Manual of Office Procedure (Purchase) first published by the Director General, Department of Investment Promotion and Supplies, Government

of Pakistan, was adopted in its entirety by the Government of West Pakistan and subsequently by the Government of Sindh after dismemberment of West Pakistan.

The Government of Sindh subsequently prepared an upto-date revised edition of the "Sindh Purchase Manual, 1977" which provided for centralised purchases through the Department of Industries. However, it was felt that de-centralised system would be more advantageous to the Government and help in quicker and competitive purchases as had already been done in the Punjab. The Chief Minister, Sindh, approved the scheme of de-centralization of purchases in the Province of Sindh and in pursuance of the decision, a committee was constituted comprising Secretaries of the Departments of Industries, Finance and Health. The amendments in the purchase procedures, etc. proposed by the Committee and approved by the Chief Minister, Sindh, have been embodied in the revised "Sindh Purchase Manual, 1991" which is effective from 28th October, 1991 and is applicable in all the Departments of the Government of Sindh. All the available amendments have been incorporated, errors have been corrected and omissions rectified as far as possible, thus making the Manual a piece of a guide to all concerned throughout the Province of Sindh and it is hoped that it would help in quicker and competitive purchases in Government Departments in the Province of Sindh.
ZAKA ALI Author 1 : HAMID ALI (M.A.,M.Ed.,LLB.) Author 2 : ZAKA ALI (ADVOCATE HIGH COURT) Publisher : THE IDEAL PUBLISHERS (PUBLICATIONS OF LAW BOOKS)POST BOX NO .3514,KARACHI-74800

CHAPTER - I SCOPE OF OPERATION CHAPTER-II Indents and their disposal: CHAPTER III, PATRONAGE OF PAKISTAN PRODUCTS BY GOVERNMENT CHAPTER IV ADVERTISING OF DEMANDS CHAPTER-V GENERAL PRINCIPLES OF ENTERING INTO CONTRACTS CHAPTER-VI REGISTRATION OF FIRMS CHAPTER VII FINANCIAL POWERS TO EFFECT PURCHASES CHAPTER VIII RATE CONTRACTS CHAPTER IX FEES FOR SERVICES RENDERED BY THE DIRECTORATE OF INDUSTRIES (SUPPLY WING) CHAPTER X WATCHING OF DELIVERIES CHAPTER XI AUTHENTICATION ANNEXURE-A indent Form No. DIS-4. ANNEXURE-B FORM DIS-I ANNEXURE-C REGISTRATION FORM DIS-3 ANNEXURE D Time Schedule ANNEXURE---E MINISTRY OF COMMERCE ANNEXURE-F SERVICES & GENERAL ADMINISTRATION ANNEXURE-G INDUSTRIES & MINERAL DEVELOPMENT

1. Every Administrative Department [, District Coordination Officer] and the Directorate of Industries shall have powers: (a) to act as Purchasing and Inspecting Agency for the purchase of stores required by them and the offices under their administrative control; (b) to prevent as far as possible purchase of stores from out side Pakistan where goods of suitable quality are available within the country and thereby conserving foreign exchange; (c) to inspect stores purchased within or from out side the Province; (d) to carry out laboratory tests, analysis in respect of the Stores; (e) to draw up specifications through the Technical Committees to be constituted by the Administrative Department [or, as the case may be District Coordination Officer] so as to promote competition and effect economical purchases. 2. Classes of Stores Dealt with. - The [Administrative Department or as the case may be, District Coordination Officer] shall arrange for supply of all categories of stores except the items involving Rate Contract and Foreign Exchange expenditure. Note 1. - The above exemption is not applicable in case of stores involving foreign exchange Note 2. - Indents shall be placed with the Administrative Department concerned subject to availability of funds. The Indenting Officer shall be responsible for any amounts certified to be available for purchases. Note 3. - The items dealt/manufactured by the Government owned, enterprises can be purchased direct by the Indenting Officers/Administrative Departments on the prices fixed by the Government. They will, however, not procure such items above the whole sale price fixed by the Government. 3. Compulsory Purchases through the Administrative Department. - *[(1) All requirements of stores shall be obtained through the Purchase Committee to be constituted by the Administrative Department or, as the case may be, District Coordination Officer (2) The Committee constituted by the District Coordination Officer shall be handed by him.

(3) The Committee constituted by the District Coordination Officer shall not be competent for purchase of notified rate contract stores i. e. Electric ceiling fans, typewriters and purchases in foreign exchange which shall be purchased through the Directorate of Industries. However, the purchase of notified rate contract store shall be made directly by the D. C. O. after 31-12-2002.

(4) The stores purchased by the District Coordination Officer shall be inspected by the Inspection Wing. Directorate of Industries in association with the consignee in accordance with the procedure laid down in the Purchase manual to ensure transparency and quality purchase.] Note 1. - Stores falling under any broad category valued upto Rs. 25, 000/- or below can be purchased direct by the Indenting Officers during one financial year from within the country except where: (a) (b) (c) (d) rate contracts exist; stores cannot conveniently be obtained by the Indenting Officers direct; the purchase involves expenditure of foreign exchange; Indenting Officers of the Health Department may make local purchase of drugs and medicines to the extent of 25% of the funds reserved for the purpose. For the remaining requirements the indents will be placed with the Health Department. *[(e) The District Government may purchase drugs, medicine, X-Ray films/chemicals surgical sundries instruments, equipments, electro-medical equipment and disposable (i) surgical items at their level through the Purchase Committee constituted under Para-3 to the extent of seventy five percent of its allocated budget. The competitive fate and quality control shall be ensured by the purchase Committee (ii) and Medical Superintendent as provided in this Manual.] Note 2: - In case of an indent falling within the exception mentioned at (b) above, details of efforts made by the indenter to secure the supply from the market should be stated. Note 3. - The Administrative Department will grant NOC upto an aggregate of Rs. 50, 000/- to an Indenting Officer during one financial year without consultation of the Finance Department; provided that (i) the value of an individual item or a group of items falling under the same category does not exceed Rs.25, 000/-; (ii) the Indenting Officer certifies that he was in no way responsible for the delay in submission of indent and that suitable action against the officer responsible for delay has been initiated by the Administrative Department. (b) NOC for amount exceeding Rs. 50, 000/- will be granted by the Administrative Department in consultation with the Finance Department. The procedure embedded in this Manual is subject to the financial control exercisable by the Administrative Department (in consultation with the Finance Department where applicable), as laid down in Chapter VII of the Manual.

Inserted by the Notification No. SOR-II (S&GAD) 12-15/2002, Karachi, the 29th June, 2002, the Sindh Gov. Gaz., Pt. IV-A, P. No. 7, dt. October 17, 2002. In Clause 2, Substituted, ibid, for "Administrative Department" *Substituted by the Notification No. SOR-II (S&GAD) 13-15/2002, Karachi, the 29th June, 2003, the Sindh Gov. Gaz., Pt. IV-A, P. No. 7, dt. October 17, 2002. "Clause (e) added by the Notification No. SOR-II(S&GAD) 13-15/2002, Karachi, the 16th September, 2002, the Sindh Gov. Gaz., Pt. IV-A, P. No. 11, dt. October 31, 2002.

4.

Indents and their disposal:

The indenting officers while placing their demand are responsible to see(i) that the total expenditure involved in the indent has received the sanction of the competent authority and that funds are available to meet the expenditure in the estimates of the indenting departments. No responsibility in this behalf lies either with the Administrative Department or the Accountant General Sindh. At the same time, the Indenting Officer has to ensure the existence of the sanction and availability of funds. No indent should be complied with unless it is accompanied by a certificate over the signature of the Indenting Officer to the effect that the expenditure involved including the estimated cost of freight up to consignee's place and the departmental fees payable by the Department, if any, has received the sanction of the competent authority; (ii) that indents are prepared on forward delivery basis giving the total requirements of the indenters for a particular period as given in the programmes prescribed by the Department. (iii) that indents are prepared in triplicate on form No. DIS-4, copies of which can be obtained from the Indent Section of Administrative Department: A specimen of the Indent Form DIS-4 is given at Annexure "A". (iv) that the requirements are planned sufficiently in advance to enable purchase, being made at the most economical prices, particularly for items involving foreign exchange expenditure to avoid higher prices as in the case of indents with short deliveries tenderers generally quote higher prices. (v) that the indents are submitted(a) against foreign exchange allocation for the shipping period JulyDecember, latest by 1st September and for the Shipping period January June, latest by 1st March; (b) against barter/loan/credit etc. within 15 days of the allocations; to the Director of Industries Sindh, Karachi in cases (a) and (b) above (c) against local currency latest by March 31 every year. The Admin. Department/Industries Department/Finance Department will adhere to the time schedule given in Annexure ''D".
Note. -The time limit can, however, be relaxed in case of immediate and urgent demand and indents will be accepted provided the Indenter gives convincing explanation as to why such indents could not be placed sufficiently in advance.
(vi) that complete particulars and specification on the basis of which tender enquiries should be issued for purchase of correct stores are given in the indents to eliminate as far as possible time-lag involved in the technical scrutiny of indents. Incomplete indents necessitate back reference to Indentors for clarification entailing considerable delays which can and should be avoided. (vii) that the nomenclature of the stores covered by the indent is complete and in strict harmony with the technical description shown in the drawing and stated in the specifications.

Note- In the case of plant and machinery, major features and characteristics should be given. If spare for the existing plant and machinery are required, name plate, particulars of the existing plant/machinery indicating serial numbers year of make, Maker's address and also new number of the part should be stated.
(viii) that the specifications and drawings covering the stores are clearly stated and accompany in triplicate

with the indent, even if the same have previously been sent with any other indent. Where reference to any catalogue is made, relevant extracts from the catalogue is attached if the latter cannot be spared. In case this does not serve the purpose, address of the party from whom the catalogue could be obtained is given. (ix) that in cases where the specifications, drawings and other particulars covering supply are not available (such cases should be rare) the use to which stores will put to, be mentioned. A reference to the makers and catalogues be also indicated. (x) that an indication to the effect that short pattern would be acceptable is given in the case of stores for which no specifications or drawing exist. (xi) that in the case of Trade supply items, a sample is furnished to guide supply. (xii) that a reference is made to the previous supply order if the same store is required again. (xiii) that specific date/dates by which the stores are required is/are indicated and terms' like "Immediate, as early as possible, urgently required etc. " are not used. Indent should be sent well in advance to permit the department to call for technical details if missing in the indent, to issue tender allowing one month for call of quotations and sufficient time for placing of contract besides the time to be allowed for import/manufacture of the stores. (xiv) that the indent is accompanied by a treasury receipt covering the cost of the stores plus departmental charges in the case of depositing parties e. g. quasi-public bodies which have not been granted exemption. (xv) that the last purchase or estimated price is mentioned and care is taken to indicate the price paid in the recent past, as out of date information is of no use. Number of previous supply order is clearly shown where possible. (xvi) that in the case of proprietary articles, alternative, if any acceptable, are mentioned. (xvii) that separate indents are prepared for different category of stores. Indent for store that can be locally manufactured should be submitted separately from the ones to be imported from abroad. (xviii) that in all correspondence addressed to the Supply Section for a particular item, indent No. and Section to which the item has been allotted is quoted. (xix) that indents which cannot be executed during the financial year in which they are forwarded to the Department, are accompanied by a certificate over the signature of the indenting officer to the effect that the cost involved has received the sanction of competent financial authority and that he has been authorised by Government to incur liability in respect of the stores indented for in anticipation of allotment of funds. The certificate should invariably be supplied for indents sent by indentors after 30th June. 5. Indent Screening Committee. - All indents received in the Admn. Department or Directorate of Industries, Sindh shall be placed before the Indent Screening Committee for scrutiny. The screening committee shall comprise of the representatives of Tech. Committee and Incharge Indent Section who will act as Secretary of the Committee. The committee shall meet twice a week and shall be presided over by the Addl. Secretary/Deputy Secretary . It will have full powers; _ (i) to return any indent which is not considered complete for the purpose of initiating procurement action. (ii) to decide the method of purchase irrespective of the value of the indent subject to the following directions: (a) indents of the value of Rs. 1. 00 lac and above are as a rule to be advertised in the Press unless the Committee decides otherwise in which case reasons will have to be recorded. In the case of indents the estimated value of which is less than Rs. 1. 00 Lac, the Indent Screening Committee may decide to issue, advertised tender or limited tender quiresto registered firms at its discretion. (b) single tender enquires are to be issued only in the case of Proprietory items provided necessary certificate from Secretary of the Administrative Department concerned has been obtained. For stores which are spares of a particular type of machine, single tender enquiry may be issued by the Indent Screening Committee if considered necessary. Payment against orders placed for supplies to Non-Government Indentors. - Non-Government Indentors who have not been exempted by special or general order of the Government of Sindh, while placing their demands should place a sum equivalent to the estimated cost of the stores plus departmental fees to the credit of the Accountant General Sindh Karachi by sending Demand Drafts/Crossed Cheques in his favour. When the supplier's bills are received by the Accountant General Sindh Karachi, he will see that the amount of the bills is covered by the deposit in the Government Treasury. The amount thus deposited will be adjusted under a Deposit Head in the Books and the amount of cheques issued in payment of the suppliers bills will be debited to the same deposit head. No Advance deposit is necessary in the case or any quasi-public body which has an account with the Accountant General Sindh Karachi, with whom adjustment by book transfer is permissible. In such cases, the cost of stores plus departmental fees thereon will be adjusted by the Accountant General Sindh Karachi, through the Exchange Account. The designation of the Accounts Officer will be given by the Indenting Officers in the indent in case where such adjustment can be made. In the case of funds in which adjustment by book transfer is not possible, instructions should he given in the purchase orders to the effect that all bills, including 95 % bills should pass through consignees who should enclose treasury receipt for the full amount

6.

of each bill received plus departmental fees leviable theron and pass on the bill duly certified and treasury receipt to the Accountant General Sindh Karachi, for payment to the suppliers after audit. Indents from Government officers for stores, the cost of which is, chargeable to a local fund controlled by them will be treated as indents from nonGovernment Department and advance deposits will be required unless specifically exempted by Government. In cases where deposits made are insufficient to cover the cost of stores plus departmental charges and freight where prepayment of such freight is compulsory, it is the duty of the Purchase Officer to see that sufficient funds have been deposited by the Indentor to meet the- total expenditure. Payment will only be made to supplier on receipt of inspection certificate certifying that the stores are accepted as per required specifications and consignee's receipt certificate which will indicate that the stores are received by the consignee in good and correct condition and as per required specifications in addition to other documents required for the purpose of payment. In case of urgency, payment may be authorised through cheques after consulting the Finance Department and obtaining the approval of the Chief Minister. Inspection: Inspection will be done by the Inspection Wing of the Directorate of Industries in association with, the Indenting Officer concerned or an officer authorized by him. 7. Indents. No purchase Orders should as a rule, be placed by the Purchase Officer in anticipation of formal indent being made. If it is considered necessary to make a departure, orders of the Secretary of the Administrative Department should be obtained. In cases in which a Purchase Officer calls for quotations in anticipation of the receipt of the formal indent, the Indenting Officer should be addressed telegraphically, if necessary, as soon as the Department is in a position to place the order informing him of the cost of the stores and asking him to submit the indent in the prescribed form with out any delay. Order should not be placed until the duly completed formal indent has been received. 8. Receipt of Indents. All indents will be received in the Administrative Department (Supply Section) which is responsible for distributing the same to the respective Purchase Sections for procurement of stores as already mentioned in paragraph 4 and placed before the Indent Screening Committee for the scrutiny and orders in regard to planning as well as allocation of items to the respective officers of the Purchase Section.The Indent Section of Administrative Department is responsible for implementing the orders for allocation issued by the Swashing Committee. Indents covering items concerning more than one section shall be split up by the Deputy Secretary (Supply Section) and relevant extracts thereof will be forwarded by that Section to the Purchase Section concerned for necessary action. The extracts should be attested by the officer-in-charge of the Indent Section before they are passed on to the Purchase Sections. Record of Receipts. Indents received in the Administrative Department (Indent Section) are to be forwarded to the Purchase Officer concerned in the prescribed form, the counterfoil of which shall be returned to the Indent Section by the officer receiving the indents for record The Indent Section of the Administrative Department is responsible to keep an up-to-date record of all the indents received, together with the receipt obtained from the Purchase Officer in token of his having accepted the indent for procurement of Stores. The Indent Section is responsible for the maintenance of a general register giving complete details and movement of all indents received as well as theNumber allotted thereto. The functions of the Indent Section are enumerated below: (i) receipt of all indents and their submission to the Indent Screening Committee for final orders with regard to their disposal. (ii) splitting up of indents concerning more than one Sections and their transmission including all other indents to the respective Purchase Section for necessary action in accordance with the orders of the Screening Committee. (iii) indication of Indent Number on all expediters or other papers including amendments to the indents etc., for the information and action of Purchase Sections. (iv) maintenance of an up-to-date record of all Indents received and their ultimate disposal. (v) maintenance of a register to keep full details of the indents or indent items received and the number allotted to them. (vi) submission of a fortnightly report of the Work done by the Indent Screening Committee. (vii) to correspond with indentor on behalf of Indent Screening Committee to get missing details of their requirements cleared up. 10. Examination of Indents. All indents in which specifications or Drawings are quoted must on receipt be checked for: (a) the correctness of the specifications or Drawings quoted thereon and (b) the correctness of the last modification number, This checking will be done by the Tech. Committee of the Administrative Department.

9.

In order to avoid delay in procurement of Stores, the Officer Incharge/ Purchase Officer (Indent) responsible for receiving the indent should allot a Number to an indent for such of the items as have been accepted by the Indent Screening Committee and simultaneously inform the Indenting Officer to submit a fresh indent for the remaining items in the prescribed manner. 11. Return of Indents of Petty Value. Orders on the indents falling below the monetary limit fixed by Government from time to time are taken in the Screening Committee and indents returned or accepted in special cases where the indentor has established his inability to make local purchases. These orders are implemented by the Indent Section. On receipt of an indent, the Purchase Officer should initiate action in one of the following ways: (i) (ii) (iii) (iv) (v) (i) by (a) (b) by by by advertisement, by limited tender by selected tender single tender for Proprietory items. placing repeat order negotiation.

12.

(ii)

By advertisement. -All the demands of the value of Rs. 1, 00, 000/- and above should be advertised. If however, it is proposed not to advertise any such demand due to urgency or due to sources of supply being limited or the stores required being of proprietory nature, the orders of the Deputy Secretary/Addl. Secretary (Purchase) or the officer next higher in rank, if it falls outside the Purchase Powers of the above, orders should be obtained in accordance with Financial Control Rules contained in Chapter VII. (a) Limited Tenders. -The limited tender system is as a rule, adopted in the case of all orders the estimated value of which is less than Rs. 1, 00, 000/- or in case of demands of higher value for which it has ben decided by the competent authority with the approval of the Adminitrative Secretary where necessary not to invite tenders by advertisement This system must be worked with caution and tender form issued to as many of the likely suppliers on the approved list as Possible. No invitation to tender should be issued to a firm not on the approved list without the permission of the Administrative Secretary. If the stores are required to comply with a standard specification available on demand, a copy of the specification should not be supplied with the tender forms free of charge, but its number should be quoted therein together with the cost and source of supply. In cases in which inquiries are made for special class of stores or an article for which no specification has been standardized, the special specifications or schedule of requirements drawn up for the purpose will be sent to the would be tenderness with the tender forms free of charge with non-standard drawings, if any. Standard specifications mentioned in special specification or schedule of requirements shall not be supplied free of charge to tenderness with special specifications but their numbers shall be quoted. (b) Selected Tenders. -This system is not to be adopted generally. It may, however, be resorted to in cases of extreme urgency where stores are locally required or purchased from the particular firms. The selection shall be made by the Deputy Secretary or the officer next higher in rank. But the selection so made shall be subject to the approval of the Administrative Department. Single Tenders. -The system is not to be adopted only when the competent purchase officer is satisfied that no other firm is in a position to quote and the item is strictly of proprietary nature. The indent for purchase of this category of stores should be supported by a certificate by the Administrative Secretary of the Department concerned that the specified stores. are proprietary and should therefore be procured as such. In the case of organizations which are not looked over by a Secretary, such certificate should be given by the Head of the Organization concerned. The proprietary items should remain under constant scrutiny of the Indentors. The Indentors should not give preference for a particular make unless there are over-whelming considerations for it. Where substantial quantities are required. and new manufacturers are prepared to provide for after sale service; enquiry should not be confined to previous suppliers. While spares and specialized equipment are generally proprietary stores, some time they are interchangeable in which case other sources of supply should also be tried. Repeat Orders. -A repeat order may be placed in the terms of a previous order in the case, of petty purchases, in case where such a course is considered to be advantageous, with the approval of the competent authority. It must be borne in mind that this method of purchase is to be adopted only, in exceptional cases and against an order recently placed at a price which, in the opinion of the officer dealing with the demand, has not fallen since that order was placed. Negotiation. -This system is to be adopted also in exceptional cases, particularly when the stores are urgently required and the time available witty the Purchase Officer does not admit of any other mode of purchase. But, the negotiations shall be subject to the approval of the Administrative Department.

(iii)

(iv)

(v)

13.

Fixing of period for which firms should be required to keep their offers open. The Purchase Officer should fix suitable period during which tenderers may be required to keep their offers open and the blank space in the

tender form shall be filled in accordingly before issue. Such period shall not exceed 30 days in the cases which are within the competency of the Administrative Department and 45 days in the cases which are to be finalized in consultation with the Finance Department. 14. Invitation to Tenders from abroad The competent Purchase Officer may occasionally suggest obtaining tenders from abroad through the Pakistan Purchase Organisations for the purpose of checking and controlling die level of prices quoted by firms in Pakistan or local agents of the foreign manufacturers. Copies of tenders for imported stores should be sent to the Foreign Trade Missions located in the country. Procedure for the Receipt and Custody of Tenders received in the Administrative Department. Tender Box shall be maintained in the General Section in the Custody of a Purchase Officer. The key of the Tender Box must always be kept by that Officer. No advertised or limited tenders shall be received by hand except bullky tenders which cannot be conveniently put in the tender box. Such bullky tenders should be received by the Purchase Officer in whose custody the tender box is kept. He shall keep these tenders in his almirah which will be locked. In other cases where the representative of any firm wishes to hand over any tender, he should be requested to place it personally in the tender box. Tenders received in covers which do not indicate the contents shall be opened immediately on receipt and shall be put up in another cover and sealed by the officer who is entrusted with the opening of the tender box in the presence of Deputy Secretary (Supply). They should initial them particularly their schedules containing prices offered. Necessary particulars such as: Tender No .......................................................... To be opened on. .................................................. 16 . Tender Box Opening. The officer entrusted with the custody of the Tender Box shall in association with (a) another officer nominated by the Administrative Secretary will sign the tender covers indicating date. After making entries in the Register required to be maintained for the purpose, they will prepare Tender slips (in duplicate) in Form DIS-9 indicating No. of Tenders received and pass on the slips to the Purchase Officer concerned. The purchase officer will return one copy of the slip duly signed indicating the No. of tender covers received by him. Tenders which are not to be opened on that date will be replaced in the tender box after making necessary entries in the Tender Register. Some tenders may be received in Central Receipt Section. The officer incharge of the Section will immediately deliver the tenders without opening to the officer-in-charge of Tender Box who will include these tenders in the Tender slip after indicating time and date of receipt. (b) Opening of Tenders. (i) All tenders will be opened in Public regardless of the value of the tender. (ii) All tenders Will be opened by the Deputy Secretary (Supply) himself or an officer authorised by him, and in his absence, by the person authorised by the Administrative Secretary/Additional Secretary of the Administrative Department. (iii) No tender shall be opened by a single officer where the No. of representatives of the trade attending the opening is less than three. In such cases the tenders shall be opened by 2 officers jointly and both the officers will put down their initial/signatures on every page of the tender. (iv) Before opening the tenders it shall be necessary for the officer opening the tenders to announce in Public the number of tenders received by him and exhibit the same to enable those present to satisfy themselves that the seals of tenders are intact. (v) The officer opening the tenders shall not refuse to announce any of the items, conditions etc. of a tender. The latter shall also allow the representative to peruse any tender if a request is made in this behalf. (vi) Every tender shall be given a serial number. The total number of tenders received shall be indicated by marking the tenders in the right hand corner in the following manner 1/5, 2/5, 3/5, 4/5 and 5/5 if for example 5 tenders were received. (vii) The officer opening the tender shall give page number to every tender and he shall also indicate the total Number of pages contained in a tender on to the page All blank pages and portions of the tender shall be sorted out by the officer so as to restrict subsequent entries thereon. (viii) All quotations etc. shall be enclosed and initialed by the officer. In addition, all over-writings and corrections to the rates quoted by a tenderer shall be re-written by the officer and initialed, Likewise, all entries made by the tenderers at odd places shall 'be encircled and initialed. (ix) After opening the tenders, the officer shall make an endorsement on the noting portion of the file and immediately below Form DIS-9 which will be pasted in the note portion of the file. In the endorsement, the officer will indicate the number of timely tenders received by him. Where the tenderers are required to give Earnest Money, the officer will indicate if any one of the tenderers has failed to furnish the same. (x) Details regarding tenders shall be recorded as per proforma given below form DIS-9. (xi) The tender opening officer will satisfy himself about the bonafidies of the representatives of firms. (xii) All corrections/over-writings found in the tender shall be announced to the representative and initialled by the officer opening the tenders. This fact should be recorded in the certificate signed by the

15.

representatives of the firms present at the opening of the tender. TENDER SLIP

Form DIS-9 to be pasted in this space. ------------------------- render covers were properly exhibited to us and were found in-tact and opened in our presence. There were corrections/over-writings in tender submitted by M/s. ----------------which were duly initiated in our presence by the officers (s) opening the tender.
Sr. No. Name of the firm representative of the firm (in Block letters) Signature of Representative

1. 2. 3. 4. 5. ......Tender covers received and opened in Public... ........quoti..............................Nil. .................

