GCC for Services, 2018; Ministry of Railways

Government of India
Ministry of Railways
(Railway Board)

No. 2018/Trans. Cell/Mech./Service Contracts New Delhi Dated: 20.03.2018

The General Managers,

All Zonal Railways & Production Units

DG/RDSO, DG/NAIR, CAO/DMW, CAO/RWP
Dir./CTls

Sub: The General Conditions of Contract for Service.

Ref: Letter of even No. Dated 02.02.2018.

There have been some typographical mistakes in the Board's letter of even no. issued on 02.02.2018.

Now, typographical mistakes have been corrected. The corrected copy of General Conditions of
Contract for Service in PDF format is enclosed.

Zonal Railways may follow this corrected PDF version of General Conditions of Contract for Services.

(AK. Chandra)
Executive Director/Mech./Trans.
Railway Board
Tel. No. (M) 9717646228

No. 2018/Trans. Cell/lMech./ Service Contracts New Delhi Dated: 20.03.2018

1. PFAs, All Indian Railways & Production Units

2. The ADAI (Railways), New Delhi.
3. The Director of Audit, All Indian Railways

(Sanjeeb Kumar)
Executive Director/Accounts/Transformation

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GCC for Services, 2018; Ministry of Railways

GCC FOR SERVICES January, 2018

PREAMBLE

In recent years, Indian Railways has seen a rise in the number of service contracts in non-operational
areas such as cleaning, facilities management, consultancy etc. which continue to be governed by the
General Conditions of Contract (GCC) for Works at present.

Given the diverse nature of works and services contracts and the problems in managing service
contracts using a GCC developed for works, a need was felt to formulate a simplified, outcome
focused GCC catering specifically to services to improve contract management, delivery of services
and to reduce government litigation.

In this regard, a committee of Executive Directors/Railway Board was formed with a mandate for
‘simplification and improvement of service contracts with a view to improve the quality of services
and service contract management.’

The new GCC is a result of wide ranging consultations, profound erudition and of immensely valuable
contributions from all the directorates which examined its provisions and connotations thereof, both
evident and implicit.

The recommendations of the committee after approval of the Civil Engineering, Transformation, and
Legal directorates, concurrence of Finance and approval of the Railway Board are presented in the
form of the new document titled as “The General Conditions of Contract for Services”.

Amit Garg,
Convener of the Committee on GCC for Services,
and
Executive Director/ EnHM /CE,
Railway Board

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LIST OF CONTENTS
I MEANING OF TERMS
1.1 Interpretation 7
1.2 Definition 7
1.3 Singular and Plural 8
1.4 Headings and Marginal Headings 9

II ELIGIBILITY OF BIDDERS AND EVALUTATION OF BIDS

2.1 Elements of Service Contracts and Procedural Thereof 10
2.2 Qualification Criteria 10
2.3 Lead Partner/Non Substantial Partners/Change in JV/Consortium 11
2.4 Joint Venture (JV) Firms in Bids 11
2.5 Disqualification of Bidders 13
2.6 Bid Evaluation System 14
2.7 Application for Registration for Approved List of Vendors 17
2.8 Right of Railway to Deal with Bids 18
III BID DOCUMENTATION
3.1 Bid (Tender) Form 19
3.2 Omissions & Discrepancies 19
3.3 Earnest Money 19
3.4 Care in Submission of Bids 20
3.5 Execution of Contract Document 20
3.6 Form of Contract Document 20

IV. GENERAL OBLIGATIONS

4.1 Execution Co-Relation And Intent of Contract Documents 21
4.2 Law Governing The Contract 21
4.3 Service of Notices on Contractors 22
4.4 Occupation and Use of Land 22
4.5 Assignment or Subletting of Contract 22
4.6 Railway Passes 22
4.7 Carriage of Materials 22
4.8 Representation on Works 22
4.9 Relics, Treasures, Lost and Found 23
4.10 Indemnity by Contractors 23
4.11 Performance Guarantee 23
4.12 Force Majeure Clause 25
4.13 Illegal Gratification 25
4.14 Contractor's understanding 25
4.15 Commencement of Works 26
4.16 Accepted Programme 26
4.17 Compliance to Managers Instructions 26
4.18 Alterations to be Authorized 26
4.19 Extra Works 26
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4.20 Separate Contract in Connection With Works 26

4.21 Instruction of Manager's Representative 27
4.22 Adherence to Specifications and Drawings 27
4.23 Working During Night 27
4.24 Damage to Railway Property or Private Life and Property 28
4.25 Sheds and Stores Houses 28
4.26 Provision of Efficient and Competent Staff at Sites By The Contractor 28
4.27 Workmanship and Testing 29
4.28 Removal of Improper Materials/tools and Plant 29
4.29 Facilities for Inspection 29
4.30 Temporary Works 29
4.31 Contractor to Supply Water for Works 30
4.32 Contractor to Arrange Supply of Electric Power for Services 30
4.33 Property in Materials and Plant 30
4.34 Tools, Plant and Material Supplied by Railway 30
4.35 Hire of Railways’ Plant 31
4.36 Precaution During Progress of Services 31
4.37 Roads and Water Courses 31
4.38 Provision of Access to Premises 31
4.39 Safety of Public 31
4.40 Use of Explosives 31
4.41 Suspension of Services 31
4.42 Rates for Items of Work 32
4.43 Clearance of Site on Completion 33
4.44 Digital Contract Labour Management System 33
4.45 Environmental Requirements 34
4.46 Data Protection 34
4.47 Intellectual Property Rights 35
V. VARIATIONS, MEASUREMENT AND PAYMENTS
5.1 Extension of Time 37
5.2 Extension of Time for Delay Due to contractor 38
5.3 Modification to Contract to be in writing 38
5.4 Claims 40
5.5 Measurement 41
5.6 Payments 41
5.7 Price Variation Clause (PVC) 42
5.8 Price Variation during Extended Period of Contract 45
5.9 Maintenance of Works, if applicable 45
5.10 Certificate of Completion of Services 46
5.11 Cessation of Railway’s Liability 47
5.12 Unfulfilled Obligations 47
5.13 Final Payment 47

VI. LABOUR LAWS AND RELATED OBLIGATIONS

6.1 Independent Contractor 48

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6.2 Legal Obligations 49

6.3 Labour Law Awareness 49
6.4 Provisions of Contract Labour (Regulation and Abolition) Act, 1970/Rule 1950 49
6.5 Minimum Wages Act, 1948/Rules 1950 52
6.6 Provisions of Payments of Wages Act 53
6.7 Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 53
6.8 Provisions of Workmen's Compensation Act 55
6.9 The Maternity Benefit Act, 1961 55
6.10 The Sexual Harassment of Women at the Workplace 56
6.11 Safai Karamchari Act ,1993 56
6.12 Child Labour (Prohibition and Regulation) Act, 1986 57
6.13 Apprentices Act, 1961 57
6.14 Miscellaneous Provisions 57
6.15 Medical Certificate of Fitness for Labour 59
6.16 Police Verification of Labour Employed by Contractor 59
6.17 Mandatory Compliance of Government Schemes 59

VII. DETERMINATION OF CONTRACT

7.1 Right of Railway to Determine the Contract 60
7.2 Payment on Determination of Contract 60
7.3 No Claim on Compensation 60
7.4 Determination of Contract Owing to Default of Contractor 60
7.5 Right of Railway After Rescission of Contract Owing to Default of Contractor 62

VIII. SETTLEMTN OF DISPUTES - INDINAN RAILWAY ARBITRATION RULES

8.1 Matters Finally Determined by the Railways 63
8.2 Demand for Arbitration 63
8.3 Obligation During Pendency of Arbitration 64
8.4 Appointment of Arbitrator 64

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ANNEXURES
I Bid Evaluation-Technical Criteria (sample) 68
II Bid Form (First Sheet) 70
Il Bid Form (Second Sheet)-Instructions to Bidders 71
II Bid Form (Third Sheet)- Schedule of Rates and Quantities 74
IlI Contract Agreement of Services 75
IV Employment Card (Form XIV) 76
V Service Certificate (Form XV) 77
VI Register of Wages (Form XVII) 78
VII Wage Slip (Form XIX) 79
VIII Return to be sent by the Contractor to the Licensing Officer (Form XXIV) 80
IX Annual Return of Principal Employer to be sent to the Registering Officer (Form XXV) 81
X Certificate of Medical Examination 82
XI Certificate of Police Verification 83
XII Performance Notice 84
XIII Revocation of Performance Notice 85
XIV 7 Days Notice 86
XV Termination Notice 87
XVI First Aid Facilities 88
XVI Register for Correction Slips 89

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I. MEANING OF TERMS
1.1 Interpretation: These shall be subject to modifications additions or suppression by special conditions
of contract and/or special specifications, if any, annexed to the Bid Forms.
1.2 Definition: In these General Conditions of Contract, the following terms shall have the meanings
assigned hereunder except where the context otherwise requires.
Examples of earning contracts are running (operating) 4-wheeler / 2-wheeler stands; publicity on
platforms / trains etc.; running (operating) various type of stalls on platforms including reservation centers,
book-stalls, restaurants, fast-food stalls, tea-stalls etc.
1.2.1 Railway shall mean the President of the Republic of India or the Administrative Officers of the
Railway or of the Successor Railway authorized to deal with any matters, which these presents are
concerned on her behalf.
1.2.2 General Manager (GM) shall mean the Officer-in-Charge of the general superintendence and
control of the Zonal Railway/Production Units and shall also include the General Manager (Construction)
and shall mean and include their successors, of the Successor Railway.
1.2.3 Chief Manager shall mean the Officer in charge of the user department i.e. Mechanical/l
Commercial/ Operations/ Safety/ Finance/ Health/ Engineering including S & T and Electrical of both
Open line and Construction department including production units etc. (for e.g. COM, CCM, CE, CMD
etc.) and shall mean and include their successors of the Successor Railway.
1.2.4 Divisional Railway Manager (DRM) shall mean the Officer in charge of a Division of the Zonal
Railway and shall mean and include the Divisional Railway Manager of the Successor Railway.
1.2.5 Manager shall mean the Divisional officers or equivalent officers of the user department i.e.
Mechanical, Commercial/ Operations/ Safety/ Finance/ Health/ Engineering including S & T and Electrical
of both Open line and Construction department including production units ete. in executive charge of the
works (e.g. Sr DME, Sr. DOM, Sr. DCM, CMS, Sr. DEN etc.) and shall include the superior officers of the
same departments and shall mean & include the successors of the Successor Railway.
1.2.6 Bidder shall mean the person/ the firm/ co-operative or company whether incorporated or not who
Bids for the services with a view to execute the works on contract with the Railway and shall include their
personal representatives, successors and permitted assignees.
1.2.7 Limited Bids shall mean bids invited from all or some contractors on the approved or select list of
Contractors with the Railway.
1.2.8 Open Bids shall mean the bids invited in open and public manner and with adequate notice.
1.2.9 Works shall mean the works contemplated for delivery of services as per drawings and schedules set
forth in the Bid forms and required to he executed according to the specifications.
1.2.10 Service means any subject matter of procurement other than goods or works, except those incidental
or consequential to the service, and includes physical, maintenance, housekeeping, professional,
intellectual, training, consultancy and advisory services or any other service classified or declared as such

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by a procuring entity but does not include appointment of an individual made under any law, rules,
regulations or order issued in this behalf.
1.2.11 Earning Contract means a contract in which the contractor makes payment to Railway for some
notified activity, i.e. where Railway gets some earning by awarding the contract. Examples of earning
contracts are running (operating) 4-wheeler / 2-wheeler stands; publicity on platforms / trains etc.; running
(operating) various type of stalls on platforms including reservation centers, book-stalls, restaurants, fast-
food stalls, tea-stalls etc.”
1.2.12 Specifications shall mean the Standard Specifications for Materials & Services of Railway as
specified by Railway under the authority of the Ministry of Railways or the Chief Manager or as amplified,
added to or superseded by Special Specifications, if any or as specified in the Bid document.
1.2.13 Schedule of Rates of the Railway (SOR) shall mean the Schedule of Rates issued under the
competent authority from time to time.
1.2.14 Drawings shall mean the maps, drawings, plans, tracings or prints thereof annexed to the contract
and shall include any modifications of such drawings and further drawings as may be issued by the
Manager from time to time.
1.2.15 Contractor shall mean the Person/Firm/Co-operative Society or Company whether incorporated or
not who enters into the contract with the Railway and shall include their executors, administrators,
successors and permitted assignees.
1.2.16 Contract shall mean and include the Agreement of Work Order, the accepted Schedule of Rates or
the Schedule or Rates of Railway modified by the Bid percentage for items of works quantified, or not
quantified, the General Conditions of Contract, the Special Conditions of Contracts, if any; the Drawings,
the Specifications, the Special Specifications, if any and Bid Forms, if any.
1.217 Tools and plants shall mean all appliances or things of whatsoever nature required for the execution,
completion or maintenance of the services.
1.2.18 "Temporary Works" shall mean all temporary works of every kind required for the execution
completion and/or maintenance of the services.
1.2.19 Site shall mean the lands, spaces, trains and other places on, under, in or through which the services
are to be carried out and any other lands or places provided by the Railway for the purpose of the contract.
1.2.20 Period of Maintenance shall mean the specified period of maintenance from the date of completion
of the works, as certified by the Manager.
1.2.21 Two Bid System / Two Packet System shall mean a system of bid evaluation where there is
simultaneous receipt of separate technical and financial bids. The technical evaluation of bids is completed
first and the financial bids of only the technically responsive bids are opened, for further evaluation. This is
the standard method to be adopted.
1.2.22 Quality and Cost Based Selection shall mean a system of bid evaluation where weightages are
assigned to technical and financial criteria, wherein higher weightage is assigned to technical criteria based
on the importance of quality of consultancy services sought. The evaluation is made on the basis of
combining the weighted scores for technical and financial criteria.

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1.3 Singular and Plural: Words importing the singular number shall also include the plural and vice
versa, where the context requires.
1.4 Headings and Marginal Headings: The headings and marginal headings in these general conditions
are solely for the purpose of facilitating reference and shall not be deemed to be part thereof or be taken
into consideration in the interpretation or construction thereof or the contract.
1.5 Use of Personal Pronouns: The form of personal pronouns adopted in this document in relation to
bidders is ‘she’, ‘her’ etc. It shall be deemed to signify/include all persons (and objects) irrespective of the
gender/sex.

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Il. ELIGIBILITY OF BIDDERS AND BID EVALUATION

2.1 Elements of Service Contracts and Procedures thereof
2.1.1 Essential elements of a Service Contract: Service contracts are generally defined by scope, (e.g.,
services expressed in terms of functions, processes, activities, or projects), governance (e.g., decision
powers, roles and responsibilities), operations (e.g., day-to-day operating procedures), financial
arrangements (e.g., fee structures, settlement arrangements), performance (e.g., expected outputs, levels of
service, reporting) and implementation (e.g., activities, timelines, level of effort). Quality of services and
timely availability of services is essential for the satisfactory performance of a Service Contract. Bids/
Tenders have to be framed in such a manner in which these basic elements are ensured.
2.1.2 For Service Contracts valuing Rs. 50 lakhs and above (the cost of Bid as decided by Railway Board
from time to time), at present, two-packet system of bidding for evaluation would be adopted based on
Clause 2.6 B.

2.1.3 Service contracts valuing less than Rs. 50 lakhs (as decided by Railway Board from time to time)
shall be decided on the basis of financial bids as per procedures laid down by Railway Board.
2.2 Qualification Criteria
2.2.1 Eligible Applicant
[Link] The Bids for this contract will be considered only from those Bidders [proprietorship firms,
partnership firms, companies, corporations, consortia or joint ventures (JV hereinafter) etc.] who meet
requisite eligibility criteria. In the case of a JV or Consortium, all members of the Group shall be jointly
and severally liable for the performance of whole contract.
[Link]
(a) A Bidder shall submit only one bid in the particular Bidding process, either individually as a Bidder or
as a partner of a JV. A Bidder who submits or participates in, more than one bid will cause all of the
proposals in which the Bidder has participated to be disqualified. No Bidder can be a sub-contractor while
submitting a bid individually or as a partner of a JV in the same bidding process.
(b) Any Central government department/ Ministry of Railways must not have banned business with the
Bidder (any member in case of JV) as on the date of Bid submission.
(c) If the bidder (any member in case of JV/consortium) must not have suffered bankruptcy/ insolvency
during the last 5 years. The Bidder should submit an undertaking to this effect as part of the bid.
(d) Bidders must not have a conflict of interest. Following shall be considered as conflict of interest in this
bidding process :
(i) If a Bidder or her associates/affiliates (inclusive of parent firms) has been engaged by the Employer
(Railways) to provide consulting services for the preparation related to procurement or on implementation
of the project;

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(ii) If a Bidder lends, or temporarily seconds its personnel to firms or organizations which are engaged in
consulting services for the preparation related to procurement for an implementation of the project, if the
personnel would be involved in any capacity on the same project.”
(iii) If the bidder or any of its constituents has changed its name or created a new business entity as
covered by the definition of “Allied Firm” under para 1102 (iii) of Chapter XI of Indian Railways
Vigilance Manual, consequent to having been banned business dealings or suspended business dealings
2.3 Lead Partner/ Non - Substantial Partners/ Change in JV/Consortium

2.3.1 One of the members of the JV Firm shall be its Lead Member who shall have majority (at least 51%)
share of interest in the JV Firm .The other members shall have a share of not less than 20% each in case of
JV Firms with upto three members and not less than 10% each in case of JV Firms with more than three
members. In case of JV Firm with foreign member(s), the Lead Member has to be an Indian Firm.
2.3.2 Once the Bid is submitted, the MoU shall not be modified/ altered/ terminated during the validity of
the Bid. In case the Bidder fails to observe/comply with this stipulation, the full Earnest Money Deposit
(EMD) shall be liable to be forfeited.

2.3.3 Approval for change of constitution of JV Firm shall be at the sole discretion of the Employer
(Railways). The constitution of the JV Firm shall not be allowed to be modified after submission of the bid
by the JV Firm, except when modification becomes inevitable due to succession laws etc. and in any case
the minimum eligibility criteria should not get vitiated. However, the Lead Member shall continue to be the
Lead Member of the JV Firm. Failure to observe this requirement would render the offer invalid.

2.3.4 Similarly, after the contract is awarded, the constitution of JV Firm shall not be allowed to be altered
during the currency of contract except when modification become inevitable due to succession laws etc.
and in any case the minimum eligibility criteria should not get vitiated. Failure to observe this stipulation
shall be deemed to be breach of contract with all consequential penal action as per contract conditions.

2.4 Joint Venture (JV) Firms in Bids

2.4.1 Participation of Joint Venture (JV) Firms in Service Bids: This Clause shall be applicable in the
Bids, where participation of JV has been allowed as per bid document.

2.4.11 Separate identity/name shall be given to the Joint Venture Firm.

[Link] Number of members in a JV Firm shall not be more than three, if the service involves only one
department (say Mechanical or commercial or Medical) and shall not be more than five, if the work
involves more than one department.
[Link] A member of JV Firm shall not be permitted to participate either in individual capacity or as a
member of another JV Firm in the same Bid.
[Link] The Bid form shall be purchased and submitted only in the name of the JV Firm and not in the
name of any constituent member.

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[Link] Normally Earnest Money Deposit (EMD) shall be submitted only in the name of the JV Firm and
not in the name of constituent member. However, in exceptional cases, EMD in the name of Lead Member
can be accepted subject to submission of specific request letter from Lead Member stating the reasons for
not submitting EMD in the name of JV Firm and giving written confirmation from JV members to the
effect that EMD submitted by the Lead Member may be deemed as EMD submitted by JV Firm.
[Link] A copy of Memorandum of Understanding (MoU) executed by the JV members shall be submitted
by the JV Firm along with the Bid. The complete details of the members of the JV Firm, their share and
responsibility in the JV Firm etc. particularly with reference to financial, technical and other obligations
shall be furnished in the MoU.
[Link] On award of contract to a JV Firm, Performance Guarantees shall be submitted by the JV Firm as
per clause 4.11. All the Guarantees like Performance Guarantee, Bank Guarantee for Mobilization
Advance, Machinery Advance etc. shall be accepted only in the name of the JV Firm and no splitting of
guarantees amongst the members of the JV Firm shall be permitted.

[Link] On issue of LOA (Letter of Acceptance), an agreement among the members of the JV Firm (to
whom the work has been awarded) shall be executed and got registered before the Registrar of the
Companies under Companies Act or before the Registrar/Sub-Registrar under the Registration Act, 1908.
This JV Agreement shall be submitted by the JV Firm to the Railways before signing the contract
agreement for the service. In case the Bidder fails to observe/comply with this stipulation, the full Earnest
Money Deposit (EMD) shall be forfeited and other penal actions due shall be taken against partners of the
JV and the JV. This Joint Venture Agreement shall have, inter- alia, following Clauses:
(a) Joint and Several Liability - Members of the JV Firm to which the contract is awarded, shall be
jointly and severally liable to the Employer (Railways) for delivery of service in accordance with General
and Special Conditions of Contract. The JV members shall also be liable jointly and severally for the loss,
damages caused to the Railways during the course of execution of the contract or due to non-execution of
the contract or part thereof.
(b) Duration of the Joint Venture Agreement - It shall be valid during the entire currency of the
contract including the period of extension, if any and the maintenance period after the service is completed.
(c) Governing Laws - The Joint Venture Agreement shall in all respect be governed by and interpreted
in accordance with Indian laws.
[Link] Authorized Member - Joint Venture members shall authorize one of the members on behalf of
the Joint Venture Firm to deal with the Bid, sign the agreement or enter into contract in respect of the said
Bid, to receive payment, to witness joint measurement of work done, to sign measurement books and
similar such action in respect of the said Bid/contract. All notices/correspondences with respect to the
contract would be sent only to this authorised member of the JV Firm.
[Link] No member of the Joint Venture Firm shall have the right to assign or transfer the interest right or
liability in the contract without the written consent of the other members and that of the employer
(Railways) in respect of the said bid/ contract.
[Link] Documents to be enclosed by the JV Firm along with the Bid:

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[Link].1In case one or more of the members of the JV Firm is/are partnership firm(s), following
documents shall be submitted:

(a) Notary certified copy of the Partnership Deed,

(b) Consent of all the partners to enter into the Joint Venture Agreement on a stamp paper of appropriate
value (in original).
(c) Power of Attorney (duly registered as per prevailing law) in favour of one of the partners of the
partnership firm to sign the JV Agreement on behalf of the partnership firm and create liability against the
firm.
[Link].2 In case one or more members is/are Proprietary Firm or HUF, the following documents shall
be enclosed:
(a) Affidavit on Stamp Paper of appropriate value declaring that his/her Concern is a Proprietary Concern
and he/she is sole proprietor of the Concern OR he/she is in position of "KARTA" of Hindu Undivided
Family (HUF) and he/she has the authority, power and consent given by other partners to act on behalf of
HUF.
[Link].3 In case one or more members is/ are limited companies, the following
documents shall be submitted:
(a) Notary certified copy of resolutions of the Directors of the Company, permitting the company to enter
into a JV agreement, authorizing MD or one of the Directors or Managers of the Company to sign JV
Agreement, such other documents required to be signed on behalf of the Company and enter into liability
against the company and/or do any other act on behalf of the company.
(b) Copy of Memorandum and Articles of Association of the Company.
(c) Power of Attorney (duly registered as per prevailing law) by the Company authorizing the person to
do/act mentioned in the para (a) above.

