which a clear and specific provision exists in such
expenditure sanction, Technical Sanction may be accorded
for each such component by an authority, as defined under
DOP.
6.3 Finance Concurrence of Estimates
6.3.1 The estimates received in Finance Department shall be scrutinized

with reference to the following points before according financial
concurrence:
(i) That the departments concerned have followed the general

instructions regarding preparation of estimate as per Clause
5.
(ii) There shall be a budget provision in the approved budget for

the work proposed to be undertaken. In case of part estimate
for projects, it maybe ensured that the proposed work falls
within the scope of the approved project cost estimate. For
unbudgeted proposals, necessary re-appropriation approval
shall be obtained as per DOP and further ratification in RE
budgets exercised by the indenting department.
(iii) That proper justification for the works proposed to be

furnished by the indenting department.
Page 11 of 55
(iv) That the rates adopted for each item of work shall be as per
Clause 5 and supported by detailed analysis of rates
approved by the competent authority as per DOP..
(v) For emergency / exigency works, the circumstances leading

to such emergency / exigency are to be recorded in the
proposal.
(vi) The indentor shall ensure that the calculations shown in the
estimate are arithmetically accurate.
6.3.2 Estimate shall be sent for finance concurrence as per financial

limits specified in DOP. However, if such an estimate is based on
rate analysis or contains items having rate analysis, the rate
analysis shall be concurred by Finance Department and approved
by Competent Authority before the same is taken as basis for the
preparation of any estimate.
7.0 EXPENDITURE SANCTION
7.1 Expenditure Sanction (ES) to a project or part thereof shall be accorded

by the competent authority according to DOP.
7.2 Expenditure sanction shall be accorded on the basis of cost estimates

and the scope of work.
7.3 Further to the above, a provision of 3% on the cost estimate may be
added to cover the cost of unforeseen contingencies.
8.0 EXCESS OVER EXPENDITURE SANCTION
8.1 During Placement of LOI/Award of work/Notice of Award (NOA)
8.1.1 In case, any excess over the sanctioned amount is known before
tendering or during tendering, the tendering process shall not be
held up for want of additional expenditure sanction. However, only
in the cases where it is found tender finalized amount exceeds
expenditure sanction, LOI/Award of work/Notice of Award (NOA)
shall be placed after obtaining additional sanction or otherwise.
8.2 During Execution
8.2.1 The expenditure sanction upto 10% can be exceeded, if so required

at any stage during the execution of the work, revised technical
Page 12 of 55
sanction can be accorded by the competent authority as per DOP.
9.0 REVISED TECHNICAL SANCTION
9.1 A revised estimate shall be prepared when the sanction estimate is likely
to exceed by more than 10% for the approval of competent authority as
per DOP.
9.2 A complete deviation statement on completion of the work approved by

the competent authority may be treated as revised technical sanction.
9.3 During execution of work, in case any change order due to change in
scope of work as per requirement of Indenter/User or any major
upward/downward variation in quantities is envisaged/is felt necessary
due to operational/administrative reasons which may result in
requirement of additional funds, then such additional Technical
Sanction/Expenditure Sanction shall be taken as per the change order
procedure defined in this Manual, in stages whenever it is required.
However, the execution of work shall not be held up for want of
additional expenditure sanction.
10.0 APPOINTMENT OF SPECIALIST SERVICES
10.1 Consultants
As far as possible only in-house design engineering resources shall be

availed. The appointment of consultant shall be resorted only in case
where in-house facility is not available. The appointment of consultant
shall be as per DOP
10.2 Specialists
For hiring the services of specialists on man day basis for scientific/
professional jobs, approval of Competent Authority as per DOP shall be
obtained.
The concerned project execution group shall firm-up the scope of work in
consultation with the indenter/user, technical specifications, process
data and drawings, schedule etc. for preparation of detailed bidding
documents for appointment of consultant/Specialists.
Page 13 of 55
10.3 Third Party Agency
10.3.1 Third Party Certification Agency
Certification Agency would be appointed for the specialized nature of

the project for value more than Rs.10 crores and are required to issue
Certificate of Fitness in respect of quality, safety and life of the
structure.
Scope of work and estimates for third party certification work for the
respective project shall be prepared by Project Group in consultation
with and duly vetted by Engineering Consultant.
Selection of Certification Agency can be done on the basis of an open

tender, limited tender or on nomination basis.
10.3.2 Third party inspection agency (TPI)
As per latest CVC Circulars on the subject, third party inspection

(TPI) is required to be carried out by a reputed third party
inspection agency. Bidding documents shall indicate in detail that
third party inspection agency, shall be appointed by KPL for
carrying out the fabrications inspection and supervision jobs for
works and services.
10.3.3 Empanelment of Consultants / Third Party Inspection Agency

(TPI) / Certification Agency
In case the Engineering Consultants / Certification Agencies

/ Third Party Inspection Agencies are regularly required,
respective projects shall process for empanelment of such
agencies in different categories to save on time for tendering
etc.
However, for appointment of Consultant /Third Party

inspection /Certification Agency for a specific project,
administrative approval and expenditure sanction shall be
obtained as per the relevant provisions in DOP.
*****
Page 14 of 55
CHAPTER 3
TENDERING PROCESS
11.0 TYPE OF TENDERS
Following are the type of tenders, which are generally invited for
execution of works:
11.1 Item rate tender
Item Rate tenders are invited where bidders are required to quote rates
for individual items of work and work out total bid amount on the basis
of schedule of quantities furnished by the department.
11.2 Percentage rate tenders
Percentage Rate tenders are invited where, bidders are required to quote
overall percentage above or below the estimated amount (or rates) put to
tender for total scope of work. In this case the schedule of quantities and
the rates of items are given in the tender.
11.3 Lump-sum Turnkey/EPC Tenders
Lump-sum Turnkey/EPC Tenders are invited in respect of works for

which the bidders are required to quote a lump-sum price for completing
the works and services in accordance with the Bid requirements as the
case may be.
Lump-sum Turnkey/EPC Tenders can be for executing the works as per

the given design, drawings and specifications. Alternatively it may
include elements of design engineering and preparation of detailed
drawings and specifications as well, which shall be in keeping with the
given design criteria/ basic engineering design i.e. functional, structural
& performance parameters.
12.0 TENDERING METHODOLOGY
Following methodology for inviting the tenders shall be followed.
12.1 Open Tenders
12.1.1 As a general rule, all the tenders for Civil/Electrical/Marine and
Page 15 of 55
other works tenders of value more than Rs.10 lakhs shall be

through National Competitive Bidding (NCB) through E-
Procurement/Tendering.
12.1.2 In the case of NCB, a Tender Notice shall be advertised at least in

one leading National English Newspapers and in one Local Daily
for tender value exceeding Rs.10 lakhs and for tender value less
than Rs.10 lakhs, the advertisement can be in one national and
one vernacular daily. The tender notice should also to be
published in KPLs website for details of Notice Inviting Tender
(NIT).
12.1.3 In the case of International Competitive Bidding (ICB), a Tender

Notice shall be advertised in two leading National English
Newspapers and in Indian Trade Journal/Indian Export Bulletin
or a similar trade publication/export journal of repute. The tender
notice should also to be published in KPLs website for details of
Notice Inviting Tender (NIT).
12.1.4 Open tender bidding documents are to be issued to the bidders

on application against prescribed tender fee. The time limit should
be allowed for submission of bids, after the date of publication of
advertisement as specified in 15.5.
12.1.5 If, in response to a Open Tender enquiry, only one offer is

received, before opening the tender, the Competent Authority can
decide whether extension of time for tender submission can be
resorted to, to get better response. If no further offer is received
even after the extended date, the competent authority may proceed
with the finalization of the tender/offer received with record of
justification thereof.
12.2 Limited Tenders
12.2.1 As a general rule, Limited Tenders shall be invited from the

parties as approved by the Competent Authority. Enquiries should
generally be sent atleast to three parties of prospective
suppliers/contractors and published in the companys website.
Page 16 of 55
12.2.2 If, in response to a Limited Tender enquiry, only one offer is

received, before opening the tender, the Competent Authority can
decide whether extension of time for tender submission can be
resorted to, to get better response. If no further offer is received
even after the extended date, the competent authority may proceed
with the finalization of the tender/offer received with record of
justification thereof.
12.2.3 The approving authority for invitation of limited tenders shall be

as per Companys DOP.
12.3 Single Tender/Nomination on Emergency Basis
12.3.1 Invitation of Bid from only one agency in specific circumstances,

as below. Award of work on single tender / nomination on
emergency basis shall be resorted to only when there is an
operational urgency like fire, flood, earthquake, war, civil
disturbance, etc. and when it is necessary to restore normalcy (for
reasons including those related to environment, safety and
security) of equipment, machinery and civil, mechanical or other
works (including third party property) ,
AMC/OEM/OES/Proprietary Articles Certification (PAC) in the
shortest time and possible normal methods of tendering is not
considered feasible. Nominations shall be accorded to in the
cases where Govt. / PSU agencies provide services / materials.
The user/indenter shall convey the operational urgency as

mentioned above and obtain approval from the competent
authority as per the Schedule of powers.
12.4. Engagement of Consultant/Expert / Agency
Experts include individuals with established reputation for specified

knowledge and experience in specific areas of Science and Technology.
Engagement of Consultant / Agency / Experts will be done as per the
instructions/guidelines issued by the CVC from time to time.
Page 17 of 55
12.5 Works on Hand Quotation Basis
Execution of works/services up to Rs.25000/- may be made by the User

