WMVol-1

8/3/2019 WMVol-1

1/186

Construction Management Manual

Nuclear Power Corporation of India Ltd

olume - I

8/3/2019 WMVol-1

2/186

8/3/2019 WMVol-1

3/186

8/3/2019 WMVol-1

4/186

8/3/2019 WMVol-1

5/186

The HQI 8005 (Rev-0) on Co nstruc tion Ma na gem ent Ma nua l Vol-1 for exec ution o f

works and servic e contrac ts sha ll be c onside red a s void . Instea d o f the above this

doc ument is being issued as a Ma nual.

8/3/2019 WMVol-1

6/186

8/3/2019 WMVol-1

7/186

P R E F A C E

The General Cond itions of Co ntrac t for Works and Ma intena nce Contrac ts be ing fo llowed in

NPCIL have been derived mainly from the General Conditions of Contract being followed

by CPWD in p ast. These Gene ra l Cond itions we re m ainly oriente d for Civil works and certa inclauses of these conditions needed modification as NPCIL started gaining the experience in

hand ling the Cont rac ts. The ne ed wa s felt that the existing Ge neral Cond itions of Contrac t

are revisited and modified as per the prevailing concepts of managing the contracts and

also include the c onc ep ts which a re be ing follow ed by va rious Gene ral Cond itions ad op ted

internationally. The Revised Gene ral Co nditions of Contrac t ha ve been mod ified with

respec t to the g ene ral structure which is being a dop ted b y the ministry of Sta tistics and

program me imp lementa tion and internationally. The va rious c lauses have been c lubb ed in

such a manner that the roles and responsibilities of the Corporation, EIC and the Contractor

are c lea rly brought o ut unde r ma jor Sub Hea d and the sam e a re w ell de fined . The p re-

qua lific ation c riteria has be en introd uced w hich deals with the initial financ ial ca pa bilities,

experienc e in exec ution of similar wo rks, working out the financ ial c apa bility to bid for the

work, Tec hnical ca pa bilities and the c ap ac ity for resource mob ilization of the Cont rac tor.

The p re-qua lificat ion c riteria e volved are expe c ted to e nsure tha t the genuine tende rer only

should submit the ir b ids. The resource b ased sched ule inc luded in the G ene ral Cond itions

will demonstrate adequate capabilities of the Contractor for executing the Contract in a

system at ic ma nner. It is expec ted that such type of a dd itions in the modified GCC will bring

more professiona lism in the Organizat ion. The mega pa ckage conc essions have be ensuita bly introd uced in order to o btain leg itimate be nefits to the Orga nization. The c onc ep t

of price adjustment during execution of contract has also been modified which will ensure

ad eq uate c om pe nsat ion to the Contrac tor during unp rec ed ented pric e rise of inputs. The

management of Quality Assurance as per the Corporate Management systems has also

been introduced in the modified General Conditions of Contract as a part of total quality

management.

Spe c ial em pha sis has been g iven o n hea lth, safe ty and housekeep ing during contrac t

exec ution in order to ensure tha t p rovision of AERB guidelines a re sc rup ulously follow ed . Thehealth of workman has been adequately covered as per the provision of international

standard.

NPCIL has been executing the contract as per the existing GCC and have experienced

certain difficulties. EIC of the works and Contractors have also felt the requirement of

improvem ents in our GCC fo r smo oth exec ution of works on a eq uitab le ba sis. While d raft ing

the mod ified GCC this partic ula r aspe c ts has be en the key objec tive. Spe c ial at tention has

been g iven to certain c lauses suc h as Force Majeure c ond itions, Suspension of w ork, Levy o f

compensation for delay, importance of pre-bid meeting etc. A three tier approach hasbeen adopted in resolution of disputes. It is expected that the Revised General Conditions

of Contract for handling Works Contract and Maintenance Co ntrac t ma y go a long w ay in

executing contracts smoothly. We do expect that certain minor modifications may be

req uired as we g ain further experienc e.

In view of the issual of modified G.C.C., it has become imperative that our Construction

8/3/2019 WMVol-1

8/186

Practical difficulties in implementation of the process were discussed at length, while

keeping the internal controls intact, a liberalized approach in reviving the duties and

responsibilities of the EIC has been brought in here as one of the significant changes.

Detailed use of the computerized software for measurements, billing and accounting has

been d efined.

Handling the Works Contract as per the General Conditions of Contract is not just sufficient

for co ntrac t ha ndling pe rsonnel to fully unde rstand the e ntire Projec t Ma nag ement. The

manual also deals with other important aspects of the project management such as the

area required by the contracting agency, various tools and tackles needed for a particular

job to accomplish a task, the resource management methodology, Construction

methodology to be adopted, Quality Control Mechanism, various testing laboratories

ava ilable in India w hich a re a pp roved by NPCIL, Risk Mana ge ment d uring p rojec t exec ution

and Vigilanc e do s and d ont s etc .

Industria l sa fety ha s been a m a jor issue o f conc ern during execution of work. This ma nua l

covers in de ta il va rious p rovisions of AERB Safety Guid e a nd a lso the Atomic Energy

Fac tories Rule. It is expe c ted tha t Eng ineer-in-cha rge of the works ma ke himself fully

conversant w ith the Industria l Sa fety requirem ents, p rep ares a d eta iled Industria l Sa fety

Manual including job hazard analysis and develop a safety culture to ensure that all the

stipulations of the above mentioned guidelines are scrupulously followed.

Spe c ial emp hasis has been g iven to t he sec urity aspec ts c onsidering the p resent sec urity

scena rio in the c ount ry. It is expe c ted tha t sec urity req uirem ents wo uld be we ll understood

by the engineers handling the contracts and no short cuts are allowed in meeting the

sec urity norms.

Emp hasis on c rea ting an environment tha t shall bring in inde pe nde nce / em po werment to

the Enginee rs / officers tha t sha ll increa se the respo nsibility and accountab ility of the

Eng ineers / of ficers.

This do cument is intend ed to p rovide the funda mental ob ject ive of the C orporation to

Engineer, inspection staff and safety engineers who are responsible for overall quality

control and inspection during construction, with the overall objectives to monitor thesuccessful comp letion of the contrac t w ithin the stipulated pe riod of time with utmo st p riority

given to industria l sa fety. The purpose of t he ma nua l set forth is tha t this should p rovide as a

good reference document for contract management for any new officer joining NPCIL. It

has been the endeavour that the language of the manual should be simple, brief and is

well unde rstoo d by the contrac t handling pe rsonnel. An attem pt has be en made to fulfil

the p urpo se of the m anua l to p rovide a go od insight of the d eta iled proc ess in a flow w hich

is easy in understanding.

The com mittee com prising of Shri V.C. Ag rawa l, DIR(HR), Shri C. Rayc haud huri, AD(NP), ShriD.K. Ja in, CE(Civil), Shri H.D. Singh, CE(GS, TAPS 1-4), Shri V.S. Kha nd eka r, DGM(F&A) a nd Shri

P.U. Bob y, Dy.CE (Infra) Me mb er Sec reta ry ha ve left no stone unturned in rev ising a nd re-writing the Ma nual. It is wo rth mentioning tha t one a nd a ll have contribute d to their be st

efforts on re-writing the Manual to meet the objective of making this document as a

reference Construc tion Manual.

8/3/2019 WMVol-1

9/186

TABLE OF CONTENTS

VOLUME - I

SECTION-1 DEFINITIONS ___________________________________________________________ 1

1.1 DEFINITIONS ____________________________________________________________________ 1

1.2 CLASSIFICATIONS OF WORKS ____________________________________________________ 41.2.1 WORKS______________________________________________________________________________ 61.2.2 ORIGINAL WORKS____________________________________________________________________ 61.2.3 REPAIR WORKS_______________________________________________________________________ 71.2.4 PETTY WORKS ________________________________________________________________________ 71.2.5 DEPOSIT WO RKS______________________________________________________________________ 7

1.2.6 STAGES OF WORK ____________________________________________________________________ 8

1.2.7 PREPARATION OF TECHNICAL SPECIFICATIONS _________________________________________ 91.2.8 GENERAL CONDITIONS OF CONTRACTS________________________________________________ 91.2.9 SPECIAL CONDITIONS OF CONTRACT__________________________________________________ 9

1.2.10 SCHEDULE OF DRAWING S____________________________________________________________ 101.2.11 MATERIAL TO BE SUPPLIED BY THE CORPORATION ______________________________________ 10

1.2.12 SCHEDULE OF RATES_________________________________________________________________ 10

SECTION-2 BUDGET & COST ESTIMATES ____________________________________________ 11

PROCESS OBJECTIVES ____________________________________________________________ 11

2.1 PREPARATION AND COMPILATION OF BUDGET___________________________________ 112.1.1 BUDGET ____________________________________________________________________________ 112.1.2 BUDGET ESTIMATE / REVISED ESTIMATES________________________________________________ 11

2.1.3 CLASSIFICATION OF EXPENDITURE ____________________________________________________ 11

2.1.4 AC CO UNT CO DE____________________________________________________________________ 122.1.5 PREPARATION & SUBMISSION OF DETAILED ESTIMATES__________________________________ 12

2.1.6 NEW ITEMS OF EXPENDITURE OR FRESH C HARGES______________________________________ 15

2.1.7 INEVITABLE PAYMENTS _______________________________________________________________ 15

2.1.8 PERFORMANC E BUDGET_____________________________________________________________ 15

2.1.9 APPROPRIATION AND RE-APPROPRIATION ____________________________________________ 152.1.10 CONTROL O F EXPENDITURE __________________________________________________________ 17

2.2 PRELIMINARY ESTIMATE & APPROVALS___________________________________________ 172.2.1 PRELIMINARY ESTIMATE ______________________________________________________________ 17

