WORKS

MANUAL

मिनरल एक्सप्लोरे शन कार्पोरे शन लिमिटे ड

MINERAL EXPLORATION CORPORATION LIMITED
डॉ बाबासाहे ब आंबेडकर भवन,
सेमिनरी हिल्स, नागपरु – ४४०००६
Dr. Babasahab Ambedkar Bhawan,
Seminary Hills, NAGPUR -440006

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 PREAMBLE

The Works Manual has been prepared and being released after approval of the MECL
Board, keeping in view the objectives for promoting excellence and transparency in
execution of the Business activities, Civil works activities and awarding of contract-
work(s), in MECL for progressive and sustainable growth.

All the concerned divisions of the Company are expected to abide by the same while
awarding the contracts, without any prejudice and undue favour to anyone.

It is also essential to uphold the interests of Mineral Exploration Corporation Ltd. in all
Contract-work(s) transactions by maintaining the due integrity, dignity as well as office
responsibility.

At the same time, it is also necessary to ensure:-

(i) The availability & provision of a level-playing field to all legitimate and eligible
bidders & contractors.
(ii) Honesty and trust in awarding the contracts.
(iii) Denigration of all commercial malpractices and other unethical/ illegal ways and
means in awarding and execution of contracts.
(iv) Promotion of a healthy and harmonious relationship between Contractor and the
Company.
(v) Participation of MSME must be ensured as per government guide lines.

I am sure these guidelines will increase efficiency of awarding and executing works
through contracts effectively.

Dr. Gopal Dhawan

CMD, MECL

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 INDEX

CHAPTER
SUBJECT PAGE NO.
NO.
I Introduction 1

II Definitions and Interpretations 2

III Scope and Functions 5

IV Administrative Approval 6

V Preparation of Estimate 8

VI Tender Document 10

VII Tender Publications 11

VIII Empanelment of Contractor 14

IX Receipt of Tenders and their Acceptance 17

General Terms and Conditions (GTC) & Special
X 28
Conditions of Contract (SCC)
XI Execution of Work 36

XII Measurement & Payment of Work 38

Earnest Money Deposit/Security Deposit/Tender
XIII 39
Fee
XIV Issue of Tools, Plant and Machineries 40

XV Extension of Time 41

XVI Payment to the Contractor 44

XVII Blacklisting 45

Important Notes 47

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 CHAPTER-I

1.0 INTRODUCTION :

1.1 Every organization should have an efficient procedure and clear set of guidelines
for handling Tenders, Contracts and other allied matters in a Systematic,
Transparent and time bound manner.
The objective of the “WORKS MANUAL” is to streamline the functioning of
concerned divisions assigned with the responsibility of awarding and execution of
the Works-contracts of the Company, for effective Works Contract Management.

1.2 This Works Manual supersedes all earlier Circulars/ guidelines issued by MECL and
shall be applicable for all the Tenders and Contract-Management activities of the
Company specifically pertaining to the works-contracts. As such, this includes all
the contracts covered under works-contracts like Exploration-services, Business
Development &Commercial activities, Civil, Electrical, Horticulture, Mechanical,
Maintenance–operations, Repairing-jobs and Transportation etc.
However, under special or extraordinary circumstances, the works not covered in
this Manual shall require specific approval of the Competent Authority i.e.
Chairman-cum-Managing Director of the Company.

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 CHAPTER-II

2.0 DEFINITIONS AND INTERPRETATIONS:

2.1 Administrative Approval (A.A.): Shall mean acceptance by the Competent Authority
as per the Delegation of Power (DoP) for initiating Tender-activities for execution of
work on obtaining financial concurrence for budgetary expenditure from Finance
division.
2.2 Advance Payment: Shall mean a payment made in advance against a Running
account or work in progress or otherwise to a contractor which may be adjusted
later.
2.3 Bank-Guarantee (B.G.): Shall mean a security from the Bankers on behalf of the
Tenderer or Contractor, towards Earnest Money Deposit (EMD) or security deposit or
for taking any advance for discharging any liability from a scheduled Bank or such
Banks as indicated by the Company. However such B.Gs. are required to be
submitted by the participating firm in the prescribed format only as provided by the
Company along with the Tender documents. Further, it is also required that the
bidders/contractors should be insisted that all such B.Gs. to be submitted to the
Company directly by the B.Gs. issuing Bank under Registered Posts. However, the
duplicate copies of the same may be sent to the Company by the bidders/
contractors with a covering letter confirming about submission of the original B.Gs.
by the concerned Banks. One officer in each concerned division should exclusively be
nominated/made responsible for verification, timely renewal as well as timely
encashment (if needed so) of all such B.Gs. being received.
2.4 Business Development & Commercial Division (BD & C.): Shall mean the Business
Development & Commercial Division of Company at Corporate Level, Nagpur
executing the tendering activities related to outsourcing of work-contract jobs.
2.5 Bill of Quantity (BoQ) or Schedule of Items: Shall mean the detailing of the items of
the contract work required to be completed in part or full by the contractor to
complete the contract and to raise the Bill as per terms of the contract with
reference to Bill of Quantity (BoQ) or Schedule of Items indicated along-with item
rates and completed quantities.
2.6 Civil work contracts: Shall mean the Civil Division of Company at Corporate Level,
Nagpur executing the tendering activities related to outsourcing of work-contract
jobs.
2.7 Competent Authority: Shall mean any authority having the relevant power vested/
delegated by the Company as per “Delegation of Powers”, administratively/
financially.
2.8 Contingency: Shall mean the unforeseen expenses which are of miscellaneous nature
pertaining to the works.
2.9 Contract: Shall mean an ‘Agreement’ enforceable by law between the Company and
the contractor for the execution of the works and includes all documents such as
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 Notice Inviting Tender (NIT), Instructions to the tenderers, General Terms and
Conditions of Contracts (GTC), Special Conditions of Contracts (SCC), Technical
Specifications and Tender drawings/maps, scope of work. Schedule of quantities,
Agreed variations (if any), correspondences between the parties and the Company in
connection with the contract work, unless specific exclusion(s), if any.
2.10 Construction Power: Shall mean the electric power required for construction activity
for due completion of the contract.
2.11 Construction Water: Shall mean the water required for the construction activities for
due completion of the contract.
2.12 Drilling Water: Shall mean the water required for the execution of drilling activities
till completion of the contract.
2.13 Delegation of Power (DoP): Shall mean the financial authority/power vested on
different levels of officers by the Company.
2.14 Earnest Money Deposit (EMD): Shall mean an amount to be deposited along with
the Tender as a prerequisite for any Tender to be considered for evaluation. The
Tenderer/Bidder must submit the EMD along with the tender as per the stipulations
in the Tender. The monetary limit of the EMD shall be as per the guidelines issued in
Works Manual in chapter X, clause no. 10.2.
2.15 Final Payment: Shall mean the last payment of the contract made/to be made to the
contractor, after issuance of “COMPLETION” and “NO CLAIM CERTIFICATE” by the
Company on completion and/or termination of the contract. This shall be deemed as
full & final settlement and payment on account of a particular work/contract.
2.16 General Conditions of the Contract (GCC): Shall mean the General conditions
required to be fulfilled by the executing agency for the satisfactory completion of the
assigned work to the contractor/ agency.
2.17 Intermediate Payment: Shall mean a term applied to disbursement of any kind of
payment on a running account. It includes an advance payment, a secured advance
and on-account payment (other than the final payment on a running account) or a
combination of these.
2.18 Issue Rates: Shall mean the rate at which any material required for due completion
of the contract is to be issued to the contractor, which is specified in the Tender
itself. In case the tender does not specify issue of a particular item and same is
required to be issued to the contractor (in the interest of the company), the rate may
be derived and charged by adding 25 % (extra) of the cost as per valuation of the
Company’s Price stock-ledger(PSL) towards storage, handling and other incidental
charges etc.
2.19 MECL: Shall mean “Mineral Exploration Corporation Limited” situated at Seminary
Hills, Dr. Baba Sahab Ambedkar Bhavan, Nagpur - 440 006.
2.20 Officer-in-Charge/ Engineer-in-Charge: Shall mean the person nominated by MECL
from time to time and shall include those who are authorized to act for and on behalf
of those functions pertaining to the operations of the contract. All functions

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 pertaining to the operations of the contract include all acts necessary for execution
of the contract by establishing co-ordination between different agencies upto final
closing and completion of the contract.
2.21 Running Account Bill: Shall mean a term applied to intermediate bills raised by the
Contractor during the tenancy/ progress of the contract, at regular interval or as
specified in the Tender, subject to final settlement of the account on the completion
or termination of the contract. Payment against running account bills shall be treated
as advance payment only.
2.22 Secured Advance: Shall mean a term applied specifically to an advance made to a
contractor against the security of imperishable materials/machineries brought by
contractor to site for completion of the work.
2.23 Security Deposit: Shall mean a deposit to safeguard the interests of MECL against any
damage/loss that may occur due to non-completion of work, inferior workmanship or
otherwise. This also safeguards the MECL’s interests towards recovery of costs
towards unrecovered material etc. and other claims if any, due to the fault of the
contractor. The amount of the Security Deposit is recoverable as per the stipulations
in the General Terms and Conditions (GTC) & Special Conditions of Contract (SCC).
2.24 Special Conditions of Contract (SCC): Shall mean the conditions specially required to
be fulfilled by the executor agency or contractor and it’s a part of the tender
condition for the effective execution of the contract.
2.25 Specifications: Shall mean the detail work required to be carried out as per required
specifications indicated to meet the requirement for the completion of the work.
2.26 Technical Specifications: Shall mean the work required to be carried out to fulfill the
technically suitability of the work as per the specifications to meet the requirement.
2.27 Tender document: Shall mean the Document containing all information like General
Conditions of Contract (GCC), Special Conditions of Contracts (SCC), Technical
Specifications, Scope of Work, Bill of Quantities, Tender Drawings and Notice Inviting
tender etc. is termed as the Tender document.
2.28 Tender drawing: Shall mean the drawings enclosed with the Tender document,
which are of indicative nature only.
2.29 Works (Original & Repairing Work): Shall mean and include all works to be executed
in accordance with the Contract or part thereof as the case may be and shall include
all extra works , additions, alterations or substituted works as directed by the HoD/
OIC for due completion of the contract.
In case of Civil work:
1. New Construction Work.
2. Repairing Work.
3. Emergency Construction Work.
4. Urgent Construction Work.
Building work: includes Repairing & maintenance of Electrical work, Electrical
installation, road Construction & horticulture related work.

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 CHAPTER-III

3.0 SCOPE AND FUNCTIONS:

3.1 The respective Division at the Corporate Office shall be responsible to call for the
tenders and process the same for award of work.
3.2 The respective Division i.e. Drilling, Exploration, Mining, Information Technology,
Finance, Administration, Civil Section, Workshop, etc. who are required to execute any
sort of the work through Work-contract/other contract shall initiate the proposal for
Financial and Administrative approval of Competent Authority and include the total
requirements like scope of work, Technical Specifications, Drawings, Schedule of
Quantities etc. for activities to be done through tendering.
3.3 Amendments, modifications and clarifications of this work manual if any, shall only be
made with the approval of the Chairman-cum-Managing Director.
3.4 In the matter of any interpretation or disputes regarding any clause/provision of this
manual, the decision of Chairman-cum-Managing Director will be final & binding.
3.5 Financial limits/provisions in this Manual will be as per the Delegation of Power (DoP).
3.6 Since many provisions are normally spelt out elaborately in the General Conditions of
Contract (GCC) and some are not covered in this manual, in such case to avoid
contradictions, the provisions of GTC & SCC shall prevail unless otherwise mentioned
in this manual.