Group/ Service Group / Project Execution Group on Work Order basis by
obtaining at least three quotations from three independent agencies
without tender committee. EMD and Security Deposit are not required in
such cases.
12.6 Through e-Tendering Mode
12.6.1 The Tenderer shall obtain e-token from a licensed Certifying

Authority of National Information Centre (NIC) such as
MTNL/SIFY/TCS/nCode/eMudhra to get access for Online Bid
Submission through the e -Procurement site
https://eprocure.gov.in
12.6.2 Tender document shall be submitted online only in the

designated two cover system on the e-Tender website
www.eprocure.gov.in on or before due date. The following are the
procedure for submission of tender through online.
i. Tenderer should do the registration in the tender site using

the Click here to Enroll option available.
ii. The Digital Signature registration has to be done with the e-

token, after logging into the site.
iii. Tenderer can use My Space area to update standard

documents in advance as required for various tenders and
use them during bid submission. This will facilitate the bid
submission process by reducing time.
iv. Tenderer should read the tenders published in the site and
download the required documents / tender schedules for
the tenders.
v. Tenderer then logs into the site by giving the user

id/password chosen during registration and password of
the DSC/e-token.
vi. Only one DSC should be used for one Tenderer. If a bidder
uses more than one DSC token, the bid would summarily
be rejected.
Page 18 of 55
vii. Tenderer should read the Tender schedules carefully and

submit the documents as per the Tender else the bid will be
rejected.
viii. If there are any clarifications, the same may be clarified

during the pre-bid meeting.
ix. Tenderer should take into account the corrigendums if any,

published before submitting the bids online.
x. Tenderer must in advance prepare the bid documents to be

submitted as indicated in the tender schedule and they
should be in the required format. If there are more than one
document, they can be clubbed together.
xi. Tenderer selects the tender which he is interested using

search option & then moves it to the favorites folder.
xii. From the folder, appropriate tender can be selected and all
the details can be viewed.
xiii. The Tenderer should read the terms & conditions and
accept the same to proceed further to submit the bids.
xiv. The Tenderer has to enter the password of the DSC / e-

token and the required bid documents have to be uploaded
one by one as indicated.
xv. The Tenderer has to submit the relevant files required as

indicated in the cover content. In case of any irrelevant files,
the bid will be rejected / will not be accepted by the system.
xvi. The rates should be offered in the format specified. (.xls

format)
xvii. If the rates are not offered as per the given format the bid
cannot be submitted / will not be accepted by the system.
xviii. Upon successful completion of the bid, the system will give
a successful bid updation message, bid summary will be
shown with the bid no., date & time of submission of the
bid along with all other relevant details.
xix. The bid summary should be printed and kept as an

acknowledgement.
xx. The bid summary will act as a proof of bid submission for
the subject Tender.
Page 19 of 55
xxi. For any clarifications regarding the Tender, the bid number
can be used as reference.
xxii. The bids should be submitted on or before the prescribed

date & time.
xxiii. Each document to be uploaded online for the tenders

should be less than 2 MB. If any document is more than
2MB, it can be reduced by scanning at low resolution and
the same can be uploaded.
xxiv. The time settings fixed in the server side & displayed at the
top of the tender site, will be valid for all actions of
requesting, bid submission, bid opening etc., in the tender
system. The bidders should follow this time during bid
submission.
xxv. All the data being entered by the bidders would be

encrypted using PKI encryption techniques to ensure the
secrecy of the data. The data entered will not be viewable by
unauthorized persons during bid submission & cannot be
viewed by any one until the prescribed date & time of bid
opening.
xxvi. The confidentially of the bids would be maintained. Secured

Socket Layer 128 bit encryption technology is used. Data
storage encryption of sensitive fields is done.
xxvii. Any document that is uploaded to the server is subjected to

symmetric encryption using a generated symmetric key.
Further this key is subjected to asymmetric encryption
using buyers public keys. Overall, the submitted tender
documents become readable only after the tender opening
by the authorized individual.
xxviii. For any queries, the bidders are asked to contact by mail
cppp-nic@nic.in or by phone 1-800-233-7315 well in
advance.
13.0 RATE CONTRACT
13.1 Works
Works of repetitive nature like painting, civil, marine services,

mechanical and electrical works, etc. can be covered under Approved
rates contract. Usually such works under this category would be
undertaken by the maintenance department and occasionally by projects
Page 20 of 55
and other departments. The commonly executed works can be separately

listed out by the concerned department.
Open/Limited tenders from the approved list should be invited wherein

the rates shall be called for, for specified estimated quantities, which
should be valid for two years. Vendors may also be asked to quote for a
percentage variation () in item rates with respect to KPLs estimated
rates in the tender document in respect to the works contract.
In case of approved rates contract, the rates are to be approved by the

competent authority empowered based on the estimated annual value
with finance concurrence. Tenders with lowest workable rates shall be
considered for such works. Wherever the lowest rates are abnormally
lower than the estimate, the workability shall be certified by the
Estimating Department. These accepted parties should be short-listed for
the identified works. As more than one contractor can be short listed for
similar works, at the stage of finalizing the tender, they should be asked
to match the lowest acceptable rates to ensure uniformity. Separate work
orders indicating the estimated annual work value shall be issued to the
selected agencies.
In item rate contracts, if the rates for various items quoted by the overall
lowest bidder are lower than 25% of the estimates, the party shall be
asked to give written confirmation for execution of the entire works at the
quoted price. In the event, the party backs out, EMD to be forfeited and
re-tendering to be adopted if time permits or else revised price bid shall
be obtained from other techno commercially acceptable bidders and
contract shall be finalized.
Equitable distribution of work among the Contractors shall be ensured by

the department executing such works. As and when the need for
executing a repair work arises, a separate work order shall be issued
without finance concurrence.
All contracts shall have an annual ceiling limit as per approved budget,
which shall not normally be exceeded. The overall budget ceiling shall be
arrived based on individual activities like civil, electrical, painting,
Page 21 of 55
insulation, labour supply, etc. Issue of work orders shall be need based
and suitably justified and within the approved activity wise budget
referred above. Works shall not be split to avoid approval of higher
authority.
A separate register of such orders shall be maintained to keep a watch on

the cumulative value of the work orders. This register shall be
periodically reviewed by concerned GMs. Finance shall also exercise
checks on this.
14.0 APPROVED LIST OF EMPANELLED CONTRACTORS FOR LIMITED

TENDERS.
(Including Consultants, Certification & Third Party Inspection Agencies)
The formation of panel of contractors for specific areas shall be

from suitably qualified and experienced contractors as approved
by the Competent Authority as per the DoP. Bids for Pre-
Qualification Registration (PQR) shall be invited on open
advertisement basis.
The Pre-Qualification bid shall be evaluated based upon the BEC

duly recommended by the designated Committee. The panels
recommendation shall be approved by the functional directors
based on the evaluation through score sheet on the areas like
experience, qualification, financial strength which will be the part
of BEC.
Applicant, scoring less than the pre-determined percentage, shall

not be qualified for empanelment. Firms shall be empanelled for a
period of 1 year subject to the fulfillment of performance
evaluation. The Competent Authority as per DoP may also expand
the panel so formed by getting lists of such panels from
Government organizations like CPWD, Ports, Railways for similar
works subject to verification by KPLs designated Committee.
The fact of a tenderer having been empanelled will not

automatically confer a right on him to be considered for the award
of the contract unless he fulfills all necessary conditions for the
Page 22 of 55
work in consideration.
14.1 Performance Evaluation
The performance of empanelled contractors shall be evaluated by the

concerned Tender Processing Group or any other committee designated
for the purpose every year based on below listed criteria and submitted
for appraisal of the Head of respective Services.
Whether the contractor responded against enquiry invited by the