2.2.2 ADMINISTRATIVE APPROVAL & FINANCIAL SANCTION __________________________________ 18

2.2.3 TECHNICAL SANCTION_______________________________________________________________ 19

2.2.4 PREPARATION O F DETAILED ESTIMATE _________________________________________________ 20

2.2.5 SCHEDULE OF RATES_________________________________________________________________ 21

2.2.6 PROVISION FOR CONTINGENCIES ____________________________________________________ 22

2.2.7 REVISED ESTIMATE ___________________________________________________________________ 22

2.2.8 RECASTING OF ESTIMATE_____________________________________________________________ 22

2.2.9 MAINTENANC E AND SERVICE CO NTRACTS ____________________________________________ 22

2.2.10 APPROPRIATION OR RE-APPROPRIATION OF FUND (BUDGET PROVISION) ________________ 25

KEY PERFORMANCE INDICATORS _________________________________________________ 25

8/3/2019 WMVol-1

10/186

3.1.6 PERCENTAGE RATE CONTRAC T_______________________________________________________ 29

3.2 PREPARATION OF TENDER DOCUMENT ___________________________________________ 293.2.1 GENERAL ___________________________________________________________________________ 29

3.2.2 PREPARATION OF NO TICE INVITING TENDER ___________________________________________ 30

3.3 BID SECURITY__________________________________________________________________ 31

3.3.1 NECESSITY FOR BID SECURITY _________________________________________________________ 313.3.2 RATES OF BID SECURITY ______________________________________________________________ 313.3.3 MODE OF DEPOSIT __________________________________________________________________ 32

3.3.4 WAIVER OF BID SECURITY ____________________________________________________________ 323.3.5 REFUND OF BID SECURITY ____________________________________________________________ 323.3.6 BID SECURITY IS NOT SECURITY DEPOSIT________________________________________________ 323.3.7 FORFEITURE OF BID SECURITY _________________________________________________________ 32

3.4 PUBLICITY OF TENDER___________________________________________________________ 33

3.4.1 PUBLICITY OF TENDER________________________________________________________________ 333.4.2 CALL OF PUBLIC TENDER_____________________________________________________________ 333.4.3 CALL OF LIMITED TENDER_____________________________________________________________ 34

3.4.4 CALL OF SING LE TENDER_____________________________________________________________ 353.4.5 AWARD OF WORK ON NEGOTIATION / NOMINATION/ WITHOUT CALL OF TENDER________ 35

3.4.6 EXECUTION OF DEPOSIT WO RKS ______________________________________________________ 35

3.4.7 TIME GAP BETWEEN C ALL OF TENDER AND OPENING OF TENDERS_______________________ 363.4.8 EXTENSION O F TIME PERIOD FOR SALE AND RECEIPT OF TENDER_________________________ 373.4.9 FORMALITIES FOR RE-INVITATION O F TENDER___________________________________________ 37

3.5 PREQUALIFICATION OF CONTRACTORS__________________________________________ 373.5.1 GENERAL ___________________________________________________________________________ 37

3.6 SALE OF TENDER________________________________________________________________ 393.6.1 SALE OF TENDER DO CUMENT_________________________________________________________ 39

3.6.2 SCALE OF CHARGES FOR TENDER DOCUMENT_________________________________________ 39

3.6.3 SALE OF TENDER DO CUMENTS TO REGISTERED C ONTRACTORS__________________________ 40

3.6.4 GUARANTEE BONDS _________________________________________________________________ 403.6.5 ISSUE OF TENDER DOCUMENT TO PRE-Q UALIFIED TENDERERS FOR SPECIALIZED WORK_____ 40

3.6.6 SUPPLY OF DUPLICATE SET OF TENDER DO CUMENTS____________________________________ 40

3.6.7 ACCOUNTING OF TENDER DOCUMENT________________________________________________ 403.6.8 CENTRALIZED TENDERING CELL _______________________________________________________ 41

3.6.9 FILE TRAC KING SHEET ________________________________________________________________ 41

KEY PERFORMANCE INDICATORS _________________________________________________ 41

MIS _____________________________________________________________________________ 41

SECTION-4 CONTRACTING _______________________________________________________ 43

PROCESS OBJECTIVES ____________________________________________________________ 434.1 RECEIPT OF BID AND EVALUATION _______________________________________________ 43

4.1.1 RECEIPT OF BIDS AND O PENING THEREOF _____________________________________________ 434.1.2 DUTIES OF OFFICERS OPENING THE TENDERS___________________________________________ 454.1.3 PROCEDURE FOR ACCOUNTING, CORRECTION, CONDITION & OVER WRITINGS__________ 454.1.4 EVALUATION OF TENDERS (C OMPARATIVE STATEMENT) _________________________________ 464 1 5 CONDITIONSREGARDING ABNORMALLY HIGH / LOW RATES 50

8/3/2019 WMVol-1

11/186

4.2.8 COMMUNICATION O F ACCEPTANCE OF TENDER ______________________________________ 58

4.2.9 PRESERVATION OF TENDER DOCUMENTS ______________________________________________ 58

4.3 SECURITY DEPOSIT AND ITS RECOVERY___________________________________________ 594.3.1 RATE OF SECURITY DEPOSIT___________________________________________________________ 59

4.3.2 WAIVER OF SECURITY DEPOSIT________________________________________________________ 59

4.3.3 FORMS OF SECURITY DEPOSIT_________________________________________________________ 604.3.4 INVOKING / ENC ASHING OF BANK GUARANTEE AS SECURITY DEPOSIT___________________ 604.3.5 TRANSACTION BETWEEN PSU AND GOVERNMENT______________________________________ 614.3.6 FIXED DEPOSIT RECEIPTS AS PERFORMANCE GUARANTEE _______________________________ 61

4.3.7 REFUND OF SECURITY DEPOSIT________________________________________________________ 61

4.4 EXECUTION OF AGREEMENTS / CONTRACTS______________________________________ 644.4.1 ESSENTIAL FEATURES _________________________________________________________________ 644.4.2 POWER TO SIGN WORK ORDER / WORK AGREEMENT___________________________________ 65

4.4.3 SUPPLY OF COPIES OF CO NTRACT / AGREEMENT TO CONTRACTORS____________________ 65

4.4.4 CERTIFICATION AND SAFE CUSTODY OF AGREEMENTS__________________________________ 654.4.5 SUPPLEMENTARY AGREEMENTS_______________________________________________________ 664.4.6 COMPLETION O F AGREEMENTS_______________________________________________________ 66

KEY PERFORMANCE MEASURES ___________________________________________________ 67

MIS _____________________________________________________________________________ 67

SECTION-5 EXECUTION & MONITORING ___________________________________________ 69

PROCESS OBJECTIVES ____________________________________________________________ 695.1 PROJECT INFRASTRUCTURE REQUIREMENTS _______________________________________ 69

5.2 INFRASTRUCTURE FOR EXECUTION OF WORK _____________________________________ 705.2.1 GENERAL ___________________________________________________________________________ 70

5.2.2 LAND FOR EXECUTION OF WORK _____________________________________________________ 725.2.3 MODE OF HANDING OVER SITE FOR EXECUTION O F WORKS ____________________________ 735.2.4 HANDING OVER LAND FOR OTHER ACTIVITIES TO EXECUTE THE CONTRAC T ______________ 74

5.2.5 POWER AND WATER SUPPLY__________________________________________________________ 75

5.2.6 SETTING OUT THE WO RK______________________________________________________________ 76

5.3 INSURANCE____________________________________________________________________ 765.3.1 REQUIREMENTS FOR INSURANC ES_____________________________________________________ 76

5.4 CONTRACTORS LABOUR REGULATIONS__________________________________________ 775.4.1 PROVISION O F THE ACT______________________________________________________________ 775.4.2. PROVISIONS AND PENALTY FOR NO N-C OMPLIANCE OF LABOUR LAWS AS PER THE GCC__ 77

5.4.3 LIST OF ACTS / OMISSIONS____________________________________________________________ 795.4.4 MINIMUM WAGES ___________________________________________________________________ 79

5.4.5 RESPONSIBILITIES OF EIC ______________________________________________________________ 805.4.6 RESPONSIBILITIES OF CONTRACTORS__________________________________________________ 805.4.7 DEDUCTIONS TO BE MADE FROM CONTRACTORS BILLS________________________________ 81

5.4.8 PROCEDURE IN CASE OF AC CIDENT __________________________________________________ 815.4.9 LABOUR WELFARE___________________________________________________________________ 81

5.5 CONTROL & ISSUE OF DRAWING_________________________________________________ 81

5 6 ISSUEOF MATERIALSBY CORPORATION 82

8/3/2019 WMVol-1

12/186

5.8 ISSUE OF TOOLS AND PLANTS ___________________________________________________ 905.8.1 CONDITIONS OF ISSUE _______________________________________________________________ 905.8.2 CALCULATIONS OF HIRE CHARGES ___________________________________________________ 915.8.3 TERMS AND CONDITIONS TO ISSUE PLANT AND MACHINERY ON HIRE____________________ 925.8.4 BILLING AND ACCOUNTING OF HIRE CHARGES OF T&P_________________________________ 92

5.9 EXECUTION OF WORK __________________________________________________________ 935.9.1 PLANNING _________________________________________________________________________ 93

5.9.2 SCOPE OF SANCTION________________________________________________________________ 93

5.9.3 SUB CONTRAC TS ____________________________________________________________________ 94

5.9.4 MATERIALS & SAMPLES_______________________________________________________________ 945.9.5 INSPECTION _________________________________________________________________________ 95

5.9.6 TESTING _____________________________________________________________________________ 955.9.7 REJECTION__________________________________________________________________________ 965.9.8 REMEDIAL WORK ____________________________________________________________________ 97

5.9.9 EXCESS OVER ESTIMATES_____________________________________________________________ 975.9.10 PROTECTION OF THE ENVIRONM ENT __________________________________________________ 975.9.11 MATERIAL OBTAINED FROM EXCAVATION AND DISMANTLEMENT________________________ 97

5.9.12 OCTROI, CESS, TAXES, ROYALTIES, ETC. ________________________________________________ 98

5.9.13 MISCELLANEOUS ____________________________________________________________________ 98

5.10 CONTRACTORS SUPERVISION___________________________________________________ 995.10.1 STAFF TO BE EMPLOYED BY CONTRAC TOR ON WO RKS_________________________________ 100

