CONTRACT MANAGEMENT MANUAL

1 Page 1 CMMitemrate_ver270206 CCOONNTTRRAACCTT MMAANNAAGGEEMMEENNTT MMAANNUUAALL COAL INDIA LIMITED 10, NETAJI SUBHAS ROAD, KOLKATA -700 001 Updated upto 27-02-2006 February 2006 Page 2 CMMitemrate_ver270206 CONTRACT MANAGEMENT MANUAL chapter CONTENTS 1 2 3 4 5 ITEM RATE CONTRACT TURN KEY CONTRACT TRANSPORTATION POST AWARD MANAGEMENT REGISTRATION OF CONTRACTTORS Page 3 CMMitemrate_ver270206 LIST OF ABBREVIATIONS USED IN THE MANUAL BCCL Bharat Coking Coal Limited CCL Central Coalfields Limited CMPDIL Central Mine Planning and Design Institute Limited CHP Coal Handling Plant CIL

2 Coal India Limited CMD Chairman cum Managing Director CMF CONTRACT MANAGEMENT Forms CMS CONTRACT MANAGEMENT Service CTD Concerned Technical Department DGTD Director General of Technical Department EM Earnest Money E & M Electrical and Mechanical GM General Manager IBRD International Bank of Reconstruction and Development IDA Internal Development Association LOI Letter of Intent MNW Master Network NIT Notice Inviting Tender PGM Project General Manager PMS Project MANAGEMENT Service PRO Public Relations Officer SD Security Deposit TC Tender Committee

3 TPT Transportation Page 4 CMMitemrate_ver270206 chapter - 1 ITEM RATE CONTRACTS Updated upto 27-02-2006 Page 5 CMMitemrate_ver270206 chapter - 1 Item Rate Contracts SECTIONS - CONTRACT Identification - Preparation and Compilation of Tender Documents - Sale of Tender Documents - Tender Opening, Evaluation and Award - Earnest Money - Issue of Letter of Intent and Signing of Agreement Annexures CMF to CMF Page 1 CMMitemrate_ver270206 chapter - 1 ITEM RATE CONTRACTS CONTENTS SECTION DESCRIPTION PAGE NO.

4 CONTRACT Identification 1 - 2 Preparation and compilations of Tender Documents 3 8 Sale of Tender Documents 9 10 Tender Opening, Evaluation and Award 11 19 Earnest Money 20 Issue of Letter of Acceptance and Signing of Agreement 21 24 FORM No DESCRIPTION PAGE NO. CONTRACT Identification Packages 25 CONTRACT Pre-Award Schedule 26 27 Tender Notice 28 29 Instruction to Bidders 30 40 Forms of Bid and Qualification Information 41 46 Conditions of CONTRACT 47 70 Guidelines for Publication of Tender Notice in Newspapers 71 Schedule of Price of Tender Documents 72 Part II, Price Bid 73 Tender Evaluation (Part I) 74 75 Tender Evaluation (Part II) 76 77 Tender Register 78 Tender Sale Register 79 Earnest Money Register 80 Register for Contracts 81 Letter of Acceptance 82 Agreement Form 83 84 Tender Opening Register 85 Checklist for Award of CONTRACT 86 Checklist for Award of CONTRACT 87 Page 1 CMMitemrate_ver270206 CIL CONTRACT MANAGEMENT MANAUAL chapter ITEM RATE CONTRACTS chapter 1 SECTION CONTRACT IDENTIFICATION SECTION 01 Responsible Action Timing PMS CTD CMS/CTD PMS/CTD CMS/CTD CMS /CTD Competent Authority 1.