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 CHAPTER-IV

4.0 ADMINISTRATIVE APPROVAL:

4.1 No work, except for emergent works related to Plant and Machinery
breakdown/Safety of Employees/Safety of MECL’s property shall normally be awarded
or liability thereon committed without obtaining the ‘Administrative Approval’ of the
Competent Authority in conformity with the DoP.
4.2 The proposals should be comprehensive based on detailed information on scope of
work, drawings, designs etc. In absence of detailed information, drawings, a tentative
estimate may be made on the basis of preliminary information. The proposal along
with the estimate should contain the following information:
a) Scope of work (Item wise quantum of work, with quality and specifications)
b) Reference of Budget Provision (if any)
c) Justification of the work proposed
d) Time schedule.
e) Preliminary drawings, designs, maps etc. (if any)
f) Mode of execution (Resources deployment expected for the job, progress bar
chart etc.)
g) Basis of estimate may be market survey, reference of previous contract or
available Schedule of Rate (SoR) of CPWD, PWD etc. including work like Civil,
Electrical and Horticulture etc.
4.3 A proposal for administrative approval for works related to the nature of ‘Operation’
or ‘Maintenance’ is to be prepared initially along with the justification and a
preliminary estimate/detailed estimate separately indicating the estimated contract
value and cost of free issue materials if any.
However a detailed estimate should be prepared and placed in file before Tendering
process.
4.4 In case of works required for divisions other than executing division, the necessary
proposal with justifications from the requisitioning division shall also be enclosed with
the proposal and routed through executing division for obtaining the administrative
approval.
4.5 Proposal for administrative approval shall also contain the mode of tendering process
like ‘Limited Tender Enquiry’ (LTE) or ‘Open Tender’ and the tender shall be in ‘two
parts’ or in ‘single part’ which shall be mentioned very clearly. The concerned division
is required to indicate tendering aspect clearly in its proposal.
4.6 Where site visit/survey is necessary before proceeding with the main project, the same
shall be mentioned in the main proposal by the concerned division.
4.7 In case, if it is not possible to get the whole work executed through one agency, within
the stipulated time then the work may be awarded/divided to different agencies
together at the rates quoted by L-1 bidder. The intention to split the work amongst

6
 more than one agency should be clearly stated specifically and without any ambiguity
in the tender documents other than building road and horticulture works.
4.8 In case of emergencies involving plant breakdown, urgent repairing /maintenance
work etc., the work can be carried out as per relevant provisions in DoP and necessary
follow-up action. For obtaining ex-post-facto administrative approval should also be
initiated immediately.
4.9 Ex-post-facto approvals should not be made a rule but only an exception for the works
executed/committed under unavoidable circumstances only and with the approval of
the Competent Authority as per DoP.
4.10 Expression of Interest (EoI): Expression of Interest will be published in the Newspapers
and will be launched on the website as per the requirement on due approval of
Competent Authority (CA) / CMD.

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 CHAPTER-V

5.0 PREPERATION OF ESTIMATE:

5.1 The concerned division/section of Drilling/Mining/ Exploration/ Information

Technology/ Finance/ Workshop/ Civil etc. will prepare the cost estimate based on the
actual ground conditions and prevailing work execution period along-with detailed
calculation of various components involved in the completion of the work for
obtaining financial vetting / concurrence.
5.2 All care should be taken to assess the quantities of each item of work close to reality to
the extent possible.
5.3 In case of petty works, the detailed drawings, designs-features, etc. are not necessary.
5.4 Preliminary estimates : For the civil works and drilling works the preliminary estimate
can be prepared on ‘Thumb rule’ basis for obtaining the administrative approval as
follows:
Building work includes
a) Plinth Area Basis (Original work)
Electrical and Horticulture

b) Road works Length/Area basis

Type of Formation, on depth basis,

Core/Non-core/RC drilling Ground/Terrain Conditions and
c)
work Available market rate basis and Last
similar type of work award Price.

5.5 Detailed estimate: Detailed estimates for the works shall be prepared for following
categories:
a) For Civil works including Electrical work, Horticulture & Road construction/ repairing &
maintenance works.
b) For Mechanical/ Instrumentation etc.
c) For outsourcing of any other work. (Exploration, Drilling, Business Development &
commercial, Mining, Civil, IT and finance related works).
5.5.1 Civil Works, Electrical Works, and Horticulture Works: The work may contain a
number of items. Normally all requisite materials required for the execution of work
may require to be supplied by the executing contractor. The estimates may be
prepared preferably based on ‘Approved Schedule of rates’ of CPWD plus or minus
applicable percentage as per the cost index. In case, the above rates are not covered /
available in CPWD schedule then the same may be prepared, based on cost of
materials, equipment, machinery, labour and overhead/profit (limited to 15%)
involved in the item based, on local market conditions or CPWD’s standard analysis of
rates.

Cost Index:
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 i) The Cost Index shall be calculated as per the guidelines issued by the Department of
Public Enterprises (DPE) for Public Sector Undertakings as per the format prescribed by
them or available with CPWD/PWD from time to time.
ii) The Cost Index computed above gives a certain weightage to elements like cement,
steel, labour and bricks etc. and accordingly the Cost Index is calculated with reference
to CPWD Schedule of Rates which is inclusive of free issue of materials.
5.5.2 Mechanical/Instrumentation etc.
In respect of Mechanical/ Instrumentation works, normally the Company supplies
most of the materials and the contract is generally a labour contract. The estimates for
such works shall be worked out as follows:

The estimated rates for respective items shall be derived by taking into consideration,
the actual labour cost involved, time for execution and cost for materials consumed.
15% extra cost shall be added towards overhead and profit to arrive at the final
estimated rate of item. In case, there is no Standard Schedule of Rates for similar
items, the division initiating the proposal should prepare the estimate in consultation
with Finance department.

5.5.3 Outsourcing of Operational Works:

The proposal of outsourcing of operational work shall be initiated by the concerned
operating division, taking into consideration the involvement of actual labour cost,
Time and Resources required for executing the job in a successful and time bound
manner, as well as the market survey results.
5.6 For Civil / Electrical / Horticulture Work’s Execution:
For Civil work during the course of execution, the deviation due to excess in quantities,
extra items or substitution of items can be allowed only upto 10% and require
approval of competent authority for releasing payment.
5.7 When there is a likelihood of delay in making the revised estimate and it is anticipated
that the actual cost is likely to exceed more than permissible limit of 10% than the
originally sanctioned estimate, a report should be prepared and submitted to the
competent authority, well in advance before submission of the revised estimate.
5.8 The rates for the extra or substitute item(s) shall be worked out based on the
prevailing market rate(s) during the time of the execution of the allotted work.
5.9 For the substitute items, the rate of the proposed original item will be adjusted as per
the difference of market rate of the substituted item(s) and proposed original rate of
the item(s).

CHAPTER-VI

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6.0 TENDER DOCUMENT:

6.1 A detailed estimate showing the Quantities, Rates and Amount of the various items of
work along with the specifications to be adopted should be prepared, before any
tender is invited and sent for Administrative approval/sanction.
6.2 All notices for inviting tenders (NIT) should be in a standard format comprehensively
covering all the aspects related to the work-contracts. The record of publications/issue
of Tenders should also be properly maintained.
6.3 The Tender papers are very important documents on which, invitation of tender and
subsequent agreement with the contractor are based. It is, therefore, essential that
each page and the correction slips and modifications made in the Tender papers are
properly numbered. This forms an integral part of the contract and therefore, it should
be clear, specific and comprehensive. It should be ensured that the Tender document
is complete and clear in all respects and consist of the NIT, Scope of work, GCC, SCC,
Technical specifications, Bill of quantities, Drawings, Maps, Safety regulations (if any),
the labour health and Environmental regulations etc. the MECL’s responsibility, if any,
should also be clearly defined.
6.4 Every NIT should be so framed as to place beyond all reasonable doubts; all the
matters upon which, parties have to agree and the matters to be agreed upon should
be clearly and specifically stated in the tender. “Pre-qualification criteria, Performance
criteria and Evaluation criteria” shall be given in clear and un-ambiguous terms in the
bid documents.
6.5 Measures to be adopted in the event of breach of contract by either party of the
contract and method of settling disputes and termination of the contract shall conform
to the guidelines given in the approved General Conditions of Contract.
6.6 Time of completion is the essence of any contract. The same must be clearly spelt out
in the NIT. It must be clearly indicated about penalties chargeable on the contractor
for non-fulfillment of contractual obligations within the stipulated time, which is spelt
out in detail in the GCC.
6.7 The designation and address of the officer to whom the tender is to be submitted is to
be clearly indicated in NIT. The place, date and time of receipt of tender should be
clearly mentioned in NIT.
6.8 For ensuring a fair competition, all bidders shall be required to give a declaration giving
the names of other firms/agencies/partnership firms/wholly owned or partly owned
subsidiary etc. including financial/professional stakes of the firm. Also give a certificate
indicating that any such firm/ agency is also participating simultaneously in the subject
tender.
6.9 NIT should clearly indicate time given for mobilization of resources to the work site,
handing over of site for execution, completion period etc.

CHAPTER-VII
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7.0 TENDER PUBLICATIONS:

7.1 To the extent possible, Tenders may be invited through Open Advertisement/ e-
Tender. However, looking at the nature of the work and responses received in the past
against press advertisements for different tenders, Limited tendering method may also
be adopted as per DoP. However, in case of Open Tender, notices with complete
documents in a downloadable form are to be uploaded on the Company’s website for
the purpose of transparency and for wide circulation.
7.2 The following time limits between the dates of calling tenders (i.e. Notice inviting
Tender) and the dates of opening of tenders may be followed:
Depending upon the urgency/circumstances, the time period for the Tender can be
considered accordingly with the approval of Competent Authority as per DoP.

7.3 Sl. No. Type of tender Time period Estimated Value of work
1 Open tender 30 days As per DoP
2 Limited tender 21 days As per DoP
3 Limited tender 10 days Values of work from Rs.50000 & upto Rs.1 lakh
4 Quotation 7 days Values of the work less than Rs.50000
5 Spot Quotation Same day Values of the work less thanRs.50000 (work
under critical circumstances or situation such
as breakdown of machineries / system or
essential service or work which brooks no
delay. Spot quotation may be collected and
work may be awarded immediately on
obtaining FC).

Short tender notice can be called for urgently required works with time limit for submission
of tender within 7 days with due approval of the competent authority.
7.4 Notwithstanding the provisions of the paragraphs 7.1 to 7.3 here above, the
competent authority as per DoP, in consultation with associated finance may accord
sanction for processing of single tender, collected by way of “Open/ Limited short
Tender Notice” method or even dispense with the tendering procedure itself, as per
delegation of power (DoP) under the circumstances warranting :
a) The company’s interest warrants such a course.
b) It is neither practicable nor advantageous to adopt the normal prescribed procedure of
calling and processing of the Tenders.
7.5 Extension of tender: Normally minimum of three bids are desirable for processing of
the Tender. In case, non receipt of a minimum three bids against a particular tender,
then in order to facilitate wider participation from eligible bidders, the opening of
tender may be extended one or two times with the approval of the Competent
Authority depending on nature and urgency of the work. The intimation regarding
extension should be given to the bidders who have already submitted their bids. The
publication of extension of tender should be done through which initial

11
 advertisements were called and simultaneously should also be uploaded on the
MECL’s website & e-procurement site.

In case of poor response in receipt of bids, even after extension of tender, then the
Competent Authority may take decision regarding opening of the tender as per DoP
and accord approval.

However, participation of two bids may be considered for processing of the tender
with due reasoning and with the approval of competent authority.

