Post acceptance activities of

contract
Devendra Kumar, CI(Lib)
 Stages in contract administration
• Scope of works
• Abstract estimate
• Initiation of proposal for work
• Concurrence of finance
• Approval of work proposal
• Preparation of detailed estimate and its
vetting by finance
• Preparation tender document
• Floating of tender
• Opening of tender
• Comparative statement
• Constitution of TC
• Brief note for TC
• Minutes of TC
• Acceptance of tender
• Issue of LOA
• Return of EMD of unsuccessful bidder
• Work order
• Submission of Performance Guaranty
• Agreement
• Monitoring of work
• Measurement of work
• Passing of bill
• Security deposit
• Variation
• Excess over estimate
• Revised estimate
• Test check protocols
• Closing of estimate
• Termination of contract
• Final bill
 Letter of acceptance (LOA)
• Intimation to the bidder regarding acceptance
of his/her bid
• Contains schedule of rates & quantity,
important terms & conditions, time of
commencement of work etc.
• Its receipt should be acknowledged
• It acts as binding contract till formal
agreement is signed
 EMD
• For works estimated to cost up to ₹ 1 crore 2% of the
estimated cost of the work
• For works estimated to cost more than ₹ 1 crore ₹ 2 lakh
plus ½% (half percent) of the excess of the estimated cost
of work beyond ₹ 1 crore subject to a maximum of ₹ 1 crore
• Note: (i) The earnest money shall be rounded to the
nearest ₹100. This earnest money shall be applicable for all
modes of tendering.
• (ii) Any firm recognized by Department of Industrial Policy
and Promotion (DIPP) as ‘Startups’ shall be exempted from
payment of earnest money deposit detailed above.
• It shall be understood that the tender documents
have been issued to the tenderer and the
tenderer is permitted to tender in consideration
of stipulation on his part, that after submitting his
tender he will not resile from his offer or modify
the terms and conditions thereof in a manner not
acceptable to the Engineer. Should the tenderer
fail to observe or comply with the said
stipulation, the aforesaid amount shall be liable
to be forfeited to the Railway.
• If his tender is accepted this earnest money will
be retained as part security for the due and
faithful fulfillment of the contract in terms of
Clause 16 of the Standard General Conditions of
Contract. The Earnest Money of other Tenderers
shall, save as herein before provided, be returned
to them, but the Railway shall not be responsible
for any loss or depreciation that may happen
thereto while in their possession, nor be liable to
pay interest thereon.
• The Earnest Money shall be deposited in cash
through e-payment gateway or as mentioned in
tender documents.
 Forms in which earnest money is
acceptable
• Cash
• deposit receipts
• pay orders
• demand drafts
• guarantee bonds executed by State Bank of India
of any of the nationalized bank or by a scheduled
bank
• Government Securities (Stock Certificates, Bearer
Bonds, Promissory Notes, Cash Certificates etc.)
should not be accepted as earnest money.
 Work order
• It is the authority to commence the work
• It contains number , date, name of work,
description of work, quantity, rate, value etc.
• It specifies date of commencement and date
of completion
 Security deposit
• The Earnest Money deposited by the Contractor with his
tender will be retained by the Railways as part of security
for the due and faithful fulfillment of the contract by the
Contractor. The Security Deposit shall be 5% of the contract
value. Security Deposit may be deposited by the Contractor
before release of first on account bill in cash or Term
Deposit Receipt issued from Scheduled Bank, or may be
recovered at the rate of 10% of the bill amount till the full
Security Deposit is recovered. Provided also that in case of
defaulting Contractor, the Railway may retain any amount
due for payment to the Contractor on the pending "on
account bills" so that the amounts so retained (including
amount guaranteed through Performance Guarantee) may
not exceed 10% of the total value of the contract.
• In case of contracts having value equal to or more than ₹ 50 crore
(Rs Fifty crore) the Security Deposit may be deposited as Bank
Guarantee Bond also, issued by a scheduled bank after execution of
contract documents, but before payment of 1st on account bill.
Provided further that the validity of Bank Guarantee Bond shall be
extended from time to time, depending upon extension of contract
granted in terms of Clause 17 of the Standard General Conditions of
Contract.
• In case Security Deposit has been submitted as Term Deposit
Receipt/Bank Guarantee Bond in full amount, the Earnest Money
deposited by the Contractor with his tender will be returned by the
Railways.