Corporation / Company.
Whether Works have been executed successfully.
Facilities committed during Registration / Empanelment vis--vis

those periods / deployed for the contract / actual job and their
adequacy.
Quality of jobs executed.
Delays if any, attributable solely to the contractor in completion of

awarded jobs.
Post contract response mechanism and performance
14.2 Removal from the approved list
The name of the contractor may be removed from the approved list of
contractors, by the enlisting authority, if it:
(a) Has, on more than one occasion, failed to execute a contract or

has executed it unsatisfactorily; or
(b) Is proved to be responsible for constructional defects in two or
more works; or
(c) If persistently violates any important conditions of the contract; or
(d) Fails to abide by the conditions of empanelment; or
(e) Is found to have given false particulars at the time of

empanelment; or
(f) Has indulged in any type of forgery or falsification of records; or
(g) Changes constitution of the firm or Individual without prior
approval of the empanelment authority; or
(h) Is declared or is in the process of being declared bankrupt,

insolvent, wound up, dissolved or partitioned; or
Page 23 of 55
(i) Persistently violates the labour regulations and rules; or

(j) Is involved in complaints of serious nature received from other
departments which prima facie appear to be true.
A proposal backed up with relevant documentation/justifications to take

disciplinary action shall be processed by the concerned group for
approval of the concerned Head of Service.
14.3 Extension of Period of Empanelment
Action should be initiated for fresh empanelment at appropriate time so

that the same is finalized before expiry of the existing empanelment
period. In case such fresh empanelment has not been finalized for any
specific reason, to be recorded, the extension of period of empanelment
shall be obtained from the concerned Head of Services.
15.0 BIDDING SYSTEM:
15.1 Single Envelope System
Works for which technical specification is finalized & defined clearly in

NIT, tenders/ quotations shall be required to submit the bids in single
envelope for the contractual values upto Rs.5 Lakhs.
Eligibility criteria as stipulated is tested with the details given by the

tenderer in the documents in the envelope. The envelope is to be opened
by the nominated Committee and the data is to be verified by them.
The tenderers, who qualify satisfying all the criteria laid down for
eligibility in the envelope clearly, the tenders/quotations will be opened
at notified time, date and place in presence of tenderers or their
representatives.
15.2 Two envelope system
Works for which technical specification is finalized & defined clearly in

NIT, tenderers shall be required to submit the bids in two envelopes.
Envelope - 1 :- Eligibility related documents.
Envelope - 2 :- Financial bid.
Page 24 of 55
Eligibility criteria as stipulated is checked with the details given by the

tenderer in the documents in the first envelope. The first envelope is to
be opened by the nominated Committee and the data is to be verified by
them. The tenderers, who qualify satisfying all the criteria laid down for
eligibility in the first envelope shall be qualified technically and the
financial bids will be opened at notified time, date and place in presence
of tenderers or their representatives.
15.3 Three envelope system
Envelope-1:- Documents related to eligibility criterion.

Envelope-2:- Technical bid.
Envelope-3:- Financial bid.
15.3.1 Three Envelope System
There can be tenders, which deal with works of a highly complex-

technical nature which do not lend themselves for technical
specification / criteria to be frozen at the initial floating stage
itself. This may require a wider cross-pollination of technical ideas
and examination of various possibilities. To deal with such cases
which require a more critical and detailed evaluation of the
technical criteria, three cover system is recommended to be
adopted. In this, as a first stage, a pre-bid conference shall be
held with the prospective bidders, the administration presenting
the perception of work in the conference with the contemplated
technical criteria. The prospective bidders can present their ideas
and their technical perception in the pre-bid conference to arrive
at a technical framework for the contemplated work. Having thus
arrived at a common platform, the prospective bidders shall
submit their bids in three envelopes.
The first envelope will have the documents relating to the

fulfilment of eligibility criteria in the areas of experience,
completion of past work as specified in the tender document,
financial status along with the details of plant and machinery, etc.
Only the technical bids of those bidders, who have qualified in the
Page 25 of 55
envelop-I will be opened for the consideration of second envelope,

the technical bid which give the technical details of their offer. In
the technical bid, the tenderers can give alternative designs also,
whose technical acceptability will be decided by the concerned
authorities. After finalization of technical bid, if required,
tenderers may be given chance to modify their financial bids
(envelop-III). The third envelope containing the financial bids of
only those tenderers who have successfully qualified themselves in
the technical bid will be opened and evaluated.
15.4 Essential Qualification Requirements (EQR)
EQR in general should have rejection criteria including experience and

financial evaluation methodology, duly deliberated and recommended by
tender committee and approved by the Competent Authority.
15.4.1 A) Experience
(i) Should have satisfactorily completed the contracts
involving similar works of values listed below during
the last 7 years (as on year ending previous financial
year)
(a) Three similar completed works each costing not less

than amount equal to 40% of the estimate cost; (or)
(b) Two similar completed works each costing not less

than amount equal to 50% of the estimated cost; (or)
(c) One similar completed works costing not less than

amount equal to 80% of the estimated cost and;
Note: Similar Work means execution of particular type of

work
The above shall get changed wherever any Govt. / CVC guidelines are
issued as the case may be.
B) Financial Capacity
Average annual financial turnover of the firm during the

last 3 years (as on year ending previous financial
year)should be at least 30% of the estimated cost
Page 26 of 55
Documentary proof such as copy of work order and

completion certificate for technical experience and audited
Balance sheet, Profit and Loss Account statement for
annual turnover for meeting all eligibility criteria shall be
enclosed with the tender in original or copies notarized. The
price bids of those firms who do not meet the eligibility
criteria shall be returned unopened.
(i) Sub-Contractors experience and resources shall not

be taken into account in determining the bidders
compliance with the qualifying criteria.
(ii) Even though the bidders meet the minimum

qualifying criteria, they are subject to be disqualified if
they have:
- made misleading or false representations in the

forms, statements and attachments submitted in
proof of the qualification requirements; and/or
- record of poor performance such as abandoning the
works, not properly completing the contract,
inordinate delays in completion, litigation history, or
financial failures etc.,
15.5 Scale of Charges for Tender Documents
(1) The following will be the charges for the sale of tender forms to the
tenderers:
(a) Works costing upto Rs.1 lakh: - Rs.500/-

(b) Works costing between Rs.1 lakh and Rs.10 lakhs- Rs.1000/-
(c) Works costing betweenRs.10 lakhs and Rs.10crore- Rs.5000/-
(d) Works costing above Rs.10crores - Rs.10,000/-
(e) For e-Procurement cases - NIL
(f) For MSME / NSIC approved agencies, if exempted- NIL
Note:
(i) Sales Tax/VAT/Service Tax are extra leviable.
(ii) Apart from the above, based on the nature of

works/specialised works the Competent Authority shall fix
the tender document charges.
(iii) In case of re-inviting of tender upon cancelling the earlier

tender by KPL, the cost of tender document will be waived for
the tenderers who participated in the tender.
Page 27 of 55
(2) Authorities competent to approve NITs have got the discretion to add
to the prices mentioned above any additional cost of drawing to be
supplied along with tender documents depending on the labour
actually involved in their preparation.
15.6 Time Limit for Publicity of Tenders
(1) The following time limits between the date of publication of tender on
web site or Press whichever is earlier and the date of receipt of the
tenders are desirable:
(i) For value upto Rs.10 lakhs - 7 10 days

(ii) For the value between Rs.10 lakhs and Rs.50 crores - 10-14 days
(iii)For the value more than Rs.50 crores - 14-21 days
(2) The above time limits may be varied at the discretion of the NIT
approving authority keeping in view the exigencies of work.
*****
Page 28 of 55
CHAPTER-4
TENDER DOCUMENTS & APPROVALS
16.0 STAGES OF APPROVAL
Approval of Competent Tender Accepting Authority will be obtained at the

following stages:
i. Execution methodology
ii. Finalization of Bid Evaluation Criteria (BEC).
iii. Prima-facie short listing of bidders for seeking one time
confirmation, if required.
iv. Short listing of bidders for price bid opening.
v. Award of contract
17.0 EXECUTION METHODOLOGY (EM)