[Link].4 All the Members of JV shall certify that they are not blacklisted or debarred by Railways
or any other Ministry / Department / PSU (Public Sector Undertaking) of the Govt. of India/ State
Govt. from participation in Bids/contract on the date of opening of bids either in their individual
capacity or as a member of the JV Firm in which they were/are members.
2.5 Disqualification of Bidders
2.5.1 Employment / Partnership etc. of Retired Railway Employees
[Link]
(a) Should a Bidder be a retired Manager of the Gazetted rank or any other Gazetted Officer working
before her retirement, whether in the executive or administrative capacity or whether holding a pensionable
post or not, in any department of any of the railways owned and administered by the President of India for
the time being, or

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(b) Should a Bidder being partnership firm have as one of its partners a retired Manager or retired Gazetted
Officer as aforesaid, or
(c) Should a Bidder being an incorporated company have any such retired Manager or retired officer as one
of its Directors or
(d) Should a Bidder have in her employment any retired Manager or retired Gazetted Officer as aforesaid,
then the full information as to the date of retirement of such Manager or Gazetted Officer from the said
service and in case where such Manager or Officer had not retired from Government service at least one
year prior to the date of submission of the Bid as to whether permission for taking such contract, or
if the contractor be a partnership firm or an incorporated company, to become a partner or Director as the
case may be, or to take the employment under the contractor, has been obtained by the Bidder or the
Manager or Officer, as the case may be from the President of India or any officer, duly authorised by her in
this behalf, shall be clearly stated in writing at the time of submitting the Bid.
Bids without the information above referred to or a statement to the effect that no such retired Manager or
retired Gazetted Officer is so associated with the Bidder, as the case may be, shall be rejected.
2.5.2 Should a Bidder or contractor being an individual on the list of approved Contractors, have a
relative(s) or in the case of partnership firm or company of contractors one or more of her shareholder(s) or
a relative(s) of the shareholder(s) employed in gazette capacity in any department of Indian Railway, the
authority inviting bids shall be informed of the fact at the time of submission of Bid, failing which the bid
may be disqualified/rejected or if such fact subsequently comes to light, the contract may be rescinded in
accordance with the provision in Clause 7.4 of the General Conditions of Contract.
[Link].1 If the bidder or any of its constituents has been levied with a penalty for violation of labour laws
for three times in the last two years (from the date of opening of tender) by the appropriate enforcing
agency like the Labour Commissioner etc.
[Link] The contractor shall be disqualified from participating in the bidding for services in a Railway
division,
(i) If any previous contract of the bidder or any of its constituents had been terminated under clause 7.4 in
that Railway division, with in the previous 2 years from date of submission of bids.
(ii) In that Railway division, the bidder or any of its constituents has been imposed a penalty equivalent to
the maximum penalty that can be imposed under a previous contract, such a figure being specified, with in
the previous 2 years from date of submission of bids. (Period of 2 years shall be reckoned from the date on
which the total accrued amount of penalties has reached the maximum penalty that can be imposed under
the contract, as specified by the Competent Authority).
The declaration to this effect shall be furnished by the contractor as a part of his bid document. A format in
this regard shall be made a part of the tender document. In case this declaration is found to be false, process
for ‘banning of business’ against the bidder/contractor shall be initiated as per extent rules.
2.6 Bid Evaluation System
Evaluation of the bids shall be done as per the following system —

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For evaluation of bids, the technical criteria must be defined by the tender inviting authority in consultation
with associate finance and approval of the tender accepting authority, as per the needs and specific
requirements of the project in question.
Based on the type and specific requirements of the project the following methods of bid evaluation can be
used, as considered appropriate.
A. Single Packet System: This method of evaluation shall be used for all service contracts having bid
value upto and including Rs.50 Lakh. This shall be based on the eligibility criteria as per clause [Link] and
[Link] below. Clause [Link] shall not be applicable here.

B. Two Bid System / Two Packet System: This method of evaluation shall be used for all service
contracts having bid value exceeding Rs.50 Lakh.

The procedure detailed below shall be adopted for dealing with ‘Two Packets System’ of Bidding:
With a view to assess the bids technically without being influenced by the financial bids, 'Two Packets
System of Bidding’ shall be adopted. In this system, the Bidders shall submit their quotations/ offers in two
sealed envelopes; with one envelope containing the Technical bid (First packet) and the other envelope
containing the Financial Bid (Second packet).
The first packet shall be with the objective of scrutinizing the capability, financial strength, experience etc.
of the bidders. If the technical offers are found acceptable by meeting the minimum qualifying marks as
provided in the technical criteria, the second packet shall be opened and the bids shall be processed for
finalization in the normal manner (eligible lowest bidder). Those bidders who do not meet this criterion
shall not be considered for opening their financial bids.
However, if on the basis of information contained in the first packet, the Tender Committee needs
clarification regarding processes, specifications etc.; communication can be initiated with the bidders. In
seeking clarifications, all communications with bidders shall be properly recorded so that an adult trail is
maintained. Clarifications shall be confined to the documents/information already submitted by the bidder.
C. Quality and Cost Based System (QCBS): This method of selection may be used for consulting
services where quality of consultancy is of prime concern such as management consulting, feasibility
studies etc. This method of evaluation shall be used for all consultancy service contracts having bid value
exceeding Rs 50 Lakh. Under QCBS, weightages are assigned to technical and financial bid.
The bid document shall specify the minimum qualifying score for the quality of technical bid and also the
relative weightages to be given to the quality and cost (determined for each case depending on the relative
importance of quality vis-a-vis cost aspects in the assignment, e.g. 70:30, 60:40, 50:50 etc.). The bid with
the highest weighted combined score (quality and cost) shall be selected. The weightage of the technical
parameters i.e. non- financial parameters in no case should exceed 80 percent.
2.6.1 Minimum Eligibility Criteria
[Link] Work Experience The bidder should have satisfactorily completed* in the last three previous
financial years and the current financial year upto the date of opening of the tender, one similar single
service contract** for a minimum of 35% of advertised value of the bid.

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*Completed service contract includes on-going service contract subject to payment of bills amounting to
at least 35% of the advertised value of the bid.
** Similar service contract means any contract that is so specified by the competent authority. Work
experience certificate from private individual shall not be accepted. Certificate from public listed
company/private company/Trusts having annual turnover of Rs.500 crore and above subject to the same
being issued from their Head office by a person of the company duly enclosing his authorisation by the
Management for issuing such credentials.
Notes:
The bidder shall submit details of work executed by them in the prescribed format along with bid for the
service contracts to be considered for qualification of work experience criteria clearly indicating the
nature/scope of contract, actual completion cost and actual date of completion for such contract.
[Link] Financial Standing : The Bidders will be qualified only if they have minimum financial
capabilities as below —
(i) T1- Financial Turnover: The bidder should have an aggregate financial turnover not less than 1.5
times the advertised Bid value during the last three previous financial years and in the current financial
year upto the date of opening of the tender. The audited balance sheet reflecting financial turnover certified
by chartered accountant with her stamp, signature and membership number shall be considered.
(ii) T2-Liquidity : The bidder should have access to or has available liquid assets, lines of credit and other
financial means to meet cash flow that is valued at 5% of the estimated bid value net of applicant's
commitments for other contracts. The audited balance sheet and/or banking reference certified by chartered
accountant with her stamp, signature and membership number shall be submitted by the bidder along with
bid.
Banking reference should contain in clear terms the amount that bank will be in a position to lend for this
work to the applicant/member of the Joint Venture/Consortium. In case the Net Current Assets (as seen
from the Balance Sheets) are negative, only the Banking references will be considered. Otherwise the
aggregate of the Net Current Assets and submitted Banking references will be considered for working out
the Liquidity.
The banking reference should be from a Scheduled Bank in India and it should not be more than 3 months
old as on date of submission of bids.
In Case of JV firms overall liquidity of JV firm shall be assessed by arithmetic sum of liquidity of all
members of JV.
[Link] Other Criteria: Based on the nature of services required, type of contract and other such
considerations, the competent authority may include any other criteria as it deems fit in the minimum
eligibility criteria for the qualification of bidders. A sample of technical criteria has been attached in
Annexure-I for illustrative purposes.
2.6.2 Evaluation of Technical Bid
[Link] Bidders Credentials:

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[Link].1 The bidder shall submit along with the Bid document, documents in support of their claim to fulfil
the minimum eligibility criteria as mentioned in the bid. In two packet system of bidding, each bidder shall
be assigned score for their technical bid. The score of technical bid should be more than or equal to
minimum qualifying marks as mentioned in bid document. The system of assigning score shall be as per
the bid document.
[Link].2 Each page of the copy of documents / certificates in support of credentials, submitted by the
bidder, shall be self-attested by the bidder or authorized representative of the bidding firm. Self-attestation
shall include signature, stamp and date (on each page). Only, those documents will be considered for
evaluating bid, which are duly self-attested as above.
[Link].3 The bidders shall submit an affidavit on a stamp paper to the effect that all the documents
submitted by her along with her bid are true. This shall be mandatory in all bids. The bid shall be
summarily rejected if the bidder fails to submit this undertaking along with the bid.
After opening the financial bid, the tender committee shall verify the credentials of the bidder who is
declared as the lowest bidder (L1) for their authenticity. In case the credentials of L1 are not found to be in
order, her bid shall be treated as technically unresponsive and thus invalid. The process shall be repeated
for the next higher bidder till the valid L1 is established. If any document (or copy thereof) submitted by a
bidder is found to be false / forged:
(a) The bidder / each partner / member of the bidding firm shall be liable to legal actions apart from
punitive actions, as decided by competent authority of Railways. In such an eventuality, the bid (bid) shall
also be summarily rejected.
(b) If the contract has already been awarded, or Letter of Acceptance (LOA) has been issued and any, the
contract shall be terminated, irrespective of the stage of progress in execution of the work. In such an
eventuality, Security Deposit (SD), Performance Guarantee (PG) and partial / full payments otherwise due
to the contractor, in respect of the partial / full work executed by the contractor, shall be forfeited by the
Railways.
(c) Other punitive actions, like banning the bidder and partners / members of the biding firm for future
dealings with Indian Railways and / or the Government of India may also be taken by the Railway / Govt.
of India authorities.
2.6.4 Evaluation of Financial Bid
The financial proposal shall be evaluated to determine the lowest bidder.
In case, the evaluated financial offers of two or more technically qualified bidders are Lowest and same,
then the Bid of the bidder who is technically more sound (having scored higher marks in evaluation of
technical bid as per clause [Link]) shall be considered as the lowest. If the marks in the evaluation of
technical bids of the lowest bidders are also found to be equal, then the bid of the bidder with the higher
cumulative annual financial turnover over the last three years and the current financial year shall be
considered as the lowest.
2.7 Application for Registration for Approved List of Vendors

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2.7.1. Contracts for provision of services shall be entrusted for execution to contractors whose capabilities
and financial status have been investigated and approved to the satisfaction of the Railway. For this
purpose, a list of approved contractors for each category of services may be maintained in the Railway. The
said list is to be revised periodically once in a year or so by giving wide publicity through advertisements
etc.
A Contractor including a contractor who is already on the approved list shall apply to the competent
authority furnishing particulars regarding:
(a) her position as an independent contractor specifying the organization available with details or Partners
/ Staff employed with qualifications and experience;
(b) her capacity to undertake and carry out services satisfactorily as vouched for by a responsible official or
firm, with details about the transport equipment, tools and plants etc., required for the work maintained by
her;
(c) her previous experience of services rendered similar to that to be contracted for, in proof of which
original certificates or testimonials may be called for and their genuineness verified, if needs be, by
reference to the signatories thereof;
(f) her financial position;
2.7.2 An applicant shall clearly state the categories of services and the Area / Zone / Division(s) /
District(s) in which she desires registration in the list of approved contractors.
2.7.3 The selection of contractors for enlistment in the approved list would be done by a committee for
different value slabs as notified by Railway. The term for this approved list to be in force will also be
determined by the competent authority in Indian Railways.

2.7.4 An annual fee as prescribed by the Railway from time to time would be charged from such approved
contractors to cover the cost of sending notices to them and clerkage for bids etc.
2.8 Right of Railway to Deal with Bids
The Railway reserves the right of not to invite bids for any of railway service/s and when Bids are called to
accept a Bid in whole or in part or reject any Bid or all Bids without assigning reasons for any such action.
The authority for the acceptance of the Bid will rest with the Railway. It shall not be obligatory on the said
authority to accept the lowest Bid or any other Bid and no Bidders(s) shall demand any explanation for the
cause of rejection of their Bid nor the Railway to assign reasons for declining to consider or reject any
particular Bid/s.

2.8.1 If the bidder(s) deliberately gives / give wrong information in her / their tender or creates / create
circumstances for the acceptance of her / their tender, the Railway reserves the right to reject such tender at
any stage.
2.8.2 If the bidder(s) expire(s) after the submission of her / their tender or after the acceptance of her / their
tender, the Railway shall deem such tender cancelled. If a partner of a firm expires after the submission of
their tender or after the acceptance of their tender, the Railway shall deem such tender as cancelled, unless
the firm retains its character.

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2.8.3 If the bidder, whose bid has been found to be the lowest evaluated bid withdraws or whose bid has
been accepted, falls to sign the procurement contract as may be required, or falls to provide the security as
may be required for the performance of the contract or otherwise withdraws from the procurement process,
the Procuring Entity shall cancel the procurement process. Provided that the Procuring Entity, on being
satisfied that it is not a case of cartelization and the integrity of the procurement process has been
maintained, may, for cogent reasons to be recorded in writing, offer the next successful bidder an
opportunity to match the financial bid of the first successful bidder, and if the offer is accepted, award the
contract to the next successful bidder at the price bid of the first successful bidder. This clause shall not be
applicable for Consultancy contracts.

lll. BID DOCUMENTATION

3.1 Bid (Tender) Form
Bid (Tender) Forms shall embody the contents of the contract documents either directly or by reference and
shall be as per specimen form, Annexure — Il. Bid Forms shall be issued on payment of the prescribed fee
to the appropriate contractors on the list of approved contractors. Contractors not on the list of approved
contractors, will on payment of the prescribed fees, be furnished with Bid forms and they shall be required
to submit evidence regarding their financial status, previous experience and ability to execute the works.
MSEs registered with District Industries Centres, Khadi and Village Industries Commission, Khadi and
Village Industries Board, Coir Board, National Small Industries Corporation, Directorate of Handicraft and
Handloom, any other body specified by Ministry of MSME or Startups as recognised by Department of
Industrial policy & Promotion shall be supplied such Bid documents free of cost on confirmation
(photocopy! Xerox copy) of their evidence to this effect.

3.2 Omissions & Discrepancies

Should a Bidder find discrepancies in or omissions from the drawings or any of the Bid Forms or should
she be in doubt as to their meaning, she should at once notify the authority inviting Bidders who may send
a written instruction to all the Bidders. It shall be understood that every endeavour has been made to avoid
any error which can materially affect the basis of tender and successful Bidder shall take upon herself and
provide for the risk of any error which may subsequently be discovered and shall make no subsequent
claim on account thereof.
3.3 Earnest Money
3.3.1 The Bidder shall be required to deposit earnest money with the Bid for the due performance with
the stipulation to keep the offer open till such date as specified in the Bid, under the conditions of Bid. The
earnest money shall be as under —

Value of the Work Earnest Money Deposit (EMD)

a) For works / services estimated to cost

2% of the estimated cost of the work
up to Rs. 1 crore

b) For works/ services estimated to cost Rs. 2 lakh plus 1/2% (half Percent) of the excess of the
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estimated cost of work beyond Rs.1 crore subject to a

more than Rs 1 crore
maximum of Rs. 1 crore

Note:
 The earnest money shall be rounded to the nearest Rs.10. This eamest money shall be applicable
for all modes of Bidding.

 MSEs registered with District Industries Centres, Khadi and Village Industries Commission, Khadi
and Village Industries Board, Coir Board, National Small Industries Corporation, Directorate of
Handicraft and Handloom, any other body specified by Ministry of MSME or Startups as
recognised by Department of Industrial policy & Promotion shall be exempted from payment of
minimum EMD detailed in the bid.
3.3.2 It shall be understood that the Bid documents have been sold/issued to the Bidder and the Bidder is
permitted to bid in consideration of stipulation on their part, that after submitting her Bid she will not resile
from her/ their offer or modify the terms and conditions thereof in a manner not acceptable to the Manager.
Should the Bidder fail to observe or comply with the said stipulation, the aforesaid amount shall be liable
to be forfeited to the Railway.
3.3.3 If her Bid is accepted, this earnest money mentioned in sub clause 3.3.1 above will be returned to the
successful bidder after the submission and verification of the Performance Guarantees as per clause 4.11 of
this General Conditions of Contract. The Earnest Money of other Bidders shall, save as herein before
provided, be returned to them, but the Railway shall not be responsible for any loss or depreciation that
may happen thereto while in their possession, nor be liable to pay interest thereon.
3.3.4 The Earnest Money should be demanded in the form and manner as per the Latest instructions issued
by the Railway Board from time to time.

3.4 Cares in Submission of Bids

3.4.1 Before submitting a Bid, the Bidder shall be deemed to have satisfied herself by actual inspection of
the site and locality of the services, that all conditions liable to be encountered during the delivery of the
services are taken into account and that the rates she enters in the Bid forms are adequate and all-inclusive
to accord with the provisions in Clause — 4.42 of the General Conditions of Contract for the delivery of
services to the entire satisfaction of the Manager.
3.4.2 When the service is bidded for, by a firm or a company of contractors, the Bid shall be signed by the
individual legally authorized to enter into commitments on their behalf.
3.4.3 Railway shall not be bound by any power of attorney granted by the Bidder or by changes in the
composition of the firm made subsequent to the execution of the contract. It may, however, recognize such
power of attorney and changes after obtaining proper legal advice, the cost of which will be chargeable to
the contractor.

3.5 Execution of Contract Document

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The Bidder whose bid is accepted shall be required to appear in person at the office of concerned Manager,
as the case may be, or if a firm or corporation, a duly authorized representative shall so appear and execute
the contract document within 7 days after receipt of notice issued by the Railway that such documents are
ready; and failure to do so shall constitute a breach of the agreement affected by the acceptance of the bid
in which case the Railway may determine that such Bidder has abandoned the contract and there upon her
bid and acceptance thereof shall be treated as cancelled and the Railway shall be entitled to forfeit the full
amount of the Earnest Money of the bid and performance guarantees for the bid available with the Railway.
3.6 Form of Contract Document
Every contract shall be complete in respect of the document it shall so constitute. Not less than 3 copies of
the contract document shall be signed by the competent authority and the contractor — one copy given to
the contractor, one copy for the finance department and one copy for the contract manager. The form of
contract document shall be provided in the tender/bid documents for every individual work.
Specimen Bid and Agreement forms are placed as Annexures II and III

IV. GENERAL OBLIGATIONS

4.1 Execution Co-Relation and Intent of Contract Documents
The contract documents shall be signed in triplicate by the Railway and the Contractor. The contract
documents are complementary and what is called for by anyone shall be as binding as if called for by all,
the intention of the documents is to include all labour and materials, equipment and transportation
necessary for proper execution of the services. Materials or works/services not covered by or properly
inferable from any heading or class of the specifications shall not be supplied by the Railway to the
contractors unless distinctly specified in the contract documents. Materials or works/services described in
words which so applied have a well-known technical or trade meaning shall be held to refer to such
recognized standards.
4.1.1 If a service is transferred from the jurisdiction of one Railway to another Railway or to a Project
authority or vice versa while contract is in subsistence, the contract shall be binding on the Contractor and
the Successor Railway/Project in the same manner & take effect in all respects as if the Contractor and the
Successor Railway/Project were parties thereto from the inception and the corresponding officer or the
Competent Authority in the Successor Railway/Project will exercise the same powers and enjoy the same
authority as conferred to the Predecessor Railway/Project under the original contract/agreement entered
into.
4.1.2 If for administrative or other reasons the contract is transferred to the Successor Railway, the contract
shall; notwithstanding any things contained herein contrary there to, be binding on the Contractor and the
Successor Railway in the same manner and take effect in all respects as if the Contractor and the Successor
Railway had been parties thereto from the date of this contract.
4.2 Law Governing the Contract
The contract shall be governed by the law for the time being in force in the Republic of India.

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4.2.1 Compliance to Regulations and Bye-Laws

The Contractor shall conform to the provision of any statute relating to the services and regulations and
bye-laws of any local authority and of any water, drainage and lighting companies or undertakings, with
whose system the services are proposed to be provided and shall before making any variation from the
drawings or the specifications that may be necessitated by so confirming give to the Manager notice
specifying the variation proposed to be made and the reason for making the variation and shall not carry
out such variation until she has received instructions from the Manager in respect thereof. The Contractor
shall be bound to give all notices required by statute, regulations or bye-laws as aforesaid and to pay all
fees and taxes payable to any authority in respect thereof.
4.2.2 Communications to be in Writing
All notices, communication, reference and complaints made by the Railway or the Manager or the
Manager's Representative or the Contractor inter se concerning the works/ services shall be in writing and
no notice, communication, reference or complaint not in writing shall be recognized.
4.3 Service of Notices on Contractors
The Contractor shall furnish to the Manager the name, designation and address of her authorized agent and
all complaints, notices, communications and references shall be deemed to have been duly given to the
Contractor, if delivered to the Contractor or her authorised agent or left at or posted to the address so given
and shall be deemed to have been so given in the case of posting on day on which they would have reached
such address in the ordinary course of post or on the day on which they were so delivered or left. In the
case of contract by partners, any change in the constitution of the firm shall be forthwith notified by the
Contractor to the Manager.
4.4 Occupation and Use of Land
No land belonging to or in the possession of the Railway shall be occupied by the Contractor without the
permission of the Railway. The Contractor shall not use, or allow to be used, the site for any purposes other
than that of executing, or in relation to the execution of the services.
4.5 Assignment or Subletting of Contract
The Contractor shall not assign or sublet the contract or any part thereof or allow any person to become
interested therein in any manner whatsoever without the special permission in writing of the Railway. Any
breach of this condition shall entitle the Railway to rescind the contract under Clause 7.4 of these
Conditions and also render the contractor liable for payment to the Railway in respect of any loss or
damage arising or ensuing from such cancellation. The permitted subletting of services by the Contractor
shall not establish any contractual relationship between the sub-contractor and the Railway and shall not
relieve the Contractor of any responsibility under the Contract.
4.6 Railway Passes
No free Railway passes shall be issued by the Railway to the Contractor or any of her employees/ workers.
Wherever required ‘authority for entering restricted area’ or ‘authority for on board services’ shall be
provided.
4.7 Carriage of Materials
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No forwarding orders shall be issued by the Railway for the conveyance of Contractor's materials, tools
and plant by Rail which may be required for use in the services and the contractor shall pay full freight
charges at public tariff rates therefor.
4.8 Representation on Site

The Contractor shall, when she is not personally present on the site of the work place, keep a responsible
agent during working hours who shall on receiving reasonable notice, present herself to the Manager, and
orders given by the Manager or the Manager's representative to the agent shall be deemed to have the same
force as if they had been given to the Contractor. Before absenting herself, the Contractor shall furnish the
name and address of her agent for the purpose of this clause and failure on the part of the Contractor to
comply with this provision at any time will entitle the Railway to rescind the contract under Clause 7.4 of
these Conditions.
4.9 Relics, Treasures, Lost and Found

All gold, silver, oil and other minerals of any description and all precious stones, coins, treasures, relics
antiquities, lost and found etc. which shall be found in or upon the site shall be the property of the Railway
and the Contractor shall duly preserve the same to the satisfaction of the Railway and shall from time to
time deliver the same to such person or persons as the Railway may appoint to receive the same.
4.10 Indemnity by Contractors

The Contractor shall indemnify and save harmless the Railway, from and against, all actions, suit
proceedings, losses, costs, damages, charges, claims and demands of every nature and description brought
or recovered against the Railways by reason of any act or omission of the Contractor, her agents or
employees, in the execution of the services/works wherever applicable or in her guarding of the same. All
sums payable by way of compensation under any of these conditions shall be considered as reasonable
compensation to be applied to the actual loss or damage sustained, and whether or not any damage shall
have been sustained.
4.11 Performance Guarantee

4.11.1 Performance guarantee at a rate of 10% of the contractual value shall be deposited by the successful
bidder. The successful bidder shall have to submit a Performance Guarantee (PG) valuing 10% of the
contract value in four separate parts of 2.5 % each of the contract value, within 30 (thirty) days from the
date of issue of Letter of Acceptance (LOA). Extension of time for submission of PG beyond 30 (thirty)
days and upto the date of submission of PG from the date of issue of LOA may be given by the Authority
who is competent to sign the contract agreement. However, a penal interest of 15% per annum shall be
charged for the delay beyond 30 (thirty days, i.e. from 31% day after the date of issue of LOA. In case the
contractor fails to submit the requisite PG after 60 days from the date of issue of LOA, a notice shall be
served to the contractor to deposit the PG immediately however not exceeding 90 days from the date of
issue of LOA). In case the contractor fails to submit the requisite PG even after 90 days from the date of
issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against
that contract. The failed contractor shall be debarred from participating in re- tender for that work. In case
60" day is a bank holiday or office closure next working day should be considered as the last day for
submission of the PGs. Decision of Authority competent to sign the Contract Agreement would be final in
case of any dispute.