• After the work is physically completed as certified by competent
authority, Security Deposit recovered from the running bills of a
Contractor can be returned to him, if he so desires, in lieu of Term
Deposit Receipt/irrevocable Bank Guarantee for equivalent amount
from Scheduled Bank, to be submitted by him.
 Forms in which security deposit is
acceptable
• deposit of cash
• Government securities including State Loan Bonds at 5 per cent below the
market value;
• deposit receipts, pay orders, demand drafts and guarantee bonds
• guarantee bonds executed or deposits receipts tendered by all scheduled
banks;
• deposit in the Post Office Saving Bank
• deposit in the National Savings Certificates
• twelve years National Defence Certificates
• ten years Defence Deposits
• National Defence Bonds
• Unit Trust Certificates at 5 per cent below market value or at the face
value whichever is less. (c. f. para 1801 A)
 Refund of Security Deposit
Security Deposit shall be returned to the
Contractor along with or after, the following:
• Final Payment of the Contract
• Execution of Final Supplementary Agreement
or Certification by Engineer that Railway has
No Claim on Contractor
• Maintenance Certificate issued, on expiry of
the maintenance period as per clause 50.(1),
in case applicable.
 Forfeiture of Security Deposit
• Whenever the contract is rescinded as a whole under
clause 62 (1) of GCC, the Security Deposit already with
railways under the contract shall be forfeited. However,
in case the contract is rescinded in part or parts under
clause 62 (1) of GCC, the Security Deposit shall not be
forfeited.
• No interest shall be payable upon the Earnest Money
and Security Deposit or amounts payable to the
Contractor under the Contract, but Government
Securities deposited in terms of Sub-Clause 16.(4)(b) of
this clause will be payable with interest accrued
thereon
 Custody of Security Deposits
• The rules regarding custody of security deposits are
contained in chapter XVIII of the Indian Railway Code for
the Accounts Department (Part I). In the case of guarantee
bonds, the Accounts Officer is responsible for safe custody
as well as for giving timely intimation (say three months in
advance) to the executive officer of the date of expiry of
the guarantee bond. The executive officer shall take action
to extend from time to time the validity of the guarantee
bond for such periods as may be necessary in relevance to
the completion of the work or in subsequent period of
maintenance that may have been provided for in a
particular contract. It will be the responsibility of the
Accounts Officer to encash the guarantee bond before its
expiry in case it is in necessary to take such step.
 Performance Guarantee
The successful bidder shall have to submit a Performance Guarantee (PG)
within 21 (Twenty one) days from the date of issue of Letter of Acceptance
(LOA). Extension of time for submission of PG beyond 21 (Twenty one) days
and upto 60 days from the date of issue of LOA may be given by the Authority
who is competent to sign the contract agreement. However, a penal interest
of 12% per annum shall be charged for the delay beyond 21(Twenty one)
days, i.e. from 22nd day after the date of issue of LOA. Further, if the 60th day
happens to be a declared holiday in the concerned office of the Railway,
submission of PG can be accepted on the next working day. If the Contractor
fails to submit the requisite PG even after 60 days from the date of issue of
LOA, the contract is liable to be terminated. In case contract is terminated
railway shall be entitled to forfeit Earnest Money Deposit and other dues
payable against that contract. In case a tenderer has not submitted Earnest
Money Deposit on the strength of their registration as a Startup recognized by
Department of Industrial Policy and Promotion (DIPP) under Ministry of
Commerce and Industry, DIPP shall be informed to this effect. The failed
Contractor shall be debarred from participating in re-tender for that work.
• Performance Guarantee (PG) would be in any of the
following forms, amounting to 5% of the contract value: A
deposit of Cash, Irrevocable Bank Guarantee, Government
Securities including State Loan Bonds at 5% below the
market value, Deposit Receipts, Pay Orders, Demand Drafts
and Guarantee Bonds. These forms of Performance
Guarantee could be either of the State Bank of India or of
any of the Nationalized Banks, Guarantee Bonds executed
or Deposits Receipts tendered by all Scheduled Banks,
Deposit in the Post Office Saving Bank, Deposit in the
National Savings Certificates, Twelve years National
Defence Certificates, Ten years Defence Deposits, National
Defence Bonds , Unit Trust Certificates at 5% below market
value or at the face value whichever is less, FDR in favour of
FA&CAO (free from any encumbrance)
 Agreement
• Agreement is a document mutually agreeable
to the concerned parties
• It is the basis on which contract between the
parties works.