5.10.2 STAFFING, TRAINING AND CERTIFICATION ____________________________________________ 101

5.11 QUALITY CONTROL AND TECHNICAL AUDIT_____________________________________ 101

5.11.1 INTRODUCTION ____________________________________________________________________ 101

5.11.2 QA MANUAL FOR CONSTRUCTION___________________________________________________ 102

5.11.3 QUALITY ASSURANCE SYSTEM________________________________________________________ 102

5.11.4 QUALITY CONTROL SYSTEM__________________________________________________________ 1035.11.5 ORGANIZATIONAL SET UP FOR QUALITY CONTROL SYSTEM _____________________________ 103

5.11.6 LABORATORIES_____________________________________________________________________ 106

5.11.7 QA RECORDS______________________________________________________________________ 106

5.11.8 VERIFICATION FUNCTIONS___________________________________________________________ 106

5.11.9 AUDIT AND AUDIT TEAM _____________________________________________________________ 107

5.11.10 ACTION IN UNITS/ STATIONS/PROJECTS ON THE REPORTS OF QA TEAM & AUDIT TEAM ____ 1075.11.11 QUALITY CONTROL FOR WORKS WHERE QA SECTION IS NO T DIRECTLY INVOLVED________ 108

5.11.12 SUBMISSION OF RETURNS____________________________________________________________ 108

5.11.13 HEALTH AND INDUSTRIAL SAFETY_____________________________________________________ 109

5.11.14 HOUSE KEEPING AND CLEANING OF SYSTEMS ________________________________________ 111

5.11.15 COMPETENT PERSON FOR TESTING & CERTIFICATION AS PER ATOMIC ENERGY FACTORY

RULES,1996_________________________________________________________________________ 112

5.12 SUB STANDARD WORK _______________________________________________________ 1135.12.1 PROCEDURE FOR AC CEPTANCE OF SUB-STANDARD WORK ____________________________ 113

5.12.2 SANC TION O F RATES FOR SUB-STANDARD WORK______________________________________ 113

5.13 PROGRAM, RATE OF PROGRESS AND HINDRANCES______________________________ 1145.13.1 CONTRACT RISK MANAGEMENT_____________________________________________________ 114

5.13.2 WORK PLANNING __________________________________________________________________ 1155.13.3 EARLY DETECTION OF HINDRANCES__________________________________________________ 117

5 13 4 RATEOF PROGRESS 117

8/3/2019 WMVol-1

13/186

5.14.8 DEFINITION OF FORCE MAJEURE ___________________________________________________ 123

5.14.9 COMPENSATION OF DELAY UNDER CLAUSE 7.7 OF GCC ______________________________ 123

5.14.10 PERFORMA FOR INTIMATING C OMPENSATION UNDER CLAUSE 7.6 ______________________ 124

5.15 EXTRA, SUBSTITUTED AND DEVIATED ITEMS OF WORK _____________________________ 1245.15.1 DEVIATIONS________________________________________________________________________ 124

5.15.2 DEVIATION TO BE AVOIDED _________________________________________________________ 1255.15.3 PRIOR SANC TION O F COMPETENT AUTHORITY NECESSARY FOR DEVIATIONS ____________ 1255.15.4 POWERS TO SANCTION RATES FOR EXTRA/ SUBSTITUTED ITEMS___________________________ 1255.15.5 PAYMENTS OF PROVISIONA L RATES FOR EXTRA/ SUBSTITUTED ITEMS______________________ 127

5.15.6 INSTRUCTIONS FOR FORWARDING EXTRA / SUBSTITUTED ITEMS__________________________ 128

5.15.7 GOVERNING CONDITIONS OF APPROVING ADDITIONAL QUANTITIES EXTRA ITEMS /SUBSTITUTED ITEMS__________________________________________________________________ 128

5.15.8 GUIDELINES AS PER GCC FOR FIXING RATES FOR EXTRA/ SUBSTITUTED ITEMS & ADDITIONALQUANTITIES ________________________________________________________________________ 130

5.15.9

MEASUREMENT FOR INADMISSIBLE ITEMS_____________________________________________ 131

5.16 CONTRACT PRICE ADJUSTMENT ________________________________________________ 131

5.17 COMPLETION CERTIFICATE_____________________________________________________ 135

5.18 SUSPENSION OF WORK ________________________________________________________ 137

5.19 PROVISIONS FOR TERMINATION / CANCELLATION OF CONTRACT_________________ 137

5.20 RECORD MANAGEMENT_______________________________________________________ 139

KEY PERFORMANCE MEASURES __________________________________________________ 139

MIS ____________________________________________________________________________ 140

SECTION-6 MEASUREMENTS & PAYMENTS _________________________________________ 141

PROCESS OBJECTIVES ___________________________________________________________ 141

6.1 MEASUREMENT BOOK (MANUAL) _______________________________________________ 1416.1.1 GENERAL __________________________________________________________________________ 141

6.1.2 RECORDING OF MEASUREMENTS ____________________________________________________ 141

6.1.3 TEST CHECKING OF MEASUREMENTS _________________________________________________ 1446.1.4 REVIEW O F MEASUREMENT BOOKS___________________________________________________ 1446.1.5 LOSS OF MEASUREMENT BOOKS_____________________________________________________ 1446.1.6 NO N RETURN OF MB BY INSPECTION, VIG ILANCE, COURT, ARBITRATION ETC. ____________ 1446.1.7 STAGE PAYMENT___________________________________________________________________ 145

6.2 DOCUMENT GENERATION THROUGH WORK CONTRACT MANAGEMENT SYSTEM ___ 145

6.3 PREPARATION, VERIFICATION AND PASSING OF BILLS____________________________ 1476.3.1 PREPARATION OF BILLS (M ANUAL) ___________________________________________________ 147

6.3.2 FORMS OF BILL FOR PAYMENTS AND VO UCHERS______________________________________ 1476.3.3 AUTHORITY TO PASS THE BILLS________________________________________________________ 1486.3.4 PAYMENT FOR WORK DONE_________________________________________________________ 148

6.4 PAYMENTS TO CONTRACTORS _________________________________________________ 1486.4.1 REQUIREMENT OF CLAUSE 12.2 O F G.C.C ____________________________________________ 148

6.4.2 TIME-SCHEDULE FOR PAYMENT OF BILLS ______________________________________________ 149

8/3/2019 WMVol-1

14/186

KEY PERFORMANCE MEASURES __________________________________________________ 157

MIS ____________________________________________________________________________ 157

SECTION-7 DISPUTE RESOLUTION, ARBITRATION & LITIGATION _______________________ 159


7.1 APPLICATION OF ARBITRATION CLAUSE 17 OF GCC _____________________________ 159

7.2 DISPUTE RESOLUTION __________________________________________________________ 159

7.3 DISPUTE RESOLUTION BOARD (DRB) _____________________________________________ 1597.3.1 CONSTITUTION O F DISPUTE RESOLUTION BOARD ______________________________________ 159

7.3.2 GIVING INFORMATION TO DISPUTE RESOLUTION BOARD _______________________________ 1607.3.3 OBTAINING DISPUTE RESOLUTION BOARDS DECISION _________________________________ 161

7.3.4 AMICABLE SETTLEMENT______________________________________________________________ 161

7.3.5 FAILURE TO COMPLY WITH DISPUTE RESOLUTION BOARDS DECISION ___________________ 1627.3.6 EXPIRY OF DISPUTE RESOLUTION BOARDS APPOINTMENT ______________________________ 162

7.4 ARBITRATION _________________________________________________________________ 1627.4.1 APPLICATION FOR APPOINTMENT OF ARBITRATOR ____________________________________ 163

7.4.2 PREPARATION FOR ARBITRATION CASES______________________________________________ 163

7.4.3 PROCESSING OF CONTRACTORS APPLICATIONS FOR APPOINTMENT OF ARBITRATOR ___ 1647.4.4 APPOINTMENT OF ARBITRATOR ______________________________________________________ 165

7.4.5 APPOINTMENT OFARBITRATOR IN THE ABSENC E OF AG REEMENTORARBITRATION CLAUSE 165

7.4.6 ACTION SUBSEQUENT TO APPOINTMENT OF ARBITRATOR ______________________________ 165

7.4.7 ARBITRATION PROCEEDINGS ________________________________________________________ 1667.4.8 PUBLICATION OF AWARD ___________________________________________________________ 166

7.4.9 ACCEPTANCE OF ARBITRATION AWARD _____________________________________________ 1667.4.10 SETTING ASIDE OF THE AWARDS _____________________________________________________ 166

7.4.11 PAYMENT OF AWARD MONEY_______________________________________________________ 1667.4.12 COURT PROCEEDING S______________________________________________________________ 166

MIS ____________________________________________________________________________ 167

SECTION-8 MANPOWER REQUIREMENTS AND PROJECT ORGANISATION CHART ______ 169


8.1 GENERAL_____________________________________________________________________ 169

8.2 TYPICAL MANPOWER REQUIREMENT FOR VARIOUS SECTIONS OF NPP DURING

CONSTRUCTION STAGE________________________________________________________ 170

8.3 DEPLOYMENT OF MANPOWER AT VARIOUS STAGES OF CONSTRUCTION ___________ 171

VOLUME - II

ANNEXURES____________________________________________________________________________173

8/3/2019 WMVol-1

15/186

SECTION-1

DEFINITIONS

1.1 DEFINITIONS

1 "Accepting Authority"means NPCIL Board or CMD, NPCIL or his authorised representativeas per delega ted power for the purpose of the contrac t.

2 Corporation shall mean Nuclear Power Corporation of India Ltd. (NPCIL) andinclude its lega l rep resenta tives, suc c essors and permitted assigns.

3 "Contract" shall mea n an ag reem ent where a propo sal has bee n ac c ep ted andshall inc lude notice inviting the tend er, the tender and a c cep tanc e thereof and

the forma l ag reem ent, if any, executed be twe en Nuc lea r Power Corporation ofIndia Ltd a nd the Contrac tor tog ether with the do c uments referred to therein

including General Conditions of Contract with appendices and any special

conditions, specifications, designs, drawings, schedule of quantities with rates and

amounts. All these documents taken together shall be deemed to form one

Contrac t and shall be co mp leme ntary to one ano ther.

