CONTRACTS

SALIENT FEATURES OF CONTRACTS: –

1. Lowest cost to the owner.
2. Speed of construction.
3. Best workmanship.
4. Future business between the owner and contractor based on past experience.

FORMS OF CONTRACTS: –

1. LUMPSUM CONTRACT (1205-E): – The lump sum contract is a contract under which the contractor engages to carry out a work as specified within a given period for a fixed total sum. The payment of the sum being dependent on completion of the work as specified within the specified time. In such contracts a scale of rate may be agreed upon by which the payment of lump sum amount being regulated in the event of departure from the work. The reduction in work, if any, may be made at the discretion of competent authority for failure of the contractor or administration to get the work executed fully.

SCHEDULE CONTRACT (1207-E): – The schedule contract is a contract under which the contractor engages to carry out a work or effect supplies as specified and within a period at fixed unit rate or price for each of the various items comprising such work or supplies. The sum he is to receive depending on the actual quantities and kinds of work done or material supplied in completing the work or supply to specification and time. In this type of contract interim payment can be arranged through on account bill or running bills.

PIECE WORK CONTRACT (1208-E): – This means contract under which only unit rates or prices for various kinds of work or materials are agreed upon without reference either to the total quantity of work to be done or material supplied within a given period. The zonal contracts adopted on the Railway fall under this category. The execution of the items will be done on the basis of work orders placed by the administration on the contractor.

CONTRACTOR BILLS

Payment made to the firm or individual contractor is on the basis of bills submitted by them or bill preferred by Railway administration. The bills can be bifurcated into following categories.

1. Petty bills: – Bills submitted by outside parties for petty nature of work carried out by them or material supplied by them to the Railway administration are treated as petty bills. Bills for repairs and maintenance of office appliances plant and machinery etc. also fall under this category.
   1. Contractor bills: – This type is further bifurcated in two parts i.e. on account bills/running bills and final bills. Under this category payment arranged for contracts entered into as a result of finalization of tenders.

• Miscellaneous bills: – Under this category of bill payment made to other Government organizations including State Government are included. Payment to MSEB, P&T, Local self-governments and sewerage board for services rendered to Railway Administration are categorized.
  • Bills for stores supplied – These are the bills preferred by private parties for stores supplied to the Railway Administration. Checks of these bills are separately dealt in stores syllabus.

CHECK OF CONTRACTOR BILLS: – On receipt of the bill in accounts office for internal check it should be ensured that: –

1. The bill should be in original.
2. The bill should be prepared in ink or should be typewritten.
3. The bill should be prepared in Hindi or English.
4. Name of the work, Contract agreement No. and date, Bill number and date etc. should be available in the bill.
5. The amount, rate and quantity should be certified in words.
6. There should be no unauthorized scratching/overwriting etc. The competent authority should attest any correction made.
7. The bill should be signed by the executive as well as the contractor in token of correctness and acceptance respectively.
8. Measurement book number etc. should be quoted in the bill.
9. There should be no delay in preparation of bill from the date of measurement.
10. The allocation to which expenditure is proposed to be charged should be available in the bill. Correctness of the allocation should be ensured.
11. The arithmetical accuracy should be checked.
12. The rate, quantity should be checked with reference to contract agreement. Variation if any should be with the competent authorities approval.
13. Recovery such as Income Tax, Security Deposit, Cost of material supplied, Hire charges, Penalty, Risk and cost amount (if any), Water and Electrical charges should be ensured.
14. It should also be ensured that the expenditure has been incurred in respect of sanctioned work only and that it does not involved breach of standards of financial propriety.
15. Certificates regarding satisfactory completion of work, the work being as per the terms and conditions of the contract should be recorded by the executive.
16. Certificate regarding outstanding audit and accounts objections should also be recorded by the executive.
17. Certificate regarding return of balance material and tools and plants should be recorded by the executive.

1. Certificate regarding Technical Check i.e. The work has been carried out/completed as per specification and is acceptable to the railway administration should be recorded by the Chief Draftsman.
2. The contractor should record no claim certificate.
3. Executive should also certify that the work has been carried out as per codal provisions.
4. Availability of funds should be certified.