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4.11.2 The value of PG to be submitted by the, contractor will not change for variation upto 25% (either
increase or decrease). In case during the course of execution, value of the contract increases by more than
25% of the original contract value, an additional Performance Guarantee amounting to 10% (five percent)
for the excess value over the original contract value shall be deposited in four equal parts by the contractor.
On the other hand, if the value of Contract decreases by more than 25% of the original contract value,
Performance guarantee amounting to 10% of the decrease in the contract value shall be returned to
contractor. The PG amount in excess of required PG for decreased contract value, available with railways
shall be returned to the contractor duly safeguarding the interest of Railways.
4.11.3 The applicable Performance Guarantee shall be calculated as per the revised value of the contract
covering all variations upto the determination of the contract
4.11.4 If the penalty imposed exceeds 50% of the applicable maximum penalty (as per the revised value of
the contract), a PG equivalent to 25% of the applicable PG shall be forfeited. If the penalty imposed
exceeds 75% of the applicable maximum penalty, a PG equivalent to 50% of the applicable PG shall be
forfeited. The PGs shall be encashed after the completion of the contract.
4.11.5 The successful bidder shall submit the Performance Guarantees (PG) in any of the following forms,
amounting to 10% of the contract value —
(a) A deposit of cash;
(b) Irrevocable Bank Guarantee;
(c) Government Securities including State Loan Bonds at 5% below the market value;
(d) Deposit Receipts, Pay Orders, Demand Drafts and Guarantee Bonds. These forms of Performance
Guarantee could be either of the State Bank of India or of any of the Nationalized Banks;
(e) Guarantee Bonds executed or Deposits Receipts tendered by all Scheduled Banks;
(f) A Deposit in the Post Office Saving Bank;
(g) A Deposit in the National Savings Certificates;
(h) Twelve years National Defence Certificates;
(i) Ten years Defence Deposits;
(j) National Defence Bonds and
(k) Unit Trust Certificates at 5% below market value or at the face value whichever is less. Also, FDR in
favour of FA&CAOQ (free from any encumbrance) may be accepted.
Note - The instruments as listed above will also be acceptable for Guarantees in case of Mobilization
Advance.
4.11.6 The Performance Guarantees shall be submitted by the successful bidder after the Letter of
Acceptance (LOA) has been issued, but before signing of the contract agreement. These PGs shall be
initially valid upto the stipulated date of completion and maintenance period, if any plus 60 days beyond
that. In case, the time for completion of service gets extended, the contractor shall get the validity of PGs
extended to cover such extended time for completion and maintenance period, if any of service plus 60
days.
4.11.7 The Performance Guarantees (PGs) shall be released after physical completion of the work/ service
delivery based on 'Completion Certificate’ issued by the competent authority stating that the contractor has
completed the assigned services in all respects satisfactorily and passing of final bill based on “No Claims
Certificate’ from the contractor. In case any contract provides for warranty/ maintenance clause then 25 %
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of the Performance Guarantee would be retained till the warranty/ maintenance period is over and a
certificate to that effect is issued by the Manager.
4.11.8 Whenever the contract is rescinded, the Performance Guarantees shall be encashed/ forfeited. The
balance work or services for the same shall be got done independently without risk & cost of the failed
contractor. The failed contractor shall be debarred for a period of 2 years from the date of such rescindment
from participating in the bid which includes delivery of balance services of failed contract. If the failed
contractor is a Partnership firm, then every member/ partner of such a firm shall be debarred for a period of
2 years from the date of such rescindment from participating in the bid which includes delivery of balance
services of failed contract in his/her individual capacity.
4.11.9 The Manager shall not make a claim under the Performance Guarantee except for amounts to which
the President of India is entitled under the contract (not withstanding and/or without prejudice to any other
provisions in the contract agreement) in the event of —
(a) Failure by the contractor to extend the validity of the Performance Guarantee as described herein
above, in which event the Manager may claim the full amount of the Performance Guarantee. :
(b) Failure by the contractor to pay President of India any amount due, either as agreed by the contractor
or determined under any of the Clauses/Conditions of the Agreement, within 30 days of the service of
notice to this effect by Manager.
(c) The Contract being determined or rescinded under provision of the GCC, the Performance Guarantee
shall be forfeited in full and shall be absolutely at the disposal of the President of India.
4.12 Force Majeure

If at any time, during the continuance of this contract, the performance in whole or in part by either party of
any obligation under this contract shall be prevented or delayed by reason of any war, hostility, acts of
public enemy, civil commotion, sabotage, serious loss or damage by fire, explosions, epidemics, strikes,
lockouts or acts of God (hereinafter, referred to events) provided, notice of the happening of any such event
is given by either party to the other within 7 days from the date of occurrence thereof, neither party shall by
reason of such event, be entitled to terminate this contract nor shall either party have any claim for
damages against the other in respect of such non- performance or delay in performance, and works/
services under the contract shall be resumed as soon as practicable after such event has come to an end or
ceased to exist, and the decision of the Manager as to whether the works/ services have been so resumed or
not shall be final and conclusive, PROVIDED FURTHER that if the performance in whole or in part of any
obligation under this contract is prevented or delayed by reason of any such event for a period exceeding
120 days, either party may at its option terminate the contract by giving notice to the other party.
4.13 Illegal Gratification

4.13.1 Any bribe, commission, gift or advantage given, promised or offered by or on behalf to the
Contractor or her partner, agent or servant or, anyone on her behalf, to any officer or employee of the
Railway, or to any person on her behalf in relation to obtaining or execution of this or any other contract
with the Railway shall, in addition to any criminal liability which she may incur, subject contractor to the
rescission of the contract and all other contracts with the Railway and to the payment of any loss or damage
resulting from such decision and the Railway shall be entitled to deduct the amounts so payable from any
moneys due to the Contractor(s) under this contract or any other contracts with the Railway.
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4.13.2 The Contractor shall not lend or borrow from or have or enter into any monetary dealings or
transactions either directly or indirectly with any employee of the Railway and if she shall do so, the
Railway shall be entitled forthwith to rescind the contract and all other contracts with the Railway. Any
question or dispute as to the commission or any such offence or compensation payable to the Railway
under this Clause shall be settled by the General Manager of the Railway, in such a manner as she shall
consider fit & sufficient and her decision shall be final & conclusive. In the event of rescission of the
contract under this Clause, the Contractor will not be paid any compensation whatsoever except payments
for the work/ services rendered upto the date of rescission.
4.14 Contractor 's Understanding

It is understood and agreed that the Contractor has, by careful examination, satisfied herself as to the
nature, scope and location of the services, the type / character of equipment and facilities needed
preliminary to, and during the progress of the services, the general and local conditions, the labour
conditions prevailing therein and all other matters which can in any way affect the services under the
contract.
4.15 Commencement of Services

The Contractor shall commence the services within 15 days (unless specified otherwise) after the receipt by
her of an order in writing to this effect from the Manager or as directed by the Manager and shall proceed
with the same with due expedition and without delay.
4.16 Accepted Programme

The Contractor shall submit schedule of delivery of services, the details of organisation (in terms of labour
and supervisors) plant and machinery that she intends to utilize (from time to time) for execution of the
services. The programme of delivery of services amended as necessary by discussions with the Manager,
shall be treated as the agreed programme of the delivery of services for the purpose of this contract and the
contractor shall endeavour to fulfill this programme of delivery of services. The progress of delivery of
services shall be watched accordingly.
4.17 Compliance to Manager's Instructions

The Manager shall direct the order in which the several components of the services shall be provided and
the Contractor shall execute without delay all orders given by the Manager from time to time; but the
Contractor shall not be relieved thereby from responsibility for the due performance of the services in all
respects.
4.17.1 In cases, where performance or/and quality of services is/are found to be dissatisfactory, Manager or
his representatives shall impose penalty as mentioned in bid document, subject to cumulative penalty for
such dissatisfactory performance or/and quality of services does not exceeds 10% of original contract value
or as prescribed in the bid document.
4.18 Alterations to be Authorized

No alterations in or additions to or omissions or abandonment of any part of the services shall be deemed
authorised, except under instructions from the Manager, and the Contractor shall be responsible to obtain
such instructions in each and every case in writing from the Manager.
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4.19 Extra Services

Should services over and above those included in the contract require to be provided at the site, the
contractor shall have no right to be entrusted with the execution of such works/services which may be
carried out by another contractor or contractors or by other means at the option of the Railway.
4.20 Separate Contracts in Connection with Services

The Railway shall have the right to let other contracts in connection with the works/services. The
Contractor shall afford other contractors reasonable opportunity for the storage of their materials and the
execution of their works/services and shall properly connect and coordinate her work/services with theirs.
If any part of the Contractors works/services depends for proper execution or result upon the
works/services of another contractor(s), the Contractor shall inspect and promptly report to the Manager
any defects in such works/ services that render it unsuitable for such proper execution and results. The
Contractor's failure so to inspect and report shall constitute an acceptance of the other contractor's work as
fit and proper for the reception of her services, except as to defects which may develop in the other
contractor's work after the execution of her work.
4.21 Instructions of Manager's Representative

Any instructions or approval given by the Manager's representative to Contractor in connection with the
services shall bind the Contractor as though it had been given by the Manager provided always as follows-

(a) Failure of the Manager's representative to disapprove any work/ services or materials shall not
prejudice the power of the Manager thereafter to disapprove such services or material and to order the
rectification thereof.
(b) If the Contractor shall be dissatisfied by reason of any decision of the Manager's representative, she
shall be entitled to refer the matter to the Manager who shall there upon confirm or vary such decision.
4.22 Adherence to Specifications and Drawings

The whole of the works/ services shall be executed in perfect conformity with the specifications and
procedures (and drawings, wherever applicable) of the contract. If Contractor performs any act in a manner
contrary to the specifications or drawings or any of them and without such reference to the Manager, she
shall bear all the costs arising or ensuing there from and shall be responsible for all loss to the Railway.
4.22.1 Drawings and Specifications of the Works: The Contractor shall keep one copy of procedures and
Specifications at the site, in good order, and such contract documents as may be necessary, available to the
Manager or the Manager's Representative.
4.22.2 Ownership of Proprietary Information and Specifications: All procedures, documents,
drawings, processes and specifications and copies thereof furnished by the Railway to the Contractor are
deemed to be the property/ proprietary information of the Railway. They shall not be copied, distributed,
published, used in any form or on other services. With the exception of the signed contract set, all such
documentation in hard copy or soft copy format and other material, shall be returned by the Contractor to
the Railway, on completion/ termination of the Contract.

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4.22.3 Compliance with Contractor's Request for Details: The Manager shall furnish with reasonable
promptness, after receipt by her of the Contractor's request for the same, additional instructions by means
of procedures, specifications or otherwise, necessary for the proper execution of the services or any part
thereof. All such procedures, specifications and instructions shall be consistent with the Contract
Documents and reasonably inferable therefrom.
4.22.4 Meaning and Intent of Specification and Drawings: If any ambiguity arisesas to the meaning and
intent of any portion of the procedures, specifications and drawings or as to execution or quality of any
services or material, or as to the measurements of the services the decision of the Manager thereon shall be
final subject to the appeal (within 7 days of such decision being intimated to the Contractor) to the Chief
Manager who shall have the power to correct any errors, omissions, or discrepancies in aforementioned
items and whose decision in the matter in dispute or doubt shall be final and conclusive.
4.23 Working Timings

The Contractor shall have to carry out any required services round the clock as per directions of the
Manager/ Manager's representative.
4.24 Damage to Railway Property or Private Life and Property

The Contractor shall be responsible for all risk involved in the services rendered and for trespass and shall
make good at her own expense all loss or damage whether to the works/services themselves or to any other
property of the Railway or the lives, persons or property of others from whatsoever cause in connection
with the and this although all reasonable and proper precautions may have been taken by the Contractor,
and in case the Railway shall be called upon to make good any costs, loss or damages, or to pay any
compensation, including that payable under the provisions of the Workmen's Compensation Act or any
statutory amendments thereof to any person or persons sustaining damages as aforesaid by reason of any
act, or any negligence or omissions on the part of the Contractor; the amount of any costs or charges
including costs and charges in connection with legal proceedings, which the Railway may incur in
reference thereto, shall be charged to the Contractor. The Railway shall have the power and right to pay or
to defend or compromise any claim of threatened legal proceedings or in anticipation of legal proceedings
being instituted consequent on the action or default of the Contractor, to take such steps as may be
considered necessary or desirable to ward off or mitigate the effect of such proceedings, charging to
Contractor, as aforesaid, any sum or sums of money which may be paid and any expenses whether for
reinstatement or otherwise which may be incurred and the propriety of any such payment, defense or
compromise, and the incurring of any such expenses shall not be called in question by the Contractor.
4.25 Sheds, yards and Store Houses

The Contractor shall at her own expense provide herself with sheds, yards and Store houses in such
situations and in such numbers as in the opinion of the Manager is requisite for carrying on the services and
the Contractor shall keep at each such sheds, yards and store-houses a sufficient quantity of materials /
plant in stock as not to delay the carrying out of the services with due expedition and the Manager and the
Manager's representative shall have free access to the said sheds/yards/ store houses at any time for the
purpose of inspecting the stock of materials or plant so kept in hand, and any materials or plant which the
Manager may object to shall not be brought upon or used in the services, but shall be forthwith removed
from the sheds/yards/store houses by the Contractor

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4.26 Provision of Efficient and Competent Staff at Sites by the Contractor

4.26.1 The Contractor shall maintain efficient and competent staff to give the necessary directions to her
workers and to see that they provide their services in proper and desirable manner and shall employ only
such supervisors, workers & labour in or about the execution of any of these services as are careful and
skilled in the various trades. Daily record of such supervisors and labour shall be maintained.
4.26.2 The Contractor shall at once remove from the site any agents, permitted sub- contractor, supervisor,
worker or labour who shall be objected to by the Manager. If and whenever required by the Manager, she
shall submit a correct return showing the names of all staff and workers employed by her.
4.26.3 In the event of the Manager being of the opinion that the Contractor is not employing on the
services a sufficient number of staff and workers as is specified or otherwise for proper execution of the
services within the prescribed procedure and time, the Contractor shall forthwith on receiving intimation to
this effect deploy the additional number of staff and labour as specified by the Manager immediately and
failure on the part of the Contractor to comply with such instructions will entitle the Railway to rescind/
penalize the contract under suitable clauses of these/special conditions.
4.26.4 Deployment of Qualified Supervisors by the Contractor
(a) The contractor shall also employ qualified supervisors based on value of the contract and the extent of
services as prescribed in the Bid documents as ‘Special Conditions of Contract’ by the Tender Inviting
Authority.
(b) In case the contractor fails to employ the supervisor, as aforesaid in the above paragraph, she shall be
liable to pay penalty at the rates, as may be prescribed by the Ministry of Railways through separate
instructions from time to time for the default period for the provisions, as contained in this section-or as
provided for in the bid document.
(c) Number of qualified supervisors required to be deployed by the Contractor for various activities
contained in the service contract shall be specified in the tender documents by the tender inviting authority.
4.27 Skilled Labour/ Expertise and Testing

The whole of the services and/or supply of materials specified and provided in the contract or that may be
necessary to be done in order to form and complete any part thereof shall be executed in the best and most
substantial workers with expertise and in a workman like manner with materials of the best and most
approved quality of their respective kinds, agreeable to the particulars contained in or implied by the
specifications and as referred to in and represented by the drawings or in such other additional particulars,
instructions and drawings may be found requisite to be given during the carrying on of the services and to
the entire satisfaction of the Manager according to the instructions and directions which the Contractors
may from time to time receive from the Manager. The materials may be subjected to tests by means of such
machines, instruments and appliances as the Manager may direct and wholly at the expense of the
Contractor.
4.28 Removal of Improper Materials/ Tools and Plant

The Manager or the Manager's Representative shall be entitled to order from time to time:

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(a) The removal from the site within the time specified in the order of any materials which in their opinion
are not in accordance with the procedures/ specifications.
(b) The substitution of proper and suitable materials/ tools and plants, and
(c) In case of default on the part of the Contractor in carrying out such order, the Railway shall be entitled
to rescind the contract under Clause 7.4 of these conditions.
4.29 Facilities for Inspection

The Contractor shall afford the Manager and the Manager's Representative every facility for entering in
and upon every portion of the site at all hours for the purpose of inspection or otherwise and shall provide
all facilities of every kind required for the purpose and the Manager and the Manager's Representative shall
at all times have free access to every part of the site and to all places at which materials / tools and plant for
the services are stored or being prepared.
4.30 Temporary Works

All temporary works necessary for the proper execution of the services shall be provided and maintained
by the Contractor and subject to the consent of the Manager shall be removed by her at her expenses when
they are no longer required, and in such manner, as the Manager shall direct. In the event of failure on the
part of the Contractor to remove the temporary works, the Manager will cause them to be removed and cost
as increased by supervision and other incidental charges shall be recovered from the Contractor. If
temporary huts are provided by the Contractor on the Railway land for labour engaged by her for the
execution of services, the contractor shall arrange for handing over vacant possession of the said land after
the service is completed; if the contractor's labour refuse to vacate, and have to be rejected by the Railway,
necessary expenses incurred by the Railway in connection there with shall be bore by the Contractor.
4.31 Contractor to Supply Water for Works/ Services

4.31.1 Water Supply From Railway System: The Railway may supply to the Contractor part or whole of
the quantity of the water required for the execution of services from the Railway's existing water supply
system at or near the site of services on specified terms and conditions and free of cost (unless specified
otherwise), provided that the Contractor shall arrange, at her own expense, to effect the connections and lay
additional pipe lines and accessories on the site and that the Contractor shall not be entitled to any
compensation for interruption of failure of the water supply.
4.31.2 In case the Railway is unable to provide water for the services, the contractor shall be responsible
for the arrangements of supply of water necessary for the services.
4.32 Contractor to Arrange Supply of Electric Power for Services

4.32.1 Electric Supply From The Railway System: The Railway may supply to the Contractor part or whole
of the electric power wherever available and possible, required for execution of services from the Railway's
existing electric supply systems on specified terms and conditions free of cost (unless otherwise specified)
only for the services rendered provided the cost of arranging necessary connections shall be borne by the
Contractor and that the Contractor shall not be entitled to any compensation for interruption or failure of
the electric supply system.

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4.32.2 In case the Railway is unable to provide electricity for the services, the contractor shall be
responsible for the arrangements of supply of electricity necessary for the services.
4.33 Property in Materials and Plant

The materials and plant brought by the Contractor upon the site or on the land occupied by the Contractor
in connection with the services and intended to be used for the execution thereof shall immediately, as they
are brought upon the site of the said land, be deemed to be the property of the Railway. Such of them as
during the progress of the services are rejected by the Manager under Clause 4.25 of these conditions or are
declared by her not to be needed for the execution of the services or such as on the grant of the certificate
of completion remain unused, shall immediately on such rejection, declaration or grant cease to be deemed
the property of the Railway and the Contractor may then (but not before) remove them from the site or the
said land. This clause shall not in any way diminish the liability of the Contractor nor shall the Railway be
in any way answerable for any loss or damage which may happen to or in respect of any such materials or
plant either by the same being lost, stolen, injured or destroyed by fire, tempest or otherwise.
4.34 Tools, Plant and Materials Supplied by Railways

The Contractor shall take all reasonable care of all tools, plant and materials or other property whether of a
like description or not belonging to the Railway and committed to her charge for the purpose of the
services and shall be responsible for all damage or loss caused by her, her agents, permitted subcontractor,
or her workers or others while they are in her charge. The Contractors shall sign accountable receipts for
tools, plants and materials made over to her by the Manager and on completion of the services shall hand
over the unused balance of the same to the Manager in good order and repair, fair wear and tear excepted,
and shall be responsible for any failure to account for the same or any damage done thereto.
4.35 Hire of Railways’ Plant

The Railway may hire to the Contractor such plant/ machinery as DG sets, portable engines, pumps etc. for
use during execution of the services on such terms as may be specified in the special conditions or in a
separate agreement for Hire of Plant.
4.36 Precaution During Progress of Services

During the execution of services, unless otherwise specified, the Contractor shall at her own cost provide
the materials for and execute all services as is necessary for the safety, hygiene, satisfaction, elegance,
acceptance, proper handling of assets and shall ensure that no damage, injury or loss is caused or likely to
be caused to any person or assets or hindrance to other works / services.
4.37 Roads and Water Courses

Existing roads or water courses shall not be blocked, cut through, altered, diverted or obstructed in any way
by the Contractor, except with the permission of the Manager. All compensations claimed for any
unauthorized closure, cutting through, alteration, diversion or obstruction to such roads or water courses by
the Contractor or her agent or her staff shall be recoverable from the Contractor by deduction from any
sums which may become due to her in terms of contract, or otherwise according to law.
4.38 Provision of Access to Premises

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During progress of services in any street or thoroughfare, the Contractor shall make adequate provision for
the passage of traffic, for securing safe access to all premises approached from such street or thoroughfare
and for any drainage, water supply or means of lighting which may be interrupted by reasons of the
execution of the services and shall react and maintain at her own cost barriers, lights and other safeguards
as prescribed by the Manager, for the regulation of the traffic, and provide watchers necessary to prevent
accidents.
4.39 Safety of Public
The Contractor shall be responsible to take all precautions to ensure the safety of the public whether on
public or Railway property and shall post such look out, such persons as may, in the opinion of the
Manager, be required to comply with regulations appertaining to the service.
4.40 Use of Explosives

No explosives shall be used for the services rendered or on the site by the Contractor.
4.41 Suspension of Services

4.41.1 The Contractor shall on the order of the Manager, suspend the progress of the services or any part
thereof for such time or times and in such manner as the Manager may consider necessary, and shall during
such suspension, properly protect and secure the work so far as is necessary in the opinion of the Manager.
If such suspension is —
I. Provided for in the contract, or
ii. Necessary for the proper execution of the services or by the reason of extraneous conditions or by some
default on the part of the Contractor, and or
iii. Necessary for the safety of the services or any part thereof
4.41.2 The Contractor shall not be entitled to the extra costs, if any, incurred by her during the period of
suspension of the service, but in the event of any suspension ordered by the Manager for reasons other than
aforementioned and when each such period of suspension exceeds 14 days, the Manager shall extend the
time of service for completion of the services as the Manager may consider proper, having regard to the
period or periods of such suspensions and to such compensations as the Manager may consider reasonable
in respect of salaries or wages paid by the Contractor to her employees/ workers during the periods of such
suspension.
4.41.3 Suspension Lasting More Than 3 Months: If the progress of the services or any part thereof is
suspended on the order of the Manager for more than three months at a time, the Contractor may serve a
written notice on the Manager requiring permission within 15 days from the receipt thereof to proceed with
the service or that part thereof in regard to which progress is suspended and if such permission is not
granted within that time the Contractor by further written notice so served may, but is not bound to, elect to
treat the suspension where it affects part only of the service as an omission of such part or where it affects
the whole of the services, as an abandonment of the contract by the Railway.
4.42 Rates for Items of Services

