In exercise of powers conferred by Section 79
Sub-section (g) of the Electricity (Supply) Act 1948 (Central Act 54 of 1948)
the K.S.E. Board is pleased to make the following Regulations for the procedure
to be followed by the Board in inviting, considering and accepting Tenders. (i) These Regulations may be called the K.S.E. Board (Tenders) Regulations,
1968. (ii) The procedure contained in these regulations shall be followed in all
cases except when specifically provided otherwise for inviting tenders whether
in respect of works or in respect of purchase. (iii) These regulations shall come into force at once. (a) 'Board' means the K.S.E. Board. (b) 'competent Authority' means the Board or the officer as the case may be
exercising the corresponding power as per Board's Delegation of powers in force
from time to time. (c) 'Contractor' means a person, syndicate, company or firm that has entered
into a contract with the Board and shall include his heirs, legal
representatives or assigns. (d) 'Contract purchase' means purchase of any material required for the
Board including building materials, electrical or other machinery or spare
parts thereof made after entering into contract with the seller, an outside agency. (e) 'Contract work' means work let on contract to outside agency, such work
being inclusive of the supply of materials for the work or not. (f) All other terms used in these Regulations will have the respective
meanings assigned to them under the Electricity (Supply) Act and the Indian
Contract Act. Unless otherwise specifically provided for in any
of the Regulations or Rules thereunder framed by the Board, the competent
officer shall invite tenders for execution of all works or supply of materials
except for the cases mentioned below: - (1) Supply not exceeding Rs. 100/- (2) Purchase of books and periodicals. (3) Purchase from Government Stores. (4) Purchase of controlled Stores from controlled stock. (5) Purchase of articles covered by Rate or Running contracts settled by the
Director General of Supplies and Disposals, New Delhi or the Stores Purchase
Department of State Government, unless the market rates themselves of those
articles are more competitive. (6) In the case of patents and specialities to which tender system cannot be
applied with advantage. (7) Works, the P.A.C. of which is less than Rs. 2,500/-. (8) Materials, tools and plant etc. which are covered by grants or loans
from foreign Governments and the purchase or procurement of which are covered
by specific agreements with Government of India. (9) Purchase of Stores (these will be mostly measuring and indicating
instruments) from stockists who stock them under stock and sale license from
the State Trading Corporation of India. Tenders shall be invited as far as possible in the
most open and public manner possible by advertisement in news papers having
wide circulation in the State and when the tenders relate to specialized work
or supply by advertisement in Newspapers having wide circulation also outside
the State especially in places where from tenders could be anticipated, so as
to get the most, competitive terms and consequent economy to the advantage of
the Board. This will however not preclude the competent
authority from: - (1) Resorting to limited tender system by direct invitation to a limited
number of firms or contractors (not less than four) whenever the estimated
value of the work/supply is less than Rs. 2,500/- (2) When there are sufficient reasons, which shall be recorded by the
competent officer, for holding that it is not in public interest to call for
tenders by advertisement. (3) When the competent officer is satisfied as recorded by him assigning
specific reasons due to urgency or other sufficient grounds that it will be
disadvantageous or uneconomical to the Board to resort to open tender by
advertisements. (4) The tender notice shall include among other things:- (i) The time and place when and where the contract documents can be seen,
the authority from whom blank forms can be obtained and the amount to be paid
for a set of plans, specifications or other tender documents. (ii) To whom the tenders are to be submitted, the last date and time at which
tenders are to be returned and by whom when and where the tender shall be
opened. (iii) The probable amount of contract, where such amount can be foreseen and
where it is considered necessary to give the information the earnest money to
accompany the tender and the amount and nature of security deposit required in
the case of successful tenderer. Tender specifications should be correctly and
carefully drawn up so that there is no room for ambiguity about the correct
type, size, packing etc. of the materials required in the case of contract
purchase or the correct details of the work concerned in the case of contract
works. In all cases of tenders, sufficient time shall be
allowed for tenders to come in. In fixing the date for receipt of the tenders
the competent officer issuing the tender notification should take into account
the time required for publicity, for the receipt of tender forms by the
tenderers and for the preparation and dispatch of tenders. Save in exceptional
cases where supply or works are restricted to local contracts only, the minimum
time allowed normally shall be 7 days in respect of urgent works or supply of value
of Rs. 10,000/- or less and otherwise it shall be 15 days. Atleast a month's
notice shall be given in respect of works or supply costing more than Rs. 1/-
lakh and subject to this minimum standard the competent officer may giving due
consideration to the relevant factors prescribe the time. For works or
purchases costing over Rs. 25/- lakhs the minimum period should be 3 months but
this may be relaxed by Board in emergent cases. In all cases of invitation to tender, care should
be taken to see that sufficient time is allowed to the tenderers to submit
their tenders. In fixing the date for the receipt of tenders, the purchasing
officer should take into account the time required for publicity, for the
