GENERAL PRINCIPLES - Shivaji University

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5.40 Normally, the lowest tender shall be accepted after ascertaining the capacity of
the contractor. In cases where it is decided to accept a tender other than the
lowest or by negotiation, the matter shall be submitted for perusal, to the Building
Committee with reasons.
5.41 The amount of earnest money to be deposited with the tender is fixed at one
percent of the estimated cost of the work. The amount shall be sufficiently large
to be a security against loss in case of the contractor failing to furnish the required
security or to enter into agreement within the appointed time, after acceptance of
the tender, as the case may be.
5.42 The demand drafts for earnest money received with the tenders shall be refunded
to the party whose tender is not accepted. If the tender is accepted, the earnest
money of accepted tenderer shall be taken to form part of the initial security
deposit and transferred to the deposit register.
5.43 For every work given out on contract, an agreement on a stamped paper shall be
executed. As soon as an agreement is entered into with the contractor, it shall be
entered in a register and given a number and date or year. Payments made to the
contractors from time to time shall be noted in a Register of Works.
5.44 Security shall in all cases be taken for the due fulfilment of a contract as 5 percent
of tendered cost. This security may be :-
(a)
A deposit or cash or the amount or earnest money accompanying the tender,
(b) A deduction of percentage fixed from the payments made on account of work
done.
(c) Government Securities.
5.45 Security deposit may be refunded after a period of six months after the completion
of the work,
5.46 Time for commencement and completion of the work shall be mentioned in the
agreement and power shall be reserved therein for cancellation of the contract
and for getting the work done by any other agency at the cost of the Contractor
in case of failure on his part to commence the work in time or to keep it in
progress with due diligence. Provision shall also be made in the agreement for
imposing penalty for breach of any conditions of the agreement.
(i) Work shall be executed strictly in accordance with specifications given in the
approved estimates. The terms of every agreement shall be strictly enforced
and nothing shall be allowed to be done that would tend to nullify or vitiate
any agreement.
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