1.

Representatives of firms whose signatures appear above we present.

2. Representatives of none of the firms quoting turned up a the tenders were opened in association with A. D. /P.O...

Signature of Tender Opening Officer Signature of 2nd Officer (if representatives are less than there).
17. Corrections in Tenders. If any correction in the price or total cost is intimated by a firm before the opening of the tenders, such alterations will be initialled by the officer. The tenderer if present, should be asked to initial the alterations, if not already done. Modification or cancellation of Tenders by Telegram. If a telegram is received from the firm or cancellation or otherwise affecting their tender, the communication should be acknowledged immediately with the remarks that the instructions contained therein (which should be repeated) have been noted. A careful watch should also be kept regarding the receipt of confirmation copy of all such telegrams. If undue delay occurs in the receipt of the post copies, the senders should be addressed in the matter. Blank Tenders. If any quotation Las been left blank by tenderer this should be particularly noted and the tender cancelled. The cancellation should be done under the initial and date of the Supply Officers concerned and number of the tender noted separately in the note portion of the relevant file. Entries left blank by a tenderer should be indicated by drawing a line across the blank space under the initials of the Purchase officer concerned. Disclosure of Prices Tenders are to be treated as confidential documents and prices quoted are not to be disclosed to any party by any member of the staff without the permission of the Head of the Purchase Section or officer concerned. Acceptance of Tenders not on Prescribed Form. If quotations are received from Registered Firms by telegram or in their letter form instead of prescribed tender form against the advertised or limited tender, the Purchase Officer may consider such quotations if they are received in time. In the case of advertised tender, the tenderers submitting the offer should be required to pay the prescribed tender fee and also to confirm that they accept the general conditions of contract as contained in DIS 12-14 as applicable. Tenders from unknown firms or those who are not registered with the Directorate of Industries should not ordinarily be considered. Late or delayed tenders. Tenders either posted without adequate time to enable them to reach the tender box before the scheduled date and time of receipt or posted or delivered after the scheduled time and date of receipt, are called late tenders and as a rule no notice will be taken of them. Similarly, no notice is to be taken of delayed

18.

19.

20.

21.

22.

tenders which may be posted in time and delayed in transit and received after time and date fixed for their receipt.

Note. Where, quotations of any late/delayed tender are considerably lower than those of the lowest tenders, it will be open to the Administrative Secretary to. scrap the tender inquiry and to negotiate with the late tenderer or order invitation to tender a fresh..
23. Offers made with Reservations. Some times, offers are received with reservations e. g., subject to availability of raw material, delivery period is not specified or does not permit purchase of stores within the. specified period, such offers should summarily be ignored. Tabulation of Tenders.Administrative Secretary may in his discretion dispense with the preparation of abstract if he is satisfied that in view of the ambiguity of tenders received or petty nature of the Purchases, it is not worthwhile to prepare abstract. Where, however, the demand is important or complicated and the number of such tenders is fairly big and abstract of quotations will be of considerable help to the Purchase Officer in the exercise of his duties, the abstracts shall be prepared in the prescribed form to facilitate comparison of the quotations received. The officer-in-Incharge should satisfy himself that all the tenders actually received are included in the abstract.

24.

Note. Only those tenders are to be included for grading Which conform to given specification and which are as per conditions against the-Tender Enquiry. Remaining tenders/quotations not conforming to the specifications and conditions of the Tender Enquiry may be given separately at the bottom of the abstract (CS) showing reasons for ignoring them. Where alternative quotations are given by tenderers, full details of quotation should be entered in the abstract. When quotations are based on samples, the reference to the latter should be given in the abstract of tenders. Contractors should be required to give synopsis of detailed quotations from which comparative statement could be easily drawn up thus cutting out time for the reproduction of quotations in the comparative statement..
25. Specifications and Samples. Ordinarily, an order placed for stores should prescribe that the stores' shall conform to the approved specifications and no reference of a sample shall be made in the order. Where a sample is considered necessary in addition to the specification, the reference of sample shall invariably be made for a specific purpose, such as finishing or colour. In case of doubt whether or not a specification is necessary, the Technical Committee/Inspection Wing of the of the Directorate of Industries may be consulted and specification/ samples shall invariably be got approved from the Indenting Officers specially in respect of drugs and medicines. Back reference to the Indenting Officers in respect of deviation in the specifications as a result of quotation from contractors can be made by the Purchase officer with the approval of Deputy Secretary (Supply) but such reference should only be made in very exceptional cases. In certain cases, particularly for casual purchase, it may be necessary to purchase according to a sample. When a purchase is made according to an approved sample, the sample should be sealed for the currency of the particular order. Such a sample should not necessarily be adopted as a guide for future supply-of the same character. Whether the latter should be made according to the sealed sample, or to the appropriate specification, should be decided entirely with reference to the circumstances existing at the time of placing of the order. 26. Orders against Firm's Samples. Where it is in tended to place orders against contractors samples, the contractors may be required to submit such samples. But this should only be done where there is neither a prescribed specification nor a sealed pattern. In such cases the Purchase Section will pass on the selected sample together with the original indent to the Inspection wing for sealing under the signature of the Purchase Officer and an officer of the Technical Committee/ Inspection wing of the Directorate. The sealed sample then becomes a sealed pattern which will provide guidance in placing orders. A specification, if necessary, may be drawn up by the Technical Committee / Inspection wing of the Directorate of Industries. The accepted sample after being sealed will be forwarded by the Technical Committee/Inspection wing to the officer entrusted with the inspection of order. Referring of samples to Test House or Inspectorates. When samples are referred to the officer in-charge Central Testing Laboratories or the Head of an Inspection circle for examination and advice before an order is placed, the rate for each sample should be communicated to him in confidential cover if he is required to place the acceptable samples in order of merit on the basis of value for money.

27.

If samples are required to be submitted to any other organization (Government or Private) the report of the officer, who received them, and his recommendations in regard to the suitability or otherwise should be awaited before deciding which firm is to get the order. 28. Tenders for Boiler. When calling for tenders for boilers, the firms should be required to include in the tendered price the cost of furnishing a certificate under the Boilers Act. This should be included in the schedule of requirements.

Note. -7-The Inspecting -officers of the department have not been declared as Boilers Inspectors under the Indian Boilers Regulations 1924, as adopted by Pakistan.
29. Reference to catalogue in invitations to tenders. Inquiries for stores should as far as possible be worded in such a way as to give clear indication of the stores required and should avoid reference to catalogues. If the stores required are such as cannot be fully described in detail, e. g. small articles of laboratory equipment, references to catalogues of well known makers may be given where absolutely unavoidable. In such cases, it would be clear by the use of an expression such as "of the type described in........................ catalogue" that it is not intended to restrict the purchase to any particular make. Tenders for Plant and Machinery, An additional tabulated statement shall be attached as an Appendix to the Schedule of Requirements accompanying tenders for supply of plant and machinery. This appendix will provide for prices columns as in the actual tender and the principal technical details required when comparing tenders. It will be prepared by the Technical Committee/Inspection wing, along with the schedule of requirements and will be completed by tenderers. When tenders are opened, appendices will be extracted and put up in book form as abstracts of tenders when preparing any other schedule of prices or comparative statement. The price schedule will be checked by the Purchase Officer concerned. 31. Tenders for Air Compressors and Exhausters, It is not ordinarily practicable to carry out in Pakistan tests of capacity of air compressors and exhausters by the method specified in British Standard Specifications. A clause on the following lines should, therefore, be inserted in all inquiries of schedule of requirements of air compressors and exhausters: The contractor shall urnish certificates of tests at the maker's works of the capacity of the exhausters/compressors carried out in accordance with the British Standard Specification. 32.

30.

Purchase of Spare Parts.When inviting tenders for Road Rollers, Oil Engines, Large Electric Motors Compressor sets etc. (Not Trucks or Cars), Running spares should, be included as a separate item in the tenders in all cases where the value of such plant exceeds Rs. 25, 000, '-. Besides, quotations should be called for 2 years working spare parts in consultation with the Inspecting department. All replacement parts or component parts of Electric Motors, Dynamos, Fans and ether electrical appliances and equipment should as far as possible only be obtained from the makers or from authorised agents of original equipment for which they are required. In cases where replacement parts and components are manufactured in Pakistan, by firms other than the makers of the original equipment, Purchase Officers before placing any order, must satisfy themselves that the firms possess the organisation, experience and working equipment necessary to produce work of the requisite standard and of suitable mechanical and electrical characteristics.
Note. The services of Pakistan Overseas Purchase Organization shall be utilized fox checking quotations for spares above Rs. 25, 000/-

33.

Inquiry regarding prices ruling in other countries.Enquiries regarding; prices ruling in other countries should be made directly from the Pakistan Overseas Purchase Organization. Technical advice on tenders. In all cases where technical points are involved on which advice of the Technical

34.

Committee/ Inspection Wing is required, the tenders should be referred to the Technical Committee/Inspection Wing before an order is actually placed. 35. Acceptance of tenders.Purchase Officer competent to deal with the order should note his decision both on the abstract of tenders, if any, as well as on the file. The Purchase section will then prepare the order in the prescribed form. If the acceptance of tender is communicated to a firm by a letter or telegram in anticipation of the issue of a formal contract, the following paragraph should appear at the end of the advance communication: "The contract is concluded by this acceptance but a formal contract will follow. " The formal contract should contain a reference to the advance communication. It should bear the same number and date as that of the advance communication, Whenever the Purchase Officer finds that some departure from specification or sample must be agreed to before he can place the order with a firm whose position is most satisfactory, he should consider the question of giving similar option to all the other tenderers. If in a particular case, he decides that it is necessary to do so, his reasons for doing so must be placed on record in the notes for future reference . It is the duty of the Purchase Officer to study carefully all the documents connected with a contract before actually signing it. Whenever he refers to a specification in a contract, it is his business to go carefully through the specification and find out to what extent, if any, anything containing in the specification conflicts with anything contained in any other documents forming part of the contract, e. g the general or special conditions of contract applicable to the case. If he finds any such conflict, it is his duty to bring out the point in a note and to take the orders of the competent authority as to how conditions of contract or the specification should be modified. Care should be taken to ensure that quotations for materials below specification or sample are not compared at par with quotations for materials to specification or sample. 36. Price Preference for Indigenous Products. In pursuance of the instructions issued by Ministry of Industries and Natural Resources, Government of Pakistan, vide their letter No. C&F-3(15)/63, dated 21st October, 1963 the indigenous products may be accorded price preference in rupees upto 20% of the lowest quoted landed cost of an item of foreign origin with similar specifications provided that: (a) the saving in foreign exchange is at least equal to the price preference (b) (c) it is ensured that in case of such preference, the total import requirement for producing the supplies tendered for locally has been duly indicated by the bidders. the above mentioned price preference will not be admissible for those items of local manufacture which have been given protection by the Government on the recommendations of the Tarif Commission. The above decisions will, however not apply to the cases involving Foreign Aid, Loan or Grant.

37.

Preparation and check of Purchase orders. It is very essential that every purchase order (both express letter orders and those on the regular forms) should be checked by a person other than the one who has prepared it, A rubber stamp in the following form should be affixed on the margin of the note sheet to show prominently the names of the persons who prepared and checked the contract: "Contract prepared by ................................." "Checked by..............................................." The person who prepares an order should originally write and initial the note submitting the order and the person who checks it should initial below the former. The office copy in the file should indicate who has typed and compared it. The comparer should be either the person who prepared the order or the one who checked it. If a third party compares it, the original draft should also be preserved in file. Corrections should as far as possible, be avoided. If one or two minor corrections are found necessary in an order which do not justify retyping, they should be properly attested by the officer who signs the order. Every amendment of an order made by competent authority after the order is placed, should be promptly carried put in the office copy of the order supported by reference to that authority for correction under the signature of the Purchase Officer. If an amendment letter contains more than one typed sheets, all the sheets containing price particulars should be attested by the officer concerned and a copy of the letter endorsed to the Accountant General Sind.

38.

Passing over of lower tender.Where a tender other than the lowest tender is accepted the Purchasing Officer

shall record his reasons for ignoring the lowest tenders and obtain approval of the Administive Secretary. It may sometime be found necessary to ignore tenders which did not comply with the requirements, but before passing over the lower tender for any other reasons the Purchase Officer should act in accordance with the above procedure for financial control as laid down in Chapter VII of this Manual. It is not permissible to ignore the lowest tender and to place order with other tenderer at the rate quoted by the lowest tenderer by special arrangement. This practice is contrary to the principles which govern the system of competitive tender and should not be adopted. If the lowest tender is ignored the order should ordinarily be placed with the next lowest tenderer at the price originally quoted by him. the reasons for rejecting the lowest tender being recorded. Should circumstances arise to make this course undesirable for any cause, a full explanation of the reasons and actions taken should be tendered and, if necessary, the matter should be referred to the higher authority for orders. If the lowest tender is considered to be too high, all tenders should be rejected and fresh tenders called for, if time permits. But it will not apply to. cases in which ex-stock quotations are accepted at a reasonable extra cost in preference to forward delivery offers for stores which are commonly available from stock and which are regulated by the Administrative Department on the assumption that supplies are normally available ex-stock. Reference to Indenting Officer should be further limited to cases in which the difference in price exceeds the lowest acceptable quotation by 10% or Rs. 1. 000/- whichever is greater. Whenever lower tenders are passed over and higher price has to be paid for quick delivery because the Indenting Officer did not allow reasonable time for supply the fact should be brought to his notice by attaching a slip to the indenting officer's copy of the order in the following form: "Please-note that but for the delivery dates fixed by you, it would have been possible to effect a cheaper delivery by accepting a lower quotation". In cases. in which the difference in price is appreciable, the indenting officer should be consulted before a higher quotation is accepted unless the Purchase Officer is definitely aware that the latter delivery could not possibly be accepted. 39. Payment of higher price outside rate contract for quick delivery of stores for which rate contracts have been arranged. When the period stipulated for compliance of an indent for stores for which a rate contract in existence is so short as to preclude the Department from placing a supply order against such contract and the purchase outside the contract is expected to involve additional expenditure, a reference should be made to the Indenting Officer by telegram, if necessary, before a contract at a higher rate is placed. No such reference need, however, be made in case in which the indenting officer is authorised to obtain stores against the relevant contract by direct requisition and has been supplied with a copy thereof. In such cases, it should be assumed that supply against the contract is not acceptable. Before making any purchase outside a rate contract, the Purchase Officer must, of course, satisfy himself that the conditions of the contract allow purchase outside the contract. 40. Record of cases in which the lowest tender has been accepted. In order to facilitate the audit of purchase cases valuing upto or below Rs. 75, 000/- in which the lower tenders have not been accepted and to have those readily available, a register of such cases should be maintained by each purchase section in which the order No., designation of the Indenting Officer, date, description of stores and value of order should be noted. Communication of reasons for non-acceptance of tenders to unsuccessful tenderers.Reasons for nonacceptance of firm's tenders should not be communicated to them without the previous approval of the Administrative Secretary. Purchase in excess of Estimated amount shown on the Indents. In the absence of any general or special instructions of the Indenting Officer on the subject, the Supply Section of the Administrative Department may accept the tendered rates if such rates are not more than 10% of the estimated rates. But order will, be placed only after the Indenting Officer certifies the availability of additional amount plus departmental charges where ever applicable. In case the Indenting Officer shows his inability to provide the additional amount, then he will have to adjust his requirements accordingly. In cases where advance deposits are required from Indenting Officer, orders shall not be placed in excess of the deposits already made. Supply of articles to indentors on approval. The supply of article to indentors on approval before actual purchase is effected should be avoided as far as possible. Exceptional circumstances may however, arise which necessitate the adoption of such a course and in such cases particular care should be taken to ensure that an article obtained from a firm on approval is not lost or in any way damaged.

41.

42.

43.

44.

Terms of supply. The term F. O. R. should be used only with reference to the station of dispatch. The expression free delivery at Railway Station of Destination should be used in all invitations to tender and contracts in which the quotations are intended to include freight upto destination. All orders except for departments entitled to concession in freight rates or in cases in which indentors specify other conditions should, as far as possible, be asked to quote for 'Free delivery at Railway Station of Destination in the case of items for repeat orders or firms should be asked to quote both 'F. O. R. ' place of dispatch and Free delivery at destination rates', Inclusion of freight in the prices of stores. If an order is placed for Free Delivery at Destination, the total price inclusive of freight charges should only be shown in the order without mentioning the amount of freight charges separately. If it is desired in a particular case in which an order is placed "F. O. R. Station of Dispatch" that the supplier should book the stores "Freight Paid, " the fact should be mentioned in the order without indicating the amount of freight. The actual freight charges paid will be recovered by the supplier supported by vouchers. "If the stores are rejected at destination, the railway charges shall be recovered from the supplier".

45.

46.

Dispatch Instructions. Dispatch instructions on indents and in forwarding letter or other communications from indentors and consignees should be carefully observed and should not be departed from without their previous concurrence which may be obtained by telegram in urgent cases. Stipulation of definite date in orders Ex-stock Delivery. When placing an order delivery ex-stock, a definite date for delivery should be mentioned. Such expressions as 'immediately', ex-stock', 'urgent', 'as early as possible' etc. should be avoided. If the demand is urgent, the firms should be allowed the shortest possible period and the words "earlier if possible" may be added Director of Industries, himself.

47.

48. 49.

Sub-letting of contracts- The sub-letting of contract should in no circumstances be allowed. Procedure regarding exemption from the operation of the Indian Factories Act (as adopted by Pakistan). No request for an exemption from the provision of the Factories Act should be preferred without the previous approval of the Administrative Secretary/ Director of Industries, himself. Orders placed at the close of the year for payment within the year.When orders are placed at the close of the year and the Indenting Officer" has specially asked for the payment to be made within the financial year, a remark should be made at a prominent place on the order to ensure not only that the contractor will present his bills in time but that the Accountant General Sind Karachi will also expedite passing of the bills. When orders for supplies payable in one financial year are not complied with for payment during the year, the Indenting Officer should be consulted before accepting supplies against the next year.

50.

51.

Orders specifying delivery in the last month of the Financial Year for payment in the following year. When stores are required to be delivered early in the financial year, a clause may be inserted in the purchase orders as follows: "Delivery is required to commence not later than the 15th June---------- and to be completed (in equal monthly installments) by ........................ In case of C. I. F. contracts for which payment is to be made in the next financial year against shipping documents, it will be necessary to stipulate delivery of documents in July and the usual time must be allowed thereafter for the supplies to be available at destination. Supplies may be delivered earlier at the contractor's option but payment thereof cannot be made before the 1st. July. Combined orders against more than one indent. If two or more combined orders are placed by the department against two or more indents, each order should indicate

52.

the quantity which it covers out of each indent. For example,, if two orders XY are placed for 900 and 650 Blankets each against three indents for 1550 Blankets viz: A........................... 500 B.......................... 7OO C............... ........... 350 _________ Total 1550

_________ Reference to indent should be indicated on each order in the space provided for the number and date of the indensts as follows: Order X for 900 blankets: Against indent A... ........................500. Against indent B............................400. Order Y for 650 blankets: Against indent B...........................300. Against indent C...........................350.
53. Elimination of Paisas for total orders placed, The total value of all Purchase orders placed by the department should be expressed in whole rupees against the Head "total inclusive price". Fractions below Paisas 50 should be omitted, paisas 50 and above should be rounded off to the nearest higher figure of rupees. The exact total of the order in Rupees and Paisas should, however, be noted at the end of the schedule. Shipping documents required for clearing stores from Ports. In all cases where orders are placed on C. I. F. /F. O. B. basis, contracting firms should be instructed at the time of placing the order that all the shipping documents including the following must be supplied by them promptly to the authority responsible for clearing the stores from the port of entry: (a) Bill of lading (in duplicate). (b) Insurance. (c) Invoice showing: 1. Relevant supply order No. 2. Terms of purchase. 3. Details of shipment. 4. Value of stores. 5. Signature of shippers or agents. 6. Country of origin. (d) Certificate of country of origin, (e) Inspection note in duplicate in cases where inspection is specified before the shipment. It should also be made clear that they will, be held responsible if any demurrage or wharf age is incurred by the clearing officer as a result of their failure to furnish the necessary documents in time. Suppliers should be instructed to mark all packages intended for Government Departments with the Government marks which should also be shown on the bill of lading. These marks are required for guidance of clearing agents who have to prepare sparate list for Government goods and other for custom exemption. A charge is made at certain ports for transferring items incorrectly entered from "Commercial sheets" to "Government sheets". 55. Safeguard against incurrence of demurrage. In order to provide a further safeguard against incurrence of demurrages which may be occasioned by delay in receipt of shipping documents, the suppliers should be instructed to despatch by first Air Mail non-negotiable copies of the shipping documents to the clearing agents simultaneously with the shipment of the consignments. Failure to do so, would render them liable for payment of any demurrage or other charges that Government may have to incur on this account. Discontinuance of sending amendment orders for small variations in supply within the mark of 5% above or below subject to a maximum of Rs. 500. No amendments to orders need be issued for small variations in supply subject to the following conditions:

54.

56.

1. that the cost involved does not exceed 5% of the original value or Rs. 500/- whichever is less, 57. Communication of copies of orders, Copies of all orders placed by the Administrative Department/Directorate of Industries shall be forwarded to: 1. Indenting Officer 2. Consignee. 3. Inspecting Officer. 4. The Audit Officer. 5. Finance Department where the contract is placed after concurrence from F. D. 6. D. C. O. S. (S) P. R. Karachi Cantonment who acts as clearing agent in case of F. O. B. /C & F contracts. A reference should be given on every order as to the conditions of the contract governing the order. In case a contract is governed by special conditions, then a copy of the relevant conditions be attached to the order. Copies of specifications (priced or un-priced) should be supplied to consignee (free of cost) with order of the following categories: (i) orders of plant and machinery (ii) erection contracts and (iii) orders to be inspected by the consignee. In case in which copies of the relevant specification have already been sent to the consignee previously, fresh copies need not be attach ed to subsequent orders but a complete reference be given. 58. Communication to the Accountant General Sindh, Karachi of reasons for cancellation of orders. Copies of all communications cacelling purchase orders should be endorsed to the Accountant General Sindh, Karachi. In the forwarding endorsement, reasons of cancellation should be fully stated to enable the Audit Officer to adjust departmental fee correctly. Spare copies of orders placed. Purchase Officer shall not sign in fall on spare, copies of an, order. Besides risk of fraudulent use of such copies if issued inadvertently to a firm, they may lead to a double supply. if an order is mislaid or it is found necessary to prepare copies of the order... such copies should be marked as V Duplicate/additional copies of orders or schedule to orderds and if in spare the copies may be supplied to Indenting Officer or tenderers on request.

59.

60.

Communication of copies of orders to the Inspection Wing. The contracted stores shall be inspected by the Inspection Authority viz Director of Industries (Inspection Wing) in association with the Concerned Indenting Officer/consignee or their representatives. The Purchase Branch shall endorse at least two copies of supply order to the Inspection Wing under intimation to the Indenting Officer for record and use of the Inspecting Officer. To avoid the despatch by Supplier without inspection of the stores which are required to be inspected before despatch, it is necessary that copies of purchase orders requiring inspection should be communicated to the Inspection Wing of the Directorate of Industries Sindh simultaneously with the placing of order. If an order is placed by telegram if necessary, it should, be repeated to the Inspecting Officer concerned if the stores are to be inspected before despatch. Clear instructions should be given in such telegrams as to whether the material will be inspected by the Inspection Wing of the Directorate of Industries Sindh or by any other officer (e. g. consignee) whose designation should be stated and the confirmation copies of the telegrams should also be endorsed to the Inspecting Officer concerned for information and necessary action.