7.6 AWARD OF WORK WITHOUT CALL OF TENDER AS PER DoP:

Work may be awarded, to contractors, without call of tenders, when the interest of
work so demands, under following conditions:

a) Where the work is to be executed expeditiously.

b) Any delay may result in escalation of envisaged cost as well as dilution in the utility of
the executed jobs/services.
c) The utility of the executed jobs on urgent basis shall be recorded and approval may be
obtained from the Competent Authority as per Delegation of Power.
7.7 EXEMPTION OF EMD & TENDER FEE:
Firms registered with DGS&D/NSIC (For the product for which they are registered) are
exempted from payment of EMD. For availing this exemption, firm should submit
physical copy of valid DGS&D or NSIC certificate. Scanned copies of the certificates
should be uploaded while submitting the tender.
Public procurement policy for Micro and Small Enterprises (MSEs) as per guideline
shall be applicable. For details visit website: www.msme.gov.in
Micro and small enterprise shall be exempted from payment of Earnest money who
registered with any of the following agencies:-
a) District Industries Centers (DIC)
b) Khadi and Village Industries Commission (KVIC)
c) Khadi and Village Industries Board
d) Coir Board
e) National Small Industries Corporation (NSIC)
f) Directorate of Handicraft and Handloom
g) Any other body specified by Ministry of MSME.
The Micro and small enterprise registered with said above agencies (for the product
for which they are registered) and others for which specific exemption for the payment
of EMD has been granted by MECL.
The Micro and small enterprise registered with said above agencies and the firms
registered with DGS&D/NSIC shall also be exempted from payment of tender fee. For
exemption of EMD and tender fee in case of Micro and small enterprise and DGS&D/
NSIC registered firms they have to be registered for the particular trade / item for
which the tender is relevant. The valid certificate of registration indicating the product
12
 for which they are registered with MSME or DGS&D/NSIC as the case may be are
required to be submitted with the bid.
To avail exemption of EMD and tender fee, the MSME registered with District
Industries Centers must submit the “Acknowledgement of Entrepreneur
Memorandum” along with filled EM part -II proforma duly signed by DIC Authority and
firms registered with National Small Industries Corporation (NSIC) must submit the
valid registration certificate along with the bid.
7.8 Power to waive tender fee & EMD: Power to waive tender fee & EMD for firms other
than, MSME and registered with DGS&D/NSIC is vested with CMD. In a particular
tender, the participant’s tender fees & EMD may be exempted as a special case with
the approval of CMD.
7.9 TENDER BY MICRO & SMALL ENTERPRISES:
In tender participating, Micro and Small Enterprise quoting price within price band of
L-1 + 15% shall be allowed to supply a portion of requirement by bringing down their
price to L1 price in a situation where L1 price is from someone other than Micro and
Small Enterprise and such Micro and small enterprise shall be allowed to supply upto
20% of total tendered value. In case more than one such Micro and small enterprise;
the supply shall be shared proportionately. (Against 20% of tendered value)
Tender fee and EMD submitted in the form DD or DGS&D/NSIC Registration Certificate
etc. should be valid at the time of scheduled date or extended date of opening of Part-I
tender.
The MSEs, who have applied for registration or renewal of registration with any of
above agencies/ bodies, but not obtained the valid certificate as on close date of
tender, are not eligible for exemption preference.
MECL will not be responsible for any kind of delay in submission of Tender Fee & EMD
or DGS&D/NSIC/Acknowledge general of Memorandum (EM part –II) certificate or for
any mistakes or any incorrectness in the DDs or certificates. As such, offer of valid
tender fee &EMD in all respect, shall only be considered.
MSME firms are to upload the “Acknowledgement of Entrepreneur Memorandum”
along with filled EM part –II proforma duly signed by DIC Authority in the said cover in
place of EMD and tender fee. Firms should submit physical copy of said certificate in
sealed cover in place of EMD & Tender Fee.

CHAPTER-VIII

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8.0 EMPANELMENT OF CONTRACTOR:

8.1 The achievement of the project schedule and cost objectives of an enterprise is to a
great extent dependent on the performance of contractors or agencies, to which the
works are entrusted, depending on their capability, resourcefulness, financial and
technical soundness etc. However, the problem of finding efficient and able
contractors, who can execute works on reasonable terms, has been one of the main
difficulties faced by the companies. In this context to obviate the difficulties
experienced in finding suitable agencies for execution of work, list of different
categories of works and classes of contractors is to be prepared for empanelment of
contractors.
The empanelment of contractors is principally based on different category of works
that are required to be carried out on contract basis (to be outsourced) by different
divisions i.e. Exploration, Drilling, Business Development & Commercial, Mining,
Finance, P&A Division etc. and monetary limits for such works. Therefore, the
concerned divisions have to identify different categories of the works required to be
outsourced pertaining to their division and monetary limits for such works for
empanelment of contractors.
8.2 The respective division must have a comprehensive list of contractors to whom
enquiries can be sent in case of Limited Tender Enquiry (LTEs). As mentioned at 8.1 the
empanelment may be principally based on certain monetary limits as well as category
of work. The Procurement / Stores Division shall call for applications on regular basis
(every year in the month of January) through usual enquiry/advertisements in
newspapers/MECL website etc. for empanelment of such contractors for various works
the list of which may be compiled by respective division.
8.3 For Limited Tender of Civil, Electrical & Horticulture related work contractor(s) is
enlisted with Central and State Government Departments (CPWD, PWD, MES, Railways
etc.) and Central and State Government PSUs, due recognition is to be given for such
contractor(s).
8.4 Empanelment of contractors may be done according to certain categories of work. The
following broad categories may be considered for this purpose:
a) Exploration works
b) Business Development & Commercial Division related works
c) Drilling work
d) Mining Work
e) Transportation
f) Workshop related works.
8.5 ASSESSMENT OF THE CONTRACTORS TO BE DONE ON THE FOLLOWING BASIS FOR
EMPANELMENT:
1. Financial soundness: In support of financial soundness, the contractor has to submit
yearly Appraisal from their Banker, Audited Annual Accounts and other documentary
evidences as applicable. Those who fail to submit any of the above documents without

14
 any justifiable reasons or non-submission thereof should not normally be considered
for registration.
2. Technical competence: Firm should have experience of similar nature of work for –
 Single work valuing not less than 80% of estimated cost during last three years.
 Two works each valuing not less than 50% of estimated cost in last three years.
 Three works each valuing not less than 40% of cost in last three years.
3. Manpower: Certain jobs, depending on their magnitude, may warrant employment of
suitable, experienced and qualified technical personnel by the contractor. In all such
cases, before empaneling contractors, it may be desirable to see whether the
contractors have on their rolls the required number of such technical personnel. In
order to verify this, the contractors may be required to submit along-with their
application for empanelment, the full details about their organization, list of key
persons, and other manpower details.
4. Machineries Tools and Plant: It is essential that the contractors desiring empanelment
have sufficient equipments, machineries, tools and plants, appliances, implements etc.
of their own. The firm should be capable of executing the categories of works for
which they desire empanelment. The contractors may submit along-with the
application, full details of such plants and machineries (make, model, capacity and year
of purchase) and tools at their possession.
5. Documentary Evidence & Other Details of Tenderer:
i. Copies of documents in proof of legal status, IT returns, ownership of equipment,
Registration with statutory authorities.
ii. Bidder details like Bank A/C number & name (details for RTGS) which are to be
provided along with Tender document.
8.6 Application form for empanelment of Contractors: For the purpose of empanelment,
the contractors/agencies/firms etc. may be required to furnish complete details for
empanelment. A standard Performa may be used for this purpose. All those desiring
empanelment may be allowed to apply only in such prescribed application forms.
8.7 Review of contractor’s performance: While maintaining a list of registered
contractors, which is one of the important requirement of an efficient ‘Contract
System’ as enumerated above, the performance of the contractors should be reviewed
periodically depending upon the tenure of the contract and suitable remarks made in
the Contractor’s profile. As a result of such review, weeding out of non- performing
Contractors, who do not satisfy the performance requirements of the company, is
activated. Here ‘weeding out’ may mean either ‘Removal’ or ‘Suspension of Business’
or ‘Blacklisting’ etc. of unsuitable agencies depending upon the extent and nature of
unsatisfactory performances.
The following details may be included in each Tender:
The bidder would be required to give a declaration that; they have not been banned or
black-listed by any Government or Quasi-Government agencies or PSUs. If the bidder
does not give this declaration, the bid will be rejected as non-responsive. The

15
 application for empanelment should contain a clause that, mere empanelment of an
agency does not bestow the right for automatic inclusion in the bidders list for any
particular tender.
8.8 Exemption clause: Irrespective of empanelment of contractors, on need basis any
tender can be invited as open/ e-tender as per requirement with the approval of CMD.

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 CHAPTER-IX

9.0 RECEIPT OF TENDERS AND THEIR ACCEPTANCE:

The Tender/Technical bids of only those Firms will be accepted or considered which
may be submitted with appropriate Tender Fees & EMD as per NIT. On receipt of
Tender Fees by way of DD as per NIT, drawn in favour of “Mineral Exploration
Corporation Limited”, Payable at Nagpur, without any overwriting or corrections or
errors and receipt of EMD by way of DD as above or as per the format provided, are to
be considered.
9.1 The following procedure shall be followed in connection with the receipt and opening
of tenders and their acceptance.
1. While tender enquiries can be uploaded on CPP Portal or sent through Post/Fax/e-
mail, the acceptable mode of receipt is through Post or deposit in the prescribed
tender-box only, except where enquiry has been issued to a single vendor in which
FAX mode is also acceptable. However, FAX offers received in case of overseas
vendors may be considered in exceptional cases followed by post.
2. In case of two parts tendering the Technical bid i.e. (Part-I) will be opened first by
the committee consisting of the representatives of concerned divisions and
Finance Division. However, price bids of only technically suitable participants will
be opened after approval of Competent Authority. All the tenders received in
tender box shall be serially numbered and signed in all pages by the nominated
members of such committee. Any over writing or corrections on any page shall be
encircled and initialed by the members with date.
3. Tenderers or their representative wishing to be present at the time of opening of
the tender may be permitted to do so.
4. Once the tender/offer has been opened, no alterations or modifications in the bids
shall be allowed.
5. Members opening the tenders should invariably put date and initial on each page
of the tender documents in case of manual tender irrespective of the fact,
whether it contain or do not contain any corrections or overwriting etc.
6. The numbers of such corrections and overwriting (if any) may be mentioned at the
end of each page of the tender paper with signature and date.
7. In case of single part tender the members concerned should see that the
contractors quote the rates in words to avoid change or tempering in any rates.
When the contractors have omitted the quoted rates in figure or in words, the
members opening the tenders should record such omissions on all such pages of
the offer.
8. Any ambiguity in rates quoted by the Tenderer in words or in figures must be
clearly indicated.

