File No.

Government of Gujarat

Roads & Buildings Department

Date: /05/2024

To,

1. Superintending Engineer, Ahmedabad Circle

2. Superintending Engineer, Mehsana Circle
3. Superintending Engineer, Rajkot Circle-1
4. Superintending Engineer, Rajkot, Circle -2
5. Superintending Engineer, Vadodara
6. Superintending Engineer, Surat
7. Superintending Engineer, Ahmedabad (Panchayat)
8. Superintending Engineer, Gandhinagar (Panchayat)
9. Superintending Engineer, Rajkot (Panchayat)
10. Superintending Engineer, Vadodara (Panchayat)
11. Superintending Engineer, Surat (Panchayat)
12. Superintending Engineer, Capital Project Circle, Gandhinagar
13. Superintending Engineer, City Circle, Ahmedabad
14. Superintending Engineer, National Highway Circle, Gandhinagar
15. Superintending Engineer, National Highway Circle, Vadodara
16. Superintending Engineer, Design R&B Circle, Gandhinagar.
17. Superintending Engineer, Mechanical Circle, Gandhinagar
18. Superintending Engineer, Electrical Circle, Gandhinagar

Sub:-Standard Operating procedure to debar/penalize/declare the Contractor/

Concessionaire as Non-Performer in R & B Department works.

Sir,
It has been noticed that in many cases there are lapses on the part of Contractors/
Concessionaires in fulfilling contract provisions during development period, construction
period and O&M Stage, that causes delay/acceptance of sub standard works leading to
premature distress/failure during construction.
2. In order to ensure construction of roads as per standards and specifications laid
down in the contract/Concession Agreements and to avoid Project delays, it has been
decided to debar/penalize/declare Contractors/ Concessionaires as Non-Performer for their
lapses in lieu of MORT&H guideline dtd.07.10.2023 for works undertaken by Roads and
Buildings Department through State Budget. It is clarified that such actions of the Authority
would be without prejudice to the remedies available to Roads and Buildings Department or
its executing agencies under the Contract/Concession Agreement/Governing Laws.

Sl. Type of Deficiency Action to be taken against

No. Contractor/Concessionaire
1. Failure to set up institutional mechanism and Declaring the Contractor/
procedure as per Contract. Concessionaire as non-performer till
institutional mechanism and
procedure is properly set up as
verified by the “Nominated Officer”.
2. Fails to complete or has missed any milestone Declaring the Contractor/
and progress not commensurate with Concessionaire as non-performer till
contiguous unencumbered project length milestone is achieved or project is
/ROW available even after lapse of 6 months completed as certified by the
from respective project milestone/schedule “Nominated Officer.”
completion date, unless extension of time has
been granted due to Authority’s default or
force majeure.
3. Fails to achieve progress commensurate with Declaring the Contractor/
funds released from Escrow Account Concessionaire as non-performer till
(Equity+Debt+Grant) in BOT or HAM Project progress commensurate with funds
and variation is more than 25% in the last 365 released is achieved as certified by
days. the “Nominated Officer”.
4. Fails to achieve the target progress or Declaring the Contractor/
complete the project as per schedule agreed Concessionaire as non performer till
at the time of sanctioning of fund under One completion of Project or
Time Funds Infusion (OTFI) or relaxations to achievement of Project target as
contract conditions to improved cash flow certified by the “Nominated Officer”.
solely on account of Concessionaire’s
failure/default.
5. (a) Fails to complete rectification (excluding Declaring the Contractor/
minor rectifications) as per time given in Concessionaire as non-performer till
non-conformity reports (NCR) in rectification(s) is completed as
design/completed works/maintenance or certified by the “Nominated Officer”.
reported in Inspection Reports issued by
Quality Inspectors deployed by the
Authority or officers of the Authority.
(b) Fails to complete minor rectifications
exceeding 3 instances in a project not
completed as per time given in non-
conformity reports (NCR) in
design/completed work/maintenance.
6. Fails to start the work or causes delay to Declaring the Contractor/
maintenance & repair/overlay of the Project. Concessionaire as non-performer till
it is completed as certified by the
 “Nominated Officer”.
7. Fails to completed Punchlist items even after Declaring the Contractor/
lapses of time for completion of such items Concessionaire as non-performer till
excluding delays attributable to the Authority. punch list items are completed as
certified by the “Nominated Officer”.
8. Occurrence of minor failure of structure/ Rectification by Contractor/
highway due to construction defect wherein Concessionaire at its own cost. In
no causalities are reported. addition, penalty of 5% of contract
(Causalities include injuries to human being or value of failed/defective work or
animals) 0.5% of contract value of whole
work, whichever is more, shall also
be imposed and written warning.
The Key personnel/Site
Engineer/Supervisor (head of the
Structure in case of failure occurred
on structures or head of
Pavement/Highways in case of
pavement failure) may be kept on
watch list for any future recurrence
besides issuing written warning.
The rectification shall be certified by
the “Nominated Officer”.
9. Occurrence of major failure of structures Rectification by Contractor/
/highway due to construction defect wherein Concessionaire at its own cost and
to casualties are reported. debarment up to 1 year or till
(Causalities include injuries to human being or completion of instant work,
animals) whichever is higher, in NH or
centrally sponsored road works. In
addition, penalty of 5% of contract
value of failed /defective work or
0.5% of contract value of whole work
whichever is more, shall also be
imposed.
The key personnel/ Site
Engineer/Supervisor (head of the
Structure in case of failure occurred
on structures or head of Pavement/
Highways in case of pavement
failure) will be removed from the
Project and debarment of concerned
key personnel up to 2 years in on
works under taken by R&BD.
The rectification shall be certified by
the “Nominated Officer”.
10. Occurrence of major failure of structures Rectification by Contractor/
/highway due to construction defect leading to Concessionaire at its own cost and
loss of human lives besides loss of reputation debarment up to 3 years or till
 of the Authority etc. completion of instant work,
whichever is higher in NH or
centrally sponsored road work. In
addition, penalty of 10% of contract
value of failed/defective work or
1.0% of contract value of whole
work, whichever is more, shall be
imposed.

