time limit for enforcing risk and cost tender

Shared Documents Joined: May 02, 2005 No. of Replies: 1236

1. what is the time limit for calling risk and cost tender?
2. how many times a risk and cost tender can be invited?
3. if no response is received even after 5-6 invitations, is it possible to close the contract( with forfeiture of s.d.+ L.D. charges) and invite fresh tender?

Shared Documents Joined: No. of Replies: 323

Unfortunately, we have not been able to use the risk and cost tender clause in GCC by the railways in an effective manner. That is why these provisions have been dropped now as per the latest instructions issued by the board.
Therefore ,answers to your querries are not available anywhere in the form of rules/guidelines. It is best left to the executive to keep on trying its best untill it succeeds (most likely it fails) because there is no time limit specified and no body is really keeping a track .

Shared Documents Joined: No. of Replies: 168

We have similar problemin SCR. The matter was reffered to LAW section as no response was received even after three times tender calling. The Law section replied that the R&C to be finalized within 180 days (reasonable time limit) from the date of termination, otherwise the R&C will not withstand in the court of law. However the SD can be forfeited. This was opined on the basis of some court observation. You can follow the same and process for closure of the work and call for fresh tender.

Shared Documents Joined: May 02, 2005 No. of Replies: 1236

The legal openion obtained in a case by one division/zonal Railway cannot be applied on another case of another division/zonal Railway. The legal openion taken is only for the interpredation of the Law which can be interpredated differently by different persons. Even the verdict of the courts are different in similar cases as it depends on how the case it is presented and fought besides the circumstances of the case as well.

On what provision in the law, the period of 180 days is fixed needs to be eloborated (if at all there is any such law of limitation) and accordingly a circular needs to be issued from the Railway Board and included in the contract conditions as well.

The period of 180 days (say 6 months) for finalisation of risk & cost tender is too less. Invitation and finalisation of tenders takes upto 4 months (1 month notice for opening and three months validity of offer) and if the tender is reinvited even once, it will require 8 months.

Can somebody eloborate on the legal provisions for the time limit for invitation and finalisation of risk & cost tender. For recovery of the risk amount, the time bar as per law of limitation is 30 years which can be seen in the following circular of the Railway Board.

http://www.irastimes.org/SRly_Compendium/weblink/06.08.88-NON%20RECOVERY%20OF%20RISK%20COST%20FROM%20A%20CONTRACTOR%20NOT%20BARRED%20BY%20LIMITATION.htm

Shared Documents Joined: May 02, 2005 No. of Replies: 1236

It can be seen from the following link that the limitation of 6 months is as per terms of clause 0702 of IRS conditions of contract for placement of risk purchase (ie for stores contract) and as stated therein it can be enhanced to 9 months for the materials that are not easily available in the market.

http://www.irastimes.org/SRly_Compendium/weblink/18.11.76-ANNEXURE%2099.htm

If we have such a time limit in our conditions of contract, then it can be made applicable. However such conditions have not been laid down by the Board for any works contracts.

Shared Documents Joined: Nov 08, 2006 No. of Replies: 68

When no time limit is prescribed in the agreed term & conditions (GCC, Special condition of contract etc.) between the two parties (Railways & Contractor) then the limitations given in "Limitation Act" will apply. This act gives specific time limits and general time limits also (not covered by any specific limitation).

Shared Documents Joined: Nov 08, 2006 No. of Replies: 68

Continuing with the earlier posting, the provisions of "The Limitation Act 1963" relevant to subject under consideration are reproduced below.

The Schedule about "Periods of Limitation" is given on page 14 of the Act and Part-II of this Schedule deals with "Suits relating to Contracts". Item no. 55 of this Schedule states as following :

"Description of suite" : For Compensation for the breach of any contract, express or implied not herein specially provided for.
"Period of Limitation" : Three Years
"Time from which period begins to run" : When the contract is broken or (where there are successive breaches) when the breach in respect of which the suit is instituted occurs or (where the breach is continuing) when it ceases".

Shared Documents Joined: May 02, 2005 No. of Replies: 1236

Thank you sir for the response.