Manual for Development Projects - Planning Commission

Chapter-7
schedule of rates in use needs to be updated continuously keeping in view the prevailing rates for
materials and the labour of various categories.
(d) In case of extraordinarily large contracts, the consultants have to prepare contract documents which
are generally based on FIDIC (Federation International Des Ungenerous - Conseils) format with special
stipulations in accordance with the complexity of the project. The consultants will also have to formulate
detailed specifications, which form part of contract documents. The tender documents will also indicate
the sources for the supply of main materials for construction. Pre-bid conference between the client/
consultant and the prospective bidders should be encouraged to sort out any deficiencies that the bidders
may bring out after study of documents and site inspection. It is also customary to convene pre-bid
meetings and record the minutes of all major decisions taken in the meeting.
(e) Sufficient time, depending on the magnitude of the works, should be allowed to the bidders to submit
their tenders from the date of issue of the notice inviting tenders.
(f) After receipt/opening of the tenders, proper evaluation at different levels - consultants, project director
and the competent authority - has to be ensured before the acceptance of the tenders.
(g) Changes in design and specifications should be avoided after these have been finalized except where
such changes are of critical importance.
(h) Under a Prime Minister's directive on award of contracts vide PM's Secretariat U.O. Note No.
4445/AS(ECE)/93 dated 31st October, 1993, it has been decided that in future there should be no
deviations from the laid down procedures and no delay in the award of contracts. The entire procedure for
award of contracts should be strictly according to the letter and spirit of the terms under which these bids
were invited. It must be ensured that the entire process of the award of contracts is finalized within a
period of six weeks and no discretion is used.
iv) Procurement of Machinery and Equipment
Lack of synchronization in the procurement of machinery & equipment has caused bottlenecks in the
timely execution of the projects. The procurement of machinery and equipment, where needed, should be
ensured at the appropriate time in accordance with the execution schedule of the project. Machinery and
equipment should be preferred for which repair facilities are available.
v) Local Purchase/Fabrication
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In the national interest, measures have to be adopted to encourage the use of materials and engineering
goods which are indigenous/locally manufactured/ fabricated (Annexure XL refers). The concerned
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9/23/2010