CTE-type Intensive Examination : “What all needs to be taken care

of and how?”

R K JoshiDCVO(T)

PREAMBLE

The CTE’s (Chief Technical Examiner) Organization of CVC (Central Vigilance Commission) deals with Technical matters and carry out examination(inspections) of works of various Central Govt. Departments & PSUs.

As per CVC’s instructions, CVOs to conduct these examination based on pattern of CTEO which help in system improvement & also result in savings.

In AAI in during 2014-15 recoveries amounting to Rs2.20 Crores were realized on account of CTE type examinations.

CRITERIA

Works are selected for inspection from quarterly progress reports being submitted by various Departments. as per CVC circular Dt 30.07.12:-

Civil/stores/purchase-Rs 5cr. And above; E&M/Elx & Comn/consultancy-Rs1cr.& above Horticulture works-Rs10 lakhs & above)

CVC order.pdf Inspections are done with prior intimation so

that concerned Engineers, and the tender accepting authority may clarify their points.

MANUAL ON EXAMINATION

In the year 2004, The ‘Manual for Intensive Examination of Works/Purchase Contracts for For PSU’s, Autonomous Bodies, Banks, Insurance Companies & Financial Institutions’ was released by CTEO wherein it was brought out that

“With a view to enlarge the scope of such inspections, the commission issued instructions that CVOs of various organizations should also conduct intensive examination of works/ purchase contracts based on the pattern of inspection carried out by CTEO.”

MANUAL FOR WORKS PURCHASE CONTRACTS.pdf This manual contains broad guidelines & all relevant

information to facilitate such inspection by CVOs.

Action Plan

Request for documentsCopy of Last bill paidOther documents as per Appendix

DOCOUMENTS.docx List of documents to be kept ready

for inspection at site Inspection

Administrative Approval and Expenditure Sanction(A/A&E/S)

Any activity pertaining to project shall commence only after accord of A/A & E/S.

Files pertaining to approval be glanced to ascertain that systemic procedures have been followed.

Check list CHECK LIST AA&ES.docx

Detailed Estimate (Technical Sanction)

Veracity of items / quantities / rates checked thoroughly.

Clue: Deviation from preliminary estimate. Splitting of works.

Must be accorded before award of work.CHECK LISTTS CHECK LIST.docx

Notice Inviting Tender & Draft NIT

e-Tender as per limits, Eligibility criteria, cut-off date, proper time period

for sale / submission. Published in web site and / (or) News papers. Restrictive stipulations curbing competition. Reverse auction carried out as per approved limits. Names of IEM’s included for 25 Crores works. Specialized agencies included for specialized

works. Deviation from detailed estimate. List of T&P & Machinery sought is logical.

PRE-QUALIFICATION

Disparity in treatment to bidders; Prequalification of ineligible firm(s); Eligible bidder(s) ignored/ disqualified; Communication to non-qualified bidders. Evaluation of similar work considered. Proof of own/possess of plant &

machinery checked as per NIT.

Bidding Process(e-Bids)

Extension of dates (if any) approved by competent authority.

3 envelope bid system followed.

Opening committee approved by appropriate authority.

There is minimum 3-5 days gap between the last date of Tender submission & date of opening of Bids for submission of hard copy of Unconditional acceptance & EMD

Post tender manipulations if any which have price implications.

JUSTIFICATION

Statement uploaded before opening of Commercial Bid.

Veracity of rates checked thoroughly.

Clue: Deviation from detailed estimate.

For market rate items average of 2-3 quotations is considered.

Latest local market rates & labour rates considered.

AWARD OF WORK

Verification of credentials of L-1 bidder carried out before award.

Proper Financial concurrence given and acceptance recorded by accepting authority.

Agreement is signed within 30 days of award.

ESSENTIALS OF WORKS

Policies of Insurance from date of start of work obtained.

BGs for security / performance.

PF & ESI registrations, Labour license timely obtained.

Specialized sub vendors approved as per contract.

Site office, vehicle, computer, laboratory etc as per contract

Mandatory Lab, apparatus,T&P arranged etc.

Technical staff deployment & their credentials as per contract.

Land allotment & Licence fees charged as per contract.

Charges for electricity & water are billed as per contract.

SITE RECORDS

Site order book.

Hindrance register.

Material test registers

Calibration record of plant.

Approvals of designs ,design-mix, materials etc.

Payment records.

In principle approvals of deviations, extra/substituted items.

Amount withheld for EOT

Work inspection

Measurement cross check.

Items provided as per specifications.

Stores maintained properly.

Payment of advances.

Test checks.

Extra item / deviation items / substitute items.

Workmanship/line/levels, damages, etc.

Safety precautions, helmets, Apron etc as per contract.

Work inspection ..contd.

Testing of equipment / item / work.

Payments as per agreement.

Collection of samples for testing from Testing Institutions.

Payments of escalations.

Part rate payments.

Liquidated damages & Security Deposit.

REPORT WRITING “CTE-type Examination

Report”Facts observed after the inspection

are to be briefly brought out as given in the CTEO’s Manual for IE of works. REPORT.docx

Noticed discrepancies are to be written under head “observations” with a view to seek comments from concerned Department.

THANK YOU