4 Contractor is a p erson(s) named as contrac tor in the work order / a greem ent a ndits leg a l suc cessors.

5 Contrac t Price" shall mean:(i) In the case of "Lump sum Contracts" the sum for which the tender is

accepted

(ii) In the case of Item Rate Contrac ts", the total cost of the works arrived ata fte r extension of quantities shown in Sc hed ule of Qua ntities by the item ra tes

quo ted by the tend erer for various item s.

(iii) In the case of Rate Contracts the tota l pa yments ma de to the c ontrac torfor the a pp roved qua ntities executed at the rate quoted by him. The

qua ntities a re not known at the time of quoting the rates.

(iv) In the case of Percentage rate Contracts the net amount arrived afterapplying the percentage (increase /decrease) as quoted by the tenderer.

The p ercenta ge shall be ap plied on the estima ted a mount a rrived ba sed on

the sched ule o f q uantities whe rein the rate s of individua l item s are b ased onSOR.

6 Commissioning means the trial/initial operation of the works / facility or any partthereof by the contractor, for the purpose to demonstrate successful operation of the

fac ility as per cont rac t p rov isions.

8/3/2019 WMVol-1

16/186

any amendm ents therein to.

10 Contrac tors Equipme nt means all apparatus, machineries, vehicles and other thingsrequired for the execution and completion of the works and the remedying of any

defects. However, contractors equipment excludes temporary works, employers

equipment, plant, materials (if any) and any other things intended to form or formingpart of the works.

11 Contrac tors Rep resentative mea ns the p erson nom inated or app ointed from time totime b y the co ntrac tor who ac ts on be half of the contrac tor.

12 Corpora tions Too ls & Plants means the apparatus, machinery, tools, plants andvehicles (if any) made available by the Corporation for the use of the contractor in the

execution of the w ork but it do es not inc lude plants which have not b een ta ken over by

the Corporation.

13 Country means the country in which the site is located where the works are to beexecuted.

14 Date of Commencement means the date when the contractor shall commenceexecution of the works as mentioned in the wo rk orde r and the c ompletion time for the

wo rk shall be rec koned from this da te.

15 A Day means a day of 24 hours from mid-night to mid-night irrespective of thenumber of hours worked in that day; a Week means seven days, a Month

mea ns a c alendar month and a Year means 365 days without regard to the

numb er of hours wo rked in any day.

16 Defect means any part of the Works not executed in accordance with theContract.

17 The Defect Liability Period is the p eriod defined in the Schedule A during w hic h thecontractor is responsible for defects with respect to the works as provided in clause No.

9 (Defec t Liab ility) of the GCC.

18 DFP means the Delegation of financial powers for works issued by the Corporationfrom time to time, de fining the a uthority, pow ers and proc ed ure fo r autho risat ion.

19 Drawings means the drawings of the works, as included in the Contract, and anyadditional and modified drawings issued by (or on behalf of) the Corporation in

ac co rda nce with the Contrac t.

20 DRB means the Dispute Resolution Board appointed under sub-clause 17.3(App ointment of the Dispute Resolution Boa rd) of the G CC.

21 "EIC" or The Enginee r shall mean the Officer appointed by the Corporation or hisduly authorized representative who shall direct supervise and be in charge of the

8/3/2019 WMVol-1

17/186

Ac c ep ting Authority or causes solely due to use or oc cupat ion by the

"Corporation" of the pa rt of Works in respec t of which a ce rtifica te of comp letion

has b een issued .

23 Extra Items are the items which are completely new and in addition to the itemsin contrac t.

24 GCC mea n the Ge neral Conditions of Contract .25 Latent Defec ts shall mea n any d efec ts which e xist but has not surfac ed at the time o f

testing and has not ma nifested during de fec t liab ility p eriod .

26 Laws means all national (or state) legislation, statutes, ordinances and other lawsand regulat ions and b y-laws of a ny leg ally constituted p ublic authority.

27 Local Currency means the currency of India. Foreign Currency means acurrency in which part (or whole) of the Contract Price is paid in currency other

than the Loc al Currenc y.

28 "Market Rate shall be the rate as decided by the EIC on the basis of the cost ofma teria ls and labo ur a t the Site whe re the wo rk is to b e executed , plus 10 % to c ove r a ll

ove rheads and profit. For ma terial issued by the Corporation, the ove rhea ds and p rofit

perce nta ge sha ll be allowe d @ 2.5%.

29 Minimum Wages shall be the minimum wages declared from time to time by thestate or central government, whichever is higher.

30 Near Rela tives means wife, husband, parents and grand parents, children andgrand children, brothers and sisters, uncles and aunts, cousins and their

c orrespond ing in-laws.

31 Part Completion Certificate means the certificate issued by the Corporation oncompletion of items or group of items for which separate period of completion have

be en spe c ified in the contrac t, issued in ac cordance with sub c lause 8.1 (Completion

Certificate ) of the GCC.

32 Party shall mea n Co rpo rat ion or Contrac tor, as the conte xt req uires.33 Performance Guarantee is the guarantee to be submitted by the Contractor to the

Corporation in accordance with sub-clause No. 4.2.3 (Performance Guarantee) of the

GCC.

34 Piece rate work me ans any wo rk for which lab our is paid o n the b asis of eac h unitof product produced .

35 Pre-Commissioning means the testing, checking and other requirements specified inthe tec hnic al spe c ifications that are to be c arried out b y the c ontrac tor in p rep aration

8/3/2019 WMVol-1

18/186

sha ll inc lude of the follow ing b ank g roup s (i) Sta te Bank of Ind ia a nd its assoc iates, (ii)

Nationalized Banks, (iii) Regional Rural Banks, (iv) Foreign Banks and (v) Other Indian

Sched uled Com merc ial Banks (in the p rivate sec to r).

39 Site means the places where Works are to be executed, including storage andworking areas, and to which Plant and Materials are to be delivered and any otherp lac es as ma y be spec ified in the Contrac t a s forming p a rt of the Site .

40 Spec ifica tion mea ns the spec ification of the w orks included in the c ontrac t a nd anymod ification / ad dition ma de o r ap proved b y the EIC.

41 Sub-Contractor me ans any p erson nam ed in the Contrac t as a Sub-Co ntrac tor, or any person a ppointed as a Sub-Co ntrac tor, for a p a rt of the Works;

and the legal successors in title to each of these persons. Piece rate Contractors

a re not t o b e c onsidered a s Sub-Contrac tor.

42 Substituted items are the items which substitute the existing ones or are taken upin lieu of those a lrea dy provided in the contrac t.

43 "Tem po rary Works sha ll me an all tem po rary wo rks of every kind req uired in or aboutthe execution, com pletion or ma intena nce of the Works.

44 "Urgent Works" shall mean any urgent measures which, in the opinion of EIC,bec ome ne cessary during the p rog ress of Work to ob viate risk of a cc ident o r failureor which b ec om e nec essary for sec urity and sa fety.

45 A Variation is an instruction / c om munica tion g iven by EIC o r his rep resenta tive,which va ries the wo rks, origina lly intend ed .

46 WCMS sha ll me an the Work Co ntrac t Ma nage me nt System softwa re used by NPCILfor hand ling wo rks contrac t.

47 Work order is the formal communica tion by the Corporation to the bidde r whose bidhas been ac c epted

48 Works shall mean the works to be executed in accordance with the Contract orpart(s) thereof a s the c ase may be and sha ll inc lude a ll extra or ad d itional, altered

or substituted works as required for execution of the Contract. It shall include

va riations and urgent works.

Note: (1) Any term which is not d efined herein but d efined unde r different ena c tme ntshall be construed to ha ve the sam e me aning as de fined in the ac t.

Note: (2) All the above mentioned definitions have already been defined in the

Gene ral Cond itions of Contrac t duly ap proved by NPCIL Boa rd. The ab ove

definitions have been incorporated in the document for having an easy reference and

to de velop a c onsolida ted c onstruction manag eme nt manual Howe ver in ca se of

8/3/2019 WMVol-1

19/186

NPCIL is responsible for design, construction, operation and life time management

of Nuc lear Pow er Plants. The c onstruct ion of Nuc lear Pow er Plants and assoc iate d

infrastructure inc luding township invo lve w orks in va rious d isc iplines of eng ineering

suc h as Civil, Elec tric a l, Me chanica l, Co ntrol & Instrumenta tion, Pip ing, etc .

The p la nts under operation a lso ne ed va rious wo rks to b e e xecuted for operation& m a intena nc e o f fa c ilities. These inc lude m a intena nc e o f p lant system s, wo rks

related to shutdown jobs, housekeeping, transport, Hospitality services and other

similar works.

For each project there would be Network at various levels, assigning specific time

slots to eac h construc tion ac tivity - there wo uld b e hund red s of such capsules. It is

nee d less to stress that every item of c onstruct ion shou ld be me ticulously

planne d and exec uted in its a llotte d time slot so a s to achieve the o verall

Projec t Target , wh ile ma intaining the highest sta ndards of qua lity, sa fety andfinanc ia l propriety.

Simila rly for the op erat ing Sta tions the re wo uld b e Networks a t va rious

leve ls, assigning spec ific time slots to ea ch of o peration a nd ma intena nc e

ac tivity as well as ad d ition of any new fac ility to me et the sta tion req uirement.

Projec t o r Sta tion Autho rities will be prima rily responsible fo r exec ution of

wo rks connec ted with the respec tive units with suitab le a ssista nc e from NPCIL

Hea d Qua rters as and whe n nec essary.

Norma lly a ll wo rks" will be executed throug h 'Contrac ts' by c all of' suita b le

tend er, excep t for wo rks of very spec ial na ture or urgent rep a ir wo rks or routine

de pa rtme ntal maintenance wo rks.

These Guide lines assume Design a nd Deta iled Eng ineering are rea dy be fore

c omm enc eme nt of any wo rk a nd de al w ith all aspe c ts of c onstruction

ma nage me nt inc luding Financ ia l and Ad ministra tive App rova ls. These wo ulda id the Construction Ma nage r in imp lementing the Contrac ts as per the

Sta nd ard G ene ra l Co nd itions of Contrac t issued for this purpose.