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The rates, entered in the accepted Schedule of Rates of the Contract are intended to provide for services
duly and properly completed in accordance with the General and Special (if any) Conditions of the
Contract and the Specifications / Procedures specified in the contract document including drawings
wherever applicable along with all labour, materials, tools, and plants etc.
4.42.1 Rates for Extra Items of Services: Any additional item of work carried out by the Contractor on
the instructions of the Manager which is not included in the accepted Schedules of Rates shall be executed
at the rate agreed upon between the Manager and the Contractor before the execution of such items of
work.
The Contractors shall be bound to notify the Manager at least seven days before the necessity arises for the
execution of such items of works that the accepted Schedule of Rates does not include rate or rates for the
extra work involved.
The rates payable for such items shall be decided at the meeting to be held between the Manager and
Contractor, in as short a period as possible after the need for the special item has come to the notice. In
case the Contractor fails to attend the meeting after being notified to do so or in the event of no settlement
being arrived at, the Railway shall be entitled to execute the extra works by other means and the Contractor
shall have no claim for loss or damage that may result from such procedure.
4.42.2 Provided that if the Contractor commences work or incurs any expenditure in regard thereto before
the rates as determined and agreed upon as lastly hereuntofore- mentioned, then and in such a case the
Contractor shall only be entitled to be paid in respect of the services carried out or expenditure incurred by
her prior to the date of determination of the rates as aforesaid according to the rates as shall be fixed by the
Manager. However, if the Contractor is not satisfied with the decision of the Manager in this respect, she
may appeal to the Chief Manager within 30 days of getting the decision of the Manager, supported by
analysis of the rates claimed. The Chief Manager's decision after hearing both the parties in the matter
would be final and binding on the Contractor and the Railway.
4.43 Clearance of Site on Completion

On completion of the services, the Contractor shall clear away and remove from the site all tools /plants
and surplus materials, rubbish and temporary works of every kind and leave the whole of the site clean to
the satisfaction of the Manager. No final payment in settlement of the accounts for the services shall be
paid, held to be due or shall be made to the, Contractor till, in addition to any other condition necessary for
final payment, site clearance shall have been affected by her, and such clearance may be made by the
Manager at the expense of the Contractor in the event of her failure to comply with this provision within 7
days after receiving notice to that effect.
Should it become necessary for the Manager to have the site cleared at the expenses of the Contractor, the
Railway shall not be held liable for any loss or damage to such of the Contractor's property as may be on
the site and due to such removal, there from which removal may be affected by means of public sales of
such materials and property or in such a way as deemed fit and convenient to the Manager.
4.44 Digital Contract Labour Management System

A comprehensive computerized contract labour management system for creating a database and monitoring
attendance is crucial for efficient performance and for safeguarding workers’ welfare. This system shall be
put in place by the contractor or by Indian Railways, as decided by the Railways and as per the special
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conditions of contract. Use of this system shall be mandatory in labour intensive service contracts i.e.
housekeeping etc. In other service contracts, a special mention of the applicability of this clause shall be
made in the special conditions of the contract.
The important features of the computerized contract labour management system shall be as follows —
 Database - Maintenance of certified identification and demographic details for contract workers —
A detailed bio data of each contract worker shall be saved in the system with details like —
personal, educational, family, hometown, police verification, medical, insurance, PF registration
etc.
 Certified identification — Identification data issued by Government or reliable agencies like
Nation ID (Aadhar Card), Voters ID, driving license, PAN card etc. to be stored in the application.
 Identity Card generation — An identity card with details like site, blood group, photographs can
be incorporated on the card, along with a colour band based on the category of labour.
 Biometric details like — photograph, fingerprint, iris-map to be stored in the system for authentic
identification of contract workers. Biometric authorization is a reliable method to curb Proxy
Attendance.
 Attendance data — All entries and exits to be recorded in time and attendance machines — using
fingerprints or proxy card. Another attendance in between the entry and final exit can also be
recorded, on case by case basis, if deemed necessary.
 Restricted Entry — A contract worker can be denied entry on infringement of any vital
requirement like expiry of medical or accident Insurance, driving license, contract terms, work
permit dates etc.
 Shift Logic — The system can be used to manage the shift logic — so that overtime, double shifts
if any can be logged in the system and systemic restrictions can be placed to prevent double shifts,
unless Railway supervisor approves the request digitally/otherwise.
 Time sheet generation — Time sheets shall be generated on a daily, weekly or monthly basis or
any other frequency as specified by the Indian Railways.
 Consumables — Material issued to or returned by contract worker is recorded in the system, as
applicable (optional)
 Safety, Performance and Labour Law training — The dates of safety, performance and labour
law training to be stored in the system which can raise an alert when a refresher training is due.
In case of Emergency —
 Who's where — in case of an emergency and disaster recovery it is important and the application
provides the count and location of contract workers.
 Alerts - Pre-defined email and SMS alerts, notifications and exception reports can be generated
which can be utilized by Railways staff, supervisors etc. to manage service contracts efficiently.
4.45 Environmental Requirements
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The Contractor shall, when working on the Premises, perform its obligations under the Contract in
accordance with the Indian Railways environmental policy, which is to conserve energy, water, wood,
paper and other resources, reduce waste and phase out the use of ozone depleting substances and minimise
the release of greenhouse gases, volatile organic compounds and other substances damaging to health and
the environment,
4.46 Data Protection

4.46.1 Where the Contractor is processing Personal Data, as a Data Processor for the Indian Railways, the
Contractor shall:
(a) Process the Personal Data only in accordance with instructions from Indian Railways (which may be
specific instructions or instructions of a general nature) as set out in this Contract or as otherwise notified
by Indian Railways;
(b) Comply with all applicable laws;
(c) Process the Personal Data only to the extent; and in such manner as is necessary for the provision of the
Provider's obligations under this Contract or as is required by Law or any Regulatory Body;
(d) Implement appropriate technical and organisational measures to protect the Personal Data against
unauthorized or unlawful Processing and against accidental loss, destruction, damage, alteration or
disclosure. These measures shall be appropriate to the harm which might result from any unauthorized or
unlawful Processing, accidental loss, destruction or damage to the Personal Data and having regard to the
nature of the Personal Data which is to be protected;
(e) Take reasonable steps to ensure the reliability of its staff and agents who may have access to the
Personal Data;
(f) Obtain prior written consent from the Authority in order to transfer the Personal Data to any sub-
contractor for the provision of the Services;
(g) Not cause or permit the Personal Data to be transferred, stored, accessed, viewed or processed outside
of India without the prior written consent of the Indian Railways
(h) Ensure that all staff and agents required to access the Personal Data are informed of the confidential
nature of the Personal Data and comply with the obligations set out in this clause
(i) Ensure that none of the staff and agents publish disclose or divulge any of the Personal Data to any
third parties unless directed in writing to do so by the Railways
(j) Not disclose Personal Data to any third parties in any circumstances other than with the written consent
of the Railways or in compliance with a legal obligation imposed upon the Railways; and
4.46.2 Notify the Indian Railways (within five Working Days) if it receives:
a) a request from a Data Subject to have access to that person's Personal Data; or
b) a complaint or request relating to the Indian Railways’ obligations under the law;

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4.46.3 The provision of this clause 4.46 shall apply during the Contract Period and indefinitely after its
expiry.
4.47 Intellectual Property Rights

4.47.1 All Intellectual Property Rights in any guidance, specifications, instructions, toolkits, plans, data,
drawings, databases, software, patents, patterns, models, designs or other material (the "IP Materials"):
(a) Furnished to or made available to the Contractor by or on behalf of the Railways shall remain the
property of the Railways; and
(b) prepared by or for the Contractor on behalf of the Railways for use, or intended use, in relation to the
performance by the Contractor of its obligations under the Contract shall belong to the Railways;
and the Contractor shall not, and shall ensure that the Staff shall not, (except when necessary for the
performance of the Contract) without prior Approval, use or disclose any Intellectual Property Rights in the
IP Materials.
4.47.2 The Contractor hereby assigns to the Railways, with full title guarantee, all Intellectual Property
Rights which may subsist in the IP Materials prepared in accordance with clause 4.47.1 (b). This
assignment shall take effect on the date of the Contract or as a present assignment of future rights that will
take effect immediately on the coming into existence of the Intellectual Property Rights produced by the
Contractor. The Contractor shall execute all documentation necessary to execute this assignment.
4.47.3 The Contractor shall waive or procure a waiver of any moral rights subsisting in copyright produced
by the Contract or the performance of the Contract.
4.47.4 The Contractor shall ensure that the third-party owner of any Intellectual Property Rights that are or
which may be used to perform the Contract, grants to the Railways a non-exclusive licence or, if itself a
licensee of those rights, shall grant to the Railways an authorised sub-licence, to use, reproduce, modify,
develop and maintain the Intellectual Property Rights in the same. Such licence or sub-licence shall be non-
exclusive, perpetual, royalty free and irrevocable and shall include the right for the Railways to sub-
license, transfer, novate or assign to other Contracting Authorities, the Replacement Contractor or to any
other third party supplying services to the Railways.
This is particularly relevant to any digital contract management system developed for Indian Railways as
per clause 4.44.
4.47.5 The Contractor shall not infringe any Intellectual Property Rights of any third party in supplying the
Services and the Contractor shall, during and after the Contract Period, indemnify and keep indemnified
and hold the Railways harmless from and against all actions, suits, claims, demands, losses, charges,
damages, costs and expenses and other liabilities which the Railways may suffer or incur as a result of or in
connection with any breach of this clause.
4.47.6 The Railways shall notify the Contractor in writing of any claim or demand brought against the
Railways for infringement or alleged infringement of any Intellectual Property Right in materials supplied
or licensed by the Contractor.

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4.47.7 The Contractor shall at its own expense conduct all negotiations and any litigation arising in
connection with any claim for breach of Intellectual Property Rights in materials supplied or licensed by
the Contractor, provided always that the Contractor:
(a) shall consult the Railways on all substantive issues which arise during the conduct of such litigation and
negotiations;
(b) shall take due and proper account of the interests of the Railways; and
(c) shall not settle or compromise any claim without the Railways’ prior written consent (not to be
unreasonably withheld or delayed).

4.47.8 The Railways shall at the request of the Contractor afford to the Contractor all reasonable assistance
for the purpose of contesting any claim or demand made or action brought against the Railways or the
Contractor by a third party for infringement or alleged infringement of any third party Intellectual Property
Rights in connection with the performance of the Contractor's obligations under the Contract and the
Contractor shall indemnify the Railways for all costs and expenses (including, but not limited to, legal
costs and disbursements) incurred in doing so.
4.47.9 If a claim, demand or action for infringement or alleged infringement of any Intellectual Property
Right is made in connection with the Contract or in the reasonable opinion of the Contractor is likely to be
made, the Contractor shall notify the Railways and, at its own expense and subject to the consent of the
Railways (not to be unreasonably withheld or delayed), use its best endeavours to:
(a) modify any or all of the Services without reducing the performance or functionality of the same, or
substitute alternative Services of equivalent performance and functionality, so as to avoid the infringement
or the alleged infringement, provided that the provisions herein shall apply mutates mutandis to such
modified Services or to the substitute Services; or
(b) procure a licence to use and supply the Services, which are the subject of the alleged infringement, on
terms which are acceptable to the Railways,
And, in the event that the Contractor is unable to comply with sub-clauses (a) or (b) above within twenty
Working Days of receipt of the Contractor's notification the Railways may terminate the Contract with
immediate effect by notice in writing.
4.47.10 The Contractor grants to the Railways a royalty-free, irrevocable and non- exclusive license (with a
right to sub-license) to use any Intellectual Property Rights that the Contractor owned or developed prior to
the Commencement Date and which the Railways reasonably requires in order exercise its rights and take
the benefit of this Contract including the Services provided.

V. VARIATIONS, MEASUREMENT AND PAYMENTS

5.1 Extension of Time
Subject to any requirement in the contract as to completion of any portions or portions of the works before
completion of the whole, the contractor shall fully and finally complete the whole of the works comprised
in the contract (with such modifications as may be directed under conditions of this contract) by the date
entered in the contract or extended date in terms of the following clauses. However, care may be taken to
ensure that the extension in service contracts (other than Consultancy contracts) is on the ground that new
contract has not been finalized.
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5.1.1 Extension Due to Modification

If ‘any modifications have been ordered which in the opinion of the Manager have materially increased the
magnitude of the services, then such extension of the contracted date of completion may be granted as shall
appear to the Manager to be reasonable in the circumstances, provided moreover that the Contractor shall
be responsible for requesting such extension of the date as may be considered necessary as soon as the
cause thereof shall arise and in any case not less than one month before the expiry of the date fixed for
completion of the services.
5.1.2 Extension for Delay Not Due to Railways or Contractor
If in the opinion of the Manager, the progress of services has any time been delayed by any act or neglect
of Railway's employees or by other contractor employed by the Railway under Clause 4.20 of these
Conditions or in executing the work/service not forming part of the contract but on which contractor's
performance necessarily depends or by reason of proceeding taken or threatened by or dispute with
adjoining or to neighboring owners or public authority arising otherwise through the Contractor's own
default etc. or by the delay authorized by the Manager pending arbitration or in consequences of the
contractor not having received in due time necessary instructions from the Railway for which she shall
have specially applied in writing to the Manager or her authorized representative then upon happening of
any such event causing delay, the Contractor shall immediately give notice thereof in writing to the
Manager within 15 days of such happening, but shall nevertheless make constantly her best endeavours to
bring down or make good the services and shall do all that may be reasonably required of her to the
satisfaction of the Manager to proceed with the services.
The contractor may also indicate the period for which the services is likely to be delayed and shall be
bound to ask for necessary extension of time. The Manager on receipt of such request from the contractor
shall consider the same and shall grant such extension of time as in her opinion is reasonable having regard
to the nature and period of delay and the type and quantum of work affected thereby. No other
compensation shall be payable for works so carried forward to the extended period of time, the same rates,
terms and conditions of contract being applicable as if such extended period of time was originally
provided in the original contract itself.
5.1.3 Extension for Delay Due to Railways
In the event of any failure or delay by the Railway, to hand over the Contractor possession of the site
necessary for the execution of the services, or to give the necessary notice to commence the services, or to
provide the necessary drawings or instructions or any other delay caused by the Railway due to any other
cause whatsoever, then such failure or delay shall in no way affect or vitiate the contract or alter the
character thereof or entitle the contractor to damages or compensation therefore, but in any such case, the
Railway may grant such extension or extensions of the completion date as may be considered reasonable.
5.2 Extension of Time for Delay Due to Contractor
5.2.1 The time and uninterrupted delivery of services shall be deemed to be the essence of the contract and
the service must be completed not later than the date(s) as specified in the contract. If the contractor fails to
complete the services within the time/manner as specified in the contract for the reasons other than the
reasons specified in Clause 5.1, the Railway may, if satisfied that the service delivery can be completed by
the contractor within reasonable short time thereafter, allow the contractor for further extension of time as
the Manager may decide. On such extension, the Railway will be entitled without prejudice to any other
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right and remedy available on that behalf, to recover from the contractor as agreed damages and not by way
of penalty a sum equivalent to 0.10% of the contract value of the service for each week or part of the week.
5.2.2 For the purpose of this clause, the contract value of the services shall be taken as value as per contract
agreement including any supplementary contract agreement issued. Provided also, that the total amount of
liquidated damages under this condition, shall not exceed 5% In lieu, competent authority while granting
extension to the currency of contract under Clause 5.2 of GCC may also consider levy of token penalty, as
deemed fit based on the merit of the case of total value of the contract.
This section does not limit Indian Railways from imposing any penalties under other provisions and such
penalties will be applicable concurrently.
Provided further, that if the Railway is not satisfied that the service can be completed by the Contractor and
in the event of failure on the part of the contractor to complete the service within further extension of time
allowed as aforesaid, the Railway shall be entitled without prejudice to any other right or remedy available
in that behalf, to appropriate the contractor's Performance Guarantee and rescind the contract under Clause
7.4 of these Conditions, whether or not actual damage is caused by such default.
5.3 Modification to Contract to be in Writing
In the event of any of the provisions of the contract requiring to be modified after the contract documents
have been signed, the modifications shall be made in writing and signed by the Railway and the Contractor
and no service shall proceed under such modifications until this has been done. Any verbal or written
arrangement abandoning, modifying, extending, reducing or supplementing the contract or any of the terms
thereof shall be deemed conditional and shall not be binding on the Railway unless and until the same is
incorporated in a formal instrument and signed by the Railway and the Contractor, and till then the Railway
shall have the right to repudiate such arrangements.
5.3.1 Powers of Modification To Contract: The Manager on behalf of the Railway shall be entitled by order
in writing to enlarge or extend, diminish or reduce the services or make any alterations in their design,
character position, site, quantities, dimensions or in the method of their execution or in the combination
and use of materials for the execution thereof or to order any additional service to be done or any services
not to be done and the contractor will not be entitled, to any compensation for any increase/reduction in the
quantities of work but will be paid only for the actual amount of work done and for approved materials
supplied against a specific order.
5.3.2 Unless otherwise specified in the special conditions of the contract, the accepted variation in quantity
of each individual item of the contract would be upto 25% of the quantity originally contracted. The
contractor shall be bound to carry out the service at the agreed rates and shall not be entitled to any claim
or any compensation whatsoever upto the limit of 25% variation in quantity of individual item of services.
5.3.3 Valuation of Variations: The variation referred to in Sub-Clause 5.3.2 of this Clause shall in no
degree affect the validity of the contract; but shall be performed by the Contractor as provided therein and
be subject to the same conditions, stipulations and obligations as if they had been originally and
expressively included and provided for in the Specifications and Drawings and the amounts to be paid
therefore shall be calculated in accordance with the accepted Schedule of Rates. Any extra items/quantities
of work falling outside the purview of the provisions of Sub-Clause 5.3.2 above shall be paid for at the
rates determined under Clause — 4.42 1 of these Conditions.

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5.3.4 Variations in Quantities During Execution of Service Contracts The procedure detailed below shall
be adopted for dealing with variations in quantities during execution of service contracts —
1. Individual NS items in contracts shall be operated with variation of plus or minus 25% and payment
would be made as per the agreement rate. For this, no finance concurrence would be required.
2. In case an increase in quantity of an individual item by more than 25% of the agreement quantity is
considered unavoidable, the same shall be got executed by floating a fresh tender. If floating a fresh tender
for operating that item is considered not practicable, quantity of that item may be operated in excess of
125% of the agreement quantity subject to the following conditions:
(a) Operation of an item by more than 125% of the agreement quantity needs the approval of an officer of
the rank not less than S.A. Grade;
(i) Quantities operated in excess of 125% but upto 140% of the agreement quantity of the concemed item,
shall be paid at 98% of the rate awarded for that item in that particular tender;
(ii) Quantities operated in excess of 140% but upto 150% of the agreement quantity of the concerned item
shall be paid at 96% of the rate awarded for that item in that particular tender; :
(iii) Variation in quantities of individual items beyond 150% will be prohibited and would be permitted
only in exceptional unavoidable circumstances with the concurrence of associate finance and shall be paid
at 96% of the rate awarded for that item in that particular tender.
(b) The variation in quantities as per the above formula will apply only to the Individual items of the
contract and not on the overall contract value.
(c) Execution of quantities beyond 150% of the overall agreement value should not be permitted and, if
found necessary, should be only through fresh tenders or by negotiating with existing contractor, with prior
personal concurrence of FA&CAO / FA&CAO(C) and approval of General Manager.
3. In cases where decrease is involved during execution of contract —
(a) The contract signing authority can decrease the items upto 25% of individual item without finance
concurrence.
(b) For decrease beyond 25% for individual items or 25% of contract agreement value, the approval of an
officer not less than rank of S.A. Grade may be taken, after obtaining 'No Claim Certificate’ from the
contractor and with finance concurrence, giving detailed reasons for each such decrease in the quantities.
(c) It should be certified that the work proposed to be reduced will not be required in the same work.
4. The limit for varying quantities for minor value items shall be 100% (as against 25% prescribed for other
items). A minor value item for this purpose is defined as an item whose original agreement value is less
than 1 % of the total original agreement value.
5. As far as SOR items are concerned, the limit of 25% would apply to the value of SOR schedule as a
whole and not on individual SOR items. However, in case of NS items, the limit of 25% would apply on
the individual items irrespective of the manner of quoting the rate (single percentage rate or individual item
rate).
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6. For the tenders accepted at Zonal Railways level, variations in the quantities will be approved by the
authority in whose powers revised value of the agreement lies.
7. For tenders accepted by General Manager, variations upto 125% of the original agreement value may be
accepted by General Manager.
8. The aspect of vitiation of tender with respect to variation in quantities should be checked and avoided. In
case of vitiation of the tender (both for increase as well as decrease of value of contract agreement, the
vitiation shall be on the contractor's account (payment shall be restricted to the lowest calculated value of
all valid offers).
5.4 Claims
5.4.1 Monthly Statement of Claims
The Contractor shall prepare and furnish to the Manager once in every month an account giving full and
detailed particulars of all claims for any additional expenses to which the Contractor may consider herself
entitled to and of all extra or additional works ordered by the Manager which she has executed during the
preceding month and no claim for payment for and such work will be considered which has not been
included in such particulars.
5.4.2 Signing Of "No Claim" Certificate
The Contractor shall not be entitled to make any claim whatsoever against the Railway under or by virtue
of or arising out of this contract, nor shall the Railway entertain or consider any such claim, if made by the
Contractor, after she shall have signed a "No Claim" Certificate in favour of the Railway in such form as
shall be required by the Railway after the works are finally measured up. The Contactor shall be debarred
from disputing the correctness of the items covered by "No Claim" Certificate or demanding a clearance to
arbitration in respect thereof.
5.5 MEASUREMENTS
5.5.1 Quantities in Schedule Annexed to Contract
The quantities set out in the accepted Schedule of Rates with items of works quantified are the estimated
quantities of the services and they shall not be taken as the actual and correct quantities of the work to be
executed by the Contractor in fulfilment of her obligations under the contract. ’
5.5.2 Measurement of Services/ Works
(a) Measurements shall be recorded on the basis of day to day records maintained by way of check list or
any other methodology provided in the Bid documents.
(b) The Contractor shall be paid for the works/services at the rates in the accepted Schedule of Rates and
for extra services at rates determined under Clause 4.42.1 of these Conditions on the measurements taken
by the Manager or the Manager's representative in accordance with the rules prescribed for the purpose by
the Railway. The quantities for items the unit of which in the accepted Schedule of Rates is 100 or 1000
shall be calculated to the nearest whole number, any fraction below half being dropped and half and above
being taken as one; for items, the unit of which in the accepted Schedule of Rates is single, the quantities
shall be calculated to two places of decimals. Such measurements will be taken of the work in progress
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from time to time and at such intervals as in the opinion of the Manager shall be proper having regard to
the progress of work. The date and time on which ‘on account’ or final measurements are to be made shall
be communicated to the Contractor who shall be present at the site and shall sign the results of the
measurements (which shall also be signed by the Manager or the Manager's representative) recorded in the
official measurements book as an acknowledgement of her acceptance of the accuracy of the
measurements.
(c) Failing the Contractor's attendance, the service may be measured up in her absence and such
measurements shall, notwithstanding such absence, be binding upon the Contractor whether or not she shall
have signed the measurement books provided always that any objection made by her to measurement shall
be duly investigated and considered in the manner set out as following:
It shall be open to the Contractor to take specific objection to any recorded measurements or Classification
on any ground within seven days of the date of such measurements. Any re-measurement taken by the
Manager or the Manager's representative in the presence of the Contractor or in her absence after due
notice has been given to her in consequence of objection made by the Contractor shall be final and binding
on the Contractor and no claim whatsoever shall thereafter be entertained regarding the accuracy and
classification of the measurements.
(d) If an objection raised by the Contractor is found by the Manager to be incorrect, then the Contractor
shall be liable to pay the actual expenses incurred in measurements.
5.6 PAYMENTS
5.6.1 "On-Account” Payments
The Contractor shall be entitled to be paid from time to time by way of "On-Account" payment only for
such works as in the opinion of the Manager she has executed in terms of the contract. All payments due on
the Manager's or the Manager's Representatives certificates of measurements shall be subject to any
deductions which may be made under these presents provided always that the Manager may by any
certificate make any correction or modification in any previous certificate which shall have been issued by
her and that the Manager may withhold any certificate, if the services or any part thereof are not being
carried out to her satisfaction.
5.6.2 Rounding Off Amounts
The total amount due on each certificate shall be rounded off to the nearest rupee, i.e. sum less than 50
paise shall be omitted and sums of 50 paise and more upto Rs.1 will be reckoned as Rs. 1.
5.6.3 On Account Payments Not Prejudicial to Final Settlement
"On-Account" payments made to the Contractor shall he without prejudice to the final making up of the
accounts (except where measurements are specifically noted in the Measurement Book as "Final
Measurements" and as such have been signed by the Contractor) and shall in no respect be considered or
used as evidence of any facts stated in or to be inferred from such accounts nor of any particular quantity of
service having been executed nor of the manner of its execution being satisfactory.
5.6.4 Manner of Payment: The payments would be released in the manner as specified by the Railway
Board time to time.

