SUMMER TRAINING REPORT

TENDERING, BID EVALUATION, NEGOTIATION & CONTRACT AWARD PROCESS OF AAI

In partial fulfillment of the requirements for the award of the Degree of

MASTERS OF BUSINESS ADMINISTRATION (INFRASTRUCTURE)

(2010-2012)

Submitted by: Name of Student: SAIMA SHAFI Roll No.: 13131

UNIVERSITY INSTITUTE OF APPLIED MANAGEMENT SCIENCES

PANJAB UNIVERSITY, CHANDIGARH.

ACKNOWLEDGEMENT

All praise to almighty Allah the most beneficient and merciful, without whose blessings, I could not have done this project and it is whose blessings that I am here with this project. I have taken efforts in this project .The satisfaction of completing any task dose not turn into euphory without mentioning those responsible for its completion. I would like to extend my sincere thanks to all of them. First of all with highest degree of gratitude, we wish to express my thanks to the director of UIAMS Dr. Sanjeev K. Sharma and the TPO of UIAMS Dr. Amandeep S. Marwah for providing the necessary facilities during the training placement process and their encouragement from time to time. I am highly indebted to Mr U.K.TIWARY (SR. MANAGER CIVIL ENGG, AAI SGR INTL. AIRPORT) for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. Their Constructive criticism and generous help was a moral booster and a source of great inspiration for me in completing this work. I would like to express my gratitude towards my parents & member of AAI, SRINAGAR INTL AIRPORT for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

ABSTRACT
Tendering (also referred to as procurement) is the process a business goes through when responding to a requirement for a service or good which has been identified by the buyer. A valid tender is an offer. It is something, which invites and is communicated to notify acceptance. Correct Tendering, bid evaluation, negotiation and contract award process is the foundation of any successful project. Airports Authority of India (AAI) was established by an Act of Parliament on 1st April, 1995 by merging the International Airports Authority of India and the National Airports Authority. The objective of the merger was for better administration and cohesive management of airports and civil enclaves whereat air transport services are operated or are intended to be operated and of all aeronautical communication stations and for matters connected therewith or incidental thereto. In the direction of upgradation of Srinagar airport to international standards, AAI had already taken up the work of enhancing the capacity of the existing terminal building to cater for 450 international passengers and 500 domestic passengers during peak hours. The modified terminal building will have provision for all modern amenities like aerobridges, central heating system, conveyor belts etc. In AAI, this process is followed with set of rules and procedures as per AAI. Tendering process of AAI comes under the planning deptt of the organization, where senior manager looks after the various steps to be followed. The process can take maximum of 6 weeks. This study has the following scope: 1. 2. 3. 4. 5. Elements of a good procurement and competitive bidding process Developing high quality specifications Developing tender evaluation criteria Selecting the right contracting strategy Contract Preparation

The main objectives of this study are: 1. Realize the contracting stages from setting the scope of work to awarding the contract. 2. Evaluate, in-depth, the process of preparing tenders and selecting potential suppliers. 3. Understand the issues involved in assessing tenders for quality as well as value for money including e-Auction. Maximise business leverage from tenders. Discover essential service procurement and/or tendering tools and techniques 4. Create winning tenders! 5. Apply several approaches to bid evaluation using criteria, weights and scoring measures. 3

For apron upgradation the lowest bidder was BHOLASINGH JAIPRAKASHCONSTRUCTION LTD. who quoted an amount of Rs. 278868255.05 (4.86% above justified cost) and was declared L1 as against the M/s Vishal Infrastructures who quoted an amount of Rs. 292577135.00 (10.03% above justified cost). The tender process raises complex and difficult issues for all parties. It requires timely, yet thorough analysis of the project. Nevertheless when used with careful analysis and planning, it often can best meet both the sureties and obliges business interests. This process should be less time consuming in present world of business competition. It would be more easy to follow if E-PROCUREMENT would be used. E-procurement (electronic procurement, sometimes also known as supplier exchange) is the business-to-business or business-to-consumer or Business-to-government purchase and sale of supplies, Work and services through the Internet as well as other informations and networking systems, such as Electronic Data Interchange and Enterprise Resource Planning.

TABLE OF CONTENTS
CHAPTER 1. INTRODUCTION CHAPTER 2. INTRODUCTION TO ORGANISATION CHAPTER 3. THE PROBLEM UNDER STUDY
a) BACKGROUND b) RATIONALE OF THE STUDY c) SCOPE OF THE STUDY

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CHAPTER 4. REVIEW OF LITERATURE

a) THE EXTENSION AND RENOVATION OF EXISTING TERMINAL BULDING AN APRON AT SRINAGAR AIRPORT. b) TENDERING, BID EVALUATION, NEGOTIATION AND CONTRACT AWARD PROCESS OF APRON UPGRADATION AT SRINAGAR INTERNATIONAL c) AIRPORT. AIRPORTS AUTHORITY OF INDIA , NOTICE INVITING TENDER d) AIRPORTS AUTHORITY OF INDIA, TENDER FORM e) AIRPORTS AUTHORITY OF INDIA GENERAL CONDITIONS OF CONTRACT INTERPRETATION AND DEFINITION f) SPECIAL CONDITINS OF CONTRACT g) ACCEPTANCE LETTER

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CHAPTER 5. OBJECTIVES CHAPTER 6. METHODOLOGY

69 71

CHAPTER 7. OBSERVATIONS,ANALYSIS AND DISCUSSION 73

a) ABSTRACT OF L1 AND L2 b) AWARD LETTER

CHAPTER 8. CONCLUSION AND RECOMMENDATIONS

a) LIMITATIONS

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CHAPTER 9. BIBLIOGRAPHY

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CHAPTER-1 INTRODUCTION

Tendering (also referred to as procurement) is the process a business goes through when responding to a requirement for a service or good which has been identified by the buyer. You may well find that when starting out this is how you initially build your network of contacts. For those of you who dont know, a tender or tender document is a document that outlines a customers project requirements.

PREPARATION OF TENDER DOCUMENTS

General

1.1 A valid tender is an offer. It is something, which invites and is communicated to notify acceptance. Broadly stated, the following are the requisites of a valid offer. (a) It must be unconditional. (b) It must be made at proper place. (c) It must conform to terms and obligations. (d) It must be made at the proper time. (e) It must be made in the proper form. (f) There must be reasonable time for inspection.

1.2 Before tenders for a work are invited, a detailed estimate showing the quantities, rates and amounts of the various items of work and also the specifications to be adopted should be prepared and sanctioned based on the architectural drawings. The final authority to decide on the specifications is TS authority. 1.3 In case of works for which tenders are to be invited, tender documents comprising of the following should be prepared and approved by an authority who is empowered to approve the NIT before notice inviting tender issued: (a) The notice inviting tender (b) The form of tender to be used along with a set of conditions (c) The schedule tile of quantities of work

PUBLICITY OF TENDERS

General

1.1 Tenders must he in bed in the most open and public manner possible, whether by advertisement in the press or by notice in English/Hindi and the written language of the district, pasted in public places. Wide publicity should, therefore, be gien to the Notice Inviting Tenders including release on AAI Website. A copy of the notice should be sent to the other Divisions and the DGM/JGM. 1.1.1 A tender notice does not amount to an offer or proposal but merely an invitation to the contractor for making an offer. An advertisement of tenders is not a proposal, which would bind the authority to sell to the person who makes the highest tender. It is merely an attempt to ascertain whether an offer can be obtained within such a margin, as the seller is willing to adopt. The advertisement calling for tenders, therefore, is not a proposal within the meaning of the Contract Act, but it invites a proposal In addition to the existing rules and practices regarding giving publicity of tenders through newspapers, trade journals and providing tender documents manually and through post etc. the complete hid document application form should be published on AAI s web site of the organization. All the documents upto date should remain available and should be equally legally valid for participation in the tender process as manual documents obtained from the department through manual process.

The complete application torn should he available on the web site for purposes of downloading and application nude on such a form should be considered valid for participating in the tender process as stipulated in the NIT. Web site address must be given in the advertisement/ NIT published in the newspapers. Charges for the application form downloaded from the computer may be asked from biding party by demand draft at the time of submission of the application form and bid documents. Efforts should be made to eventual to switch over to process of procurement procurement/e-sale wherever it is found to feasible and practical. 2. Pre Bid Conference: NIT approving authority may decide necessity of conducing pre bid meeting considering the nature of job. Minutes of the meeting shall be circulated to all prospective tenders. 3. Time Limit for Publicity of Tenders e-

3.1 The following time-limits, between the date of call for tenders and the date of opening of the tenders are laid down but this period may be varied at the discretion of the Officer competent to accept the tender. However any reduction in the time specified should be effected only in rare case and the authority ordering reduction will record reasons for the same: Time period for call of tender may be as below: Activity For Works of Estimated Cost Up to Rs.5 crores
Last date of receipt of application after press notice

Above Rs.5 crores 21-30 days

11-15 days

Submission of tenders after issue of tender

11-15 days

21-30 days

In the case of works estimated to cost above Rs. 10.00 lacs, a brief advertisement inviting tenders shall in variably be inserted in the press.

Annexure-2 PROFORMA FOR BRIEF PRESS ADVERT1SENIENT FOR WORKS COSTING 1. ABOVE Rs. 10.00 LAKHS TO Rs. 500 LAKHS (5 CRORES)

TENDER NOTICE Airports Authority of India invites sealed------------------------ rate for the work of ----------------------------------------------------------------------------------------------------- at an estimated cost of Rs.----------------------- with period of completion ----------------- months. Last date of receipt of applications is--------------For further details refer AAI Web site www.aai.aero and www.airportsindia.org.in

ABOVE Rs. 500 LAKHS (5 CRORES) NOTICE INVITING APPLICATION FOR SHORT LISTING OF CONTRACTORS Airports Authority of India invites applications for short listing for the work of ----------------------------------------------------------------------------------------------------- at an estimated cost of Rs.------------------------ with period of completion ----------------- months. Last date of receipt of applications is------------For detailed information log on to website www.aai.aero and www.airportsindia.org.in

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SALE OF TENDER DOCUMENTS

General

1 .1 Approved draft tender documents should be prepared and kept ready for sale to the contractors before the date of issue of tender document and every contractor desiring to participate in tender should be asked to make a written application. It is the responsibility of the SM/SM(SG)/Asstt. GM to see that tender documents are made available to the contractors as soon as the application is made. 1.2 For recorded reason the ED Engg is competent to permit any particular person or firm, who are not borne on the approved list of CP\\D or any other Government Department to tender for specialised works. Specialised firms should not be insisted for registration with any other department. 2. Procedural Requirement 2.1 It should be made very clear in the Press Notice and NIT that previous experience in the execution of such works (Specialised items of works concerned) is necessary, details of which should be appended by the Contractor. Besides, the contractor should possess the necessary special T&P for proper execution of job. 2.2 It order to get competitive rates in respect of all specialised jobs. it is necessary that tile NITs [notice] for specialised works should he sent to the firms while inviting tenders for the above type of works, the tender should be issued to the specialised firms as well as to tile registered contractors of the Department. 2.3 In the case of some specialised job, by specialised firms, Guarantee Bonds are also required to be executed viz, water proofing works and Anti-termite Treatment. The Guarantee Bond form is reproduced in

Appendix-42. 3. Time Interval between Sale of Tendcr Document and Opening of Tenders 3.1 Any tender form which is issued either for sale or for office use should he issued under the signature of the SI/SM(SG) or the Manager. Asst. Manager as the case may be. In order to give contractors sufficient time to study tender documents and work out reasonable rates, the lust date for the issue of tender documents in the case of large works should be a minimum of two years before the tenders are scheduled to he opened. But in the case of works costing less than Rs.10,00,000/-of tenders by SM/SM(SG), the sale of tender forms

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should be stopped at least 24 hours before the opening of tenders. Ever tender document issued must contain the following information at the time of its issue. Name of contractor. Date of application for tender by contractor/date at receipt at application in Divisional Office. Date of issue of tender papers and Date of receipt of tender papers.