Howeve r, in sp ite of the best efforts to foresee and p rovide for eve ry

c ont ingenc y, the re ma y a rise som e issues or som e parts of wo rks which ma y

not b e c overed by the G UIDELINES. In suc h c ases the Eng ineer should c onsult his

next superior. In c ase the issue remains unresolved a t a Unit, then Corpo rate Office

should be c onsulted for c larifica tions/ instruct ions.

Generally all materials of general nature involved in the work should be

inc lude d in Co ntrac tor's sc op e. Departme nta l proc urement involves ad d itionalestablishment cost, storage cost, locked-up inventory, additional records

keep ing, wa tc h and wa rd , issue, and a lso possib le loss and dam age in

storage.

8/3/2019 WMVol-1

20/186

1.2.1 WORKS WORKS as per dict ionary mean Prod uc ts of lab our result of ac tion; architec tural or

engineering operations.

General guidelines before commencement of any work assume that design, detailed

eng ineering, tec hnical spe c ificat ion, ad ministrat ive a pp rova l, financ ial sanc tion, mod e

of tend ering etc , are dec ide d a nd d eviations if any, in tendering p roc ess are ap proved

by the Comp etent Authority with full justifica tion. This wo uld fac ilitate Eng ineer-In-

Cha rge (EIC) to execute the c ontrac t as pe r the General Cond itions of Contrac t. In

c ase of a ny difficulty in unde rstand ing the c ontrac t c ond itions, it is rec om mende d that

EIC sha ll consult Sr. Offic ers to ob ta in c larific a tions / instruc tions.

It is also expected that the aspects of defining the tender instructions and scope of

wo rk inc luding the wo rks unde r the scop e o f c ontrac tor, the items to b e supp lied by thecontrac tor or corporation have b een fully understood and considered b y the EIC. The

quantum of resources to be mobilized by the contractor in terms of human resource,

ma terial and ma terial hand ling equipment etc . are we ll de fined . It is also expe c ted tha t

the space requirement for the storage of material, office establishment, testing facilities,

etc ., those a re to be esta blished by the contrac tor, the sec urity aspe c ts those a re to be

ob served by the c ontrac tor and his pe rsonnel, respo nsibility of the contrac tor towards

any possible loss and damage of material during storage or during execution of the

contract are clearly understood by the EIC. It is also expected that the work shall be

executed as per the schedule of quantities and rates and variations are kept to bare

minimum.

Ce ntra l Vigilanc e Com mission (CVC ) issues guide lines from t ime to t ime. These

guidelines also need to be considered and due care is taken in defining the scope of

work at the tendering stage and contract should be executed as per the scope

de fined in co ntrac t. In ca se of deviation from c ontrac t for any reason, it is expec ted

from EIC that full justification and the cost implications shall be properly recorded and

ap proved by the Com pe tent Authority. It is de sirab le tha t the need for such exige nc iesis foreseen in advance and the variation limits are minimized to the extent possible. It is

also expected that the rate analysis for extra / substituted items are carefully worked

out either with ABC a na lysis OR esta blishing the ma rket rates with justifica tion a nd bac k

up d oc uments OR in ab senc e of such de ta ils, the ac tual consump tion of man da ys and

material shall be considered. It is also desirable that the rate analysis from the

contractor is obtained and the same shall be analyzed by the EIC and approval from

Com pe tent Authority is ob ta ined be fore exec ution of such item s.

The w orks can be c lassified in the fo llow ing c a teg ories:

1.2.2 ORIGINAL WORKS

"Orig inal wo rks" mea n the wo rks com prising o f a ll new construct ions, whe ther of

ent irely new wo rks or of ad d itions and alte rations to existing works and purchases and

8/3/2019 WMVol-1

21/186

1.2.3 REPAIR WORKS

The rep a ir wo rks a re ge nerally ca rried out on the po rtion o f existing structure, roads,

bridges, plant and machinery, systems etc. where part or portion need to be replaced

or remodelled to bring back to the operating conditions. However, in case the cost of

the c hang e represents a g enuine and substantial increase in the va lue o f the p rop erty,the work of replacement or remodelling, as the case may be, shall be classified as

orig inal work. The rep a ir wo rks sha ll be p lanned, estima tes a re p rep ared and due

ap proval from comp etent a uthority is ob tained.

1.2.4 PETTY WORKS

The expenditure on m inor ad d itions or alterations to b uild ings, roa ds and p lant &

ma chinery e tc ., where estima ted cost is not excee d ing Rs.50,000/- (a s per existing DFP)

will be te rmed as pe tty wo rk.

In case of pe tty wo rks, the aw ard as w ell a s all de viations befo re aw ard and during

execution o f wo rk including qua ntity va riat ions up to 100% shall be ap proved by

PD/SD/ED (CPE/ CCE/ CS if sta tioned as Unit Head ) provided the p rop osa l has been

review ed by 2 Eng ineers of the releva nt Sec tion. No Financ ial Conc urrenc e is

nec essary while aw arding pe tty wo rks a nd ap proving the de viations, if any. Tota l

value (inc luding variation) o f such va rious pe tty c ontrac ts should no t excee d the

limit spec ified in DFP for a Unit in a financ ial yea r. How eve r, the ma ximum

expend iture a ga inst p etty w orks at ea c h unit und er Revenue / Ca pital hea d should

be as p er the outlay spe c ific ally provided in the bud ge t unde r sep arate hea ds for

bo th Revenue and Cap ital nature of wo rks. In order to exerc ise be tter control on

pe tty w orks, a sta tem ent with full details of the pe tty contrac ts aw arded during

ea ch m onth (inc luding variat ions, etc ., if a ny) should invariab ly be sent by the

Hea d of the conc erned Sec tion to Financ e Dep artment of the Site in the first

we ek of follow ing mo nth. Non-submission of mo nthly sta tem ent sha ll result in return

of wo rk orde r issued by conc erned Sec tion under "Pet ty Works" by Financ e without

pa yment. Financ e sec tion shall carry o ut po st aud it on rand om ba sis andom issions, if any not ice d , sha ll be reported to PD/SD/ED for correc tive ac tion in future.

1.2.5 DEPOSIT WORKS

The term Deposit work is applied to the w orks of c onstruct ion or rep a irs, the c ost of

which is not m et o ut of the fund s of the organisat ion w ho e xec utes the w orks, but b eing

financ ed by other pub lic b od ies/ o rga nisa tions. In NPCIL this can be in two ca tego ries

(a ) The works exec uted fo r NPCIL by o ther public b od ies/ orga nisa tion whe re thecorporations funds is deposited with other public bodies/organisations.

(b ) The w orks exec uted by NPCIL for othe r pub lic bod ies/ orga nisat ions whe re fund s

are d ep osited w ith NPCIL by othe r public b od ies/ orga nisa tions.

8/3/2019 WMVol-1

22/186

1.2.6 STAGES OF WORK

As per DFP, approvals are required at various stages of work. After receipt of a request

for execution of work, a preliminary estimate is prepared to give an idea of the

approximate c ost involved . In other words, it is refe rred as b lock estima te .

There a re four basic p re-req uisites, which a re required to b e fulfilled be fore exec ution o f

any w ork.

1. Administrative a pp rova l

2. Financ ial sanc tion

3. Tec hnica l sanc tion

4. Approp riat ion or re-ap prop riat ion of fund s.

The forma l ac cep tanc e o f the p rop osal of the w ork to be executed with preliminary

estimates is termed as administrative approval. Administrative approval by the

Competent Authority is required for every work. In case of Main Plant works, it is

recommended that comprehensive administrative approval, except for township

works, shall be ob ta ined from the c ompe tent authority. The ad ministrative po wers of

va rious autho rities have been defined in Annexure-2.2. Afte r the administrative

approval is received from the competent authority, the financial sanction is to beac corded indica ting tha t the fund for the w ork has bee n provide d for and liab ility c an

be incurred . Financ ial sanc tion for the p rojec t unde r construct ion is orig inally given by

Govt. of India fo r ent ire p rojec t und er various ma jor hea ds or sub hea ds. The financ ial

sanc tion for op erat ing sta tions is given o n yea rly basis under reve nue b udget .

After receipt of administrative approval and financial sanction, detailed estimates are

required to be p repa red for tec hnical sanc tion. App roval from the co mp etent

authority for detailed estimate of the work with full justification for estimated rates and

quantities is te rmed a s Tec hnica l Sanc tion. This include s the b ac kground o f work,

general scop e of wo rk, time d uration of work and the m od e of tend ering. A tec hnical

sanction shall also include the budget provisions, provided in the cost estimates as well

as in the financ ial year for the sa id wo rk. The tec hnica l sanc tion sha ll be signed by the

authority preparing the technical sanction, reviewed by next senior officer and

ap proved by the Comp etent Authority as pe r DFP. With the view to fa c ilita te and

speeding of the scrutiny of estimates, a check list of points should be drawn and it

should be ensured that technical sanction is complete in all respects giving relevant

de ta ils etc . It should also be ensured tha t contingenc y is ad de d in technic al sanc tion,in orde r to c op e up w ith the exige nc ies. Further cha pters in the ma nual elab orate the

me thod o f wo rking out the rate ana lysis for preparation of c ost estima tes with illustrativeexamples.

Approp riat ion m ea ns assignm ent, to meet spe c ified expend iture o f funds, inc lude d in a

8/3/2019 WMVol-1

23/186

c arry out nec essary wo rk with intima tion to the Ma nage r (F&A), tha t he is incurring

unautho rized liab ility, sta ting the rein the approximate amo unt of liab ility. The

Engineer should pursue his action to obtain Administrative Approval and Financial

Sanc tion and to a ccord Tec hnical Sanc tion to reg ularize the a c tion taken by him in

incurring the una uthorized liab ility, as ea rly as possible. The insta nc es of inc urring o f

unauthorized liability should be resorted in exceptional cases and after requiredSanc tion / Autho rity is issued by the C MD/ PD/SD/ED, as the case m ay be.