On all calls for inspection outside the station where inspection staff may be located, the Purchase branch concerned should endorse as follows: "Should be inspected within..................weeks" giving the longest possible time so as to enable the Inspection Wing to arrange, if possible, for the Inspection at the same time of all other materials on order at the same place.
61. Supply of copies of specifications to the Inspecting Wing: In cases in which stores on order are to be supplied in accordance with an existing specification, either issued specifically for a particular class of article on order or in addition to other description of stores copies of the relevant specification need not be attached to the copies of the orders forwarded to the Inspection Wing. It will suffice in such cases to cite on the document, title No. and date of the relevant specification. In case, however, a specification or schedule of requirements is specially prepared for an order and copies thereof have not been previously supplied to the Inspection Wing to be entrusted with the order, it will be necessary to supply the copies of such specifications or schedule of requirements to the Inspection Wing for guidance.

62.

Inspection by consignee. Cases may, however, arise in which inspection by the consignee may be un-avoidable. In such cases the following remarks should appear (in rubber stamp) on the copy of the purchase order which is endorsed to the consignee: "please" report delay in supply to this office".

63.

Policy of the Department in relation to the purchase of indigenous products. The Policy of the Government is to make purchases of stores for the Public Services in such a way as to develop the indigenous products of the country to the utmost possible extent consistent with the economy and efficiency. In order to give effect to the above policy, the Purchase Officers would proceed in the manner indicated in the following paragraphs: Order of preference in the case of imported and indigenous stores: (i) Purchase Officers must give first preference to the articles or materials manufactured in the country from indigenous raw materials provided the quality is sufficiently good for the purpose and prices are reasonable, (ii) Second preference should go to the articles or materials which are wholly or partially manufactured in the country from imported raw materials provided these are of standard quality. (iii) Third preference should be for the stores of foreign make held in stock in the country provided they are of the requisite quality/specification.

64.

According of price preference to the Home Made Products. If in a certain case, the Purchase Officer finds that the goods of indigenous manufactures, though of a sufficiently good quality, are available at prices higher than those of imported stores it would be open to him to accord such price preference to the indigenous products as may be considered advisable with the approval of the Administrative Secretary in order to patronize the Pakistani products. Cases may, however arise where the purchase of imported stores may become essential in preference to the indigenous products due to the following reasons: (i) The quality of the indigenous products not being quite upto the specifications. (ii) The price being uneconomical.

The Purchase Officer should make all possible attempts to persuade the indentor to accept deviations wherever possible, in keeping with the efficiency or arrange all possible technical assistance to the indigenous manufacturers to bring their stores up to the desired standard, if time permits.

Where it becomes necessary to purchase the imported stores, the orders of the Administrative Secretary shall be obtained before placing the orders, in accordance with provisions of para 36.
65. Submission of return showing the progress made in purchase of home-made products.A quarterly statement showing the purchases made of indigenous products as compared to imported stores should be submitted to the Administrative Secretary in the following form: (a) Trade Group. (b) Total value of home-made articles purchased during the period. (c) Total value of imported stores purchased. (d) Total value of home-made and imported articles purchased, (e) Percentage of home-made articles. (f) Extra amount paid by way of price preference. (g) Remarks.

66. The Purchase Officers should also keep a watch on the demands generally received for imported stores for which little or no fabrication capacity exists in the country and advise the Directorate of Industries Sindh of the necessity for establishing or developing the Industry for such products.

67.

Financial limits. All demands valuing rupees one lac and above except those of proprietary nature should invariably be advertised through Press by sending a Public Notice to the Director, Public Relations, Government of Sindh for publicity in the leading Newspapers. A copy of eve advertised tender is to be placed on the Notice Board of the Administrative Department simultaneously with the publication of the notice. In the said Public Notice, nature and quality of the stores required, total. estimated value Earnest Money required, Terms of Delivery, price of tender, date time and venue of opening of tender and the office address from where the tender can be purchased must clearly, be-indicated. Below rupees one lac, 'however, the demand may be covered by calling limited tenders from the registered suppliers or may be advertised as decided by the Indent Screening Committee.

68.

Issue, of invitations to tender to particular firms against advertised demands, Normally no tender is issued to a particular firm when the demand is, advertised. In exceptional cases, however, where it is considered desirable to obtain quotations from particular firms. the same may be issued to them after getting approval of Admin. Secretary. In such cases, the firms concerned should be required either to pay the prescribe fee for the Tender Forms or return them.

69.

Rates of Fees of Advertised Tenders. Advertised Invitation to Tenders will be subject to the following rates of fee: ____________________________________________________________________________________________________________________ S. No. Estimated value of Indents. Charges for tender form per set. _________________________________________________________________________________________________________________ _ 1. Where the amount docs not exceed one lac rupees. Fifty rupees. 2. Where the amount exceeds one lac One hundred rupees but does not exceed five lac rupees. 3. Where the amount exceeds five lac Two hundred and fifty rupees but does not exceed ten lac rupees rupees. 4. Where the amount exceeds ten lac One thousand rupees. rupees but does not exceed twenty five lac rupees. 5. Where the amount exceeds twenty Not exceeding two five lac rupees. thousand rupees at the discretion of the Admin Secretary. Tender form for the advertised demands should be issued on payment to all including registered firms at the prescribed rates.

70.

Tenders for special stores, plant, equipment etc.for which special or omnibus specifications have to be prepared. ?The charges will be fixe in each case by the Administrative Department in consultation with its Technical Committee/Inspection Wing of the Directorate of Industries, Sindh.

Any standard specification which may be referred to in the special specification or schedule of requirements must not be issued with the specia specification or schedule of requirements but the No. must be quoted. 71.

Charges for specifications and drawings received from Indentors. In cases in which priced copies of specifications and/or drawings are received from indentors, the amount thereof will be recovered from the sale of tenders and credited to the account of the indentor concerned. Copies of such specifications or drawings will be issued to the Supply Section of the Administrative Department or Directorate of Industries Sin as on loan and will be accounted for when received back. In case, however, of foreign missions located in Pakistan, a note should be added wh sending the tender forms to the effect that specifications and/or drawings are priced documents (price to be indicated) and if required, can be supplied on payment which should be remitted by money order in advance with the application. Government Departments which are supplied tender forms free of charge should also be required to pay similarly for these priced specifications and/or drawings.

72.

Supply of Tender Forms. Complimentary copies of all the tender inquiries for imported stores valued Rs. 15, 000/- or above may be sent to a the foreign Trade Missions in Pakistan for information and publicity only. If, however, a firm desires to submit the tender at the instance of any o the foreign Trade Mission in Pakistan, scheduled rates if any should be recovered from such of the tendering firms.

73.

Supply of Tender Forms to Government Departments free of charge. Tender forms will be supplied to Government Departments desiring tender, free of charge. Issue of Tender forms to various Workshops owned by Government Departments. Copies of tender forms should be Issued to all the workshops working under the administrative control or super vision of Provincial /Central Governments free of charge. Issue of Tender forms on Payment. Purchase Sections concerned will send sufficient copies of the advertised tenders for sale to the following: (i) Cashier, Administrative Department / Directorate of Industries, Sindh. (ii) Regional/Divisional Offices Sub ordinate to the above. (iii) Directorates of Industries and Mineral Development of N. W. F. P., Baluchistan and Punjab. Cashier of the Administrative Department/Directorate of Industries or Account Branches of the above offices will sell the Tender Forms to prospective suppliers against payment in cash or through money order. Unsold copies of tenders will be returned to the Supply Section after expiry of the opening date. These agencies shall submit an account to the Administrative Secretary/Director of Industries Sindh forwarding Treasury Receipts for the value of tender forms issued (sold) indicating the balance, if any, left with them. Copies of limited tenders are however to be sent to Registered firms only. Single tenders in case of proprietory articles are to be sent to the concerned firms only.

74.

75.

76.

Refund of the cost of Tender Forms. The cost of tender forms sold is, as a rule not refundable and a note to this effect should be given in th advertisements inviting tenders. Refunds have however, occasionally to be allowed for valid reasons e. g., when a demand is cancelled. In suc cases the refund should be allowed under the orders of Secretary of Administrative Department/Director of Industries. When a demand is cancelled, the firm concerned should be informed and the refund for the cost of the tender forms allowed. If a claim for the refund is admitted, the amount may be placed to the credit of the firm and adjusted against future issues in the case of firms which frequently applied for tender forms. If a cash refund has to be made, refund bill should be prepared and forwarded to the Accountant General Sind for audit and payment. A separate register of amounts due to firms will be maintained. A note of all refunds will be made in this register, in the tender money, cash book, stock account register and on the counter foils of the receipts issued. Refunds from cash in hand are permissible.

77.

Destruction of unused tender forms. All unused or unsold tender forms received back will be destroyed on their receipt after making necessary entries in the book. Any accompaniments which can be used e. g. schedules of requirements should be removed and given to the Section concerned. PREPARATION OP ADVERTISEMENT

78.

Preparation of Advertisement Advertisement for publication in the press will be prepared in the purcha section concerned and dispatched to the Director Public Relations, Government of Sindh. As a general rule, a single insertion will suffice and instructions will be given in the forwarding letter to that effect. In exceptional cases two or more insertions of calls for tenders may be necessary, but this will require the approval of Additional Secretary/Deputy Secretary /Additional Director of Industries. The Section sendin the advertisement for publication will ensure that it appears duly in the News Papers. Papers cutting of th same will be obtained by the Purchase Section concerned from the quarters concerned and pasted in the

relevant purchase file for record

79. GENERAL PRINCIPLES OF ENTERING INTO CONTRACTS. (i) The terms of a contract must be precise and definite and there must be no room for ambiguity or misconstruction (ii) As far as possible, legal and financial advice should be taken in the drafting of contract before they are finally entered into. (iii) Standard forms of contracts should be adopted wherever possible the terms to be subject to adequate prior scrutiny. (iv) The terms of a contract having been entered into, both parties will observe its terms scrupulously and strictly. The authority empowered to execute a contract will not have the same freedom in revising the price, place of delivery etc., as it has at the time of entering into a new contract. Where a departure from the conditions of contract involves financial implication, financial concurrence will be obtained. (v) No contract involving an uncertain or indefinite liability or any condition of an unusual character should be entered Into without the previous consent of the competent financial authority. (vi) Any quotation received with a delivery period which is not specific and does not permit the purchase of stores within the specific period, should ordinarily be rejected. Similarly incomplete offers or those which do not comply with requirements of the Tender Enquiry should also be, ignored in order to maintain the sanctity of. the Tender Enquiry. (vii) As far as possible, contract should be placed only after tenders have been openly invited. A contract once concluded, shall not be open to negotiation with any other tending firm, except in the case of default. (viii) In cases where the lowest tender is not accepted, the financial status of the individuals and firms tendering must be taken into consideration in addition to all other relevant factors. (ix) Provision must be made in contracts for safeguarding Government property

entrusted to a contractor.
80. Stamp duty. Contracts connected with the purchase of stores are exempted from stamp duty. Instruments in the nature of a Memorandum (Agreement or Security Bond) furnished or made or entered into with the Government by a contractor for the due performance of his contracts are also exempted from stamp duty. 81.

Revision of/or alterations in the conditions of contracts. All contracts should be placed subject to the general conditions as laid down in the pamphlet containing DIS12-14 (as applicable) issued by the Administrative Department. If it is considered necessary to revise any existing condition having legal and financial implication, it may be necessary to obtain legal and financial approval. Alteration in prices. Purchase Officers have no authority to revise the terms of an order including Rate Contracts after it has been placed so as to increase the basic price agreed upon (directly or indirectly, e. g. by changing place of delivery). All such cases should be dealt with in accordance with the procedure laid down in other Chapters. These instructions arc intended to apply only to cases in which the basic accepted price is proposed to be revised. There is no objection to a Purchase Officer authorising the inclusion of any additional items in an order although their inclusion may affect the total value of the order if such a course is considered to be preferable to placing a supplementary order, provided that the total cost of the amended order remains within the financial powers of the competent authority to make purchases.

82.

83. (a)

Earnest Money.All firms whether registered or un registered will be required to deposit earnest money equivalent to 2. 5% of the value of their offer along with

their tender in the form of Call Deposit/Pay Order in favour of Administrative Secretary/Director of Industries (Supply Wing).

Note: Tenders not accompanied by the requisite earnest money shall be ignored.

Earnest Money will however, be refundable as under:(i) When the validity of offer of the firm has expired. (ii) When the case is finalized and the order is placed with other tenderers. (iii) Order is placed with the same party and Security Deposit is received from them. (iv) Nothing is outstanding against the firm in any other case. (b) Security Deposit. Security deposit will be obtained from tendering firms in the form of call Deposit/Pay Order in favour of Administrative Secretary/Director Industries at the following rates: (i) Registered Firms: -2 % of the value of contract. (ii) Un-Registered Firms: -12 % of the amount of contract irrespective of value. (iii) State Regulated Units: -Not exempted. The same rates as in (i) & (ii) above shall apply. (iv) Firms offering Proprietary Stores: Not exempted. The same rates as in (i) and (ii) above shall apply.

In case of un-satisfactory performance of any Registered firm, the limit of 2 % security deposit can be raised upto 10% by the Administrative Secretary/Director of Industries. The Security Deposit can be furnished in the shape of Bank Guarantee also. However, Call Deposit/Pay Order furnished as Earnest Money can be transferred and converted into Bank Guarantee for the purpose of Security Deposit after the placement of contract. Security Deposit will be obtained before the placement of contract.
83- (1) Fee for Award of Contracts: The service charges at the rate of Rs. 0. 25% will be paid by the Contractor on A the amount of contracts awarded by the Administrative Department/Directorate of Industries. (2) The charges will be deducted at source by the Accountant General Sindh while making payments to the Contractor. (3) The amount so realised will be creditable to the Receipts. Head of Account of the respective Department/Directorate of Industries. 84. No. advance payment is permissible as a matter of rule. Where this is inescapable, however and a supplier insists on advance payment, a certain percentage of the value of the contract may be recommended by the Purchase Officer concerned for approval of Administrative Secretary and Finance Department regardless of the amount involved. This payment will be against a Bank Guarantee or other Suitable Security.

85. Classification. The suppliers of stores of various description handled by the Department are registered under the following categories: 1. Manufacturers in Pakistan. 2. Stockists of imported or indigenous goods. 3. Agents of foreign manufacturers. 86. (1) Fresh Registration and Registration of Additional item: All applications for registration shall be submitted in the prescribed Form (DIS-I) addressed to the Director of Industries (Supply Wing) Registration Section. (2) The application shall be accompanied by a Treasury Challan or Bank Receipt of *[five thousand] rupees (not refundable) to be deposited in the State Bank of Pakistan or any Government Treasury in favour of the Director of Industries (Supply Wing) Government of Sindh Karachi under the Head of Account "1264000-Industries;

126403 Store Purchase". (3) The Firms which are already registered with the Directorate and require to be registered for any other category of stores shall submit application in the prescribed form DIS-IA accompanied by a Treasury Challan of one hundred rupees (Not refundable) to the Registration Section of the Supply Wing". 87. Procedure of Registration. All Firms seeking registration must furnish the following documents along with the application: (i) A copy of the Memorandum and Articles of Association for limited companies and Partnership Deed and Registration Certificate under the Partnership Act for firms. (ii) Treasury receipt of registration fees. (iii) Photo stat copy of Sales Tax Registration Certificate. (iv) Photo stat copy of Income Tax Registration Certificate together with an attested copy of Income Tax Return submitted by the firm. (v) Photo stat copy of CGI. & E's. Registration Certificate as importer. (vi) A Bank report about the financial status of the applicant in a duly scaled cover

with Bank Seals. On receipt of the application, its contents and the documents will be scrutinized by the Registration Section. Provided the Registration such as Bank. Foreign Embassy, Police etc. may be called where ever Wing may be requested for relevant verifications, where ever necessary. For the purpose of verification of the bonafide of firms applying for registration, relevant Certificates and Reports from other agencies such as Bank, Foreign Embassy. Police etc. may be called where ever considered necessary.

After completing all formalities and getting clarification/reports from all concerned, Registration Section will prepare a summary stating all facts of the case for registration or otherwise of the firm and submit to the Director of Industries who is competent authority to accord provisional or final registration.
88. Renewal of Registration: (i) As manufacturers and stockists. - Initial registration under these categories may be renewed/extended upto a period of 3 years at a time on receipt of an application on from No. DIS-3 and renewal fee of '[fifteen hundred rupees] for each year, after getting report from Inspection Wing. Report from Inspection Wing will not be necessary in case of extension being applied for one year only. Performance of the firm will, however, be kept in view while according renewal. (ii) As agents. -In this case initial registration may-be made for the period of

validity of agency agreement and in case of an open agency, for the period of one year. This means that where term of validity is fixed, then renewal of registration within the validity of relevant agency agreement be allowed with least hesitation. In all cases, renewal of registration becomes due on the first of July and the firm must apply for renewal within 90 days thereof. If the firm fails to apply within this period, then its registration will be deemed to have been terminated and it will have to seek fresh registration under the provisions of paras 86 and 87.

All applications for renewal will be made on form DIS-3 and will be accompanied with a Treasury Challan of Rs. 250/- (which Is the renewal fee for one year) deposited in the State Bank of Pakistan or Government Treasury under the head "1264000 Industries; 1264603 Store Purchase". It will be the duty of the Registration Officer to examine the application from all other relevant points and past performance of the firm is also to be taken into account. The registration of the firm would be renewed after all the formalities are completed and results of inquiries initiated are satisfactory. In case of Medical Stores particularly drugs and medicines, neither initial registration nor renewal of registration of any firm should be done without obtaining prior report of the Health Department. Firms seeking registration under this category of stores must produce evidence of valid Drugs Manufacturing/Selling license and/or registration as importer of Drugs and medicines by the Director General Health.
89. Monetary limits-for Registered Firms to take Contracts: The three categories of firms namely: 1. Manufacturers in Pakistan, 2. Stockists of imported or indigenous goods, 3. Agents of foreign manufacturers,

shall be eligible to take contracts upto the Monetary Limits given below provided they qualify the conditions for registration under the respective category limits.
Category 'A'. Firms having an annual certified turnover of Rs. 25. 00 Lacs and above shall be registered under this category. Such firms will be termed as 'No limit firms'. Category 'B'. Firms having an annual certified turnover of Rs. 5, 00 lacs and above shall be registered in this category. Such firms will be eligible to take contracts upto the value of Rs. 25. 00 lacs.

Category 'C. Firms whose annual certified turnover is near about Rs. 1. 00 lac or above but less than Rs. 5. 00 lacs shall be registered in this category. Such firms will be eligible to take contracts upto the value of Rs. 3. 00 lacs.

Note. -If however, the value of a Tender exceeds the monetary limit of a registered firm, it may participate by furnishing Earnest Money for the balance amount (exceeding the monetary limit) at the rate and in the manner prescribed for un-registered firms in para 83 (a) of this manual.
90.

Registration of firms as Manufacturers. Firms desiring registration as manufacturer should clearly state whether the unit has been recognized by the Federal or Provincial Government and that they hold a regular permission letter from the Government or other Financing Agencies such as PICIC, IDBP, Small Industries Corporation etc. The Registration Section is required to call for a verification report from the Inspection Wing, where considered necessary. Bank report is also to be called for in order to examine the financial stability of the applicant firm. Registration of firms as Stockist. The Registration Section will obtain verification

91.

report from the inspection Wing and also call for Bank report before deciding the registration.
92.

Registration of firms as agents of foreign Manufacturers. Firms desiring registration as Agents of foreign Manufacturers shall submit their application duly supported by original/photo-stat copies of the Agency Agreement will the foreign manufacturers. They shall also produce a certificate from the Embassy of the country concerned that the Agency Agreements arc genuine and valid. It would be the duty of the Registration Section to examine the application from all other relevant points. The firm would be registered after all the formalities are completed and results of the enquiries instituted are satisfactory.

93. Cards and Registers. The following cards and registers are to be maintained in the Registration Section: (i) Firm's card showing particulars of firms registered as Approved Manufacturers and Suppliers of various categories of Stores, (ii) Firm's card showing particulars of firms registered as Stockists. (iii) Firm's card showing particulars of firms registered as agents of Foreign Manufacturers. (iv) Register of firms which arc refused registration. (v) Register of firms whose names have been removed from the list of Approved contractors. (vi) Register showing firms blacklisted. 94.

95.

Intimation to be given to the Registration Section regarding failure of firm to execute the contract. Where a firm fails to execute a contract in respect of an order placed with it by an Administrative Department the failure shall be intimated to the Registration Section of the Directorate of Industries with the least possible delay. Proposal for the removal of the firm's name from the list of approved contractors. If it is proposed to remove the name of a Registered firm from the list of approved contractors for un-satisfactory service or behavior, a complete statement of the case should be placed on the record and approval of the Director of Industries obtained before the orders of removal from the approved list are issued. No tender should be issued or orders placed with the firm whose name has been removed and no firm once removed from the list for reasons stated should be re-instated without the approval of the Director of Industries. Orders of black-listing or removal of firms from the list of approved contractors should inter-alia be communicated to all purchase agencies of the Federal and Provincial Governments and their respective Audit and Accounts Departments. If the black listed firm is an agent of foreign manufacturer that country's Trade Commission or Commercial Attach in Pakistan should also be intimated. Copies of periodical statements showing firms registered, refused registration and those black listed or removed from the list of approved contractors shall be sent to the paying authority and all permanent departments/agencies.

96. Subject to the provisions of this Manual, ail Administrative Secretaries will have full powers for the purchase of stores against F. O. R. (Local currency).

Note. -All purchases under Foreign Exchange will, however, be referred to Finance Department (through Director of Industries Sindh) regardless of the amount involved.
97 Ex-gratia payment, Extension of D. P., Imposition and Recovery of L. DS. etc. (a) Subject to the provisions made in para 128 of this Manual, concurrence of the Finance Department should be obtained for making an ex-gratia payment to contractors or to the waiving of Liquidated Damages imposed or to the grant of extension in delivery dates if non-delivery by the due date has resulted in actual loss to Government. (b) Subject to para 128, delivery period may be extended on written request from the Contractor by the Administrative Secretary or an officer authorised by him, provided that the delay is not clue to the fault of the contractor and the market rates as compared to the contract rates have not gone down. (c) Liquidated damages should be levied at the uniform rate of 2% per month or a part thereof. The penalty should be only for the stores supplied late, except where the undelivered stores hold up the use of delivered stores, when it should be for the total value of the contract. The Accountant General Sindh should make payment of the balance amount after deduction of liquidated damages at 2% of the total value of the contract without reference to the Purchase Officer subject to later adjustment (d) Recovery of liquidated damages could be effected from payment due to contractors from other purchase organizations as well. (e) The contractors who refuse to pay liquidated damages for delayed supplies should be removed from the list of approved contractors. (f) Administrative Secretary/Director Industries may waive liquidated damages in consultation with Finance Department provided that. (i) There is no physical or potential loss to the Government, (ii) Rate of stores have not gone down. (iii) contractors is not responsible for delay in the supply of stores. (iv) The provisions of Force-Majeure clause under DIS-12 are attracted. The above certificates will be recorded by the Purchase Officer concerned before the L/D is waived.

Note. -If on re-examination of the case in the light of a representation from the contractor against the decision of the Administrative Secretary, the intention is to reduce a portion of the Government's claim for L/D already imposed, the contractor may orally be requested to give in writing that he would pay the said amount in full and final settlement of the L/D (without disclosing the Government decision/intention) and that it will not be subject to arbitration or legal proceeding, failing which the original decision should stand.
(g) The above procedure excludes the operation regarding allocations of foreign exchange which, would need confirmation of the Finance Department regardless of the amount involved. 98. 98. Powers of Negotiation. - The powers of negotiation without association of Finance Department will vest in the Administrative Secretary except that negotiation in purchases in foreign exchange Will be conducted by the Directorate of Industries in association with Finance Department.

