MANAGEMENT
OF
CONTRACTS
AND
PROBLEMS FACED
WORK LOAD OF ESTIMATES, TENDERS & CONTRACTS IN ENGG DEPT
859
900
05-06
06-07
07-08
800
657
700
598
600
460
500
396
400
300
200
298
281
169
114
100
0
Estimates
Tenders
Contracts
RESULT OF TENDERS INVITED IN ENGG DEPT
859
900
800
700 657
Invited
Awarded
No response
Cancelled
600
500
400
300
200
100
0
448
474
251
134
105
104
05-06
298
06-07
VERY HIGH
NO RESPONSE
169
DURING
43 35
2006-07
07-08
NO RESPONSE IN TENDERS IN ENGG DEPT
No response tenders out
of total tenders invited
900
800
700
60
859
50
657
600
60
45
40
500
400
300
200
No response in R&C tenders
out of R&C tenders invited
251
105
298
43
100
Total tenders
No response
48
31
Total R&C
30
No response in
R&C
20
6
10
2
0
0
05-06
06-07
07-08
05-06
06-07
07-08
CONTRACTS TERMINATED IN ENGG DEPT
25
22
20
17
15
Terminated
10
5
5
0
05-06
06-07
07-08
CONTRACTORS WHOSE CONTRACTS WERE
TERMINATED IN LAST TWO YEARS
No of
terminations
Sr.DEN’s
section
No
Name of contractor
1
Sharada Engg
5
Estate-4
South -1
2.
Albela Construction
1
Estate
3.
Naveen Enterprises
3
Estate-1
North -2
4.
Pradeep Engg Const Co
1
Estate
5.
Ajay Enterprises
1
Estate
6.
Rajesh Gupta
1
Estate
7.
Shanti Constructions
2
East
8.
Sihakar Stone quarry
2
East
9.
K.P.Mishra
1
East
10.
Kapil Traders
2
East
11.
R.N.Bhusa
2
East
CONTRACTORS WHOSE CONTRACS WERE
TERMINATED IN LAST TWO YEARS
No
Name of contractor
No of
terminations
Sr.DENs
section
12.
R.P.Jaiswal
2
East – 1
North – 1
13.
Ravi Construction
2
North
14.
Navin Construction
1
North
15.
Jain Bros
1
North
16.
P.N.Trapasia
1
North
17.
M.R.Construction
1
North
18.
Rajeev Associates
1
North
19.
Amit Enterprises
1
North
20.
Pradeep Engg Const
services
1
North
21.
Vishal Enterprises
1
North
22.
Deepti Enterprises
1
North
CONTRACTORS WHOSE CONTRACS WERE
TERMINATED IN LAST TWO YEARS
No
Name of contractor
No of
terminations
Sr.DENs
section
23.
A.D.Savlia
1
North
24.
Arun Kumar Tiwari
1
North
25.
Lehra Constructions
3
North
26.
Bharat Vijay
1
North
27.
Rajeev Associates
1
South
28.
Rakesh Enterprises
1
South
29.
Pestofume Corporation 1
South
30.
Shiv Balaji Carriers
1
South
31.
Manee Enterprises
1
South
32.
Rajesh Kumar
1
HQ
Total – 44 contracts and 32 contractors
INCREASE IN DIESEL PRICES
INCREASE IN PETROL PRICES
INCREASE IN PRICES OF OTHER
MATERIALS IN LAST 3 YEARS
•
•
•
•
•
•
•
•
•
•
Cement from Rs.140/Bag to Rs.260/Bag (86%)
Steel from Rs.16/Kg to Rs.35/Kg
(119%)
Asphalt from Rs.12/Kg to Rs.26/Kg
(117%)
Ballast from Rs.300/Cum to Rs.700/Cum (133%)
Aluminum from Rs.140/Kg to Rs.200/Kg (43%)
Bricks from Rs.1.50/each to Rs.3/each (100%)
Sand from Rs.2000/Cum to Rs.3000/cum (50%)
Metal from Rs.1200/Cum to Rs.2000/Cum.(67%)
Skilled labour from Rs.200/- to Rs.300/- (50%)
Unskilled labour from Rs.100/- to Rs.150/- (50%)
OTHER FACTORS FOR POOR RESPONSE
• Unstable market prices of cement, steel, fuel & asphalt
• Increase of Earnest money to 2% flat rate w.e.f June’06
• Increase in security deposit to 5% w.e.f June’06
• Introduction of 5% Performance Guarantee w.e.f June’06
• With drawl of Lump sum Earnest Money w.e.f June’06
Petty registered contractors are not able to participate in
large number of tenders as they were doing before as their
money gets blocked in EMD as facility of LSEM has been
withdrawn
ENGG DEPT -BUDGET FOR CONTRACTUAL EXP 07-08
A.DEMAND NO.16
No
Plan head
1.