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9.2 Evaluation of Tender :
1. Single Part Tender: In case of single part tender involving more than one bidder, no
technical/commercial deviation which may have price impact shall be allowed. In
the event of any bidder taking such deviation, their offer shall be liable for
rejection. The evaluation should be done based on conditions given in the tender
without asking for clarification, which may have price impact. The clarification if
required can be asked provided it does not have any impact on the price or the
terms of the tender.
2. Two Part Tender:
a) Techno Commercial evaluation shall be done by the authorized Committee. A
separate Technical Committee may be constituted by the Competent Authority
for Technical Evaluation wherever necessary.
b) During evaluation, if any technical or commercial clarifications are required the
same shall be obtained through correspondence in case of manual tender or
through CPP Portal in case of e-tenders. If the firm fails to respond/submit the
requisite clarification so as to reach this office or upload on CPP Portal in
stipulated date & time shall be evaluated based on available information/ data
already provided with tenderers through a Division who has floated tender.
The proposal for acceptance of Techno Commercial bids shall be
recommended by the Committee and approved by the Competent Authority
before opening of price bids. Price bids of only technically acceptable parties
will be opened.
3. After opening of the price bids a comparative statement with pre-fixed
technical/financial loading, if any, will be prepared by the concerned Division. The
persons preparing comparative statement shall sign on the comparative statement
as token of their having prepared/checked the correctness of comparative
statement.
9.3 During checking, if it is found that there is difference between the rates given by the
contractor in words/figures or in the amount worked out by the firm, the following
procedure is to be followed:
1. When there is difference between the rates in figures and words, the rates, which
correspond to the amounts worked out by the contractor, shall be taken as
correct.
2. When the rates quoted by the tenderer in figures and words tally but the net
amount is incorrect, the rate quoted by the tenderer shall be taken as correct.
3. When it is not possible to ascertain the correct rate by either of above methods,
the rate quoted in words shall be taken as correct.
9.4 Compositions of the tender committee: The tender committee shall comprise of
representatives of concerned operating division, finance division and/ or any other
related person. The Members shall be nominated by the respective Divisional Heads. In
case of civil works, member from Finance and Civil shall form the Committee.

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9.5 Functions of the Tender Committee:
1. To scrutinize all the offers received against the tender.
2. Scrutiny of tender will include complete technical and financial evaluation on the
basis of which the tender committee will recommend the acceptance of the
lowest acceptable tender.
3. The tender committee should conduct the techno-commercial evaluation. The
anticipated financial implications arising out due to any technical changes should
also be asked from all the bidders by a specific cut-off date. Record note has to be
prepared on the conclusion of all such correspondence being made with the
concerned party.
4. In line with CVC guideline, the technically acceptable lowest tender, will be
accepted with or without negotiation.
9.6 Method of selection:
The selection of the tenders can only be done by the methods indicated in the NIT. The
various method of selection is:
1. Quality and cost based selection:
a) It is also known as least cost selection method and under normal circumstances this
method shall be used.
b) Under this method offers are invited in two envelops.
c) Technical offers are evaluated and those meeting qualifying criteria are considered
technically qualified.
d) Financial offers or Price Bids of technically qualified offers are opened and
evaluated.
e) The least cost offer is marked as L-1 and next higher is marked as L-2, L-3 or so on.
f) Offer with lowest price L-1 in totality /or in part be selected for award of contract
after approval of Competent Authority.
g) The evaluation methodology shall be disclosed in the tender documents clearly.
2. Combined quality cum cost based selection:
a) This method takes into consideration the technical competence over cost. The
method to be followed should be clearly mentioned in NIT.
b) Relative weight to be given to superior technical capability and cost shall be
determined depending on nature of assignment.
c) Relative weight need to be defined in the NIT.
d) It shall be used only for highly technical projects where weightage needs to be
given to the higher technical standards over price while finalizing the tender.
9.7 Negotiation:
1. In case where more than one source is required, prior approval of the competent
authority is to be taken before issue of NIT and there has to be clear stipulation in
the NIT about the division of the work-order so that the bidders are aware of the
same at the time of bidding itself.

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 2. Wherever, it is felt necessary for smooth and timely execution of work for which
two or more contractors are required, in such case negotiation required to be
conducted as per CVC guidelines.
3. As post tender negotiation could often be a source of corruption, it is directed that
there should be no post tender negotiation with L-I, except in certain exceptional
situations. Such exceptional situations would include procurement of proprietary
items, items with limited source of supply and items where there is suspicion of a
cartel formation etc. The justification and details of such of negotiation should be
duly recorded and documented without any loss of time.
In case where a decision is taken to go for re-tendering due to the unreasonableness of
the quoted rates, but the requirements are urgent and a re-tender of the entire
requirement would delay for the execution of the work, thus jeopardizing the essential
operation, maintenance and safety, negotiation would be permitted with L-1 bidder(s).

It is reiterated that in case L-1 bidder backs out, there should be a re-tender.
9.8 Award of work:
1. On receipt of recommendations from the Tender committee through concerned
division, the competent authority shall approve the award of the work as per DoP
with concurrence of finance.
2. It may be clearly stated in the bid that, letter of intent is for acceptance of offer and
the tenderer should communicate the acceptance of the same within 15 days of
issue of the LOI (Letter of Intent)/ Work Order failing which it will be deemed to
have been accepted by the tenderer.
3. After deciding about the award of the work, the concerned division shall issue a
letter of intent/ work order and thereafter, the party in whose favour the work has
been awarded shall have to enter into an agreement in writing on non-judicial
stamp paper as laid down in the GCC. The agreement normally consists of NIT, GCC,
SCC, Scope of work, drawings (if any) etc. The documents such as, correspondences,
minutes of meeting, (if held with the party) etc. shall also be form the part of the
contract- agreement as required.
4. Top priority should be given to decide the award of the work after receipt of tenders
preferably before expiry of validity period. The valid and logical reasons for not
being able to finalize the tender within the validity period should be clearly spelt out
while seeking approval for extension of validity period from competent authority.
5. Price/purchase preference for public enterprises in competition with private sectors
in the matter of award of works shall be subject to Government rules and guidelines
from time to time.
9.9 In respect of maintenance work(s) required to be carried out of Plant and Machineries
and in which a huge quantum of items are involved and which may vary to a large
extent, in such case a minimum quantum of items and maximum limit of items may be
fixed to select L-1 tenderer and such contract may be operated on unit item rate basis,
within the limit of the administrative approval.
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9.10 In case where the contractor is not prepared to do the work at the agreed rate or
contracted rate, the work can be done through any other agency at the risk and cost of
original contractor after giving him due notice. The HOD/Officer-in-Charge of the
executing department shall issue necessary notice in writing under registered letters
and give sufficient chance to the contractor before taking recourse to risk and cost. All
legal/contract formalities should be followed in consultation with the concerned
division and Legal department.
9.11 The tender for works shall remain valid for acceptance for a period of four months
from the date of opening of the tender as stipulated in GCC; however other
stipulations of the GCC in this regard shall also prevail.
9.12 Repeat Order: Repeat Orders are those orders, which are placed on the parties at the
same terms and conditions of the previous order. Repeat Orders should not be
adopted under normal conditions. Repeat Orders can be considered, only if there is no
downward trend in the prices. Repeat Order can be placed within six months of the
completion of original order and only if the original order has been placed through
competitive tendering. For specialized contract, which has been awarded from single
source, repeat orders can be placed in exceptional cases. However, the total value
under Repeat Order shall not exceed 50% of the original order value. As per DoP, it
should be decided based on the total value considering original and repeat order
proposed.
However the circulars issued time to time by vigilance should be followed while issuing
Repeat Order.
9.13 RENEWAL/EXTENSION OF THE ANNUAL MAINTANANCE CONTRACT (AMC): The
original AMC can be extended and renewed for further period of 12 months if found
satisfactorily on the same terms and conditions subject to the condition that there is
no downward trend of the costs. However, AMC renewal will be subject to
concurrence of the finance division, on the receipt of consent-letter from the
contractor.
9.14 TENDERS FOR OUTSOURCING OF WORKS (e-TENDER):

Tenders for outsourcings works are being done for various works, as follows:
1. Drilling (Core Drilling & RC Drilling).
2. Baseline Environmental Studies.
3. Geophysical work: Gravity Survey & Magnetic Survey.
4. Survey works : Total Station & DGPS
5. Hiring of Taxies.
6. Other items related to laboratory works, exhibitions etc.
7. Civil Works, Electrical Works, and Horticulture Works etc.

The e-tendering process has almost in practice. Sometimes tendering is being done
manually also, where tendering process is to be carried out at other places out of
Nagpur. The e-tenders are done through Central Public Procurement Portal (CPPP-NIC)
maintained and governed by NIC (National Informatics Centre of Government of India).

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 1. Apart from Tendering process, empanelment of Agencies for various works such
as drilling, survey, sampling work, Civil Works, Electrical Works, and Horticulture
Works etc. is in practice.

The nature of tenders are open tender (Two Bid system i.e. Technical bid & Price Bid),
Limited Tender, short Tender etc., as per requirement and urgency of the indenting
Division.
The outsourcing of drilling work is for various minerals such as Coal, Iron Ore,
Limestone, Manganese etc.
The flow chart of Tendering process aligned with process of e-tender is given below. ‘
Note: The flow chart of e-Tendering process gives a broad idea about the e-Tender
process. However, all the concerned who are dealing with Tender are required to read
“Works Manual” to fully understand the entire procedures and also refer “Revised
DoP-2016” for putting proposal to right Competent Authority.

9.15 Flow chart of e-Tendering works:

Proposal from Indenting Division: Indicating place of work, item(s) of work, quantum,
scope of work, time schedule, terms and conditions specific for the job/work and any
other details/requirement relevant for the work.

Preparation of comprehensive note (proposal) for outsourcing the job covering all the
above mentioned items. Deciding about nature of Tender i.e. whether to go for Open
Tender, Limited Tender, Short Tender Notice, award of work on nomination basis,
empanelment of agencies etc.

Preparation of estimated cost : Normal procedure followed is to consider lowest

cost/rate at which similar work is awarded by MECL presently of in recent past,
through tender process. The cost so considered is appropriately escalated or reduced
looking into its applicability factor etc. The market rates for similar work are also
studied to keep the escalated cost/rate reasonable.

Routing the comprehensive proposal for floating of Tender through indenting/related

Divisions, obtaining financial concurrence from Finance division and putting up to the
Competent Authority for approval.
The Competent Authority shall be decided based upon the estimated value of the
work/ financial implication and decided by “Delegation of Powers” as approved by the
competent authority like CMD or D (T) or GM’s or DGM’s or HOD’s depending upon
the financial implication involved in the tender work.

On approval of Competent Authority action will be taken for floating/publication of

tender through press by release/issue of ‘Notice Inviting Tender’ (NIT), if it is a case of
Open/Global Tender or Short Tender. In case of Limited Tenders, the tender document
shall be sent to known/reputed firms/agencies for participation in the tender. The
minimum firms/agencies for sending Limited Tender Document depends upon the
availability of reputed firms.

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In respect of e-Tender, simultaneously or immediately after release/ issue of NIT to
press for publication, the Tender Document will be uploaded on CCP Portal of NIC i.e.
https://eprocure.gov.in/eprocure/app (www.eprocure.gov.in) as well as MECL
website viz. www.mecl.gov.in. In the NIT and in Tender Document, the time
schedules for following items should be clearly mentioned.

Period of down loading of Tender online :

Last date & time for submission of bid online :
Last date for receipt of Tender Fee and EMD in :
physical form or by post/courier.
Date of opening of Technical Bid (Part-I) of the Tender:

For participation in Tender through CPP Portal, the bidders are required to have Digital
Signature Certificate (DSC) issued by agency authorised by Controller of Certifying
Authority (CCA), Government of India.

To facilitate the bidders to understand the procedure and techniques involved in

participation of Tender through CPP Portal, necessary instruction are given under the
title “Instruction to Bidders” in the Tender Document, itself regarding procedure to be
followed at various stages of Tender processing.

Corrigendum to tender : It shall be clearly mentioned in the NIT that “Corrigendum” if

any, shall be uploaded on CPP Portal and MECL websites, only and no separate
advertisement to that effect shall be given in newspaper or other media. Therefore,
bidders are required to visit CPP Portal and MECL website, regularly after participation
in Tender.

Time Schedule for opening of Technical Bids (Part-I) of Tender: The time schedule for
opening of Technical Bids (Part-I) of the Tender shall be normally minimum 30 days
from the date of publication of Tender/uploading of Tender on CPP Portal. However, in
case of urgency, the same shall be done at a shorter time period, as appropriate, with
the approval of Competent Authority who has approved the proposal for floating of
Tender.