1.2.7 PREPARATION OF TECHNICAL SPECIFICATIONSIt is extremely essential to review the technical specifications which form part of tender

do cument. The te chnic al spe c ifica tion inc lude s the various spe c ificat ions to be

complied while executing the work or technical specifications for procurement of

various items unde r the scop e o f Contrac tor or by the de pa rtme nt. The tec hnic al

specification also includes inspection and testing requirement essentially required forthe execution o f wo rk. The te chnical spe c ificat ion also inc lude s the de sign intent and

de tailed d rawings req uired for execution of the w ork. Sometimes it m ay be nec essary

tha t fa bric at ion d raw ings or in other words ac tua l working draw ings are required to be

prepared by the contracting agencies as a part of the technical specifications. It is

expected that a detailed construction methodology and/or various working

procedures are developed by the contracting agencies as a part of technical

specifications.

It is therefore expected that EIC shall thoroughly review all the technical specifications

in terms of I.S. c od e/ ASME cod e/ ASTM spec ific at ions/ BS spe c ific at ions or any o ther

spe c ificat ions referred in technic al spe c ific ations and bring out any am biguity. A list o f

codes/specification is enclosed as Annexure 1.1. It is also expected that various

tolerances, finishes etc., referred in the specifications are thoroughly understood. In

c ase o f multi disc iplinary contrac t, the tec hnic al spe c ificat ion fo r different disc ipline o f

the work such as civil, mechanical, electrical, control & instrumentation shall also be

fully understood and integrated before preparation of tender document. It may

sometimes happen that such a multi disciplinary contract may need additionalresource s in terms of infrastruc ture o r provid ing various test fa c ilities. The EIC is expec te d

to review and understand technical specifications in depth and envisage the cost

imp lica tions of suc h req uirem ents. The need of va rious testing gadge ts suc h as op tical

alignment instrument, laser equipment for precision alignment are also required to be

examined by the EIC while review ing t he technic al spe c ific at ion.

It is also expected that the requirement of mock ups is also worked out by the EIC in

c ase felt nec essary. Suc h req uirements be com e essent ial while hand ling a nd e rec tion

of large and heavy equipments, concreting of complicated joints/pours and/or very

prec ision assem blies to b e ta ken up in a rad iation a rea s or otherwise. It is expe c ted

that cost implications for all such technical requirements shall be clearly brought out

while prepa ring de ta iled c ost e stimate s.

1.2.8 GENERAL CONDITIONS OF CONTRACTS

8/3/2019 WMVol-1

24/186

carefully drafted in a predefined sequential manner and be included as a part of

tend er with the a pp rova l of c ontrac t a pp roving a uthority. The SCC supe rsed es the

particular clause of GCC under specific circumstances. In case of any deviation from

GCC the sam e shall be forwarded to CM D for ap prova l.

1.2.10 SCHEDULE OF DRAWINGSIt is essential that the list of drawings, which are required for execution of the work, be

listed in the tender. EIC should ensure that sufficient information either in the form of

tender drawings or erection drawings or general layout of the area is included in the

tend er so that the sc op e o f wo rk is we ll understoo d by tend erer.

1.2.11 MATERIAL TO BE SUPPLIED BY THE CORPORATIONThe list o f ma terials inc luding plant and ma chinery to b e supp lied by the C orporationeither as a free issue material or on chargeable basis shall be included in the tender.

The hourly/ da ily cha rge s of the plant and ma chinery shall also be prepa red and should

be g ot a pp roved b y the com pe tent a uthority. It is also expec ted that unit energy cost is

wo rked out and ap proved for supp ly of elec tric po wer to the c ontrac tor. Similarly, sma ll

value c ontrac ts which need costly resources to b e m ob ilized by the Co ntrac tor shall be

c arefully examined w hile preparing the tender. These mea sures sha ll avoid delay in

execution of the wo rk.

1.2.12 SCHEDULE OF RATESTo fa c ilitate the p rep arat ion of estima tes, and a lso to serve as a g uide in finalizing ra tes

during the course of execution of contract, a schedule of rates for each kind of work

commonly executed should be maintained up to date in the units duly approved by

the Unit hea d . It should b e p rep ared on the ba sis of the rates preva iling in each unit

and necessary analysis of the rates for each description of work and for varying

conditions thereof should, so far as practicable, be recorded. Further chapters in the

ma nual elab orate p rep aration of sched ule of rates.

8/3/2019 WMVol-1

25/186

SECTION-2

BUDGET & COST ESTIMATES

PROCESS OBJECTIVES

Prep arat ion and submission of budget a s per guide lines

Prep arat ion of revised estima tes as per the g uidelines

Ob ta in initia l ap prova ls req uired for taking up wo rks in NPCIL

Ob ta in a d eta iled estimate for proposal ba sed on Sched ule of rates

2.1 PREPARATION AND COMPILATION OF BUDGET

2.1.1 BUDGET

The Annua l Financ ial Sta tem ent , popularly known a s the Budge t c ove rs the NPCIL

transactions of all kinds, occurring during the financial year in which the statement is

prep ared as we ll as during the ensuing yea r. The b udge t estima te a nd its utiliza tion

sha ll be d ea lt ca utiously.

2.1.2 BUDGET ESTIMATE / REVISED ESTIMATES

The estimate s of the current financ ial yea r which are b ased on the ac tual transac tions

rec orded till the time o f their preparation and the transac tion anticipa ted for the rest of

the yea r are termed as Revised Estima te . The estima tes for the ensuing financ ial year

ba sed on the transac tions antic ipa ted are termed as Budg et Estimate s .

The instruct ions about the p roc ed ure for the p rep aration of the Budget Estima tes/

Revised Estimates are issued by the Budget section, NPCIL Corporate Headquartersfrom t ime to time.

2.1.3 CLASSIFICATION OF EXPENDITURE

The to ta l expend iture is c lassified in two categ ories i.e.,

a) Ca pital Expend iture (Cap ita l bud ge t)

Expend iture relat ing to a ll ma jor (Original) Works/ Projec ts is fa lling und er Ca p italExpend iture a nd schedule of Dema nds for such wo rks form the p art of Ca pital Budg et.

Further Capital Expenditure may broadly be defined as expenditure incurred with the

object of tangible creation/increasing/acquiring of assets of permanent character.

Ca p ital expend iture is incurred for the fo llow ing purposes:

8/3/2019 WMVol-1

26/186

Carriage inwa rds on mac hinery bo ught

Lea se c ost of ac quiring b uilding / prope rty

Putting old assets into wo rking c ond ition

Extension or imp rovem ent of a n a sset ; to inc rease useful life o f an a sset / toreduc e c ost of p rod uction/ to improve its revenue ea rning c ap ac ity

Any othe r c ost nee de d to ma ke a fixed asset read y for use including

modification & replacement of existing assets.

b) Revenue expend iture (Revenue Budg et)

All expenditure relating to maintenance and repair to Building, Plant & Machinery,

Equipm ents, Systems, & Ad ministrat ion Esta b lishment a re falling und er revenue

Expend iture a nd sched ule o f de ma nds for such item o f wo rks form the p art of Revenue

Budget.

Reve nue expe nd iture is incurred for the follow ing p urposes:

Purchasing/ ma nufacturing/ ma rketing of go ods

Ma intaining the fixed a ssets

Protec tion and Safety of b usiness

Employee cost

Ad ministrative c ost, etc

The expend iture is req uired to b e show n sep ara tely unde r reve nue expend iture and

c apita l expend iture. It is essent ial tha t expend iture of capita l na ture sha ll bedistinguished with respe c t to revenue e xpend iture in the budg et estimates. It ma y be

broadly summarized that capital expenditure is incurred while the project is under

c onstruc tion and revenue expend iture is incurred when the p rojec t is c onverted into a

sta tion and b ec om es com me rcial. The cap italiza tion of funds is also nec essa ry for

finaliza tion of unit ene rgy c ost for the p rojec t. The revenue e xpend iture is inc urred

when the plant is under operation and the same shall be kept to an optimum level.

Therefore it is essent ial tha t a uxilia ry c ost o f the po we r plant , esta b lishme nt c ha rges and

optimization of human resource are carefully worked out to keep the revenue

expend iture minimum . However, when there is a m ajor up grad at ion or mod ernizat ionof the operating plant, this portion of the budget can be reclassified as capital

expenditure.

2.1.4 ACCOUNT CODE

8/3/2019 WMVol-1

27/186

etc. and in case of station, each section such as training, operation group,

maintenance group, technical services group etc. shall prepare detailed budget

estimates before commencement of financial year and submit to planning or finance

de pa rtme nt. This bud ge t estimate must take into ac c ount the jobs which are req uired

to be taken up during the subsequent financial year and to be accounted against a

pa rticular ac count cod e. The financ e group rend ers assistance in prep aration,c hec king and consolida tion of budg et estimate s as we ll as revised estimate s. Budg et

estimates shall include all the financial requirements including grant in aides,

expe nd iture tow ards corpo rate soc ial responsibilities, estab lishme nt c harge s, in add ition

to the expend iture envisag ed in tec hnical area. The financ e dep artment after

ap prova l of the bud ge t estimate s / revised estimate s shall prepa re a de ta iled ba lance

sheet for the p articular unit a nd forward to HQs for final c om pilation. The b alanc e sheet

a lso inc ludes a ll ac count of taxation, receipts, expend itures, liab ilities and assets, sund ry

cha rge s and a ll other essent ial features of b alanc e shee t includ ing profit and loss.

2.1.5.1 PREPARATION OF BUDGET ESTIMATES

i) These dem ands should show furthe r deta ils of the provisions included in the Dema nd

for grant and also actual expenditure during the previous year. A break up of the

estimate by indicating the categories and nature of expenditure incurred on salaries,

wages travel expenses, pension, foreign service contributions, loans and advances,

repayment of debt, materials and equipment, grant-in-aid etc., should also be given.

At the end of the detailed demand, the details of recoveries taken in reduction of

expend iture in the a ccounts.

ii) No outlay for new works/projects should be proposed in cases when no

ad ministrat ive a nd expend iture a pp rova l are issued by the compe tent a uthority.

iii) The sched ules a re to be p rep ared sep ara tely for

Projec ts whe re expend iture sanc tion has a lrea dy be en issued .

Projec ts whe re expend iture sanc tion has not so fa r been issued .