receipt of the tender forms by the tenderers and the preparation and dispatch
of the tenders. Subject to the minimum time specified he may exercise his
discretion in fixing the due date keeping in mind the nature and supply
position of the articles required to be purchased. Where the time for the return of tender is
extended, due publicity shall be given to the extension of time in the same
manner as in the case of tender invitation. The invitation to tender should also specify a
period during which the tenderers are to keep their rates firm. The time fixed
for firmness of offer should be enough to cover the normal delay expected in
processing the tenders and placing the final orders after going through all
formalities. Long periods of firmness should however be avoided as it is likely
to restrict the competition. Tender forms shall be supplied to intending
tenderers at the rates prescribed by the Board provided however that the Board
shall be competent to revise the rates as and when deemed necessary. (i) A complete set of drawings showing the general dimensions of the
proposed work or materials. Details of various parts of articles to be supplied
or works to be done should be clearly defined by specifications and drawings. (ii) A complete specification of the work to be done and of the materials to
be used or supplies to be made unless reference can be made to some standard
specifications. (iii) A schedule of the quantities of various items of works to be done or
supplies to be made. (iv) A set of conditions of contracts to be complied with by the persons
whose tender is accepted. The Board shall for the purpose prescribe and
maintain a set of general conditions of contract besides special conditions
that may be prescribed to particular contracts giving due consideration to its
salient features and these conditions shall in all respects be binding on the
parties to the contract and shall also form a part of the agreement. The
competent authority may however relax any of the conditions deemed unnecessary
for sufficient reasons for a particular contract. The earnest money shall be as per the scales and
payment in the form prescribed by the Board. In the case of firms and
contractors of repute the competent authority may exempt them from the payment
of earnest money and consider the tender. (i) The tenderer shall have free access to all contract documents and
specifications. (ii) No tender notice shall normally be issued without the appropriate
contract documents and specification having been prepared and approved by the
competent authority and made available for ready examination by the tenderers. (iii) All contract documents and specification shall be complete in all
respects. The assistance, tools and plant or materials if any provided by the
Board should be clearly stated and in the case of works when materials are
supplied by the Board the terms and conditions of supply and such relevant
details shall be furnished with no room for any ambiguity. (i) No tender shall be accepted from any person directly or indirectly connected
with Government service, under the Board or a local authority. (ii) No tender which is not in the prescribed form (Where forms are
prescribed) will be accepted. (iii) No tender involving an uncertain or indefinite liability should be
accepted without the previous consent in writing of the competent authority. (iv) No tender which is not accompanied by the requisite earnest money (when
earnest money is prescribed) will be accepted unless exempted by specific
orders of the competent authority. (v) No tender which is not properly signed will be accepted. (vi) No tender from a black-listed firm or contractor will be accepted. (vii) No tender received late will be accepted. Due allowance may however be
given for delay in delivery by postal authority or other genuine reasons beyond
the control of the tenderer. (viii) Telegraphic tenders if received in time may be considered provided they
are confirmed by detailed tender with the requisite formalities received within
two days from the opening of the tender and also provided there is proof of its
being posted before the opening date. (ix) No tender subject to conditions not provided for in the tender
specification shall generally be accepted. (x) In case where the P.A.C. is beyond the powers of the officers to award
the contract no negotiation after opening of tenders be made except with the
prior approval of the Board. (xi) Earnest money should be in the form specified by the Board as acceptable
from time to time. Sealed tenders should only be invited with instructions
to the tenderers to give such indication on the cover to make it
distinguishable as to which enquiry the tender relates. Tenders may be received
by registered post or in person. Dated initial with the time of receipt shall
be noted in the cover by the officer authorized to receive the same and they
shall be kept in sealed boxes or lockers provided for the purpose after
registering them in the Register of tenders immediately on receipt. The tenders
thus kept under safe custody will be taken out only by the competent officer at
the time of opening of tender. The tenders shall be opened by the competent
officer in the presence of another officer of the Board also at the declared
time and place and the tenderers or their accredited representatives may be
allowed to be present at the time of opening the tenders if they so desire. The
tenders received should be serially numbered and entered in the register kept
for the purpose and should be opened in the same order in which they have been
received. The names of representatives present at the opening of tenders should
also be entered in the Register. Late tenders should also be entered in the
Register and the reasons for their inclusion or exclusion recorded in the remarks
column. The Officer opening the tender shall initial each
tender and also attest all corrections in each tender which have been made and
initialed by the tenderers. If there are corrections in the tender unattested
by the tenderer the officer shall make a note of the same in the tender itself.