Rate Contracts 99. A Rate Contract is a contract for the supply of stores at specified rates during the period covered by the contract. Approximate quantities will be mentioned in the contract and the contractor is bound to accept any order which may be placed upon hi mat the rates specified within the contract period. As a reciprocal consideration, the Directorate of Industries (Supply Wing) undertakes to order from the contractor all stores under the conrtact which are required to be purchased subject to certain reservations for submitting price to competition and for dividing the contract between one or more contractors. Demands against these contracts should be carefully watched and the contracts should usually provide for 25% increase or decrease in the quantity specified. 100. When rate contracts should be arranged. All stores of standard types, other than those required in small quantities only which are in common and regular demand and the price of which is not subject to appreciable market fluctuations may be purchased on the basis of a rate contract. Stores although in common and regular demand which are subject to Market price fluctuations should ordinarily be purchased on the basis of single contracts, but in special cases rate contracts may be

made for such classes of stores which should include provision for possible flucuation of Market rates. In cases in which there exist slight divergence of standards, efforts should be made to secure co-ordination and standardization and when standardization has been effected, each store should be added to the list of those to be purchased on the basis of rate contracts. 101. Certificate of funds in the case of stores for which rate contracts are arranged. No certificates of funds are required in the case of Rate Contracts initially as no definite contracts are made until actual supply orders are issued. Supply orders issued by Purchase Officers against indent must be covered by duly certified funds. The indenting officers are responsible to ensure that funds exist to cover the cost of supply orders. All rate contracts will be operated by the Supply Wing of Directorate of Industries and no Supply orders their against will be placed by the Indenting Departments. In exceptional cases, Secretary Industries may by special or general order authorize an Indenting Department to act as direct demanding officer for the purpose of operation of the rate contract subject to the approval of Chief Minister/Finance Department. 102. Period of currency. The ordinary period of the currency of rate contracts should be limited to one year but in special cases, a shorter or longer period may be provided for. If it is proposed to enter into a contract for a longer period than one year, the specific sanction of the Finance Department should be obtained regardless of the amount involved in the cotract. No- supply orders may be placed/issued after the date of expiry of the Rate contract. No rates should be accepted in a rate contract as a general rule, except for places where stocks are to be held by the contractor. It in any case it is proposed to include a rate in a contract for a station where stocks are not to be held, the point should be speciafically brought to the notice of the Officer next higher in rank with reasons and his orders taken on the file. In such cases a note should be added prominently in the contract under the heading "Guaranteed stock" that no stock would be held at such places. In some cases contractors undertake to make Supplies from stations where stocks are held by them to meet the excess freight charges themselves. In other cases they merely agree to supply on normal delivery basis unless the indenting officer is prepared to pay the extra freight for supply from the nearest centre where stocks are held. The exact position should ba clearly stated in the contract. 103. Provision of notice for drawal of supplies in rate contracts. -

Provision may be made in the rate contracts that due notice should be given for drawal of supplies against the contract over and above a specified limit (quantity or No. ). Such a provision is intended to enable suppliers to obtain fresh stocks when they are actually out of stock and is not intended to enable them to put off compliance with a supply order even when the material required is in stock. A note on the following lines should, therefore, be given in all contracts containing such a provision: "The notice for recoupment of stocks will be necessary only if the material is actually not in stock but if the material is in stock (he provision will be in-operative even if the guaranteed quantity has already been supplied. 104. Invitation to tender for Rate Contracts. -

The rule regarding the advertising of demands estimated to cost rupees one lac or above as in paragraphs 12(i) and 67 should be strictly observed in the case of tenders for rate contracts. In the invitations to tender for rate contracts, the average value of the articles purchased during the preceding 2 years should be indicated in the following terms: -

"The average value of..............................ordered by this Department during the last 2 years was.......................... " The minimum unit (in quantity or value as may be feasible) below which supply orders will not be placed against a particular contract, should be notified in the invitations to tender. 105. 'Attestation of schedule to rate contracts. -

In the copies of the rate contract endorsed to the Accountant General Sindh, Karachi, all sheets on which prices are shown should be attested by the Purchase Officer concerned. In case of contracts in which the total contract price is given at the end, it will be sufficent for the Purchase Officer to sign the page containing the total Price. 106. Supply orders for stores exceeding in value the monetary limit mentioned in the rate contracts. Rate contract shall contain a provision that they are primarily intended to be utilised for orders not exceeding the amount mentioned therein and that in the case of demands exceeding that limit, the indent should be sent to the Industries Department which will decide whether to call for competitive tenders or to place an order against the contract without calling for tenders. 107. Excess or short drawals against rate contracts. -

If it is found at any time after a contract has been placed that drawals against it would exceed the limit of powers of the officer who arranged the contract, necessary action should be taken immediately to regularise position. When the quantity under a rate contract has been completely absorbed (i. e. an estimated quantity plus the agreed percentage of increase has been drawn or is expeted to be absorbed shortly), the Purchase Officer who has entered into the contract should ask the indenting officer for a supplimentary estimate to cover his requirements for the remaining period of the contract and then offer this quantity to the contractor in extension of the contract arleady completed on the same conditions, unless it is clear that there has been a downward movement in market prices. In the latter case, he should enter into a fresh contract after inviting tenders again. Should a case arise in which it appears that an indentor is likely to fail to take approximately the quantity of stores ordered under a rate contract on his behalf and offered within the contract period, he should be warned before the period expires to avoid any possibility of a claim for damage being made by the contractor. 108. Contract for stores inspected in bulk. In the case of storesordered against rate contracts which are inspected in bulk (e. g. electric fittings including fans, cables electric lamps, electric house service meters and water meters) all supplies are made from the inspected slocks and inspection fees should invariably be levied. No indents for such stores should be accepted for inspection by consignee without special or general orders. The following note of the instructions should be mentioned in all such rate contracts: "Each and every consignment will not be inspected but the stocks held by the firm at the various places will be inspected by the Inspecting Officer concerned from time to time who, on receipt of copies of individual demands, will issue despatch memoranda and inspection certificate, 109. Operation against rate contracts and supply of copies to the various officers of the Department. Supply wing of the Dte. of Ind. should forward 5 copies of each rate contract to the Administrative Departments in the province. Additional copies, if. required by any Admn. Deptt. may on request

be supplied at the discretion of the Purchase Officer concerned. Apart from this, copies should be endorsed to all the probable indentors as the case may be. Two copies of every rate contract against which the Meterological Inspector is required to inspect, should..be suplied to that officer. 110. Supply of copies of Rate contract to the Accountant General Sindh, Karachi. -

Two copies each of every Rate contract entered into by the Directorate of Industries (Supplies Wing) should be supplied to the Accountant-General Sindh, Karachi. In case where a contract is entered into with more than one firm, the Accountant-General Sindh, Karachi should be supplied with the number of copies of the contracts placed plus one additional copy if the contract are typed and renewed and seven additional copies if the contracts are printed. 111. Date up to which supply order may be placed against a Rate Contract. -

A supply order may be placed against a Rate contract so long as it reached the contractor on or before the last date of currency of the contract. Unless otherwise specified in a contract or the supply order, a fortnight may be allowed for compliance with the supply order. While there is no objection to a supply order being placed so long as it reached the contractor before the contract expires, supply may in normal course be made after the contract expires. No supply orders may be placed against a contract stipulating that supply is required on a date after the expiry of the contract. If the stores are not put up for inspection or supplied within a fortnight of the date of supply order (or within the time if any, otherwise stipulated in the contract or supply order), the Department has a right to cancel the supply order. A note to this effect may be made in all contracts. The adoption of the course laid down in the preceding paragraph should be carefully considered when the, contract against which supply order is placed has expired and the new contract provides for more economical rates or when supplies can otherwise be arranged at more favourable terms. If new rates are known before the old contracts are expired and are favourable, officers placing supply orders should be advised to wait until the expiry of the old contract and order against the new contract wherever possible. If a supply order is placed on a contractor so as to reach him before the expiry of a particular Rate contract and the contractor effect delivery of the stores or submits them for inspection with in a period stipulated in the contract (say a fortnight or a shorter period), the stores shall be paid for at the price specified in the contract even if a new contract for the same stores has been entered into with the same contractor for a higher or less or lower price. 112. Placing of Supply Orders against Rate Contracts prior to the date of their commencement. There is no objection to supply orders being placed against Rate Contracts before the date of its commencement provided the date by which the stores an required are put up for inspection within the contract period. The required date of delivery should decide whether a Supply order should be placed against an existing or any pending contract. A Supply order may be placed against next year's contracts in advance on the conditions that the jndentor is prepared to wait for the supply being made after the new contracts come into force. 113. Separate supply orders against each contract. -

When placing demands on supplying firms against Rate contracts, separate supply order must be prepared for supply against each Rate contract. Combining of items relating to different contracts in one supply order often results in the submission of one bill by the supplying firm containing items relating to several contracts. Such bills are not accepted in audit which lead to unnecessary

correspondence and delay in payment. Instructions to this should be given to all officers authorised to place supply orders against such contract. 114. Registration of supply order against Rate contracts for statistical purpose. -

Provision should be made in all contracts to the effect that the contractor should supply by the 10th of every month a statement in the prescribed from of total of supply orders received and supplies made during the preceding month. The Statement should be a consolidated report of supplies from all centres and should besubmitted by the office of the contracting firm with which the contract placed. The statement will show the names of the Indenting Departments to whom supplies are made and not the names of the Purchase Officers by whom the supply orders arc placed. A nil report should be submitted by the due date if there are no transactions toreport i. e. no supply orders have been received and also no supplies have been made. The last report relating to a contract should statewhether or not any supply order or requirement is outstanding for compliance. The report should be continued after the expiry of the contract till all supplies are completed
115. Non-Commercial

Civil Departments of the Provincial Government. - The Directorate of Industries (Supply Wing) being a Service Department, no charge is levied for the services by that Department on non-commercial Civil Departments of the Provincial Government. Credit for such services is, however, taken in the preforma profit and loss account of the Department at the rate charged to other Departments.

116. Commercial Departments of the Provincial Government etc. - Fees are levied at prescribed rates for the services rendered to Commercial Departments and Autonomous bodies or Commercial Schemes of Non-Commercial Departments and quasi public bodies. 117 Rate of fees for purchase and inspection of stores purchased through the Directorate of Industries (Supply Wing). A fee of 1% of the value of stores purchased is leviable to all authorities (except those entitled to free services) on whose behalf purchases are effected by the Director of Industries (Supply Wing), When the 'Directorate' is required to arrange for both Purchase and inspection, a fee of 2% is levied. These fees are calculated on the total contract price of the stores purchased. In the case of orders provided for free delivery at a destination in which the freight to destination is not separately shown in the order, the fees are calculated on the total inclusive price. In the case of re-purchase of stores necessitated by default on the part of a contractor, the Departmental charges should be calculated on the value of stores actually debited to the Indenting Officer 118. Calculation

of fees on orders involving erection at site. - In the case of orders involving erection at site, the charges for purchase are calculated on the total inclusive price. The Inspection charges should be calculated on the total price if the erection is supervised by the 'Inspection Wing' of the Directorate of Industries, Sindh. In case, however, the erection is not supervised by the Inspecting Wing', the Inspecting charges should be levied after deducting the cost (or approximate cost of the erection). Generally, erection is not supervised by the Directorate of Industries, but in case it does, the above provisions shall apply. Calculation of fee's on orders which contain a provision for return of containers to suppliers. - The fees to be levied in such cases are on the value of stores supplied exclusive of the cost of containers. No adjustment of fees is necessary even if the containers fire not returned.

119

120.

Fees for the inspection of orders placed by other authorities for test and analysis and for design of miscellaneous advisory work. - In cases in which the Directorate of Industries (Inspection Wing) undertakes the inspection of stores purchased by another agency or carries out tests, analysis, investigations e. t. c, the charge for such work is made in accordance with the prescribed rates.
The Inspection Wing of the Directorate is also authorized to advise: (i) on specifications prepared by other authorities. (ii) on tender for technical stores received by such authorities and (iii) on the capacity and standing of manufacturing firms abroad to undertake the preparation of specifications and advice in connection with engineering purchases and miscellaneous advisory works Advance deposits are obtained before the tests etc., are carried out on behalf of private parties except well established and regular clients of the Department. No work in this regard is undertaken without an advance deposit from any private party against whom there are amounts already outstanding for work done but not paid for.

121. Work done on behalf of authorities outside Sindh Province. - When the Directorate is permitted to purchase and/or inspect stores on behalf of other Provincial Governments, a fee of 1. 5% for inspection is levied. 122. Levy of fees in the case of rejections and non-acceptance of supplies by consignee against Directorate of Industries Supply Wing's orders or losses in transit. - Such cases will fall in one or other of the following categories: (i) stores not in accordance with the terms of the order passed by the Inspector. (ii)

stores passed in accordance with the terms of the order, but wrong supply made by the firm and replaced.

(iii) stores passed and supplied in accordance with, the terms of the order, but rejected by the consignee and replaced. (iv) stores passed and supplied in accordance with the terms of the order but rejected

by the consignee and not replaced.

(v) losses in transit.

As regards (i) the Directorate of Industries cannot make any charge for the inspection of the replacements. If such stores arc not replaced, no charge can be made for the original inspection nor any charge be levied the purchase in respect of the rejected stores. As regards (ii) no charge can be made to the consignee for the inspection of the replacements unless damages are recoverable and are recovered from the firm on account of the previous wrong supply which would include an element of inspection charges. The fees for re inspection can be set off against the amount of damages recovered to the extent of such damages. As regards (iii) fees can be legitimately claimed for both the inspection i. e. of the original supplies and also of the replacements. If the replacement involved a 'fresh purchase" (.i e. if it entailed the issue of a fresh order for supply), a fee for the purchase of the replacement would also be leviable. The Inspecting Officer should furnish the Accountant-General Sindh, Karachi, with necessary information to enable him to levy the fee for a second inspection in case coming under this category. In the case of (iv) the Directorate of Industries can claim fees both for the purchase and inspection of the rejected supplies. In the case of (v) no fees should be claimed on the value of the stores lost in transit either from the contracting firm or the consignee

or the carrying Railway. Ordinarily, as only 95% of the total value of the goods is paid to contractors before receipt of the goods by the consignee, the question of recovering amounts from firm will arise only in cases in which the value of the rejection or non-acceptance exceeds 5% of the value of total supply. In cases in which the value of the rejections exceed 5% and if they are replaced within a reasonable time, no modification of the action already taken will be necessary. If, however, any appreciable delay occurs in replacement, or the consignee cancels the order so far as the rejected portion is concerned, steps should be taken to recover any sums due from the firm and to alter any recorded entries accordingly. In cases where a demand is wholly or partly withdrawn by an Indenter after the contract has been placed, due notice should be given to the Accountant-General Sindh, to enable him to debit one percent purchase fee proportionate to the quantity withdrawn from the contract.
123. Departmental fees on supply orders against rate contracts which are subsequently cancelled. - No purchase fees should be levied in the case of Supply orders against rate contracts which are cancelled whether the Supply orders are placed direct or through the Directorate of Industries. Supply Wing. No inspection fees should be levied in the case of Supply Orders which arc cancelled if inspection of individual consignments is not carried out but stocks held against the contract are inspected periodically. In case, however, a specific supply is inspected Inspection fee should be leived even if the supply order is cancelled.

124.

Definition of the date of delivery. - The dale of delivery shall mean delivery by the dales specified in the Acceptance of Tender (A/T) of stores which are found acceptable by the Inspector and not the submission of stores which arc not to the standard and which are not delivered by the due date.

125.

Provision of delivery date in the A/T. - In all the acceptance of tenders, supply orders, etc., the date of delivery of stores should be specifically mentioned and no room should be left for any doubt or ambiguity. In fixing the delivery date, the purchase officers will, no doubt, be guided by the instructions contained in the following paragraphs.
Determination of the date of delivery: (i) Local Deliveries. - In the case

126.

of Local Deliveries, the date of delivery should be the date of receipt of stores by the consignee. Where however, there is some time lag between the date on which stores were actually delivered and the date of Receipt Certificate, the date of Receipt Certificate should be treated as the date of delivery unless the date of actual receipt of stores is indicated in the Receipt Certificate in which case the date of actual delivery of stores will be treated as the date of delivery. Where the terms of delivery stipulated in the original Tender are . I. F. in respect of stores of foreign origin and the firm, the Inspector and the consignee are located at one and the same place, the date on which the stores were delivered to the consignee and not the date on which the stores are tendered for Inspection should be taken as the date of delivery. The fact of the contract being on C. I. F. basis will have little bearing on the determination of the date of delivery.

(ii)

(iii)

F. O. R. contracts. - The date of delivery should be the date of "Railway Receipt" i. e. the date on which goods were delivered to the carrier. Goods stocked with the supplier. - Where in terms of the Acceptance of Tender the goods are stocked with the Contractor after inspection at his premises, the delivery date will be the date of inspection.

(iv) Cases in which the inspector or any other authority acts as an intermediary consignee. - In such cases the date of delivery is the date on which the acceptable stores were tendered for inspection or the date on which the stores were delivered to the local intermediary consignee, as the case may be, for onward transmission to the final consignee. (v) Contracts for plant and machinery including erection and testing at site. - In case

of orders for plant and machinery including erection and testing at site, the date by which material should be submitted for inspection before Despatch, the due date for arrival at site, the date by which the work of erection should be completed and offered for final Inspection and test at site and the date for completion of the work, will be stated in the order.
(vi) C&F contract. - The date of shipment should be specifically mentioned in the contract. In such case the date of delivery means the date by which acceptable stores are actually shipped. (vii) F.O.R. contract. - In case of contracts on F. O. R. basis the dated of supply in case of items such as drugs and medicines etc., where laboratory and clinical tests are to be carried out or stores are tendered for inspection, should be taken as the date on which sample is drawn or the stores are tendered for inspection. Such stores may be accepted on warranty certificate and the date of delivery will be the same on which the stores as accepted on warranty basis (without waiting for the test report) are actually delivered to the consignee. In case the stores are rejected in laboratory/clinical test, the firm will be liable to replace them at their risk and cost and the entire period upto the date of delivery of acceptable stores will be with Reservation of Rights.

Watching of deliveries. The responsibility for watching deliveries and completion of contracts will mainly rest with the Purchase Officer, whose function shall be: (i) to maintain rate cards, (ii) to maintain trade books. (iii) to maintain progress of supplies against all the orders placed by the Administrative Secretary/Directorate of Industries as also the position of uncovered items. (iv) to watch the respective inspection notes and bring cases of delays in supplies to the notice of the concerned officer of the Administrative Department/Directorate of Industries. (v) to bring to the notice of the said officer, items lying uncovered. (vi) to submit a monthly comprehensive report on the position of important indents desired by the indentors.

The Indent section of the Administrative Department should invariably, endorse copies of all the Indents to the Purchase Officer concerned.
128. Grant of extension of delivery period. - In. order to minimize the necessity of granting extensions in delivery dates delivery period in the contracts should be sufficiently realistic so that contractors could be pressed to adhere to it. Extension should be granted where absolutely necessary in the following manner: (i) First time extension upto 30 days without liquidated Damages by the Administrate Secretary. (ii) Extension upto 60 days with L. D. (R/R) by Additional/ Deputy Secretary or an officer authorized on his behalf without reference to Secretary. (iii) All cases of extension beyond the above period either with or without L. D. (R/R) and where the stores are liable to price fluctuation, will be referred to Administrative Secretary. (iv) Extension in all cases involving foreign exchange will however, require Finance Department's prior Concurrence. Extension shall not normally be given in a case where originally a high price was accepted because of the delivery stipulation.

No extension should be granted in case of insecticides, pesticides and fertilizers without previous reference to the indentor.

Where extension is beyond the Financial year, the Indentor should be consulted before any extension is allowed. All cases relating to change in the year of payment of any contract will require F. D's approval.
129. Avoidance of extensions in the case of standard articles - When a standard article procurable elsewhere has not been tendered for inspection on due date, the Inspecting Officer should inform the Purchase Officer immediately to this effect so that he can cancel the order and place it elsewhere. Repeated extensions for simple standard articles are a cause of annoyance to the indentor and must be avoided. Procedure in the case of delay in the supply of stores. - f delay is anticipated in delivery against any contract or supply order, the Inspecting Officer should report at once to the competent Purchase Officer concerned who, without further reference to the Indenting Officer may cancel the contract or Supply Order and make purchases in replacement elsewhere, provided, of course, such repurchases will ensure quicker delivery than that offered by the original contractor. Unless the defaulting contractor can show good and sufficient reasons to account for his inability to supply in accordance with the delivery terms of the contract or supply order, the repurchase should be made on his account and risk.

130.

When delay occurs for supplies against rate contracts under which quantities to be drawn are not coordinated and supplies are to be made within definite periods after receipt by contractors of supply orders, the following procedure will be observed. If the Inspector considers that delivery is likely to be delayed, he should inform the purchase officer who will if he considers it necessary cancel or reduce the quantities mentioned in the supply order by writing to the contractor that the reduction or cancellation is being made owing to the failure of the firm to supply in accordance with contract terms. The Purchase Officer will endorse copies of the letter to the Inspecting Officer, the Indentor and Accountant General Sindh.
131. Preliminary Inspection abroad and final inspection by the Director of Industries (Inspection Wing). - Orders on which initial inspection is carried out abroad but final inspection is done by the Directorate of Industries in Pakistan, progress report and Inspection certificate will be forwarded by the respective Inspecting Officer abroad direct to the Directorate of Industries in duplicate i. e. one for the Supply Wing and the other for Inspection Wing (or in triplicate in the case of indentors or consignees who require two copies). Stores which are finally inspected abroad The progress reports and Inspection certificate will be distributed by the Inspection Agency abroad in the following manner: - One copy to the Purchase Officer, one to the Inspectorate in Pakistan and one (or two where necessary) to the Indenting Officer in case where the indenting officer and the consignee are the same. It should be made clear in the orders to whom copies of the certificate and reports should be sent.

132.

133.

Procedure in respect of recoveries of compensation from defaulting contractors for delay in the supply of stores. Notice of intended claim for compensation. - In cases when the firms have failed to keep to the delivery dates and the Purchase Officer is of the opinion that action should be taken against the suppliers for recovery of compensation for the loss caused thereby, he should report the matter to his Deputy Secretary/Deputy Director giving an estimate before hand the duration of the probable delay. Similarly, if loss is caused by delay in supply and the consignee has expressed the opinion that compensation should be claimed, the Purchase Officer should take the matter in hand and proceed with the usual action He. should also in such cases inform the suppliers simultaneously that it is the intention of the Department to claim compensation for the loss caused by the delay in the delivery of stores.

134.

Amount of Compensation. - The amount of compensation recoverable in the case of the default shall be determined by the conditions of the contract governing the supply. It should however, be understood that the amount must be limited to what is considered to be reasonable in the circumstances of each case. Maximum amount recoverable under he terms of the contract should not necessarily be claimed as a matter of course in every case. (i) Claim for small amount. - No compensation should be claimed from a firm when the amount worked out on the above basis is not more than Rs. 500/- or the L/D for two months whichever is less, provided no real or potential loss is reported by the Indentor or the consignee. (ii) Department from tendering: - The best means in such cases of checking the tendency of contractors to secure orders on the strength of promises to supply by a specified date is to suspend dealings for a period of three months at least, or if necessary to cease altogether from dealing with those who show themselves habitual defaulters in the matter. Adjustments of amounts recovered as compensation from the defaulting firms. - Recoveries from contractors as compensation for delays in supply will be credited, to the Indenting Department concerned. Communication of orders. - Copies of communication containing a decision to recover compensation from supplier for late delivery should be endorsed to: (i) A. G. Sindh. (ii) Consignee. (iii) Indentor. (iv) Inspection Officer. (v) F. D. (in cases of Foreign Exchange purchases).

135.

136.

137.

138.

Repurchase in the case of failure of the original contractor. - Indenting Department must refer all cases in which repurchase at the contractor's risk required to be made, to the Purchase Officer who entered in to the contract and suitable action will be taken by him. Repurchase at the risk of a defaulting contractor permissible under the terms of a contract can be made only by Purchase Officer of the Administrative Department:

Recovery of extra cost involved cannot be legally enforced if the repurchase is ordered by the Indenting Officer or consignee direct. In case of great urgency, purchase Officer may authorise local purchase direct by the Indenting Officer concerned to be confirmed by a final order from the Administrative Secretary.
139. Authentication. - Copies of all contracts placed by the Administrative Department or Directorate of Industries, Sindh (Including request for opening Letters of Credit by Government) and amendments thereto are required to be forwarded to the respective paying authorities through the Special Verifying Officer appointed in the Supply Section in respect of contracts placed by them. The Purchase Sections placing the contracts would tabulate with the acknowledgement of receipt retain one copy as office copy accompanied by one copy each of the contract/amendment/3 copies of L/C request duly signed by the Purchase Officer concerned. The Special Verifying Officer would retain one copy for his record and forward-two copies together with A. Ts/Amendments along with a consolidated list in duplicate (giving 'S' No. to every A. T/Amendment) to the Accounts Officer, concerned. The Accounts Officer will retain one copy of the consolidated list and one copy of Form DIS-25/26 together with contracts/ amendments for his necessary action. The Accounts Officer will return the 2nd copy of the consolidated list and one copy of Form DIS-25/26 acknowledging receipt to the documents.