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5.6.5. Points to be ensured while Passing the Bills

(a) Railways shall ensure that all relevant records are to be certified by the contractor and the employee
nominated by Principal Employer, before passing the bills of the contractor including but not limited to
those provided in the Annexures lll — XI.
(b) Railways shall ensure that Gross Minimum wages including ESI, PF etc. is paid as per the actuals by
the contractor to all workers. In case, if the Contractor fails to pay the gross minimum wages, the same
shall be informed to Regional Labour Commissioner.
(c) Railways shall ensure that all the relevant records related to statutory obligations and agreement
conditions are submitted by the contractor for claiming monthly bills.
(d) Railways shall upload the details of the contractor online on the Employees’ Provident Fund
Organisation (EPFO) portal. Every month, Railways may, if required, cross — verify the contractor's
monthly statements regarding PF and other contributions from the EPFO’s records online.
(e) The contractor is required to provide documentary evidence to show the coverage of all her workers or
labour under the schemes mentioned in Clause 6.17 on an annual basis. Upon verification of the records by
Railways, payments can be released to the contractor.
5.7 Price Variation Clause (PVC)
The Price Variation Clause is devised as per the composition of an individual work/ service contract can be
incorporated by the tender inviting authorities based on the following general principles. The amount
payable on account of Price variation shall be settled every quarter.
5.7.1 Applicability: Price Variation Clause (PVC) shall be applicable only for tenders of value as
prescribed by the Ministry of Railways through instructions/circulars issued from time to time and for long
term contracts, where delivery period extends beyond 18 months.* Materials supplied free of cost by
Railway to the contractors shall fall outside the purview of Price Variation Clause. If, in any case, accepted
offer includes some specific payment to be made to consultants or some materials supplied by Railway free
or at fixed rate, such payments shall be excluded from the gross value of the work for the purpose of
payment/recovery of price variation. (‘refer to rule 225, General Financial Rules, 201 7)
5.7.2 Base Month: The Base Month for ‘Price Variation Clause’ shall be taken as mori of opening of bids
including extensions, if any, unless otherwise stated elsewhere. The quarter for applicability of PVC shall
commence from the month following the month of opening of bid. The Price Variation shall be based on
the average Price Index and minimum wages of the quarter under consideration.
5.7.3 Validity: Rates accepted by Railway Administration shall hold good till completion of service
contract period and no additional individual claim shall be admissible on account of fluctuations in market
rates, increase in taxes/any other levies/tolls etc. except that payment/recovery for overall market situation
shall be made as per Price Variation Clause given hereunder.
5.7.4 Adjustment for variation in prices of material, labour, fuel etc. shall be determined in the manner
prescribed.

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5.7.5 Components of various items in a contract on which variation in prices be admissible, shall be
Material, Labour and Fuel and shall be taken based on their proportions in the estimate. However, for fixed
components, no price variation shall be admissible.
5.7.6 The price escalation shall be calculated based on the following clauses i.e. 5.7.6 (a) and 5.7.6 (b) and
the higher of the two shall be paid.
(a) The percentages of labour component, material component, fuel component etc. in various types of
Services shall be as under:

Component Percentage Component Percentage

(A) Housekeeping Contracts

Labour Component 70% Other Material Components 15%

Fuel Component 0% Fixed Component 15%

(B) Consultancy Contracts

Labour Component 80% Other Material Components 5%

Fuel Component 0% Fixed Component 15%

(C) Other Contracts

Labour Component 35% Fuel Component 15%

Material Components 35% Fixed Component 15%

* It shall not be considered for any price variation

Formulae: The Amount of variation in prices in several components (labour material etc.) shall be worked
out by the following formulae :

(i)

(ii)

(iii)
Where: L Amount of price variation in Labour
M Amount of price variation in Materials

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F Amount of price variation in Fuel

Lc % of Labour Component
Mc % of Material Component
Fc % of Fuel Component
W Gross value of work done (services performed) by contractor as per on-account bill(s),
excluding cost of materials supplied by Railway at fixed price. This will also exclude
specific payment, if any, to be made to the consultants engaged by contractors (such
payment shall be indicated in the contractor's offer)
LB Consumer Price Index Number for Industrial Workers - All India: Published in R.B.I.
Bulletin for the base period
LQ Consumer Price Index Number for Industrial Workers - All India: Published in R.B.1.
Bulletin for the average price index of the 3 months of the quarter under consideration
MB Index Number of Wholesale Prices — By Groups and Sub-Groups: All commodities — as
published in the R.B.I. Bulletin for the base period

MQ Index Number of Wholesale Prices — By Groups and Sub-Groups: All commodities — as

published in the R.B.I. Bulletin for the average price index of the 3 months of the quarter
under consideration
FB Index Number of Wholesale Prices — By Groups and Sub-Groups for Fuel and Power as
published in the R.B.1. Bulletin for the base period
FQ Index Number of Wholesale Prices — By Groups and Sub-Groups for Fuel and Power as
published in the R.B.l. Bulletin for the average price index of the 3 months of the quarter
under consideration

b) "In contracts where the number of workforce is specified, any revision in the minimum wages etc.
notified through government order/circulars etc. after the date of submission of bids shall be compensated
by the Railway administration, on an actual basis.
5.7.7 For material portion, the relevant RBI Bulletin (index numbers of wholesale prices in India - by
Groups and Sub-groups — Averages) shall be used.
5.7.8 The demands for escalation of cost shall be allowed on the basis of provisional indices made
available by Reserve Bank of India and revision in the minimum wages. Any adjustment needed to be done
based on the finally published indices shall be made as and when they become available.
5.8 Price Variation During Extended Period of Contract

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The price adjustment as worked out above, i.e. either increase or decrease shall be applicable upto the
stipulated date of completion of work including the extended period of completion where such extension
has been granted under Clause 5.1 of the Standard General Conditions of Contract. However, where
extension of time has been granted due to contractor's failure under Clause 5.2, price adjustment shall be
done as follows:
5.8.1 In case the indices or minimum wages increase above the indices or minimum wages applicable to
the last month of original completion period or the extended period under Clause 5.1, the price adjustment
for the period of extension granted under Clause
5.2 shall be limited to the amount payable as per the Indices or minimum wages applicable to the last
month of the original completion period or the extended period under Clause 5.1 of the General Conditions
of Contract: as the case may be.
5.8.2 In case the indices fall below the indices or minimum wages applicable to the last month of original/
extended period of completion under Clause 5.1, as the case may be; then the lower indices or minimum
wages, as the case may be, shall be adopted for the price adjustment for the period of extension under
Clause 5.2 of the Standard General Conditions of Contract.
5.9 Maintenance of Works contemplated in the Services
Service contracts may have an element of work included to provide services. In such cases the content of
this para shall be applicable —
The Contractor shall at all times during the progress and continuance of the service and also for the period
of maintenance of Works contemplated in the Service specified, if any in the Bid Form after the date of
passing of the certificate of completion by the Manager or any other earlier date subsequent to the
completion of the work that may be fixed by the Manager be responsible for and effectively maintain and
uphold in good substantial, sound and perfect condition all and every part of the work and shall make good
from time to time and at all times as often as the Manager shall require, any damage or defect that may
during the above period arise in or be discovered or be in any way connected with the work, provided that
such damage or defect is not directly caused by errors in the contract documents, act of providence or
insurrection or civil riot, and the Contractor shall be liable for and shall pay and make good to the Railway
or other persons legally entitled thereto whenever required by the Manager so to do, all losses, damages,
costs and expenses they or any of them may incur or be put or be liable to by reasons or in consequence of
the operations of the Contractor or of her failure in any respect.
5.9.1 Certificate of Completion of Works contemplated in Service: As soon as in the opinion of the
Manager, the work has been completed and has satisfactorily passed any final test or tests that may be
prescribed, the Manager shall issue a certificate of completion duly indicating the date of completion in
respect of the work and the period of maintenance of the work, if applicable, shall commence from the date
of completion mentioned in such certificate. The Manager may also issue such a certificate indicating date
of completion with respect to any part of the work (before the completion of the whole of work), which has
been both completed to the sat isfa ction of the Manager and occupied or used by the Rail way. When any
such certificate is given in respect of part of a work, such part shall be considered as completed and the
period of maintenance, if any shall commence from the date of completion mentioned in the completion
certificate issued for that part of the work.

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5.9.2 Maintenance Certificate: In case maintenance period is specified in the contract, for any part the
Contract, it shall not be considered as completed until a Maintenance Certificate shall have been signed by
the Manager stating that the works have been completed and maintained to her satisfaction. The
maintenance Certificate shall be given by the Manager upon the expiration of the period of maintenance or
as soon thereafter as any works ordered during such period pursuant to Clause 5.9.1 of these Conditions
shall have been completed to the satisfaction of the Manager and full effect shall be given to this Clause
notwithstanding the taking possession of or using the works/ services or any part thereof by the Railway.
5.9.3 Contractor Not Absolved By Completion Certificate: The Certificate of Completion in respect of
the works referred to in Sub-Clause 5.9.1 of this Clause shall not absolve the Contractor from her liability
to make good any defects imperfe ctions, shrinkages or faults which may appear during the period of
maintenance specified in the Bid arising in the opinion of the Manager from materials or quality of workers
not in accordance with the drawings or specifications or instruction of the Manager, which defects,
imperfections, shrinkages or faults shall upon the direction in writing of the Manager be amended and
made good by the Contractor at her own cost; and in case of default on the part of Contractor, the Manager
may employ labour and materials or appoint another Contractor to amend and make good such defects,
imperfections, shrinkages and faults and all expenses consequent thereon and incidental thereto shall be
borne by the Contractor and shall be recoverable from any moneys due to her under the contract.
5.9.4 Approval Only by Maintenance Certificate: No certificate other than Maintenance certificate
referred to in Clause 5.9.3 of the Conditions shall be deemed to constitute approval of any work or other
matter in respect of which it is issued or shall be taken as an admission of the due performance of the
contract or any part thereof or of the accuracy of any claim or demand made by the Contractor or of
additional varied work having been ordered by the Manager nor shall any other certificate conclude or
prejudice any of the powers of the Manager.
5.10 Certificate of Completion of Services: As soon as in the opinion of the Manager, the service has
been completed and has satisfactorily passed any final test or tests that may be prescribed, the Manager
shall issue a certificate of completion duly indicating the date of completion. The Manager may also issue
such a certificate indicating date of completion with respect to any part of the service (before the
completion of the whole of service), which has been completed to the satisfaction of the Manager. When
any such certificate is given in respect of part of a service, such part shall be considered as completed.
5.10.1 Approval Only by Completion Certificate: No certificate other than completion certificate
referred to in Clause 5.10 of the Conditions shall be deemed to constitute approval of any service or other
matter in respect of which it is issued or shall be taken as an admission of the due performance of the
contract or any part thereof or of the accuracy of any claim or demand made by the Contractor or of
additional varied work having been ordered by the Manager nor shall any other certificate conclude or
prejudice any of the powers of the Manager.
5.11 Cessation of Railway’s Liability: The Railway shall not be liable to the Contractor for any matter
arising out of or in connection with the contract of the execution of the works/ services unless the
Contractor shall have made a claim in writing in respect thereof before the issue of the Completion
Certificate for service / Maintenance Certificate for works contemplated in service, as the case may be
under this clause.
5.12 Unfulfilled Obligations: Notwithstanding the issue of Completion Certificate for service /
Maintenance Certificate for works contemplated in service as the case may be the Contractor and (subject
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to Clause 5.11) the Railway shall remain liable for the fulfillment of any obligation incurred under the
provision of the contract prior to the issue of the Completion Certificate for service / Maintenance
Certificate for works contemplated in service which remains unperformed at the time such certificate is
issued and for the purposes of determining the nature and extent of any such obligations, the contract shall
be deemed to remain in force between the parties thereto.

5.13 Final Payment On the Manager's certificate of completion in respect of the services, adjustment shall
be made and the balance of account based on the Manager or the Manager's representative's certified
measurements of the total quantity of service executed by the Contractor upto the date of completion and
on the accepted schedule of rates and for extra works on rates determined under Clause 4.42.1 of these
Conditions shall be paid to the Contractor, subject always to any deduction which may be made under these
presents, and further subject to the Contractor having delivered to the Manager either a full account in
detail of all claims she may have on the Railway in respect of the works or having delivered "No Claim
Certificate” and the Manager having after the receipt of such account given a certificate in writing that such
claims are correct, that the whole of the works to be done under the provisions of the Contracts have been
completed, that they have been inspected by her since their completion and found to be in good and
substantial order, that all properties, works and things, removed, disturbed or injured in consequence of the
services have been properly replaced and made good and all expenses and demands incurred by or made
upon the Railway for or in the respect of damage or loss by from or in consequence of the services, have
been satisfied agreeably and in conformity with the contract. ’
5.13.1 Post Payment Audit: It is an agreed term of contract that the Railway reserves to itself the right to
carry out a post-payment audit and / or technical examination of the works / services and the final bill
including all supporting vouchers, abstracts etc. and to make a claim on the contractor for the refund of any
excess amount paid to her, if as a result of such examination any over-payment to her is discovered to have
been made in respect of any services done or alleged to have been done by her under the contract.
5.13.2 Production of Vouchers etc. by the Contractor: For a contract of more than Rs 2 crore, the
contractor shall, whenever required, produce or cause to be produced for examination by the Manager any
quotation, invoice, cost or other account, book of accounts, voucher, receipt, letter, memorandum, paper of
writing or any copy of or extract from any such document and also furnish information and returns verified
in such manner as may be required in any way relating to the execution of this contract or relevant for
verifying or ascertaining cost of execution of this contract (the decision of the Manager on the question of
relevancy of any documents, information or return being final and binding on the parties). The contractor
shall similarly produce vouchers etc., if required to prove to the Manager, that materials supplied by her,
are in accordance with the specifications laid down in the contract.
5.13.3 If any portion of the service in a contract of value more than Rs 2 crore be carried out by a sub-
contractor or any subsidiary or allied firm or company (as per Clause 4.5 of the General Conditions of
Contract), the Manager shall have power to secure the hooks of such sub-contract or any subsidiary or
allied firm or company, through the contractor, and such books shall be open to her inspection.
5.13.4 The obligations imposed by Sub Clause 5.13.2 & 5.13.2 is without prejudice to the obligations of
the contractor under any statute, rules or orders binding on the contractor.
5.13.5 Signature on Receipts for Amounts: Every receipt for money which may become payable or for any
security which may become transferable to the Contractors under these presents, shall, if signed in the
partnership name by any one of the partners of a Contractor's firm be a good and sufficient discharge to the
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Railway in respect of the moneys or security purported to be acknowledged thereby and in the event of
death of any of the Contractor, partners during the pendency of the contract, it is hereby expressly agreed
that every receipt by anyone of the surviving Contractor partners shall if so signed as aforesaid be good and
sufficient discharge as aforesaid provided that nothing in this Clause contained shall be deemed to
prejudice or effect any claim which the Railway may hereafter have against the legal representative of any
contractor partner so dying for or in respect to any breach of any of the conditions of the contract, provided
also that nothing in this clause contained shall be deemed to prejudice or effect the respective rights or
obligations of the Contractor partners and of the legal representatives of any deceased Contractor partners
inter se.

VI. LABOUR LAWS AND RELATED OBLIGATIONS

6.1 Independent Contractor
6.1.1 The status of the Contractor shall be that of an independent contractor. The Contractor, its
employees, agents and any subcontractors performing under this Contractare not employees or agents of
the State or any agency, division or department of the State simply by virtue of work performed pursuant to
this Contract. Neither the Contractornor its employees shall be considered employees of the Railways or
the Govt. of India/State simply by virtue of work performed pursuant to this Contract.
6.1.2 To ensure compliance of labour laws in a service contract the bidder shall bedisqualified for
consideration of award of the bid if she/they have been levied with apenalty for violation of labour laws for
three times in the last two years (from the date ofopening of tender) by the appropriate enforcing agency
like the Labour Commissioner etc. The declaration to this effect shall be furnished by the bidder as a part
of his biddocument. A format in this regard shall be made a part of the bid document. In case this
declaration is found to be false, process for ‘banning of business’ against the bidder/contractor shall be
initiated as per extent rules.
6.1.3 Indian Railways may also undertake measures, as decided by competent authority, to ensure labour
welfare for contract workers, as deemed fit, such as:
a) Helpline for complaints from labour regarding payment of wages, work site facilities,sexual harassment
etc.
b) Provision for recording anonymous complaints from workers, citizens etc. regarding violation of labour
laws by Contractor
6.1.4 The Railways shall ensure that the contractor shall pay the wages to their workers not below the rate
of minimum wages, as notified by the State Government or [Link], whichever is higher,
through the bank transfer. The contractor will be required to submit every month, documentary evidence in
the form of Bank Statement of having transferred the gross minimum wages to each of the workers. Failure
to do so will entail in Indian Railways taking up any measure to ensure the payment of wages including,
but not limited to, withholding contractor's on-account bills.

6.2 Legal Obligations

The contractor shall be responsible for carrying out all legal obligations as may be required by the law.
Broadly they are as under:
 Contractor Labour (Regulation and Abolition) Act, 1970

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 Minimum Wages Act, 1948

 Payment of Wages Act, 1936
 The Workman's Compensation Act, 1923
 Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952
 Employees’ State Insurance Act, 1948
 Employees’ Pension Scheme, 1995
 Factories Act, 1948
 Enforcement of Employment of Manual Scavengers and construction of Dry
 Latrines (Prohibitions) Act, 1993
 Child Labour Act, 1986
 Apprentices Act, 1961
 Equal Remuneration Act , 1976
 Safai Karamcharis Act, 1993
 Industrial Disputes Act, 1947
 Maternity Benefit Act, 1961
 Trade Unions Act, 1926
 Payment of Bonus Act, 1965
 Payment of Gratuity Act, 1972
 Industrial Employment (Standing Orders) Act, 1946
 Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

6.3 Labour Law Awareness

6.3.1 The contractor has toe mandatorily provide a comprehensive day-long training carried out by a
certified Third Party agency for the awareness of labour laws, grievance redressal mechanism and other
provisions applicable to her staff, workers, labour employed by her directly or indirectly in service of the
Railways. The contractor must submit relevant documentary proof to Railways of having conducted such a
training to all workers.
6.3.2 The contractor must provide a comprehensive booklet (that is approved by Indian Railways)
containing all the relevant updated labour legislations, rules and other applicable provisions, to every
worker at the outset of the contract in the local vernacular language.
While all the laws mentioned in Clause 6.2 are applicable to labour, some of the statutory provisions of the
key legislations are provided as follows —

6.4 Provisions of Contract Labour (Regulation and Abolition) Act, 1970/ Rules 1950
6.4.1 The Contractor shall comply with the provision of the Contract Labour (Regulation and Abolition)
Act, 1970 and the Contract Labour (Regulation and Abolition) Central Rules, 1971 as modified from time
to time, wherever applicable and shall also indemnify the Railway from and against any claims under the
aforesaid Act and the Rules.
6.4.2 The registration of the principal employer and the establishment shall be ensured before the
commencement of the contract.
6.4.3 Contractors employing more than 20 workers shall obtain License from the Asst, Labour
Commissioner before the commencement of the work and continue to have a valid license until the
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completion of the work. Any failure to fulfill the requirement shall attract the penal provision of the
Contract arising out of the resultant non-execution of the work.
6.4.4 The Contractor shall send half yearly return in Form XXIV (in duplicate), provided in Annexure VIII
to Indian Railways and to the Licensing Officer, so as to reach the Railways and Licensing Officer
concemed not later than 30 days from the close of the half year. (Half year for the purpose of this rule
means “a period of 6 months commencing from 1st January and 1st July of every year).
6.4.5 The Contractor shall pay to the labour employed by her directly or through subcontractors the wages
as per provision of the aforesaid Act and the Rules wherever applicable. The Contractor shall,
notwithstanding the provisions of the contract to the contrary, cause to be paid the wages to labour
indirectly engaged on the works including any engaged by sub-contractors in connection with the said
work, as if the labour had been immediately employed by her.
6.4.6 In respect of all labour directly or indirectly employed in the work for performance ofthe contractor's
part of the contract, the Contractor shall comply with or cause to be complied with the provisions of the
aforesaid Act and Rules wherever applicable.
6.4.7 In every case in which, by virtue of the provisions of the aforesaid Act or the Rules, the Railway is
obliged to pay any amount of wages to a worker employed by the Contractor or her sub-contractor in
execution of the work or to incur any expenditure on account of the contingent liability of the Railway, due
to the contractor's failure to fulfill her statutory obligations under the aforesaid Act or the rules, the
Railway will recover from the Contractor, the amount of wages so paid or the amount of expenditure so
incurred and without prejudice to the rights of the Railway under the Section 20, Sub-Section (2) and
Section 2, Sub-Section (4) of the aforesaid Act.
The Railway shall be at liberty to recover such amount or part thereof by deducting it from any sum due by
the Railway to the contractor whether under the contract or otherwise.
The Railway shall not be bound to contest any claim made against it under Sub-Section (1) of Section 20
and Sub-Section (4) of Section 21 of the aforesaid Act except on the written request of the Contractor and
upon her giving to the Railway full security for all costs for which the Railway might become liable in
contesting such [Link] decision of the Railway regarding the amount actually recoverable from the
contractor as stated above shall be final and binding on the Contractor.
6.4.8 The actual area of working i.e. Station/Colony shall be registered with the regional, central labour
commission office.

6.4.9 Principal Employer & Duties

[Link] Principal Employer is:
(a) In relation to any office or department of the Government or a local authority, the head of that office or
department or such other officer as the Government or the local authority, as the case may be, may specify
in this behalf,
(b) in any other establishment, any person responsible for the supervision and control of the establishment.

