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TMI Blog2013 (2) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... where the respondent authorities are whimsically and in a pick and choose manner violating their own policy and then justifying the same on the basis of economic interest. 3. The petitioners are registered civil contractors with the respondent Corporation and are stated to have executed several works. The dispute in the present case pertains to an NIT dated 15.11.2012 floated by the respondent for various works on 23.11.2012; the financial bids for which were opened on 29.11.2012. The petitioners were declared as the lowest tenderers with respect to 16 works while for the remaining 10 works three other construction companies were found to be the lowest. However, the petitioners claimed to have received an information dated 21.11.2012 that the tenders were sought to be cancelled on account of the fact that some of the parties had not enclosed their draft with the tender. However, when the communication was received all that was stated was that the tenders were being cancelled due to administrative reasons. 4. It is say of the petitioner that there was an oblique motive to all this as some of the favoured contractors have not qualified and the objective of the cancellation of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in principles have to be set out to deal with the rival contentions of the parties. These pertain to the methodology to be adopted for scrutinizing the tenders. Such a task becomes necessary as it has not been disputed that the bids of the petitioner were below the estimated value of tenders while simultaneously the defence set up was that the rates were on the higher side on the basis of tenders in adjacent areas. It is also not in dispute that no negotiation was carried on with the petitioner as L-1. 8. The common case of the parties is that there is an estimated amount calculated for the tender which is prepared on the basis of applicable Delhi Schedule of Rates (DSR) with enhancement in the form of cost index and contingencies etc. A circular has been issued by the respondent corporation dated 02.01.2013 which shows that there are DSR 2007, DSR 2012 and plinth area rates of 2007 and escalation has to be accordingly adopted of 70% qua the 2007 rates and 14% qua the 2012 rates for the year 2013. The second concept is of the tender amount which are the rates prevalent for different items without adding these escalations. We may add here that we are concerned with percentage rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been defined and it is appropriate to quote the same: 20.4.3 Reasonability and Competitiveness of rates The tender accepting authority shall satisfy himself about the reasonability of rates before acceptance of the tenders. Reasonability of rates shall primarily be assessed on the basis of justified rates. The mode of preparation of justified rates is detailed in the following para 20.4.3.1 Permissible variations over the justified rates are given in para 20.4.3.2. Where justification of rates is not required to be prepared, the tender accepting authority while deciding the tenders, may refer to the rates of tenders of similar nature of works called within a period of last three months. Similar works shall mean works similar in future, quantum, specifications and location, which is very close. 20.4.3.1 Justification of tenders Justification statement shall be prepared for checking the reasonability of rates. There is no need for preparing justification in case the lowest tender is less than the estimated cost put to tender+10%. For acceptance of tender, however, the remaining provisions of this Manual shall apply. 20.4.3.2 Acceptance of tenders at justified rates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... economic indices of the raw material/labour, other input costs and intrinsic value etc., before award of the contract. 18. In our view this reliance is misplaced for the reason that the aforesaid discusses cases where purchases are made in an ad-hoc and arbitrary manner and not where the purchases are governed by the methodology set out in the CPWD Manual itself which is a complete methodology and it is the own case of the respondent that they have to strictly adhere to the same. Thus reasonableness of prices are taken care of in terms of the formula set out therein. 19. The other aspect urged by the learned counsel for the respondent arises from the format issued by the Finance Department of the respondent where the concerned department has to certify that the rates of the proposal concerned are not higher than of similar works undertaken in Zone/Division in recent past for similar nature of work and that it is the best offer received in recent past for similar nature of works. Firstly, this is really an internal check mechanism of the Finance Department. Secondly, it cannot be said that the mechanism to be adopted as mandated by the respondent based on the CPWD Manual i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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