All L/C amendments regarding extension in the date of shipment either with or without L. D. (R/R) duly concurred by Finance Department shall be routed to the State Bank of Pakistan under intimation to Accountant General Sindh. All L/C amendments other than extension in the date of shipment will be routed to State Bank of Pakistan through Account General, Sindh.
140. The following two stamps would be used by the Authentication Officer, (S. V. O., ) one for the contracts (including request for L/C) and the other for amendments issued thereto: GOVERNMENT OF SINDH CONTRACT

S. No................... Date................... Signature......................................... Department/Directorate of .............................................................. (Supply Section) DEPARTMENT/DIRECTORATE OF... ........... ......................................................

(SUPPLY SECTION) GOVERNMENT OF SINDH AMENDMENT S. No................... Date................... Signature......................................... Department/Directorate of .............................................................. (Supply Section)

These two stamps should be affixed as close to the signature of Purchase Officer as Possible. The Special Verifying Officer is required to authenticate all the signatures of the Purchase Officer which should be in full and only in ink on the documents. 141. In the case of all contracts (including request for L/C and amendments there to) placed by the Supply Section copies thereof are to be, forwarded to the Accountant General Sindh, through Special Verifying Officer in the a foresaid manner. 142. It is to be noted by all the Purchase Officers concerned that all clauses of the contract particularly the payment clause should be worded in unambiguous terms to facilitate payment to the supplier. The Authentication Officer is responsible only to certify the signature of the Purchase Officer, rest being the responsibility of the Officer, signed the contract. Three specimen signatures of all the Purchase Officers are required to be maintained by the Special Verifying Officer to enable him to verify the Signatures. As regards specimen Signatures of the Special Verifying Officer, these are kept by the Paying Authority concerned.

ANNEXURE-A

To be sent Regd. A. D.
GOVERNMENT OF SINDH

Indent Form No. DIS-4

Department/Directorate of---------------------(Sindh) (SUPPLY SECTION) Indent should be submitted in quadruplicate and should be filled in accordance with the instructions on pages 59 and 60 (incomplete or otherwise defective indents will be returned).

1. 2. 3.

Indentor's Indent No ____________________________________________________ date________________________________________ Indentor's designation and address _____________________________________________________________________________________ Indentor's telegraphic address ______________________________________________ Telephone No _______________________________

4.

Accounts Officer to whom the cost of the stores with departmental fees, where leviable, is to be debited. _________________________________
________________________________________________________________________________________________________________

5.

Head of account to which cost is debitable _______________________________________________________________________________ ________________________________________________________________________________________________________________

6. 7.

Date by which stores are required ______________________________________________________________________________________ Consignee's designation and address ____________________________________________________________________________________ Name of the Railway Station to which the stores are to be booked _____________________________________________________________ Whether the stores are to be despatched by goods/passenger train or by air, ______________________________________________________

8.

9.

10. Whether the stores are to be booked "freight paid", or "To pay"________________________________________________________________ 11. Whether stores are to be insured or not__________________________________________________________________________________ 12. Whether stores are to be booked at Railway or Owner's Risk _________________________________________________________________ 13. Special instructions, if any ____________________________________________________________________________________________ 14. Particulars of Stores demanded. Specification ESTIMATED No./Drawing No. Total COST Accounting and other quantity Unit Particulars to required Rate per Total unit Cost guide supply 3. 4. 5. 6. 7.

Item No. 1.

Detailed Description of Stores 2.

Space for use for remarks by the Technical Committee/office of the Dy. Director of Inspection, Karachi 8.

To be based on prevailing market rates or last purchase rate if market rates are not readily available Signature of Indenting Officer________________________________________________ Signature of Deputy Secretary (Technical)/Deputy Director of Inspection________________

15. (a)

FINANCIAL CERTIFICATE TO BE GIVEN WHERE FUNDS ARE AVAILABLE.

I certify that the expenditure involved has received the sanction of competent authority and that funds are available under the proper head in the sanctioning budget allotment of the indenting Department for the year _____________________ It is certified that the funds amounting to Rs. _____________________earmarked against this indent ad available after deducting all outstanding commitments previously made. These funds will not be utilized elsewhere and also F. D will not be asked for any additional amount to meet the expenditure against this indent.
Signature of the Indenting Officer. (b) FINANCIAL CERTIFIED TO BE GIVEN WHERE EXPENDITURE IS TO BE INCURRED BEFORE FUNDS ARE AVAILABLE.

I certify that the expenditure involved has received the sanction of competent financial authority and that I have been authorised by Govt. to incur liability in respect of the stores indented for herein in anticipation of funds being provided for the same
Signature of the Intending Officer. (c) CERTIFICATE TO BE SIGNED BY DEPOSIT PARTIES SUCH AS STATUTORY OR LOCAL BODIES. I authorise you to enter into a contract for the purchase of the stores specified-in this indent on such terms as conditions as considered as suitable by you in the name and on behalf of the Indenting Department. cost of the stores including other charges has been deposited in Bank Vide L/C No. __________________Vide Receipt No. in Treasury _______________ (enclosed) in favour of the Accountant General Sindh Karachi, for dated__________________ for Rs. Signature of the Intending Officer. (d) CERTIFICATE OF THE AVAILABILITY OF FOREIGN EXCHANGE. I certify that the foreign exchange required for the purchase of the stores indented for has been authorised by the competent authority vide letter No. dated (copy enclosed an d is debitable to the foreign Exchange quota of allocated to the said authority by Government for the period 19 Signature of the Indenting Officer. Signature of the Intending Officer. INSTRUCTIONS FOR FILLING THE INDENT FORM. (1) Indents must be submitted in quadruplicate and should be clearly marked as Original, Duplicate Triplicate and Quadruplicate. (2) In case of spare parts, 8 copies of indent should be sent and each indent should be for spare of different machines. (3) All the entries in the indent form should be typed in double space and not hand-written to avoid mistakes. (4) Separate indents should be prepared for each type of store and in no circumstances one indent should contain more than six items of similar nature excepting spare parts which should be for one type of machine. (5) If stores similar to the one previously purchased arc required, a complete reference should be given to guide supply.

(6) As far as possible standard specifications for different stores available with the Administrative Department /Director of Industries (Inspection Wing) Karachi should be adopted and if considered necessary prior consultation should be held with him. Where it is not possible to adopt standard specification the indenting officer should draw his own specification giving full particulars of the store required and enclosed 25 copies of the same together with the same number of drawings., where applicable, with the indent for the guidance of the tenderers. (7)

If the space provided for particulars of stores in the indent under item 14 is not sufficient, continuation sheets Form DIS/4/C8 should be attached.. All additions and alterations or cutting in the indent should be clearly initialled by the Indenting Officers.

(8)

(9) A specific date by which the stores are required should be staled in the indent. Such terms as "IMMEDIATE", "AS EARLY AS POSSIBLE" '"URGENTLY REQUIRED" etc., should not be used. (10) Ordinarily, it takes 3?4 months to place a contract provided the indent received is complete in all respects. Another 3?6 months are required by the contractors for arranging supplies depending upon the nature of the store. The Indenting Officer should, therefore, keep these points in view while deciding the delivery date. (11) In accordance with the Government policy, not stores except highly valuable, fragile, volatile and easily breakable are to be insured. The Indenting Officer will, therefore, keep in view these instructions while deciding whether a particular store is to be insured or not. ln the absence of specific advice, it will be presumed that the stores are not to be insured. (12) If the goods arc insured or despatched on Railway risk, in the event of any damage or loss the consignee will lodge claim with the party concerned to made good his losses. In case the goods are not insured or despatched at owner's risk, the consignee will bear the loss. (13) The estimated cost of the stores must be given which should be as realistic as possible and should be based on the current market prices (14) Copies of Tender Invitations and Contracts are invariably endorsed to the lndentors. Any mistake or discrepancy found therein should be reported to the Supply Wing within seven days of issue, failing which it will be presumed that the documents in question arc in order. (15) It takes considerable time to procure stores and therefore, to ensure timely supply, the Indenting Officers should plan their requirements well in advance of the actual date by which the stores are required. (16) In

accordance with Government decision, inspection of stores will be carried out by the Deputy Director of Inspection, Karachi or any other agency specified in the contract. The indentor will not, therefore, specify any inspecting authority.

(17) According to Government instructions stores of proprietary make will not ordinarily be demanded. Where it is absolutely necessary to procure stoics of specific make in accordance with the Government directive, sanction of the Administrative Secretary of the Department concerned should be obtained and attached with the indent. In such cases complete addresses of the manufacturers and their agents, together with full particulars of the stores and the copy of the catalogue relating thereto should be furnished with the indent. In the absence of such particulars, the indent will not be accepted unless the Indenting Officer agrees to accept similar stores which should be indicated in the indent by inserting the word "or similar". (18) Where imported foods are demanded either for direct import or procurement locally ex-stock, Foreign Exchange has to be provided and the certificate at serial No. 15 (d) regarding availability of Foreign exchange must therefore, be signed. In the absence of such certificate, procurement will not be arranged even though budget provision in Pak. currency may exist. (19) According to Government instructions, even in the case of stores manufactured in the country where imported raw material is used, foreign exchange has to be provided to the extent of the value of imported raw material used and the amount of foreign exchange to be provided will vary form store to store. In such cases, foreign exchange at 60 % of the estimated value of the store on the average must be provided. (20) On

receipt of stores, the consignee shall furnish to the contractor Receipt Certificate promptly and in any case it should be not delayed beyond 15 days of the receipt of the

stores.
DECISION OF THE INDENT SCREENING COMMITTEE LIMITED TENDER/SINGLE TENDER/ADVERTISED TENDER. Any other special Instructions Signatures Chairman 3. Member (Inspection/Technical) ___________________________________________ _______________________ Member (Finance) 4. Secretary, Indent Screening Committee ____________________________________ _________________ (In case of Indents in foreign exchange) Dated _____________________ __________________________________________

1. 2.

ANNEXURE-A

REGISTRATION FEE Rs. 1000/(Not Refundable).

GOVERNMENT OF SINDH

FORM DIS-I

DIRECTORATE OF INDUSTRIES (SUPPLY WING), KARACHI. (Application Form for registration as approved Suppliers to the Administrative Departments/ Directorate of Industries Sindh (Supply Wing).
(1) Name of the firm. _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _

(2) Address of the office.

(3) Telegraphic address

(4) Telephone No. (if any).

(5) Address of Branch Office (if any).

(6) Agent/Sub-Agents in the country (if any).

(7) Bank reference.

(8) Name of person or persons in whose name the account is maintained. (9) Person's authorised / accredited to sign correspondence, acknowledgement of contracts etc., on behalf of the firm, (subsequent changes should be communicated to the Supply Wing without loss of time).

_____________________________________________________ _

(10) Is your firm sole proprietory/ partnership or a limited company. (11) In the case of Limited Co. or Partnership concern, enclose attested copy of the Memorandum and Articles of Association or Partnership Deed, as the case may be (12) Enclose attested copy of the Registration Certificate under the Companies Act,1913 or Partnership Act. (13) Indicate Authorised Capital.

_____________________________________________________ _

_____________________________________________________ _

_____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _

(14) Indicate (15) Attested

Paid up Capital.

copy of registration certificate with the C. C. I. & E

_____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _

(16) Attested copy of Income Tax Registration Certificate. (17) Attested copy of Sales Tax Registration Certificate. (18) No. and date of Treasury Challan for registration fee of Rs. 1000/- (original treasury receipt must be attached).

Head of a/c under which Registration Fee is to be credited: "1264000? Industries, 1264603? Store Purchase"
(19) If your firm is registered as approved suppliers. with any of the Government Purchase Organization, attested copy of Registration Certificate should be enclosed. (20) Is

_____________________________________________________ _

_____________________________________________________ _

your firm ever black listed by any Government Department Purchase Agency.

_____________________________________________________ _

PART-I

(Information to be supplied by firms desiring registration as Manufacturers).

(1)

Name of stores for which registration is applied for. Name of foreign/ indigenous manufacturers whose agencies arc held by the applicant.

_____________________________________________________ _

(2)

_____________________________________________________ _

(3)

Attested copies of the Agency Letters. Territorial limits of the Agencies. Value of stocks held by the applicant at the time of submitting this application. No. of factory workers employed. Annual optimum capacity of the Factory (with value). Annual rated capacity of the Factory (with value). Annual Sale daring the last Financial year with quantity and value) registered under the Development of Industries Rules, 1950.

_____________________________________________________ _ _____________________________________________________ _

(4)

(5)

_____________________________________________________ _ _____________________________________________________ _

(6)

(7)

_____________________________________________________ _

(8)

_____________________________________________________ _

(9)

_____________________________________________________ _

(10) Whether

_____________________________________________________ _

PART-II

(Information to be supplied by firms desiring registration as Stockist and/or Agent and/or Importers).
(1) Name (2) Name

of stores for which registration is applied for.

_____________________________________________________ _

of foreign/ indigenous manufacturers whose agencies arc held by the applicant copies of the Agency Letters. limits of the Agencies

_____________________________________________________ _

(3) Attested

_____________________________________________________ _

(4) Territorial (5) Value

_____________________________________________________ _

of stocks held by the applicant at the time of submitting this application. annual sales of the firm duly supported by copy of Income Tax assessment orders.

_____________________________________________________ _

(6) Normal

_____________________________________________________ _

WITNESS NO. I

Name and Signature _________________________________ Date ____________________________________________ _

SIGNATURE OF THE APPLICANT

NAME ( DATE WITNESS NO. I

Name and Signature _________________________________ Date ____________________________________________ _

REGISTRATION FEE ADDITIONAL ITEMS Rs. 1000/(Not Refundable).

GOVERNMENT OF SINDH

FORM DIS-IA

DIRECTORATE OF INDUSTRIES (SUPPLY WING), KARACHI. (Form of application to be used only by those who have been Registered by the Directorate of (Industries Government of Sindh.)
(1) Name of the firm. _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _

(2) Address.

(3) Telephone No.

(4)

Registration No. and date. No. & Date of Enquires issued. No. & Date of your offer in response to enquiries issued.

(5)

(6)

_____________________________________________________ _

(7)

No. & Date of Contracts placed. Description of Stores for which Additional Registration required. Do you seek Additional Registration as: (i) Manufacturers. (ii) Stockists. (iii) Agents. IN CASE OF MANUFACTURERS: (a) Exact location and site of the Factory: (b) Details of additional machinery installed: IN CASE OF STOCKISTS: Details of stocks with value there of: IN CASE OF AGENTS: Agency Certificate from the Foreign Manufacturers in Original. Date: _________________________________

_____________________________________________________ _

(8)

_____________________________________________________ _

(9)

(I)

(II)

(III )

Signature of Applicant _________________________________

ANNEXURE-C

REGISTRATION RENEWAL FEE

FOR ONE YEAR Rs 250/(Not Refundable). GOVERNMENT OF SINDH

FORM DIS-III

DIRECTORATE OF INDUSTRIES (SUPPLY WING), KARACHI. Application Form for the renewal of registration of approved contractors for the financial year ending:
(1)

Registration No.

_____________________________________________________ _

(2)

Date of Registration. Name of the firm. Postal address of the firm. Telegraphic address. Telephone No. (If any). Name and full address of the:
(i)

_____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _ _____________________________________________________ _

(3)

(4)

(5)

(6)

(7)

Proprieter Managing Agents/Managing Directors (iii) Directors

(ii) (8)

Address of the Branch Office, (If any), Give details (in the space provided on reverse) of Contracts awarded or Tender Enquiries responded during the preceding year but not successful. your registration with any Central or Provincial Government Department has taken place or has been cancelled, if so, please give details. state if renewal is applied for one, two or three years (Renewal of registration in the case of Agents of Manufacturers Suppliers will be made within the validity of relevant agency agreement only). and date of Treasury Challan for renewal fee at Rs. 250/-per year (original treasury Challan must be attached).

_____________________________________________________ _

(9)

_____________________________________________________ _

(10) Whether

_____________________________________________________ _

(11) Please

_____________________________________________________ _

(12) No.

_____________________________________________________ _

I/We certify that the particulars given above arc correct to the best of my/ our knowledge and belief. (SIGNATURE OF THE CONTRACTOR) DESIGNATION OF THE SIGNATORY. (Here indicate the capacity/authority of the person who has signed this form).
FORM DIS-III 9.

Details of Tender Enquiries and Contracts:

Serial No. No. and date of Tender Enquires received No. and date of Tender Enquires responded No. and date of contracts if REMARKS placed

SIGNATURE OF THE CONTRACTOR.

N. B. (i)

in case no Tender Enquiries have been responded by the firm, the reasons thereof should be recorded in the remarks column.
In case the space provided is not sufficient, separate sheet should be attached ANNEXURE-D

(ii)

Time Schedule to be observed by the concerned in disposal of a case.

S. NO. SECTIONS: TIME SCHEDULE: 1. Date of receipt of Indent and date of Ref. to I. 2 days. W/Tech. Committee. 2. Date of receipt in l. W/T. C. and

return to S.W.
3. 4. 5. 6. 7. 8. Date of return from I. W/T. C and ref. to I. S.C. Date of l. S. C decision and date of issue of T.E. Date on which tender opened and date on which C. S. prepared and sent to I. W/T.C. Date of receipt in l. W/T.C. and of return to S.W. Date of receipt in S. W. and date of submission of P. P. to Officer I/C, S.W. Date of receipt by Purchase Committee and date on which final orders passed by Administrative Secy. and A. T. issued.

3 to 4 days.

3 to 7 days.
3 to 7 days.

2 to 4 days. 3 to 5 days.
3 to 6 days.

3 to 7 days.

9.

10.

Date of ref. to F. D. and date of return from F. D. in case of F. E/Shipment cases. Date of receipt from F. D. and date on which A. T. issued. NOTE In case of extra-ordinary delay at any stage, reasons for delay are to be recorded by the officer concerned.

10 days.

2 to 3 days.

ABBREVIATIONS 1 2 3 I. W. Inspection, wing S. W. I. S. C.

Supply Wing. Indent Screening Committee.

T. E.

C. S. P. P. D. D. D. I. F. D.

Tender Enquiry. Comparative Statement (Abstract) Purchase Proposal. Deputy Director (Supply). Director of Industries.

A. T. I/T R/C I/O D. P. L. D.

Finance Department. Acceptance of Tender (Contract) Invitation to Tender. Rate Contract. Indenting Officers.

R. R. N. O. C. A. O. P. I. E. M. S. D. B/E B/L

Delivery Period. Liquidated Damages. Reservation of Rights. No Objection Certificate Accounts Officer. Purchase Instruction Earnest Money.

L/C C and F F. O. R. F. O. B. F/E F. A.

Security Deposit Bill of Entry Bill of Lading. Letter of Credit. Cost and Freight.

S. A. T. E. S. T. E. L. T. E. A. G. L. P. R. C. L. & F. N. I. C. P. C. I. N.

Free on Railway. Free on Board. Foreign Exchange Freight alongside Ship. Advertized Tender Enquiry. Single Tender Enquiry Limited Tender Enquiry. Accountant General. Last Purchase Rate. Cost Insurance and Freight. National Insurance Corporation Proprietory Certificate Inspection Note.

Procedure for utilization of allocation under Barter Agreements laid down by Government of Pakistan, Ministry of Commerce as adopted by Government of Sindh. GOVERNMENT OF PAKISTAN
MINISTRY OF COMMERCE

Instructions on procedure to be followed by public Sector Agency for Utilization of Allocations under Barter Agreement: As soon as an Agency receives allocation under any barter agreement with any barter country, it should immediately get in touch with the Trade Representative/Commercial Counsellor of the country concerned. They have their Offices at Islamabad and Karachi. Immediate enquiries should be made from him if the goods required by the Agency concerned are available in the barter country according to the required specifications.
2. In case goods of requisite specifications are not available, the allocation should be returned to the Ministry of Commerce, through the Provincial Government in case of agencies under them and direct to Ministry of Commerce by Central Agencies and Autonomous bodies in Pakistan. Provincial Governments are authorised to transfer allocation from one agency to another agency under them for the same item provided: (i) (ii) the ceiling of allocation to the Provinces for any specific item is not disturbed. allocation or allocations to be so made to various agencies are covered by approved demand contained in the foreign exchange budget of the agency or agencies concerned.

(iii)

all such re-allocations are promptly brought to the notice of Ministry of Commerce/Finance and the Office of the National Bank of Pakistan, authorised to deal with the barter accounts (please see para 11).

3.

4.

5.

As soon as enquiries have satisfactorily been completed, Agencies making their purchases through a centralised purchase agency for them should place their indents on the latter complete in all respects. The purchase organizations should then issue necessary tender enquiry to determine competitive prices and negotiate other terms and conditions for the delivery of goods. Barter countries more often than not quote higher prices in the first instance. Efforts should therefore be made to determine the competitive prices, notwithstanding tied, nature of source of supply, with reference to known prevailing prices for comparable goods from other sources and purchases should be made at the most competitive prices. In cases where prices of items seem to be out of line with the world market prices, such cases should be examined on their own merits and decisions taken thereon with the approval of the competent financial authorities relating to agencies concerned. Where prices were completely out of line with the internationally prevailing competitive prices, such cases should be referred to Commerce Ministry for prompt intervention at inter-Government level.
Contracts for purchases as in paras 3 and 4 should be finalised within 150 days from the date of allocation. 7. Such agencies as make their own purchases (like ADCs. IDCs, WAPDAs, Railways etc. ) should: (a) immediately issue tender inquiry on the Trade Representative concerned or their nominated agents, and (b) finalise terms of the contract keeping in view the instructions in paras 4 and

6.

8.

5.The process should be completed within 90 days from the date of allocation. For such items, procurement of which is to be made through the T. C. P. as indicated in the letter containing allocations, orders should promptly be placed by the concerned agency either with the. Head Office of the T. C. P. at Karachi or their Regional Office at Lahore. relevant letters of credit shall ordinarily be expressed in terms of Pakistani Rupees. In case they are expressed in U. S. dollars or any currency other than in Pakistani rupee, the relevant invoices, drafts, payment orders, etc., shall be converted into Pakistani rupees at the parity rate on the date of payment. All contracts for imports to Pakistan shall be registered with the National Bank of Pakistan (Head Office Karachi) or their nominated offices in the country before L/cs are established. Names of such nominated offices will be announced by the Head Office of the National Bank of Pakistan through a Press Note.

9. Unless otherwise authorised, all imports into Pakistan under barter shall be on C&F basis. 10. The prices etc. in the contracts for imports and the establishment of

11.

12. Reference to relative agreement in any documents (contracts, invoices, credits, etc. ) shall be as in the caption of the letter containing allocations. 13. In negotiating period of delivery particulars of items of machinery and equipment, the supplies should be cautioned to be extremely careful. They must be warned to strictly adhere to the Schedule of delivery once it has been agreed and incorporated in the contract. Extension in the same can be allowed only in exceptional circumstances as per terms of the contract and only. for a reasonably short period. Indiscriminate extensions shall not be allowed by the buyers and in case of default, they should rigidly enforce the provisions for claiming payment of damages. 14. In negotiating contracts, care should also be taken to ensure that such items import

of which is not permissible at that time under the relevant import policy, are not

included in the contract.

15. Licensing authorities should be asked to issue import license / authorisations with validity corresponding to the period of delivery agreed upon in the contract. It is to be clearly understood by all concerned that the validity of the barter agreement is for conclusion of contracts between the exporters and importers of the countries concerned and not for delivery of goods which may be effected even after the validity of the agreement has expired. 16. A copy of the contract when finalised may be forwarded to Ministry of Commerce

for record only.

17. Each agency will send a monthly report separately for each country showing progress made in utilization of allocation giving information on the following items: (a) (b) (c) (d) (e) Agreement No. and date. Items allocated. Value of allocation. Date of allocation. Position of implementation: (i) Value/date of contract. (ii) Value/date of establishment of L/C. (iii) Value of actual import.

(f)

Remarks: (in this column please indicate the period of delivery as in the contract).

18.

In case of any doubt on any point not specifically elaborated above, a reference may immediately be made to this Ministry.

Copy of Government of Pakistan. Ministry of Industries letter No. 18 (i) 11/54 dated 14 May, 1954 as adopted by Government of Sindh. GOVERNMENT OF PAKISTAN MINISTRY OF INDUSTRIES Karachi, Dated the 14th May, 1954. OFFICE MEMORANDUM.