• Signed by competent authority of the
concerned parties
• Signature of authorized representative of
contractor must be witnessed by at least two
witnesses
• Name of work, description of work, place of
work, terms & conditions of contract,
specifications, drawings, rate schedule, items
and quantity of work, payment clause, mode
of payment, periodicity of payment, validity of
contract period, variation clause etc.
 Principles to be observed in framing
contract agreements
The terms of contract must be precise and definite,
and there should be no room for ambiguity or
misconstruction and matters to be agreed upon
should include, in detail, the following :-
• What the contractor is to do; when, where and to
whose satisfaction it is to be done;
• What the railway administration is to do; and on
what terms;
• What payment is to be made; what it is to cover,
to whom it is to be made, and the method and
basis of making it;
• Responsibility of the contractor in respect of adequate
supervision, care of Government property, and the
protection of outside interest and those of the staff
and workmen;
• Terms on which variations and modifications, if any, are
to be permitted; and authority competent to order and
assess them, and the occasion and basis of such
assessment;
• Measures to be adopted in the event of a breach, of
the contract by either party thereto; and the correct
method of and the grounds for determination thereof;
• Method of settling disputes.
• As far as possible, legal and financial advice should be
taken in the drafting of contracts before they are finally
entered into.
• Standard forms of contract should be adopted wherever
possible, the terms to be subject to adequate prior scrutiny.
• The terms of contract once entered into should not be
materially varied except in consultation with the competent
legal and financial authority.
• No contract involving an uncertain or indefinite liability or
any condition of an unusual character should be entered
into without the previous consent of the competent legal
and financial authority.
• Provision must be made in contracts for safeguarding
Government properties entrusted to a contractor.
• In entering into long term agreements or contracts,
consideration should be given to the desirability of
providing for the railway administration unconditional
power to cancel the agreement at any time after the
expiry of six months notice to that effect.
• The power to retain and "set off" all claims whether
arising out of the particular contract or out of any
other transaction or claim whatever against the
contractor should be secured for the railway
administration. (c.f. para 626 F and 402 S).
 Monitoring of contract
• Executive is responsible for monitoring
• Must carry out inspections frequently and issue
guidelines for inspections by subordinates
• Test check protocols and scheduled inspections
• Inspection register at site
• Follow up of inspection reports
• Field book (Supervisor’s handbook)
 Progress report
• In order to keep the head of the engineering
department informed of the state of progress of
works in each division, a progress report of all
works in progress during the month in a division
should be submitted by the beginning of the
succeeding month to the Chief Engineer. The
format in which such progress report should be
submitted shall be decided by the Chief Engineer.
For the purpose of this rule a work should be
considered to be in progress from the date on
which the detailed estimate therefor is
sanctioned to the date on which it is completed
 Measurement
• To be recorded in Measurement Book (M.B) as per Form E. 1313 of
Engg. Code
• The measurement books should be considered as very important
record
• All the books belonging to a division should be numbered serially
and a register of them (Form E. 1314 given below) should be
maintained in the divisional office showing (1) the serial number of
each book, (2) the name and designation of the person to whom
issued, (3) the date of issue and (4) the date of its return, so that its
eventual return to the divisional office may be watched. A similar
register (Form E. 1314) should also be maintained in the sub-
divisional office. Books no longer in use should be withdrawn
promptly even though not completely written up. The eventual
return of all measurement books should be insisted on. They should
be carefully preserved for ten years.
• All measurement except as specified in paras
1317 and 1318 should be neatly taken down
on the measurement book issued for the
purpose and nowhere else. For large works a
separate measurement book may be set
apart, or if found convenient two or more
books may be set apart for different classes of
works.
Each set of measurements should commence with entries
stating :-
Full name of work as given in the estimate;
Situation of work;
Name of contractor;
Number and date of agreement entered into with contractor
or of work order issued in his favour;
Dates of commencement and completion of work; and
Date of measurement;
and should end with the dated initials of the person making
the measurements. A suitable abstract should then be
prepared which should collect, in the case of measurements
for work done, the total quantities of each distinct item of
work relating to each sub-head of estimate.