17.1 Execution methodology shall contain the following:
i. Objective and Scope of the project
ii. Feasibility/viability of the project (if worked out/available)
iii. Budget details and Expenditure Sanction.
iv. Project Schedule (Tendering/Execution)
v. Tendering methodology -Open/Limited/Single/Nomination/Hand
Quotation
vi. Type of tender -Percentage rate/Item rate
17.2 EM shall be approved by the competent authority as per DOP. Any

change in project schedule subsequently shall be approved by competent
authority as above.
18.0 FINALIZATION OF BEC/EQR & FLOATING OF TENDERS
18.1 The tendering process should commence with the availability of budget,
followed by detailed indent raised by the user/indenting department
giving scope, schedule and the financial sanctions. The specifications and
technical BEC along with cost estimates will be framed by the concerned
Engineering Services/Technical Services etc in consultation with the in-
house/external consultant etc. The competent authority as per DOP will
decide the required type of tender to be issued viz.
Open tender
Limited tender and
Single tender
Page 29 of 55
18.2 The competent authority as per DoP of the tender will approve the
technical and commercial terms and conditions in the following context:
i. Induction of latest and appropriate technology

ii. Competitiveness,
iii. Lessons/experiences of the past tenders/contracts.
18.3 Before invitation of tenders, the technical as well as commercial BEC will
be formulated as per provisions vide Para-18.4 below.
18.4 BECs / EQRs should be firmed / standardized. BEC / EQR revision must
be done only by exception, based on cogent and transparent justification.
BEC in general should have a Rejection (both technical and commercial)
criteria, and financial Evaluation Methodology (including Loading
criteria). In all cases, the Bid Evaluation Criteria (BEC) along with the
Matrix will be brought before the competent authority for approval.
18.5 Wherever the last BEC along with mode of tendering, approved by
competent authority as per DOP is proposed for next tender, there is no
need to obtain repeat approval of the BEC (apart from changes that may
be necessary due to fresh guidelines issued by PMC). However, in
principle approval, to follow the already approved BEC (without change),
to be obtained from competent authority. The competent authority as per
DOP shall accord in principle approvals.
18.6 Cases falling under the power of competent authority as per DOP will be
brought to it for approval after endorsement of the next higher level
authority, who will consider the factors as per Para-18.2 above, after due
examination.
18.7 Concerned officer as per DoP will also have full powers to approve short
listing of bidders for price bid opening as per latest guide line issued on
the subject. However, while exercising these powers it is to be ensured
that in case of deviation, if any, with reference to laid down policies,
instructions and/ or PMC circulars, the cases are to be brought to
competent authority for deliberation and approval.
18.8 BEC (excluding the standard provisions and major qualifying criteria),
once approved by competent authority as per DOP for a particular tender
Page 30 of 55
can be reviewed / modified as a sequel to pre-bid conference. Wherever

departure from BEC (excluding the standard provisions and major
qualifying criteria) is considered necessary (as a sequel to pre-bid
conference), detailed reasons in tabular form are to be given (in the
proposal for approval of competent tender accepting authority) indicating
as to why such departure is considered necessary. It will specifically be
indicated as to whether KPL would entail any extra expenditure on
account of the proposed changes in BEC and if so, justification, will also
need to be given indicating the economic benefit in terms of improved
efficiency or otherwise that would accrue to KPL versus the extra
expenditure involved due to modification in BEC. After this no change in
BEC will be allowed. Where no pre-bid conference has been convened,
BEC in such cases will not be modified under any circumstances.
18.9 Powers to approve modification/relaxation/departure from approved BEC

(excluding the major qualifying criteria which appeared in NIT), as a
sequel to pre-bid conference (and not after opening of bids), will rest with
competent authority as per DOP.
19.0 BIDDINGDOCUMENTS:
19.1 Content of Bidding Documents:
The set of bidding documents comprises the documents listed in the table
below and addenda issued:
S.No. Reference Details
1 BR Bid Reference
2 NIT Notice Inviting Tender

SECTION - 1
3 Instructions to Bidder
Forms of Bid, Contractors bid and
SECTION - 2
4 Qualification Questionnaire
Part I Contract Data

SECTION - 3
5 Part II General description of work and other
condition
Part I General Conditions of Contract

6 SECTION - 4
Part - II Special conditions of Contract
Page 31 of 55
7 SECTION 5 Specifications of materials and works
8 SECTION 6 Schedule of Drawings

SECTION -7
9 Forms of Securities and other formats
10 SECTION -8 BOQ Price Bid
19.2 Clarification of the Bidding Documents:
A prospective bidder requiring any clarification of the bidding documents

may notify the employer in writing or by cable (hereinafter cable
includes facsimile) at the Employers address indicated in the invitation
to bid. The Employer will respond to any request for clarification which
he received (earlier than four days for uploading e-tender, duration seven
days) prior to the deadline for submission of bids. Copies of the
Employers response will be forwarded to all purchasers of the bidding
documents, including a description of the enquiry but without identifying
its source.
19.3 Pre bid meeting:
i. Whenever, it is felt necessary by the Company, the bidder or his

official representative is invited to attend a pre-bid meeting which
will take place at _________ (address of venue) on_________(time and
date).
ii. The purpose of the meeting will be to clarify issues and to answer
questions on any matter that may be raised at that stage.
iii. The bidder is requested to submit any questions in writing or by
cable to reach the Employer not later than one week before the
meeting.
iv. Minutes of the meeting, including the text of the questions raised
(without identifying the source of enquiry) and the response will be
transmitted / uploaded in website without delay to all purchasers
of the bidding documents. Any modification of the bidding
documents, which may become necessary as a result of the pre bid
meeting, shall be made by the Employer exclusively through the
issue of an addendum.
v. Non-attendance at the pre-bid meeting will not be a cause for
disqualification of a bidder.
Page 32 of 55
19.4 Amendment of Bidding Documents:
i. Before the deadline for submission of bids, the Employer may

modify the bidding documents by using addenda.
ii. Any addendum thus issued shall be part of the bidding documents
and shall be communicated in writing or by cable to all the
purchasers of the bidding documents. Prospective bidders shall
acknowledge receipt of each addendum by cable to the Employer.
iii. To give prospective bidders reasonable time in which to take an
addendum into account in preparing their bids, the Employer shall
extend, as necessary, the deadline for submission of bids.
19.5 Preparation of Bids:
i. Language All documents relating to the bid shall be in English

language.
ii. Documents comprising the Bid The bid submitted by the bidder
shall comprise the following:
a. The Bid
b. Bid Security
c. Priced Bill of Quantities
d. Qualification Information Form and Documents and any
other materials required to be completed and submitted by
bidders in accordance with these instructions.
19.6 Bid prices:
i. The contract shall be for whole works based on the priced bill of
quantities submitted by the Bidder.
ii. The bidder shall fill in rates and prices both in figures and words
for all items of the work described in Bill of quantities, in case any
difference in rates quoted in figures and words, the rate quoted in
words will be considered for evaluation and award. Items for
which no rate or price is entered by the bidder will not be paid by
the Employer when executed and shall be deemed covered by the
other rates and prices in the Bill of quantities. Corrections, if any,
shall be made by crossing out, initialling, dating and rewriting.
Page 33 of 55
iii. All duties, taxes and other levies payable by the Contractor under
the contract, or for any other cause shall be included in the rates,
prices and total Bid price submitted by the Bidder.
iv. The rates and prices quoted by the Bidder shall be fixed for the
duration of the Contract and shall not be subject to adjustment on
any account.
OR
The rates and prices quoted by the bidder are subject to

adjustment during the performance of the contract in accordance
with the provisions of the NIT/Tender Document Conditions.
19.7 Currencies of Bid and Payment:
The unit rates and the prices shall be quoted by the Bidder entirely in
Indian Rupees. In the cases of global bids, if the unit rates/prices are in
terms of foreign currency, then the exemption can be taken with the
approval of competent authority.
19.8. Bid validity:
Bids shall remain valid for a period not less than as provided in the
N.I.T./Tender Documents, one hundred and twenty days after the
deadline date for bid submission. A bid valid for a shorter period is liable
for rejection at the discretion of the company. In case, bid evaluation
and award of work is delayed, on request of the employer, the contractor
may require to submit the bid validity extension without prejudice to
tender provisions.
19.9 Bid Earnest Money:
The amount of the earnest money, which a contractor should deposit