The officer shall also further cross-check the details of tenders received as
per the register with those opened and recorded in the comparative statement of
tenders. If there are discrepancies between the rates in
words and figures, the rates in words shall hold good. The officer receiving
the tender shall record this in the tender duly attested. If there are
discrepancies between the original and duplicate, the rates in the original
shall hold good. If there are omissions only in the original and not in the
duplicate the rates in the duplicate tender shall be accepted. A comparative statement shall be made out from the
tenders received from various tenderers reduced to the same base to render it
possible for the competent authority to make a final decision. Before the final
decision is made the competent authority shall also examine the tenders
received along with the comparative statement and satisfy that no further
corrections other than those at the time of opening have been made and that the
data furnished in the comparative statement is correct. (i) In selecting the tender to be accepted due regard shall be given to the
financial status of the tenderer, capability, security offered, service
facilities, experience and record of service and other relevant factors. (ii) The various tenders should be compared in respect of price, quality,
terms of delivery, terms of payment etc. (iii) In selecting a tender due care should be taken to examine whether the
tender is in accordance with the specification required and if by accepting the
tender further commitment for the Board are involved this may be worked out and
considered to decide which is more economical. (iv) As far as possible firm price offers should be preferred to offers for
price variation unless a ceiling limit for the variation is accepted. Price
variation conditions without ceiling limit need be accepted only in very
special cases and in unavoidable circumstances and in such cases where it is
indispensible the standard price variation clause may be included. (v) In the case of electrical and mechanical works and supply of materials
therefor the following further criteria shall also apply. Efficiency, running
cost, durability of materials, reliability of guarantee, necessary of repairs
and attention, saving in spare parts due to standardisation, suitability for
the purpose in view, technical qualifications, reputation and standing of the
contractor and agent. Other conditions being equal the lowest tender
shall be accepted and in cases where the lowest tender, is not accepted the
reasons therefor should be recorded. The selection of tender shall however be
made with due regard to the import policies and price preference allowed for
indigenous products and products of industries in the State. Longer delivery or
completion periods likely to cause direct or indirect loss to the Board may
also be taken into consideration in accepting tenders. (i) The submission of a tender in response to an invitation does not in
anyway make the Board liable to accept it. The Board is not bound to accept any
tender or to assign reasons for the rejection of any tender and the decision of
the competent authority shall be final. (ii) When a tender is rejected on confidential grounds such information shall
be recorded and kept confidential and no action for libel shall lie against the
Board. (iii) Where a lowest tender is rejected it shall be reported to the Board or
Chief Engineer in the case of acceptance at lower level and the reasons for
such rejection shall be recorded and made available for audit if and when
required. (i) The acceptance or rejection of tenders shall be decided by officers of
the Board who are empowered to do so in this behalf and in accordance with the
standing orders of the Board. (ii) All tenders for the execution of work or purchase of stores the value of
which exceed Rs. 10,00,000 /- and Rs. 1 / - lakh respectively will be reserved
for consideration and acceptance by Board. (iii) In all cases requiring sanction of the Board, the recommendation for the
finalization of tender should be submitted to the Board within one month of the
opening of the tender. If there is any unavoidable delay a report should be
submitted within the above period giving reasons for the delay in finalizing
the tender and indicating the time by which the recommendation could be
forwarded to the Board. (iv) In such cases requiring sanction of the Board the Chief Engineer will
forward his recommendation with the tender documents tabulation statements and
relevant files to the Secretary of the Board through the Chief Accounts Officer
who will verify and put up notes thereon. The Chief Accounts Officer should
ensure transmitting the papers with his remarks without any delay keeping in
view the last date upto which the tenders are valid. The Secretary will
circulate the notes to the Accounts Member, Engineer Member and Chairman and
after obtaining their views put up the proposals to the Board for its
consideration and final orders. In special cases or where large purchases are
involved the Board may if deemed necessary constitute an adhoc committee
consisting entirely of officers of the Board to scrutinize and make a report to
the Board. The authority immediately superior to the authority
competent to decide a tender may review periodically and the Board at all times
such percentage of the contracts awarded, call for an explanation of the awards
where necessary and issue such directions as deemed necessary for future guidance
besides the audit which will keep a watch on the propriety of contracts
awarded. If the contract, even when it is within the purview of acceptance of
an officer, is to be of very special nature, he should, before inviting tenders
publicly submit the contract document to his immediate superior for approval or
remarks together with a copy of the proposed advertisement for tenders and the
form in which tenders are to be submitted. The tender notices for works costing more than Rs.