3.2 The SM/SM(SVG) should have rubber stamps with the above information to be put on each lender and the dates and other particulars may be filled in at the time of issue of tenders. Note: The term large work appearing above means Works costing more than the normal acceptance powers of tenders by SM/SM(SG ) RECEIPT OF TENDERS AND THEIR ACCEPTANCE 1. General With a view to avoid the possibility of original tender documents being tampered with, the following procedure should he adopted in connection with the receipt and opening of tenders and their acceptance. 2. Receipt of Tenders: 2.1 All the tenders iii the power of SMJSM(SG) Engg and higher officers should he received in office of concerned SM/SM(SG)E/Asstt.GME. lender in power ME/AME should be received in the office of concerned MEAME, 2.2 All tenders should be called in two envelopes. Envelope-i: A letter from the contractor on their letter in the format issued by AAI, confirming that no condition is stipulated in the financial bid ad ii any condition is found entered/enclosed with the financial bid. their tender has summarily rejected. This envelope should contain I/MI) also. Envelope-2 : Only price bid. For the works, wherein technical bid is also required.

Envelope-1: Shall contain the requisite certificate & EMD.

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Envelope-2 : Shall contain technical bid. Envelope-3 : Shall contain financial bid respectively. 3. Opening of Tenders . 3.1 All tenders should be opened in the presence of such intending contractors their representatives as may choose to attend at the time and place which should he advertised. Tenderers should also be encouraged to be present at the time of opening of the tenders. The details of opening of Tenders should he entered in the Register Tender Opening Register. 3.2 The following procedure shall be adopted while opening the tenders: After opening the tender box and marking the envelope No. 1 and 2 of received tenders serially, the envelope no.1 of all the bidders shall be opened first. In case the contents of envelope no. I are found conforming to the requirements as stipulated in the NIT conditions. envelope no.2 containing price bid of the concerned bidder shall be opened by the tender opening committee. In exceptional cases, where from the contents of envelope No.I of any particular tenderer the tender opening committee cannot decide as to whether envelope no.2 containing price bid of that agency should be opened or not. tender opening process shall be temporarily postponed and matter should he urgently brought before the tender accepting authority for a quick decision. On receipt of the decision, all the agencies shall be further intimated about the revised tender opening date of 20 envelope (i.e.. price bid). It shall be ensured by the tender opening committee that in no case a situation should arise where cover no.1 and cover no.2 (i.e.. price hid) of one or more. 3.3 Officers opening the tenders should invariably record date and initial corrections, omissions and additions/insertion in the schedule of Quantities. Schedule of material to be issued and specialisations and other essential parts of contract documents, and also record date and initial on pages pf the tendered documents irrespective of fact whether they contain or do not contain an corrections or overwriting, etc., the officer concerned should record the fact in writing at the end of those pages individually. .

3.4 Where the contractors have omitted to quote the rates in figures or in words. the omissions should he recorded by the officer opening the tender on each page of the schedule. 3.6 The officer opening the tender should see that the contractors quote entire rates in words including poise to avoid chances of tampering in rates and 1 the contractor fails to do 13

so the office opening the tender should himself write the rates in words at the time of opening of lenders and if necessary, initiate action against the contractor.

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4. Acceptance of Tenders: 4.1.1 Normally, there shouId not be any negotiation. Negotiation I at all shall be an exception in case of proprietary item or in the case of items with limited source supply or in exceptional circumstances only after. due application of mind and recording valid, logical reasons justifying negotiation. 4 .1.2 Negotiation shall be held with the lowest bidder only. 4.1.3 Wherever the price.of the lowest bidder is within plus (-) five percent of the justified cost, lowest bid can be accepted by the competent authority as per the Delegation of Powers.

4.1.4 Where, however, the price ofhe lowest bidder is higher than the justified cost by more than 5%, the lowest bid can be accepted by the authority ne\t higher to the officer competent to accept the tender as per the Delegation of powers. However Chairman shall have full powers. Reasons for such acceptance with higher variation beyond +5% shall be on record. 4.2 Before acceptance of tenders. all the conditions, etc.. submitted by the contractors should be finally settled before issue of acceptance letter. 5. Award of Work only for Area Where Project Site! Land is Available to AAI without Eucumbranes/ Encroachment: Work should be accepted /awarded Only for those areas where project site/land is available to AAI without encumbrances and encroachment and the excuted facilities can be utilized commissioned.

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CHAPTER-2 INTRODUCTION TO ORGANISATION

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CORPORATE MISSION

PROGRESS THROUGH EXCELLENCE AND CUSTOMER SATISFACTION WITH WORLD CLASS AIRPORTS AND AIR TRAFFIC SERVICES FOSTERING ECONOMIC DEVELOPMENT

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AAI Airports Authority of India (AAI) was established by an Act of Parliament on 1st April, 1995 by merging the International Airports Authority of India and the National Airports Authority. The objective of the merger was for better administration and cohesive management of airports and civil enclaves whereat air transport services are operated or are intended to be operated and of all aeronautical communication stations and for matters connected therewith or incidental thereto. Development of airports in the North- East and other inaccessible regions has always been a priority over commercial considerations. AAI provides Air Navigation Services over 2.8 million square nautical miles of air space reaching far beyond the continental airspace. Expansion of the activities of AAI covering services at 11 International airports, 86 Domestic airports and also facilitating passenger services at 28 civil enclaves speaks volumes about its commitment to develop civil aviation in the country towards achieving the Corporate Mission. MODEL AIRPORTS AAI has identified 12 important Domestic Airports which are being developed as Model Airports based on the importance of the city, traffic / tourist potential and coverage of all the Regions in the country. The runways at these airports are designed to cater to A-320 operations with standard approach and landing aids, modern communication and navigational facilities. The terminal buildings offer excellent facilitation keeping in view the ecology and local environment. The Model Airports are Jaipur, Lucknow, Nagpur, Vadodara, Calicut, Coimbatore, Patna, Bhubaneshwar, Guwahati, Hyderabad and lmphal. Apart from this, AAI is developing some of the cardinal Airports which generate tourist traffic. These include Goa, Bangalore, Varanasi and Agra. CUSTOMER SATISFACTION AND SAFETY Customer Satisfaction and Safety are the core priorities of AAI. In its endeavour to provide world class passenger amenities and services, the Authority is developing more International Airports in the country and improving facilities in Domestic Airports. MODERNIZATION Developing World class Air Navigation infrastructure to effectively manage Air Traffic is an identified thrust area. As part of this drive: The Authority is in the process of implementing a VSAT based Satellite Communication Network to connect 80 airports in the country to support all operational communication in the present as well as CNS/ATM environment.

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Satellite Navigation has also been one of the initiatives for enhancing the accuracy and reliability of GPS signal which could be gainfully used by other transport sectors like Road Transport, Railway, Surveying, Forestry, Resource Exploration, Environmental etc. A phased induction of ATC automation systems and also induction of new facilities to improve standards of safety at Airports and in the Air is in progress. IT IMPLEMENTATION Information Technology holds the key to operational and managerial efficiency, transparency and employee productivity. AAI initiated a programme to inculcate IT culture among its employees. AAI website with domain name www.airportsindia.org.in or www.aai.aero is a popular website giving a host of information. OFFICIAL LANGUAGE Progressive use of Hindi for effective implementation of Official Language Act and Rules is constantly encouraged. AAI has bagged a number of prizes for successful implementation of the Raj Bhasha. HUMAN RESOURCES AAI comprises of highly professional, motivated and trained manpower which helped it emerge as a professional organization on the horizon of aviation sector. High morale of the employee continues to boost smooth operation of its airports towards accomplishing the objective of customer satisfaction. The authority has successfully used the Human Resource tools like job rotation, redeployment etc., to sustain the employees interest in their job. AAI has a strength of about 21,000 employees both Executives and Non- Executives. The management of AAI firmly believes that through this invaluable asset of Human Resources alone, it can achieve its goals. Utmost care is taken in the employees welfare and various schemes have been introduced for the upliftment and better living standards of the AAI fraternity. Kalyanmayee, the Women Welfare Association of AAI, was set up with the main objectives of: Carrying out social, cultural and educational activities for the benefit of the Members and their families, so as to promote and imbibe a feeling of harmony and belongingness within the organisation. Carrying out social, charitable and up-liftment work for the down-trodden in the society. The activities of Kalyanmayee have spread throughout India and have become a platform to cater to the welfare, social & recreational needs of the whole family of AAI. The Personnel Directorates endeavour is to initiate/implement progressive HR practices and uniformly implement them in order to keep high employee morale enabling them to

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discharge their duties efficiently and reach excellence in their respective fields. The wage agreements for both Executive and Non-Executives, effective from 1st January, 97 and the harmonious industrial relations are a testimony to this. The Personnel Directorate strives hard to improve its services further. As a social responsibility adequate representation is ensured to those belonging to SC/ST and OBC in the matter of recruitment and promotion. TRAINING To cope up with constant changes and strides in technology and fill up the gap between actual performance and planned performance, skill acquisitions and upgradation is ensured amongst the employees through the process of training at various levels.

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CHAPTER-3 THE PROBLEM UNDER STUDY

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SRINAGAR INTERNATIONAL AIRPORT INTRODUCTION Situated at 1700 m from mean sea level and 900 km North of Delhi, Srinagar airport is the gateway to the beautiful Kashmir valley often called the paradise on earth. Srinagar is the capital of the Himalayan State of Jammu & Kashmir, which is surrounded by the fabulous Karakoram, Zanskar and Peer Panjal ranges of the Himalayas. In order to develop the tourism infrastructure of the Kashmir Valley, which is also known as Switzerland of India, AAI has drawn up plans to upgrade the facilities at Srinagar Airport to international standards. BACKGROUND In the direction of upgradation of Srinagar airport to international standards, AAI had already taken up the work of enhancing the capacity of the existing terminal building to cater for 450 international passengers and 500 domestic passengers during peak hours. The modified terminal building will have provision for all modern amenities like aerobridges, central heating system. conveyor belts etc. The expansion of apron has also been taken up in phases. To accommodate wide-bodied jet aircraft to suit international chartered flights, and construction of additional taxi track (parallel to the existing taxi track) joining the apron with the runway Phase-I of apron expansion work has been competed. Expansion of apron in phase-II, is to be taken up for parking of wide bodied aircraft as shown in the drawing, The phase-II work consists of expansion of apron by approx 40464 sqm to make a total of 71500 sqm, suitable for parking of 3 category E, 3 category D, and 3 AB-321 type of aircraft alongwith construction of additional taxi track, as per enclosed drawing. The, apron should be designed for critical aircraft category E.

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SCOPE OF THE STUDY: Tendering process of AAI comes under the planning deptt of the organization, where senior manager looks after the various steps to be followed. The process can take maximum of 6 weeks. This study has the following scope: Elements of a good procurement and competitive bidding process Developing high quality specifications Developing tender evaluation criteria Selecting the right contracting strategy Contract Preparation NEED OF THE STUDY In order to know how tendering process is done, how different projects are undertaken and what criteria are followed for the, it is necessary to study this topic. Also , on completion of this unit a learner should: Be able to record dimensions and descriptions of construction work in a methodical way and process these into final quantities for varying purposes, eg bills of quantities, variations, final account, interim payments, claims, etc .Understand the purpose of estimating and the common techniques used to price construction work .Be able to calculate all-in costs of materials, labour and plant, together with unit rates, for a variety of construction work Be able to derive approximate quantities and costs to determine the approximate value of building projects at varying pre-contract development design stages and to understand the limitations on the accuracy that might be achieved Understand the purpose of tendering, the common techniques used and the relevant documentation and explain the factors that can affect the level of tenders.