Subject: PROCEDURE TO BE FOLLOWED BY THE DEPARTMENT OF I. P. &S. GOVERNMENT OF PAKISTAN. IN REGARD TO PURCHASE. INSPECTION. PAYMENTS & DISPOSAL. The undersigned is directed to say that a committee was recently appointed by Government to review the present procedure in force in the Supply, Disposal and Inspection Wings of the Department of I. P. & S. and to make recommendations for effecting improvements therein. The committee examined in detail the procedure at present followed by that Department and submitted a report (to be shown hereinafter as the Waheed Report) containing a number of recommendations which are intended to improve the overall efficiency of the Department of I. P. &S. and cut down delays in effecting supplies. The Government have considered these recommendations of the committee and are pleased to issue the following orders: 2. PURCHASE PROCEDURE. The Department of I. P. &S. should immediately start maintaining the following basic documents which are essentially required for any business organisation of this type:

(a) (b) (c) (d)

Trade Book Complete store wise list of registered firms in each branch. Progress Register To watch progress of supplies. Rate Cards? Storewise record of the prices paid for each contract. Performance Register To show performance of contractors against each indent/contract. This would enable cutting out of unsatisfactory firms. It is understood that necessary forms on which the above records could be maintained have already been drawn up by the Department. 3.

All indents on receipt, after being routed through the Screening Committee, should be passed on to the Director concerned for deciding on the method of purchase in personal consultation with the Inspection Wing and/or Supply Finance as necessary. For this purpose daily meetings should be held in each Director's room and should be attended by the representatives of Inspection (Finance). Weekly programme of such meetings should be drawn up by D. D. G. (S) to avoid overlapping. When an indent is above the Director's powers, he should obtain approval of the competent authority. Functions of the Screening Committee should be reviewed and modified as necessary to fit in with these arrangements.
Rubber stamps should be used to indicate the different methods of purchase and the particular method decided upon should be ticked oft under the signature of the Director. Another rubber stamp may be used to indicate that the paper particulars have been checked and found correct. This is, however, not necessary in the case of Defence indents where the indents are routed through the Defence Inspector concerned. After the purchase method has been decided upon, which should not take more than 24 to 48 hours, the indent should go to the Statistical Branch. For this purpose it is considered that the work at present being handled by a set of four branches should be entrusted to three branches and one branch should be converted into a Statistical Branch. The latter Branch should be responsible for maintaining Trade Books, Progress Register, Rate Cards, Performance Register and should also handle all work connected with issue of enquiries to the trade on the basis of method of purchase decided by the competent authorities. The form of enquiry to be issued to the trade for submission of tenders should inter-alia include a slip containing detailed columns of a comparative statement This slip should be filled in by the prospective tenderers in duplicate. On receipt of tenders, one copy of the completed slip should be detached and pasted on the comparative statement form. This will avoid re-writing of all the quotations received and facilitate submission of comparative statements to the Purchase Officer concerned without delay. In straight forward cases, i. e., where lowest quotations are proposed to be accepted, the decision should be recorded by the competent Purchase Officer on the comparative statement itself by drawing a circle in red around the acceptable quotation and marking it "ACCEPT" in red under his signature. In complicated cases, however, noting may be resorted to, but such noting should be very brief and to the point. While considering comparative statements, the following points should be borne in mind: (a) (b) (c) (d) No offers other than those in Pakistani currency/pound sterling/dollars should be considered. No offer for delivery at a point other than that asked for in the tender should be considered No offers on the basis of units other than specified in the tender form should be considered. Delayed and/or late tenders should be ignored altogether and there should be no counter offers on the basis of these quotations.

4.

5.

6.

7.

8.

9.

The above provisions should be brought home to all prospective tenderers by publication in all important newspapers which should be repeated every month for a period of six months. These provisions should also be brought out in the form of a letter which should be printed in red and copies issued once a month to all registered parties (or a period of 6 months. Copies should also be circulated to ail our Embassies located in manufacturing centres. 10. Tenderers should not be asked to keep their offers open for more than 15days save in exceptional case where unavoidable delay in adjudicating on offers may be anticipated 11. Where offers upto specifications are available, no reference should be made to the Inspection Wing. A reference to Inspection Wing would, however, be necessary when there is no offer upto specifications. Doubtful cases may also be referred to Inspection wing where such a course is considered to be absolutely necessary. 12 .Tender samples should not normally be called for. Where provision of tender

samples is necessary, the Inspection authority concerned should he asked to report in the tenders samples of 2/3 competitive tenderers and not on all tenders. In the case of samples required to be inspected by the Inspection Wing of the Director General, l. P. &S., the comparative statement, together with the Under should be referred to that Wing to facilitate expeditious scrutiny and report.

13. The contracts should not be placed on the basis of price variation except in cases where no offers are available or where stores are to be manufactured over a long period such as plant and machinery. 14. Rate contract should be concluded for us many items as possible. A Committee consisting of the D. D. G. S), Directors of Supplies, Director of Inspection and U. S. (SF) should be set up to draw up a list of additional items for which rate contracts could be advantageously concluded. 15. Officer-in-Charge of the Statistical Branch should review Progress Registers from time to time and bring delays in supply to the notice of the Offcer-in-Charge of the Contract Branch for suitable action. Serious delay cases should be brought to the notice of the Director ad where necessary to the notice of D. D. G. (S), /D. G. The Director or Deputy Director incharge of the Directorate will be held personally responsible for the effective and prompt action for procuring stores against Merits allocated to his Directorate and it is he who should initiate action to eradicate delays in consultation with the D. G. 16. Monthly meeting should be held by D. G. where Directors should report progress of

17.

supplies in respect of the indents outstanding with their respective Directorates and a consolidated report in a form to be prescribed submitted to Secretary (Industries) on the 7th of each month. Indentors should be kept informed of the position if and when any delay in supplies takes place.

18. Occasional conferences of the main Indentors/Inspectors should be called to discuss each others difficulties. Inspection Wing should be represented. Full-advantage should also be taken of the indentor`s Liaison Officer attached to the Department of I. P. &S. 19. A statement showing position of all outstanding indents received prior to 1st October, 1251 should be drawn up and a senior officer placed on special duty to expedite their disposal The progress of clearance of these indents should be reviewed fortnightly at D. Gs. level. A monthly report should also be made to Secretary (Industries). INSPECTION 20. Steps should be taken to reduce load on the Inspection Wing by eliminating detailed inspection prior to supply in cases where supplies are being procured from manufacturers of repute provided such manufacturers are prepared to give necessary warranty regarding quality etc. This should be possible without any difficulty particularly in the case of proprietary articles and also in cases where we are buying standard stores such as P. O. L. Tyres and Tubes, Jute Bags, Sewing Machines, etc. 21. Where rate contracts are concluded for standard materials such as P. O. L.., Tyres Tubes Cement and similar other items, no Inspection Notes need be issued. In such cases detailed inspection of individual consignments will not be necessary. Stock inspection will, however, be carried out which should not in any case involve delay, in supply. 22. D. G. may eliminate inspection altogether in cases where such a course is considered

to be in the interest of the State, but before doing so, he should secure approval of the indentor and the Ministry of Industries and Finance.
23. The above procedure if strictly adhered to would reduce the work in the Inspection Wing and should thus enable that Wing to dispose of the balance of work quickly. References should be replied to by the Inspection Wing normaly within a week. Progress should be watched and in case a reply is not received within a week, the Purchase Officer should contact the Inspecting Officer concerned personaly and if necessary bring the matter to the notice of the Director of Inspection, or D. G, 24. Technical references to indentors where required should be made by the Inspection Wing both on indent and tender files. The Inspection Wing will keep the Purchase Officer informed of developments. 25. The Inspection wing of the D. G., I. P. & S. are maintaining complete sets of specifications and drawings governing supply of stores required by various Government Departments except the Defence, Spare copies of these specifications and drawings, are however, not available with them for issue to the trade except in the case of D. G. I. P. &S. /P. &T. Standard Drawings. The D. G. I. P & S Standard Specifications are available with the Manager of Publications, Government of Pakistan, Karachi, for issue to prospective tenderers on demand, but no arrangement exists in this Department for supply of Railway and Defence specifications/drawings to prospective tenderers, in order to meet the situation, a specifications/drawings branch may be set up and made responsible for maintaining, a complete set of specification and drawing governing supply of all stores handled by D. G l. P. &S. it should also maintain spare copies for issue to prospective tenderers for guidance. Rotar printing machine in D. G., I. P. & S. should be utilized for preparing-copies of the specifications and drawings. This would avoid delays in securing copies from indentors particularly Defence and Railways. Arrangements may also be made with the Defence and Railway Authorities for regular supplies of specifications/drawings as required from time to time. The Government attach some importance to this dissemination of technical knowledge to the trade and industry. It is bound to improve considerably the performance of business houses in the mater of supply in accordance with standards and specifications.

PAYMENTS
26. All possible steps should be taken to expedite payments to contractors. In the case of orders placed direct on West Pakistan firms for supply to East Pakistan indentors, payment upto 97. 5% should be made on the basis of shipping documents (which inter-alia will include inspection note and insurance policy) as is being done in the case of

shipments from abroad and the balance on, the production of certificates and receipts. In the case of 90% as at present against Inspection Certificate and proof of despatch and balance 5% on production of receipt certificate. Every effort should be made to ensure expeditious return of receipt. certificates by the consignees. On this point a vigorous propaganda drive is called for in order to bring home to all indentors and consignees the great importance of sending consignees receipt under registered cover acknowledgement due, to the Audit officer as quickly as possible, and not later than a week of the receipt of stores. This should be done through circulars and personal semiofficial letters from senior Officers of the D. G. I. P. &S., to Controlling Officers of the consignees and through personal conferences and discussions. A Special Officer may also be deputed to visit the consignees who are habitual offenders in this regard. Controlling Officers of the consignees should also be asked to rake disciplinary action against such consignees who do not forward consignee's receipts. As a last resort and in case the consignee fails to return the receipt certificate within a period of two months, he should be given 15 days notice under registered cover (A. D. ) and if he fails to respond within that period, Audit Officer should be requested to authorise full payment without waiting for the receipt certificate any further and report the case to the Account Officer of the consignee. A report should also be made to the Ministry of Industries for them to take up the matter with the Provincial Government or Department concerned at the highest level. 27. Steps should also be taken to cut down delay in opening Letters of Credit. Once proposal to open a letter of credit has been concurred in by the Ministry of Finance, the A. O., I. S. &F. should be requested by the Purchase Officer concerned to proceed with the opening of Letter of Credit without routing such a request through Finance. The Purchase Officer will, however, certify that the approval of the Ministry of Finance has been obtained. It should also not be necessary, for A. O. I. S. &F. to route his request for opening Letters of Credit through the State Bank. He should be authorised to address the Schedule Bank concerned direct under advice to the State Bank.

FORM NO. D.I.S. 12 GENERAL CONDITIONS OF CONTRACT APPLICABLE TO CONTRACTS OF THE ADMINISTRATIVE DEPARTMENT DIRECTORATE OF INDUSTRIES (SUPPLY WlNG), GOVERNMENT OF SINDH 1. Definitions (i) Contract" means the invitation to tender, the instructions to tenderers, the tender, acceptance of tender, "particulars" hereinafter defined and such general and special conditions as may be added. (ii) Contractor" means the person, firm or company with whom the order for the supply is placed and, unless excluded by the contract, includes, the contractor's successors (approved by the Purchaser), Representatives, heirs, Executor and Administrators. (iii) "Delivery" means delivery by the dates specified in the contract of stores which are found acceptable by the Inspector but does not include the submission of stores which are not of the required standard or which are not delivered by due dates. (iv) "Government" means the Government of Sindh. (v) "Secretary" means the Secretary to Government of Sindh, dealing with the subject of procurement of stores and includes any officer authorised by him to enter into contracts in that behalf. (vi) "Specification" means the drawings, blue prints, sketches illustrations, plans and specifications stipulated in the contract. (vii) "Purchaser" means the purchaser or purchasers named in the invitation to Tender No. DIS-7, his or their successors or assignees. (viii) "Inspector" means any person or persons nominated by or on behalf of the Director of Industries Sindh to inspect the supply of stores or work under the contract or his duly authorised agent. (ix) "Inspection authority" means Director of Industries Sindh or any person

nominated by him to give final decision regarding acceptance or rejection of stores and other inspection matters.
(x) "Material" means anything used in the manufacture of the stores. (xi) "Particulars" mean: (a) Specifications /drawings (b) Sealed pattern denoting a pattern sealed and signed by the Inspector. (c) Certified or sealed sample denoting a Certified copy of the pattern or sample sealed by the purchaser for guidance of the Inspector. (d) Trade pattern denoting a standard of the P. S. I. or other standardizing authority or a general standard of the industry and obtainable in the open market. (e) Proprietory make denoting the product of an individual concern and, (f) Any other details governing the construction, manufacture and/or supply as existing for the contract. (xii)

"Stores" means such articles specified in the contract as the Contractor agrees to

supply under the contract,

(xiii) "Test means such test or tests as are prescribed by the specification or considered necessary by the Inspector (xiv) "Site" means the place or places named in the tender or such other place or places at which any work has to be carried out as may be approved by the Purchaser, (xv) Words "importing persons" include any company or association or body of individuals whether incorporated or not Words importing singular person" only shall also include the plural and vice vena where the context requires. (xvi) "Writing" includes any manuscript, typewritten or printed statement under or over signature or seal as the case may be. (xvii) "Purchaser" means Administrative Secretary/Director of Industries, Sindh. 2.

Purpose of the Contract and parties to the Contract: (a) (b) The parties to the contract which is for the supply by the Contractor to the Purchaser on terms and conditions set-forth in the contract are the Contractor and the Purchaser named in the Invitation to Tender. Authority of person signing documents: A person signing the Tender Form or any document forming part of the contract on behalf of another shall be deemed to warrant that he has authority to bind such-other and if, on enquiry, it appears that the person so signing had no authority to do so, the Purchaser may without prejudice to other civil and criminal remedies, cancel the contract and hold the signatory liable for all costs and damages. Notices on behalf, of Purchaser: Notices on behalf of Purchaser in connection with the contract may be given by a Purchase Officer of Administrative Department /the Supply Wing of the Directorate of Industries dealing with the contract. Contracts with rates subject to confirmation: When the price quoted in the contracts as being subject to confirmation by the makers, the Contractor should before effecting delivery, obtain the required confirmation and communicate the same to the Purchase for his acceptance. If supplies are made before such confirmation and acceptance, except with the express consent of the Purchaser, the Contractor shall be paid at the price mentioned in the contract.

(c)

(d)

3.

Responsibility for executing Contract:(a) General: The contractor is to be entirely responsible or the execution of the contract in all respect in accordance with the terms and conditions as specified in the contract, notwithstanding any approval which the Inspector may have given in respect of the stores materials or other parts of- the work or of workmanship involved in the contract or of test carried out either by the Contract or by the Inspector. (b) Subletting of Contract: The Contractor shall in no circumstances sublet, transfer or assign the contract or any part thereof. In the event of the Contractor contravening this condition the purchaser shall be entitled to place, the contract elsewhere on the Contractor's account and at his risk and the Contractor shall be liable for any loss or damage which the Purchaser may sustain in consequence, or arising out of such replacing of the contract. (c) Assistant to Contractor: The Contractor shall not except to the extent specifically agreed to by the Purchaser in the contract, be entitled to assistance cither in the procurement of raw materials required for the fulfillment of the contract or in the securing of the transport facilities. Any assurance or assistance given or attempted to be given to the Contractor in regard to these and not covered by the terms of the contract (shall not be construed as a representation that the purchaser is willing to waive his right under this or any other Condition of Contract. Provided, however, that in the event of such assistance resulting in the Contractor obtaining materials at costs lower than their market prices or in a reduction of his costs, the Purchaser shall be entitled to a reduction in the prices of the finished articles. Use of raw materials secured with Government Assistance:(a) Where any raw materials for the execution of the contract arc procured with the assistance of Government either by issue from Government stocks or purchase under arrangements made or permit (s) or license (s)) issued by the Government the Contractor shall hold the said materials as trustee for Government and use such materials economically and solely for the purpose of the contract against which they are issued or obtained and not dispose them of without the permission of the Government and return if required by the Purchaser. all surplus or unserviceable materials that may be left with him after the. completion of the contract or at its termination for any reason whatsoever, in his being paid such price as the Purchaser may fix with due regard to the condition of material. The freight charges for the return of the materials according to the directions of the Purchaser shall be borne by the Contractor, in the event of the contract being cancelled for any default on his part. (b) In the event of a breach of the aforesaid conditions, the Contractor shall in addition to throwing himself open to any action for contravention of the terms of the license (s) or he permit (s) and/or for criminal breach of trust be liable to account to Government for all moneys, advantages or profits resulting or which in the usual course would have resulted to him by reason of such breach. Quotation of Rates by Contractors: The prices quoted by the Contractor shall not, in any case exceed the controlled price, if any, fixed by the Government of the reasonable price which it is permissible for him to charge a private purchaser for the same class and description of goods under the provisions of any existing law. If the price quoted exceeds the controlled price or

4.

5.

the price permissible under any existing law, the Contractor shall specifically mention this fact in his Tender along with reasons for quoting such higher price. The Purchaser at his discretion shall, in such cases, exercise the right of revising the price at any stage so as to conform with the controlled price or the price permissible under any existing Law. This discretion shall be exercised without prejudice to any other action that may be taken against the Contractor. 6. Security Deposit: (a) Security Deposit will be obtained from Registered and Unregistered firms in the form of Call Deposit/Pay-order in favour of the Administrative Secretary/the Director of Industries (Supply) Wing) Government of Sindh at the following rates: (i) Registered Firm's: 2. 5% of the value of contact. (ii) Unregistered Firms: 12. 5% of the amount of contract irrespective of value. (iii) State Regulated Units: Not exempted. The same rates as in (i) and (ii) above, shall apply. (iv) Firms offering Proprietary Stores: Not exempted. The same rates as in (i) and (ii) above shall apply. In case of un-satisfactory performance of any registered firm the limit of 2. 5% Security Deposit can be raised upto 10% by Administrative Secretary. The Security Deposit can be furnished in the shape of Hank Guarantee also. However, Call deposit/Pay order furnished as Earnest Money can be transferred and converted into Bank Guarantee for the purpose of Security Deposit after the placement of contract. Security Deposit will be obtained before the placement of Contract. (b) If the Contractor is called upon by the Purchaser to deposit security and the Contractor fails to provide the security within the specified period, such failure shall constitute a breach of the contract and the Purchaser shall be entitled to make other arrangements at the risk and expense to the Contractor. No claim shall lie against the Purchaser in respect of interest on Security Deposit or depreciation or failure of Bank in case acceptance of Bank Receipts. On, due completion of the contract, the Purchaser shall return the Security Deposit to the Contractor on presentation of a No Demand Certificate issued by the consignee and counter-signed by the Purchaser and the Contractor shall return in good condition any specifications or any other property belonging to the Purchaser which have been issued to the Contractor for the execution of the contract.

(c) (d)

7.

Specification etc. (i) Generally the stores shall be of the best quality and workmanship and comply with terms and conditions of the contract to the satisfaction of the Inspector. (ii) In particular and without prejudice to the foregoing conditions and in addition thereto when tenders are called for in accordance with Particulars, the Contractor's tender to supply in accordance with such Particulars, shall be deemed to an admission on his part that he has fully acquainted himself with the details thereof and no claim on his part which may arise on account of non-examination or insufficient examination of the "Particulars" shall in any circumstances be entertained. (iii) The Contractor shall supply the stores in accordance with the Particulars unless any deviation is authorised as an exceptional case and expressly specified in the contract. (iv) If a specification and/or drawing exists, then the sealed pattern or certified sample thereof shall govern supply only to the extent of workmanship and finish. If neither a specification nor a drawing exists then the scaled pattern or certified sample thereof will govern supply in all respects. (v) When neither specification, drawing nor pattern is available to govern supply, the supply must be of quality material, pattern and workmanship which the purchaser has agreed, shall be acceptable and the Contractor has undertaken to supply, and when under these circumstances a Contractor's sample has been approved by the Inspector, the stores supplied must be equal in all respects to such sample. (vi) If any dimensions figured upon a drawing differ from those obtained by scaling the drawing, the Inspector and the office issuing the Contract. The Inspector's decision in matter shall be final. Samples(i) Free: Samples submitted shall be supplied without charge and freight paid and without an obligation on the purchaser as regards safe custody. Expensive samples of stores submitted to the Purchaser return of which is desired by the Contractor, will, if found acceptable and retained by the Purchaser shall be paid for. (ii) Marking: All samples submitted must be clearly labeled with the contractor's name and address and contract number. (iii) Not to govern standard. If the Contractor submits a sample with his tender the same shall not govern the standard of supply except when it has been specifically stated in the Contract that it is accepted instead of any sealed pattern. (iv) Deliveries: (a) The Contractor shall submit sample of stores he proposes to submit for inspection for the first consignment for test before proceeding with bulk manufacture or delivery. Normally not less than one percent of the

8.

quantity to be supplied shall be sent. (b)

Small sample deliveries, if specially so marked and submitted to the Inspector in separate parcels shall be inspected and the result of the inspection shall be notified immediately to the Contractor.

(c) If a sealed, pattern exists to govern supply, the sealed pattern or certified sample thereof may be examined before sending samples for approval of at any time during execution of the contract. (v) Loan of sample: Should certified samples be lent to a Contractor, they skill have a label attached for noting down any discrepancy known to the Inspector. Should the Contractor find any discrepancy between the certified sample and particulars of schedule to tender, he shall refer the matter to the Inspector endorsing a copy of the letter to the office issuing the Contract. The Inspector shall decide the course which is to be followed. (vi) Label: The label must on no account be detached from a certified sample. Should it, however, become detached, the certified sample should be returned at once to the Inspector for attaching a fresh label. 9.

Return of Particulars: The Contractor is responsible for the return in a perfect order of all specifications, drawings or certified samples with the labels intact unless specifically informed by the purchaser that their return is not required and in the event of failure so to return the specifications, patterns, drawings and certified samples or if the certified samples are not returned in perfectly good order, the Contractor shall be held liable forthwith to pay to the Purchaser as liquidated damages either (at the option of the Purchaser) the sum of Rupees twenty or three times the value of the same as declared by the office issuing the Contract and the Contractor will have no claim to the certified samples for which the charge is made.

10. Risk of loss or damage to Purchaser's properly: (a) The Contractor guarantees the due return of all Purchaser's property including particulars issued to him and will be responsible for the full value thereof to be assessed by the `Purchaser` for all loss thereof or damage caused while in the possession or control of the Contractor, his servants, workmen or agents. (b) In case in which the Purchaser's property is insured against fire by the Contractor at the request of the Purchaser, such insurance shall be deemed to be effected by way of additional precaution with the object of minimizing the loss to the Contractor, but without prejudice to the liability of the Contractor under clause 10(a) above. 11. Packing:(i) Responsibility for proper packing: The Contractor shall be held responsible for the stores being sufficiently and properly packed for transport by air, rail road and sea so as to ensure their being free from loss or injury on arrival at their destination. The packing of the stores shall be done by and at the expense of the Contractor. (ii) Packing materials free supply: All packing cases, containers packing and other similar materials shall be supplied free by the contractor and the same shall not be returned unless otherwise stated in the schedule thereto. (iii) Marking of packages: Each bale or package delivered under the contract shall be marked by and at the expense of the Contractor and in particular must be distinctly marked (all previous irrelevant markings being carefully obliterated) with the description and quantity of contents, with the consignee's name and address, with gross weight, with the name of the Contractor and with a distinctive number or mark which is also to be shown for the purpose of identification, on the Contractor's packing account. If the stores are not packed and marked in accordance with the instructions or in cases, where the packing materials are delivered separately and they are not in accordance with those instructions or are not marked according to them, consignments are liable to be rejected by the Inspector. whose decision as to the sufficiency or otherwise of compliance with the instructions shall be final, Repacking, if any. required by the Inspector before onward despatch shrill, if not carried out by the Contractor within a reasonable time of demand therefore, be carried out at the cost of the Contractor under instructions from the Purchaser. (iv) Packing note quoting the Contract and /or Supply or Repeat Order number and date and showing its contents in detail. 12. Charges for work necessary for completion of contract: The Contractor shall pay all charges for handling, stamping printing marking, drawing, templates models and guages for protecting and preserving patent rights and for all such measures as the Inspector may deem necessary for the proper completion of the contract though special provision therefore may not be made in the particulars. 14. Delivery:(i) Time for and date of delivery to be the essence of the Contract. The time and the date of delivery of the stores stipulated in the contract shall be deemed to be the essence of the contract and delivery must be completed no longer than the dates specified therein. The delivery dates shall be counted from the date of receipt of the contract or supply order by the contractor together with all necessary particulars to enable the work to be put in hand. The Contractor shall afford all reasonable facilities to the officer appointed by the Purchaser in this behalf including free and full access to his work and all records having a bearing on the progress of the deliveries

against the contract. (ii)

Notice by Contractor: Notice in writing shall be sent by the Contractor to the Inspector when the stores to be supplied are ready for submission for inspection and test. The Purchaser is responsible for immediately notifying the Contractor if submission is to be retailed or held in abeyance.

