To

The Superintending Engineer,

(R&B) Circle, Ongole,
Prakasam District.
Sir,
Sub:

Ref:

Works (R&B) Department - (R&B) Circle, Ongole-(R&B)Division,

Kanigiri-Improvements to Kandukur-Pamuru Road from KM.19/8 to 34/0 in
Prakasam District-Administratively and technically sanctioned for
Rs.12.00 Crores-work put to tender on 07.02.2013 and five contracting
Firms/Contractors participated in the tenders-Lowest bid of M/S.CSR
Infratech India Private Limited, Hyderabad not accepted on the pretext of
not fulfilling the Eligibility Criteria-High Court of AP approached to resolve
the dispute-After observing the legal procedure, the Honble High Court
adjudicated the issue in our favour-Agreement concluded on 17.07.2015Revision of the estimate with the SSR of 2014-15 and allowing us revised
rates with a discount of 10.85% -Orders Requested.
1.NIT NO.11940(1)/E-In-C(R&B)R/ EE/ DEE5/ AEE2/ 2013
Dated 07.02.2013 of the E.In.C (R&B), Admn & State Roads,
A.P., Hyderabad.
2.Our Tender for the work filed on . . . . . . . . .
3.Order dated 02.06.2015 passed by the Honble High Court of
A.P., Hyderabad, in W.P.No.204 of 2014.
4.S.Es (R&B) Circle, Ongole L.S. CR.Agt.No.21/2015-16 dated
17.07.2015.
@@@

We represent the following facts for favour of kind consideration and taking
steps for remedying the peculiar situation resulting

from the chronic delay in

settlement of Agency and conclusion of the agreement for the above capationed work.
2.We submit that the above work was put to tender through the NIT first cited,
inviting tenders from the Special class contractors/ I class contractors registered with
the Government of Andhra Pradesh and fulfilling the eligibility criteria of having
satisfactorily completed works of the value of not less than Rs.4,93,96,947/- in any one
financial year during the last five financial years and having executed certain
specialized items of work to the extent of the minimum quantities specified in para 3(i)
and (ii) of the said NIT.

Five contractors/contracting firms including our firm

participation in the tenders for the work.

We produced proof of our registration as

class I contractors and recorded evidence of our having fulfilled the eligibility criteria
along with our technical and financial bids.
3. On the date scheduled for opening of tenders in the O/o. the Engineer-InChief(R&B), State Roads, Andhra Pradesh, Hyderabad, our technical bid was opened.
But on the faulty conclusion that we have not fulfilled the eligibility criteria, our
financial bid was left unopened.

The Officials

concerned in the Engineer-In-Chiefs

Office (R&B) Roads proceeded with processing of the bids of the remaining

four

tenderers for determining the qualified Agency for executing the work. As it became

clear that our lowest bid was going to be rejected, we approached the Honble High
Court with W.P.No.204 of 2014 praying for scrutiny of our Technical and Financial Bids
and adjudgement of our having fulfilled the Eligibility criteria specified in the NIT.
Thereupon, the (R&B) Department as well as the next lowest Bidder countered our writ
petition. In the legal process, it took the Honble Court two years and four months to
pass final order dated 02.06.2015 in the writ petition in our favour. Thereupon, our
lowest tender for Rs.8,80,74,756/- at 10.85% less than the estimated contract value of
Rs.9,87,93,893/- arrived at based on the SSR of 2008-09 has been accepted and
agreement has been concluded on 17.07.2015.