Opening of Technical Bids (Part-I) of the Tender : Before opening of Technical Bids
(Part-I), the Committee members for opening and evaluation of Technical Bids are
nominated from operating Divisions (Indenting Division), Finance Division and BD &
Commercial or Civil Division. There shall be one member each from above said
Divisions, nominated by respective Head of the Division. Out of the 4 or 3 members of
the committee, minimum two persons should have the Digital Signature Certificate
(DSC), for the access to CPP Portal. For nomination of Committee Members, the
tender file should be sent to respective Division in advance to facilitate nomination.
The Committee members will meet on the stipulated closing date and time for
submission of tenders online by the bidders and check the CPP Portal for count of
participants. Normally, if three or more bids are received, the Committee will proceed
for opening of Technical Bids. But, if there is less than 3 numbers of bids, the

23
Committee will consult HOD (BD&C)/ HoD (Civil) for further instructions. In case of
receipt of 2 bids, HOD (BD&C) / HoD (Civil) will consult operating divisions and in case
of very urgency may proceed with opening of the technical bids with approval of
competent Authority, who has approved floating of tender. In case of receipt of only
one bid or no bids normally extension of time will be given upto a period, as felt
appropriate, considering urgency of work for submission of bids, with approval of
competent Authority, who has approved floating of tender. The “Corrigendum” will be
uploaded on CPP Portal and MECL website, indicating extended date and time for
submission of bids.
Before opening of the Technical Bids, the Committee will ensure the receipt of Tender
Fee and EMD in physical form in proper acceptable form, from all the participant
bidders. The Committee will open and download the Technical Bids of only those
bidders, who have submitted Tender Fee and EMD (DD/BG) in proper form, as
specified in the tender.
The Committee, will submit report on opening of Technical Bids and handover Tender
fee and EMD received from all the bidders to Tendering Division for sending the same
to Finance Division.
Thereafter, with approval of concerned HOD, the member nominated for the purpose
will upload status of Technical Bids opening on CPP Portal.

Preliminary Evaluation of Technical Bids: The Technical Bids of the bidders who have
submitted Tender Fee and EMD properly are downloaded from the CPP Portal and
properly filed in separate file in respect of each bid. All the papers/documents are
properly arranged and numbered for easy reference while filing.
The checklist document is filled up by the committee to ensure that all the required
documents are properly received, as per terms of Tender.
The Committee then carefully examines the documents submitted by each bidder and
ascertains that all the documents as specified in the tender document are received and
information provided/contained in it is in order.
If a bidder provides/submits all the documents documentary evidence etc. in full and
in proper form and fulfils the eligibility criteria in all respects, such bid will be
considered as technically suitable.
However, some times, the bidder may not submit all the documents and provide full
information, as specified in tender document, where it would not be possible to
ascertain its technical suitability. In such cases, as a matter of practise, one chance in
given to bidders to submit the documents which are short and offer clarification on
points/issues which are not clear and explicit in the bid. The process is called “Calling
for shortfall Documents”

Call for shortfall Documents : The Committee submits a report to the HDO (BD&C) /
HoD (Civil) stating their observations in respect of each Technical Bids received against
the Tender and indicates the list of documents/documentary proof and clarification on
any issues required to be obtained from the bidder(s). On approval of HOD (BD&C) /
HoD (Civil), the statement of “Shortfall Documents” will be uploaded on CPP Portal in
respect of only those bidders from whom the shortfall documents are necessary. The
scheduled date and time will be indicated in CPP Portal within which the bidders have
to submit/upload the shortfall documents. It shall be the sole responsibility of bidders

24
to take proper note of the scheduled date and time and submit/upload shortfall
documents, within the stipulated time.

Final Evaluation of Technical Bids: The Committee, on the scheduled date of receipt of
shortfall documents, after closing of scheduled time will open the CPP Portal, check for
shortfall documents and down load shortfall documents in respect of all bidders who
have submitted it.
The Committee, thereafter will critically and carefully examine the entire document
submitted by the bidders including shortfall documents and submit report on outcome
of evaluation of bids and indicate the bidders/firms/agencies who have been found
technically suitable and also the bidders who have not been considered as technically
suitable.
The Technical Bids evaluation report is signed by all the members of the committee
with date and will be submitted to HOD (BD&C) / HoD (Civil). In the report, the
Committee shall clearly indicate/recommend the name of the firm which are
technically suitable and also name of firm(s) which are technically not suitable.

Approval of Technical suitability of bids and permission for opening of Price Bids:

When value of work is less than Rs.50.00 lakhs: When the value of work is less than
Rs.50.00 lakhs, based on the final evaluation report/recommendation of the Technical
Bids opening and Evaluation Committee, the proposal for approval for Technical
suitability of technically qualified firms vis-a-vis permission for opening of their price
bids is put up to competent Authority, as the case may be, through Head of Indenting
Division and Head of Finance Divisions. However in case of ‘Single Tender’ i.e. single
bid qualifying as Technically suitable, the approval of MECL Board would be required,
if award value of work is more than Rs.one crore including Service Tax. If it is less than
Rs. one crore, the approving Authority will be as per Revised DoP of MECL.

For value of work more than Rs.50.00 lakhs : The Senior Tender Committee consisting
Head of divisions from Indenting/Operating Division(s), Finance and BD & Commercial
Division / Civil, will examine the final evaluation report submitted by the Technical Bid
Opening and \Evaluation committee along with proceedings and documents placed in
file. After careful and comprehensive examination of report and documents, the Sr.
Tender Committee, on satisfaction in all respects, will agree with observations of the
committee and recommends the proposal for accepting technical suitability of firms
and according permission for opening price bids. The Competent Authority for
accepting Technical suitability of firm is Director (Technical). For opening of Price Bids,
recommendation of D (T), concurrence of D (F) and permission/approval of CMD would
be required.

Signing of undertaking as per CVC guidelines: For submission of the technical

suitability report of the firms, the members of Sr. Tender Committee is required to give
an undertaking as per the standard format indicating that the individual member in the
committee is not having any personal interest or relation with the participating firms.

25
 Opening of Price Bids: On approval of Competent Authority, the date and time of
opening of Price Bids will be notified on CPP Portal. The notification will indicate the
names of bidders who are technically qualified and also the names of firms which are
technically rejected. The Price Bids opening date will be normally minimum one day
after approval of competent Authority for opening of Price Bids.
Before opening of Price Bids, the members will be drawn from Indenting/ Operating
Division, Finance Division and BD &Commercial / Civil Division for opening of Price
Bids. The respective Head of Division will nominate the member.
The Price Bids opening Committee will open the CPP Portal on schedule date and time
and open the Price Bid (Part-II) of the tender of the technically qualified bidders. After
opening, the Committee members will examine the correctness of the prices indicated
by each firms as per Price Bid format and determine the L-1 bidder after evaluation of
prices quoted by the firms. The Committee, will submit report on Price Bids opening
indicating the status/rank of each bidder based on the price quoted by them and also
indicate the L-1 price with respect to estimated price i.e. whether lower or higher with
percentage.

9.16 Accepting suitability of Price Bids and putting proposal for approval of competent
Authority for award of work.

When value of work is less than Rs.50.00 lakhs: The Price Bid opening Committee will
examine the suitability of L-1 price and offer its recommendation for award/non-award
of work with proper justification/ reasoning. The Committee will submit the Price Bid
opening and Price suitability report to this effect. Based on the recommendation of the
Committee, the file will be put up to Competent Authority through Head of Indenting/
Operating Division and Finance Division for final approval for award of work

When the value of work is more than Rs.50.00 lakhs: The Price Bid committee will
open the Price Bids of technically qualified bidders and place the status report of Price
Bids received in the order of ranking from L-1, L-2, L-3 etc. They will also indicate the
rates/prices offered by different bidders are varying with reference to estimated
rate(s). The report will be submitted to HOD (BD&C) / HoD (Civil).
After receiving the report from Price Bid opening Committee, concerned HOD will call
the meeting of Sr. Tender Committee members under Chairmanship of Director
(Technical) for deliberation on Price Bid and do determine the suitability of Price Bid of
L-1 offer. If the L-1 offer is within the estimated rate/price in acceptable range then,
the Committee will recommend the L-1 offer for acceptance and approval of
Competent Authority. In case of the award value of work is more than Rs. five crore,
then the approving authority will be MECL Board. In case of the award value of work is
less than Rs. five crore, then the accepting and approving authority shall be as per
Delegation of Powers (DoP).

Price Negotiation with L-1 firm: In case, the rate quoted by L-1 bidder/firm is much
higher than the estimated rate and is not in acceptable range, then the Committee
recommends the case for price negotiation with L-1 firm with the approval of
competent Authority. The observance of CVC guidelines is essential while
recommending the case for price negotiation. In case the value of work is less than

26
Rs.50.00 lakhs, the Sr. Tender Committee consisting of Heads of Division from
Indenting/Operating, Finance and BD & Commercial Divisions or Price Bid opening
Committee will hold the Price Negotiation meeting with L-1 firm. When the award
value of work is more than Rs.50.00 lakhs, the price negotiation with L-1 firm will be
held by Sr. Tender Committee under the Chairmanship of Director (Technical).
After the Price Negotiation with L-1 firm, if the firm agrees to reduce the price to
reasonable and acceptable limit, the Committee will consider the same and
recommends the negotiated L-1 rate(s) for acceptance and approval of Competent
Authority for award of work. If the L-1 bidder does not agree to reduce the price, the
price negotiation will be considered as failure and may lead to cancellation of Tender.

Obtaining Financial concurrence (F.C) : After the recommendation of the Committee/

Sr. Tender Committee for award of work to L-1 firm/bidder, the proposal will be put up
to Finance Division indicating the total financial implication including Service Tax and
other taxes, if any, for execution of job through contractor. The Finance Division will
examine the proposal and accorded Financial Concurrence.

Approval for Award of work : After obtaining F.C. the proposal will be put up to
Competent Authority for approval for award of work to L-1 bidder. If CMD is the
approving authority, the proposal is moved from D(T) for recommendation, then to
D(F) for concurrence and finally to CMD for approval. If D(T)/GM’s/HOD’s down the
rank are approving authority, then after obtaining F.C. the proposal is put up to
concerned approving authority for approval for award of work.

Obtaining F.C. number : After obtaining approval of Competent Authority for award of
work to L-1 bidder, the file is sent to Finance Division to obtain F.C. number.

Uploading of Price Bid Evaluation Summary and Work Order: On approval of the
competent Authority for award of work and F.C. number , then the Price Bid evaluation
Summary of the tender is required to be uploaded on CPP Portal along with the work
order.
In case of cancellation of tender, the price bid evaluation summary is required to be
uploaded on CPP Portal along-with information on cancellation of Tender.