Traffic facilities
2
B.REVENUE DEMAND NO.4&11
BG in
Crores of
Rs
No
Repairs & Mtc of
1.55
1
Track
5.01
Road safety
2.22
2
Bridge
2.19
3.
Bridge Works
5.10
3.
Service buildings
4.05
4.
Track works
17.45
4.
5.
Workshop
1.14
Water supply
sanitation & Roads
6.
Staff quarters
1.23
5.
Other repairs
0.15
7.
Staff Amenities
1.45
6.
Special repairs
0.40
8
Passenger Ame
18.46
7.
6.56
9
Other specified
1.67
Staff Qtrs & Staff
colonies
Total
50.27
Total
BG-in
Crores of
Rs.
13.50
31.66
GRAND TOTAL OF A & B- 82 Cr
SHORTAGE OF SUPERVISORS
IN WORKCHARGED
IN REVENUE CADRE
160 150
140
125
120
94
100
80
80
62
60
50
40
20
0
PWIS
IOWS
REQUIREMENT
CADRE
ON ROLL
50
45
40
35
30
25
20
15
10
5
0
50
40
31
31
20
13
PWIS
REQUIREMENT
CADRE
ON ROLL
IOWS
Summary of revenue and workcharged
Shortfall w.r to requirement
Vacancies w.r to cadre
Item Requir On Short %
Sancti
on
vanc %
-ement roll fall age -oned
roll -ies age
PWI 200 114 86
43%
156
114 42
27%
IOW 120
63 57
48%
93
63 20
22%
PROBLEM OF SUPERVISION OF WORKS
1.
2.
3.
4.
No permanent posts of IOWs created in more than two
decades though assets have increased.No permanent
posts of PWIs have been created for section beyond
DRD in more than two decades.
Board had issued orders that supervision of track
works should be by work charged PWIs and not by mtc
PWIs. However this could not be implemented due to
shortage of PWIs.
During 2004-05, 52 work charged posts were
sanctioned which were increased to 72 during 2005-06
and 125 during 2006-07. However no purpose is being
served by creating of more work charged posts for
supervision as there are no incumbants for even cadre
posts.
Indents for RRB are based on vacancies existing and
anticipated and not on the anticipation of increased
workload and posts.
PROBLEM OF SUPERVISION OF WORKS
5.
6.
7.
RRB is recruiting candidates for the indents without
taking into account the rate of materialisation of
indents. Materialsation in superviors is only 50% to
60%. Therefore panel should be made available for
double the vacancies as directed by GM.
Creation of work charged posts are not being allowed
in works chargeable to revenue though value of
contracts of revenue form more than 50% of value of
contracts of demand no.16.
Supervision of contractors works needs to be done by
supervisors against work charged posts and sectional
PWIs/IOWs should not be given any contractual works.
For this adequate number of cadre and work charged
posts needs to be created liberally and assistance
from the finance is necessary for creating these posts.
LACK OF INFRASTRUCTURE IN DIVISION
• POOR INFRA STRUCTURE OF WORKS ACCOUNT SECTION
The cadre of Works Account section which is handling contracts is
not commensurate with work load of tenders & contracts. At present
there are only 11 clerks managing about 900 tenders, 600 contracts
in a year besides booking of expenditure & completion reports of
these works. About 40 arbitration cases are also handled by them
Total contracts being managed at any point of time are much more.
• POOR INFRASTRUCTURE OF ESTIMATE SECTION
The strength of estimators are also very poor. There are 9
estimators managing 200 abstract estimates, 500 detailed estimates
( Some percentage does not materialise), 900 tenders, technical
check of 600 contracts, 1000 zonal work orders & 2800 running and
final bills including around 1000 of zonal contracts.
.
POOR INFRASTRUCTURE OF DRAWING STAFF
Similary there is shortage of drawing staff. There are only 12
draftsmen and they have to deal about 300 drawings in a year. They
have to go to site for measurements, chase drawings for approval of
concerned officers.
LACK OF INFRASTRUCTURE FOR ADENS
ADENs are not having any estimators or draftsmen
unlike other zones or division where each ADEN has an
estimator for assistance.
There is also shortage of clerks and typists for the
ADENs as number of ADENs have increased and
clerical staff have decreased. Now each ADEN is having
only two clerks/typists against requirement of at least
three – one for contracts, one for establishment and one
for stores and other correspondences.
29 STEPS IN PAYMENT OF A BILL
1.Measurements by IOW/PWI including variation statement in case of SWO
or final bill. Delay takes place at this stage itself as IOWs have more
contracts than he can manage.