Vide S.Es (R&B) Nellore L.S.

th

Agreement 4 cited.
4. Thus, a pretty long time of two years and 4 months was consumed in disposal
of our writ petition. In this context, we submit that the estimate for the work was
sanctioned based on the SSR of 2008-09. During the gap period between February
2013 and June 2015, the prices of the work materials and cost of labour have
increased considerably. If the rates of SSR of 2008-09 are compared with those of the
SSR of 2014-15, there is an increase of 25% in the price level of commodities.
Consequently, the cost of work has escalated by 25% by now. The estimated contract
value of the work arrived at Rs.9,87,93,892/- with reference to the SSR of 2008-09 will
get boosted upto Rs.12,28,73,861/- based on the present price level of work materials
and cost of labour, resulting in an excess probable cost of Rs.2,40,79,969/- which
works out approximately to 24.39%. The following is an abstract of the comparative
figures of the cost of different classes of work we are to execute as per the agreement
concluded:-

S.No.

Type of work.

Estimated
cost as per
SSR of 201415

Estimated cost
as per SSR of
2008-09

Excess Cost.

I.

Road Work.

Rs.8,69,30,49

Rs.6,99,51,984

Rs.1,67,78,5

9
II.

C.D.Works.

Rs.1,24,08,53

75
Rs.1,04,05,587

Rs.20,02,967

Rs.1,84,38,341

Rs.50,98,487

Rs.9,87,93,892

Rs.2,40,79,9

4
III.

C.C.Pavement.

Rs.2,35,34,82
8

Total.

Rs.12,28,73,8
61

69

We submit that the above situation is attributable to the faulty conclusion by the
Department on our presumed lack of qualification (Eligibility criteria specified in the

NIT), which led to our taking recourse to the legal process to prove our possession of
the prescribed qualification to execute the work in question.

Having won the legal

battle that took place for over two years we could not go back from conclusion of the
agreement for the work, despite the fact that the price level has risen considerably
during the gap period (between the time of call of tenders and the decision taken by
the department to award the work to us), resulting in the boosting up of the cost of
work by 25%.
5. Prior to conclusion of the agreement for the work, we orally informed the
Superintending Engineer (R&B) Circle, Ongole about non-workability of the rates of the
SSR of 2008-09 based on which the estimate for the work was sanctioned, in view of
steep rise in the price level in the intervening time of 2 years and 4 months, we
requested for revision of the rates with the current SSR of 2014-15.

But, the

agreement concluding authority expressed helplessness to comply with our request.

Hence, having been left with no other alternative, we had to conclude the agreement
for the work.
6. We submit that this is an exceptional and extra-ordinary case deserving
reconsideration of the issue and revision of the estimate for the work with the current
SSR of 2014-15 and rescheduling of the rates stipulated in the agreement, in
relaxation of rules in force.

The Government is looked upon as a principal

ideal

employer who is expected to mete out a fair deal for the services rendered in
execution of public work by way of paying fair and justified quantum of remuneration
for the quality and quantity of work done. The Government is expected neither to give
an undue benefit for the work done nor to exploit the situation of the service provider
being in a disadvantageous position on account of his adversely exceptional
circumstances by paying lesser quantum of remuneration than the amount due for the
quality and quantity of work done. We submit that this is a fit case for the Government
to be charitable enough to reconsider the issue in its true perspective and be
magnanimous to issue orders for revision of the estimate for the work with reference
to the current rates of the SSR of 2014-15 and incorporate them in the agreement
concluded for the work in relaxation of rules under the exceptional and extraordinary
circumstances of the case. We submit that in the event of the Government sticking on
to the rates of SSR of 2008-09, we will be landed in an enormous financial loss, which
is tantamount to lack of incentive and persuasion for the out-turn of good quality of
work on the part of the principal employer.
7.We humbly request the authorities concerned to be kind enough to give a due
consideration to this matter and be generous enough to issue orders for revising the
estimate for the work with the current SSR of 2014-15 and for incorporation of the
revised rates in the agreement concluded for the work in the interest of fairness and
natural justice.
Thanking You, Sir,

Yours faithfully,

Managing Director,
For M/S. CSR Infratech
India Private Limited
Hyderabad.
Copy submitted to the Engineer-In-Chief(R&B), Administration & State roads, Andhra
Pradesh, Hyderabad for favour of kind consideration and favourable orders.