5 (a) (b) 2. (a) (b) (c) (d) 3. 4. 5. 6. Prepare CONTRACT Identification Package: details of work to be given out on CONTRACT items rate basis for a project as per Project Sanction. The estimated value of contracts for such work/ groups of work which will be given out as single CONTRACT , should not be less than lakhs. [ Particulars vide annexure CMF ] details of work to be given out on CONTRACT items rate basis in an Area as per Works Estimate Sanction. The estimated value of CONTRACT of such work/groups of work which will be given out as single contracts should not be less than lakhs. [ Particulars vide annexure CMF ] Record: Date of preparation of particulars as above.

6 Name of concerned Project/Area Nature of work civil, electrical, etc. and description of work Name of Section/Official to deal with the CONTRACT Examine the CONTRACT Identification Package (refer CMF ) for contracts identified in Step 2 and finalise in association with PMS at subsidiary head quarters. Prepare proposal as per finalised CONTRACT identification package for obtaining approval of the competent authority for tendering of the proposed job . Send proposal/ CONTRACT Identification Package to competent authority for approval of competent authority for tendering of the items of work in the CONTRACT Package. Approve proposal/ CONTRACT Identification Package for Tendering and send back to CMS/CTD.

7 As and when As and when On date of receipt 2 days 2 days Same day Within 3 days Page 2 CMMitemrate_ver270206 CIL CONTRACT MANAGEMENT MANAUAL chapter ITEM RATE CONTRACTS chapter 1 SECTION CONTRACT IDENTIFICATION SECTION 01 Responsible Action Timing CMS/CTD 7. 8. (a) (b) (c) (d) Award CONTRACT number to contracts approved for Tendering CMS/Civil/Project /Area /Year/Serial No. Send CONTRACT Identification Package with list of approved items of work to be given on CONTRACT with CONTRACT numbers to: PGMs/GMs(Area) Corporate Finance Heads of concerned Technical Departments at corporate head quarters PMS at corporate head quarter Same day as receipt of approved package 2 days REGISTERS, DOCUMENTS AND ABSTRACTS Sl.

8 No. FORM TITLE Form No. 1. CONTRACT Identification package Page 3 CMMitemrate_ver270206 CIL CONTRACT MANAGEMENT MANUAL chapter : ITEM RATE CONTRACTS chapter : 1 SECTION : Preparation and Compilation of Tender Documents SECTION 02 Responsible Action Timing CMS/CTD 1. 2. 3. 4. (a) (b) (c) 5. (a) (b) (c) (d) Prepare Pre-Award CONTRACT Schedule (refer ) for each CONTRACT in CONTRACT Identification Package. Finalise Pre-Award CONTRACT Schedule in association with PMS and send for approval of competent authority. NOTE: Competent authority for the purpose should be the concerned Director for estimated value of work, the award of which requires Director's approval, and CMD for others without any limit as regards value.

9 Receive approved Pre-Award CONTRACT Schedule from the competent authority. Send Pre-Award CONTRACT Schedule to: PGM/GM(Area) Corporate Finance Heads of concerned Technical Departments at subsidiary head quarters Action to be initiated for preparation of the following within specified dates as per Pre-Award CONTRACT Schedule : Detailed design and drawings Detailed specifications Detailed cost estimates The cost engineering department or the consultant or the organisation/ deptt. entrusted with the task of preparing cost estimates will prepare them based on accepted scientific principles and they will do a meticulous, detailed exercise, if required on first principle basis, to arrive at a reasonable estimates.

10 The estimates will not be based solely on previously awarded contracts, though they would certainly be one of the factors for arriving at fairly accurate estimates. It will be the responsibility of the cost As and when 1 day Within 2 days Same day Same day Page 4 CMMitemrate_ver270206 CIL CONTRACT MANAGEMENT MANUAL chapter : ITEM RATE CONTRACTS chapter : 1 SECTION : Preparation and Compilation of Tender Documents SECTION 02 Responsible Action Timing CMS/CTD 6 (a) (b) (c) 7. 8. (a) (b) (c) (d) (e) (f) engineering department or the consultant or the organisation/ department entrusted with this task to explain the basis of their estimates, if the bids are received at abnormally higher or lower prices.