10/- lakhs should be issued only with approval of the Board. Notwithstanding the tenders having been invited, if
the Board feels that the tenders are too high or that it is disadvantageous to
award the contract confining to the tenders received alone, the Board shall be
competent to reject all the tenders and do any one of the following: - (a) invite fresh tenders (b) invite quotations on negotiated basis, (c) dispense with contract agency and execute the works departmentally. When a tender has been accepted finally such
acceptance shall be communicated to the successful tenderer in the most
expeditious manner and in any case before the period of validity expires if
such period of validity exists. A formal order should also be placed with the
successful tenderer simultaneously. The order should be in clear terms
furnishing the description, quantity, cost, term of payment and other relevant
details of the work or supply. In the cast of supply, the terms of delivery
should be clearly specified and clear dispatch instructions should also be
given. The competent authority should arrange to take a
security from the successful tenderer for the due fulfillment of the contract
as per the scales approved by the Board and payment in the form prescribed by
the Board for the purpose: Provided however that the Board shall be fully
competent to revise the scales for payment of security deposit as and when
deemed necessary or to alter the form of payment. (a) [1](i) An agreement should be entered into with the successful tenderer
embodying the conditions of the order clear in respect of all relevant details
and providing for the penal clauses for any breach of the conditions of the
contract by officers legally empowered to execute agreement on behalf of the
Board. The competent authority executing the agreement shall ensure that terms
of the agreement are clear and comprehensive so as to give no room for
ambiguity or disputes on the interpretation of the clauses. The agreement shall
be finalized in consultation with the Legal Adviser whenever necessary.
Agreements Wherever possible may be executed on one or other of the standard
forms, but they may be modified to suit the requirements of any particular
case, or for works of great magnitude, after consulting the Legal Adviser of
the Board. In cases where it is considered, that none of the standard forms can
be used even with the suitable modification, the contract should be got
prepared specifically by the Adviser of the Board. When tools and plant or
other materials for the work are provided departmentally the terms therefor
including the place at which the materials will be delivered should be made
clear in the agreement. (ii) [2][In all
cases of contracts awarded by the Board, Supplementary Agreements, if any found
necessary or any variation or modification to the Original or Supplementary
Agreement, shall be executed or made only after getting prior approval of the
Board in writing.] (b) After placing the order the execution of the agreement should be got
done as expeditiously as possible and as a rule no payment in respect of the
contract shall be made unless warranted in special circumstances and with the
concurrence of a higher authority, before execution of the agreement. (c) The security deposit shall be liable to forfeiture in case of breach or
failure to perform the contract as per the terms of the agreement. But in other
cases the security deposit shall be released or returned to the contractor
within a maximum period of three months from the expiry of the period of
contract or completion of work or expiry of the guarantee period as the case
may be as per the terms of the contract. In exceptional cases however the Board or the
competent authority authorized by the Board may exempt a firm of established
standing from the obligation of furnishing the security deposit or reduce the
same or from the obligation to enter into an agreement but in no case shall
exemption be granted to an individual contractor. Tenders and agreement in original shall be kept in
the custody of the competent authority who decides the tender and copies
thereof shall only be furnished to the persons and departments concerned. These Regulations shall supercede all existing
orders and rules in the matter of inviting, considering and accepting tenders. Provided however that:- (1) In matters not specifically covered hereunder the rules and standing
orders of the Board relevant in that context shall apply; and (2) That all transactions entered into in pursuance of the Rules and
Standing Orders of the Board so far in the matter of inviting, considering and
accepting tenders and awarding contracts shall be valid and binding on the
parties concerned in all respects.THE KERALA STATE ELECTRICITY BOARD
(TENDERS) REGULATIONS, 1968
PREAMBLE