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[Link] Duties of Principal Employer: It is the duty of the Principal Employer to ensure the amenities as
described below under Sections 17, 18, 19 of the Act, shall be provided by the Contractor within the
prescribed time limit. Otherwise, such amenities shall be provided by the Principal Employer and the
necessary deductions shall be made to the extent facilities provided. (Section 20).
6.4.10 Contractor's Responsibilities: The following provisions shall be made by the contractor under the
law-
(a) Canteen - The necessary refreshment stalls shall be provided for the workers where the workforce is
more than 100 by the Contractor (section 16).
b) Rest Rooms — Provision of rest rooms is essential wherein the labour is required to halt at night in
connection with the work (section 17) .
(c) Drinking Water & Sanitation — Provision of wholesome drinking water/ urinals/washrooms/washing
facilities/supply of dungaree cloth, soap solution, coconut oil etc. shall be ensured to the contract labour
(Section 18).
Contractor shall permit inspection of all drinking water and sanitation arrangements at all times by the
Manager, the Manager's Representative or the Medical Staff of the Railway.
Should the contractor fail to make the adequate sanitary arrangements, these will be provided by the
Railway and the cost therefore recovered from the Contractor.
(d) First Aid Facilities — Provision of First Aid facility shall be provided and maintained by the
contractor during all working hours. The first aid box shall be equipped with prescribed contents as
provided in Annexure XVI at the working place. (Section 19) First aid boxes shall be provided and
maintained so as to be readily assessable during all working hours at the rate of not less than 1 box for 150
contract labour or part there of ordinarily employed.
6.4.11 Payment of Wages:
(a) The responsibility for payment of wages lies with the contractor (Section 21) who shall be responsible
for payment of wages to each worker employed by her as contract labour and such wages shall be paid
before the expiry of such period as may be prescribed.
(b) Every Principal Employer shall nominate a representative duly authorized by her to be present at the
time of Disbursement of wages by the contractor and it shall be the duty of such representative to certify
the amounts paid as wages in such manner as may be prescribed.
(c) In case the contractor fails to make payment of wages within the prescribed period or makes short
payment, then the Principal employer shall be liable to make payment of wages in full or the unpaid
balance due, as the case may be, to the contract labour employed by the contractor and recover the amount
so paid from the contractor.
(d) The Minimum Rate of Wages for all Workers as notified by Regional Labour Commissioner shall be
paid through Nationalized Banks.
(e) The Contractor shall ensure the Bank remittance of salaries for all her employees and necessary
documents in this connection shall be furnished to the Railways for claiming monthly bills.

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(f) In case of revision of rates of minimum wages, the contractor must also submit documents regarding
revision notifications of Minimum wages (Wages and VDA) and proof of payment to the labour with
revised rates.
(g) Date of payment of wages to workers by the Contractor must be as follows-

Employees less than one thousand (1000) Employees more than one thousand (1000)
Before expiry of the seventh (7) day after the Before the expiry of tenth (10) day after the last day of
last day of wage period wage period

(h) Any worker terminated by the contractor, the wages earned by the worker shall be paid before expiry
of second working day from the day on which their employment is terminated.
(i) All payments of wages shall be made on a working day at the work place and during the working hours.
Final payment shall be made within 48 hours of the last working day.
(j) Deductions: Wages shall be paid without any deductions of any kind except those specified by the state
government and permissible under the payment of wages act 1936
6.5 Minimum Wages Act, 1948/ Rules 1950
The Contractor shall be responsible for ensuring compliance with the provision of the Minimum Wages
Act, 1948 (hereinafter referred to as the “said Act”) and the Rules made there under in respect of any
employees directly or through petty contractors or
sub- contractors employed by her/them.
Following are the salient features of the Minimum Wages Act, 1948 for which the contractor shall produce
a certificate of compliance which shall be verified by the railway manager and placed on record.
6.5.1 Wages to Labour:
(a) The Contractor shall display of Notices in English and Hindi/Local vernacular language in the
workplace and other wise make all workers aware regarding the minimum rates of wages fixed, hours of
work, wage period, abstract of laws & rules madethere under, date & place of payment, Name, address &
contact details of the Labour Enforcement Officer.
(b) The contractor shall maintain the Register of Muster Roll, Register of Wages (Form XVII as provided
in the Annexure VI), Register of Fines, Register of deductions for damages/loss, Register of Overtime at
the workplace in the prescribed formats under the law.
(c) The contractor shall issue monthly wage slips as per Form XIX provided in Annexure VII to all workers
showing the details of the gross wages, deductions if any and the net wages.
(d) The Contractor shall submit Annual Return in the prescribed form to theconcerned Labour Enforcement
Officer (Central).
6.5.2 Proof of Payment of Wages: Bank remittance of salaries of all the Contractor's workers and to
produce the documents to the effect to Railways for claiming monthly bills.

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6.5.3 Weekly Rest: The contractor shall also provide weekly rest on staggered basis to all workers and
comply with all other provisions of the law.
6.6 Provisions of Payments of Wages Act

The Contractor shall comply with the provisions of the Payment of Wages Act, 1936 and the rules made
there-under in respect of all employees directly or through petty contractors or sub-contractors employed
by her in the services/works. If in compliance with the terms of the contract, the Contractor directly or
through petty contractors or sub-contractors shall supply any labour to be used wholly or partly under the
direct orders and control of the Manager whether in connection with the works to be executed hereunder or
otherwise for the purpose of the Manager, such labour shall nevertheless be deemed to comprise persons
employed by the contractor and any moneys which may be ordered to be paid by the Manager shall be
deemed to be moneys payable by the Manager on behalf of the Contractor and the Manager may on failure
of the Contractor to repay such money to the Railways deduct the same from any moneys due to the
Contractor in terms of the contract. The Railway shall be entitled to deduct from any moneys due to the
contractor (whether under this contract or any other contract) all moneys paid or payable by the Railway by
way of compensation of aforesaid or for costs of expenses in connection with any claim thereto and the
decision of the Manager upon any question arising out of the effect or force of this Clause shall be final and
binding upon the Contractor.
6.7 Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952

The Contractor shall comply with the provisions of Para 30 & 36-B of the Employees Provident Fund
Scheme, 1952; Paras 3 & 4 of Employees’ Pension Scheme, 1995; and Para 7 & 8 of Employees Deposit
Linked Insurance Scheme, 1976; as modified from time to time through enactment of "Employees
Provident Fund & Miscellaneous Provisions Act, 1952", wherever applicable and shall also indemnify the
Railway from and against any claims under the aforesaid Act and the Rules.
6.7.1 Employees’ Provident Fund Scheme, 1952
[Link] Payment of Contributions
(a) The employer shall, in the first instance, pay both the contribution payable by herself (in this Scheme
referred to as the employer's contribution) and also, on behalf of the member employed by her directly or
by or through a contractor, the contribution payable by such member (in this Scheme referred to as the
member's contribution).
(b) In respect of employees employed by or through a contractor, the contractor shall recover the
contribution payable by such employee (in this Scheme referred to as the member's contribution) and shall
pay to the principal employer the amount of member's contribution so deducted together with an equal
amount of contribution (in this Scheme referred to as the employer's contribution) and also administrative
charges.
(c) It shall be the responsibility of the principal employer to pay both the contribution payable by herself in
respect of the employees by or through a contractor and also administrative changes.
Explanation: For the purposes of this paragraph, the expression “administrative charges” means such
percentage of the pay (basic wages, deamness allowance, retaining allowance, if any, and cash value of
food concessions admissible thereon) for the time being payable to the employees other than an excluded
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employee, and in respect of which Provident Fund Contribution are payable as the Central Government
may, in consultation with the Central Board and having regard to the resources of the Fund for meeting its
normal administrative expenses fix.}
6.7.2 Employees’ Pension Scheme, 1995
Para 3 (1): From and out of the contributions payable by the employer in each month under Section 6 of
the “Act” or under the rules of the Provident Fund of the establishment which is exempted either under
clauses (a) and (b) of sub-section (i) of Section 17 of the Act or whose employees are exempted under
either paragraph 27 or paragraph 27-A of the Employees’ Provident Fund Scheme, 1952, a part of
contribution representing 8.33 percent of the Employee's pay shall be remitted by the employer to the
Employees’ Pension fund within 15 days of the close of every month by a separate bank draft or cheque on
account of the Employees’ Pension Fund contribution in such manner as may be specified in this behalf by
the Commissioner. The cost of the remittance, if any, shall be borne by the employer.
Para 3(2): The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the
members of the Employees’ Pension Scheme and credit the contribution to the Employees’ Pension Fund:
Para 4: Payment of Contribution:
(a) The employer shall pay the contribution payable to the Employees’ Pension Fund in respect of each
member employed by her directly or by or through a contractor.
(b) It shall be the responsibility of the Principal employer to pay the contributions payable to the
Employees’ Pension Fund by herself in respect of the employees directly employed by her and also in
respect of the employees employed by or through a contractor.
6.7.3 Employees’ Deposit Linked Insurance Scheme, 1976
[Link] Contribution (Para 7 & 8):
(a) The contribution payable by the employer and the Central Government under sub-section (2) and sub-
section (3) of Section 6-c of the Act, shall be calculated on the basis of the basic of the basic wages,
dearness allowance (including the cash value of any food concession) and retaining allowance, if any,
actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis.
Provided that where the monthly pay of an employee exceeds fifteen thousand rupees, the contribution
payable in respect of her by the employer and the Central Government shall be limited to the amounts
payable on a monthly pay of fifteen thousand rupees including dearness allowance, retaining allowance (if
any) and cash value of food concession.
(b) The contribution by the employer shall be remitted by her together with administrative charges at such
rate as the Central Government may fix from time to time under sub-section 4 of Section 6-c of the Act, to
the Insurance Fund within fifteen days of the close of every month by a separate bank draft or cheque or by
remittance in cash in such manner as may be specified in this behalf by the Commissioner. The cost of
remittance, if any, shall be borne by the employer.
(c) It shall be the responsibility of the employer to pay the contribution payable by herself in respect of the
employees directly employed by her and also in respect of the employees employed by or through a
contractor.
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[Link] Reporting of Accidents to Labour: The Contractor shall be responsible for the safety of all
employees directly or through petty contractors or sub-contractor employed by her on the works and shall
report serious accidents to any of them however and wherever occurring on the works to the Manager or
the Manager's Representative and shall make every arrangement to render all possible assistance.
[Link] Duties of Contractors : With reference to the provisions of Clause 6.7 above, it shall be the
primary duty of the employer (contractor) to ensure compliance with the provisions of the said Acts. Every
contractor shall, within seven days of the close of every month (or any other period specified by the
Railways), submit to the principal employer a documentary proof of having complied with the
aforementioned Acts (as applicable) which shall be mandatory before the on account bills are cleared.
The Contractor(s) shall_conform to all laws, bye-laws rules and regulations for the time being in force
pertaining to the employment of local or imported labour and shall take all necessary precautions to ensure
and preserve the health and safety of all staff employed directly or through petty Contractors or Sub —
Contractors on the works/services.
[Link] Duties of Indian Railways
Indian Railways shall upload the details of all the contractors under their employ on the EPFO portal online
in order to ensure compliance of the contractor with the labour laws and rules implemented by the
Employees’ Provident Fund Organisation.
6.8 Provisions of Workmen’s Compensation Act

6.8.1 This Act facilitates to provide for the payment by certain classes of employers to their workers of
compensation for injury by accident.
6.8.2 It is the Employer's liability to pay the compensation to a worker for death or personal injury resulting
into total or partial disablement or occupation disease caused to a worker arising out of and during the
course of employment (Section 3). The amount of compensation is as per the Section 4 of the Act.
6.8.3 The contractor shall accept liability for compensation in accordance with the provisions of the
Workmen's" Compensation Act, 1923 or any statutory modification thereof for the time being in force in
respect of the persons employed by her/ him.
6.8.4 In every case in which by virtue of the provisions of Section 12 Sub-Section (1) of the Workmen's
Compensation Act 1923, Railway is obliged to pay compensation to a worker directly or through petty
contractor or subcontractor employed by the Contractor in executing the work, Railway will recover from
the Contractor the amount of the compensation so paid, and, without prejudice to the rights of Railway
under Section 12 Sub-section (2) of the said Act, Railway shall be at liberty to recover such amount or any
part thereof by deducting it from any sum due by Railway to the Contractor.
6.9 The Maternity Benefit Act, 1961

The Matemity Benefit Act 1961 will be applicable to the contractor's staff, workers, labour employed
directly or indirectly through sub-contractors or petty contractors. While the entire act is applicable, the
following provisions must be given special regard.
6.9.1 Employment of, or work by, women prohibited during certain periods (Section 4)

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(a) Without prejudice to the provisions of section 6, no pregnant woman shall, on a request being made by
her in this behalf, be required by her employer to do during the period specified in sub-section (4) any work
which is of an arduous nature or which involves long hours of standing, or which in any way is likely to
interfere with her pregnancy or the normal development of the foetus, or is likely to cause her miscarriage
or otherwise to adversely affect her health.
(b) The period referred to in sub-section (3) shall be —
i. the period of one month immediately preceding the period of six weeks, before the date of her expected
delivery;
ii. any period during the said period of six weeks for which the pregnant woman does not avail of leave of
absence under section 6.
6.9.2 Right to payment of maternity benefits (Section 5) —
(a) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable
for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual
absence, that is to say, the period immediately preceding the day of her delivery, the actual day of her
delivery and any period immediately following that day.
(b) The maximum period for which any woman shall be entitled to maternity benefit shall be twenty six
weeks of which not more than eight weeks shall precede the date of her expected delivery.
6.9.3 Dismissal during absence of pregnancy (Section 12)
(a) The contractor shall not dismiss or discharge a woman on the account of being pregnant any time
during the contract period.
(b) When a pregnant woman absents herself from work in accordance with the provisions of this Act, it
shall be unlawful for her employer to discharge or dismiss her during or on account of such absence or to
give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to
vary to her disadvantage any of the conditions of her service.
(c) The discharge or dismissal of a woman at any time during her pregnancy, if the woman but for such
discharge or dismissal would have been entitled to maternity benefit or medical bonus referred to in section
8, shall not have the effect of depriving her of the maternity benefit or medical bonus.
6.10 The Sexual Harassment of Women at the Workplace (Prevention and Redressal) Act, 2013

6.10.1 The contractor must set up an internal complaints committee in accordance to the Act for the
redressal of sexual harassment at the workplace for all the workers under her employ. The contractor's
staff, workers, labour employed directly or indirectly through sub-contractors or petty contractors will also
be able to approach the Railways' Internal Complaints Committee set up under the Act to file a complaint
of sexual harassment. In the absence of such a committee already in place, the person responsible for the
management, supervision and control of the workplace at Railways will be required to constitute a
committee according to the Act.
6.11 Safai Karmachari Act, 1993

6.11.1 The National Commission for the Safai Karamacharis was constituted under this Act to promote
and safeguard the interests/rights of Safai Karamacharis.
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6.11.2 The guidelines and instructions issued by National Commission for Safai Karmachari, Govt. of India
shall be complied with by the contractor. The National Commission under this Act have the Constitutional
Provisions/Rights to investigate any specific grievances of Safai Karmacharis. Hence, it is the duty of the
Contractor to comply the provisions under this Act.
6.12 Child Labour (Prohibition and Regulation) Act, 1986

Provisions of Child Labour (Prohibition and Regulation) Act, 1986 along with its latest amendments would
be binding on the contractor.
6.12.1 Non-Employment of Labour below the Age of 18: The Contractor shall not employ anyone below
the age of 18 as labour directly or through petty contractors or sub-contractors for the execution of work.
6.13 Apprentices Act, 1961

6.13.1 The Contractor shall be responsible to ensure compliance with the provisions of the Apprentices
Act, 1961 and the Rules and Orders issued thereunder from time to time in respect of apprentices directly
or through petty contractors or sub-contractors employed by her for the purpose of carrying out the
Contract.
6.13.2 If the contractor directly or through petty contractors or sub-contractors fails to do so, their failure
will be a breach of the contract and the Railway may, in its discretion, rescind the contract. The contractor
shall also be liable for any pecuniary liability arising on account of any violation of the provisions of the
Act.
Note: The contractors are required to engage apprentices when the worksundertaken by them last for a
period of one year or more and/or the cost of works is rupees one lakh or more.
6.14 Miscellaneous Provisions

6.14.1 Railway Not to Provide Quarters for Contractors

(a) No quarters shall normally be provided by the Railway for the accommodation of the Contractor or any
of their staff employed on the work.
(b) In exceptional cases where accommodation is provided to the Contractor at the Railway's discretion,
recoveries shall be made at such rates as may be fixed by the Railway for the full rent of the buildings and
equipment therein as well as charges for electricity, water supply and conservancy.

6.14.2 Labour Camps and Provisions for Workers

(a) The Contractor shall at her own expense make adequate arrangements for the housing, supply of
drinking water and provision of clean sanitation including urinals etc. for her staff and workers, directly or
through the petty contractors or sub-contractors
(b) The Contractor shall also make provision for temporary creche (Bal-mandir) where 50 or more workers
are employed at a time.
(c) Suitable sites on Railway land, if available, may be allotted to the Contractor for the erection of labour
camps, either free of charge or on such terms and conditions that may be prescribed by the Railway.
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(d) All camp sites shall be maintained in clean and sanitary conditions by the contractor at her own cost.
6.14.3 Preservation of Peace
(a) The Contractor shall take requisite precautions and use their best endeavours to prevent any riotous or
unlawful behaviour by or amongst their workers and others, employed directly or through the petty
contractors or sub-contractors for services, and for the preservation of peace and protection of the
inhabitants and security of property in the neighbourhood of the site of work/services.
(b) In the event of the Railway requiring the maintenance of a special Police Force at or in the vicinity of
the site during the tenure of service contract, the expenses thereof shall be borne by the Contractor and if
paid by the Railway shall be recoverable from the Contractor.
6.14.4 Treatment of Contractor's Staff in Railway Hospitals
(a) In times of emergency or due to lack of availability of medical care, the Contractor's labour and their
families will be granted free treatment in Railway Hospitals and dispensaries.
(b) However, the cost incurred for such treatment of the Contractor or her labour including the cost of
medicines, dressing and diet money according to the normal scale and additional charges for special
examinations such as pathological and bacteriological examination, X-Ray, etc. and for surgical operation
etc. may be recoverable from the Cantractor in such cases.
{c) In all other circumstances, the Contractor and their staff, their labour and their families requiring
medical aid from the Railway Hospital and dispensaries will be treated as private patients and charged
accordingly.
6.14.5 Medical Facilities at Site
The Contractor shall provide medical facilities at the site as may be prescribed by the Manager on the
advice of the Railway Medical Authority in relation to the strength of the Contractor's resident staff and
workers.
6.14.6 Railway Schools for Contractor's Staff
During the contract period, the contractor, her staff/ employees, workers or any labour employed through
sub-contractor or petty sub-contractors, can approach the Railway School in the vicinity of the site of work,
for admission of their wards, which will be granted at the sole discretion of the Railways.
6.14.7 Use of Intoxicants
The contractor or her staff or any labour employed through sub-contractors or petty contractors, shall be
prohibited from the use of any intoxicating substances including, but not limited to, intoxicating beverages
during the service period or on site or near the site or in any of the trains, stations, buildings, encampments
or tenements owned, occupied by or within the control of the Contractor or any of her/ his employees. The
Contractor shall exercise influence and authority to the utmost extent to secure strict compliance with this
condition.
6.14.8 Restrictions on the Employment of Retired Managers of Railway Services within One Year of
their Retirement
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The Contractor shall not, if she is a retired Government Manager of Gazetted rank, herself engage in or
employ or associate a retired Government Manager of Gazetted rank, who has not completed one year from
the date of retirement, in connection with this contract in any manner whatsoever without obtaining prior
permission of the President and if the Contractor is found to have contravened this provision it will
constitute a breach of contract and administration will be entitled to terminate the contract at the risk and
cost of the contractor and forfeit earnest money deposit (EMD) and performance guarantee (PG) of the
contract
6.15 Medical Certificate of Fitness for Labour
The contractor shall not employ a person below 18 years of age. For the purpose of execution of work/
services under the contract, unless a medical certificate of fitness in the prescribed form (Proforma at
Annexure-Vill) granted to each worker by a certifying surgeon certifying that she is fit to work as an adult,
is obtained and kept in the custody of the contractor or a person nominated by her in this behalf and the
person carries with her, while at work, a token giving a reference to such certificate.
6.15.1 Period of Validity of Medical Fitness Certificate: A certificate of fitness granted or renewed for
the above said purposes shall be valid only for a period of one year at a time. The certifying surgeon shall
revoke a certificate granted or renewed if in her opinion the holder of it is, no longer fit for work in the
capacity stated therein. Where a certifying surgeon refuses to grant or renew a certificate or revoke a
certificate, she shall, if so required by the person concerned, state her reasons in writing for doing so.
6.15.2 Medical Re-Examination of Labour: Where any official appointed in this behalf by the Ministry
of Labour is of the opinion that any person employed in connection with the execution of any work under
this contract in the age group 18 to 65 years is without a certificate of fitness or is having a certificate of
fitness but no longer fit to work in the capacity stated in the certificate, she may serve on the Contractor, or
on the person nominated by her/him in this regard, a notice requiring that such persons shall be examined
by a certifying surgeon and such person shall not if the concerned official so directs, be employed or
permitted to do any work under this contract unless she has been medically examined and certified that she
has been granted a certificate of fitness or a fresh certificate of fitness, as the case may be.
EXPLANATIONS:
(1) Only Qualified Medical Practitioners can be appointed as "Certifying Surgeons" and the term
"Qualified Medical Practitioners" means a person holding a qualification granted by an authority specified
in the Schedule to the Indian Medical Degrees Act, 1916 (VII to 1916) or in the Schedule to the Indian
Medical Council Act, 1933 (XXVII) of 1933.
(2) The Certifying surgeon must be a medical officer in the service of State or Municipal Corporation.
6.16 Police Verification of Labour employed by Contractor
The contractor is required to submit Police Verification certificates for all contractual staff that she/he will
be hiring for delivery of services for Indian Railways. The format for the same is provided in the
Annexure XI.
6.17 Mandatory Compliance of Government Schemes
The contractor must ensure and provide documentary evidence for the following —

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6.17.1 All the workers or labour employed directly or indirectly by the contractor must be enrolled under
the Pradhan Mantri Jan Dhan Yojana (PMJDY), a scheme that aims to provide all the citizens of India a
bank account, credit facility, insurance cover and debit card.
6.17.2 All the workers or labour employed directly or indirectly by the contractor between the ages 18 —
70 years must be enrolled under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), an accident
insurance scheme which will be a one year cover, renewable from year to year, offering accidental death
and disability cover for death or disability on account of an accident. The contractor will be responsible fo
pay the premium per annum per member for all her workers during the contract period.
6.17.3 All the workers or labour employed directly or indirectly by the contractor between the ages 18 —
50 years must be enrolled under the Pradhan Mantri Jeevan Jyoti Bima Yojana, an insurance scheme which
will be a one year cover, renewable from year to year, offering life insurance cover for death due to any
reason. The contractor will be responsible to pay the premium per annum per member for all her workers
during the contract period.
6.17.4 The contractor must submit documentary evidence to show the coverage of all her workers or labour
under the above mentioned schemes at all times during the contract period on an annual basis.

VII. DETERMINATION OF CONTRACT

7.1 Right of Railway to Determine the Contract
The Railway shall be entitled to determine and terminate the contract at any time should, in the Railway's
opinion, the cessation of work becomes necessary owing to paucity of funds or from any other cause
whatever, in which case the value of approved materials at site and/ or of work done to date by the
Contractor will be paid for in full at the rate specified in the contract. Notice in writing from the Railway of
such determination and the reasons therefore shall be conclusive evidence thereof.

7.2 Payment on Determination of Contract

Should the contract be determined under clause 7.1 and the Contractor claims payment for expenditure
incurred by her in the expectation of completing the whole of the work, the Railways shall admit and
consider such claims as are deemed reasonable and are supported by vouchers to the satisfaction of the
Manager. The Railway's decision on the necessity and propriety of such expenditure shall be final and
conclusive.

7.3 No Claim on Compensation

The Contractor shall have no claim to any payment of compensation or otherwise, howsoever on account
of any profit or advantage which she might have derived from the execution of the work in full but which
she did not derive in consequence of determination of contract.