(iii) Failure and Termination. Should the Contractor fail to deliver the stores or any consignment thereof within the period prescribed for such delivery, the Purchaser shall be entitled at his option: (a) to recover from the Contractor as agreed liquidated damages and not by way of penalty, a sum of 2 percent of the price of any stores which the Contractor has failed to deliver as aforesaid for each month or part of a month during which the delivery of such stores may be in arrears, or (b) to purchase elsewhere, without notice to the Contractor on the account and at the risk of the Contractor, the stores not delivered or others of a similar description (where others exactly complying with the particulars are not, in the opinion of the Purchaser, which shall be final, readily procurable) without canceling the contract in respect of consignments not yet due for delivery, or (c) to cancel the contract with imposition of any one or more of the following penalties depending on the specific circumstances of an individual case of default: (i) Forfeiture of Secretary Deposit /Earnest Money. (ii) (iii)

Debarring firm from future tendering for a specified period,

Black listing.

Note: (1) In the event of action being taken under (b) or (c) above the Contractor shall be liable to pay for any loss which the Purchaser may sustain on that account but the Contractor shall not be entitled to any gain on repurchases made against default. (2) In the event of the termination/cancellation of the contract for any reason whatsoever or on complete performance thereof, the Purchaser may at his option (without prejudice to any rights which may be available to the Purchaser under the existing Laws and Rules framed thereunder by notice in writing to the Contractor) require the Contractor to deliver and the Contractor shall thereupon immediately deliver to the Purchaser all or any part of the materials so required (fabricated or otherwise) in his possession or control, got or ordered by him whether in the normal course of business or under special terms arranged through the intervention of the Purchaser or on his behalf for the performance of the said contract or any part thereof and there-upon, the following provisions shall have effect:The Contractor shall, subject to any recoveries that the Purchaser may be entitled to be paid the cost price of the materials so delivered and not rejected as hereinafter pro- vided plus a reasonable charge for handling. (b) In cast at any time after the issue of said notice, the Purchaser shall be of opinion that the materials are damaged or unsuitable for the Purchaser's requirements, the Purchaser may reject and return such materials. (c) In respect of materials supplied through the intervention of the Purchaser or on his behalf and not taken over by the Purchaser, at the request of the Contractor or with his con- sent, the Contractor shall settle all claims of the supplier including any claims to any extra charge (if the original stipulated terms had been confessional) and keep the Purchaser indemnified against the same. (d) In respect of finished articles rejected as not being upto specification or the standard of the accepted or sealed sample, the Purchaser shall have the first option to take over the articles on payment to the Contractor, of the cost of raw materials actually expended in the production, thereof together with reasonable fabrication charges and the Purchaser's decision on both shall be final and binding on the parties. (iv) Extension of delivery date. (a) If the contract dates may not be adhered to, an application with full justification shall be sent by the Contractor not later than 15 days in advance of the expiry of the delivery date specified in the contract to the office issuing the Acceptance of Tender and a copy endorsed to the Inspector specified in the schedule Should, however, deliveries be made after the expiry of the contract delivery date without prior concurrence of the Purchaser and accepted by the Inspector, such deliveries will not deprive the Purchaser of his right to recover liquidated damages under clause 13(iii) above. Deliveries shall not he made after the expiry of contract delivery date without prior concurrence of the purchaser. (b) Without prejudice to the foregoing rights, if such failure to deliver in proper time as aforesaid shall have arisen from any cause which the Purchaser may admit as a reasonable ground for an extension of the time, he may allow such additional time as he considers to be justified by the circumstances of (a)

the case and his decision shall be final in that respect. (v) Place of Delivery. The Contractor shall, as may be required by the Purchaser deliver the stores either free at or F.O.R., F.O.B., F.A.S., C.I.F., and C&F, the place or places detailed in the schedule and not later than on the dates specified in the Contract. (vi) Notification of Despatch. Notification of delivery or despatch in regard to each

and every consignment shall be made to the authorities named in the form prescribed for the purpose, copies of which shall be furnished free of charge by the office issuing the Acceptance of Tender. The Contractor shall further supply to the Consignee a Packing Account quoting the Acceptance of Tender and/or Supply or Repeat Order No. and date of all stores despatched. All packages, containers, bundles and loose materials forming part of each and every consignment shah" be described fully in the packing account and "full details of packages and quantity or materials are to" be given to enable the Consignee to check the stores on arrival at destination. The railway receipt shall be forwarded to the Consignee immediately after despatch of stores otherwise the demurrage charges (if any) paid by the Consignee will be recovered from the Contractor.
14. Freight: -

The stores shall be despatched at public Tariff Rate as specified in the contract. The cases where confessional freight rates are admitted, the Purchaser shall indicate office from whom the authority for confessional rates should be obtained if not enclosed with the contract. In the case of an "F.O.R. Station of Despatch" contract, the stores should be booked at full -wagon rates whenever available and by the most economical route, failure to do which will render the Contractor liable for the whole or part of any avoidable expenditure caused to the Purchaser. Where alterative routes exist, the Purchaser shall, if called upon to do so, indicate the most economical route available or name that authority whose advice in the matter should be taken and acted upon.
15. Inspection and Rejection: (i) Facilities for Test and Examination.- The Contractor shall afford at his own expense the Inspector all reasonable accommodation and facilities for satisfying himself that the stores are being or have been manufactured in accordance with the particulars and for the purpose the Inspector shah have full and free, access at any time during the contract to the Contractor's works and may notwithstanding any contractual terms to the contrary require the Contractor to make arrangements for the stores or any part thereof, anything to be inspected at his premises or at any other place. The Contractor shall pay all costs connected with such tests and provide, without extra charge, all materials, tools, labour and assistance of every kind which the Inspector may consider necessary for any tests and examination other than special or independent test, which he shall require to be made on the Contractor's premises and shall pay all costs attendant thereon, failing these facilities (in regard to which the Inspector will be the sole judge) at his own premises for making the tests, the Contractor shall bear the cost of carrying out such tests else- where. The Contractor shall also provide and deliver free of charge at such place as the Inspector may direct such material as he may require for tests by chemical or other analysis or independent testing machine or means commonly in use according to the nature of the stores. In the event of such tests being unsatisfactory and resulting in or leading to the rejection of the stores concerned, the cost of the test will be borne by the Contractor. Such costs will be assessed at the rates charged by the Laboratory concerned for work done for private firms and individuals (ii) Methods of Test.- The Inspector shall have the right to put all sorts of materials forming part of same or any part thereof to such tests as he may think proper for the purpose of ascertaining whether the same are in accordance with the particulars and to cut-out or off, and lot destroy a portion from each delivery for such purpose without prejudice to this right. (a) Stores expended in test If the test proves satisfactory and the consignment is

accepted, the quantity of stores or material expended in test will be paid for by the Purchaser.
(b) If the stores or material fail in test and the consignment is rejected, the quantity expended in test will be treated as not having been delivered.

(iii) Inspector. Final Authority and to certify performance(a) Inspector shall have power before any stores or parts thereof are submitted for inspection to Certify that they cannot be in accordance with the contract owing to the manufacture not being satisfactory. OR (b) To reject any stores submitted as not being in accordance with the particulars. (iv) Inspection and Rejection.-The Inspector may reject the whole consignment tendered for inspection if, after inspection such portion thereof as he may decide in his discretion, he is satisfied that the consignment is unsatisfactory (v) Rejections. If any stores are rejected as aforesaid then, without prejudice to the foregoing provisions, the Purchaser shall be at liberty to: (a) Allow the Contractor to re-submit stores in replacement of those rejected within a time specified by the Purchaser the Contractor bearing the cost of freight on such replacement without being entitled to any extra, payment, or (b) Buy the quantity of the stores rejected or others of a similar nature elsewhere at the risk and cost of the Contractor without effecting the Contractor's liability as regards supply of any further consignment due under the contract, or (c) Terminate the contract and recover from the Contractor the loss the Purchaser

thereby incurs. In case of contract entered into on F.O.R. Station of despatch basis, the Contractor shall, if stores arc rejected at destination, be liable to pay the freight at Public Tariff rates to the Purchaser even if the Purchaser had actually paid freight at confessional rates.
(vi) (d) The decision of the Inspection Authority as regards rejections as aforesaid shall be final and binding on the parties. The Contractor shall not be entitled to any gain on repurchase. Marking of Rejections.- If considered desirable by the Inspector, rejected stores will be marked with a small rejection mark, so that these may be easily identified if re-submitted arid the Contractor shall not be entitled to claim anything on that account. Notification of Result of Inspection.- Unless otherwise provided in the specification or schedule, the examination of the stores will be made as soon as practicable after receipt and the result of examination will be notified to the Contractor. Removed of Rejections.- Any stores submitted for inspection and rejected by the Inspector must be removed by the Contractor within fourteen days from the date of receipt of intimation of rejection, provided that in the case of dangerous, infected or perishable stores the Inspector (whose decision shall be final) shall notify the Contractor to remove such stores within 48 hours of receipt of intimation of rejection and it shall be the duty of the Contractor to remove them accordingly. Such rejected stores shall lie at the Contractor's risk from the time of such rejection and if not removed within the aforementioned time, the Purchaser shall have the right either or return the rejected stores/carriage forward at the contractor's risk by such mode of transport as the Purchaser may select or to dispose of or segregate such stores as he thinks fit at the Contractor's risk and on his account and to retain such portion of the proceeds as may be necessary to cover any loss or expenses incurred by or on behalf of the Purchaser in connection with, the said sale. Freight to destination on stores rejected after examination at destination shall be recoverable from he Contractor at the Public Tariff rates. Inspection Certificate or Receipt Vouchers.- On completion of the inspection, the Contractor will be furnished by the Inspector with necessary copies of Inspection certificates or receipt vouchers duly completed to be attached to the Contractor's bill in support therefore. .

(vii)

(viii)

(ix)

16. Recovery of sums due:Whenever under this contract any sum of money is recoverable from and payable by the Contractor, the Purchaser shall be entitled to recover such sum by appropriating, in part or whole, the Security deposited by the Contractor, if a Security is taken against the contract and to sell Any Government Promissory Notes, etc., forming the whole or part of such security. In the event of the security being insufficient or if no security has been taken from the Contractor, then the balance or the total sum recoverable, as the case may be, shall be deducted from any sum then due or which at any time thereafter may become due to the Contractor under this or any other contract with the Purchaser or Government or any other person or persons contracting through the Purchaser Should this sum be not sufficient to cover the full amount recoverable, the Contractor shall pay to the Purchaser on demand the remaining balance due. 17.

System of payment: (i) Unless, otherwise agreed between the parties, payment for the delivery of the stores shall be made on submission of bill in the prescribed form in accordance with the instructions given in the contract by crossed cheque on a Government Treasury in Pakistan or on a "branch/of the State Bank of Pakistan or on the branch of any other Bank transacting Government business. Payment for the stores or for each delivery shall be made to the Contractor on submission of bills in accordance with the procedure laid down below: (a) 95 per cent of the price of each consignment shall be paid on proof of despatch of stores to the consignee

(ii)

from a Railway Station or a port "in Pakistan after inspection. A copy of the Railway Receipt or Bill of Lading, under which the goods charged for in the bill are despatched should be sent along with the bill. If a a copy cannot be sent, the number and date of the Railway Receipt or Bill of Lading should be quoted on the bill and a certificate that the Receipt or Bill of Lading has been sent to the consignee should be furnished. The balance of 5 per cent will be paid on receipt of the consignment in good condition by the consignee in which case the consignee's receipt should be submitted with the Contractor's bill provided that the Purchaser may permit increase in the percentage mentioned in this clause in any case, if the interest of the public service so required. (b) In the case of C&F/C.I.F. contracts, payment will be made to the foreign suppliers (Beneficiaries) against confirmed irrevocable Letter of Credit in-accordance with the terms thereof and commission, if any, will be paid by the A.G. Sindh to the local agent in nonconvertible Pak-currency after satisfactory receipt of the consignment by the consignee against his receipted Inspection Note. (c) Alternatively, at the Contractor's option, the full value of the stores shall be paid after inspection on receipt of the consignment in good condition by the consignee. The System of 95% and 5% payments is not applicable to claims amounting to Rs. 200 or below nor to bills for stores delivered locally irrespective of the amount. In such cases only a single bill for the full value should be submitted. (iii)

Where the Inspector is also the consignee or where delivery of the stores contracted for is made at the Contractor's place of manufacture of business or where inspection is carried out by consignee at destination, full payment shall be made on submission of "Final 100% bill" supported by the Inspection Certificate and Consignee's receipt to the Accounts Officer concerned. Provided always that the payment of the full price on proof of despatch shall not absolve the Contractor of his responsibility under the contract to supply goods of the description and the quantity required and the Contractor shall promptly settle any claim by the Purchaser.

(iv) L.D. @ 2% per month or part of a month for late supplies will be calculated on the amount of firm's commission subject to the maximum value thereof under a single contract. (v) In respect of all C&F contracts placed by the Government of Sindh, the amount of commission to be paid will be determined on the Foreign Exchange conversion rate prevailing on the date of payment. 18. Laws Governing the Contract : (i) The contract shall be governed by the Laws of Pakistan for the time being in force. (ii) The marking of all stores supplied must comply with the requirements

of the Central Acts relating to Merchandise Marks and of the rules made under such Acts.

19.

Indemnity : The Contractor shall at all times indemnify the Purchaser against all claims which may be made in respect of the stores for infringement of any right protected by Patent Registration of Design or Trade Mark and shall take all risk of accidents or damage which may cause a failure of the supply from whatever cause arising and the entire responsibility for the sufficiency of all the means used by him for the fulfillment of the Contract. PROVIDED ALWAYS that in the event of any claim in respect of alleged breach of Letter Patent, Registered Design or Trade Mark being made against the Purchaser, the Purchaser shall notify the Contractor of same and the Contractor shall be at liberty at his own expense to settle any dispute or to conduct any litigation that may arise there from.

20. Bribe, Commission, Corrupt, Gift etc.Any bribe, commission, gift or advantage given, promised or offered by or on behalf of the Contractor or his partner, Agent or servant or any one of his or their behalf to any officer, servant, representative or agent of the Purchaser or Government or any person on his or their behalf in relation to the obtaining or to the execution of this or. any other contract with the Purchaser or Government or placed through Government agency, for showing favour or disfavour to any person in relation to this or any other contract as aforesaid shall subject the contract to the cancellation of this and all or any other contracts as aforesaid and also to payment or any loss or damage resulting from such cancellation to the like extent as is provided in case of cancellation under clauses 13 and 16 thereof. Any dispute or difference of opinion arising in respect of either the interpretation, effect or application of this condition or the amount recoverable here under from the contractor shall be decided by the Purchaser and his decision shall be final and binding on he parties. 21. INSOLVENCY and Breach of contract.Should the Contractor be adjudged insolvent, or have a receiving order made against him, or make or enter into any arrangement or composition with creditors, or suspend payment (or being a company be wound up, either

compulsorily or voluntarily or commit any breach of this contract not herein specially provided for) the Purchaser shall have power to declare the contract at an end in which case, the Contractor shall be liable to pay the Purchaser for any extra expense he is thereby put to but shall not be entitled to any gain on repurchase. 22. Prior notice for Arbitration:If the Contractor intends to go for arbitration, he shall have to give 30 days notice in writing informing the Purchaser of his intention to refer to the points of difference and/or dispute for arbitration under clause 23 of these conditions of contract. He shall have to define clearly the points of difference and/or dispute in this notice. 23. Arbitration.Except as otherwise expressly provided herein, all matters or, dispute or difference between the parties arising-Under this agreement shall be referred to the decision of the sole arbitrator to be nominated by the Administrative Secretary, Government of Sindh. The decision of the arbitrator so nominated shall be final and binding on the parties Reference to arbitration shall be a condition precedent to any proceedings in Court regarding the matters in disputes. Work under the contract shall, if. reasonably possible, continue during arbitration proceedings and no payment due or payable under the agreement shall be with-held unless it is a matter in dispute under arbitration. Unless otherwise directed by the Secretary, the arbitration proceedings shall be held at the place of acceptance of tender. 24. Force Majeure.Force Majeure shall mean any event, act or other circumstances not being an event, act or circumstance under the control of the Purchaser or of the Contractor Non-availability of materials or of import license or of export permit shall not constitute Force Majeure. If by reasons of Force Majeure stores cannot be delivered by the due delivery date, then the delivery date may be extended appropriately by the Purchaser keeping in view all the circumstances and requirements of the stores. 25. Heading of clause.The headings of clauses hereto shall not affect the construction thereof. INSURANCE: (a) Comprehensive

insurance of the contracted stores will be arranged by the contracting firm, through National Insurance Corporation Karachi from the supplier's ware-house to the ware-house of the ultimate consignee/consignees which shall remain valid upto eight weeks after receipt of stores by the consignee/consignees. The supplier shall intimate the name of vessel, date of shipment and all other important particulars of the consignment to NIC Karachi immediately after shipment of stores from abroad arid not later than eight days before the arrival of ship/consignment. If they fail to do so and if any loss to the consignee occurs in the absence of insurance of the consignment, it will be their responsibility to make good the loss. Insurance should cover all risks except war risk and should cover the FOB Value of the contract.

(b) Payment of advance premium towards insurance of the contracted stores on the basis of the prevailing rate (Less 15% Government discount) as revised from time to time by the National Insurance Corporation, Karachi will be made by the Contracting firm directly to the NIC Karachi in non-convertible Pak-currency on the strength of Debit Bill preferred by the later. Subsequently the contractor will claim Insurance charges at actual in nonconvertible Pak-currency from A.G. Sindh, Karachi on production of copies of non-negotiable shipping documents on the bill Form No. DIS-33. However, the insurance charges paid in advance by the contracting firm to M/s. National Insurance Corporation shall be refundable in case the contract or L/C is cancelled with-drawn/amended.

FORM NO. D.I.S. 13 CONDITIONS OF CONTRACT GOVERNING RATE CONTRACTS

Conditions of Contract In addition to the General Conditions of Contract in Form No. DIS-12, the following Special Conditions shall govern the contract which is a "Rate Contract". Special Conditions where they differ from the General Conditions, over-ride the latter. SPECIAL CONDITIONS. 1. Purpose of contract and parties to the contract:The parties to the Contract, which shall be deemed to be a Rate Contract and which is intended for the supply of stores of the description set forth in the Contract schedule hereto annexed during the period therein specified, shall be the Contractor of the one part and the Purchaser named in the Invitation to Tender on the other part. Number or quantity contracted for:Subject as hereinafter mentioned, no guarantee can be given as to the number or quantity of the" stores which will be ordered during the period of the contract and any quantity mentioned in the contract is merely an indication only but the Purchaser undertakes to order from the Contractor all the stores as detailed in the Rate Contract which he requires to purchase except that he reserves the right (i) of submitting to competition any supply of the stores included in the Rate Contract the total value of which is estimated to exceed Rs. 50,000 or as specified in the Rate Contract, (ii) of placing this contract with one or more contractors as he may think fit and (iii) of obtaining from any source, stores referred to in the Rate Contract to meet an emergency if the Purchaser (whose decision shall be final) is satisfied that the Contractor is not in a position to supply specified quantities within the period in which supplies are required. Increase or decrease of quantities.The Purchaser shall be entitled at any time to Increase or decrease the approximate total quantity of the stores as specified in the Rate Contract by not more than 25 per cent and will give reasonable notice in writing of any such increase or decrease to the contractor DeliveriesThe Contractor as may be required, will either deliver free at or despatch "F.O.R." from the place or places as specified in the Rate Contract such quantities of stores as may be ordered direct from the Contractor from time to time by the Purchaser or by any Officer who may at any time during the period of the contract be authorised by the Purchaser to place such orders. Monetary limit for Indents.The Contractor shall not. except with the prior approval of the Purchasing Officer comply with the supply orders of the value of over Rs. 10,000 or as specified in the Rate Contract received from the officers authorised by the Purchasing Officer to place orders against Rate Contract.

2.

3.

4.

5.

FORM NO. D.I.S. 14

CONDITIONS OF CONTRACT GOVERNING SUPPLIES OF PLANT AND MACHINERY.

Conditions of Contract

In addition to the General Conditions of Contract in Form No. DIS-12, the following special conditions shall apply to this contract for the supply of plant and machinery and manufactured equipment. Special conditions where they differ from the General Conditions, shall over-ride the latter. SPECIAL CONDITIONS. 1. Definitions.(b) "Work"

means all the works specified or set forth and required in and. by the said specifications, drawings and schedule hereto annexed or to be implied there from or incidental thereto, or to be hereafter SPECIFIED OR REQUIRED IN SUCH EXPLANATORY instructions and drawing (being in conformity with the said

original specification, drawing and schedule) and also in such additional instructions and drawing not being in conformity as aforesaid as such from time to time during the progress of the work hereby contracted for, be supplied by the Purchaser.
(b) "Test" means such lest or tests as are prescribed by the, specification to be made by the Purchaser, or his nominee, after erection at site before; the plant is taken over by the Purchaser. 2. Performance of work.The work shall be performed at the place or places named in the tender or at such other place or places as may be approved by the Purchaser.

3.

Specification.If the Contractor shall have any doubt as to the meaning of any portion of the conditions or of the specifications, drawings or plans he shall before submitting the tender, set forth the particulars thereof and submit them to the Purchaser in writing in order that any such doubt may be removed.

4.

Mistakes in drawing.The Contractor shall be responsible for and shall pay for any alteration of the works due t6 any discrepancies, errors or omissions in the drawings or other particulars supplied by him whether such drawings, or particulars have been approved by the Purchaser or not, provided that such discrepancies, errors or omissions be not due to inaccurate information or particulars furnished to the Contractor on behalf of the Purchaser. If,any dimensions figured upon a drawing or plan differ from those obtained by scaling the drawing or plan the dimensions as figured upon the drawing or plan shall be taken as correct.

5.

Variations.No alterations, amendments, omissions, additions, suspensions, or variations of the work there in after referred to as ``Variations``) under the contract as shown by the Contract Drawings or the specification shall be made by the Contractor except as directed in writing by the inspector; but the Inspector shall have full power subject to the proviso hereinafter contained, from time to time, during the execution of the contract, by notice in writing to instruct the Contractor to make such variation without prejudice to the contract and the Contractor shall carry out such variations and be bound by the same conditions, so far as applicable, as though the said variation occurred in the specification. If any suggested variation would, in the opinion of the Contractor, if carried out, prevent him from fulfilling any of his obligations or guarantees under the contract he shall notify the Inspector thereof in writing and the Inspector shall, decide forthwith whether or not the same shall be carried out and if the Inspector confirms his instructions, the Contractor's obligations and guarantee shall be modified to such an extent as may in the opinion of the

Inspector be justified. The differences of cost if any, occasioned by any such variations, shall be added to or deducted from the contract price as the case may require. The amount of such differences if any. shall be ascertained and determined in accordance with the rates specified in the Schedules of prices so far as the same may be applicable, and where the rates are not contained in the said Schedules, or not applicable, they shall be settled by me Purchaser and Contractor jointly. But the Purchaser shall not become liable for the payment of any charge in respect of any such variations unless the instructions for the performance of the same shall have been given in writing by the Inspector. In the event of the Inspector requiring any variations, such reasonable and proper notice shall be given to the Contractor as will enable him to make his arrangements accordingly and in cases where goods or materials are already prepared, or any design, drawing or patterns made or work done require to be altered, a reasonable sum in respect thereof shall be allowed by the Purchaser, Provided that no such variations shall, except with the consent in writing of the Contractor, be such as will involve an increase or decrease of the total price payable under the contract by more than 10 percent therof. In any case in which the Contractor has received instructions from the Inspector as to carrying out the work which either then or later, will, in the opinion of the Contractor, involve a claim for additional payment the Contractor shall as soon as reasonably possible after receipt of the instructions aforesaid, advise the Inspector to that effect.
6.

Obligation to carry out Inspector's instructions. The Contractor shall also satisfy the Inspector that adequate provision has been made (i) to carry out his instructions fully and with promptitude, (ii) to ensure that parts required to be inspected before use are not used before inspection, and (iii) to prevent rejected parts being used in error. Where parts rejected by the Inspector have been rectified or altered, such parts shall be segregated for separate ins- pection and approved before being used in the work.

7.

