MANAGEMENT OF CONTRACTS AND PROBLEMS FACED
RESULT OF TENDERS INVITED IN ENGG DEPT VERY HIGH NO RESPONSE DURING 2006-07
NO RESPONSE IN TENDERS IN ENGG DEPT No response tenders out of total tenders invited No response in R&C tenders out of R&C tenders invited
INCREASE IN PRICES OF OTHER MATERIALS IN LAST 3 YEARS • Cement from Rs.140/Bag to Rs.260/Bag (86%) • Steel from Rs.16/Kg to Rs.35/Kg (119%) • Asphalt from Rs.12/Kg to Rs.26/Kg (117%) • Ballast from Rs.300/Cum to Rs.700/Cum (133%) • Aluminum from Rs.140/Kg to Rs.200/Kg (43%) • Bricks from Rs.1.50/each to Rs.3/each (100%) • Sand from Rs.2000/Cum to Rs.3000/cum (50%) • Metal from Rs.1200/Cum to Rs.2000/Cum.(67%) • Skilled labour from Rs.200/- to Rs.300/- (50%) • Unskilled labour from Rs.100/- to Rs.150/- (50%)
OTHER FACTORS FOR POOR RESPONSE • Unstable market prices of cement, steel, fuel & asphalt • Increase of Earnest money to 2% flat rate w.e.f June’06 • Increase in security deposit to 5% w.e.f June’06 • Introduction of 5% Performance Guarantee w.e.f June’06 • With drawl of Lump sum Earnest Money w.e.f June’06 Petty registered contractors are not able to participate in large number of tenders as they were doing before as their money gets blocked in EMD as facility of LSEM has been withdrawn
ENGG DEPT -BUDGET FOR CONTRACTUAL EXP 07-08 A.DEMAND NO.16 B.REVENUE DEMAND NO.4&11 GRAND TOTAL OF A & B- 82 Cr
SHORTAGE OF SUPERVISORS IN WORKCHARGED IN REVENUE CADRE Summary of revenue and workchargedShortfall w.r to requirementVacancies w.r to cadreItem Requir On Short % Sancti on vanc % -ement roll fall age -oned roll -ies agePWI 200 114 8643%156 114 4227%IOW 120 63 5748%93 63 2022%
PROBLEM OF SUPERVISION OF WORKS • No permanent posts of IOWs created in more than two decades though assets have increased.No permanent posts of PWIs have been created for section beyond DRD in more than two decades. • Board had issued orders that supervision of track works should be by work charged PWIs and not by mtc PWIs. However this could not be implemented due to shortage of PWIs. • During 2004-05, 52 work charged posts were sanctioned which were increased to 72 during 2005-06 and 125 during 2006-07. However no purpose is being served by creating of more work charged posts for supervision as there are no incumbants for even cadre posts. • Indents for RRB are based on vacancies existing and anticipated and not on the anticipation of increased workload and posts.
PROBLEM OF SUPERVISION OF WORKS • RRB is recruiting candidates for the indents without taking into account the rate of materialisation of indents. Materialsation in superviors is only 50% to 60%. Therefore panel should be made available for double the vacancies as directed by GM. • Creation of work charged posts are not being allowed in works chargeable to revenue though value of contracts of revenue form more than 50% of value of contracts of demand no.16. • Supervision of contractors works needs to be done by supervisors against work charged posts and sectional PWIs/IOWs should not be given any contractual works. For this adequate number of cadre and work charged posts needs to be created liberally and assistance from the finance is necessary for creating these posts.
LACK OF INFRASTRUCTURE IN DIVISION • POOR INFRA STRUCTURE OF WORKS ACCOUNT SECTION The cadre of Works Account section which is handling contracts is not commensurate with work load of tenders & contracts. At present there are only 11 clerks managing about 900 tenders, 600 contracts in a year besides booking of expenditure & completion reports of these works. About 40 arbitration cases are also handled by them Total contracts being managed at any point of time are much more. • POOR INFRASTRUCTURE OF ESTIMATE SECTION The strength of estimators are also very poor. There are 9 estimators managing 200 abstract estimates, 500 detailed estimates ( Some percentage does not materialise), 900 tenders, technical check of 600 contracts, 1000 zonal work orders & 2800 running and final bills including around 1000 of zonal contracts. . POOR INFRASTRUCTURE OF DRAWING STAFF Similary there is shortage of drawing staff. There are only 12 draftsmen and they have to deal about 300 drawings in a year. They have to go to site for measurements, chase drawings for approval of concerned officers.
LACK OF INFRASTRUCTURE FOR ADENS ADENs are not having any estimators or draftsmen unlike other zones or division where each ADEN has an estimator for assistance. There is also shortage of clerks and typists for the ADENs as number of ADENs have increased and clerical staff have decreased. Now each ADEN is having only two clerks/typists against requirement of at least three – one for contracts, one for establishment and one for stores and other correspondences.
