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GOVERNMENT OF KERALA
Abstract

Finance Department - Sanctioning of tender excess, revised estimate etc -


modified procedure- orders issued.
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FINANCE (INDUSTRIES & PUBLIC WORKS - B) DEPARTMENT

G.O.(P) No. 375/15/Fin. Dated, Thiruvananthapurani, 24.08.2015

Read 1) G.O(P) No. 214/2013/Fin dated 09.05.2013


G.O (P) No. 03/2015/Fin dated 05.01.2015
G.O (P) No.295/2015/Fin dated 15.07.2015
G.O(P)No. 36/2013/PWD dated 17.04.2013

ORDER

Government have issued orders enhancing the powers delegated


to Departmental officers, Government Tender Committee, and Committee of
Secretaries to sanction tender excess1 vide Govt order read l above. As per
Government Order read 4° paper!'above CPWD data SoR and National
Building code guidelines were adopted in State Government Departments
with effect from 01.10.2013. It has come to the notice of Government that
the existing procedure in approval of tender excess, sanctioning of revised
estimate etc results delay in execution of many public works which. in turn
will result in cost escalations.
2 .Government have examined the matter in detail and are
pleased to issue the following orders.
a) From September 2015 onwards cost • estimates of all Public
Works executed by various Engineering Departments shall be
prepared only through the software, Project Information and
Cost Estimation (PRICE) developed by NIC.

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The following enhanced delegation of powers for sanctioning
tender excess and revised estimates will be allowed to
departmental officers provided the estimates are prepared and
Local Market Rates (LMR) are worked out using the PRICE
software using approved cost indices.

This will be applicable only if tendering is done through


e-procurement mode and adequate participation and
competition is ensured.

3.Guidelines for sanctioning tender excess.


At present approval of Government is required if the percentage of tender
excess exceeds prescribed limit. Since this cause delay in tender approvals
sanctioning of tender excess at different levels based on percentage rates
stands withdrawn. Instead, the Technical Sanction amount of the work
shall be the basis for obtaining approvals- at higher levels.

The acceptance of tender excess:shall be based on LMR or quoted amount


whichever is less. In cases where estimates were prepared based on
previous SoR and the estimated rate has been changed at the time - of
tendering, then PAC may be re-casted to the prevailing rate at the time of
tendering. ri

All tender excess upto 10% above estimated rate or LMR whichever is less,
shall be approved by the competent authority themselves with valid
justifications
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d) Normally no tender excess above 10% of estimated PAC will be allowed


If the lowest tender received exceeds 100/9 of the estimated cost, all such
works shall be re-tendered under normal circumstances. However, if the
Heads of Departments feel that some works exceeding 10% of PAC are to be
urgently executed in the exigency of public service, then all such works shall
be sanctioned at Government level with the concurrence of Finance
Department. The Head of Department shall exercise due diligence in
recommending each such proposal and should personally evaluate the
circumstances that warrants such special considerations and submit a
detailed justification for the acceptance of each such proposals.

4. Delegation of powers for acceptance of tender excess

The tender excess in respect of works having Technical Sanction amount


up to Rs.5 crore, shall be approved by the competent departmental authority
themselves. In other words, all tender excess of works having Technical
Sanction amount upto Rs.25 lakhs, Rs.75 lakhs, upto Rs.5 crore, can be
approved by Executive Engineer, Superintending Engineer and Chief
Engineer concerned with tender excess not exceeding 10%.
The tender excess(not exceeding 10%) in respect of works having
Technical Sanction amount above Rs.5 crores and upto 10 cores shall be
approved by the Committee headed by the Secretary of Administrative
Department.
c)The tender excess(not exceeding 10%) in respect of works having
Technical Sanction amount above Rs.10 crores shall be approved by the
Committee of Secretaries headed by the Chief Secretaiy.
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5. Delegation of powers for Administrative Sanction/Revised Estimate

Sanction.

a) The validity of all Administrative Sanction (AS) shall not exceed two
years. During this period, Administrative Departfllent can issue revised
sanction provided the revised estimate is necessitated due to changes in
the approved cost index alone and not due to any extra item other than

those contemplated in the original estimate.


All Administrative Sanctions exceeding Rs.50 'aths shall be issued only
through PRICE Software, based on the prevailing Schedule of Rates.
Technical Sanction shall not exceed 10% of the Administrative Sanction
and in case if it exceeds this limit, then revised Administrative Sanction

has to be issued.
6. Delegation of powers in arranging emergency works
The Chief Engineers can arrange works on a quotation basis during
emergent situations subject to budget provision and within an annual ceiling
of 50 times to the existing financial powers given as per
GO(P) No.667/2000/Fin dated 22.03.2000. The other departmental officers
shall sanction quotation works upto a maximUm of 10 times of the existing
delegated powers in a financial year. This shall be subject to the following

conditions
a) All quotations shall be floated through the c-tender portal only with a

short tender cycle.


b)Any quotation exceeding the above limit shall be sanctioned only with
the prior approval of the Secretary of the Administrative Department.

7. Price variation Clause


Since State Government is also now following Government of India
rates for the preparation of estimates price variation clause followed in
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CPWD shall also be -adopted fgriate Government works in case of works


having period of completion exceeding 18 months.

8. In partial modification to the Government Order read as 2' above it is


further ordered that
a)The cost of tender forms /fees for works costing between Rs.10 lakh to
Rs.i Crore shall be revised to Rs 2500/-

b) The restriction imposed in the departmental supply of bitumen in respect


of all departmental works up to the limit of Rs.100 lakhs shall be dispensed
with.
9. The above guidelines will take effect from Vt September 2015 onwards.
By Order of the Governor
DR.K.M.ABRAHAM
Additional Chief Secretary (Finance)
To
The Accountant General (A&E) Kerala, Thiruvanathapuram
The Accountant General (G&SSA) Kerala, Thiruvanathapuram
The Accountant General (E&RSA) Kerala, Thiruvanathapuram
All Heads of Departments and Offices
All Departments of Secretariat:
All Private Secretaries to Ministers
Private Secretary to Chief Minister
Private Secretary to the Leader of Opposition
All Secretaries to Government
The GA(SC)Department (vide item no 7196 dated 12-8-2015)
The Secretary, Kerala Public Service Commission, Thiruvananthapuram
(with C/L)
The Registrar, University of Kerala/Cochin/Kozhikode/Kottayam
(with C/L)
The Registrar, High Court of Kerala
The Secretary, Kerala Human Rights Commission,
Thiruvananthapuram
The Managing Director, Kerala State Transport Corporation,
Thiruvananthapuram (with C/L)
The Secretary, Kerala State Electricity Board,
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C Thiruvananthapuram (with C/L)
The Secretary to Governor
JPhufJodal Officer, .finarice.keraIa.gOV.ifl
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Stock file/Office Copy
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Forwarde By Order

Section Officer

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