Responsibility for completeness. Any fittings or accessories which may not be specifically mentioned in the specification, but which are usual or necessary, arc to be provided by the Contractor without extra charge and the plant must be complete in all details. In all cases where the contract provides for tests on site, the Purchaser, except where otherwise specified, shall provide free of charge such labour, materials, fuels, stores, apparatus and instruments as may be required from time to time and as may reasonably be demanded, efficiently to carry out such tests of the plant, material Or

workmanship in accordance with the contract. In the case contract requiring electricity for the completion of the works and for tests on site, such electricity, when available, shall be supplied free to the Contractor at the pressure of ordinary supply. Unless otherwise specified, the Purchaser will supply free of charge to the Contractor (i) Un-skilled Labour (ii) timber stores and lifting tackle necessary for the erection of the plant and all consumable stores including fuel and lubricating oils required during erection, setting to work and testing the plant, "The Contractor shall provide (i) Skilled Labour and (ii) tools and any other equipment which may be necessary.
8.

Supervision. The Contractor shall provide adequate supervision at all stages of he work and examine all parts for accuracy before erection is commenced. He shall also provide facilities and space satisfactory to the Inspector for laying out for his inspection any parts to be used in the work at such stages of manufacture as he may direct.

9.

Inspection.The Contractor shall inform the Inspector in writing when any portion of the work is ready for inspection, giving him sufficient notice to enable him to inspect the same without retarding the further progress of the work. No portion of the work shall be considered completed in accordance with the terms of the annexed tender until the Inspector shall have certified in writing that it has been inspected and approved by him. The expense incurred in sending the Inspector to carry out inspection and/or tests at the place agreed upon in the contract will be defrayed by the Purchaser, provided that the results are satisfactory and in accordance with the terms of the contract. In the event of the inspection and/or tests proving unsatisfactory and resulting in the non-acceptance of the plant/structure or any portion thereof, the cost of such inspection and/or tests (including the travelling and halting expenses incurred, if any) or such portion thereof as may be determined by that officer, shall be borne by the Contractor.

10.

Inspection in the country of supply.In the case of materials or parts intended to be imported from outside Pakistan and requiring inspection in the country of supply, the c|emand for inspection shall be submitted by the Contractor to the Inspector in the form prescribed by the Inspector who will counter sign and forward it to the Inspector duly appointed by he Purchaser in the country of supply. The demand for inspection shall be in respect of materials or parts intended for use in execution of work specifically included in the contract, and shall give particulars of the materials or parts to be inspected,

11.

Final Tests.

12.

If required by the Purchaser, all tests necessary to ensure that the plant machinery or equipment complies with the particulars and guarantees shall be carried out at the Contractor`s premises. Should, however, it be necessary for the final tests as to performance and guarantees to be held over until the plant is erected at site, they shall be carried out within one month of the completion of erection. Should the result of these tests not come within the margin specified, the tests shall, if required, be repeated within one month from the date of plant is ready for tests and contractor shall pay to the Purchaser all reasonable expenses to which he may be put by such tests. Rejection of defective plant.If the completed plant, or any portion thereof, before it is taken over under Clause 17 be defective, or fail to fulfil the requirements of the contract, the Inspector shall give the Contactor notice setting forth details of such defects or failure and. the Contractor shall forthwith make the defective plant good, or alter the same to make it comply with the requirements of the contract. Should he fail to do so within a reasonable time, the Purchaser may, reject and replace at the cost of the Contractor the whole or any portion of the plant, as the case may be, which is defective or fails to fulfil the requirement of the contract. Such replacement shall be carried out by the Purchaser within a reasonable time and at a reasonable price and where reasonably possible to the same particulars and under competitive conditions. The Contractor`s full and extreme liability under this clause shall be satisfied by the payment to the Purchaser of the extra cost, if any of such replacement, delivered and or erected as provided for in the original contract, such extra cost being the ascertained difference between the price paid by the Purchaser under the provisions above mentioned, for such replacement and the contract price for the plant so replaced and the repayment of any sum paid by the Purchaser to the Contractor in respect of such defective plant. Should the Purchaser not so replace the rejected plant within a reasonable time, the Contractor`s full and extreme liability under this clause shall be satisfied by the repayment of all moneys paid by the Purchaser to him in respect of such plant. In the event of such rejection, the Purchaser shall be entitled to the use of the plant in a reasonable and proper manner for a time reasonably sufficient to enable him to obtain other replacement plant. During the period the rejected plant is used commercially, the Contractor shall be entitled to a reasonable sum as payment for such use.

13.

Replacement of defective work or material. If during the progress of the work, the Purchaser or his representative shall decide and notify in writing to the Contractor that the Contractor lias executed any unsound or imperfect work, or has supplied any plant or materials inferior in quantity or quality to these specified, the Contractor on receiving details of such defects or deficiency shall, at his own expense within seven days of this receiving the notice, or

otherwise within such time as may be reasonably necessary for making it good, proceed to alter, reconstruct or remove such work or supply fresh materials upto the standard of the particulars and in case the Contractor shall fail to do so, the Purchaser may on giving the Contractor seven days` notice in writing of his intention to do so. proceed to remove the work or materials complained of, and at the cost of the Contractor perform all such work or supply such materials, provided that nothing in this clause shall be deemed to deprive the Purchaser of, or affect any rights under the contract which he may otherwise have in respect of such defect or deficiencies.
14.

Appeals: If the Contractor desires to appeal against the decision of the Inspector against the rejection of any work as not being in accordance with the contract, he shall appeal to the Secretary of the Department within 14 days after the Inspector's decision and if any appeal is so preferred, the decision of the Secretary shall be final and conclusive.

15.

Time and date of completion of the work the essence of contract The time and date stipulated in the tender for the completion of the work shall be deemed to be the essence of the contract. In case of delay, the Contractor shall in addition to other liabilities mentioned in the General Conditions of Contract be liable for all costs of inspection which may be incurred after the date on which the work ought to have been completed and in the event of the Contractor`s failure to complete the work within the period prescribed for such completion, the Purchaser shall be entitled to with hold any payments until the whole of the work has been completed and to recover from the Contractor a sum of 2% of the total contract price of the work for each and every month or part of a month during which the completion of the work may be delayed. But if the delay shall have arisen from any cause such as strikes, lockouts, lire, accident, riot, etc., which the Purchaser may admit as reasonable ground for further time, the Purchaser will allow such additional time as he may consider to have been required, by the circumstances of the case.

16.

Transport and responsibility for breakages en-route. Unless otherwise specified, the consignee will take delivery of the plant from the railway authorities at the railway station named in the Schedule; he will undertake the transportation of the plant from the railway station to the site and he will bear the cost of the handling and transportation necessitated but the Contractor will be responsible for any damage which may be caused to the plant during transit to site and should insure the plant at his own cost up till the time it is taken over as in clause 17.

17.

Taking Over: When ail performance tests called for by the particulars have been successfully

carried out before shipment, the plant shall be accepted and taken over when it has been satisfactorily put into operation on, site, or within one month of its being ready to be put into operation whichever shall be the earlier and the Inspector shall forthwith issue a Taking Over Certificate. In the event of final or any outstanding tests being held over until the plant is erected, such Taking Over Certificate shall be issued subject to the results of such final or outstanding tests which shall be carried out in accordance with Clause II. When the particulars call for tests on site, the plant shall be taken over and the Taking Over Certificate issued immediately such tests have been satisfactorily tarried out. The Inspector shall not delay the issue of any Taking Over Certificate contemplated by this clause on account of minor defects in the plant which do not materially affect the commercial use thereof provided that the Contractor shall undertake to make good the same in due course.
18.

Guarantee against defects: For a period of 12 calender, months after the plant has been taken over under clause 17, the Contractor shall be responsible to the extent in this clause expressed for any defects that may. develop under the conditions provided for by the contract and under proper use, arising from faulty materials, design or workmanship in the plant, or from faulty erection of the plant by the Contrator, but not otherwise and shall remedy such defects at his own cost when called upon to do so by the Purchaser who shall state in writing in what respect the portion is faulty. If it becomes necessary for the Contractor to replace or renew any defective portions of the plant under this clause, the provisions of this clause shall apply to the portion of the plant so replaced or renewed until the expiration of six months from the date of such replacement or renewal or until the end of the above mentioned period of 12 months whichever may be the later. If any defects be not remedied within reasonable time, the Purchaser may proceed to do the work at the Contractor`s risk and expense, but without prejudice to any other rights which the Purchaser may have against the Contractor in respect of such defects. If the replacement or renewals are of such a character as may effect the efficiency of the plant, the Purchaser shall have the right to give to the Contractor within one month from such replacement or renewal, notice in writing that tests on completion will be carried out Should such tests show that the plant sustains the guarantees given in the contract, the cost of the tests shall be borne by the Purchaser Should the guarantees not be sustained, the cost of the tests shall be borne by the Contractor. All inspections, adjustments, replacements or renewals carried out by the Contractor during the maintenance period shall be subject to the same conditions as the contract. Until the final certificate shall have been issued, the Contractor shall have the right of

entry. at his own risk and expense, by himself or his duly authorised representatives, whose names shall have previously been communicated in writing to the Purchaser, at all reasonable working hours upon all necessary parts of the works, for the purpose of inspecting the working and the records of the plant and taking notes there from, and if he desires, at his own risk and expense, making any tests subject to the approval of the Purchaser which shall not be unreasonably with held.
19.

Inability to perform contract: Should the Contractor`s preparation for, the commencement of the work, or any portion of it or his subsequent rate of progress be from any cause whatever, so slow that in the opinion of the Inspector, which shall be conclusive, the Contractor will be unable to complete the work or any portion thereof as agreed upon or should he not have the work ready for delivery in conformity with the contract or should he neglect to comply with any directions given to him by the Inspector or in any respect fail to perform the contract, the Purchaser shall have power to declare the contract at an end, in which case the Contractor shall be liable for any expenses, loss or damage which the Purchaser or Indentor may incur or sustain by reason of, or in connection with the Contractor`s default.

20.

Provision of Fencing, Light, etc, The Contractor shall at all times provide sufficient fencing, notice board, light and watchmen to protect and warn the Public and guard the works and in default thereof the Purchaser may provide such fencing, notice boards, lights and watchmen as he may deem necessary and charge of cost thereof to the Contractor.

21.

Access to site and work on site. Suitable access to and possession of site shall be afforded to, the Contractor by the Purchaser in reasonable time, and the Purchaser shall have all such foundations as are to be provided by him ready when required by the Contractor. Where a crane is available, its safe lifting capacity shall be stated in, the specification and it shall be available for free use of the Contractor until the plant is taken over. The work, so far as it is carried out on the Purchaser's premises shall be carried out at such time as the Purchaser may approve, and so as not to interfere unnecessarily with the conduct of the purchaser's business, but the Purchasers shall give the Contractor all reasonable facilities for carrying out the work. The Contractor shall be responsible for the correctness of the positions, levels and dimensions of the works, according to the drawings, notwithstanding that he may have been assisted by the Purchaser or his representative in setting out the same.

22.

Deferring Shipments.

If the Purchaser shall have notified the Contractor in writing that the former is not ready to take delivery, no plant or materials shall be forwarded until an intimation in writing shall have been given to the Contractor by the Purchaser that he is ready to take delivery.
23.

System of Payment. Unless otherwise agreed between the Purchaser and the Contractor, payment for delivery of stores will be made by the Accountant General Sindh, Karachi as follows by cheque on State Bank of Pakistan, Karachi:
(i) 80 per cent of the contract price of each consignment delivered to the consignee or despatched from a station in Pakistan. The number and date of the Railway Receipt (or bill of lading) under which the stores charged for in the bill are despatched should be quoted on the bill.

(ii)

20 percent of the contract price of the plant plus the cost of erection, if any, on final inspection and test, or alternatively at the Contractor`s option the full 100 percent after erection on final inspection and test. in addition to other remedies, under the law and these conditions, the Purchaser shall have a lien on each consignment in respect of which 80 percent has been paid to secure repayment of this amount and recovery of any sum clue from the Contractor, should the plant not be taken over under clause 17, PROVIDED THAT in cases where a preliminary inspection of the plant has been carried out, if the erection or final inspection and test of the plant at site is delayed for any reasons for which the Purchaser is responsible, 10 PER CENT OF THE CONTRACT PRICE OF THE PLANT SHALL BECOME PAYABLE, AFTER THE EXPIRY OF FOUR MONTHS FROM THE DATE OF ARRIVAL OF THE LAST CONSIGNMENT AT SITE, THE REMAINING 10 PERCENT being payable after erection and test and acceptance of the plant by the Inspector. In respect of non-erection contracts, the system of payment stated in the General Conditions shall apply.

24.

Liability under the workmen's Compensation Act. The contractor shall at all times indemnify the Purchaser against any claims which may be made under the Workmen's Compensation Act, 1923, or any statutory modification thereof or otherwise in respect of any damages or compensation payable in conseque of any accident or injury sustained by any workman or other person whether in the employment of the Contractor or not.

25.

Regulation of. Local Authorities., The Purchaser shall, throughout the continuance of the contract and in respect of all matters arising- in the performance thereof, serve all notices and obtain consents, wayleaves, approvals and permission required in connection with the Regulation and

Bye-laws of the local or other authority which shall be applicable to the works. Any work of an electrical nature to be executed under the contract shall comply with the provisions of the Indian Electricity Act, 1910, as adopted by Government of Pakistan and the rules thereunder for the time being in force.
STANDARD BREAK CLAUSE 1. The Purchaser shall in addition to his power under other clauses to determine this contract have power to terminate his liabilie thereunder at any time by giving) three months (or such shorter preior as may be mutually agreed) notice in writing to the Contractor of the Purchaser's desire to do so and upon the expiration of the notice the contracts shall be determined without prejudice to the right of parties accrued to the date of) determination but subject to the operation of the following provisions of this clause.

2.

In the event of such notice being given, the Purchaser shall be entitled to exercise as soon as may be reasonably practicable within that period, the following powers or any of them: (a) To direct the Contractor to complete in accordance with the contract all or any articles, parts of such articles, or components in course of manufacture at the expiration of the notice and to deliver the same at such rate of delivery as may be mutually agreed on or in default of agreement at the contract rate. AH articles delivered by the Contractor in accordance with such directions and accepted shall be paid for at fair and reasonable price assessed on the basis of the contract price when it exists. (b) To require the Contractor on receipt of the notice of termination (i) immediately to take such steps as will ensure that the production rate of the articles specified in the schedule and parts thereof is reduced as rapidly as possible, (ii) as far as possible consistent with (ii) above to concentrate work on the completion of parts already in a partly manufactured state, (iii) to termination the best possible terms such orders for materials and parts bought out in a partly manufactured or wholly manufactured state as have not been completed, observing in this connection any directions given under paragraphs (a) and (b) (i) and (ii) above, as far as this may be possible.
In the event of such notice, being given provided the Contractor has reasonably performed all the provisions of the contract binding upon him down to the date of the notice: (a) The Purchaser shall take over from the Contractor at a fair and reasonable price

3.

(assessed on the basis of the contract price of the completed articles), all unused and undamaged materials, bought-out components and articles in course of manufacture in the possession of the Contractor at the expiration of the notice and properly provided by or supplied to the Contractor for the performance of this contract except such material boughtout components and articles as the Contractor shall, with the concurrence of the Purchaser elect to ratain. Provided that in case the material and /or the components are supplied to the Contractor through the intervention of the Purchaser or on his behalf:
(i) (ii) The said fair and reasonable price shall be assessed on the basis of `he cost price of such materials and/or components, and If the Contractor elects to retain any materials, boughtout components and articles as in this clause provided, he shall settle all claims of the supplier in respect of the materials and/or components supplied to him as aforesaid including any claims to any extra charge (if the original stipulated terms had been

concessional) and shall keep the Purchaser indemnified against the same. (b) The Contractor shall deliver in accordance with the direction of the Purchaser all such unused and undamaged materials, bought-out components and articles in course of manufacture (except as aforesaid) taken over by or previously belonging to the Purchaser and the Purchaser shall pay to the Contractor fair and reasonable handling and charges therefore. (c) The Purchaser shall indemnify the Contractor against any commitments liabilities

or expenditure which in the opinion of the Purchaser are reasonably and properly chargeable by the Contractor in connection with the contract to the extent to which the Purchaser is satisfied that such commitments, liabilities or expenditure would other wise represent an unavoidable loss by the Contractor by reason of the termination of the contract. Provided that in the event of the Contractor not having observed any direction given to him under sub-clause (ii) hereof the Purchaser shall not be liable under this sub-clause to pay any sums in excess of those for which the Purchaser would have been liable had the Contactor observed that direction,
4.

If in any particular case, exceptional hardship to the Contractor should arise from the operation of this clause, it shall be open to the Contractor to refer the circumstances to the Secretary of the Administrative Department who on being satisfied that such hardship exists, shall make such allowance, if any, as in his opinion is reasonable. The Purchaser shall not in any case be liable to pay under the provisions of this clause any sum which when taken together with any sums paid or due or becoming due to the Contractor under this contract, shall exceed the total price of the articles specified in the schedule payable under this contract. BOOK EXAMINATION CLAUSE The Contractor shall whenever required, produce or cause to be produced for examination by any Government Officer authorised in that behalf any cost or other account, book of account, voucher, receipt, letter, memorandum, paper or writing or any copy or or extract from any such document and also furnish information and returns verified in such manner as may be required in any way relating to the execution of this contract or relevant for verifying or ascertaining the cost of execution of this contract (the decision of such Government Officer on the question of relevancy of any document, information or return being final and binding on the parties). The obligation imposed by this clause is without prejudice to the obligations of the Contractor under any statute, rules or orders binding in the Contractor.
ANNEXURE-F

5.

No. SOIV (COORD) S&GAD/6(25)/90 GOVERNMENT OF SINDH SERVICES &

GENERAL ADMINISTRATION DEPARTMENT Karachi, dated 28th October, 1991

1. 2.

3.

The Additional Chief Secretary, Local Govt. Department, Karachi. The Additional Chief Secretary (Dev), Planning & Development Department, Government of Sindh, Karachi. All Administrative Secretaries to Government of Sindh. Subject: DE-CENTRALIZATION OF PURCHASES. This is to inform that de-centralization of purchases has finally been approved by the Chief Minister, Sindh. All the administrative Departments are, henceforth, required to make purchases of stores against their budget allocations according to the following procedure as approved by the Chief Minister, Sindh:
(i) (ii) Each Administrative Department will constitute a Departmental Purchase Committee headed by Secretary of the Department. The decision of Secretary of the Department shall be final.

(iii)

(iv)

Each Administrative Department shall also constitute a Technical/Standardization Committee which will assist the Purchase Committee. All demands valuing rupees one lac and above except those for proprietory stores should invariably be advertised through press. The registration of approved suppliers /contractors of store shall continue to remain with Director Industries as per pre-decentralization procedure.

(v)

Tenders/bidders shall submit along with their tender, earnest money equivalent to 2 % of the value of their offer in the form of a call deposit/pay order in favour of Administrative Secretary of the Department. (vi) The successful tenderers (registered with the Directorate of Industries, as well as, un-registered firms), shall deposit security in the form of a call deposit/pay order in favour Administrative Secretary of the Department at the following rates: (a) Registered firms: 2 % of the value of the contract. (b) Un-registered firms: 12 % of the contract amount (c) The rates given in (i) and (ii) above shall apply to state regulated units/enterprises also. (d) In case of un-satisfactory performance of any registered firms, the limit of 2 % of security deposit can be raised to 10% by Secretary of the Administrative Department at his discretion. (vii) The inspection of stores except medicines, purchased by any Department exceeding the value of Rs. 1, 00 lac- may be earned out by the Inspection Wing of the Directorate of Industries in association with the consignee. In case of difference of opinion, the matter will be referred to the Director Industries who in consultation with the indenting officer will give his independent opinion. (viii Procurement of rate contract items (fans and typewriters) shall continue to be made through Directorate of Industries ) according to the pre-decentralization procedure. However, Health Department may enter into rate 0contracts for medicines through its Purchase Committee as per procedure contained in the revised Sindh Purchase Manual, 1991.mittee as (ix) All purchases in foreign exchange shall be effected through Directorate or

Industries.
(x) (xi) The items/stores manufactured by State Enterprises shall be purchased by the indenting officers direct from them at the price fixed by the Government.

Stores falling under any broad category valued upto Rs. 25, 000/- can be purchased directly by indenting officers during one financial year except: (a) where the rate contract exists; (b) the stores cannot conveniently be purchased by the indenting officers direct;

(c)

where foreign exchange is involved:

However, indenting officers of Health Department are authorized to make local purchase of. drugs and medicines only to the extent of 25% of their budget in local currency. (xii) Administrative Secretary ran grant NOC upto an aggregate value of Rs. 50, 000/to an indenting officer during one financial year without consulting Finance Department, provided: (a) the value of an individual items or a group of items falling under the same category does not exceed Rs. 25. 000/-. (b) indenting officer certifies that he is in no way responsible for delay in submission of the indent. NOC beyond Rs. 50, 000/- will be granted by the Administrative Secretary of the Department in consultation with Finance Department. (xiii Purchase in excess of estimated amount shown in the indent in the absence of any ) general or special instructions of the indenting officer, the Administrative Department can accept the rates which are not more than 10% in execss of the estimated rates given in the indent. (xiv) Rates for fee for advertised tenders
2.

The modified Purchase Manual entitled "The Sindh Purchase Manual, 1991" shall be supplied to all the Administrative Departments shortly. In the meanwhile, important features of the de-centralized system have been highlighted in the preceding paras to facilitate procurement of stores by the Administrative Deptts. The procedure is subject to the financial control exercised by Government in the Administrative Department and Finance Department as laid down in Chapter VII of the Manual.

Value of indents. Charges for tender form (per set). (i) Not exceeding Rs. One lac. Rs. 50. (ii) Exceeding Rs. One lac but not exceeding Rs. 5 lac. Rs. 100. (iii) (iv) (v)

Exceeding Rs. 5 lac but not exceeding Rs. ten lac. Exceeding Rs. 10 lac but not exceeding Rs. 25 lac.
Exceeding Rs. 25 lac.

Rs. 250. Rs. 1000.

Not exceeding Rs. 2000 at the discretion of the Administrative Secretary of the Department. 3 .

All previous instructions in this regard shall stand superceded with immediate effect. Secretary to Government of Sindh.

GOVERNMENT OF SINDH INDUSTRIES & MINERAL DEVELOPMENT DEPARTMENT.

Karachi, dated 24th June, 1990

NOTIFICATION No. SOIII (I&MD)/12-13/90. The Government of Sindh are pleased to make the following amendments in the "Sindh Purchase Manual, 1977" with effect from 1st July, 1990. AMENDMENTS 1. In Chapter-IV for clause 69, the following shall be substituted:"69 Advertised Invitation to Tenders will be subject to the following rates of fee: Estimated value of Indents, Charges for tender from per set. (1) Where the amount does not exceed Fifty rupees. one lac rupees. (2) Where the amount exceeds one lac One hundred rupees, but does not exceed five lac rupees. (3) Where the amount exceeds five lac Two hundred and fifty rupees rupees but does not exceed ten lac rupees. (4) Where the amount exceeds ten lac One thousand rupees, rupees but does not exceed twenty five lac rupees. (5) Where the amount exceeds twenty Not exceeding two thousand rupees at five lacs rupees. the discretion of the Director of Industries No. tender form shall be issued except on payment of the above charges. 2. In Chapter V, after clause 83, the following new clause shall be added: "83-A (1) Fee for Award of Contracts: The service charges at the rate of Rs. 0. 25% will be paid by the Contractor on the amount of contracts awarded by the Directorate of Industries. (2) The charges will be deducted at source by the Accountant General Sindh while making payments to the Contractor. (3) The amount so realised will be creditable to the Head of Account 1264000-Industries, 1264603-Store Purchase.

3.

In Chapter VI, for clause 86, the following shall be substituted:

"86 (1) Fresh Registration and Registration of Additional items: The application shall be accompanied by a Treasury Challan or Bank Receipt of one thousand rupees (not refundable) to be deposited in the State Bank of Pakistan or any Government Treasury in favour of the Director of Industries (Supply Wing) Government of Sindh Karachi under the Head of Account 1264000-Industries; 1264603-Store Purchase. (2) The application shall be accompanied by a Treasury Challan or Bank Receipt of one thousand rupees (not refundable) to be deposited in the State Bank of Pakistan or any Government Treasury in favour of the Director of Industries (Supply Wing) Government of Sindh Karachi under the Head of Account 1264000-Industries; 1264603-Store Purchase. (3) The Firms which are already registered with the Directorate and require to be registered for any other category of stores shall submit applications in the prescribed form DIS-IA accompanied by a Treasury Challan of one hundred rupees (Not refundable) to the Registration Section, of the Supply Wing". (4) In Chapter VI, in clause 88. in sub-clause (i), for the words and figures "Rs. 100/-" the words "two hundred and fifty rupees", shall be substituted.