27
 CHAPTER-X
10.0 GENERAL TERMS & CONDITIONS AND SPECIAL CONDITIONS OF CONTRACT:
10.1 Assignment and Sub-letting: The contractor shall not assign or sub-let the contract or
any part thereof, or any benefit or interest therein or thereunder, without the prior
written consent of the Mineral Exploration Corporation Limited.
10.2 Tender fee / Earnest Money Deposit (EMD)/Security Deposit:
a) Earnest Money for Tendering should be 1% (One Percent) of estimated value
subject to a maximum of Rs 100 lakhs.
b) EMD as per NIT shall have to be deposited along with tender by Demand Draft /
pay order of any Nationalized/Scheduled Bank in favour of “Mineral Exploration
Corporation Limited” payable at Nagpur or any other method as indicated in the
Tender Document.
c) Security Deposit shall consist of two parts:
1) Performance Security: Performance Security shall be 5% of tendered/contract
value and shall be submitted within 15 days from the date of Letter of Intent
by the successful Tenderer in the form of Bank Guarantee. The Bank
Guarantee should be for the period of 90 days beyond the contract/ extension
of time period in case of time over run.
2) Retention Money/Security Deposit: Retention Money/Security Deposit shall
be deducted at 10% from running bills as per cost to cost.
The contractor’s Performance Security deposited in the form of Bank
Guarantee shall be duly discharged and returned to the Contractor after 90
days from the date of completion of work or as stipulated into SSC and the
retention money shall be refunded within 30 days from the issue of
completion certificate for other than Civil work.
For Civil work, retention money/ security deposit shall be released after
satisfactory completion of complete allotted work as per NIT’s Terms &
Conditions.
d) EMD/SD/Performance Security shall not bear any interest.
e) The EMD shall be forfeited, if
1) The bidder withdraws the Bid after Bid opening during the period of Bid
validity; or
2) If the successful Bidder fails to fulfill the following conditions within the
stipulated time.
i) Sign the Agreement ; and /or
ii) Furnish the required Performance Security/Security Deposit.
f) EMD of the unsuccessful Tenders shall become refundable. The unsuccessful
Bidder for this purpose means the Bidders who have not emerged as HIGHEST
SCORER/LOWEST BIDDER, as the case may be.
g) The EMD of the successful Bidder will be discharged when the Bidder has signed
the agreement and furnished the required performance security.

28
10.3 General Obligations: Contractor’s General Responsibilities
a) The contractors shall, subject to the provisions of the Contract, and with due care and
diligence, execute and maintain the works and provide experienced manpower having
sound knowledge of tendered work.
b) The contractor shall take full responsibility for total stability and safety of all site
operations and methods of execution of job as per the applicable laws and rules. The
Contractor shall maintain a record as specified in the tender.
c) The Contractor shall maintain the full confidentiality of all the
information/data/reports etc. as provided by the Company, both in oral and written
form as well as those of the Documents/Reports of the proposed work under the
contract. And nothing will be communicated to the Third party without written
consent of the Company failing which contract is likely to be terminated and security
deposit shall be forfeited.
10.4 Contract Agreement: The contractor shall when called upon so to do, enter into and
execute a Contract Agreement to be prepared and completed at the cost of the
Contractor, in the form annexed to the work order within fifteen days from the Letter
of Acceptance.
10.5 Work to be executed to the Satisfaction of MECL: The Contractor shall execute and
maintain the work in strict accordance with the Contract to the satisfaction of the
MECL .The contractor shall comply with and adhere strictly to MECL’s instructions and
directions on any matter whether mentioned in the contract or not, touching or
concerning the works. In case the company is not satisfied with the performance of the
Contractor in terms of the quality and quantity, the company reserves the rights to
terminate the contract without assigning any reason and without giving any notice.
Contractor will have no claim of compensation whatsoever.
10.6 Damage to persons or and property: The contractor shall indemnify MECL against all
losses and claims in respect of injuries or damage to any person or material or physical
damage to any property whatsoever may arise out of or in consequence of the
execution and maintenance of the works and against all claims, proceedings, damages,
costs, charges and expenses in respect of or in relation thereto.
10.7 Engagement of Labour staff: The contractor shall make his own arrangements for the
engagement of all labour and staff, local or otherwise, provisions for the transport,
housing, feeding and payment thereof and no claim for medical aid to engaged
persons or any incidental charges will be entertained. The Contractor shall at all times
take all reasonable precautions to prevent any unlawful, riotous or disorderly conduct
by or amongst his employees and for the preservation of peace and protection of
persons and property in the neighborhood of the works against the same.
10.8 Third Party Insurance:
a) Before commencing the execution of the works the Contractors, without limiting his
obligations and responsibilities as per the Tender document, shall adequately insure
against his liability for any material or physical damage, loss or injury which may occur

29
 to any property, including that of the MECL, or to any person, including any employee
of the MECL, by or arising out of the execution of the works or in carrying out of the
contract.
b) Provision to Indemnify MECL: The terms shall include a provision whereby, in the
event of any claim in respect of which the Contractor would be entitled to receive
indemnify under the policy being brought or made against the MECL. The insurer will
indemnify the MECL against such claims and any costs, charges and expenses in
respect thereof.
10.9 Accident or Injury to Workmen:
a) MECL shall not be liable for or in respect of any damages or compensation payable at
law in respect of or in consequence of any accident or injury to any engaged persons in
the employment of the Contractor. The Contractor shall indemnify and keep
indemnified MECL against all such damages and compensation, save and except as
aforesaid and against all claims, proceedings, costs, charges and expenses whatsoever
in respect thereof or in relation thereto.
b) Insurance against Accident etc. to Workmen: The Contractor shall insure against such
liability with an insurer approved by MECL, of which approval shall not be
unreasonably withheld, and shall continue such insurance during the whole of the time
that any persons are employed by him on the works and shall, when required, produce
to MECL or MECL’s Representative such policy of insurance and receipt of the payment
of the current premium.
10.10 Compliance with Statutes, Regulations, etc.:
a) The contractor shall conform in all respects with the provisions of any statute,
Ordinance or Law as aforesaid and the regulations or bylaws of any local or other duly
constituted authority which may be applicable to the works and with such rules and
regulations of public bodies and companies as aforesaid and shall keep MECL
indemnified against all penalties and liabilities of every kind for breach of any such
Statute, Ordinance or Law regulations or bylaws.
b) The contractor shall have to fulfill the provisions of labour laws, P.F. Act and rules,
Contract Labour (Regulations and Abolition) Act 1970 pertaining to employment of
labour and other statutory in force from time to time. The selected tenderer will be
required to be registered with concerned ALC (C) for the employment/engagement of
workers. The Contractor shall indemnify MECL against any claims compensations,
damages, loss, penalty etc. for breach and/or non-fulfillment of the existing rules and
regulations and legal provisions as well as the rules and regulations in force from time
to time and applicable to the work covered in the contract.
c) The Contractor shall obtain the necessary licenses required under contract Labour
(Regulation & Abolition) Act 1970, before commencement of the work, if applicable.
10.11 Contractor to Keep Site Clear: During the progress of the work, the Contractor shall
keep the Site reasonably free from all unnecessary obstructions and shall store or

30
 dispose of any equipment and surplus materials and clear away and remove from the
Site any wreckage, rubbish or Temporary works no longer required.
10.12 Clearance of Site on Completion: On the completion of the work, the Contractor shall
clear away and remove from the Site all Equipment’s, surplus materials, rubbish and
Temporary works of every kind, and leave the whole of the Site and works clean and in
a workmanlike condition to the satisfaction of MECL.
10.13 Return required to be filed by Contractor: The Contractor will file all returns
pertaining to engagement of Labours & Equipments on time as per requirement of
MECL, to MECL’s Representative, or at MECL’s office, in prescribed format at required
intervals, indicating the supervisory staff and the categories of labours employed time
to time by the Contractor at the Site.
10.14 Commencement of Works: The Contractor shall make available necessary resources
for commencement of the awarded work at the work site within the stipulated time
period in the letter of award (LOA)/Work Order (WO).
10.15 Time for completion:
a) Subject to any requirement in the Contract as to complete any section of the contract
before completion of the work, the whole of the contract shall be completed within
the period as specified in the scope of contract.
b) If the contractor without valid reason, commits default in commencing the execution
of the contract within the time stipulated in tender document, MECL shall without
prejudice to any other right or remedy, be at liberty, by giving 15 days’ notice in
writing to the contractor to commence execution of the contract, failing which to
forfeit the Earnest Money Deposit.
c) MECL, if satisfied that the contract can be completed by the contractor within a
reasonable time after the specified time of completion, may allow further extension of
time at its discretion with or without the levy of Liquidated Damages.
d) If, MECL is not satisfied with the execution of the contract work in such case, it
required to be rectified & completed by the contractor within the stipulated time
period. In the event of failure on the part of the contractor to complete the contract
within the extended time period allowed, then the contact shall be entitled without
prejudice or any other right or remedy to cancel the contract.
10.16 Rate of Progress: Performance of the contractor will be judged as per the stipulated
conditions in the Tender/Work Order. For any conditions beyond control of contractor
or Force measure Contractor shall be provided extension of time, as per the Tender’s/
Work order’s conditions. If the rate of progress of the assigned work(s) or any section/
part of the work, lagging behind the time schedule as notified for the activities, then
MECL shall notify the Contractor in writing and Contractor shall thereupon required to
take immediate steps for the improvement of the work in progress as prescribed.
10.17 Risk Purchase: In case of any breach on the part of contractor or if the contractor is
unable to execute the required quantity of work as per the terms and conditions of the

31
 contract, MECL may call risk tender and work shall be done through 3 rd party at the
cost and risk of the initial contractor.
1. Liquidated Damages for Delay: If the Contractor fails to achieve progress or fails to
complete the work as per schedule of work order, the Contractor shall pay
Liquidated Damages as specified in the tender work order. Any delay on part of
MECL to provide adequate technical support, which is beyond the control of the
contractor shall be jointly recorded and certified by the Project Manager/Site-in-
Charge. (For such delay no liquidated damage shall be deducted.) However, MECL
will also be at the liberty to deduct the applicable Liquidated Damages from the
security deposit or from any sum due or to become due hereunder, or under any
OTHER CONTRACT WITH Contractor or may otherwise recover from Contractor all
sums that may become due to MECL by virtue of any of the terms thereof.
a) MECL may, without prejudice to any other method of recovery, deduct the
amount of such damages from any amount in its hands, due or which may
become due to the Contractor from his obligation to complete the contract
work, or from any other of his obligation and liabilities under the contract.
b) Nothing in paragraph (a) shall prevent MECL from exercising its right of
termination of contract under clause 10.23 of the tender hereof and associated
clauses thereunder and MECL shall be entitled, in the event of exercising its
said right of termination after the date of final completion of the work to
liquidated damages as aforesaid for the intervening period in addition to any
other amount as may be due consequent to a termination under clause 10.23
hereof.
10.18 Contractor’s Risk and Cost: Despite warnings by MECL, if the contractor sublet any
part of the contract then MECL may give seven days’ notice in writing to the Contractor
to complete the contract work by itself. In case of failure, the work may be completed
by MECL at the cost and risk of the initial Contractor.
10.19 Certification of Completion of Works: When the whole contract work has been
completed, the Contractor may give a notice to that effect to MECL’s representative
accompanied by an undertaking to finish any outstanding work, such notice and
undertaking shall be in writing and shall be deemed to be a request by the Contractor
for MECL to issue a Certificate of completion stating the date on which, in its opinion,
the contract work had been completed in accordance with the terms & conditions of
the contract or give opinion, requires to be done by the Contractor of any about
defects in the works affecting substantial completion that may have appeared therein
after commencement of the works. The Contractor shall be entitled to receive such
certificate of completion within 30 days of completion of contract work so specified to
the satisfaction of MECL and making good any defects so notified.
10.20 Removal of Plant etc.: Upon completion of the works the Contractor shall remove all
the said equipment from the site, immediately.