7.4 Determination of Contract Owing to Default of Contractor

If the Contractor should —
(a) Become bankrupt or insolvent, or

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(b) Make an arrangement with of assignment in favour of her creditors, or agree to carry out the contract
under a Committee of Inspection of her creditors, or
(c) Being a Company or Corporation, go into liquidation (other than a voluntary liquidation for the
purposes of amalgamation or reconstruction), or
(d) Have an execution levied on her goods or property on the services, or
(e) Assign the contract or any part thereof otherwise than as provided in Clause 4.5 of these Conditions, or
(f) Abandon the contract, or
(g) Persistently disregard the instructions of the Manager, or contravene any provisions of the contract, or
(h) Fail to adhere to the agreed programme of work by a margin of 10% of the stipulated period, or
(i) Have been imposed with maximum cumulative penalty as per Clause 4.17.1, or
(j) Fail to remove materials from the site or to pull down and rectify service wherever applicable after
receiving from the Manager notice to the effect that the said materials or
(k) Have been condemned or rejected under Clause 4.25, 4.27 and 4.28 of these Conditions, or
(l) Fail to take steps to employ competent or additional staff and labour as required under Clause 4.26 of
the Conditions, or
(m) Fail to afford the Manager or Manager's representative proper facilities for inspecting the services or
any part thereof as required under Clause 4.29 of the Conditions, or
(n) Promise, offer or give any bribe, commission, gift or advantage either herself or through her partner,
agent or servant to any officer or employee of the Railway or to any person on her or on their behalf in
relation to the execution of this or any other contract with this Railway.
(o) At any time after the Bid relating to the contract, has been signed and submitted by the Contractor,
being a partnership firm admits as one of its partners or employees under it, or being an incorporated
company elect or nominate or allow to act as one of its directors or employee under it in any capacity
whatsoever, any retired officer of the Gazetted rank or any other retired Gazetted officer working before
her retirement, whether in the executive or administrative capacity, or whether holding any pensionable
post or not, in the Railways for the time being owned and administered by the President of India before the
expiry of one year from the date of retirement from the said service of such officer, unless such officer has
obtained permission from the President of India or any officer duly authorised by her in this behalf, to
become a partner or a director or to take employment under the contract as the case may be, or
(p) Fail to give at the time of submitting the said bid:
(i) The correct information as to the date of retirement of such retired officer from the said service, or as to
whether any such retired officer was under the employment of the Contractor at the time of submitting the
said Bid, or
(ii) The correct information as to such officers obtaining permission to take employment under the
Contractor, or
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(ii) Being a partnership firm, the correct information as to, whether any of its partners was such a retired
officer, or
(iv) Being in incorporated company, correct information as to whether any of its directors was such a
retired officer, or
(v) Being such a retired officer suppress and not disclose at the time of submitting the said Bid the fact of
her being such a retired officer or make at the time of submitting the said Bid a wrong statement in relation
to her obtaining permission to take the contract or if the Contractor be a partnership firm or an incorporated
company to be a partner or director of such firm or company as the case may be or to seek employment
under the Contractor.
Then and in any of the said clause, the manger on behalf of the Railway may serve the Contractor with
notices stipulated in the clauses 7.4.1, 7.4.2 & 7.4.3.
7.4.1. Performance Notice

(a) In the event of the above and in any of the said clauses, the Manager on behalf of the Railway may
serve the Contractor with a Performance notice as per Annexure-XIl in writing to the effect to make good
the default as well as initiation of bidding process for the balance service.
(b) Railways reserves the right to float a new tender and invite bids for the delivery of services to replace
the contractor put on notice, from the date on which this notice is served. The existing contractor shall not
be allowed to participate in any bid which includes delivery of balance services of subject contract.
However, in case the existing contractor's performance has improved to the satisfaction of the Manager,
then Railways may terminate the bid proceedings, at any stage of the bid process.
(c) Notwithstanding Railway's initiation of the bidding process, the financial bids shall be opened only after
the termination of the subject contract.
(d) After the issue of this notice, the performance of contractor shall be assessed on a weekly basis by the
manager. Manager, if satisfied with the improvement in the performance of contractor, may issue a letter of
revocation of the performance notice as per Annexure- XIlI If the performance is found unsatisfactory
after the first week or thereafter, then Railways will be at liberty to issue the 7-day notice, which will be
governed by Section 7.4.2.
7.4.2. Seven Days’ Notice

After delivery of the performance notice to the contractor, if she does not proceed to make good her default
and carry on the services or comply with such directions as aforesaid, to the entire satisfaction of the
Manager, the Railway shall be entitled to serve 7 days’ notice as per Annexure-XIV, further in writing to
either commence the service or improve quality of services to the prescribed standard. The failure to do so
shall entail a termination notice being served under the hand of the Manager, to rescind the contract as a
whole or in part or parts (as may be specified in such notice).
7.4.3. Termination Notice

If no action to commence the service or improve the quality thereof is taken by the contractor with in the 7
days notice period, then a final termination notice as per Annexure — XV shall be issued.

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7.5 Right Of Railway After Rescission Of Contract Owing To Default Of Contractor

In the event of any or several of the courses, referred to in clause 7.4.3, being adopted:
7.5.1. The Contractor shall have no claim to compensation for any loss sustained by her by reason of her
having purchased or procured any materials or entered into any commitments or made any advances on
account of or with a view to the delivery of the services wherever applicable or the performance of the
contract and Contractor shall not be entitled to recover or be paid any sum for the services wherever
applicable thereto actually performed under the contract unless and until the Manager shall have certified
the performance of such services wherever applicable and the value payable in respect thereof and the
Contractor shall only be entitled to be paid the value so certified.
7.5.2. The Manager or the Manager's Representative shall be entitled to take possession of any materials,
tools, implements, machinery and buildings on the services wherever applicable or on the property on
which these are being or ought to have been executed, and to retain and employ the same in the further
execution of the services wherever applicable or any part thereof until the completion of the services
without the Contractor being entitled to any compensation for the use and employment thereof or for wear
and tear or destruction thereof.
7.5.3. The Manager shall as soon as may be practicable after removal of the Contractor fix and determine
ex parte or by or after reference to the parties or after such investigation or enquiries as she may consider
fit to make or institute and shall certify what amount (if any) had at the time of rescission of the contract
been reasonably earned by or would reasonably accrue to the Contractor in respect of the services then
actually done by her under the contract and what was the value of any unused, or partially used materials,
any tools and plants and any temporary works upon the site. The legitimate amount due to the contractor
after making necessary deductions and certified by the Manager should be released expeditiously.

VIII. SETTLEMENT OF DISPUTES - INDIAN RAILWAY ARBITRATION RULES

8.1 Matters Finally Determined by the Railways

All disputes and differences of any kind whatsoever arising out of or in connection with the contract,
whether during the progress of the work or after its completion and whether before or after the
determination of the contract, shall be referred by the contractor to the GM and the GM shall, within 120
days after receipt of the contractor's representation, make and notify decisions on all matters referred to by
the contractor in writing provided that matters for which provision has been made in Clauses 3.5, 4.13,
4.22.4, 4.41.1, 5.4.2, 5.5.2. (c), 6.5, 6.6, 6.7, 6.8, 7.1, 7.2, and 7.4 and sub clauses thereof of General
Conditions of Contract for Services or in any Clause of the Special Conditions of the Contract shall be
deemed as ‘excepted matters’ (matters not arbitrable) and decisions of the Railway authority, thereon shall
be final and binding on the contractor; provided further that ‘excepted matters’ shall stand specifically
excluded from the purview of the Arbitration Clause.

8.2 Demand for Arbitration

8.2.1 In the event of any dispute or difference between the parties hereto as to the construction or operation
of this contract, or the respective rights and liabilities of the parties on any matter in question, dispute or
difference on any account or as to the withholding by the Railway of any certificate to which the contractor
may claim to be entitled to, or if the Railway fails to make a decision within 120 days, then and in any

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suchcase, but except in any of the “excepted matters” referred to in Clause 63 of these Conditions, the
contractor, after 120 days but within 180 days of his presenting his final claim on disputed matters shall
demand in writing that the dispute or difference be referred to arbitration.
[Link] (a ) The demand for arbitration shall specify the matters which are in question, or subject of the
dispute or difference as also the amount of claim item-wise. Only such dispute or difference, in respect of
which the demand has been made, together with counter claims or set off, given by the Railway, shall be
referred to arbitration and other matters shall not be included in the reference.
(b) The parties may waive off the applicability of sub-section 12(5) of Arbitration and Conciliation
(Amendment) Act 2015, if they agree for such waiver, in writing, after dispute having arisen between them,
in the format given under Annexure XII of these conditions.
8.2.2 (a) The Arbitration proceedings shall be assumed to have commenced from the day, a written and
valid demand for arbitration is received by the Railway.
(b) The claimant shall submit his claim stating the facts supporting the claims alongwith all the relevant
documents and the relief or remedy sought against each claim within a period of 30 days from the date of
appointment of the Arbitral Tribunal.
(c) The Railway shall submit its defence statement and counter claim(s), if any, within a period of 60 days
of receipt of copy of claims from Tribunal thereafter, unless otherwise extension has been granted by
Tribunal.
(d) Place of Arbitration : The place of arbitration would be within the geographical limits of the Division
of the Railway where the cause of action arose or the Headquarters of the concerned Railway or any other
place with the written consent of both the parties.
8.2.3 No new claim shall be added during proceedings by either party. However, a party may amend or
supplement the original claim or defence thereof during the course of arbitration proceedings subject to
acceptance by Tribunal having due regard to the delay in making it.
8.2.4 If the contractor(s) does/do not prefer her/their specific and final claims in writing, within a period of
90 days of receiving the intimation from the Railways that the final bill is ready for payment, She/they will
be deemed to have waived her/their claim(s) and the Railway shall be discharged and released of all
liabilities under the contract in respect of these claims.
8.3 Obligation During Pendency Of Arbitration

8.3.1 Work under the contract shall, unless otherwise directed by the Engineer, continue during the
arbitration proceedings, and no payment due or payable by the Railway shall be withheld on account of
such proceedings, provided, however, it shall be open for Arbitral Tribunal to consider and decide whether
or not such work should continue during arbitration proceedings.
8.4 Appointment of Arbitrator :

8.4.1 Appointment of Arbitrator where applicability of section 12 (5) of Arbitration and Conciliation Act
has been waived off.

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(a) In cases where the total value of all claims in question added together does not exceed Rs. 1,00,00,000/-
(Rupees One Crore only), the Arbitral Tribunal shall consist of a Sole Arbitrator who shall be a Gazetted
Officer of Railway not below JA Grade, nominated by the General Manager. The sole arbitrator shall be
appointed within 60 days from the day when a written and valid demand for arbitration is received by GM.
(b) In cases not covered by the Clause 8.4.1 (a), the Arbitral Tribunal shall consist of a Panel of three
Gazetted Railway Officers not below JA Grade or 2 Railway Gazetted Officers not below JA Grade and a
retired Railway Officer, retired not below the rank of SAG Officer, as the arbitrators. For this purpose, the
Railway will send a panel of at least four (4) names of Gazetted Railway Officers of one or more
departments of the Railway which may also include the name(s) of retired Railway Officer(s) empanelled
to work as Railway Arbitrator to the contractor within 60 days from the day when a written and valid
demand for arbitration is received by the GM. Contractor will be asked to suggest to General Manager at
least 2 names out of the panel for appointment as contractor's nominee within 30 days from the date of
dispatch of the request by Railway. The General Manager shall appoint at least one out of them as the
contractor's nominee and will, also simultaneously appoint the balance number of arbitrators either from
the panel or from outside the panel, duly indicating the ‘presiding arbitrator’ from amongst the 3 arbitrators
so appointed. GM shall complete this exercise of appointing the Arbitral Tribunal within 30 days from the
receipt of the names of contractor's nominees. While nominating the arbitrators, it will be necessary to
ensure that one of them is from the Accounts Department. An officer of Selection Grade of the Accounts
Department shall be considered of equal status to the officers in SA grade of other departments of the
Railway for the purpose of appointment of arbitrator.
8.4.2 Appointment of Arbitrator where applicability of section 12 (5) of A&C Act has not been waived
off : The Arbitral Tribunal shall consist of a Panel of three (3) retired Railway Officer, retired not below
the rank of SAG Officer, as the arbitrators. For this purpose, the Railway will send a panel of at least four
(4) names of retired Railway Officer(s) empanelled to work as Railway Arbitrator duly indicating their
retirement date to the contractor within 60 days from the day when a written and valid demand for
arbitration is received by the GM. Contractor will be asked to suggest to General Manager at least 2 names
out of the panel for appointment as contractor's nominee within 30 days from the date of dispatch of the
request by Railway. The General Manager shall appoint at least one out of them as the contractor's nominee
and will, also simultaneously appoint the balance number of arbitrators either from the panel or from
outside the panel, duly indicating the ‘presiding arbitrator’ from amongst the 3 arbitrators so appointed.
GM shall complete this exercise of appointing the Arbitral Tribunal within 30 days from the receipt of the
names of contractor's nominees. While nominating the arbitrators, it will be necessary to ensure that one of
them has served in the Accounts Department.
8.4.3 (a) : If one or more of the arbitrators appointed as above refuses to act as arbitrator, withdraws from
his office as arbitrator, or vacates her/their office/offices or is/are unable or unwilling to perform her
functions as arbitrator for any reason whatsoever or dies or in the opinion of the General Manager fails to
act without undue delay, the General Manager shall appoint new arbitrator/arbitrators to act in her/their
place in the same manner in which the earlier arbitrator/arbitrators had been appointed. Such re-constituted
Tribunal may, at its discretion, proceed with the reference from the stage at which it was left by the
previous arbitrator (s).
[Link] (a) The Arbitral Tribunal shall have power to call for such evidence by way of affidavits or
otherwise as the Arbitral Tribunal shall think proper, and it shall be the duty of the parties hereto to do or
cause to be done all such things as may be necessary to enable the Arbitral Tribunal to make the award

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without any delay. The proceedings shall normally be conducted on the basis of documents and written
statements.
(b) Before proceeding into the merits of any dispute, the Arbitral Tribunal shall first decide and pass its
orders over any plea submitted/objections raised by any party, if any, regarding appointment of Arbitral
Tribunal, validity of arbitration agreement, jurisdiction and scope of the Tribunal to deal with the dispute
(s) submitted to arbitration, applicability of time ‘limitation’ to any dispute, any violation of agreed
procedure regarding conduct of the arbitral proceedings or plea for interim measures of protection and
record its orders in day to day proceedings. A copy of the proceedings duly signed by all the members of
tribunal should be provided to both the parties.
(c) Qualification of Arbitrator(s): (a) Serving Gazetted Railway Officers of not below JA Grade level. (b)
Retired Railway Officers not below SA Grade level, three years after his date of retirement. (c) Age of
arbitrator at the time of appointment shall be below 70 years. (i) An arbitrator may be appointed
notwithstanding the total number of arbitration cases in which he has been appointed in the past. (ii) While
appointing arbitrator(s) under Sub- Clause 8.4.1 (a), 8.4.1 (b) and 8.4.2 above, due care shall be taken that
she/they is/are not the one/those who had an opportunity to deal with the matters to which the contract
relates or who in the course of her/their duties as Railway servant(s) expressed views on all or any of the
matters under dispute or differences. The proceedings of the Arbitral Tribunal or the award made by such
Tribunal will, however, not be invalid merely for the reason that one or more arbitrator had, in the course
of his service, opportunity to deal with the matters to which the contract relates or who in the course of
her/their duties expressed views on all or any of the matters under dispute.
(d) (i) The arbitral award shall state item wise, the sum and reasons upon which it is based. The analysis
and reasons shall be detailed enough so that the award could be inferred therefrom. (ii) A party may apply
for corrections of any computational errors, any typographical or clerical errors or any other error of
similar nature occurring in the award of a Tribunal and interpretation of a specific point of award to
Tribunal within 60 days of receipt of the award. (iii) A party may apply to Tribunal within 60 days of
receipt of award to make an additional award as to claims presented in the arbitral proceedings but omitted
from the arbitral award.
8.4.4 In case of the Tribunal, comprising of three Members, any ruling on award shall be made by a
majority of Members of Tribunal. In the absence of such a majority, the views of the Presiding Arbitrator
shall prevail.
8.4.5 Where the arbitral award is for the payment of money, no interest shall be payable on whole or any
part of the money for any period till the date on which the award is made.
8.4.6 (a) The cost of arbitration shall be borne by the respective parties. The cost shall interalia include fee
of the arbitrator(s), as per the rates fixed by Railway Board from time to time and the fee shall be borne
equally by both the parties, provided parties sign an agreement in the prescribed format after/ while
referring these disputes to Arbitration. Further, the fee payable to the arbitrator(s) would be governed by
the instructions issued on the subject by Railway Board from time to time irrespective of the fact whether
the arbitrator(s) is/are appointed by the Railway Administration or by the court of law unless specifically
directed by Hon'ble court otherwise on the matter.

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(b) (i) Sole Arbitrator shall be entitled for 25% extra fee over the fee prescribed by Railway Board from
time to time. (ii) Arbitrator tribunal shall be entitled to 50% extra fee if Award is decided within six
months.
8.4.7 Subject to the provisions of the aforesaid Arbitration and Conciliation Act 1996 and the rules
thereunder and relevant para of General Conditions of Contract (GCC) and any statutory modifications
thereof shall apply to the appointment of arbitrators and arbitration proceedings under this Clause.

Annexure I
Bid Evaluation — Technical Criteria (Sample)
The following criteria are merely indicative and provided for illustrative purposes only.

S
We
.
igh Scoring
N Technical Criteria Documentation
tag
o
e
.
1 20 Previous Work Certificate from client Scoring Method : For each
% Done- firm authorizing payment completed/ on going similar service
The bidder shall received along with contracts with satisfactory
submit documents percentage penalties performance shall be as under :
related to imposed contract wise (a) 100 Marks if bidder has
completed /on- for completed/ ongoing completed or received payment as
going similar similar services contracts under
service contracts with satisfactory 1 project > 80%
during the last performances. 2 project > 50%
three previous 3 or more projects > 40%
financial year and
the current (b) 50 marks if bidder has completed
financial year along or received payment as under
with the details of 1 project > 50%
payments received 2 projects > 40 % of the advertised
and percentage value of the bid
penalties imposed
therein, to classify (c) 20 Marks if bidder has completed
the or received payment as under
completed/ on- 1 project > 40% value completed
going similar
service contracts in (d) No Marks if all projects < 40%
the following value completed.
categories
DEDUCTION for percentage penalty
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1) Payment imposed in the respected /completed

received more than ongoing similar service contracts.
or equal to 80% or The Score of each completed
50% or 49% of the ongoing / similar service contracts
current advertised with satisfactory performance shall
bid value and be reduced by a percentage equal to
percentage percentage penalty imposed in
penalties imposed respective contract. No reduction for
therein. percentage penalty less than 5% .
Contract where percentage penalty is
more than 20% of contract value
shall not be considered for
calculation of score for this purpose
Turnover in last As per audited balance (a) 100 Marks more than 25 times the
three and current sheet certified by CA advertised value of work
financial year (Less (b) 70 marks 10-25 times the
35 than 1.5 times the advertised value of work
2
% value of work is (c) 50 marks 5-10 times the
not eligible) advertised value of work
(d) 30 marks 1.5-5 times the
advertised value of work
No. of years in Company establishment (a) 100 marks more than 8 years (b)
operation (Firm certificate and 80 Marks 5-8 years
having less than 1 company’s work order (c) 60 marks 2-4 years
year of experience copy/ agreement copy (d) 40 marks 1-2 years
20
3 is not eligible) competition certificate
%
etc as a proof of
operation. Years shall be
counted from the date of
agreement of work
Size of workforce EPFO Challan/Bank (a) 100 marks if bidder’s workforce
The Bidder must account statement in on roll is > 3 times of the total
have minimum support of available workforce required in this bid.
Number of manpower (duly (b) 70 marks if workforce on roll is
personnel (as submitted to EPFO in equal to or less than 3 times the total
25
4 defined by railway respect of previous 4 workforce required in the bid
%
administration) on quarters preceding the (c) No marks if total workforce on
the organisation’s date of opening of the bid roll deployed is less than the total
payroll. should be submitted in workforce required in the bid
support of their
qualification

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ANNEXURE - II
BID FORM (First Sheet)
_______ RAILWAY
Tender No. __________________________
Name of Work______________________
To,
The President of India,
Acting through the _______________
____________________________Railway

1. I/We have read the various conditions to the bid attached hereto and agree to abide by the said
conditions. I/we also agree to keep this bid open for acceptance for a period of _____days from the date
fixed for opening the same and in default thereof, I/we will be liable for forfeiture of my/our “Earnest
Money”. |/We offer to do the work for _______________Railway, at the rates quoted in the attached
schedule and hereby bind myself / ourselves to complete the work in all respects within ________months
from the date of issue of letter of acceptance of the Bid.
2. I/We also hereby agree to abide by the Indian Railways General Conditions of Contract for Services,
with all correction slips up-to-date and to carry out the work according to the Special Conditions of
Contract and Specifications of materials and works as laid down by Railway in the annexed Special
Conditions/Specifications, Schedule of Rates with all correction slips up-to-date for the present contract.
3. A sum of Rs.__________ is herewith forwarded as Earnest Money. Full value of the Eamest Money
shall stand forfeited without prejudice to any other right or remedies in case my/our Bid is accepted and if:
a) I/We do not execute the contract documents within seven days after receipt of notice issued by the
Railway that such documents are ready; and
b) I/We do not commence the work within fifteen days after receipt of orders to that effect.

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4. I/We am/are a Micro and Small Enterprise registered from ...... (body approved by Ministry of MSME)
with registration No. ....... and terminal validity up to ...... for similar service contracts.
5. Until a formal agreement is prepared and executed, acceptance of this Bid shallconstitute a binding
contract between us subject to modifications, as may be mutually agreedto between us and indicated in the
letter of acceptance of my/our offer for this work/service.

Signature of Bidder/s
Date_____________
Address__________

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ANNEXURE - II (Contd. ...)