The p rojec ts whe re financ ial sanc tion ha s no t so fa r been issued , but there is a nee d for

ta king up the wo rks (These w orks are p art o f Pre-Projec t a c tivities), in p rincip le approva l

of the c om pe tent a uthority shall essentially be ob ta ined . Gene rally, the works unde r

the category of pre-project activities include acquisition of land for new projects, soil

investigation, consultancy fee, infrastructure facilities at project site, housing etc. It is

essential that all the major heads and sub heads are considered in cost estimates while

taking the financ ial sanc tion from Government of India for a new project .

iv) In case of capital works in progress, the revised estimates for current year andBudget Estimates for ensuing year shall be prepared giving the following details for the

works:

8/3/2019 WMVol-1

28/186

7)Deta iled rea sons for variat ions, if any, be tween (4) & (6)

8)Tota ls of (3) and (6)

9)Req uirem ents for the ensuing year

10)Reasons for variations, if any, between (6) & (9)

v) The budget p rovisions for residential b uild ings sha ll c learly indicate estima tes for

va rious d isc iplines suc h as c ivil works, elec trica l works, air-c onditioning , furnishing,

c om pute rs and LAN services, te lepho nes etc . Similarly, the budget estima tes for

technica l multi disc iplinary works sha ll a lso include estima te of individua l disc iplines suc h

as mechanical, huma n resources, testing cha rge s, com merc ial cha rge s etc . The

above statements are illustrative in nature indicating the importance of preparation of

a d eta iled b udge t estima te.

The budg et estimate shall also include the time p eriod of the job to b e exec uted . It is

quite likely that the part of the job may spill over to the next financial year and hence

suitab le p rovisions sha ll be ma de in revised estima tes as we ll as in bud ge t e stima tes for

subsequent year.

In case of Lump sum payment and also when there exists provision in the financial

sanction and the budget estimates are now being planned may have a plan or non

planned expenditures; detail justification shall be incorporated in preparation of thebud ge t estima tes in suppo rt of the d ema nds ma de .

[The lump sum b udg et e stimate s are p rep ared when job is of turn key in na ture and

includes design, supp ly, erec tion and c om missioning. Cha nges in lump sum cont rac ts

are not envisag ed ].

2.1.5.2 PREPARATION OF REVISED ESTIMATES

i) Rev ised Estima tes should indica te the req uirem ents for the current financ ial yea r vis-a-vis the p revious Dem ands for Grant/ Budge t Estima tes submitted last yea r. The rea sons

for variat ions be tween the tw o a re to b e recorded , wherever req uired . This sta tem ent

should include the items carried forward from the last year and indicate separately

item s for reg nant of lap sed item s, new items if any, ap proved or likely to be ap proved

for exec ution during the current financ ial yea r.

ii) In all cases, administrative approvals accorded or likely to be accorded during the

current financ ial yea r should be indicated ag ainst ea ch item.

iii) While making provision in the Revised estimate for the current financial year, proper

assessment of progress of the works for which the funds are required shall be made,

keeping in view the availability of area/inputs required for the work, call of tenders,

selection of c ontrac tor and ac tual c omm enceme nt of the work.

2 1 6 NEW ITEMSOF EXPENDITUREORFRESH CHARGES

8/3/2019 WMVol-1

29/186

2.1.6 NEW ITEMS OF EXPENDITURE OR FRESH CHARGES

Proposals in respect of new expenditure or fresh charges, if any, shall be prepared by

Hea ds of the units/ other estima ting a utho rities and submitte d to Budge t Sec tion we ll in

time for ob taining a pp rova l of co mp etent a uthority to include them in the Budg et.

i) The te rm New Expend itures app lies not o nly to expenditure on new items / services,provision for which has not been previously included in the sanctioned grants or

ap po rtioned , but also inc lude s the expend iture involved on ad d itions to the existing

servic es / c om mitments ma de in the earlier budge t estima tes. Suc h provisions ma y

occur due to natural calamities, additional demands in rehabilitation packages,

expenditure needed for development of neighborhood, corporate social

responsibilities, the c hange for grant in aide s and esta b lishme nt cha rge s etc . This ma y

also inc lude emergenc y shut d ow n jobs, meeting stipulat ions of reg ulatory boards and

up grad at ion of the system due to unforeseen rea sons.

In case of d oub t whe ther expe nditure of a pa rticular kind should be in the sta tem ent o f

new expend iture, the ma tter shall be referred to Budg et sec tion for clarific at ion.

ii) No scheme of new expenditure will be included in the Budget unless it is complete

and finally approved. While submitting proposals for new expenditure or fresh charges,

ad ministrative difficulties and time need ed for sanc tion should a lways be b orne in m ind.

Further am ount rec ommende d for provision in the Budg et should b e in line w ith a mount

likely to be spe nt d uring the c ourse o f the financ ial year.

2.1.7 INEVITABLE PAYMENTS

i) The a mo unt indisputa bly payable should not , as fa r as possible, be left unpa id and

the p ayme nts mad e should not b e kept out of ac counts. It is very imp ortant tha t a c tual

obligations should be accessed at the earliest possible date and the payments are

ma de. Suitab le provisions for ant icipa ted liabilities should , therefore, inva riab ly be m ade

in the Budg et.

ii) The finance g roup is not expe c ted to a utho rize a ny pa yme nt unless, this has been

ap proved by the com pe tent authority and p rovided in a partic ular ac count cod e. If

excess payment, against a particular work is required to be apportioned, the approval

by the competent authority shall be obtained before enhancing the provisions under

the pa rticular ac count c od e. The EIC hand ling the c ontrac t is therefore, expe c ted to

keep a stric t c ontrol on the financ ial outlay of the contrac t a nd ta ke timely ac tion for

smoo th hand ling o f the c ontrac t.

2.1.8 PERFORMANCE BUDGET

Performance Budgeting forms an essential and integral part of the annual budgetary

process. It is intended to play an important role by fixing targets for various schemes

activities based on norms and performance standards fixed for different

h it th b d h t f i t d i t i

8/3/2019 WMVol-1

30/186

such unit may then b ec om e necessary and such a transfer is termed re-ap propriat ion

whic h ca n be sanc tioned only by the comp etent a uthority.

2.1.9.1 GENERAL INSTRUCTIONS:

i) Re-ap propriat ion o f funds shall be ma de only when it is known o r anticipa ted that the

approp riation for the unit from which funds are to be transferred will not b e ut ilized in fullor that savings can b e a ffec ted in the a pp rop riat ion for the said unit.

ii) Funds shall not be re-appropriated from a unit with the intention of restoring the

diverted appropriation to that unit when savings become available under other units

later in the yea r.

iii) All re-appropriation orders are issued with reference to unit of appropriation in the

de ta iled demand s for grants.

iv) The EIC o f works while submitting app lic at ion for re- a pp rop riation should ta ke into

ac count the ab ove and subm it his propo sals by sta ting w hether the re-ap prop riat ion is

possible within his ow n budge t in the sec tion.

v) Re-appropriation can be authorized at any time before, but not after the expiry of

the financial year to which such grant of appropriation relates. All such orders must be

com munica ted to the Sr. Mang er (F&A) c onc erned, be fore the 31st Ma rch of the yea r.

vi) Transfer of funds from one primary unit o f app rop riation und er the same grant and

involving two or more sections does not amount to re-appropriation because

Appropriation Accounts are prepared on the basis of the total grant under a particular

prima ry unit o f app rop riation.

2.1.9.2 RESTRICTIONS ON APPROPRIATIONS / RE-APPROPRIATIONS

I) Funds shall not be appropriated or re-appropriated to meet the expenditure which

has not b een sanc tioned by a n authority comp etent to sanc tion it.

ii) Funds shall not b e a pp rop riated or re-ap propriated to m eet expend iture on a ne w

service not c ontemp late d in the budg et.

iii) Re-appropriation is not permissible for any work, which has not received

administrative approval and expenditure sanction as prescribed by the Rules from time

to time.

iv) The a mount thus ap propriate d should not exce ed the a mount a pp roved orsanc tioned for the w ork by the p ermissible limit fo r exc ess which is autho rized under the

Rules.

v) The t ransfer or rea lloc at ion of fund s betw een d ifferent sc hem es prov ision for which is

made in the same primary unit of appropriation does not constitute re-appropriation

viii) The una ntic ipa ted c red its i e cred its not p rovided neither in the b udge t nor in

8/3/2019 WMVol-1

31/186

viii) The una ntic ipa ted c red its i.e., cred its not p rovided neither in the b udge t nor in

exce ss of the am ounts inc luded therein, which a re a cc ounted for as minus expend iture

shall not b e re-app rop riated to a ny work.

2.1.10 CONTROL OF EXPENDITURE

A constant watch is required to be kept on variations so that as soon as it becomesclear that the funds are likely to be in excess or in short, action can be taken to

surrender the savings or to obtain sanction for re-appropriation. In order to maintain

proper control over the expenditure, a record of liabilities and commitments that have

been or will be made or incurred against the budget allotments should be maintained

by the EIC of wo rk. It is advisable to p rep are quarte rly financ ial sta tem ents and fo rwa rd

it to Financ e Dep artment for cross chec king in order to keep the financ ial rec ords

straight.

2.2 PRELIMINARY ESTIMATE & APPROVALS

2.2.1 PRELIMINARY ESTIMATE

Preliminary estimate is required to be prepared on the basis of plinth area for civil works

and on unit ra te ba sis for the wo rks of othe r d isc iplines or wo rked out on ava ilab le

ma rket rate basis or such other method ad op ted for rea dy a nd rough c alculat ion, so as

to g ive an idea o f the ap proxima te c ost involved in the prop osal.

In case of major works of various kinds, structures or special works, data required for

preparation of such estimate shall be collected from agencies who have executed

similar wo rks in recent time s.