32
10.21 Terms of Payment:
a) The Contractor shall submit bills as per terms and conditions of the Work Order for
executed work duly certified by MECL’s representative for payment. MECL’s site
representative or any authorized person as per tender shall certify the quality and
quantity of the claims and forward the bill to the concerned Head of Division/ OIC
(Civil) for further approval/ payment.
b) Payments shall be made by the MECL Head Quarter, Nagpur, after receiving the
bills duly approved by Head of the Division. All such payments would be made by
Mineral Exploration Corporation Limited after deducting Income tax, other
statutory Taxes and Levies as applicable and Security Deposit as per tender
document.
c) Security deposit shall be released on successful completion of the contract work in
all respect and on issue of final certification from MECL as stipulated in the SCC.
10.22 Taxes on payment to Contractor: Income Tax and other taxes, if any, which may be
due, shall be to the account of contractor. MECL shall make recoveries from payments
as per the statutory requirements, and as in force from time to time, and provide the
Contractor with certificates of recoveries and remittances on this account
10.23 Cancellation of Tender: MECL reserves the right to cancel the Tender without
reasoning and the Participant(s) claim will not be entertained by MECL.
10.24 Termination: If MECL considers that the performance of the contractor is
unsatisfactory, it shall give contractor written notice mentioning the causes of its
dissatisfaction and to correct the deficiencies within specific time period (7 days or 15
days etc.) failing which MECL shall have the right to terminate the contract and award
the contract work to third party and the cost incurred by MECL shall be recovered from
contractor.
10.25 Arbitration: In the event of any dispute or difference arising out of or relating to,
under or in respect of this contract between the parties the same shall be referred, at
the written request of either party, to the Board of three Arbitrators comprising one
nominee each of MECL and Contractor and the third to be appointed by the two
arbitrators by mutual agreement in writing before entering upon the reference. Such
arbitration shall be subject to and in accordance with the provisions of the Indian
Arbitration and Conciliation Act 1996 (No.26 of 1996) and the Rules made thereunder
and any statutory modification or re-enactment thereof. The venue of arbitration
proceedings shall be Nagpur, Maharashtra, India. Any Arbitration award made in such
arbitration proceedings shall be final and binding on the parties and shall be
enforceable in any court of competent jurisdiction. The Arbitrators shall give a
reasoned and speaking award. During the course of arbitration proceedings, the
parties hereto shall continue to execute their respective obligations hereunder except
the obligations in respect of such matters as are referred to arbitration.
10.26 Force Majeure: Neither of the parties hereto shall be considered in default in
performance of the obligations under this contract if such performance is prevented or

33
 delayed by events such as war, including civil war (whether declared or not), civil
commotion, extremist’s/terrorist’s activities, insurgency, hostilities, revolution, riots,
strike, lockout, conflagration, epidemics, accidents, fire, flood, draught, earth-quake or
because of the act of God or caused beyond the reasonable control of the party
affected provided notice in writing is given within 15 days, within the shortest possible
period by MECL to Contractor and vice-a-versa.
Soon after the cause of majeure has been removed, the party whose ability to perform
its obligation has been affected, shall notify the other party of such cessation and of
the actual delay occurred in such affected activity adducing necessary evidence in
support thereof. From the date of occurrence of a case of Force Majeure, the
obligation of the party affected shall be suspended during the continuance of any
inability so caused until the cause itself and inability resulting there from have been
removed and the agreed time of completion of the respective obligation under this
contract shall stand extended by a period equal to the period of delay occasioned by
such events.
Should one or both parties remain prevented from fulfilling the obligations by a state
of Force Majeure lasting for a period of more than one month, the two parties shall
consult each other and decide on the future execution of the contract.
10.27 The contract shall be governed by and construed according to the laws in force in India
and subject to exclusive jurisdiction of the court of Nagpur only. Any legal issue arising
out of this contract shall be subject to jurisdiction of Nagpur court only
10.28 Service of Notices on Contractor: All certificates, notices or written orders to be given
by MECL to the Contractor under the terms of the contract shall be served by sending
by post or delivering the same to the Contractor’s principal place of business, or such
at other address as the Contractor shall inform for this purpose.
10.29 Service of Notices on MECL: All notices to be given to the MECL under the terms of the
contract shall be served by sending by post or delivering the same through concerned
HoD/Project Manager/ OIC to the address given in tender document.
10.30 Change of Address: Any change in address by either party shall have to be intimated
to other party immediately within a shortest possible time but not more than seven
days.
10.31 Quotation of rates: The rates shall be quoted as per format of Price Bid. The Schedule
provided in these bidding documents shall be used without exception. The rates
should be inclusive of all taxes and levies, as applicable in the state.
10.32 Responsibilities of MECL and Contractor:

Sl.No. Item(s) Responsibility

Resources for execution of work i.e. man power, equipment,
1 Contractor
machineries and materials etc.
Accommodation including water & electricity Medical facilities to
2 Contractor
their employees
Providing necessary information data, plan, location for execution
3 MECL
of the work
34
10.33 Special Conditions of Contract:
a) The special conditions of Contract (SCC) for any tender is specific to that tender
only. This may be common to all tenders. However, if similar tenders are invited at
the same time many provisions of the SCC may be common. The SCC has to be
formulated specifically as per the requirement of the work.
b) All contract documents and contract drawings are intended to be read together
and are complimentary to each other.
c) Many a times people confuse about the priorities of the different provisions of the
contract like GCC, SCC, BOQ, drawing and specifications. If conflicts between
documents, comprising the contract arises, the following shall prevail in the order
stipulated.
1) Schedule of rates/Bill of Quantity.
2) Technical specifications.
3) Tender Drawings (if required).
4) Special conditions of contract
5) General condition of contract.
Between two issues of the same documents, the documents revised or re-
issued on a later date shall prevail.
d) All specifications, contract drawings and other documents shall be interpreted in
conformity with the tender conditions of the contract as supplemented by and
modified by the special conditions of the contract.
e) When a lump-sum price for the work is stipulated in the award of work, the
quantities stipulated in the schedule of items (if any) shall be disregarded, while
preparing the agreement. The contractor shall perform all the work as envisaged
in the agreement, including the specifications and contract drawings and the
contractor shall be paid only amount of lump-sum price in consideration thereof.
f) A schedule of item may sometime be required for release of running payment. For
any revision of rate of a particular item(s), specially required for the execution/
completion of work which may be + 30% shall be considered on mutual agreement
based on the prevailing market rate.

35
 CHAPTER-XI
11.0 EXECUTION OF WORK:

11.1 During the course of execution, the variations in respect of the items having Abnormal
High Rates (AHR) and Abnormal Low Rates (ALR) shall be brought to the notice of the
competent authority/ Officer-in-charge. A constant watch shall be kept on such items,
when the rates are abnormally high.
11.2 Normally, the quantity of high rated items should not be allowed to exceed the
quantity mentioned in the BoQ. However, in case of any increase in quantity more
than 10% of high rated items beyond Bill of Quantity (BoQ) quantities, the same shall
have to be informed by the site supervisor to the competent authority/ officer-in-
charge immediately after such increase and further execution of such items should be
undertaken after prior approval of competent authority supported by adequate
justification. The same procedure shall also be followed for deviation in any single
item, which has significant impact on the contract value or even more upto 10% only.
11.3 Inspection of works: It is incumbent upon various persons concerned with the work to
inspect the same frequently to ensure that the work is being executed according to the
designs, specifications and time schedule laid down for the purpose. Primarily a
person, who records test-checks and the measurements of an item of work, will be
responsible for the quality, quantity and dimensional accuracy of the work measured &
checked.
11.4 In case of works involving supply of equipment/ structure/material etc. the
specification of works shall clearly indicate norms against which the
structures/equipment/material etc. are to be accepted. The specification must indicate
the following:
a) The inspection will be carried out to establish conformation to acceptance criteria.
b) In case equipment/structure/material does not conform to acceptance norms they
will be summarily rejected, unless deviation in this regard has been accepted for
good and sufficient reasons need to be recorded in writing.
11.5 Inspection: Contractor will give a clear notice period offering materials/equipment for
inspection and the same will not be dispatched unless inspected and cleared for the
dispatch. However, in exceptional cases inspection may be waived-off for good and
sufficient reasons after taking necessary approval in writing from the competent
authority.
11.6 Completion certificate: Before a work is declared completed in all respects and final
payment is released to the contractor as per tender document, it should be inspected
by the concerned Executive nominated by the HOD/ OIC (Civil) of the executing
department. Necessary certificate may be issued only after total completion of work
and after plugging of all the checklist points.

36
11.7 Excess Over-estimates: In case any excess expenditure is anticipated during execution
of work, necessitating preparation of revised estimates/deviation statement, action
should be taken as mentioned at Clause 5.6 to 5.8 of the manual.
However, in respect of maintenance works, additions and alterations (if any) to the
work as envisaged need to be recorded in writing and approval of competent authority
should be obtained from time to time.

11.8 Co-Ordination in respect of Execution of works: The work awarded on contract should
be properly coordinated by concerned division well ahead of the execution of work in
question so that there will be no delay in final satisfactory completion of work.
11.9 Subcontractor: The contract agreement will specify major items of supply or services,
for which the contractor proposes to engage sub-contractor. The contractor may time
to time propose any addition or deletion from any such list and will submit the
proposals in this regard to the designated officer-in-charge for approval for
engagement of proposed sub-contractor or sub-vendors well in advance so as not to
impede the progress of work. Such approval of the designated officer-in-charge will
not relieve the contractor from any of his obligations, duties and responsibilities under
the contract.
11.10 Defective or sub-standard work: Relevant Clause of GCC in this regard shall be
applicable.

37
 CHAPTER-XII

12.0 MEASUREMENT & PAYMENT OF WORK:

12.1 The payment to the contractor for the work done or the services rendered are made
on the basis of the Joint Measurement Certificate.
12.2 The bill along with Joint Measurement Certificate shall be submitted by the contractor
and are to be recommended and approved for payment by In-charge of the work
concerned.
12.3 For Civil/ Electrical/ Road & Horticulture work, the measurement of the work done
shall be conducted jointly in association with the contractor and the same will be
recorded in the measurement book (MB) by site supervisor.
12.4 All the measurements recorded in MB shall require acceptance of the contractor and
as per work done, the bills shall be submitted by the contractor and further it will be
scrutinized/verified by the OIC for passing of the bills.

38
 CHAPTER-XIII

13.0 EARNEST MONEY DEPOSIT/SECURITY DEPOSIT/TENDER FEE:

13.1 Earnest Money Deposit (EMD): Earnest Money Deposit is a pre-requisite for any
tender to be considered for evaluation of the bid. The Tenderer must submit the same
along with the tender as stipulated in the tender. Bidders may be asked to deposit
Earnest Money as mentioned in tender document of estimated value of work. The
EMD may be submitted either in the form of Demand Draft or Pay Order in favour of
“Mineral Exploration Corporation Limited”, payable at Nagpur or in the form of an
irrevocable Bank Guarantee from any Nationalized bank with 30 days validity period
beyond the validity of the Bid in the prescribed format. The Earnest Money/Bid
Security shall bear no interest. The EMD will be returned to all unsuccessful bidders
immediately after finalization of the order and its acceptance by the successful bidder.
The EMD of the successful bidder will be returned after acceptance of the order and
submits the initial Security Deposit, as the case may be. If the successful bidder accepts
the order but fails to submit the initial Security Deposit, the EMD will be forfeited. The
confirmation of EMD/ Bank Guarantee from the issuing bank shall be the responsibility
of Finance Division. The EMD submitted in the form of DD/Pay Order/Bank Guarantees
shall be immediately forwarded to the Finance Division by the Executing Division after
tender opening and work will be awarded after confirmation of EMD/Bank Guarantee.
13.2 Security Deposit: Interest free Initial Security Deposit including the EMD already
deposited shall be 5 to 10% as per clause 10.2-b (2) of this manual, contract value as
specified in the GCC is to be submitted by the successful bidder either in the form of
FDR/ Demand Draft/Pay Order or by way of Bank Guarantee in favour of “Mineral
Exploration Corporation Limited” payable at Nagpur from any nationalized Bank or
Schedule Bank which shall be valid till contractual completion period of the work.
Security Deposit is a means to safeguard the interests of the company against any
damage/loss that may occur due to inferior workmanship or otherwise. This also
safeguards the company’s interest towards recovery of costs towards un-recovered
material etc. and claim from other sources due to the fault of the contractor. The rate
of the Security Deposit recovery from R.A bills shall be as per the stipulations in the
GCC and shall be dealt accordingly.
13.3 Tender Fee: The tender fee is to be fixed on case–to-case basis which will be charged
for ‘Open tenders’. The tender fee is to be deposited through Demand Draft in favour
of “Mineral Exploration Corporation Limited”, payable at Nagpur.