with the tender, is regulated by the following scales. In case of petty
works costing Rs.25,000/- or less the Engineer may, at his discretion,
dispense with the conditions for calling for earnest money. For special
tenders like Tax Free Bond / equity related, engagement of professionals,
empanelment of facilities, etc., the exemption from EMD can be
considered with the approval of competent authority.
Page 34 of 55
(i) For works estimated to cost up to Rs. 10 crores: 2% (Two per cent) of
the estimated cost.
(ii) For works estimated to cost more than Rs. 10 crores: Rupees
Twenty lakhs plus 1% (one present) of the estimated cost.
Mode of Deposit
The earnest money may be accepted only in the following forms:

i. Bankers cheque of a Nationalised Banks.
ii. Demand Draft of a Nationalised Banks.
iii. The Bank Guarantee of a Nationalised Bank
The Bank Guarantee submitted as a part of Earnest Money shall be

valid for a period of six months or more from the date of submission of
the tender, in case of delay in bid evaluation and award of work.
Refund of earnest money
i. The earnest money given by all the tenderers except the L2 tenderer
shall be refunded within 30 days from the date of opening of the
financial bids. The earnest money deposited by the L2 tenderer will
be refunded within 15 days from the date of signing of the
agreement with the successful tenderer. EMD submitted by the
successful tenderer will be refunded within 30 days from the date of
submission of Performance Guarantee and signing of the agreement.
ii. The Engineer should periodically review the Tender Opening

Register with a view to ensure that the earnest money is refunded in
time. If the tenderers do not come forward to get their challans
endorsed for refund, the challans should be sent to them by
Registered Post within a week after expiry of the prescribed period.
Earnest money is not security deposit
The earnest money, which a tenderer for a contract is called upon to

furnish along with his application for issue of tender for the contract is
not a security deposit within the meaning of rule 45 of the Saving Bank
Rules for depositors. No account can, therefore, be opened for the
deposit of such earnest money in the Post Office Saving Bank.
Page 35 of 55
Forfeiture of earnest money
i. If any tenderer withdraws his tender before the expiry of the

validity period, or before the issue of letter of acceptance,
whichever is earlier, or makes any modification in the terms and
conditions of the tender which are not acceptable to KPL, then the
KPL shall, without prejudice to any other right or remedy, be at
liberty to forfeit 50% of the earnest money absolutely
ii. If contractor fails to furnish the prescribed performance guarantee

within the prescribed period, the earnest money is absolutely
forfeited automatically without any notice.
iii. If only a part of the work as shown in the tender is awarded, and
the contractor does not commence the work, the amount of the
earnest money to be forfeited to KPL should be worked out with
reference to the estimated cost of the work so awarded.
iv. In case of forfeiture of earnest money as prescribed above, the

tenderer shall not be allowed to participate in the retendering
process of the work.
19.10 Performance guarantee
i. The successful tenderer, hereafter referred to as the contractor,

shall deposit an amount equal to 5% of the tendered and accepted
value of the work (without limit) as performance guarantee in one
of the following forms:
a. Deposit at Call Receipt/Bankers Cheque/Demand

Draft/Pay Order of a Nationalised Bank.
b. An irrevocable bank guarantee of any Nationalised bank in

the prescribed form given in Annexure.
ii. The time allowed for submission of the performance guarantee by

the contractor shall be decided by the NIT approving authority for
a period ranging from 4 to 15 days of issue of the letter of
acceptance, depending upon the magnitude and/or urgency of the
Page 36 of 55
work. This period can be further extended, if required, by the

Engineer-in-charge for a maximum period ranging from 3 days to
7 days at the written request of the contractor. Such time period
may be mentioned in the schedule while finalizing the NIT. A
sample copy of the letter of acceptance to the contractor for
submission of the performance guarantee is given in Annexure.
19.11. Security deposit
i. The security deposit shall be collected by deductions from the

running bill of the contractors at the rate mentioned below, and the
earnest money that is deposited at the time of tender, shall be
treated as part of the security deposit. The security deposit can also
be deposited in the form of Demand Draft, Bank Guarantee of any
Nationalised Bank, Fixed Deposit Receipts etc. Earnest money shall
be adjusted first in the security deposit and further recovery of
security deposit shall commence only when the upto date amount of
security deposit starts exceeding the earnest money.
ii. A sum @ 10% of the gross amount of the bill shall be deducted from
each running bill of the contractor, till the sum along with the sum
already deposited as earnest money amounts to security deposit @
5% of the tendered amount of the work . Such deductions shall be
made unless the contractor has deposited the amount of security at
the rate mentioned Demand Draft, Bank Guarantee, Fixed Deposit
Receipts This is in addition to the performance guarantee that the
contractor is required to deposit as mentioned above.
iii. The Bank Guarantee submitted against Security Deposit shall

initially be valid up to the stipulated date of completion of the work
plus maintenance period as defined in General Conditions of
Contract (GCC) which shall be extended further time to time
depending upon extension of contract granted under provisions of
relevant clauses.
Page 37 of 55
19.12 Purchase of Bidding Documents by Agents in India
In respect of International Competitive Bidding (ICB), the Agents in India,

duly authorized by their foreign principals, will be allowed to purchase
bidding documents in Indian currency through Bank Draft drawn in
favor of KPL provided such foreign principal/supplier remit the cost of
bidding documents in foreign currency equivalent to Indian Rupees
through Bank draft / Cashiers Cheque / Banker's cheque in favor of KPL
along with their offer before due date.
Demand Drafts received from Indian Agents for the purchase of bidding
documents will be deposited by the Finance Section immediately. On
receipt of requisite tender fee in foreign currency, the tender fees in
Indian currency received from authorized agent in India will be released
by concerned FAO under intimation to concerned Head of Tender
Processing Group and the tender fees received in foreign currency will be
accepted and deposited in the bank.
19.13 Cancellation of Tender - Refund of Tender Fee
In the event, a particular tender is cancelled, the tender fee will be

refunded to the concerned bidder.
19.14 Exemption from Payment of Tender Fee
The firms registered with NSIC/MSME will be exempted from payment

of tender fee irrespective of the monetary limit mentioned in their
registration certificate provided they furnish evidence that they are
registered for the items they intend to quote against KPL tenders. The
Govt. Depts. will also be exempted from the payment of tender fee.
19.15 Offers without prescribed Bidding Documents of KPL
The condition "Offer sent without having the prescribed bidding

document of KPL and/or without complying with the terms and
conditions of bidding document for submitting the offer, will be ignored
straightway" should be inserted in all tender notices.
Page 38 of 55
20.0 SUBMISSION OF BIDS:
20.1 Sealing and Marking of Bids: The bidder shall put bid security document
as per the respective Clause hereof in one envelope and properly seal and
mark as Bid Security. In addition the bidder shall put DD / Pay order
towards cost of tender documents if downloaded from the web site of
Notice Inviting Tender, hereof in one envelope and properly sealed and
mark as Cost of tender documents. The bidder shall put documents
mentioned in above Clause in separate envelope and properly seal and
mark as Technical Bid. Then put both these envelopes into separate
envelope, properly seal and mark as Technical Bid.
The bidder shall seal Financial Bid as per Clause above hereof, in
separate envelope duly marking the envelope as Financial Bid.
These envelopes then be put inside one outer envelope and sealed, duly
marking the outer envelope as Technical Bid and Financial Bid.
20.2 The envelopes shall
a) be addressed to --------------------Kamarajar Port Limited ,