• As all payments for work or supplies are based on the
quantities recorded in the measurement books, it is
incumbent on the person taking the measurements to
record the quantities clearly and accurately. If the
measurements are taken in connection with a running
contract account on which work has been previously
measured, the reference to the last set of measurement
should be recorded, and if the entire job or contract has
been completed, the fact should be recorded prominently
and initialed by person taking the measurements. If the
measurements taken are the first set of measurements on a
running account, of the first and final measurements, this
fact should be suitably noted against the entries in the
measurement book
 Instructions for the Maintenance of
Measurement Books
• The pages of the book should be machine-numbered
and no page should on any account be torn out, nor
should any entry be erased or defaced so as to be
illegible. If mistake be made, it should be corrected by
crossing out the incorrect words or figures, and
rewriting the correct words or figures, and the
correction thus made should be initialed. The entries
must be made directly in the measurement books at
the site of work. The copying of entries from another
rough note book or similar record is strictly forbidden.
A reliable record is the object to be aimed at, as it may
have to be produced as evidence in a Court of Law.
• The entries in the measurement book should, if possible be made in
ink, but when this is not possible, the entries should be recorded
with indelible or special copying pencil so as to render it difficult to
tamper with or to make unauthorized additions to or alterations in
entries once made, the pencil entries should not be inked over, but
left untouched. The entries in the "contents or area" column
should, however, be invariably made in ink.
• Entries should be recorded continuously in the measurement book.
No blank pages should be left nor should any page be torn out, the
cancellation being attested. When any measurements are
cancelled, the cancellation should be supported by the dated initials
of the officer ordering the cancellation, or by a reference to his
orders initialed by the officer who made the measurement. In
either case, the reason for cancellation should be record
• Each measurement book should be provided with an index which
should be kept up to date.
• From the measurement book, all quantities should be
clearly traceable into the documents on which
payment are made, and a reference to the voucher in
which the quantities are entered for payment, as well
as the date of entry, should be given by an
endorsement upon the original entries in the
measurement book, No contract certificate or bill
should be signed without thus crossing off the
connected entry in the measurement book, and the
document on which payment is made should invariably
bear a reference to the number and page of the book
in which the detailed measurement are recorded.
 Recording of Measurements
• Inspectors of Works and Permanent Way Inspectors in Gr. II (Rs. 1600-
2660) and Gr. I (Rs. 2000-3200) can record all measurement including
ballast measurements subject to the test checks given below, but cannot
record earth work sectional measurements unless they are specifically
nominated by the Assistant Engineer on considerations of competency
and reliability. A 10% check by the Assistant Engineer is necessary for
works costing upto Rs. 25,000/-, if the value of the work exceeds the
estimated cost by more than 10% and for works costing above Rs. 25,000/-
a 20% check by Assistant Engineer is necessary. In the case of ballast and
pitching stones measurements a 100% check on quality and the quantity
by the Assistant Engineer is necessary. The Check of the Assistant Engineer
in respect of earth work sectional measurements may be done at his
discretion. Those Inspectors in Gr. I (Rs. 2000-3200) may finalize
measurement for work upto Rs. 10,000/- even when the total value of the
works exceeds the estimated value by more than 10%.
• Inspector of Works and Permanent Way Inspectors in
Grade III (Rs. 1400-2300) when they hold independent
charge, can record measurement for works costing
upto Rs. 25,000/- each, subject to a test check of 20%
by the Assistant Engineer.
• Sub-Overseers, Mistries having a diploma in
Engineering and having more than three years of
service and those not having a diploma in Engineering
but having six years experience to be nominated by
name by the Divisional Engineer can record
measurements of works upto Rs. 10,000/-, subject to a
test check of 20% by the Inspector of Works
• Shop Supdt./ Chief Traction Foreman, in grade Rs.
2375-3500; Sr. Elec. Foreman/ Elec. Foreman/
Traction Foreman in Grade Rs. 2000-3200/- can
record all measurements. A 10% check by the
Asstt. Elec. Engineer/Divisional/district Elec. Engg.
is necessary for the work costing upto Rs.
25,000/- each if the value of the work exceeds
the estimated cost by more than 10% and for
works costing above Rs. 25,000/- and 20% check
by Asstt. Elec. engineer/Divisional/District Elec.
engineer is necessary.
• Asstt. Elec.Foreman/Asstt. Traction
Foreman/Sr. Elec.chargeman in grade Rs.1600-
2660/- can also record the measurements
subject to 10% test check on the works costing
upto Rs. 25,000/- and 20% check on the works
costing more than 25,000/- by Asstt. Elec.