29 STEPS IN PAYMENT OF A BILL 1.Measurements by IOW/PWI including variation statement in case of SWO or final bill. Delay takes place at this stage itself as IOWs have more contracts than he can manage. 2. MB sent to ADEN office for ADEN’s test check and prepn of bill.3. Arithmetical check of measurements by ADEN bill clerk4. Test check of ADEN on the measurements5. Preparation of bill by ADEN office clerk.6. Signature of ADEN on the bill7. Bill sent to the WA section in divisional office with top sheet.8. Bill is sent to estimator for technical check. From here some bills are returned for want of clarifications/compliance. Transit involved are estimator to WA section, WA section to ADEN office, ADEN office to IOW/PWI and back by same route to estimator.9. After technical clearance by estimator, bill is sent back to WA section.10.In WA section bills & MBs are checked by bill clerk for arithmetical errors, check of rates, check of variation statement, currency of contract etc... and if any discripancies are found are retuned to ADEN for rectification/clarification.
29 STEPS IN PAYMENT OF A BILL 11.File put up to Sr.DEN to decide if extension of contract will be on Rly or contractor account under relavant clauses of GCC.. 12. If quantities are more than 25% of contracted quantities, bills are corrected for quantity up to 25% for making running bill payment to contractor. Otherwise SWO is sent for accounts vetting with vitiation statement prepared in WA section.13. File again put up to Sr.DEN to forward proposal for SWO to accounts.14. File will be returned by accounts with quarries.15. The quarries will be sent to ADEN for reply which the ADEN will get from IOW and file resubmitted to accounts with reply.16. If reply is not satisfactory, it will be again returned by accounts and same process repeats.17. Finally after SWO is vetted and approved, work order for same is typed and sent for contractor’s signature.18. Various recoveries like water charges, cess charges, taxes etc.. are deducted from the bills by bill clerk.19. Then bill is checked by OS(WA) before processing for payment. 20. Bill is checked by SO(WA). He can also raise quarries from his side and return the bill all the way down to IOW.
29 STEPS IN PAYMENT OF A BILL 21. After check of SO(WA), bill is sent for Sr.DENs signature.22. The bill is then sent to the works register section in WA section for booking expenditure in works register.23. From the booking section bill is returned to WA section from where it is sent to accounts section.24. The accounts section send the bill to budget section for funds certification.25. After funds certification by OS(Budget), bill is sent back to accounts where it is checked. At this stage also the bill can be returned with quarries which goes all the way down and comes up.26. After bill is checked in accounts CO-7 number is given.27. From there it goes to another section in accounts where CO-8 number is given.28. Cheque is printed through AFRES system and sent to cash & pay office.29. As a normal course, cheque will be sent to the address of the party by the cashier of cash and pay section.Sometimes cheque are held up there for want of stamps.
Delays in verification of Bank guarantee, partnership deed, power of attorney by legal cell in individual cases taking time • Want of plan while starting work • Want of clear site of the work • Change in scope of work during execution or bad estimation requiring additional/extra items and delay in payment due to time involved in SWO • Problems in getting electrical connections from electrical department including heavy deposits for each connection
Interferences of security agencies like RPF including arrest of labour • Interference of unruly elements especially in some areas • Non availability of block, wagons & Railway materials • Non availability of specified thickness and size of materials in the market and heavy recovery due to recovery based on prorata basis. • Users requiring change in scope of work • Delay in signing of agreements
Delay in decisions from the railway in the work. • Delay in measurements • Delay in preparation of bills • Delays in processing of bills • Delays in vetting of SWO due to shuttling of cases • Delay in payments due to paucity of funds • Delay in release of EMD/SD
Recovery due to risk & cost in works of other divisions/zones affecting works on this division • Penalties/LD levied during extension of contracts • Holding up payments due to reasons attributed to internal affairs of Railway like revision of estimate, approval of NS item etc. • Loss of MBs or files • Disputes in contracts
Incomplete documents being submitted at time of tendering (PD, POA, DEC etc.) • Unworkable rates being quoted in some items • Ambiguous rates being quoted (above/below not being quoted, rates in words & figures being different, different rates quoted for same item in schedule and offer sheet) • Some contractors not reading the documents fully • Delay in submission of performance guarantee.
Work not being started within 7 days from LOA • Samples of materials not being submitted for approval in advance • Extensions of DOC not being sought before scheduled or extended date of completion • Substandard work • Contractors nor willing to execute certain items of works in contract • Debris not being removed from site of work from time to time as well after completion • Safety precautions not being taken by contractor like cordoning off the area of work.