39
 CHAPTER-XIV

14.0 ISSUE OF TOOLS, PLANT AND MACHINERIES:

14.1 To ensure the availability of Tools and plants as required for the work is the prime
responsibility of the contractor. However, if stipulated in the contract, the Company
may issue any tool, plant and machineries on chargeable basis. However, this practice
may be avoided to the extent possible.
14.2 In case, the department, in exigency of the work and in the interest of the company
issues tools, or plants or machineries outside the scope of the contract provisions,
necessary hire charges as fixed by the company shall be recovered from the
contractor. In case the contractor fails to return the tools, plants or machineries issued
to him, penal rates/market rates of the material concerned + 25% handling charge
should be levied on the contractor.
14.3 Hire charges for the tools, plant or the machineries issued to the contractor shall be
recovered as per the hire charges fixed by the company for the applicable time.
14.4 The bidders may be asked to submit the details of equipment, tools, or machineries
etc. to be brought by them for execution of work.

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 CHAPTER-XV

15.0 EXTENSION OF TIME:

In all contracts time is the essence of the contract and therefore the time required for
completion should be carefully fixed on the basis of control network chart taking into
account the availability of material, local conditions, and hindrances due to rain and
standard of finishing expected. The contract should provide suitable penalty to be
levied due to delay on the part of the contractors. In view of this, it shall be the duty of
the executing officer of the technical dept. to see those materials and other facilities as
agreed upon in the contract has been issued/supplied without delay. Wherever, if any
deviation is noticed on the part of the contractor, the same should be brought to the
notice of the contractor, in writing. This would ensure that no act is done to nullify or
vitiate the provisions of the contract connected with the time factor. The authority
empowered to execute the contract shall keep a close watch over the work being done
by the contractor.
15.1 Reasonable mobilization time as provided in the contract or otherwise from the date
of issue of work-order shall be permitted to the contractor.
15.2 To ensure timely progress of work, physical progress may be regularly monitored with
reference to agreed milestones in terms of bar chart prepared for this purpose as well
as in terms of estimated cost of different stages of progress of the work. Any lapse on
the part of the contractor in execution of the work should be intimated to him
immediately in writing. Any continuing lapse to him immediately in writing. Any
continuing lapse may be viewed seriously and the matter should be brought to the
notice of competent authority for taking remedial action, as deemed fit.
15.3 If the work is delayed due to happening of any of the following events the contractor
shall immediately give notice thereof in writing to the officer-in-charge but shall
nevertheless use his best efforts to prevent or make good the delay and shall do all
that may be reasonably required to the satisfaction of the Officer-in-charge to proceed
with the work/job.
a) Force majeure.
b) Abnormal bad weather for a considerable time.
c) Serious loss or damage by fire.
d) Civil commotion strike or lockout.
e) Delay on the part of other contractors or tradesman engaged by owner in
executing the work, which does not form part of the contract.
f) Non-availability of stores, which are the responsibility of MECL to supply.
g) Non-availability or break down of tools and plants or machinery supplied by MECL.
h) Any other causes which in the absolute discretion of Officer-in-Charge is considered
to be beyond the reasonable control of the contractor.
15.4 The request in writing for time extension has to be made within 15 days of the
happening of the events causing delay, to the Officer-in-Charge giving full justification
for the same. The Competent Authority to grant extension of time may like to ensure
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 that the reasons as indicated by the contractor and endorsed by Officer-in-Charge are
genuine and fully satisfied with the reasons indicated.
15.5 The competent authority can decline to grant extension of time, if the grounds shown
by the contractor while seeking extension of time are not genuine/reasonable enough
or not really beyond the reasonable control of the contractor.
15.6 Unless and otherwise agreed to, during the extended period of the contract, the
contract-rates shall remain firm and there will not be any additional establishment or
idle charges. In exceptional cases, considering the exigency and urgency of the work,
provisional time extension may be granted by the competent authority, as spelt out in
DoP without any prejudice to levy penalty in terms of the contract.
15.7 The hindrances as described by the contractor(s) for seeking the time extension shall
be brought to the notice of the higher authority from time to time. In order to
determine the same, hindrance register will be maintained which will be jointly signed
by owner and contractor at the time of periodical review meetings, the frequency of
which will depend upon the importance of the job. This meeting shall be held at least
once in every month by OIC/Designated officers whose decision in this regard shall be
final. Bid document will clearly stipulate that delays will be determined and judged on
the basis of register/ Site book jointly singed by the OIC/Designated officers and the
contractor and that any refusal on the part of the contractor to sign the register would
mean that the delays, if occurs, will be solely attributable to contractor only.
15.8 The competent authority will grant extension of time. CA may levy or may completely
waive-off the compensation recoverable from the contractor after recording the
reasons for a lenient view taken. CA may also extend the contract without prejudice to
levy penalty/ Liquidated Damages at a later date.
15.9 Failure of the contractor: The bidding documents will clearly state that if the
contractor fails to complete the work, the work order will be cancelled and the amount
due on account of work executed by contractor (if payable) shall be paid only after due
recoveries, as per the provisions of the contract and that alternative arrangement to
complete the work will be made at the cost and the risk of the contractor.
15.10 Liquidated damage for Delay: In case the contractor fails to complete the work within
the stipulated period unless such failure is due to Force-Majeure as defined in the
contract or due to company’s default, contractor shall pay to the company by way of
compensation for delay and not as penalty, a sum, at the rate of one percentage of the
contract value per day of delay, and up to a maximum 5% of the contract work value.
The contract documents will contain a provision that this is a genuine estimate of the
loss/damage which will be suffered on account of delay/breach on the part of the
contractor and said amount will be payable on demand without seeking any proof of
the actual loss or damages caused by such delay/breach. The decision of Approving
Authority in this regard will be final and binding on the contractor.

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15.11 All sums payable by way of compensation under any of the conditions will be
considered as reasonable compensation without reference to the actual loss or
damage, which would have been sustained.
15.12 Notwithstanding the above, if the contractor fails to fulfil the terms and conditions of
the contract, MECL shall have the right to award the total or left out work to any other
contractor at the risk and cost of the said contractor after giving 15 days’ notice to the
contractor.

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 CHAPTER-XVI

16.0 PAYMENT TO THE CONTRACTOR:

16.1 Payment to the contractors shall be released in terms of conditions as indicated in the
contract after necessary checking by finance division which reads as follows:

“No payment shall be made for works estimated to cost less than Rs. 20,000 till the
whole of the work have been completed and a certificate of completion is given. But in
case of works in respect of which the estimated cost is more than Rs.20,000 the
contractor, on submission of Running Account Bill (RA Bill) thereof shall be entitled to
receive a payment proportionate to the part of work executed duly approved and
passed by the Officer-in-Charge, whose certificate of such approval and passing of the
sum so payable shall be final and conclusive against the contract. This payment will be
made after making necessary deductions as stipulated elsewhere in the contract
document for security deposit etc. or any other statutory recoveries, security deposit
etc. for Civil/ Electrical/ Horticulture/ Road work.

Payment due to the contractor shall be made by E-payment/Crossed Account Payee

cheque under proper receipt from the contractor. In no case MECL shall be responsible
if the cheque is misplaced or misappropriated by unauthorized person/persons. In all
cases, the contractor shall present his bill duly signed and pre-receipted with proper
revenue stamp”.
16.2 Time schedule for submission of bills to Finance Division by executing Division
1) RA Bill: Within seven days of submission of the bill by contractor.
2) Final bill: Within 15 days of submission of the bill by the contractor.

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 CHAPTER-XVII

17.0 BLACKLISTING:

17.1 Blacklisting of a firm or contractor may be resorted to in following cases:

1) If the Proprietor or Partner or Director of the Firm is convicted by a Court of Law,
following prosecution under the normal process of Law for an offence involving
moral turpitude in relations to business dealings:
2) If security considerations including the question of loyalty to the State warrant as
per recommendations of Ministry of Home Affairs.
3) If there is justification for believing that the Proprietor or Partner or Director of the
Firm has been guilty of malpractices such as bribery, corruption, cheating, fraud,
substitution of tender etc.
4) If the firm refuses/fails to return the Company’s due without adequate cause;
5) If the firm is blacklisted by any other Department of the Central Government/State
Government.
6) If the firm is a confirmed evader of Central/State taxes/duties for which MECL has
received notice from the concerned department of Central/State Government.
7) If the Contractor backs out after receiving Work Order/Letter of Award or does not
complete the work as per Work Order/Letter of Approval.
17.2 Procedure for blacklisting:
1) Before black listing, the party shall be given a notice and an opportunity for
hearing.
2) Cases of blacklisting and revocation thereof shall be legally vetted and submitted by
the concerned division to the Chairman-cum-Managing Director who will be the
Competent Authority to blacklist any firm.
3) The issue of such orders shall normally involve termination of all businesses with
the Company including any on-going contract.
4) The list of blacklisted parties will be circulated by the concerned division amongst
the Unit Heads and Finance Division of the Unit/Corporate office.
5) Particular care shall be taken to see that the same firm is not permitted to transact
business of any kind with the Company in the guise of another name or through
any of its agents, employees or subsidiaries whatsoever.
17.3 Revocation of Blacklisting order:
A blacklisting order shall ordinarily be not revoked unless:
1) The period specified therein, if any, has expired; or
2) On a review, the Chairman-cum-Managing Director is of the opinion that the
punishment already meted out is adequate in the circumstances of the cases; or
3) Where the order is based on a conviction in the court of law and the firm is
honorably acquitted of the charges by a competent court.

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17.4 Suspension of business: Suspension of business may be ordered, where full enquiry
into the allegations is pending which, if proved, may necessitate the blacklisting of the
firm. The list of suspended parties will be circulated to all the units.
17.5 Banning : An order banning business with a firm for a period exceeding one year but
less than three years may be passed by Director (Tech) duly recommended by the
Head of concerned division of respective units.

In case where the conduct of the firm is not serious enough to merit blacklisting but at
the same time is of such a nature that removing the name of the firm from the list of
registered contractors is justified in the interest of the Company, the Head of the
concerned division of the respective units may at their discretion, may recommend for
banning of the firm. The list of banned parties will be suitably informed to all
concerned including operating/executing division and finance division of all the units
with necessary/appropriate instructions in this regard. Temporary banning of business
with a firm for failure to execute a contract satisfactorily for a period not exceeding
one year can be ordered by Head of the concerned division.

An order of banning/suspension/blacklisting, passed in respect of blacklisted/banned/

suspended firms shall be extended to allied firms. In determining this, the following
factors shall be taken into consideration.

a) Where the Management is common;

b) Where major interests in the Management is held by the Partners of Directors of
the blacklisted/banned/suspended firm;
c) Where substantial or majority of shares are owned by the blacklisted/banned/
suspended firm and by virtue of this it has a controlling power.

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 IMPORTANT NOTES

1. All relevant certificates should be attached with application/Bid.

2. Income Tax Clearance Certificates for the latest assessment year should be sent along
with the application. Without the Income Tax clearance certificate the empanelment
will not be made.
3. The PF and ESI registration number may be furnished along with the application
4. Mere empanelment of the contractor does not confer any right to the contractor to be
included in any bidder list for a particular tender.

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