Chennai
b) bear the following identification:
Bid for -----------------------
Bid Reference No: --------------------
DO NOT OPEN BEFORE (1530 Hrs. on ----------------)
Name and Address of the Bidder
i. The Tender complete in all respect should be put in the tender box
(Tender No. -------------------) in the office of -------------------- up to
1500 hrs. on------------ and open at 15.30hrs on the same date in
presence of the tenderers who may wish to be present.
ii. In addition to the identification required in above Sub-Clause, the

inner envelopes shall indicate the name and address of the bidder
to enable the bid to be returned unopened in case it is declared
late, pursuant to respective Clause, or the bid is declared non
responsive. If the outer envelopes are not sealed and marked as
above, the head of department will assume no responsibility for the
Page 39 of 55
misplacement or premature opening of the Technical bid and

financial bid.
iii. Deadline for Submission of Bid
iv. Bids must be received by the Head of department at the address

specified above not later than 1500 Hours on ------------
v. In the event of the specified date to submission of bids declared a

holiday for Employer, the Bids will be received upto the appointed
time on next working day.
vi. The Head of department may extend the deadline for submission of
bids by issuing an amendment in accordance with Clause, in
which case all rights and obligations of the Employer and the
bidders previously subject to the original deadline will thereafter be
subject to the deadline as extended.
vii. In case of tender document being downloaded from the web site, at
the time of submission of (the hard copy of) the tender document,
the tenderer shall give an undertaking that no change have been
made in document, he shall be issued a printed set of document
under acknowledgement with a condition that the printed version
of the Port Tender Document will be treated as authentic tender
and if any discrepancy is noticed at any stage between the Ports
tender document and the one submitted by the tenderer, the
conditions mentioned in the ports printed document shall prevail.
Besides, the tenderer shall be liable for legal action for the lapses.
20.3 RECEIPT OF TENDERS
i. The tenders will be received as under:

a. Directly being put in Tender Box by bidders.
b. Handed over personally to concerned officer by bidder(s) it

being not possible for them to put in tender box due to
volume of the documents.
ii. Directly being put in the Tender Box by the Bidders
A Tender Box with suitable provision on its top for dropping

tenders in it will be placed in reception area. The Tender Box will
Page 40 of 55
always be kept locked and sealed. Keys of tender Box will be under
the custody of Tender Receiving Officer.
iii. Receipt by ordinary/Regd. Post/Personally handed over to

concerned officer
The Receipt and Dispatch will maintain separate register for the
bids received by them through post office/handed over to them
personally by tenderers due to their voluminous size.
All Tenders received by concerned officer will be recorded in this

register. The Diary Section will put date and time of the receipt on
each envelope of tender and hand over the same on day to day
basis to the Tender Receiving Officer before 14.00 hrs, after
obtaining his initials in acknowledgement of having received the
same. In no circumstances the cover of tenders will be opened or
destroyed by concerned officer.
20.4 TENDER REGISTER
A Tender register which should be authenticated and paginated,

shall be maintained to record
i.) Name of the work
ii.) Tender No.
iii.) Name of the parties to whom the tender enquiry was issued
/ tenders were sold
iv.) Name and signature of the representative of the tenderers

who attended tender opening meeting
v.) Name and signature of tender opening committee.
The TOC/TPC members shall sign each page of the tender

offers including envelope with dated signature. The serial
number of each tender offer out of total offers received and
the number of corrections if any noticed on tender papers
shall also be indicated at each page of the tender offer by
the TOC / TPC.
Page 41 of 55
20.5 NUMBERING OF TENDERS
i. The Tender Opening Officers will encircle the rates and terms and
conditions and put their initials. If there is any cutting, overwriting
or erasing that will also be stated and signed by both the officers.
Total number of sheets in the bid will be mentioned on the first
sheet of bid and all the sheets should be initialled by both the
officers opening the bid and the bid will be given Serial number.
For e.g. if 7 bids have been received against one particular enquiry,
then bids should be numbered as 1/7, 2/7 and so on. The bids
which are received by post after due date should be marked 'Late'
tender with No. 8/7 and so on. All envelopes are also to be
retained on the record and these are to be initialled by both the
officers authorized to open the tenders.
ii. The concerned tender processing group, whose tender is due on

that particular date, will be present at the time of opening of the
tender with the tender register. Both Tender Opening Officers will
sign the register against the name of the firms whose bids have
been received.
20.6 LATE BIDS
Any Bid received by the Employer after the deadline prescribed in above
Clause will be returned unopened to the bidder.
20.7 MODIFICATION AND WITHDRAWAL OF BIDS
i. Bidders may modify or withdraw their bids by giving notice in

writing before the deadline prescribed in Clause.
ii. Each Bidders modification or withdrawal notice shall be prepared,

sealed, marked and delivered in accordance with respective
Clauses, with outer and inner envelopes additionally marked
MODIFICATION or WITHDRAWAL as appropriate.
iii. No bid shall be modified by the bidder after the deadline for
submission of bids.
Page 42 of 55
iv. Withdrawal or modification of a Bid between the deadline for

submission of bids and the expiration of the original period of bid
validity specified in Clause above or as extended pursuant to
Clause may result in the forfeiture of the Bid Security pursuant to
Clause.
v. Bidders may only offer discounts to or otherwise modify the prices

of their Bids by submitting Bid modifications in accordance with
this clause or included in the original Bid submission.
21.0 BID OPENING AND EVALUATION
21.1 Bid Opening
i. On the due date and appointed time as specified in Clause, the

Employer will first open Technical bids of all bids received (except
those received late) including modifications made pursuant to
Clause in presence of the Bidders or their representatives who
choose to attend. In the event of the specified date for Bid opening
declared a holiday by the Employer, the Bids will be opened at the
appointed time and location on the next working day.
ii. Envelopes marked WITHDRAWAL shall be opened and read out

first. Bids for which an acceptable notice of withdrawal has been
submitted pursuant to Clause shall not be opened.
iii. Bidders name, withdrawals, modifications of technical bid, the

presence of bid security and such other details, as the Employer
may consider appropriate will be announced by the Employer at the
opening.
iv. If all Bidders have submitted unconditional Bids together with

requisite Bid security, then all Bidders will be so informed then and
there. If any Bid contains any deviation from the Bids documents
and / or if the same does not contains Bid security in the manner
prescribed in the Bid documents, then that Bid will be rejected and
the Bidder informed accordingly. The sealed Financial Bid
containing priced BOQ will be returned to him without opening. All
valid financial Bids whose technical bids have been determined to
be substantially responsive in accordance with clause hereof, shall
be opened on the specified date from declaring the results of the
Technical Bid, Bidders name, the Bid prices, the total amount of
each Bid and of any alternatives Bid(if alternatives have been
requested or permitted), any discounts, Bid modifications and
withdrawals, and such other details as the Employer may consider
appropriate, will be announced by the Employer at the opening. Any
bid price, discount, or alternative Bid price which is not read out
Page 43 of 55
and recorded at bid opening will not be taken into account in the
Bid evaluation.
v. The Employer shall prepare minutes of the Bid opening, including

the information disclosed to those present in accordance with Sub-
Clause and the minutes shall form part of the contract.
21.2 Process to be Confidential
Information relating to the examination, clarification, evaluation and

comparison of bids and recommendations for the award of a Contract
shall not be disclosed to bidders or any other persons not officially
concerned with such process until the award to the successful bidder has
been announced.
21.3 Clarification of Bids
To assist in the examination, evaluation and comparison Bids, the

Employer may, at his discretion, ask any bidder for clarification of his
Bid, including breakdown of unit rates. The request for clarification and
the response shall be in writing or by cable, but no change in the price or
substance of the Bid shall be sought, offered, or permitted except as
required to confirm the correction of arithmetic errors discovered by the
Employer in the evaluation of the Bids in accordance with Clause.
Subject to Sub-clause, no Bidder shall contact the Employer on any

matter relating to his bid from the time of the bid opening to the time the
contract is awarded. If the Bidder wishes to bring additional information
to the notice of the Employer, he should do so in writing.
Any effort by the Bidder to influence the Employers bid evaluation, bid
comparison, or contract award decisions, may result in the rejection of
his bid.
21.4 Examination of Technical Bids and Determination of Responsiveness of

Technical Bid
i. Prior to evaluation of Technical Bids, the Employer will determine

whether each of the bid (a) meets the eligibility criteria (b) has
Page 44 of 55
been properly signed by an authorized signatory(accredited

representative) holding Power of Attorney in his favour. The Power
of Attorney shall inter alia include a provision to bind the bidder to
settlement of disputes clause; (c) is accompanied by the required
Bid Security and; (d) is responsive to requirements of the bidding
documents.
ii. A substantially responsive Technical and financial Bid is one

which conforms to all the terms, conditions and specification of
the Bidding documents, without materials deviation or reservation.
A materials deviation or reservation is one (a) which affects in any
substantial way the scope, quality or performance of the Works; (b)
which limits in any substantial way; the Employers rights or the
Bidders obligations under the contract; or (c) whose rectification
would affect unfairly the competitive position of other Bidders
presenting responsive Bids.
iii. If a Technical Bid is not substantially responsive, it will be

rejected by the Employer and will not subsequently be made
responsive by correction or modification or withdrawal of the
non-conforming deviation or reservation.
iv. The envelope marked as financial bid of those bidders whose

Technical bid has been determined to be non- responsive shall not
be opened and will be returned unopened.
21.5 Correction of Errors
Bids determined to be substantially responsive, will be checked by the