BID FORM (Second Sheet)
1; Instructions to bidder and Conditions of bid: The following documents form part of bid / Contract:
(a) Bid forms — First Sheet and Second Sheet
(b) Special Conditions/Specifications (enclosed)
(c) Schedule of approximate quantities (enclosed)
(d) Standard General Conditions of Contract and Standard Specifications for Materials and Works of
Indian Railway as amended/corrected upto latest Correction Slips, copies of which can be seen in
the office of ___________ or obtained from the office of the Chief Manager, ___________ Railway
on payment of prescribed charges.
(e) Schedule of Rates as amended / corrected upto latest Correction Slips, copies of which can be seen in
the office of_____________ or obtained from the office of the ChiefManager, __________ Railway
on payment of prescribed charges.
(f) All general and detailed drawings pertaining to this work which will be issued by the Manager or her
representatives (from time to time) with all changes and modifications.
2. Drawings for the Work: The drawings for the work can be seen in the office of the _________ and / or
Chief Manager, ____________ Railway at any time during the office hours. The drawings are only for the
guidance of Bidder(s). Detailed working drawings (if required) based generally on the drawing mentioned
above, will be given by the Manager or her representative from time to time.
3. The Bidder(s) shall quote her / their rates as a percentage above or below the Schedule of Rates of
Railway as applicable to Division except where she/they are required to quote item rates and must tender
for all the items shown in the Schedule of approximate quantities attached. The quantities shown in the
attached Schedule are given as a guide and are approximate only and are subject to variation according to
the needs of the Railway. The Railway does not guarantee work under each item of the Schedule.
4, Tenders containing erasures and / or alterations of tender documents are liable to be rejected. Any
correction made by tender(s) in her/their entries must be attested by her / them.
5. The works are required to be completed within a period of _______months from the date of issue of
acceptance letter.
6. Earnest Money:
(a) The bid must be accompanied by a sum of Rs.___________ as earnest money deposited in cash or in
any of the forms as specified, failing which the bid will not be considered. However, registered MSEs in
terms of Ministry of MSMEs notification No. 503 are exempted from Earnest Money Deposit.
(b) The bidder(s) shall keep the offer open for a minimum period of 90 days from the date of opening of
the bid. It is understood that the bid documents have been sold/issued to the bidder(s) and the bidder(s), is /
are permitted to bid in consideration of the stipulation on her / their part that after submitting her / their bid
subject to the period béing extended further, if required by mutual agreement from time to time, she will
not resile from her offer or modify the terms and conditions thereof in a manner not acceptable to the Chief
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Manager/Manager. Should the bidder fail to observe or comply with the foregoing stipulation, the amount
deposited as Earnest Money for the due performance of the above stipulation, shall be forfeited to the
Railway.
(c) If the bid is accepted, the amount of Earnest Money will be returned to the successful bidder after the
submission of the Performance Guarantees as per clause 4.11, for the due and faithful fulfillment of the
contract. This amount of EMD shall be forfeited, if the Bidder(s)/ Contractor(s) fail to execute the Contract
Document within 7 days after receipt of notice issued by Railway that such documents are ready or to
commence the work within 15 days (unless otherwise specified) after receipt of the order to that effect.
(d) Earnest Money of the unsuccessful Bidder(s) will, save as here-in-before provided, be returned to the
unsuccessful Bidder(s) within 15 days after finalization of the bid / negotiation, but the Railway shall not
be responsible for any loss or depreciation that may happen to the Security for the due performance of the
stipulation to keep the offer open for the period specified in the bid documents or to the Earnest Money
while in their possession nor be liable to pay interest thereon.
7. Rights of the Railway to Deal with Tender: The authority for the acceptance of the tender will rest
with the Railway. It shall not be obligatory on the said authority to accept the lowest tender or any other
tender and no bidder(s) shall demand any explanation for the cause of rejection of her/their tender nor the
Railway to assign reasons for declining to consider or reject any particular tender or tenders.
8. If the bidder(s) deliberately gives / give wrong information in her / their tender or creates / create
circumstances for the acceptance of her / their tender, the Railway reserves the right to reject such tender at
any stage.
9. If the bidder(s) expire(s) after the submission of her / their tender or after the acceptance of her / their
tender, the Railway shall deem such tender cancelled. If a partner of a firm expires after the submission of
their tender or after the acceptance of their tender, the Railway shall deem such tender as cancelled, unless
the firm retains its character.
10. Bidder’'s Credentials: Bidder shall submit the documents as demanded under Bid Evaluation criteria
along with the bid.
11. For Manual Bidding: Bid must be enclosed in a sealed cover, superscripted “Bid No. * and must be sent
by registered post to the address of Railway so as to reach her/their office not later than Hours on the or
deposited in the special box allotted for the purpose in the office of Railway. This Special box will be
sealed at hours on . The Bid will be opened at hours on the same day. The Bid papers will not be sold after
hours on
13. For e- bidding: Relevant guidelines should be followed.
14. Non-compliance with any of the conditions set forth therein above is liable to result in the tender being
rejected.
15. Execution of Contract Documents: The successful bidder(s) shall be required to execute an agreement
with the President of India acting through the ; Railway for carrying out the work according to Standard
General Conditions of Contract, Special Conditions / Specifications annexed to the tender and
Specification for work and materials of Railway as amended/corrected up to latest Correction Slips,
mentioned in tender form (First Sheet).
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16. Partnership Deeds, Power of Attorney Etc.: The bidder shall clearly specify whether the bid is
submitted on her own or on behalf of a partnership concern. If the bid is submitted on behalf of a
partnership concern, she should submit the certified copy of partnership deed along with the tender and
authorization to sign the tender documents on behalf of partnership firm. If these documents are not
enclosed along with tender documents, the tender will be treated as having been submitted by individual
signing the tender documents. The Railway will not be
bound by any power of attomey granted by the bidder or by changes in the composition of the firm made
subsequent to the execution of the contract. It may, however, recognize such power of attorney and
changes after obtaining proper legal advice, the cost of which will be chargeable to the contractor.
17. The bidder whether sole proprietor, a limited company or a partnership firm if they want to act through
agent or individual partner(s) should submit along with the tender or at a later stage, a power of attorney
duly stamped and authenticated by a Notary Public or by Magistrate in favour of the specific person
whether she/they be partner(s) of the firm or any other person specifically authorising herthem to submit
the tender, sign the agreement, receive money, witness measurements, sign measurement books,
compromise, settle, relinquish any claim(s) preferred by the firm and sign "No Claim Certificate" and refer
all or any disputes to arbitration.
17.1 The bidder shall clearly specify whether the bid is submitted on her own or on behalf of a Partnership
Firm/Joint Venture (JV)/Society etc. The bidder(s) who is/are constituents of Firm, Company, Association
or Society shall enclose self-attested copies of the Constitution of their concern, Partnership Deed and
Power of Attorney along with their bid. Bid Documents in such cases shall to be signed by such persons as
may be legally competent, Association or Society, as the case may be.
17.2 The bidder shall give full details of the constitution of the Firm/JV/Company/Society etc. and shall
also submit following documents (as applicable), in addition to documents mentioned above:
(a) Sole Proprietorship Firm: The bidder shall submit the notarized copy of the affidavit.
(b) Partnership Firm: The bidder shall submit self-attested copies of (i) registered/notarized Partnership
Deed and (ii) Power of Attorney duly authorizing one or more of the partners of the firm or any other
persons(s), authorized by all the partners to act on behalf of the firm and to submit & sign the Bid, sign the
agreement, witness measurements, sign Measurement Books, receive payment, make correspondences,
compromise/settle/relinquish any claim (s) preferred by the firm, sign ‘No Claim certificate’, refer all or
any dispute to arbitration and to take similar action in respect of all Bids/contracts OR said Bid/contract.
(c) Joint Venture (JV): The Bidder shall submit documents as mentioned in Clause 2.4 to GCC.
(d) Company registered under Companies Act-1956: The Bidder shall submit (i) the copies of MOA
(Memorandum of Association) and AOA (Articles of Association) of the Company; and (ii) Power of
Attorney duly registered/notarized by the company (backed by the resolution of Board of Directors) in
favour of the individual, signing the Bid on behalf of the Company.
(e) Society: The Bidder shall submit (i) self-attested copy of the Certificate of Registration, (ii) Deed of
Formation and (iii) Power of Attorney in favour of the Tender signatory.
17.3 If it is mentioned in the Bid that it is being submitted on behalf oflby a Sole Proprietorship
Firm/Partnership Firm/Joint Venture/Registered Company etc., the afore- mentioned document/s (as
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applicable) should be enclosed along with Bid. If it is NOT mentioned in the Bid that it is being submitted
on behalf of/lby a Sole Proprietorship Firm/Partnership Firs/Joint Venture/Registered Company etc., then
the Bid shall be treated as having been submitted by the individual who has signed the Bid.
17.4 After opening of the Bid, any document pertaining to the Constitution of the Firm/JV/Society etc.
shall neither be asked nor be entertained/ considered.
17.5 A Bid from JV/Consortium/Partnership Firm etc. shall be considered only where permissible as per
the Bid/ Tender conditions
18. Employment/Partnership etc. of Retired Railway Employees:
(a) Should a bidder be a retired Manager of the Gazetted rank or any other Gazetted officer working before
her retirement, whether in the executive or administrative capacity or whether holding a pensionable post
or not, in any department of any of the railways owned and administered by the President of India for the
time being, or should a bidder being a partnership firm have as one of its partners a retired Manager or
retired Gazetted Officer as aforesaid, or should a bidder being an incorporated company have any such
retired Manager or retired officer as one of its Directors or should a bidder have in her employment any
retired Manager or retired Gazetted Officer as aforesaid, the full information as to the date of retirement of
such Manager or Gazetted Officer from the said service and in case where such Manager or Officer had not
retired from Government service at least 2 years prior to the date of submission of the tender as to whether
permission for taking such contract, or if the contractor be a partnership firm or an incorporated company,
to become a partner or Director as the case may be, or to take the employment under the contractor, has
been obtained by the bidder or the Manager or Officer, as the case may be from the President of India or
any officer, duly authorised by her in this behalf, shall be clearly stated in writing at the time of submitting
the bid. Bids without the information above referred to or a statement to the effect that no such retired
Manager or retired Gazetted Officer is so associated with the bidder, as the case may be, shall be rejected.
(b) Should a bidder or contractor being an individual on the list of approved Contractors, have a relative(s)
or in the case of partnership firm or company of contractors one or more of her shareholder(s) or a
relative(s) of the shareholder(s) employed in gazetted capacity in the any department of the Railway, the
authority inviting tenders shall be informed of the fact at the time of submission of tender, failing which the
tender may be disqualified/rejected or if such fact subsequently comes to light, the contract may be
rescinded in accordance with provision in Clause 7.4 of Standard General Conditions of Contract.

(Signature)

Signature of Bidder(s) (Designation)

Date___________ ___________________ Railway

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ANNEXURE - Il (Contd...)
BID FORM (Third Sheet)

Name of Work/Service: __________________________________________________________________

______________________________________________________________________________________
______________________________________________________________________________________

SCHEDULE OF RATES AND QUANTITIES

Sr, Item Description of item of Approximate Rates per unit in Amount

Unit
no. no. work / service quantity / Figure & words (Rs.)

1 2 3 4 5 6 7

The quantities shown in above Schedule are approximate and are as a guide to give the Bidder(s) an idea of
quantum of work involved. The Railway reserves the right to increase/ decrease and/or delete or include
any of the quantities given above and no extra rate will be allowed on this account.
I/We undertake to do the work at ____________% above/below the Schedule of Rates of the __________
Railway at the rates quoted above for each item (wherever percentage rates are not invited kindly see note
given below)
Dated : ____________

Signature of the Bidder(s)

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Note: Columns 1 to 5 shall be filled by the office of the Authority inviting Bid. Columns 6 & 7 shall be
filled by the Bidder(s) only when percentage Bids are not invited.

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ANNEXURE - lll
CONTRACT AGREEMENT OF SERVICES
___________________RAILWAY

Contract Agreement No. __________________________

Dated ______________
ARTICLES OF AGREEMENT made this __ day of ____20__ between President of India acting through
the Railway Administration hereafter called the "Railway" of the one part and _________________ herein
after called the "Contractor" of other part.
WHEREAS the Contractor has agreed with the Railway for performance of the Services_(Name of work)
set forth in the Schedule hereto annexed upon the General Conditions of Contract for Service Contracts
corrected up to latest Correction Slips here-into annexed AND WHEREAS the performance of the said
works is an act in which the public are interested.
NOW THIS INDENTURE WITNESSETH that in consideration to the payments to be made by the
Railways, the Contractors will duly perform the said Services in the said schedule set forth and shall
execute the same with great promptness, care and accuracy in a worker like manner to the satisfaction of
the Railway and will complete the same in accordance with the said specifications and said drawings and
said conditions of contract on or before the _______ day of ____ 20__ and will observe, fulfill and keep all
the conditions therein mentioned (which shall be deemed and taken to be part of this contract, as if the
same have been fully set forth herein), AND the Railway, both hereby agree that if the Contractor shall
duly perform the said services in the manner aforesaid and observe and keep the said terms and conditions,
the Railway will pay or cause to be paid to the Contractor for the said services on the final completion
thereof the amount due in respect thereof at the rates specified in the Schedule hereto annexed.

(Signature) ---------------- Signature --------------------

Contractor --------------- Railway Designation_____
(For President of India)
Address ______________ Address______________
_____________________ _____________________
Date ____________ Date_____________

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Annexure - IV

Form XIV (See Rule 76)

The Contract Labour (Regulation & Abolition} Central Rules, 1971

Employment Card

Name and address of contractor................

Name and address of Establishment in/ under which contract is carried on
---------------------------------------------------------------------------------------------------------------------------------
------------------------------
Name of work and location of work Name and address of Principal
Employer
1. Name of the worker ...............
2. S No. in the register of workers employed ..............
3. Nature of employment/Designation ...............
4. Wage rate (with particulars of unit in case of piece-work) ...............
5. Wage period ...............
6. Tenure of employment ...............
7. Remarks ...............

Signature of Contractor

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Annexure —-V
Form XV (See Rule 77)
The Contract Labour (Regulation & Abolition} Central Rules, 1971

Service Certificate
Name and address of contractor …………………………
Name and address of Establishment in/under which contract is carried on
………………………………………………………………………………………………………………..
Nature and location of work...................
Name and address of the worker.............
Name and address of Principal Employer.........
Age or date of birth.............
Identification Marks.............
Parent's/Spouse’s name...................

Sr. Total period for which employed Nature of Rate of wage (with particular
Remarks
no. From To work done of unit in case of piece work

1 2 3 4 5 6

Signature ……………………

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Annexure — VI

Form XVII [See Rule 78(1) (a) (i)]

The Contract Labour (Regulation & Abolition} Central Rules, 1971

Register of wages
Name and address of contractor..........
Name and address of Establishment in/funder which contract is carried on …………………...........
…………………………………………………………………………………………………………
Nature and location of work ………………………
Name and address of principal employer ……………………………

Wage Period: Monthly

Serial Number Designation Daily rate of

Name of No. of days Units of
Sr. No. in the register / Nature of wages/ piece
Worker worked work done
of workers work done rate

1 2 3 4 5 6 7

Amount of wages Earned

Basic Dearness Overtime Other Total Deductions Net Signature / Initial of

Wages Allowance Cash if any amount Thumb contractor of
payments (indicate paid impression her
(Nature of nature ) of worker representative
payment
to be
indicates)

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Annexure - VII

Form XIX [See Rule 78(1)(b)]

The Contract Labour (Regulation & Abolition} Central Rules, 1971

Wage Slip

Name and address of contractor............

Name of Worker.....................
Name of Parent /spouse of worker ………………….
Name and location of work …………………
For the week /fortnight / month ending …………….

No. of days worked...............

No. of units worked in case of piece rate workers.......
Rate of daily wages/piece rate..........
Amount of overtime wages. .....
Gross wages payable...
Deductions, if any.........
Net amount of wages paid.......

Signature of the contractor or their representative

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Annexure — VIII
FORM XXIV [See Rule 82(1)]
The Contract Labour (Regulation & Abolition} Central Rules, 1971
Return to be sent by the Contractor to the Licensing Officer
(Every contractor shall send half yearly return in Form XXIV (in duplicate) so as to reach the Licensing
Officer concemed not later than 30 days from the close of the half year and a copy of the same should also
be sent to the Indian Railways at the same time)
Half-Year-Ending.. ……………………..
1. Name and address of the Contractor ……………………………….
2. Name and address of the Establishment ……………………………………..
3. Name and address of the Principal employer ……………………………………
4. Duration of Contract: From ....... to.......
5. No. of days during half year on which-
(a) the establishment of the Principal employer had worked………………………………………
(b) the contractor's establishment had worked...................................
6. Maximum number of contract labour employed on day during the half year-
Men Women Children Total
7. (i) Daily hours of work and spread over-
(ii) (a) whether weekly holiday observed and on what day-
(b) if so, whether it was paid for
(iii) No. of work hours (man-hours) of overtime worked
8. No. of work days (man-days) worked by
Men Women Children Total
9. Amount of wages paid
Men Women Children Total
10. Amount of deductions from wages, if any
Men Women Children Total
11. Whether the following have been provided
(i) Canteen … … …
(ii) Rest-Room … … …
(iii) Drinking water … … …
(iv) Creches … … …
(v) First-Aid … … …
(If the answer is 'yes' state briefly standards provided)

Signature of Contractor

Place ……………
Date …………….

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Annexure — IX
FORM XXV
THE CONTRACT LABOUR (REGULATION AND ABOLITION) CENTRAL RULES, 1971
Annual Return of Principal Employer to be sent to the Registering Officer
(Every principal employer of a registered establishment shall send annually a return in Form XXV (in
duplicate) so as to reach the Registering Officer concerned not later than the 15th February following the
end of the year to which it relates.)
Year ending 31% December
1. Full name and address of the Principal Employer.
2. Name of Establishment:
(a) District
(b) Postal Address
(c) Nature of operation/industry/work carried on.
3. Full name of the Manager or person responsible for supervision and control of the establishment.
4. Number of Contractors who worked in the establishment during the year (Give details in Annexure).
5. Nature of work/operations on which contract labour was employed.
6. Total number of days during the year on which contract labour was employed.
7. Total number of work-days (man-days) worked by contract labour during the year.
8. Maximum number of workers employed directly on any day during the year.
9. Total number of days during the year on which direct labour was employed.
10. Total number of work-days (man-days) worked by directly employed workmen.
11. Change, if any, in the management of the establishment, its location, or any other particulars furnished
to the Registering Officer in the application for Registration indicating also the dates.
Principal Employer
Place ..........
Date ...........
ANNEXURE TO FORM
Name and Period of contract Nature of Maximum No. of days No. of
address of work number of worked workdays
contractor From To workers (man-days
employed by worked)
each
contractor
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ANNEXURE - X

FORM-XI {See rule 223 (c)}

The Contract Labour (Regulation & Abolition} Central Rules, 1971
Certificate of Medical Examination

1 Certificate Serial No........

Date...
2 Name .........
Identification marks: (i) .................
(ii) ……………..
3 Parent's Name ...........................
4 SEX ……………………….
5 Residence............................. son/daughter of...........
6. Date of birth, if available .............. and/or certificate age.......................
7, Physical Fitness
I hereby certify that | have personally examined (name) .................. son/daughter of ……………. residing
at ...................who is desirous of being employed in manual work and that his/her age as nearly as can be
ascertained from my examination is ......... years and that he/she is fit for employment in... as an
adult/adolescent.
8. Reason for -
(1) refusal of certificate
2) certificate being revoked

Signature with Seal

Signature/ Left hand Medical Inspector/CMO
Thumb impression of worker

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Note: 1. Exact details of cause of physical disability should be clearly stated.

2. Functional/ productive abilities should also be stated if disability is stated.

ANNEXURE - XI
POLICE VERIFICATION
PHOTO

(of applicant,
signed by
contractor )

[Link]. Particulars

1 Full Name with Aliases

2 Parent's Name

3 Nationality

Present Address in full with

4
Police Station and District

5 Period of Residence

Home/ Permanent Address in full

6
with Police Station and District

Declaration (by applicant):

I certify that the following information is correct and complete to
the best of my knowledge and belief.
Police Certification:
The details as stated above are correct and the above person does not have any criminal or any case
registered, pending in any court of law.

Signature of Applicant
Date: ……………..

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Place: ………………
Counter signature of
Authorized signatory with stamp

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Annexure - XII
Registered Acknowledgement Due
PERFORMANCE NOTICE
_______________RAILWAY
(Without Prejudice)
To
M/s ________________

Dear Madam/Sir,

Contract Agreement No. _________________________________

In connection with ______________________________________

1. In spite of repeated instructions to you by the subordinate offices as well as by this office in various
letters of even no. ______ , dated _______, You have failed to start service/achieve desirable standard of
services till now.
2. Your attention is invited to this office/Chief Manager's office letter no. _________ dated ________ in
reference to your representation, dated ____________ .
3. As you have failed to abide by the instructions issued to commence the service / achieve desirable
standard of services, you are hereby given a notice in accordance with Clause 7.4 of General Conditions of
Contract to commence the service/ to make good the default, failing which further action will be taken as
provided in Clause 7.4 of the General Conditions of Contract viz. to terminate your Contract and complete
the balance services without your participation.
4. In addition to the above, Railway is also free to invite a bid to procure the balance services without your
participation, starting from the date of issuey of this notice.
Kindly acknowledge receipt.

Yours faithfully,
For and on behalf of the President of India

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Annexure - XIII
Registered Acknowledgement Due

REVOCATION OF PERFORMANCE NOTICE

____________________RAILWAY
(Without Prejudice)

To
M/s ________________

Dear Madam/Sir,

Contract Agreement No. ___________

In connection with ________________

1. Your attention is invited to this performance notice issued by this office/Chief Manager's office vide
letter no. _________ , dated _____________
2. As you have improved the delivery of services since the issue of the said notice, the performance notice
mentioned at para 1 above stands withdrawn.

Kindly acknowledge receipt.

Yours faithfully,

For and on behalf of the President of India

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ANNEXURE - XIV
Registered Acknowledgement Due
7 DAYS NOTICE
__________________RAILWAY
(Without Prejudice)
To

M/s __________________

Dear Madam/Sir,

Contract Agreement No. ____________

In connection with _________________

1. Performance Notice notice under Clause 7.4 of General Conditions of Contract was given to you under
this office letter of even no., dated ______________ ; but you have taken no action to commence the
services / improve the quality of the services to the specified standards.
2. You are hereby given 7 days’ notice in terms of Clause 7.4 of General Conditions of Contract to
commence the service to make good the default, failing which further action as provided in Clause 7.4 of
the General Conditions of Contract viz. to terminate your Contract and complete the balance services
without your participation will be taken.
3. If your performance does not improve, on expiry of this period, a notice for termination of the above
contract shall be issued to you under which your contract shall stand rescinded and the services under this
contract will be carried out independently without your participation and your Performance Guarantee shall
also be encashed/ forfeited and consequences which may please be noted.
Kindly acknowledge receipt.

Yours faithfully

For and on behalf of the President of India

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GCC for Services, 2018; Ministry of Railways

ANNEXURE - XV
Registered Acknowledgement Due
TERMINATION NOTICE
__________________RAILWAY
(Without Prejudice)
No. ______________ Dated: ___________
To
M/s ___________
_____________

Dear Madam/Sir,
Contract Agreement No.____________
In connection with ________________

Seven days (7 days) notice was given to you under this office letter of even no, dated __________
but your performance has not improved! you have taken no action to commence the services /improve the
quality of the services to the specified standards.
Since the period of 7 days’ notice has already expired, the above contract stands rescinded in terms
of Clause 7.4 of General Conditions of Contract and the balance services under this contract will be carried
out independently without your participation. Your participation as well as participation of every
member/partner in any manner as an individual or a partnership firm is hereby debarred from participation
in the Bid for executing the balance services and your Performance Guarantee shall also be
encashed/forfeited.
In addition, your participation as well as participation of every member/partner in any manner as an
individual or a partnership firm is hereby debarred from participation in the bid for executing any work
being tendered by the said Railway division for a period of two years from the date of issue of this letter.

Kindly acknowledge receipt.

Yours faithfully

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GCC for Services, 2018; Ministry of Railways

For and on behalf of the President of India

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GCC for Services, 2018; Ministry of Railways

Annexure — XVI
FIRST AID FACILITIES TO BE PROVIDED TO ALL WORKERS BY CONTRACTOR

Workers do not exceed 50 Workers exceed 50

Sr. No. Item
Qty. Qty.

1 Small sterilized dressings 6 12

2 Medium size sterilized dressings 3 6

3 Large size sterilized dressings 3 6

4 Large size sterilized bum dressings 3 6

5 Packets sterilized cotton wool 6

(15gms)

6 lodine bottle 1 (30ml) 1 (60ml)

7 Bottle containing salvolatile having 1 (30ml) 1(60ml)

the dose and mode of administration
indicated on the label

8 Adhesive plaster roll 1

9 Snake bite lancet 1 1

10 Bottle of I Potassium Permanganate 1(30gms) 1(30gms)

crystals

11 Pair of scissors 1 1

12 First Aid leaf let 1 1

13 Aspirin Tablets 1(100(each of 5 grains 1(100(each of 5 grains

14 Ointment for burns 1 1

15 Anti-septic solution 1 1

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Annexure — XVII
REGISTER OF CORRECTION SLIPS

Correction Slips Reference Date of Initials of

receipt person in
No. Date Page Item Subject charge of
book

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