Jist of suggestions & feedback from prequalified contractors received during / after Seminar on 29.06.

06
and response thereon
S.No.
Contractor's suggestions
Response
1
PQ applications were invited in April' 04 based on audited In some cases open bids are being invites with post
balance sheets & experience till 2003. Limits of qualification criteria. Financial limit of prequalified
experience & financial limit be withdrawn and specify contractors is also has been increased by 20%.
condition of 50% experience, 1.5 times average annual
turn over and net worth 30 to 50% of estimated cost of
contract at the time of bidding.
2

Firms financial capacity should be reviewed as per last Financial limit is being increased by 20%. In some cases
two years performance and new bid capacity should be open bids are invited in which criteria for experience and
worked out.
financial capacity will be laid down.

Performance Security & Retention Money for LCB should The matter will be taken up with ADB as standard
be equal to ICB.
documents shall need modification.

Life Cycle cost through is a noble idea but has lot of Life cycle cost is not considered. Evaluation method is
loopholes. Evaluation method, should be clearly being clearly described in bid documents.
mentioned in bid.

Price adjustment clause be made applicable for all At present price adjustment is being made applicable
tenders irrespective of contract period as steel and where contract period in more than 12 months.
cement prices are volatile.

Reimbursement of change in taxes & duties be given in It is already provided.

LCB as in ICB.

Indices does not compensate actual escalation in a Matter may be taken up separately for each type of work
volatile market, some other means for escalation should & can be taken up in pre bid meetings.
be found.

Issue of Excise duty exemption certificate

It is clearly mentioned in all bid documents that Excise

duty and Import duty are exempted in ADB works and
certificate to this effect as per laid down rules will be
issued.

Defect liability - To clarify

Defect liability stipulations are clearly mentioned in bid

documents.

10

Trial runs and commissioning shall be maximum 30 days. It will be considered on case to case basis depending
upon requirements.

11

Once water is started, taking over process should be Concept of taking over after substantial completion and
made with defect list to be completed.
defects / minor left over works to be completed during
defect liability may be considered.

12

Allow 75% of gross bill amount within 7 days of bill This may be applicable only if State Government & ADB
submission and balance in 30 days after scrutiny of agree.
measurements.

13

Allow 2 bills in a month.

Minimum limit for each bill is 2% of contract value and

this limit is not applicable for first 3 running bills. Two bills
may be allowed subject to above.

14

Completion period should be realistic

It is being decided so.

15

Most of the conditions are designed to suit the client

The conditions are as per FIDIC which are fair to both

client and the contractor and are not one sided.

16

JV may be allowed for specialized sub works.

JV is allowed.

17

Ambiguities, discrepancies result in disputes and delays

All out efforts are done to eliminate ambiguities and

discrepancies in bid document. However there is an
opportunity at the time of prebid meeting to sort out
these.

18

FIDIC clause may be provided in document to minimise FIDIC Clause has been provided.
discrepancy and ambiguity

19

Some contractors advised for big packages by clubbing Generally packages have been prepared separate
of works, while some prefer separate packages for WTP, depending upon nature of works such as separate for
Pump house, Head works & Pipe line.
WTP, Pump house, Pipe line etc.

20

Contractors have suggested to include O&M of WTPs O&M has been included 1 to 3 years for WTPs, Pump
and Pumping Stations from 1 to 5 years. One contractor houses etc.
has suggested not to include O&M.

21

For quality, past performance of contractors should be It is a good suggestion. However in present scenario
given weightage and ISO certified companies should be when we are experiencing limited competition, it would
allowed to participate.
further restrict the competition.

22

Longitudinal & circumferential welded pipes should be Spirally welded pipes are far superior in quality and
considered at par with spirally welded pipes.
therefore in major works spirally welded pipes are being
specified to ensure quality.

23

Send NIT to all PQ Contractors as qualification enhanced NIT of open bids shall be sent to all prequalified
in last 3 years.
contractors also.

24

Bid document should be available on web site to It will be considered

download.

25

Estimates are low.

26

Approval of designs, drawings, sub-vendor and statutory During implementation of works it will be properly
requirements be expedited by project.
addressed to expedite approvals.

27

Makes of cement & reinforcement bars need not be The issue will be discussed with SAIL, TISCO & RINL &
specified as ED exemption for SAIL, TISCO, RINL is not appropriate action will be taken.
possible as material has to come from factory and not
from dealer.

28

Contractor to have his own quality

supervision from client and consultant.

29

Departmental quality control wing may yield better quality

as against third party control setup. Third party engineers
are not experienced. In case a third party inspection is
provided it may be suggestive one only.

30

Permission from other organisations such as Land Client will provide full assistance in getting approvals. It
Acquisition, Electricity,NHAI, Railways should be will be tried to make permission available prior to
arranged by client prior to commence the concerned commence concerned part of work
component of work.

Estimates are being revised and will be based on current

market rates.

department, It will be done so.

Third party inspection is provided for inspection of
material at factory before dispatch of material and
experienced agency is being deployed. Supervision of
field works shall be by consultants and client.

31

Organization support : Cohesive team work, control of

opportunistic behaviour, clear roles and responsibilities,
cooperative behaviour. State departments think of the
contractor as lowly entity whereas other organisations
mostly treat the contractor as an equal partners and
works as long and as hard as any private company.
Provide timely funds and keep the contractors cash flow
positive during execution.

32

LD Clause should exclude delayed approvals, Land Yes it is so.

Acquisition, force majeure, natural floods, cyclones,
strikes.

33

Most of the contractors have favoured e-tendering as it

provides transparent & fair competition and eliminates
mal practices. However some contractors have
expressed some apprehensions, such as:

Different digital signatures required for different states in Digital signatures proposed in project will be applicable
India,
for all states.

Contractors representative has to make site visit for bid For bid estimation site visit is required in both system of
estimation,
bidding viz e-procurement and in manual system.

Prebid meeting attendance is compulsory,

Physical submission of bid security require additional Physical submission of bid security may be done through
visit,
post.

Transmission of tender fails due to failure of net Bid can be submitted 1-2 days before without waiting for
connectivity,
last moment submission.

Non availability of Band width due to transmission of Bid No such problem in proposed e-procurement
by number of bidders simultaneously at closing time,

Time lag in servers,

One spends huge time for down load, sign and seal, All pages can be signed in a milli second.
scan, upload, attach all the pages of bid document.

Down loading bid document should be over 7 days We are planning down load of bid facility upto bid
before submission date.
submission date so that if some body decides to bid at
last moment, it is possible.

Physical submission must be atleast 3 days after

e -submission date before price opening.

We are planning 2 days time. It can be done three days.

No deviation be allowed.

Deviations are not allowed.

Since only Prequalified contractors, technical bid should In most of the cases technical bid is not taken. Only in
be dispensed.
case of design, supply and install works technical bid to
be taken.

Both option of e-tendering & open should be available.

Supervisory staff shall be imparted training for

cooperation & cohesive team work and treat contractor
as partner. Project provides 10% advance in various
works and payment conditions are made such as to
maintain cash flow positive.

Attendance in person for pre-bid meeting is not required

in e-procurement. It is held 'online' & it is an advantage
and not a disadvantage.

No time lag is there in server

One option is better. Advantages of e-tendering would be

lost in adopting both options.