Employer for any arithmetic errors. Errors will be corrected by the
Employer as follows:
a) Where there is discrepancy between the rates in figures and in

words for any rate in the unit rate column, the amount in words
will govern; and
b) Where there is a discrepancy between the unit rate and the line
item total resulting from multiplying the unit rate by the
quantity, the unit rate as quoted will govern.
Page 45 of 55
The amount stated in the Bid will be adjusted by the Employer in

accordance with the above procedure for the correction of errors and,
with the concurrence of the bidder, shall be considered as binding upon
the bidder. If the bidder does not accept the corrected amount of bid,
his bid will be rejected, and the bid security may be forfeited in
accordance with the Clause.
21.6 Price / Purchase Preference
i. Purchase Preference to Central PSUs
ii. Purchase preference shall be granted to the Public Enterprises of

Central Govt. / Central PSUs, as per GOI instructions in vogue
from time to time.
iii. Price preference in International Competitive Bidding (ICB) Price

preference shall be granted as per GOI instructions in vogue from
time to time.
iv. Purchase preference to the products of Small Scale Sector (SSS) /

Micro, Small and Medium Enterprises (MSME). Purchase
preference shall be granted as per instructions in vogue from time
to time
21.7 Seeking Compliance from Bidders after Tender Opening
No clarification should be sought from the bidders, under any

circumstances, once the bids are opened. However, with a view to widen
competition, seeking confirmations from the bidders is allowed, on the
issues where the bidder confirms compliance in the evaluation matrix
and contradiction exists on the same issue due to lack of required
supporting document in the bid (i.e. document is deficient or missing) or
due to some statement at other place of the bid ( i.e. re-confirmation of
compliance) or vice-versa. The bid refers to un-priced bid in case of two
bid system. The guiding principle in all the above situations is that the
basic structure of the bid already submitted by the bidder should not be
allowed to change after opening of bids.
Page 46 of 55
21.7.1 Correspondence with Bidders by Indentors/Users
All correspondence with the bidders must be done by Tender

Processing Group only. However, after award of contract, Project
Manager has to interact with the contractor for execution of
contract, provided the same does not result into modification of
any condition of contract and does not involve financial
implications.
Page 47 of 55
CHAPTER-5
AWARD OF WORK
22.0 AWARD OF WORK
22.1 Process for Award of Work
22.1.1 The tender offers received shall be studied in detail and a

comparative statement of substantially responsive bids shall be
prepared. A substantially responsive tender offer is one that
conforms to all the terms, conditions and specifications included
in tender documents, without material deviations or reservations.
If any clarifications are required from the tenderer, the request
and the response shall be in writing but no change in the price or
substance of the tender offer shall be permitted. The comparative
statement is checked and signed by all the members of the Tender
Committee (TC).
22.1.2 The comparative statement shall be in such a way that the rates
are in comparable position as per the terms of tender enquiry
without accepting any special conditions made by the parties.
Variation, deviations, alternative offers and other factors which are
in excess of the requirement of the tender documents or otherwise
result in unsolicited benefits shall not be taken in to account in
tender evaluation. However, appropriate adjustments may be
considered for correction and errors (only arithmetical errors
evident in the tender offers) and for acceptable variations,
deviations, and discounts offered within tender requirements.
22.1.3 Based on the comparative statement, L1, L2, L3.... Ln shall be

determined and the rates of L1 shall be examined in detail with
reference to the estimated rates. IfL1 rates are reasonable the TC
shall recommend the placement of order on L1 party.
22.1.4 In the case of tender for pre-qualification bids, or technical bids,

the comparative statements prepared shall show the position of
the various parameters and commercial terms and the same shall
Page 48 of 55
be put up to TC for study and for recommendation. The

recommendations of TC are put up to the Competent Authority for
sanction. If, however, the terms and specification and other
parameters are to be discussed with the parties, the TC shall do so
before finalise their recommendations.
22.2 Guidelines for Award of Work
22.2.1 The TC shall also prepare evaluation report comprising following

procedure for evaluation. The report will be prepared by the TC.
This committee will follow the following procedures for evaluation:
i. Evaluation will be done only on the basis of set criteria which

will be clearly stated in the bid documents. No document
presented by the bidder after the closing date and time of the bid
will be taken into account TC, unless it is of a purely technical
nature which has no bearing financially on the contract and
which does not seek major changes in technical specification
given in the bid documents.
ii. If a bidder offers a rebate unilaterally after the closing date and
time of the bid, it will not be taken into account for evaluating
purpose by the Tender Committee but if that bidder emerges as
the lowest tender the rebate offered will be taken into account by
the TC. The Tender Committee's recommendations shall be
submitted by the co-ordinating officer to the competent Authority
for its consideration for seeking its approval.
iii. The tender committee's report will be self contained, clear and
unambiguous. The TC must verify the documents meticulously
and bring out all the deviation, if any.
iv. If the prices quoted are above or below the cost estimate by a
percentage considered abnormal say 25%, the tender committee
will give the reasons for such variation. Cogent reasons will be
given for rejecting/accepting bids as Non-responsive/responsive.
If the bid of the successful bidder is seriously unbalanced in relation to

the company's estimate of the cost of work to be performed under the
contract, the company may require the bidder to produce detailed price
Page 49 of 55
analysis for any or all items of the tendered bill of quantities to

demonstrate the internal consistency of these rates with the execution
method and schedules proposed. After evaluation of the price analysis, the
company may require that the amount of performance security is
increased at the expense of the successful bidder to a level sufficient to
protect the interest of the company against financial loss in the event of
default of the successful bidder under the contract.
22.2.2 While studying various bids and recommending or rejecting any

party, the TC shall keep in mind that though the company is not
bound to accept any offers, even though lowest, at the same time
the company must act in a reasonably bonafide way and not
arbitrarily and the same should be on record. While studying the
comparative statement and rates and conditions of the various
parties, TC shall study the conditional offers also and make
assessment of the various offers. The late offers received after
opening of the tender shall not be opened and the same be
returned. The delayed offers received by registered post after due
date but posted before the due date may be considered for opening
by TC subject to approval of competent authority.
22.2.3 During scrutiny/evaluation of tenders if the TC finds that the

original tender enquiry terms need to be relaxed or tender
specifications need to be changed. The TC shall recommend for
revision of terms and re-tendering.
22.2.4 While studying the L1 rates with the estimates, if the TC finds that
variations in the item rates are reasonably close to CPWD
rates/estimated rates and /or past rates, L1 rates can be
recommended.
22.2.5 If, however, L1 rates are much lower than the estimated rates say
by 10% the TC shall examine to ensure, whether the rates are
workable or not without compromising the quality and if required
the rate analysis of the party shall be obtained and studied before
recommending such offer. The TC shall also evaluate whether
performance security provided in the tender documents, is enough
or not prior to finalising its recommendations. The negotiations
Page 50 of 55
with the parties other then L-1 are disallowed as per latest
instructions received from C.V.C.
22.2.6 If the rates of the lowest bidder are abnormally high/low (+/- 10%
of the estimated rates), the TC shall study the viability of
higher/lower rates and may ask lowest bidder for submission of
rate analysis. In case of higher rate quoted by lowest bidder, the
TC recommend, if considered necessary, for negotiation with the
L1 for reduction of the rates. If any such negotiation is to be
conducted, the same shall be got approved by the Competent
Authority before it is resorted to. For negotiation with the L1, TC
shall follow the guidelines of Central Vigilance Commission,
circular No. 4/3/07 Dtd. 3rd March, 2007, together with
subsequent amendment, if any.
Circular No. 4/3/07
Sub : Tendering process negotiation with L1.