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CHAPTER-4 REVIEW OF LITERATURE

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THE EXTENSION AND RENOVATION OF EXISTING TERMINAL BULDING AND APRON AT SRINAGAR AIRPORT. Brief Background About the Project. Board of Airports Authority of India had accorded A/A & E/S for Rs.5939.57 Lacs in its 65th meeting for the work of extension and renovation of existing terminal building and Apron at Srinagar Airport, which has been revised to Rs. 10133.77 Lacs in the 111 AAI board meeting held on 3rd July 2007. The brief on the various major packages covered under the project is as below:EXTENSION AND RENOVATION OF EXISTING TERMINAL BUILDING: In view of the growth potential of Air traffic and cargo at Srinagar Airport, Airports Authority of India decided to take up the Expansion and Modification of existing terminal building. The expansion was planned to cater to the increased number of the Air lines operating at Srinagar Airport. Srinagar has a vast traffic and cargo potential and existing infrastructure at Airport was not adequate to cater to the rapidly increasing aviation demand at the Airport.

CONSTRUCTION OF ADDITIONAL TAXI TRACK AND EXPANSION AND STRENGTHENING OF EXISTING APRON AT SRINAGAR AIRPORT: Besides the expansion of terminal bui1ding, Airports Authority of India a has also planned additional parking bays to accommodate wide bodied jet aircraft and parking bays suitable for international chartered flights. As per the approved plan the existing Apron and Taxi track having a total area of 13045 sqm is to be increased to 71500 sqm with one additional Taxi track. This was to be taken up in two phases. In phase-I the Apron size was to be increased to 31036 Sqm. which has been completed under this A/A & E/S. In phase-Il Apron size is to be increased to 71500 sqm including the provision of one additional taxi track for which work has been awarded. Agency is mobilizing men & machinery to start the work. After the expansion, Apron will be capable of accommodating 5 Nos A321-200, 2 Nos. B767-400 ER and 2 Nos. B777-200 type of Aircrafts.

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LAND ACQUISITION FROM IAF SRINAGAR: In view of expansion of terminal building and Apron AAI required extra land from IAF Srinagar to in house some facilities like cargo building and additional car parking for which AA1 had submitted a proposal br acquisition of land to IAF HQ at New Delhi. Subsequently the land measuring to 14.5 acres was identified and IAF Srinagar had constituted board of officers for transfer of land which also included representatives from AAI and defense estate office. Now the transfer of land is in progress and it has been conveyed that Air HQ has agreed for transfer of 14.5 Acres of defense land at Srinagar Airport and also permit and also permit AAI to construct additional taxi track linking Civil Apron to 13 Dumb-bell. Lately working permission in 14.50 Acres of Land has also been given by AF Srinagar. MOU TO BE SIGNED BETWEEN AAI HQ AND AIR HQ FOR FINAL TRANSFER OF LAND. Design and Scope: Design for Apron Extension has been adopted as below: Civil Works Proposed extension of apron: For new area P.Q.C - 520 mm Overlay P.Q.C - 330mm 400 micron thick polythene sheet W.M.M. 300mm Existing P.C.C - 100mm W.M.M - 360mm Compacted sub-grade Compacted sub-grade For Old Apron P.Q.C - 360mm

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Apron Shoulder: It is proposed to have 10.5m wide shoulder around proposed Apron with following detail P.Q.C - 250 mm 400 micron thick polythene sheet Compacted sub-grade G.S.E. AREA: As per latest ultimate plan No. SR/MP/003/R04/Ground supporting equipment area shown in the enclosed sketch in pink colour. P.Q.C - 250 mm 400 micron thick polythene sheet W.M.M. 300mm Compacted sub-grade 4. RCC box type drain/ Culvert/ Service has been proposed having internal dimensions 900mm wide and average depth of 2 metre varying from 1.00 metre to 3.00 metre having RCC raft wall and slab. Also having the provision of manhole cover and grating at every 30.00 metre interval. Specifications: As per CPWD Specification with upto date correction slips. Cost: The estimated cost includes the following: 229013101.31 19237100.51 248250201.82 Add for Electrical work. Total cost of Civil & Electrical Add 5% for work in operation on Rs.263377767.82 Add 5% for work in disturbed area on Rs. 263377767.82 Total cost of work Add contingencies @3% on Rs.289715544.60 Estimated Total cost of Work i/c contingencies. 15127566.00 263377767.82 13168888.39 13168888.39 28971544.60 8691466.34 298407010.94 Say 2984.10 Lacs

Total cost of Civil Work: Add 8.4% W.C.T on Rs. 229013101.31

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Time Land Method T&P.

7 Months Land Available By Call of Tenders To be arranged by Contractor

TENDERING, BID EVALUATION, NEGOTIATION AND CONTRACT AWARD PROCESS OF APRON UPGRADATION AT SRINAGAR INTERNATIONAL AIRPORT AIRPORTS AUTHORITY OF INDIA NOTICE INVITING TENDER

1. Sealed item rate tenders are invited on behalf of the Airports Authority of India for the work as mentioned at serial no 1 in schedule E. The estimated cost of the work is mentioned at serial no 2 in schedule E. This estimate, however, is given merely as rough guide. 2. The tenders shall be in the prescribed Form. 3. The works are required to he completed within the period as mentioned at serial No.3 in Schedule E. This period shall he reckoned from the tenth day after the date on which the eingneer-in Charge issues written orders to commence the work, in accordance with the phasing. if any, indicated by AAI in the Tender documents. 4. Normally contractors whose names are borne on the approved List of contractors of MES/CPWD/State or PWD or Railways orPSU Govt.undertakings and within whose financial category the estimated amount falls will be permitted to Tender. Not more than one Tender shall be submitted by a contractor or by a irm of contractors 5. Tenderer is required to placed cellophane tape on the quoted rates wherein correction/insertion/overwriting made, discountoffered by tenderer and total amount before submission of tender document. 6. All rates shall be quoted on the Tender form 7. In the case of item rate Tenders only rates quoted shall be sidered. Any Tender containing percentage below/above the rates quoted is liable to be rejected. 8. On acceptance of Tender earnest money will be treated as part of the security deposit.

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MODE OF SUBMISSION OF TENDERS: TENDERING IN TWO SEALED COVERS Tender for the present work shall be submitted in sealed cover super-scribing TENDER- DO NOT OPEN and Name of work for which, the Tender is sold. This cover shall contain two separately sealed covers super-scribed as below: 31.1 Cover No.1 Shall Contain: - Earnest money deposit as per clause 17 of this NIT. Unconditional acceptance of AA1s Tender Conditioqs in its entirely. This acceptance letter. in the proforma as per Annexure-1 at page PR-i shall be submitted in this sealed cover alongwith other documents as mentioned above. 31.2 Cover No.2 Shall contain the following: Balance Tender Documents issued by AAI, duly signed and stamped on eachpage by the Tenderer. All proformas forming part of the Tender documents shall he filled in, signed and stamped by the Tenderer.Schedule of Quantities with rates duly filled in figures and words and amount worked out in figures on each page signed and stamped by the Tenderer. Rebate if any is to mentioned only on BOQ pages. Tender Drawings each signed and stamped by the Tenderer. Note: Cover No.2 shall contain only the above documents, and no other conditions. Cutting or overwriting if any must be signed and stamped by the person signing the Tender.

At the stipulated time of opening CoverNo.l shall be opened first. The offers from those Tenderers who are unable to submit the documents listed at clause 31.1 will be rejected and Cover No.2 containing the Tender quotations of such Tenderers shall not he opened. Once the Tenderer has given unconditional acceptance to AA1s Tender conditions in its entirety, he is not permitted to put any remark(s)/condition(s) except unconditional rebate on quoted rates, if any in/alongwith Tender enclosed in Cover No.2. All rates shall be quoted at the proper form of Tender alone. In case the condition 3l.4 mentioned above is found violated after opening Cover No.2 the Tender shall be summarily rejected and AAI shall, without prejudice to any other remedy be at liberty to forfeit the full said earnest money absolutely. This notice of Tender shall form part of the contract documents. The successful Tenderer/contractor, on acceptance of his Tender by the Accepting Authority, shall within 1 0-days from the stipulated date of start of the work sign The contract consisting of Notice inviting Tenders, General conditions of contract, special/additional condition, General and

29

particular specifications, Tender conditions as issued at the time of invitation of Tender and acceptance thereof with any correspondence leading there to. PERFORMANCE GUARANTEE Within 30 days of issue of work order, the contractor shall submit to AAI a Performance Guarantee in the form of BG/DDIFDR( in the Performa appended at Annexure-4 on PR8-9 from scheduled hank but not from any cooperative I Gramin bank) equivalent to 5% of the contract value for due and proper execution of the contract. The Performance Guarantee shall be released after issue of completion certificate from the competent authority. In case agency fails to deposit performance guarantee within stipulated period, interest @ 18% on performance guarantee amount will be levieJ for delayed period of submission. PURCHASE PREFERENCE TO PUBLIC ENTERPRISES The Accepting Authority reserves to himself the right to allow to the public entries purchase preference facilities as admissible under the existing policy on the date of opening of tender. The AAI reserves the right to ask for submission of sample in respect of material for which the teriderer has quoted his rates before the tender can be considered for acceptance. If the tenderer who is called upon to do so does not submit samples within 7 (Seven) days of vvTitten order to do so, AAI shall be at liberty to forfeit 50% of the said earnest money absolutely.

30

Submission of Bank Guarantee The agency shall advise the branch of the bank issuing bank guarantee to send the original Bank guarantee directly to the Airports Authority of India (AAI) under Registered Post (A.D). However, in exceptional cases [as in case of EMD], where the guarantee is to be handed over directly to the AAI for any genuine reasons, the branch shall immediately send by Registered Post (A.D) an unstamped duplicate copy of the guarantee directly to the AAI with a covering letter with request to compare the same with the original received from their customer and confirm that it is in order. The A.D card shall be kept with the loan papers of the relevant guarantee. The agency shall also advise the issuing bank branch that whenever any letter is issued by AAI to the concerned Bank Branch, for confirmation of having issued the guarantee, Branches must send the confirmation letter to the concerned authorities promptly without fail.

For and on behalf of Airport Authority of India Signature: Designation: Date:

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AIRPORTS AUTHORITY OF INDIA TENDER FORM SEALED ITEM RATE TENDER FOR PROVISION OF ADDITIONAL TAXI TRACK AND EXPANSION OF APRON PHASE-TI INCLUDING STRENGTHENING OF EXISTING APRON AND TAXI TRACK AT SRINAGAR AIRPORT To be submitted by 1500 hours on 25.04.2008 to Sr. Manager Engg (C)-1II, Airports Authority of India. Rajiv Gandhi Bhavan Safdarjung Airport, New Delhi-i 10003. Tenders shall be opened in presence of Tenderers who may be present, at 1530 hours on 25.04.2008 in the office of Sr. Manager Engg (C)-III, Airports Authority of India, Rajiv Gandhi Bhavan. Safdarjung Airport, New Delhi-I 10003. Issued to ________________________ (Contractor)

Signature of Officer issuing the documents_______________________ Designation________________________________________________ Date______________________________________________________

TENDER To The Airports Authority of India I/We have read and examined the following documents relating to the work of Provision of additional Taxi Track and expansion of Apron Phase-IT including strengthening of existing Apron and Taxi Track at Srinagar Airport (a) Notice inviting Tender. (h) Schedule A. B. C. D and E. (c) General Conditions of Contract including Contractors Labour Regulations, Model Rules for Labour Welfare and Safety Code and forms of different deeds appended to these conditions: (d) Special Conditions, (e) Technical Specifications.