Engg./ Divisional/District Elec. Engineer
• Elec. Chargemen/Asstt. Elec. Foreman in Gr. Rs. 1400-
2300 when they hold independent charge can record
measurements for works costing upto Rs. 25,000/-
each subject to a test check by 20% by the Asstt. Elec.
Engg./Divisional/District Elec. engineer.
• Elec. Chargemen having a diploma in Elec. Engg. and
having more than three years of service and those not
having a diploma in Elec. Engg. but having six years
experience nominated by name by the
Divisional/District Elec. Engineer can record
measurements of works upto Rs. 10,000/- subject to a
test check of 20% by the Asstt. Elec. Engineer/District
Elec. Engineer.
 Passing of bills
• There should be no delays in making measurements or
in preparing bills after the measurements have been
taken
• Rates higher than those provided in the agreement or
work order are not allowed without the specific
sanction of the competent authority
• Running account and final bills are checked with the
postings in the contractor's ledger, form E. 1483
• Recoveries should be correctly made according to rules
on account of materials issued against items of works
for which labour and material rates are paid
• For items for which labour, rates only are paid
the quantities of materials issued and charged
finally to works are not excessive ( the cost of
materials wasted in defective works
subsequently rectified should be recovered)
• Quantities executed are according to the
sanctioned plans and estimates
• Methods of measurement should be correct
 Preparation of Contractors Bills
• -No fees should be charged either for forms of bills supplied
or for clerical assistance rendered in the preparation of
bills. A contractor requiring a copy of his contract certificate
or an extract from his account in the contractor's ledger
(see paragraph 1483) should be furnished with the same at
a charge of Rs. 10/- which should be credited to
Government as a miscellaneous receipt under the head
"Receipts on Capital Account-Miscellaneous Receipts". In
the case of works charged to ordinary Revenue such
receipts may be booked to Z-650.
• No request from the contractor for supply of a copy of
contract certificate or an extract from his account in the
ledger beyond a period of six years from the date of closing
of contract should be entertained
• In all contractors' work and store bills the units
calculation and rates should be entered in words as
well as figures. Whenever fraction of rupee occur in
the totals of contractors' bills fractions less than half
may be disregarded and half a rupee and over may be
taken as rupee, before forwarding a contractor's bill to
the Accounts Officer for payment the Executive
Engineer should satisfy himself as to the correctness of
the quantities billed, for the rates and all recoveries.
• Engineers submitting bill for payment should satisfy
themselves that the same are correct and complete in
every particular and that sufficient authority exists for
their payment
• All bills be signed by the officer responsible for the outlay in
token of his acceptance of the claims, any alterations or
corrections therein being duly initialed. In the case of
contractors' bill the signature of the contractor are also
required in token of their acceptance of the correctness of
the bill submitted
• A programme should be drawn up by the Accounts Office
fixing the dates for the submission to it for check and
payment of pay and allowance bill, muster sheets or labour
pay sheets and other claims of a recurring nature. In the
submission of bills executive officers should, except in
emergent cases, adhere strictly to the dates laid down in
the programme in order to ensure punctual paymen
• Bill should be dated and correctly allocated to the heads of
accounts classification and sub- heads of works concerned.
In the case of bills chargeable to works, for which estimates
are sanctioned (see paragraph 701) the allocation should
be given in full detail as on the sanction estimates. This rule
applies to all vouchers, whether cash or adjustment and
whether of open lines or of lines under construction.
• In the case of bill pertaining to Revenue working expenses,
the month to which the bill is debitable should be noted, as
owing to the use of the head "Demands Payable" it is, as a
general rule practicable to adjust the liability against the
final head of account in the accounts of that month, even if
the payment may be made in the following month
 Excess over Estimates
The sanction to an estimate constitutes authority for
spending a specific amount on a particular work.