1.
i) As post tender negotiation could often be a source of corruption, it is
directed that there should be no post tender negotiation with L!,
except in certain exceptional situation. Such exceptional situation
would include procurement of proprietary items, items with limited
source of supply and items where there is suspicion of a cartel
formation. The justification and details of such negotiation should be
duly recorded and documented without any loss of time.
ii) In case where a decision is taken to go for retendering due to the

unreasonableness of the quoted rates, but the requirements are
urgent and a retender of the entire requirement would delay the
availability of the item, thus jeopardising the essential operation,
maintenance and safety, negotiation would be permitted with L1
bidder(s) for the supply of a bare minimum quantity. The balance
quantity should, however, be procured expeditiously through a re-
tender, following the normal tendering process.
iii) Negotiation should not be allowed to be misused as a tool for

bargaining with L1 with dubious intention or lead to delays in
decision making. Convincing reason must be recorded by the
Page 51 of 55
authority recommending negotiation. Competent authority should

exercise due diligence while accepting the tender a tender or ordering
negotiation or calling for a re-tender and a definite time for you
should be indicated, so that the time taken for according requisite
approval for the entire process of award of tenders does not exceed
one month from the date of submission of recommendations. In case
where the proposal is to be approved at higher level, a maximum of 15
days should be assigned for clearance at each level. In no case should
the over all time frame exceed the validity period of the tender and it
should be ensured that tenders are invariably finalised within their
validity period.
iv) As regards the splitting of quantities, some organisation had

expressed apprehension that pre-disclosing the distribution of
quantities in the bid document may not be feasible, as the capacity of
the L1 form may not be known in advance. It may be stated that if,
after due processing it is discovered that the quantity to be ordered is
far from than what L1 alone is capable of supplying and there was no
prior decision to split the quantities, then the quantity being finally
ordered should be distributed amongst the other bidders in a manner
that is a fair, transparent and equitable. It is essentially in cases
where the organisation decides in advance to have more than one
source of supply (due to critical or vital nature of the item) that the
commission insists on pre disclosing the ratio of splitting the supply
in the tender itself. This must be followed scrupulously.
v) Counter - offers to L1, in order to arrive at an acceptable price, shall

amounts to negotiation. However, any counter offer thereafter to L2,
L3 etc. (at the rates accepted by L1) in case of splitting of quantities,
as pre-disclosed in the tender, shall not be deemed to be a
negotiation.
2. It is reiterated that in case L1 backs out, there should be a re-

tender.
22.2.7 The recommendations of TC shall be signed by all of its

constituents. Based on the TC recommendation the Co-ordinating
Page 52 of 55
Officer concerned shall put up for the approval of Competent

Authority.
22.3 Issue of Work Order:
22.3.1 Work order shall be issued by the appropriate authority to the

PARTY and copies thereof shall be endorsed to all concerned
Department including finance Department. After receipt of
confirmation and performance security form the successful party,
the appropriate authority shall intimate the finance to refund EMD
received from other parties whose offers have not been considered.
22.3.2 Since the validity of the offer by the parties is for a limited period
i.e. 120 days, the co-ordinating officer shall pursue the matter to
ensure that the work order is issued in time. In the event of any
delay likely to take place in releasing of work order extension of
time if any shall be obtained in time form the bidder by the
coordinating officer.
22.3.3 Contract register shall be maintained by the co-ordinating officer,

wherein each contract/work order issued shall be entered. The
serial number of the register shall be the contract number. The
register shall contain the S.No., date, particulars of works,
amount, name of the party to whom issued, unit, schedule date of
completion, actual date of completion, actual final bill amount,
signature of the concerned officer At project also a similar
register shall be maintained.
The site record shall be maintained by the executive authority in

respective mines.
The site record includes site register, hindrance register and

inspec tion and quality control register.
22.4 Repeat Order

i. Repeat orders will be avoided normally. If this is resorted to, in
case of emergency, the decision in this regard will be taken by the
Competent Authority who will have to satisfy himself that the rates
are not showing any downward trend. The co-ordinating officer,
Page 53 of 55
shall, after seeking the approval of the Competent Authority, issue

such repeat orders. The repeat orders may be placed, only once.
ii. No repeat order will be placed, if the earlier order was given on
delivery preference basis or under special circumstances.
iii. In certain cases, where it is desirable to award the repeat order in
the interest of the company it shall be ensured that the rates have
not fallen down in the market and the administrative sanction for
additional expenditure has been taken. A certificate shall be
recorded in the file to the effect that the rates have not fallen down
and the procedure of re-tendering, if resorted to, would not only
delay the procurement but may not further result in obtaining the
rates at par with the existing rates. The value of the repeat order
shall not be more than 50%of the original order, approved by the
Competent Authority.
22.5 Bank guarantee furnished by the Contractor should be unconditional

and shall be in addition to performance guarantee, where ever applicable.
22.6 Before issuing the work order, the Company should include a condition
to the contractor that in the event of failure of Contractor to perform the
Contract in time due to certain force majeure beyond his control, then he
(Contractor) should send a registered letter duly certified by the statutory
authorities (certifying the mis-happenings i.e. natural, civil disturbance)
within 10 days for such instances.
23.0 NOTIFICATION OF AWARD AND SIGNING OF AGREEMENT:
The bidder whose bid has been accepted will be notified of the award by
the Employer prior to expiration of the Bid validity period by cable, telex
or facsimile confirmed by registered letter. This letter (hereinafter and in
conditions of Contract called the letter of Intent) will state the sum that
the Employer will pay the Contractor inconsideration of the execution,
completion and maintenance of the works by the Contractor as
prescribed by the Contract (hereinafter and in the Contract called the
Contract Price).
The notification of award will constitute the formation of the Contract

subject only to the furnishing of a performance security.
Page 54 of 55
The Agreement will incorporate all correspondence between the Employer

and the successful Bidder. It will be signed by the representative of the
Employer as per DOP and sent to the successful bidder.
Upon the signing of agreement by the successful Bidder, the Employer

will promptly notify the L2Bidder that their Bids have been unsuccessful
and release their Bid security.
*****
Page 55 of 55

Kamarajar Port Limited: Tender Procedure Manual

Uploaded by

Copyright:

Available Formats

Kamarajar Port Limited: Tender Procedure Manual

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Kamarajar Port Limited: Tender Procedure Manual

Uploaded by

Copyright:

Available Formats

KAMARAJAR PORT LIMITED

(A MINI RATNA Govt. of India Undertaking)

TENDER PROCEDURE MANUAL

CHAPTER 2 PRE-TENDERING ACTIVITIES

CHAPTER 3 TENDERING PROCESS

CHAPTER 4 TENDER DOCUMENTS AND APPROVALS

CHAPTER 5 AWARD OF WORK

1.0 ACTIVITIES CONNECTED TO WORKS

1.1 To initiate/receive the proposals for various works to be carried

1.6 To maintain the contract files/records.

1.7 To maintain a register of pre-qualified contractors for issue of limited

1.10 To ensure accountability and responsibility of the various personnel

"Works" shall mean: any activity/group of activities/turnkey or otherwise

2.1.1 Civil works

Construction of berths/jetties/dredging and all ancillary

Related to roads & railway works, foundations & other works

Residential/Non-Residential buildings, RCC/Steel storage

Estate repairing, maintenance and upkeep in field and plant

areas/offices/townships etc. including water supply etc.

Any other miscellaneous civil works.

2.1.2 Electrical works

Sub-stations, power supply, external and internal cabling /

Repair & maintenance of electrical installations/facilities in

AMC, R&M of EDP equipment, Networking and other Marine

2.1.3 Marine works

Works related to safe berthing /de-berthing of vessels in the

Survey works related to dredging.

Works related to Environmental issues.

Works related to Safety issues, Fire Tenders

OPERATION AND MAINETENANCE OF Fire Services, Hire of

Consultancy Contracts, Project Managements, Professional

2.2 'Works Manual shall mean a set of instructions/guidelines/actions to be

Administrative approval of competent authority as per DOP at the

The Expenditure Sanction and budgetary references etc if

available, and the envisaged time schedule. In case of priority /

2.4 'User/Indenter' shall mean the (authority) Group/Department that

2.6 'Competent Technical Authority' (CTA) shall mean the appropriate

2.7 'Competent Tender Accepting Authority' (CTAA) shall mean the

2.8 'Project Manager/Engineer-in-Charge' shall mean the person(s)

2.9 'Project Coordinator/Site-in-Charge' shall mean the person(s) nominated

3.0 CLASSIFICATION OF WORKS

All works can be primarily classified as Capital or Revenue as hereunder:

3.1 'Capital' works will comprise of all works which facilitate to

3.2 'Revenue' works will comprise of all maintenance, repair, refurbishment,

4.0 STAGES FOR EXECUTION OF WORKS

4.1 Requisition of Work from the User Group/Indenter.

4.2 Basic scope of work and preliminary cost estimates by User

4.5 In case of urgency, the Head of Departments may permit invitation of

4.6 Emergency works may be resorted to if there is an operational urgency

user/indenter shall record the above mentioned operational urgency to

4.7 The competent authority shall accord administrative approval and

4.8 Scope of Work

4.8.1 Finalization of Scope of work

Based on the broad scope of work available in the Feasibility

Geotechnical investigation for obtaining soil report and

Work centers will provide the location coordinates for

4.8.2 In case of revamping/modification works envisaged in the scope of

4.8.3 Approval of Scope of work