32

(d) Particular Specifications. (g) Drawings. (h) Schedule of Rates/Quantities.

I/We hereby Tender for execution of the work referred to in the aforesaid documents upon the terms & conditions contained, or referred to therein and in accordance in all respects with the specifications, deigns, drawings and other relevant details at the rates contained in Schedule A and within the period (s) of completion as stipulated at serial No.3 in Schedule E. In consideration of I/We being invited to tender and promised by AAO to consider the award of work if/We are found to be the lowest responsive bidder as stipulated.in the conditions of contract, I/We agree to keep the Tender open for acceptance for ninety days from the due date of submission thereof and not to make any modifications in its terms and conditions which are not acceptable to AAI. A sum of Rs. as mentioned at serial No.11 in Schedule E is hereby forwarded in the form of Demand Draft is in favour of AAI as earnest money. If I/We fail to keep the Tender open as aforesaid or make any modifications in the terms and conditions of the Tender which are not acceptable to AAJ. We agree that AAI shall, without prejudice to any other right or remedy, be at liberty to forfeit the fully said earnest money absolutely and I/We shall n2t be considered as unsuccessful Tenderer for the purpose of return of earnest money as provided in the Notice Inviting Tender. Should this Tender be accepted, I/We hereby agree to abide by and fulfill all the terms, conditions and provisions of the aforesaid documents. If, after the Tender accepted, I/We fail to commence the execution of the Works as provided in the Conditions, 1/We agree that AAI shall without prejudice to any other right or remedy, be at liberty to forfeit the said earnest money absolutely and take suitable actions against me/us as deemed fit under the terms and conditions of the contract. 1/We agree that should AM decide to forfeit earnest money as aforesaid, unless a sum equal to the earnest money mentioned above is paid by me/us forthwith, AAI may at its option recover out of the deposit and in the event of deficiency, out of any other moneys due to me/us or otherwise. If the Tender is accepted. I/We agree that the earnest money deposited at the time of Tender shall be treated as part of security deposit and the balance security deposit shall be paid by ic/us or AAI shall collect the same by deductions from my/our running bills as per conditions if contract. Signature in the capacity of _________________

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Witness________________

Duly authorized to sign the tender on behalf of The (in block capitals) Date:_____________

Date____________________

Address___________________ Postal address Date ____________________ Telegraphic address _____________________ Telephone No.___________________________

34

SCHEDULE E REFERENCE TO CONDITIONS OF CONTRACT Reference Description Applicable to this Contract

Condition No. 1 NIT:1

Page No.

2 NIT:1

3 Name of Work

4 Provision of additional Taxi Track and expansion of Apron Phase-II i/c strengthening of existing Apron and Taxi Track at Srinagar Airport Rs.2433.98 lacs

NIT:1

NIT:1

Estimated Cost

NIT:

NIT:1

Time allowed for execution of 12 Months work

Gen: 13 NIT:5

GCC-10 NIT:1 Accepting Authority Chairman AAI

GCC 3(b) NIT:6

GCC-1 NIT:1 Last date application of receipt of 10.03.2008

NIT:8

NIT:1

Cost of tender document

Rs.2500/-

NIT:8

NIT:1

Period of documents

sale

of

tender 04.04.2008

35

NIT:9

NIT:1

Office where drawings etc. are Sr. Manager Eng. (C) (SO) - Ill, available for inspection and Airports Authority of India, CHQ, where tenders are to be R.G. Bhawan, Safdarjung Airport, submitted New Delhi 110003

NIT:16

NIT:2

Last date and time of receipt of Date 25.04.2008 upto 15:00 hours tender documents

NIT:16

NIT:2

Date and time of opening of Date 25.04.2008 at 15:30 hours tenders

NIT:17

NIT:3

Earnest money

Total Rs. 48,67,960/- only in the form of DD/FDR/Bank Guarantee from any Scheduled Bank of India preferably Nationalized bank but not from any cooperative bank/Gramin Bank in favour of Airports Authority of India. Shall be dedutted @ 10% from RA Bills till it reaches 5 % of accepted contract value of work. Security deposit shall be acceptable in the form of BG issued by schedule bank(but not from any cooperative bank/Gramin Bank) if the amount of security deposit is more than 5 lacs

NIT:20

NIT:3

Security Deposit

Gen 9(a)

GCC-5

NIT:21

NIT:4

Certifying Authority to return Sr. Manager Engg.(C) Earnest money.

Gen: 3 (i)

GCC-2

Market rate percentage 10.00 percent addition to cover overheads and profit.

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Gen: (iii)

10.1 G.C-6 GCC-34

Rates applicable

Gen:53 (b)l

CPWD, DSR-2002 + 114.60% for Civil works and Market rate for Electrical works

Gen: (iii)

10.1 GCC-6

Percentage adjustment to the N.A rates in the Schedule of Rates, for pricing deviations (Applicable to lumpsum contracts based on Drawings and Specifications)

Deviation limit for items of work other than those below ground surface: -,

Gen: 10.1 GCC-7 (vi) (A)(a)

Permissible deviation limit for 30% (Thirty percent)of contract any contract item, substituted value of respective item item or contract-cumsubstituted item in excess of the original value of item (Applicable to Lumpsum Contracts,

Gen: 10.1 GCC-7 (vi) (A)(b)

Permissible deviation limit for an individual trade item (Applicable to Lumpsum Contracts only)

N.A

Gen: 10.1(vi) A(c)

GCC-8

Permissible deviation limit for 30% of contract value items of work not already included in the contract.

37

Deviation limit for item of work 100% of contract value of respective below ground surface:item

Gen: 10,1(vi) (B)(a)

GCC-8

Permissible deviation limit for an individual trade item.

Suspension of work :-

Gen: 12(b) GCC-9 (ii)

Percentage payable to cover NA contractors indirect expenses for suspension exceeding thirty days and not exceeding 3 months. Percentage payable to cover NA contractors indirect expenses for suspension exceeding 3 months. Authority competent to decide Member (P), AA1 if any other cause of delay is beyond contractors control. Authority competent to grant Member (P), AAI extension of time. Distribution return of number Fortnightly and description by trades of workmen employed on works to be submitted to Engineer-incharge. Authority competent to reduce Chairman, AAI compensation amount

Gen.: 12(c)

GCC-9

Gen: 13.2

GCC-9

Gen: 13.4

GCC-10

Gen: 16.1

GCC-14

Gen: 32

GCC-20

Gen: 33

GCC-21

Defects Liability period

12 Months

38

Gen: 51

GCC-30

Interval of interim bills

Monthly

Gen: 53.1(3)

GCC-35

Predetermined components of Deleted material labour and POL Material Labour POL

Gen 54(b) Gen : 57

GCC-38 GCC - 41

Interest per anum on lumpsum Authority arbitrator for

10.00 percent

appointing Member (Pig.), AAI

NIT 33

NIT- 6 V

Performance Guarantee

5% of accepted tender cost

GCC : 53.1A

GCC - 33

For reimbursement of variation in price, the base price of cement, steel and bitumen shall be as below :-

i) Base Price of Cement of 43 grade : Rs. 5880/- per tonne ii)Base price of steel of Fe415 grade : NA iii) Base price at the refinery delivery point a) Packed bitumen of 60/70 grade : NA b) Packed bitumen of 80/100 grade : NA GCC (vii) 10.1 GCC 8 Over all deviation limit of the 30% of contract value contract

(Signature of issuing Officer) Date:_________________

(Signature of contractor) Date:________________

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Corrigendum Srinagar Apron PH-II NOTICE INVITING APPLICATION FOR SHORT LISTING OF CONTRACTORS CORRIGENDUM 1: Applications for short-Listing are invited by Sr. Manager, Engg.(C) (SG)-lll, Airports Authority of India, Rajiv Gandhi, Bhawan, Safdarjung Airport, New Delhi-110003 Ph No: 24632950 Extn: 2519 on bha.If of Chairman, A.A1. from the eligible contractors for the work of Provision of additional Taxi Track and expansion of Apron Phase-Il including strengthening of existing Apron and Taxi Track at Srinagar Airport at an estimated cost of R. 2396.36lakhs with period of completion 12 (twelve) months. 2. Qualifying requirements of contractors/firms. i) should be registered in appropriate class of CPWD/MES/P&T! Railways/State PWD /PSUs and have valid Permanent Account Number (PAN). ii) The firm should fulfill the following works [all the three (a). (b) & (c)] criteria: a) Should have satisfactorily completed (Phase/Part completion of the scope of. WQ in a contract shall not be Considered.) three works, each 01 Rs. 958,54 lacs or two works, each of Rs. 1198.18 lacs or one work of Rs. 1917.09 lacs in single contract of pavement works of Airfield Pavement or National Highways/Expressways (experience in state highways/city roads/town roads etc. will not be considered) during last seven years ending on last day of month previous to the one in which applications are invited. Client certificate for experience should show the nature of work done, the value of work, date bf start, date of completion as per agreement, actual date of completion and satisfactory completion of work. Firms showing work experience certificate from non- Government/Non PSU organization should submit copy of Tax Deduction on Source certificate in support of their claim for having executed stipulated value of works. b) Should have executed minimum 10284 cum of pavement quality concrete work in maximum three works in last seven years. iii) The performance of the agency o the partner of Joint venture and consortium, who are working in AAI shall be reviewed and application of the agency whose performance is not satisfactory is liable to be rejected. iv) Should have annualized average annual financial turnover of Rs. 718.9llacs against works executed during last three years ending 31st March of the previous financial year. As a proof, copy of Abridged Balance Sheet alongwith Profit and Loss Account of the firm should be submitted alongwith the application. v) Should possess minimum 1No: Concrete Batching & Mixing Plant of 30-cum/hour capacity. As a proof, copy of Invoices for Equipment should be submitted along with the application.

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3. Application from Joint Venture Company duly registered/Consortium of firms/ Companies shall be considered subject to following conditions; - .i) Consortium of firms should not comprise of more than two firms. ii) Joint Venture Firm as a single unit or each member of the consortium should be registered in appropriate class with the authorities mentioned in Para 2C) and have valid Permanent Account Number (PAN). iii) A detailed and valid agreement exists between the consortium members defining clearly the role, responsibility and scope of work of each member alongwith nomination of leader for the purpose of this work commensuration with their experiences and capabilities and a confirmation that the member of the consortium assume joint and severs responsibilities. iv) The leader of the Consortium of firm shall meet the 80% of the qualification criteria as defined ii Para- 2 above and shall accept overall responsibility of contract obligations for the total scope of work during execution and or to defects liability period v) Both the consortium firms should jointly possess the required T&P Machineries and Manpower and should produce self attested documentary proof o owning and possessing required machinery. vi) In addition to 3(i) to 3(iv) above, qualification criteria defined in Para 2 shall be met fully jointly by both the members of Consortium or as a single unit of Joint venture. vii) No single firm shall be permitted to submit two separate applications as individual as well as in joint venture consortium or under two different joint venture firms consortium, 4. The tenderer shall submit their applications alongwith firms bio-data (as per format enclosed as Annexure-l) and self-attested documents in support of their meeting each criteria mentioned above by 10.03.08. AAl reserves the right to accept or reject any or all applications without assigning any reasons, AAI reserves the right to call of process of short-sting of contrctor at any stage without assigning any reason.

