CONTENTS - Central Public Works Department

124 SECTION 20
The element of building and other construction workers cess as applicable in the state / union territory
will not be applicable for purchase of materials.
(Modified provisions shall be applicable for the contracts where tender have been invited after issue of
O.M. No. 191 dt. 20.8.2009. (Added as per OM/MAN/191)
At the time of increasing contractor’s profit and overheads from 10 to 15% no change has been made
in the contractor’s profit @ 7.5 % as applicable earlier whereas the contractor’s overhead has been
increased from 2.5 to 7.5 % on account of following factors :-
(1) Cost of Engineering establishment deployed by the contractor.
(2) Cost of T&P and heavy machinery which includes tower crane, material hoists, excavators,
vibrators and heavy machinery for road constructions.
(3) Cost of cleaner environment at site & labour welfare facilities.
(4) Cost of Quality Assurance set up enhancing testing lab.
(5) Cost of office set up including engagement of necessary staff for computerized billing etc.
(6) Cost of Earnest Money/Performance Guarantee/ Security Deposits.
(7) Other miscellaneous expenditure.
Therefore no extra cost is to be added in justification on account of various factors mentioned
above.(Added as per OM/MAN/169)
No extra cost for T&P @2% is to be added in Standard Analysis of Rates prepared either to work out
estimated cost of item or market rate justification of the item for E&M works. (Added as per OM/MAN/184)
CP & OH @ 15% shall be followed for analysis of all items of work both Schedule & Non Schedule
pertaining to Civil, Electrical and Horticulture works etc. for the purpose of estimation, justification
and to the additional/substituted items/deviated quantities of items to the sanctioned on market rates
beyond deviation limit etc. carried out under the contract wherever applicable. However for running
works where contract has a provision of 10% CP&OH (Schedule F), only 10% is to be considered.
(Added as per OM/MAN/162)
20.4.3.2 Acceptance of tenders at justified rates with allowable variations
Apropos provisions under para 20.4.3 variation up to 5% over the justified rates may be ignored.
Variation up to 10% may be allowed for peculiar situations and in special circumstances. Reasons for
doing so shall be placed on record. Tenders above this limit should not be accepted.
20.4.4 Powers of acceptance of tender with stipulated issue of materials
In accordance with the CPWD Code, where materials are stipulated for issue to the contractor, the
net amount payable to the contractor after deducting the cost of the stipulated materials to be issued to the
contractor at the stipulated rates, shall determine the authority competent to accept the tender.
20.4.5 Acceptance of single tender
There are occasions when in response to call for tender only a single tender is received. The power
delegated to the various officers of this Department have been restricted to some extent with regard to
acceptance of single tender. These powers are given in the Appendix 1.
20.4.6 Award of work to contractors belonging to Scheduled Castes and Scheduled Tribes
Price preference, and earnest money concession shall be given to contractors belonging to Scheduled
Castes and Scheduled Tribes as per para 14.4 of this Manual.
20.4.7 Procedure for conducting negotiations
(1) Negotiations should not normally be conducted with the tenderer, but in case where it becomes
necessary to do so, negotiations should be restricted only to the lowest tenderer. If negotiations