Section 84 in Punjab Panchayat Samitis and Zila Parishads Finance, Budget and Accounts Rules, 2014
84. General rules and principles relating to contracts.
(1)The Panchayat Samiti or the Zila Parishad shall keep the following principles in view white entering into contracts or agreements affecting the fund:-(a)Every contract made by the Panchayat Samiti or the Zila Parishad for any sum or property of an amount of value exceeding rupees ten thousand shall be in writing and shall he signed on behalf of the Panchayat Samiti or the Zila Parishad by the Executive Officer or the Chief Executive Officer, as the case may be;Provided that the sanction to the incurring of expenditure involved has been accorded by the competent authority(b)Even in the cases, where a formal written contract is not made, no order for supplies should be placed without at least a written agreement as to the price and quality of supplies.(2)The terms of the contract must he precise and definite and must have the prior approval of the Panchayat Samiti or the Zila Parishad, as the case may be, and there must be no room for ambiguity or misconstruction therein.(3)As far as possible, the contract may not endure more than a period of three years, it should invariably include provision for unconditional power of revocation, or cancellation by the Panchayat Samiti or the Zila Parishad at any time on the expiry of six months notice to that effect.(4)Standard form of contract as are in use in the various Departments of the State Government for various purposes should be adopted wherever possible, and their terms should be subjected to adequate prior scrutiny.(5)The terms of contract, once entered into, should not be varied without the previous consent of the competent authority No payment to a contractor by way of compensation or otherwise outside the strict terms of contract or in excess of the contract rates may be authorised without the prior approval of the competent authority.(6)No Contract involving an uncertain or indefinite liability or any condition of an unusual character should be entered into.(7)Provision must be made in contracts for safeguarding the Panchayat Samiti or the Zila Parishad property entrusted to a contractor.(8)As far as possible expert legal and financial advice should be taken while drafting the deed and before it is finally entered into, especially when the amount of the contract exceeds rupees five lacs, so as to avoid any complication at a later stage.(9)(a)whenever practicable and advantageous, contract should be entered into only after lenders have been openly invited;(b)the Panchayat Samiti or the Zila Parishad, as the case may be, shall determine up to what limit, not exceeding rupees five lacs, tenders may be dispensed with, In such cases the purchase shall be made at the lowest market rates by inviting quotations or at rate contracts, which shall be kept on record for audit purposes;(c)when tenders are invited, they shall he tabulated and scrutinized by the Executive Officer or the Chief Executive Officer, as the case may be, and then placed before the Panchayat Samiti or the Zila Parishad with his recommendation for orders;(d)the lowest tender shall ordinarily be accepted. Where for valid reasons, it is not considered desirable to accept the lowest tender, the reasons therefor, shall be clearly recorded and made available for purposes of audit;Note. - Where the lowest tender is in respect of more than one article, the comparative prices tendered may be considered either individually for each article or conjointly for all the articles or for specified groups of articles;Provided that the intention of the Panchayat Samiti or the Zila Parishad to accept the lowest tender in any of these ways is made clear in the tender notice. If the tender is considered conjointly for all the articles in each group the cost of all the articles in each group, shall be worked out with reference to the rates given in each tender and the lowest tender shall be that according to which the total cost of the probable requirements of all the articles proposed to be taken together works out to be the lowest.(e)the Panchayat Samiti or the Zila Parishad reserve the right to accept the tender item wise group wise or as a whole, which fact shall be made clear in the tender notice and the tenderer shall be bound to supply the goods accordingly. In case he fails to supply the goods, the earnest money deposited by him shall be forfeited;(f)where the capacity to supply or the integrity' of a tenderer, not otherwise blacklisted, is not known or where they are doubtful, his tender need not necessarily be rejected but such additional security as the Panchayat Samiti or the Zila Parishad considers necessary shall, however, be taken from the tenderer;(g)where the lowest tender is rejected, the next higher tender shall he accepted subject to the approval of Panchayat Samiti or the Zila Parishad. as the case may be, through resolution. Adequate reasons shall also he recorded for rejecting that lowest tender;(h)in no case shall a tender be accepted at rates other than those specified in that tender;(i)there shall be no avoidable delay in the disposal of the tenders after they are opened;(j)tenders shall be invited by the Executive Officer or the Chief Executive Officer, as the case may be, in scaled covers in the most open and public manner possible, and invariably,(k)by a notice in the regional language of the State, pasted at the office of the Panchayat Samiti or the Zila Parishad, and at such other places as the Executive Officer or the Chief Executive Officer, may deem fit; and(2)by the advertisement in at least one English news paper and one regional language newspaper having wide circulation in the Punjab State, where the cost is expected to exceed rupees five lacs;.(3)every notice or advertisement published under sub-clauses (i) and (ii), shall state inter alia-(i)the conditions under which, the officer from whom, and the price, if any, for which a copy of the schedule or quantities of the various kinds of articles can be obtained.(ii)the precise form in which the tender shall be made, i.e., whether the prices for the various articles are to be quoted and whether the comparative value of the tender shall be examined with reference to each article mentioned in the Schedule of quantities or for all articles conjointly or for groups of such articles;(iii)the time and place for presenting the tenders allowing a period of at least ten days from the date of publication of the notice at the office of the Panchayat Samiti or the Zila Parishad, as the case may be, or in cases falling under sub-clause (2) of clause(j) appearance of the first advertisement in the newspaper;(iv)the time and place for opening the tenders;(v)the amount of earnest money in the shape of bank instrument or RTGS/ book transfer for the purpose of tender and the nature of the security which shall be required in case the tender is accepted;(vi)the authority competent to accept the tenders;(vii)that the authority competent to accept the tenders reserve the right to reject any or all of the tenders received without assigning any reason; and(viii)that a tenderer who has withdrawn his tender, without valid reasons (to be decided by the authority competent to accept the tenders), shall be liable to have his subsequent tenders summarily rejected.