The Key personnel/ Site

Engineer/Supervisor (head of the
Structure in case of failure occurred
on structures or head of pavement/
Highways in case of pavement
failure) will be removed from the
Project and debarment up to 3 years
on works under taken by R&BD.

The rectification shall be certified by

the “Nominated Officer” or a 3
member committee.

(“Nominated Officers” is any officer of not less than rank of Superintending Engineer as
authorized by Secretary, R&BD for this purpose.)
3. Above amendments shall apply Mutatis Mutandis to the provisions of SBD, EPC,
Hybrid Annuity Model (HAM) & Build Operate Transfer (BOT) agreement.
4. Concern Chief Engineer & Addl. Secy. shall be the competent authority for certifying
the report submitted by “Nominated Officer” regarding completion of the rectification.
5. Before deciding a Contractor/ Concessionaire as Non-Performer or
debarring/penalizing it, the concerned authority shall issue a notice to the
Contractor/Concessionaire by giving 15 days’ time to furnish its written reply and allow
personal hearing, if so desired by the Contractor/Concessionaire, before the competent
authority or any person designated for the purpose. Such a notice shall not be issued
without the approval of an officer below the rank of Chief Engineer & Addl. Secy. In case of
projects where public safety is endangered by the behavior/conduct/action of the
Consultant/contractor/Concessionaire from participating in ongoing/ future bidding upto 1
month period during which the regular process of debarment shall be concluded.
6. The competent authority for approval of penal action as above will be the concerned
Chief Engineer in respect of works under taken by R&BD.
7. The firm/individuals on which penal/deterrent action is taken may represent to the
“Reviewing authority” against the action/penalty imposed. The “Reviewing Authority” shall
be the Secretary, R&BD in respect of works under taken by R&BD.
8. Upon declaration of non-performer /debarred, the Contractor/ Concessionaire will
not be able to participate in any bid with R&BD or its executing agencies, till such time the
Contractor/Concessionaire is removed from the list of non-performers or the debarment
persists. The Contractor/ Concessionaire shall include its JV partners, promoters etc. whose
credentials were considered while qualifying them for the project. Non performer/
debarment status of a bidder on the bid due date will be the criteria for eligibility a bidder to
participate in the said bid.
9. Officer on Special Duty (S.P.) shall be single source designated officer for maintaining
the record /data related to debarment.
10. This issues with the approval of Competent Authority.

Yours sincerely,

( )
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