2. MB sent to ADEN office for ADEN’s test check and prepn of bill.
3. Arithmetical check of measurements by ADEN bill clerk
4. Test check of ADEN on the measurements
5. Preparation of bill by ADEN office clerk.
6. Signature of ADEN on the bill
7. Bill sent to the WA section in divisional office with top sheet.
8. Bill is sent to estimator for technical check.
From here some bills are returned for want of clarifications/compliance.
Transit involved are estimator to WA section, WA section to ADEN office,
ADEN office to IOW/PWI and back by same route to estimator.
9. After technical clearance by estimator, bill is sent back to WA section.
10.In WA section bills & MBs are checked by bill clerk for arithmetical
errors, check of rates, check of variation statement, currency of contract
etc... and if any discripancies are found are retuned to ADEN for
rectification/clarification.
29 STEPS IN PAYMENT OF A BILL
11.File put up to Sr.DEN to decide if extension of contract will be on Rly or
contractor account under relavant clauses of GCC..
12. If quantities are more than 25% of contracted quantities, bills are
corrected for quantity up to 25% for making running bill payment to
contractor. Otherwise SWO is sent for accounts vetting with vitiation
statement prepared in WA section.
13. File again put up to Sr.DEN to forward proposal for SWO to accounts.
14. File will be returned by accounts with quarries.
15. The quarries will be sent to ADEN for reply which the ADEN will get
from IOW and file resubmitted to accounts with reply.
16. If reply is not satisfactory, it will be again returned by accounts and
same process repeats.
17. Finally after SWO is vetted and approved, work order for same is typed
and sent for contractor’s signature.
18. Various recoveries like water charges, cess charges, taxes etc.. are
deducted from the bills by bill clerk.
19. Then bill is checked by OS(WA) before processing for payment.
20. Bill is checked by SO(WA). He can also raise quarries from his side and
return the bill all the way down to IOW.
29 STEPS IN PAYMENT OF A BILL
21. After check of SO(WA), bill is sent for Sr.DENs signature.
22. The bill is then sent to the works register section in WA section for
booking expenditure in works register.
23. From the booking section bill is returned to WA section from where it is
sent to accounts section.
24. The accounts section send the bill to budget section for funds
certification.
25. After funds certification by OS(Budget), bill is sent back to accounts
where it is checked. At this stage also the bill can be returned with
quarries which goes all the way down and comes up.
26. After bill is checked in accounts CO-7 number is given.
27. From there it goes to another section in accounts where CO-8 number
is given.
28. Cheque is printed through AFRES system and sent to cash & pay
office.
29. As a normal course, cheque will be sent to the address of the party by
the cashier of cash and pay section.Sometimes cheque are held up
there for want of stamps.
• Delays in verification of Bank guarantee,
partnership deed, power of attorney by legal
cell in individual cases taking time
• Want of plan while starting work
• Want of clear site of the work
• Change in scope of work during execution or
bad estimation requiring additional/extra
items and delay in payment due to time
involved in SWO
• Problems in getting electrical connections
from electrical department including heavy
deposits for each connection
• Interferences of security agencies like RPF
including arrest of labour
• Interference of unruly elements especially in
some areas
• Non availability of block, wagons & Railway
materials
• Non availability of specified thickness and
size of materials in the market and heavy
recovery due to recovery based on prorata
basis.
• Users requiring change in scope of work
• Delay in signing of agreements
• Delay in decisions from the railway in the
work.
• Delay in measurements
• Delay in preparation of bills
• Delays in processing of bills
• Delays in vetting of SWO due to shuttling of
cases
• Delay in payments due to paucity of funds
• Delay in release of EMD/SD
• Recovery due to risk & cost in works of other
divisions/zones affecting works on this
division
• Penalties/LD levied during extension of
contracts
• Holding up payments due to reasons
attributed to internal affairs of Railway like
revision of estimate, approval of NS item etc.
• Loss of MBs or files
• Disputes in contracts
• Incomplete documents being submitted at
time of tendering (PD, POA, DEC etc.)
• Unworkable rates being quoted in some
items
• Ambiguous rates being quoted (above/below
not being quoted, rates in words & figures
being different, different rates quoted for
same item in schedule and offer sheet)
• Some contractors not reading the documents
fully
• Delay in submission of performance
guarantee.
• Work not being started within 7 days from
LOA
• Samples of materials not being submitted for
approval in advance
• Extensions of DOC not being sought before
scheduled or extended date of completion
• Substandard work
• Contractors nor willing to execute certain
items of works in contract
• Debris not being removed from site of work
from time to time as well after completion
• Safety precautions not being taken by
contractor like cordoning off the area of work.