5. Purchase Preference to Central Public Sector Undertaking shall be applicable as per the Directives of Govt. of India prevalent on the date of acceptance. Annexure- I Name of work: Provision of additional Taxi Track and expansion of Apron Phase-Il including strengthening of existing Apron and Taxi Track t Srinagar Airport. CHECK LIST FORMAT TO BE SUBMITTED BY APPLICANTS ALONG WITH TENDER APPLICATION S.No. NIT Parameter Particulars of

41

firm/contractor Name and address of the firm/Contractor Self attested copy of PAN no of the firm (Documents enclosed herewith at appendix .)

Self attested copy of Contractors registration in appropriate class with CPWD/MES/P&T/ Railways/State (Documents enclosed PWD /PSUs as per NIT requirement herewith at appendix .) Self attested copy of work experience as per NIT requirement satisfactorily completed three works, each of Rs. 958.54 lacs or two works, each of Rs. 1198.18 lacs or one work of Rs. 1917.09 lacs in single contract of pavement works of Airfield Pavement or National Highways/Expressways (Experience in state highways/city roads/town roads etc. will not be considered) during last seven years ending last day of month previous to the one in which applications are invited. (Documents enclosed herewith at appendix .)

Self attested copy of executed minimum 10284 cum of pavement quality concrete work in maximum three (Documents enclosed works in It seven years. herewith at appendix .) Self attested Copies of Client certificate for experience should show the nature of work done, the value of work, date of start, date of completion as per agreement, actual date of completion and satisfactory completion of work. Self-attested copy of TDS certificates certified nonGovernment/Non PSU organization should be submitted for the work executed for non- Government/Non PSU organization commensurate with the amount of work completed (each work should have separate TDS index sheet on top of TDS certificates). (Documents enclosed herewith at appendix .)

(Documents enclosed herewith at appendix .)

42

Self attested copy of annualized average annual financial turnover of Rs. 718.91 lacs against works, executed during last three years ending 31st March of the previous financial year.

(Documents enclosed herewith at appendix .)

Self attested copies of last three years Abridged Balance Sheet along with profit & loss account of the firm. (Documents enclosed herewith at appendix .) Should have qualified Engineers and minimum 1No. Concrete Batching & Mixing Plant of 30-cum/hour (Documents enclosed capacity. As a proof, self attested copy of Invoices for herewith at appendix .) Equipment should be submitted alongwith the application.

Details of any other information.

(Documents enclosed herewith at appendix .)

Place Date: SGNATURE WITH STAMP (Authorized signatory of the Firm/ contractor)

43

AIRPORTS AUTHORITY OF INDIA GENERAL CONDITIONS OF CONTRACT INTERPRETATION AND DEFINITION Singular & Plural: 1. Where the context so requires, words importing the singular only also include the plural and vice-versa. Headings and Marginal Notes to Conditions: 2. Headings and marginal notes to these General Conditions shall not be deemed to form part thereof or be taken into consideration in the interpretation or construction thereof or of the contract. The word AAI shall e read as AIRPORTS AUTHORITY OF INDIA.definitions: 3. (a) Authority of AAI shall mean Airports Authority of India having its headquarters at New Delhi and includes a duly authorised representative of AAI or any other person empowered in this behalf by AM to discharge all or any of its functions. The Accepting Authority shall mean the Officer mentioned at serial No.4 in schedule E. The Contract shall mean the notice inviting the tender, the tender and acceptance hereof and the formal agreement, if any, executed between AAI and. the Contractor together ith the documents rectified to therein including these Conditions with appendices and any pedal Conditions, the specifications. Designs, drawings, schedule of quantities with rates and imounts and schedule of rates. All these documents taken together shall be deemed to form ne Contract and shall be complementary to one another. 1) The Contractor shall mean the individual or firm or company whether incorporated or ot, undertaking the works and shall include legal representative of such individual or persons composing such firm or incorporated company, or successors of such firm or company as the ase may be and permitted assigns of such individual or firm or company. The Contract Sum shall mean: . (i) ii the case f Lump Sum Contracts tl sum for which the tender is accepted; (ii) in the case of Percentage Rate Contracts the estimated value of the Works as mentioned in the tender adjusted by the Contractors percentage; (iii) in the case of Item Rate Contracts the cost of the Works arrived at after extension of the quantities shown in Schedule of Quantities by the item rates quoted by the tenderer for the various item

SCOPE AND PERFORMANCE Contract Documents:

44

The Contractor shall be furnished, free of charge, on request, two certified true copies the Contract Documents except standard specifications and the schedule or rates. All further drawing which may be issued during the progress of the works shall also be provided free of :ost. He shall keep one copy of the documents, on the Site in good order, and the same shall at reasonable times he available for inspection and use by the Engineer-in-Charge, his representatives or by other Inspecting Officers. None of these Documents shall be used by the Contractor for any purpose other than hat of this Contract. The contractor shall take necessary steps to ensure that all persons employed on any york fl Connection with this contract have noticed that the Indian Official Secrets Act 1923 XIX of 1923) applies to them and shall continue to apply even after the execution of such vorks under the Contract.

Work to be carried out: The work to be carried out under the Contract shall, except as otherwise provided in iese conditions, include all labour, materials, tools, plant, equipment and transport which may required in preparation of that and for and in the full and entire execution and completion of Works. The descriptions given in the Schedule of Quantities shall, unless otherwise stated, held to include waste on matrials. carriage and cartage, carrying in return of empties, oisting, setting, fitting and fixing inpositio and all other lahours necessary in and for the full nd entire execution and completion as aforesaid in accordance with good practice and recognized principles. Inspection of Site: The Contractor shall inspect and examine the Site and its Surroundings and shall satisfy mself before submitting his tender as to the nature of the ground and subsoil (so far as is acticable), the form and nature of the Site, the quantities and nature of work and materials ecessary for the completion of the Works and the means of access to the Site, the beommodation he may require and in general shall himself obtain all necessary information as risks, contingencies and other circumstances which may influence or affect his tender. No tra charges consequent on any misunderstanding or otherwise shall be allowed. Sufficiency of Tender The Contractor shall be deemed to have satisfied himself before tendering as to the rrectness and sufficiency of his tender for the orks and of the rates and prices quoted in the chedule of Quantities. which rates and prices shall, except as otherwise provided, cover alrhis ibligations

45

under the Contract and all matt iadthings necessary for the proper completion nd maintenance of the Works, Discrepancies and Adjustment of Errors 8. The several documents forming the, Contract are to be taken as mutually explanatory of one another, detailed drawing being followed in preference to small scale drawing and figured dimensions in preference to scale and Special Conditions in preference to General Conditions. 8.1 In the case of discrepancies between Schedule of Quantities, the Specifications and/or the Drawings, the following order of preference shall be observed. (b) Particular Specification and Special Conditions if any. (a) Description in Schedule of Quantities. (c) Drawings (d) General Specifications. 9. Security Deposit. The contractor shall permit AAI at the time of making any payment to work done under the contract to.deduct towards security deposit such sums as will along with the amount to Earnest money already deposited arount to 10% of the gross amount of the bill till the sums so deducted amount to the figure shown at serial No. 12 in schedule E unless he has already deposited the amount of the security as mentioned at serial No. 12 in schedule F in cash or in the form Govt. securities on fixed deposit receipt or Bank Guarantee furnished by any of the Schedule bank, but not any cooperative bank/Gramin hank under the revised Bank Guarantee scheme of Reserve Bank of India. (a) Provided that the security deposit reaches a limit of Rs. 5 Lac the contractor if he so desires may convert the amount into one of the Govt. securities as Bank Guarantee as aforesaid (as per 1roforma appended at Annexure-2 at page PR 2-4). (b) Provided that if at the time of payment of the final bill, the deduction made together with the earnest money already deposited, fall short of the security deposit mentioned at serial No. 12 in schedule E the recovery of the balance amount of security deposit shall be deemed to have been waived. VALUATION AND PAYMENT Records and Measurement:

46

49. The Engineer-in-Charge shall, except as otherwise stated, ascertain and determine by measurement the value in accordance with the Contract of work done in accordance therewith. 49.1 All items having a financial value shall be entered in Measurement Book, level book, etc. prescribed by AAI so that a complete record is obtained of all work performed under the Contract. 49.2 Measurements shall be taken jointly be the Engineer-in-Charge or his authorised representative and by the Contractor or his authorised representative. 49.3 Before taking measurements of any work, the Engineer-in-charge or the person deputed by him for the purpose shall give a reasonable notice to the Contractor. If the Contractor fails to attend or sent an authorized representative for measurements after such a notice or fails to countersign orto record the objection within a week from the date of measurements. then in any such event measurement taken by the Engineer-in- Charge or by the person deputed by him shall be taken to be correct measurements of the work. 49.4 The contractor shall, without extra charge, provide assistance with every appliance, labour and other things necessary for measurement. 49.5 Measurements shall be signed and dated by both parties each day on the Site on completion of measurement. If the contractor objects to any of the measurements recorded on behalf of AAI a note to that effect shall be made in the Measurement Book against the item objected to and such note shall be signed and dated by both parties engaged in taking the measurement Methods of Measurements: 50. Except where any general or detailed description of the work in Quantities expressly shows to the contrary. Schedule of Quantities shall be deemed to have been prepared and measurements shall be taken in accordance with the, procedure set forth in the Schedule of Rates/Specifications not withstanding any provisions in the relevant Standard Method df Measurement or any general or local custom. In the case of items which are not covered by the Schedule of Rates/Specification, measurements shall be taken in accordance with the relevant Standard Method of Measurement issued by the Buero of Indian Standard. Payment on Account: Interim bills shall be submitted by the Contractor at intervals mentioned at serial No. 28 in Schedule E on or before the date fixed by the Engineer-in-Charge for the work executed. The Engineer-in-Charge shall then arrange to have the bill verified by taking or causing to be taken where necessary, the requisite measurements of the work.

47

51.1 Payment on account for amount dmissib1e shall be made on the Engineer-in-Charge certifying the sum to which the Contractor is considered entitled by way of interim payment for the following: (a) All work executed, after deducting there from the amounts already paid, the security deposit and such other amounts as may be deductible or recoverable in terms of the Contract.

48

Secured advance on materials: (b) (i) The contractor, on signing an indenture in the form to be specified by the Engineer-in Charge, sia1l be entitled tb be paid during the progress of the execution of the work upto 75% of the assessed value of any materials which are in the opinion of the Engineer-in- Charge non-perishable, non-fragile and non-combustible and are in accordance with the contract and which have: been brought on the site in connection therewith and are adequately stored and/or protected against damage by weather or other causes but which have not at the time of advance been incorporated in the works. When materials on account of which an advance has been made under this sub-clause are incorporated in the work the amount of such advance shall be recovered/deducted from the next payment made under any of the clause or clauses of this contract. Such secured advance shall also be payable on other items of perishable nature, fragile and combustible with the approval of the Engineer-in-Charge provided the contractor provides a comprehensive insurance cover for the full cost of such materials. The decision of the Engineer-in-Charge shall be final and binding on the contractor in this matter. No secured advance, shall however, be paid an high-risk materials such as ordinary glass, sand, petrol, diesel etc. (ii) For Cement & Bitumen, the contractor shall be entitled to be paid upto 75% of the assessed value of the material as assessed by the Engineer-in-Charge and on submission of comprehensive insurance cover for the full cost of such material.