Executive officers should not, therefore, incur
expenditure or liability on a work in excess of the
sanctioned estimate without the prior sanction of the
competent authority. If in the course of execution of a
work it becomes apparent that there is likely to be an
excess over the sanctioned estimate of the work as a
whole, Executive Engineers should take steps :--
• to restrict further expenditure on the work to the
utmost extent possible until sanction to the excess is
obtained; and
• to prepare a revised estimate and submit it to the authority
competent to sanction it. In case of estimates sanction to which is
within the competence of the local authorities, it will rest with the
sanctioning authority to decide in what detail the revised estimate
should be prepared. In case, where there has been no great
modification in the scope of the original estimate, an abstract
dealing only with the items of work which have been materially
affected with explanations therefor and bring out any changes in
the allocation should suffice in lieu of the full detailed revised
estimate. In cases, which require to be submitted to the Railway
Board, where the excess is not due to any material modification in
the sanctioned work, brief abstract estimate should be prepared
showing the heads materially affected, the total increase under
each head and the principal directions in which the cost has been
exceeded owing to rise in prices or other causes
• Expenditure in excess of a sanctioned estimate should not ordinarily be left over
regularization by post-facto sanctions. The orders of the competent authority
should be obtained on the probable excess at the earliest possible stage before the
additional expenditure is incurred. In most cases, where the excesses are due to an
increase in prices over those entered in the original estimates, these probable
excesses are at once discovered when tenders are received for the work; and in
such cases, a revised abstract estimate should immediately be sent to sanctioning
authority in order that authority may determine whether it is advisable to proceed
with the work in view of the additional expenditure involved. In all other cases, the
application must be made as soon as the probability of any excess is foreseen.
• In cases, however, where the work is in an advanced stage and is likely to be
completed before a revised estimate can be got out, the excess may, with the prior
approval of the competent authority, be dealt with in the completion report of the
work. The fact that a competent authority has permitted the regularization of
excess over an estimate through the completion report should invariably be
intimated to the Accounts Officer
Notwithstanding the fact that the expenditure on a work has exceeded
or is likely to exceed the sanctioned estimate therefor, the following
payments may not be withheld :-
• Payments required to liquidate liabilities which have already been
incurred at the date of reporting the excess (whether actual or
anticipated) to the competent authority for sanction
• Payments in respect of salaries, muster sheets, labour pay sheets or
other pressing claims provided that a definite statement in writing
is made by the General Manager, Chief Engineer, or Divisional
Superintendent, as the case may be to the effect that sanction of
the competent authority to excess has been applied for or will be
applied for at the earliest possibility
Note: excess over estimates should be determined with reference to
the aggregate provision (excluding credits for released material) for the
work or scheme as a whole and not with reference to the separate
sub-estimates for sub-works constituting the works or scheme
 Revised Estimate
• As soon as it becomes apparent that the expenditure on a work or
Project is likely to exceed the amount provided thereof in the
detailed estimate or construction estimate a revised estimate
should (subject to provision of paragraph 1136) be prepared and
submitted for the sanction of the competent authority. It should,
unless otherwise ordered by the sanctioning authority, be prepared
in the same form and the same degree of detail as the original
estimate, and should be accompanied by a comparative statement
showing the excess or saving under each sub-head of account
against the latest sanction. In cases where a supplementary
estimate or a previous revised estimate has been sanctioned by the
Railway Board, it should be made clear how the original sanction
has been modified by such further sanctions.
 Extension of completion period
The extension of completion periods may be sanctioned
at the discretion of the authority which signed the
original contract provided :
• that the rate in contract was not accepted against
other lower tenders in consideration of the date of
completion
• that he is satisfied that the delay will not cause loss or
damage
• that in case it does not satisfy any or both of the above
conditions such sanction shall be given only in
consultation with his Financial Adviser after taking legal
advice, if necessary
 Variation in quantity of work during
the execution of work
If during the execution of a work the initial quantities of work are expected to vary substantially a check
should be made immediately by comparing the value of the revised work as per the rates quoted by the
original tenderers to determine whether the decision to award the contract to a particular tenderer is
vitiated by the variation in quantities. A variation between 15 to 25% depending on the nature of the
particular category of work to be done would not be considered as unreasonable. If such a variation of
the award of the contract as between tenderers is noticed, the railway administration should
immediately examine whether it is practicable to bring in a new agency to carry out the extra quantity
of work keeping in view the progress of the work on the original contract and the nature and lay-out of
the work. If such a course is not practicable, the reasons for the same may be recorded and approved by
the competent authority and negotiation should be carried out with the existing contractor for arriving
at a reasonable rate for the additional quantities of work. If, however, it is found that there will be no
serious practical difficulty in meeting the additional quantity of work done by another agency, one of
the following two alternatives, as found feasible may be adopted

inviting fresh tenders for the extra quantity