The p relimina ry estima tes sha ll be b ased on the following:

a) Preliminary drawings and specifications prepared in consultation with users and

Design-Engineers incorporating specific requirements of regulatory bodies or local

autho rities for the work. The estima tes prep ared by Consultants or similar da ta ava ilab leby virtue of experience in past in handling similar contracts can also be used for

prep aring the p reliminary estima tes.

b) Adequate site investigations to collect data for fixing design parameters for works,

prior to taking up c onstruc tion, erec tion or up-grad at ion wherever nec essary.

c ) The imp ac t o f environme ntal c ond itions (like rad iation / non-radiation a rea s), limited

access control, security aspects, verification of contract labours, type of contractlabour required, etc., shall be factored for block estimates / preliminary estimates.

d) Vendor survey / Market survey conducted wherever essential to fix proper

comm erc ial and te chnical paramete rs.

e) Suitable to po grap hic al survey c ond uc ted and nec essary survey p lans to suitable

iii) Whether for the works proposed necessary financial sanction and budget provisions

8/3/2019 WMVol-1

32/186

iii) Whether for the works proposed, necessary financial sanction and budget provisions

are a vailab le.

iv) Whether any re-ap prop riat ion o f fund envisag ed .

2.2.2 ADMINISTRATIVE APPROVAL & FINANCIAL SANCTION

The fo rma l ac c ep tance of the propo sal c onta ined in the Preliminary Estimate is termed

as Ad ministrat ive Ap prova l. Financ ial Sanc tion is to b e a ccorded to indica te that fund s

for the project will be provided and liability can be incurred. In case of projects where

Government of India sanction already exists, both Administrative Approval and

Financ ial Sanc tion should b e ta ken tog ether. Only in respec t of c onstruct ion work on

Housing a nd Pub lic Build ings both Ad ministrative Approva l and Financ ial Sanc tion

shou ld be ta ken sep a rately. The p rop osal should c om prise o f the fo llow ing:

Brief background of work and justification

Bloc k estimate , inc luding financ ia l imp lic at ion o f the propo sal

Cost b ene fit ana lysis

Leg al / othe r imp licat ions of the propo sal

Ana lysis of a va ilab le op tions & a lternatives and their implica tions

2.2.2.1 ADMINISTRATIVE APPROVAL

Works c onnec ted with power projects rec eive Ad ministrat ive and Financ ial Sanc tion

when the Government a pp roves setting up o f the Power Projec t a t a p artic ular loc at ion

along with Detailed Project Report and cost estimate. Entire scope of works that are

envisaged for setting up of a Power Project is normally covered under this Financial

Sanc tion. It is however nec essary to ob ta in Adm inistrat ive App rova l to take up the

individua l works of the Power Projec t a s pe r app roved time sched ule. Pow ers to ac cordthis Administrative Approval to works connected with power project is given in

Annexure 2.2.

However, for works c onnec ted with Ope rat ing Sta tions, which are to be executed

through Revenue Budg et, Ad ministrat ive Approva l and Financ ial Sanc tion is ac corded

by the Boa rd while p assing of the a nnual Budg et. With respec t to wo rks to be executed

through Capital Budget for operating station, the Board can accord Administrative

Approva l and Financ ial Sanc tion up to the limit spe c ified as per DFP be yond which thesam e is to b e a c corde d by the Go vernment of India.

Construction work on Housing, Public Buildings and other infrastructure works (including

a lterations and mo d ifica tion of e xisting ho using build ings) sha ll not be c arried o ut unless

Administrative approval from CMD, NPCIL (with financial concurrence) is obtained in

advance Maintenance & up keeping work of such buildings can be approved at

2 2 2 2 FINANCIAL SANCTION

8/3/2019 WMVol-1

33/186

2.2.2.2 FINANCIAL SANCTION

As ind icated abo ve Financ ial Sanc tion with respe c t to new project is to

be issued by the Gove rnment subseq uent to ap prova l of Power Projec t at a

chosen loc at ion. Entire scop e of works tha t are e nvisag ed for setting up of a

Pow er Projec t is norma lly covered under this Financ ial Sanc tion. In orde r to find the

authority competent to accord financial sanction the engineer shall refer the

Delegation of Financial Power (HQI-2001). Any new works to be included in the scope

of already sanctioned project, costing less than Rs. 10 crores (as per DFP revised from

time to time) can be financ ially sanc tioned by CMD. For wo rks c onnec ted

with op erating stat ions which are to be executed throug h Revenue Budg et,

Financ ial Sanc tion is ac corded by the Boa rd w hile p assing o f the annua l

Budg et. With respe c t to wo rks to b e exec uted through c ap ita l budg et fo r

op erating units, CMD can ac cord financ ial sanc tion up to Rs. 10 c rores (as per DFP

revised from time to time).

Boa rd Sub-Com mittee c an ac cord financ ial sanc tion up to 50 c rores (as pe r DFP

revised from time to time), beyo nd this the sam e is to be ac corded by NPCIL Boa rd.

Financ ial Sanc tion can b e exceede d , if so required , at a ny stage during the execution

of the work up to 10% by the Competent Authority within his delegated powers. Any

excess beyond this limit w ill nec essitate revised Financ ial Sanc tion w hich should be

app lied for, as soo n as an exc ess is foresee n.

Original co ncep tual design in the ap proved proposal should not b e a ltered w ithout the

sanc tion of the authority which ac corded the ad ministrative ap prova l to the wo rk.

The t ab le show ing p linth a rea s rates for b lock estima te is given in Annexure 2.3 and

format for calculation of multiplication factor on plinth area rate based on the cost

inde x applica ble a t the time of prepa ration o f bloc k estimate is given in Annexure 2.4.

2.2.3 TECHNICAL SANCTION

After rec eipt o f Administrat ive Approval and Financ ial Sanc tion as explained a bo ve, a

de ta iled estimate is to b e p rep ared b ased on d eta iled d raw ings and design releva nt to

the wo rk and Tec hnical Sanc tion (TS) is to be ob ta ined from Com pe tent Authority a s

pe r the d elega tion of financ ial powers.

TS to the w ork a re to be a cc orde d b y Comp etent Autho rity as per DFP for works. Refe r

Annexure 2.5 for the forma t fo r of Tec hnica l Sanc tion. TS amo unt should include the

c ost o f free issue items which a re to be used in the finished items of w ork.

How ever, in the case w here TS is to be issued for insta lla tions and erec tion w orks for the

free issue item , suc h as eq uipment , Plant & Ma chinery etc . the TS amo unt should be

exc luding the c ost o f free issue o f eq uipments, Plant & Ma chinery, system s etc . It should

be ensured that the budg et p rovision d uly ap proved by C omp etent Authority ava ilab le

de velopm ent o f too ling a nd its valida tion if req uired , type o f resources to b e m ob ilized

8/3/2019 WMVol-1

34/186

p g q , yp

by the contractor, the resources to be supplied by the Corporation as free issue

materials or on chargeable basis, the type of inspection and testing required,

req uirement of m oc k-ups, the establishment c harges, profit & ove rhea ds etc .

It is expected that standard rate analysis is prepared for commonly used items by the

units to ha ve uniform rates for tec hnica l sanc tion. This wo uld be helpful in sat isfying

mo st of queries norma lly ra ised by CVC during the ir exam inations. It is a lso expec ted

tha t the final a mount o f the contrac t rema ins within the financ ial limits of Tec hnical

Sanc tion inc luding the co ntingenc ies. EIC must ob ta in revised tec hnica l sanc tion in

c ase the variat ion of final am ount is be yond 10% of the o riginal va lue.

Schedule o f Rates (SOR) sha ll be p rep ared for all works for ea c h unit. All estima tes sha ll

be b ased on approve d SORs. Till the fina liza tion o f SOR a t units, the detailed estima tes

shall acc om pa ny the rate ana lysis of eac h item. Further, if any of the item propo sed tobe exec uted is not inc luded in the a pprove d SOR, the ra te a na lysis of such item sha ll be

separately prepared and got approved by competent authority as part of technical

sanc tion Refer Annexure 2.6 for samp le c a lculat ion of ra te ana lysis.

It should be ensured tha t the TS amo unt fo r a p articu lar wo rk/packag e/ system is within

the sanctioned cost estimates otherwise appropriate action like re-appropriation from

overall p rojec t cost to be d one (if Go vernme nt of Ind ia sanc tion alrea dy exists) else

ap prova l of revised financ ial sanc tion has to b e ta ken.

2.2.4 PREPARATION OF DETAILED ESTIMATE

Preparation of detailed estimate and drawings and design should be taken up on

rec eipt o f nec essary Administrative Ap proval and Financ ial Sanc tion for the wo rks.

The d eta iled estima te sha ll consist of a rep ort, plans, spe c ifica tions and a deta iled

statement of measurements, quantities and rates etc. with an abstract showing the

tota l estima ted c ost of e ac h item. The report a ccomp anying the detailed estima te for

technical sanction should be comprehensive enough under each sub-head as

mentioned below:

i)Histo ry: Particula rs relat ing to initiation o f and rea sons lea d ing up to the prop osa l.

ii)Design: A description of the original proposal and those finally adopted with

refe renc e to design, ana lysis, spe c ifica tions and drawings.

iii)Sc op e: An e xplic it stat eme nt a s to wha t the wo rk is and is not covered by t heestimate , and whether any other arrang ements are be ing mad e for any portion of wo rk

which is not inc lude d in the estimate .

iv)Rates: Particulars as to how the rates are arrived at giving reference to the standard

Sched ule o f Rates and also to de tails ac com pa nying the estimate s, where nec essary,

ith l ti t d th ith

viii)Construction Plant: Any special methods of construction to be adopted with

8/3/2019 WMVol-1

35/186

) y p p

reference to spe c ific at ions or spe c ial tools and plant req uired .

ix)Land: Arrangement of acquisition of land where necessary.

x)Investiga tion: Req uirement of any consultanc y/ investiga tions or any other item whic h

has c ost imp lic at ions.

xi)Time: Estima ted time of c om pletion o f work, basis for the same . It is a lso

rec om mende d to enc lose a summ ary netw ork for the wo rk.

xii)Administrative Ap p rova l and Financ ial Sanc tion: Deta ils of Ad ministrative a pp roval

and Financ ial Sanc tion to be indica ted .

xiii)Budget Provision: Availability of approved Budget Provision with yearly cash flow

expected.

All tec hnica l sanc tions s

Date post:	06-Apr-2018
Category:	Documents
Upload:	suresh-kanniappan
View:	225 times
Download:	0 times

WMVol-1

Documents