(c) Whenever there is likely to delay in recording detailed measurement for making a running payments in case of residential building advance payments without detailed measurements for work done (other than foundation and finishing items) upto (a) lintel level (including sun shades etc.) and (b) slab level, for each floor worked out at 75% of the tendered rates may be made in running account bills by the Engineer-in-charge at his discretion on the basis of a certificate from the Manager Engg (C)/Asst. Manager Engg (C) to the effect that the works has been completed upto the level in question. The advance payments so allowed shall be adjusted in the subsequent running bill by taking detailed measurements thereof. Final payment shall be made only on the running basis of detailed measurements. 5l.2 The advance payments under (b) above shall be adjusted as and when materials are utilised in the Works. 5l.3 The amount admissible for interim bills shall be normally paid within a month from the date of receipt of the bill by the Engineer-in-Charge after such verification as is considered necessary.

49

51.4 Any interim certificate given relating to work done or materials delivered, may be modified or corrected by any subsequent interim certificate or by the final certificate. No certificate of the Engineer-in-Charge supporting an interim payment shall of itself be conclusive evidence that any work or materials to which it relates is/are in accordance with the contract. 51.5 Pending consideration of extension of date of completion interim payments shall continue to be made as interim provided. Time Limit for Payment of Final Bill: 52. The final bill shall be submitted by the Contractor within three months of physical completion of theVorks. No further claims shall be made by the Contractor after submission of the final ,bill and these shall be deemed to have been waived and extinguished Payment of those items of the bill in respect of which there is no dispte and of items in dispute. for quantities and at rates as approved by Engineer-in-Charge, shall be made within the period specified hereunder, the period being reckoned from the date of receipt of the bill by the Engineer-in-Charge: (a) Contract amount not exceeding Rs. 5 lacs (b) Contract amount exceeding Rs. 5 lacs Four months. Six months.

52.2. After payment of the amount of the final bill payable as aforesaid has been made, the Contractor may. if he so desired, reconsider his position in respect of the disputed portion of the final bill and if he fails to do so within 90 days, his disputed claim shall be dealt with as provided in the Contract. SPECIAL CONDITIONS OF CONTRACT 1. GENERAL

1.1 Special conditions of Contract shall be read in conjunction with General Conditions of Contract, Technical Specifications, Drawings and any other documents forming part of this contract wherever the context so requires. 1 .2 Notwithstanding the sub-division of the documents into these separate sections and volume every part of each shall be deemed to be supplementary to and complementary of every other part and shall be read with and into the CONTRACT so far as it may be practicable to do so. 1.3 Where any portion of the General Condition of Contract is repugnant to or at variance with any provisions of the Special Conditions of Contract, unless a different intention appears, the provisions of the Special Conditions of Contract shall be deemed to over-ride the 50

provisions of the General Conditions of Contract and shall to the extent of such repugnancy or variations, prevail, 2 COMPLETION SCHEDULE

2.1 The works shall be executed strictly as per time schedule mentioned in NIT, The period of completion given includes the time required for moblization as well as testing, rectifications, if any, re-testing and completion in all respects to the entire satisfaction of Engineer-in- Charge. The bar chart showing the time period for execution of main activities is enclosed with the tender at page SCC-19. The start of activities shall not be delayed beyond the date of start shown in the bar chart and so, the agency has to mobilize all resources accordingly. 2.2 The contractor shall furnish within 3u days of letter of award CPM network chart showing the mile stone and critical path for completion of work within the stipulated time and as per conditions of the contract and based on the bar chart mentioned above. The programme should clearly include Manpower. Material and Machinery resources proposed to be deployed for achieving the targeted progress, justification for same based on machinery output, the date from which each machinery shall be available at site in working condition etc. complete. The programme shall be subject to the approval of engineer-in-Charge who may order changes in the programme. The decision of Engineer-in-Charge shall be final and binding in this regard. 2.3 Contractor is expected to mobilize and employ sufficient resources as indicated in the agreed NET- WORK programme to achieve the progress within the broad frame work of accepted methods of working and safety. No additional payment shall be made to the contractor for any multiple shift work or other incentive methods contemplated by him in his work schedule even though the time schedule is approved by the Engineer-in-Charge. 2.4 Durinng the currency of the work the contractor is expected to adhere to the time schedule on mile stone and total completion and this adherence will be a part of Contractors performance under the contract. 2.5 The Contractor shall be fully responsible to submit Milestone Chart in consultation with Engineer-in-Charge to complete the work within stipulated time.

51

2.6

For Monitoring of Project

26.1 The contractor shall submit the programme Network based on Critical Path Method using precedence Diagram method to complete the work with in stipulated time schedule. 16.2 The agency shall submit month wise details of manpower and machinery to be deployed in project alongwith material procurement schedule for completion of work with in stipulated period based on programme Networking, The progress will be reviewed monthly with respect to the, programme/Net Work chart submitted by agency. Two copies of proposed network chart showing activities completed and backlog if any, should be submitted to the Engineer-in-Charge on fortnightly basis. The revised CPM chart with additional manpower/machinery/labour deployment scheduled should also be submitted in case regular backlog is observed and revised programme is essential to complete the work with in stipulated period. 16.3 The approval to the revised schedule resulting in a completion date beyond the stipulated date of completion shall not automatically amount to grant of extension of time to the Contractor.

2.6.4 Contractor shall submit fortnightly progress reports (5 copies) highlighting status of various activities and physical completion of work. 2.7 Contractor shall give every day repo on category wise labour and equipment deployed along with the progress of work done on previous day in the proforma prescribed by the Engineer-in-Charge. 3 DRAWINGS AND DOCUMENTS

3.1 The drawings accompanying the tender document are of indicative nature and issued for tendering purpose with the purpose to enable the tenderer to make an offer in line with the requirements of the AAI. 3.2 However, no extra claim whatsoever, shall be entertained for variation in the Approved for Construction and Tender drawings regarding any changes. The execution of work shall be as per approved drawings and detailed specifications.

16.1.1 LIST OF MINIMUM MACHINERIES TO BE DEPLOYED BY CONSTRUCTION AGENCY S.No. Machinery/Equipment Description No. Latest day of Remarks deployment of

52

the machineries in working condition from date of issue of work order 1 No. Dozer D-50-A-l5 or 01 equivalent 40th day -

Wet Mix Macadam plant of 01 designated capacity of 120tph or 50cum/hr Vibratory Roller 01

85th day

The contractor may deploy Plant maximum 2 nos. plants to achieve desired capacity -

40th day

Mechanical Hydraulic paver 01 (for WMM)

85th day

Fully computerized Concrete 01 batching plant of designed capacity not less than 120cum/hr Tiers Dumpers 5 Nos.

185th day

The contractor may deploy Plant maximum 2 nos. plants to achieve desired capacity

40th day

NOTE: Apart from the Tools and Plants quantity shown above contractor is required to deploy additional at T&P if required and directed by Engineer-in-Charge to ensure timely completion of work. In the interest of progress of work, if early deployment of any machinery/equipment is desired by Engineer-in-Charge then the contractor shall deploy the same as per the direction of Engineer- in- Charge. For such early deployment no claim whatsoever shall be entertained. In case of delay in handing over of site due to force majeure, Engineer-in-Charge may relax the stipulated date of deployment of machinery accordingly. The decision of Engineer inCharge shall be final and binding in this regard.

53

19.2

CLOSING DAYS WORK

a) The contractor shall provide ramps at his own cost before close of days work as per ICAC standards and as directed by Engineer-in- Charge to facilitate operations. Consolidation will stop two hours before handing over of the runway.

b) The contractor shall ensure that suitable ramps are provided as per the ICAO standards and as directed by Engineer-in-Charge. The contractor shall also ensure that before the close of work daily, the entire surface of the runway, taxiway, and apron is completely free from the loose materials to keep the runway operational. c) After the closure of days work, all equipment and stock piled materials must be so placed that after darkness their tops are below a fifty to one ratio from the ends of the basic strips of the runway and twenty to one from sides of useable aircraft traffic areas and must be marked with red flags by day and red lights by night to indicate that they project above the general contour of the aerodrome. 19.3 Work shall be closed at 2 hrs notice for WIP movement and also other exigencies, if directed by the Engineer-in-Charge. No compensation shall be entertained on this account from the contractor. 20. 20.1 LABOUR CAMPS No labour camps will be allowed in the operational area.

21.

REGULATIONS

21.1 All men and vehicles will observe the regulations in force in the operational area and will do nothing to pose a danger to the aircraft and their operations. All vehicles will fly the mandatory red flag during day light hours and red lights during night while working in operational areas. 22. INSPECTION OF SITE AND TESTING

i) The Engineer-in-Charge or his authorised representative shall have full power to inspect any portion of the work, examine the materials and workmanship at the contractors works or at any other place from where the material is obtained. Acceptance of any material shall in no way relieve the contractor of his responsibility for meeting the requirement of the specifications. 34. ARRANGEMENT TO BE MADE BY THE CONTRACTOR AT SITE.

54

34.1 Necessary registers and stationers required for entering data and test results shall be provided by the contractor at his own cost as directed by the Engineer- in-Charge.

34.2 In addition to the tools and plants and equipments/apparatus and instruments required for laboratory and execution of the work as per Technical Specifications of the NIT, the following additional machineries are to be arranged at site by the contractor at his own cost within one month of stipulated date of start of work during the period of construction until payment of final and tenders rates shalF1hcUdes the same and nothing will be payable for these items.

55

S.NO. i)

DESCRIPTION OF ITEMS

QUANTITY

Suitable new Passenger vehicle for cylinder capacity of minimum 1400 CC (Tata Sumo / Scorpio) or 4W drive hard top jeep, either petrol or diesel driven including driver for taking the samples from work/plant site to laboratory and movement of the officials during progress I No. of work for checking/controlling the quality of work. 1 No. The Engineer-In-Charge will be controlling officer for movement of vehicles

ii)

Pentium Computer with following configuration. To be provided in Engineer-In-Charge office a. 2.8 GHz Processor minimum (Pentium b. Colour Monitor 17 c. 512 MB RAM d 80 GB Hard Disk e. 1 .44 MB Floppy Disk Drive f. 52CDRW g. Optical Mouse h. Key Board i. HP Inkjet Printer (ll20series)A3 size j. HP Scanner (A3 size) 9600 dpi. Operating system Windows-XP, Microsoft Project Professional 2003 or latest version. MS-Office-2000 and any other software as per site requirement. 2 Nos.

iii)

Computer operator To report to Engineer-In-Charge.

Xerox machine with operator V

Fax Machine

56

Digital Camera Minimum 5 mega pixel For proper co-ordination with ATC white working inside operational area and for keeping the airport/ aircraft operations smooth and safe, two sets of walkie-talkie at work sites and another at plant site shall be provided along with chargers

34.3 Necessary diesel/petrol/fuel & lubricants etc. smooth running of vehicles deployed for the work shall be provided his own expenses. In the event of any breakdown of the vehicles deployed for the work, the contractor shall take the prompt remedial measure to put them back in working condition and nothing extra will be paid. To minimize break down period, necessary spare parts shall be kept readily available at site by the contractor at his own expense. 34.4 The agency is entitled to take away all the movable items like equipment, furniture, machinery etc. provided by the agency for the project after completion of the work and release of final bill. 36. The total amount of final bill worked out at the accepted tender rates, if found to be more than the amount worked out at the quoted rates of second lowest, the contractor shall be paid lower of the two

57

CORRESPONDENCE AND ACCPETANCE LETTERS SPEED POST FAX-91-11-26898447 AAI /Srinagar/Apron-I1 /Engg.(C)/1012 DATED:04.04.2008

To M/s Bholasingh Jaiprakash Construction Ltd. D-7/7367, Sector D, Pocket No.7, Vasant Kunj, New Delhi-I 10070 Ph: 26130914, 26138695.

