Below Tenders Guidelines

yogendra borse

    Construction and repair works of roads, bridges and buildings are undertaken and completed through the Public Works Department. Actions are taken to complete the said works by awarding the work to the lowest tenderer in the tender received by inviting open competitive tenders following the prescribed procedure. In relation to all these procedures, the government has issued various government decisions/circulars/guidelines from time to time.

Revised guidelines to be followed regarding acceptance of tenders received below the budget rate.

        The Public Works Department has decided to invite tenders for works worth more than 3 lakhs through e-tendering and action is being taken accordingly. Due to this method, the tendering process of works has become more transparent and tenders are being received through open competition as there is no interference in this process. It has been pointed out that in the recent past, the rate of receipt of rates far below the tendered estimate rates for many works has increased significantly. Taking into account the experience in this context, it is seen that many tenders are getting rates that are more than 10 % lower than the estimated rates. As the rates paid by the contractors are not suitable for the work, it has been observed that the contractors submitting the tenders at low rates are not completing the tender process, abandoning the works in a partial state etc.

    Due to this it is not possible to complete the work as per the schedule. It takes a long time to take action against the contractors if the work is not done as per the prescribed schedule as per the provisions of the accepted tender. In this context the contractor also goes to court which adversely affects the progress and quality of the works. Alternatively, due to lapse of funds, non-availability of the works, necessary facilities are not available to those for whom the works are being carried out.

    In order to plan solutions to all these issues, the government has indicated that it is necessary to make some changes in the procedure followed while accepting low rate tenders. In this regard, during the discussion held in the session of the Maharashtra Legislative Council on 16/12/2015, various members of the Legislative Assembly stated that the development works in their constituencies are not being completed within the prescribed time limit and as per the quality as the contractors are not doing the work as per the schedule after receiving low rate tenders and thus the people have to face a difficult situation. The matter has been brought to the notice of the House. In this regard Hon. In a statement made by the Minister, Public Works Department, it has been stated that new guidelines are being issued regarding the acceptance of low rate and once the action is started as per these instructions, such matters will be prevented from occurring.

The issue of issuing new guidelines in this regard was under the consideration of the government. After a detailed study in this regard, the Government is now issuing new revised guidelines as follows Government Decision-

1. If the price of the lowest tender received in the tender process is more than ten percent less than the price of the work under tender, the tender inviting officer should obtain detailed details from the concerned contractor regarding the plan to work at such a lower rate. It should be ensured that the work can be completed at the lowest possible cost based on the specifications given by the contractors.

2. If the lowest tender received is at rates up to 10% less than the price of the work under tender, the contractor shall submit a demand draft of 1% of the price under tender as performance security in tender envelope no. 2 should be submitted. (To be scanned and submitted along with e-tender) (Eg :- 1% to 10% less rate 1% amount)

3. If the price of the lowest tender received is less than the price of the work under tender by more than 101%, if the price is less than 10%, together with the amount as mentioned in item-2 above, a Demand Draft should be sent along with the tender in envelope no. 2 should be submitted. (eg 14% lower rate up to 10% 1% and (14% - 10%) 4% total 5%)

4. Proceedings regarding making money slip available / return of money slip and other matters should be as follows :- 

(a) Money slip should be in favor of the Executive Engineer inviting the tender.

(b) The draft should be drawn from Government Banks or Scheduled Banks. 

(c) The term of deposit should be at least 3 months after the date of submission of tender.

(d) Contractors should scan the copy of the receipt and upload it while filling the e-tender.

(e) The Contractor shall deposit the money in a sealed envelope in the office of the Executive Engineer within 5 (5) working days from the date of acceptance of tender. The name of the work and tender number should be written on the envelope.No need to fill Additional Security Deposit amount if the tender price is less than the budgeted rate upto 1%.

(f) Bank's MICR and IFSC Code number must be on the DD.

(c) On opening of tender envelope no. In case of non-fulfillment of the documents in 1, the respective contractors should return their money slip envelopes by the Executive Engineer within 7 days from the date of opening of tender.

(d) Envelope no. After completion of the documents in 1, the deposit envelopes of the other contractors except the deposit envelopes of the lowest 2 tenderers in envelope no.2 should be returned within 7 days.

(f) Within 3 days of issuing the order to commence work to the lowest tenderer no. 2. The lowest tenderer's deposit should be refunded.

(g) Contractors submitting false documents/bank slips in the above procedure should forfeit the EMD and registration of the concerned contractors should be suspended for 1 year. Superintending Engineer will have full authority for this.

5. The Executive Engineer should proceed to issue the commencement order only after the receipt of funds received from the lowest tenderers.

6. The Executive Engineer shall return the performance security amount received from the contractor to the contractor within 3 months after satisfactory completion of the work as per the provisions of the tender.

7. All the guidelines issued earlier by the government regarding the above matters are being superseded.

8. This Government Decision shall remain applicable to all low rate tenders received after issuance.

The said government decision has been made available on the website of Maharashtra Government www.maharashtra.gov.in and its reference number is 201602121256501118.