Sub:

Provision of additional Taxi Track and expansion of Apron Phase-Il including strengthening of existing Apron and Taxi Track at Srinagar Airport.

1. With reference to your application for above said work, the tender document is enclosed herewith. You are requested to go through the tender document minutely before quoting your rates.

2. Your attention is drawn to Clause 31 of NIT at Page NIT- 5 of tender document wherein t has been mentioned that each tenderer has to submit his tender in two sealed covers. The Cover No. I shall contain: a) Earnest Money as stipulated at SI. No. 11 of Schedule E at page NIT-18. h) Acceptance of AAIs tender conditions in its entirety iii the performa as per Annexure- I duly signed. 3. The Cover No. 2 shall Contain: The tender document with rates duly filled in figure and words and amount worked out in figures against each item of 130Q and duly signed and stamped on each page by the tenderer. 4. The Cover No. 2 of your tender will be opened only if the cover no. 1 contains documents mentioned at SI. No.2 above.

58

5. Tenderer is required to place cellophane tape on the quoted rates wherein correction/insertion/overwriting made discount offered by tenderer and total amount before submission of tender document. 6. Tender placed in sealed cover with the name of work written on the envelope, will be received h\ the Sr. Manager, Engg. (C)(SG) Ill in his office at Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi upto 15:00 hours on 25.04.2008 and will be opened on the same day at 15:30 hours. 7. This letter must he returned with the complete tender and shall form part of the agreement. 8. Kindly acknowledge the receipt of the document.

Yours faithfully, (Anuparn Verma) S.M. Engg (C)(SG>-Ill Airports Authority of India, Rajiv Gandhi Bhawan New Delhi PH. 011-24632950, Extn. 2519 SPEED POST Fax-91.-1 1-26898447

59

Annex-I TO BE SUBMITTED IN COVER NO.1 ACCEPTANCE LETTER (TO BE SUBMITTED IN COVER NO.1) Refer Clause 31 of Notice Inviting Tender) To The Senior Manager Engg. (C)(SG)-III, Airports Authority of India, Rajiv Gandhi lhavan, Safdarjung Airport. New Delhi-3 Sir, ACCEPTANCE OF AAIS TENDER CONDITIONS 1. The tender documents for the work Provision of additional Taxi Track and expansion of Apron Phase-Il including strengthening of existing Apron and Taxi Track at Srinagar Airport have been sold to rae/us by Airports Authority of India and I/we lerehy certify that 1/we have inspected the site and read the entire terms and conditions of the tender documents made available to me/us in the office of Senior Manager Engg. (C) (SG)-llT, AAI, R.G. I3havan, SAP New Delhi-3. Which shall form part of the contract agreement and I/We shall abide by the conditions/clauses contained therein. 2 I/We hereby/unconditionallu accepts the tender conditions of AAI s tender documents in its entirety for the above ork. 3 The contents of clause 31.4 and 31 . of Notice Inviting Tender of the Tender Documents have been noted wherein it is e clarified that a ftcr unconditionally accepting the tender conditions in its enhirct . Ii is not permissible to put any remarks/conditions (except unconditional rebate on quoted iates if any) in the tender, enclosed in Cover No.2 and the same has been followed in the present case. In case, this provisions of the tender if found violated after opening Cover No.2. I/We. agree that the tender shall be rejected and AM shall without prejudice to any other right or remedy be at liberty to forfeit the full said earnest money absolutely. 4. The required earnest money for this work is enclosed herewith.

60

Yours Faithfully

Date:

(Signature of the tenderer) With rubber stamp

61

BHOLASINGH JAIPRAKASH CONSTRUCTION LTD.

ENGINEERS AND CONTRACTORS

New Delhi-110070 TRUE COPY OF THE RESOLUTION PASSED BY THE DIRECTORS OF COMPANY AT THEIR MEETING HELD ON 04-02-2008 RESOLVED that Shri. R.K. Singh, Director, of the Company is hereby authorized to do executed and perform the acts, matters, and things, on behalf of the Company. 1. To sign all correspondence pertaining to tender work, to sign and submit tender document, Joint Venture, pre-qualification documents etc. to be submitted to Govt., Semi Govt., Public & Private Organization etc. 2. To enter into an agreement with any of the tendering authority on acceptance of the bid submitted. 3. To attend meeting for discussion in connection with tender/contract works, prequalification etc.

4. And generally to do, executed and perform all and every other acts, matters and things whatsoever in any way arising out of and in relation thereto pertaining to tenders, contracts, pre-qualification etc. 5. To delegate the powers to any other person whom so ever he may find suitable.

6. FURTHER RESOLVED that Shri RIP. Singh Managing Director of the Company, be and is hereby authorized to issue and sign true copy of the Resolution TRUE COPY For Bholasingh Jaiprakash Construction Limited

(R.P. Singh) Managing Director

62

BHOLASINGH JAIPRAKASH CONSTRUCTION LTD.

ENGINEERS AND CONTRACTORS

New Delhi-110070

ANNEXURE-I ACCEPTANCE LETTER To Senior Manager Engg. (C)-tH Airport Authority of India, Rajiv Gandhi Bhavan, Safdarjung Airport, New Delhi 110003 Sir, ACCEPTANCE OF AAI S TENDER CONDITIONS 1. The tender documents for the work Provision of additional Taxi Track and expansion of Apron Phase-Il including strengthening of existing Apron and Taxi Track at Srinagar Airport have been sold to us by Airport Authority of India, and we hereby certify that we have inspected the site and read the entire terms and conditions of the tender documents made available to us in the office of Sr. Manager Engg. (C)-IlI, MI, Rajiv Gandhi Bhawan, SAP New Delhi 110 003. Which shall form part of the contract agreement and we shall abide by the conditions/clauses contained therein 2. We hereby unconditionally accept the tender conditions of AAIs tender documents in its entirety for the above work. 3. The contents of clause 31.4 and 31.5 of Notice inviting Tender of the Tender Documents have been noted wherein it is clarified that after unconditionally accepting the tender conditions in its entirety. It is not permissible to put any remarks/conditions (except unconditional rebate on quoted rates if any) in the tender, enclosed in Cover No. 2 and the same has been followed in the present case. In case, this provisions of the tender if found violated after opening Cover No. 2. We agree that the tender shall he rejected and Ml shall without prejudice to any other right or remedy be at liberty to forfeit the full said earnest money absolutely.

63

4,

The required earnest money for this work is enclosed herewith.

Yours Faithfully

Date: 25-.04-2008

(Signature of the tenderer) With rubber stamp

64

BHOLASINGH JAIPRAKASH CONSTRUCTION LTD.

ENGINEERS AND CONTRACTORS

New Delhi-110070

ANNEXURE-I ACCEPTANCE LETTER To Senior Manager Engg. (C)-tH Airport Authority of India, Rajiv Gandhi Bhavan, Safdarjung Airport, New Delhi 110003 We have read and examined the following documents relating to the work of Provision of additional Taxi Track and expansion of Apron Phase-Il including strengthening of existing Apron and Taxi Track at Srinagar Airport (a) (b) Notice Inviting Tender Schedule A,,C,D and E

(c) General Conditions of Contract including Contractors Labour Regulations, Model. Rules for Labour Welfare and Safety Code and forms of different deeds appended to these conditions. (d) (e) (f) (g) (h) Special Conditions. Technical Specifications. Particular Specifications Drawings Schedule of Rates/Quantities

We hereby Tender for execution of the work referred to in the aforesaid documents upon the terms & conditions contained or referred to therein and in accordance in all respects with the

65

specifications, designs, drawings and other relevant details at the rates contained in Schedule A and within the period (s) of completion as stipulated at serial No. 3 in Schedule E. In consideration of we being invited to Tender and promised by AAI to consider the award of work if we are found to be the lowest responsive bidder as stipulated in the conditions of contract, we agree to keep the Tender open for acceptance for ninety days from the due date of submission thereof and not to make any modifications in its terms and conditions which are not acceptable to AAI.

A sum of Rs.48,67,960/- As mentioned at serial No. 11 in Schedule E is hereby forwarded in the form of Bank Guarantee is in favour of AAI as Earnest money. If we fail to keep the Tender open as aforesaid or make any modifications in the terms and conditions of the Tender which are not acceptable to AAI, we agree that AAI shall, without prejudice to any other right or remedy, be at liberty to forfeit the fully said earnest money absolutely and we shall not be considered as unsuccessful Tenderer for the purpose of return of earnest money as provided in the Notice Inviting Tender. Should this Tender be accepted, we hereby agree to abide by and fulfill all the terms, conditions and provisions of the aforesaid documents. If, after the Fender accepted. we fail to commence the execution of the Works as provided in the conditions we agree that AM shall without prejudice to any other right or remedy, be at lii to forfeit the said earnest money absolutely and take suitable actions against us a ider the terms and conditions of the contract. We agree that should AAI decide to forfeit earnest money as aforesaid, unless a sum equal to the earnest money mentioned above is paid by us forthwith, AAI may at its option recover it out of the deposit and in the event of deficency out of any other moneys due to us or otherwise.

If the Tender is accepted. we agree that the earnest money deposited at the time of Tender shall be treated as part of security depsit and the balance security deposit shall be paid by us or AAI shall collect the same by deductions from our running bills as per conditions of contract.

Signature in the capacity of _________________ Witness________________ Duly authorized to sign the tender on behalf of The (in block capitals) Date:_____________

Date____________________

66

Address___________________ Postal address Date ____________________ Telegraphic address _____________________ Telephone No.___________________________

67

SPEED POST Fax-91-1 1-26898447 No: AAI /Srinagar/Apron-ll /Engg.(C)/1151 Dated 17.04.2008

To, M/s Bholasingh Jaiprakash Construction Ltd. D-7/7367. Sector D. Pocket No.7. \1asant KunJ. Nc Delhi-il 0070 Ph: 26130014, 26138605. Sub: Provision of additional Taxi Track and expansion of Apron Phase-II including strengthening of existing Apron and Taxi Track at Srinagar Airport. SH: Clarifications of quarries raised by bidder. Dear Sir, Please find enclosed herewith Clarifications of queries raised as annexure A for above said work. This letter along with annexure A will form documents and these documents are required to be submitted with tender document duly signed by the bidders.

Thanking you, Encl: As above Yours faithfully,

(ANUPAM VERMA) S.M. ENGG. (C)(SG)-III Airports Authority of India, Rajiv Gandhi Bhawan New Delhi PH: 24632950, Extn. 2519

68

CHAPTER-5 OBJECTIVES

69

THE MAIN OBJECTIVES OF THIS STUDY ARE: 1.Realize the contracting stages from setting the scope of work to awarding the contract. 2.Evaluate, in-depth, the process of preparing tenders and selecting potential suppliers. 3.Understand the issues involved in assessing tenders for quality as well as value for money including e-Auction. 4.Maximise business leverage from tenders. 5.Discover essential service procurement and/or tendering tools and techniques 6.Create winning tenders! 7.Apply several approaches to bid evaluation using criteria, weights and scoring measures.

70

CHAPTER-6 METHODOLOGY

71

IDENTIFICATION OF PROBLEM: Problem is the impact of old long process of tendering, bid evaluation, negotiation and contract award on the various current big projects in public sector. RESEARCH DESIGN: I have used two types of research design EXPLORATORY RESEARCH: To collect the Information about the whole this process of organisation is done through exploratory research. DESCRIPTIVE RESEARCH: To know how the professionals carry out this entire process is done through descriptive research. DATA SOURCE: SECONDARY DATA: The data collected is through secondary sources.various documents, journals, office files are used to collect the information about this process.

72

CHAPTER-7 OBSERVATIONS, ANALYSIS AND DISCUSSION

73

Analysis and interpretations are made after analysing the abstracts of the contractors that qualify for the project under consideration. ABSTRACT OF L1 & L2 COMPRATIVE STATEMENT-ABSTRACT OF COST After Negotiation Name of Work: Provision of additional Taxi Track and expansion of Apron Pahse-II including strengthening of existing Apron and Taxi at Srinagar Airport. M/s Bholasingh Jaiprakash Construction Ltd (L1 bidder) S.No. Sub Head Justified Amount Bid Value before Bid value after negotiation negotiation @ 0.36% rebate 278096058.00 277094912.19

Civil work (i/c 5% for Rs. operational are and 5% for disturbed area)

243875141.92

Electric work (i/c 5% Rs. for operational are and 5% for disturbed area)

1434300.00

1779750.00

1773342.90

Total Add 8.4% WCT Justified cost Say

Rs. Rs. Rs. Rs.

245309441.92 20605993.12 265915435.04 265915435.00

279875808.00

278868255.09

%age variation w.r.t. Justified Cost

5.25%

4.87%

Above

Above

74

COMPRATIVE STATEMENT-ABSTRACT OF COST Name of Work: Provision of additional Taxi Track and expansion of Apron Pahse-II including strengthening of existing Apron and Taxi at Srinagar Airport. S.No. Sub Head M/s Bholasingh M/s Vishal Jaiprakash Infrastructures Lts Construction Ltd. (L2) (L1)

Civil work (i/c 5% for operational Rs. are and 5% for disturbed area)

243875141.92

290167135.00

Electric work (i/c 5% for Rs. operational are and 5% for disturbed area)

1773342.90

2410000.00

Total

Rs.

278868255.09

292577135.00

Total quoted amount by the Rs. agencies

278868255.09

292577135.00

%age variation w.r.t. Justified Cost

4.87%

10.03%

Above

Above

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No: AM /Srinagar/Apron-II /Engg.(C)/1643 To M/s Bholasingh Jaiprakash Construction Ltd. D-7/7367, Sector D. Pocket No.7, Vasant Kunj, New Delhi-i 10070 Ph: 26130914. 26138695, Fax-91.-11-26898447

Dt.30.05.2008

Sub: Provision of additional Taxi Track and expansion of Apron Phase-Il including strengthening of existing Apron and Taxi Track at Srinagar Airport. Ref : Your tender for the subject work opened on 25.04.08.

Dear Sir, 1. Your tender for the work mentioned above is hereby accepted on behalf of Chairman, Airports Authority of India, at negotiated quoted amount of Rs. 278868255.09/- (Rupees Twenty seven crores eighty eight lacs sixty eight thousand two hundred fifty five and paisa nine only).

2. You are requested to attend the office of Senior Manager. Engg. (C)-llI AAI, Rajiv Gandhi Bhawan, Sdfdarjung Airport, New Delh1 10003 by 09.06.08 to sign and complete the contract agreement. The contract agreement shall be executed on a non-judicial stanip paper of value Rs.100/- (Rupees One, hundred only) and the cost of the stamp paper shall be borne by you. 3. The earnest money amount of Rs. 48,67,960/- (Rupees Forty eight laos sixty seven thousand nine hundred sixty only) received along with your tender will beconverted as part of Security Deposit. Please deposit Rs. 9075453/- (Rupees Ninety lacs seventy five thousand four hundred fifty three only) towards Security Deposit within 15 days from the date of issue of this letter, failing which, the same will be deducted from your running bills as per Clause 9 of GCC on page GCC 5 and Clause 20 of NIT on page NIT 3 of the tender document. 4. Within 30 days of issue of work order, you shall submit to AM, a performance Guarantee as per Clause 33 of NiT on page NIT-6 for an amount of Rs. 13943413/- (Rupees One cores thirty nine lass forty three thousand nine hundred thirteen only) a Performance Guarantee in the form of BG/DD/FDR (in Proforma appended at Annexure-4 on PR8-9 of Tender Document from scheduled bank but not from any cooperative / Gramin bank).

76

5. You are requested to comply with the provision of Contract Labour (Regulation and Abolition) Act 1970 and Contract Laboar (Regulation and Abolition) Central rules 1971 and minimum wages act and rules thereof Central and State Governments. 6. You are also directed to contact Sr. Manager Engg (C), AAI, Srinagar Airport, Srinagar immediately who will arrange to hand over the site to you. Sr. Manager Engg (C), AAI, Srinagar Airport. Srinagar, shall be the Engineer-in-Charge 7. Please note that the time allowed f9r carrying out the work shall be 12 (twelve) months and same shall be reckoned from the 10th day after issue of this letter. 8. Any further correspondence in connection with the contract should normally be addressed to the Engineer-in-charge. 9., Please acknowledge the receipt and return the duplicate copy oIthis letter enclosed herewith after duly signing it to the undersigned as a token of acceptance. Yours faithfully,

(PRAHANT P. VAIDYA) Sr. Manager Engg ,(C)-IIJ For and on behalf of the Chairman AIRPORTS AUTHORITY OF INDIA N.O.O: Copy to: EXTERNAL: 1. RED. NR. AAI. Operational offices Gurgaon road New Delhi - 37. 2. GM (Engg)- NR. Operational offices Gurgaon road New Delhi - 37. 3. GM (F&A), AAI. NR Operational offices Gurgaon road New Delhi 4. DGM Engg (C), AAI, Operational offices Gurgaon road New Delhi 5. DGM Engg (E), AAI, Operational offices Gurgaon road New Delhi 6. Airport Director, AM, Srinagar Airport, Srinagar 7. Sr. Manager Engg (C), AA, Srinagar Airport, Srinagar. 8. Labour Commissioner. Srinagar
These two copies being forwarded to SME(C), Srinagar for sending to respective offices

77

9. Regional Provident Fund Commissioner, Srinagar INTERNAL: 1. Executive Director (Engg.), AM, CHQ. 2. Executive Director (F & A), AAI, CHQ. 3. Executive Director (ARA - Pig), AM, CHQ. 4. Executive Director (PMQA). 5. G.M. Engg (C)-Il. AAI, CHQ. 6. G.M. Engg (Elect.) AM, CHQ. 7. AM. Engg. (C)-I), AM. CHQ .. . .For MIS. record. 8. G.M. (F&A), Precheck, AAI, CHQ: With the request for taking necessary action regarding conversion of EMD as part of SD for this work.

78

CHAPTER-8 CONCLUSION AND RECOMMENDATIONS

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The tender process raises complex and difficult issues for all parties. It requires timely, yet thorough analysis of the project. Other completion option, the defaulted Principals capabilities, claims, the likelihood of latest defects, other hidden financial risks and many other factors. It often involves complicated and extended negotiations. Nevertheless when used with careful analysis and planning, it often can best meet both the sureties and obliges business interests. The tendering process for Apron upgradation at Srinagar international airport, a project worth Rs 298407010.94 was done with the procedural guidance of AAI. The method used was call of tenders through notice inviting tenders. 14 different contractors, who were eligible to apply, fill the tenders.among 14, Bholasingh Jaiprakash Construction Ltd and M/S Vishal infrastructures Ltd became L1 & L2 bidders respectively. One of the objectives of the tendering, bid evaluation, negotiation and contract award process is to select the lowest quoted tender, and that is, what was done. The L1 bidder for this project (Bholasingh Jaiprakash Construction Ltd) quoted Rs 278868255.05 (4.87% above justified cost i.e Rs 265915435.00).

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The tendering process is eithical process where tenders are sealed in envelops. Favouritism is completely absent in this process. The tenders sealed are opened before the team of high official members, as well as the tenderers. In the tendering process of apron upgradation at Srinagar international airport, no negotiation was done as the selected bidder had quoted the acceptable amount. However, in case negotiation is needed, it is done with lowest bidder only. As learned in the organization and going through the various documents of the organization, this process requires efficient evaluators, high professionalsand officers. The process is followed with the instruction strictly provided in the AAI works manual.The officer concerned marks all the corrections, omissions/errors if any, in the tender filled by the approved contractor/s. I would recommend that this process should be used for all the projects in order to have fair, ethical implemantations to complete the task and also to develop an atmosphere of healthy competition in the business world.The process should be employed in private sector too.through this process, the project is handled by the best contractor among the all, also the amount to be spend on the project remains within the estimated amount. so, the project is completed within the proposed budget and time. LIMITATIONS As, this process plays an important role in the existence of many big projects, this process should be less time consuming in present world of business competition. It would be more easy to follow if E-PROCUREMENT would be used. E-procurement (electronic procurement, sometimes also known as supplier exchange) is the business-to-business or business-to-consumer or Business-to-government purchase and sale of supplies, Work and services through the Internet as well as other informations and networking systems, such as Electronic Data Interchange and Enterprise Resource Planning. E-procurement is done with a software application that includes features for supplier management and complex auctions. The new generation of E-Procurement is now ondemand or a software-as-a-service. There are seven main types of e-procurement: Web-based ERP (Enterprise Resource Planning): Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology. e-MRO (Maintenance, Repair and Overhaul): The same as web-based ERP except that the goods and services ordered are non-product related MRO supplies .e-sourcing: Identifying new suppliers for a specific category of purchasing requirements using Internet technology. 81

e-tendering: Sending requests for information and prices to suppliers and receiving the responses of suppliers using Internet technology. May or may not involve e-auctions or eRFx functionality. e-reverse auctioning: Using Internet technology to buy goods and services from a number of known or unknown suppliers. e-informing: Gathering and distributing purchasing information both from and to internal and external parties using Internet technology. e-marketsites: Expands on Web-based ERP to open up value chains. Buying communities can access preferred suppliers' products and services, add to shopping carts, create requisition, seek approval, receipt purchase orders and process electronic invoices with integration to suppliers' supply chains and buyers' financial systems. The e-procurement value chain consists of Indent Management, eTendering, eAuctioning, Vendor Management, Catalogue Management, and Contract Management. Indent Management is the workflow involved in the preparation of tenders. This part of the value chain is optional, with individual procuring departments defining their indenting process. In works procurement, administrative approval and technical sanction are obtained in electronic format. In goods procurement, indent generation activity is done online. The end result of the stage is taken as inputs for issuing the NIT. Elements of e-procurement include Request For Information, Request For Proposal, Request for Quotation, RFx (the previous three together), and eRFx (software for managing RFx projects).

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CHAPTER-9 BIBLIOGRAPHY

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JOURNALS AND WEB SITES REFERRED

1. 2. 3. 4. 5. 6. 7. 8. 9.

AAI, POWER RELATING TO WORKS/SERVICES(CAPITAL)-CHAPTER-6. PROVISION OF ADDITIONAL TAXI TRACK AND EXPANSION OF APRON PH-II, FILE NO I,II. WORKS MANUAL, AAI section 25(p.no 81,82), setion26(p.no 83-87), section 27(p.no 88-93), section 28(p.no95-106) AGREEMENT BOOK OF PROJECT: PROVISION OF ADDITIONAL TAXI TRACK AND EXPANSION OF APRON PH-II, PAGE NOS NIT 1-20, SCC 1- 18, GCC 1-40 www.aai.aero www.airportsindia.org.in www.aai.aero/igi/index.jsp en.wikipedia.org/wiki/E-procurement www.adb.org/Documents/Guidelines/Bid-Evaluation/guide-bid-aug00.pd

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