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Showing contexts for: turnover decrease in S.Manivel vs The Superintending Engineer on 13 July, 2018Matching Fragments
24. The prescription of the conditions of tender is only in the interest of the work to be carried out successfully and efficiently from those intending bidders who are technically competent to complete the work successfully and the respondent authorities are to ensure their professional competency in the execution of work and it is prerogative of the authorities inviting tender to prescribe the conditions so that quality of work is ensured from out of the successful bidders.
25. The learned Additional Advocate General urged this Court by stating that the annual turnover qualification has been fixed according to the emergent nature of work, which is to be completed within short period and also guidelines issued in the Minutes of the 402nd Board of Engineers Meeting dated 28.8.2000 in Para 3 of Public Works Department and the main Agenda Item No.6, on the criteria for pre-qualification of tenders for the State funded works costing more than Rs.1 crore for common adoption by all the wings of Public Works Department and the qualification for minimum quantities executed as a prime contractor in the preceding five years have been fixed according to the requirements on the type of items and their quantum to be executed as per technically sanctioned estimate for execution of these works and also according to the guidelines ibid issued in the Minutes of the 402nd Board of Engineers as also the possession of the items of construction equipment, tools and plants, vehicles etc., to execution of works are described according to the nature of work to be carried out as per technically sanctioned estimate as per the guidelines stated. The qualification of annual turnover is arrived in formula basis and it will be increased or decreased according to the period of completion. The qualification of quantities executed in the preceding five years have been fixed according to the nature of work to be executed in the site as per technically sanctioned and the requirement of construction equipment have been described according to the requirement of works to be executed. Pertaining to this work annual turnover of the applicant should not be less than Rs.1,729/- lakhs (Rupees One Thousand Seven Hundred and Twenty Nine lakhs only) including GST per year in any one of the preceding five years. The formula for fixing the annual turnover is as follows:-
Formula:
VPT x 12 x 1.5 times POC Where VPT = Value of work put to tender (i.e., Rs.288.15 lakhs POC = Period of completion (i.e.) 3 months 12 = Months of a year Annual turnover = 288.15x12x1.5 times = Rs.1728.90 (or) Rs.1729 lakhs or Rs.17.29 crore.
The calculation of annual turnover is increased when the period of completion is in shorter and decreased when the period of completion is longer. In the above calculation, the period for completion of work is in minimum (i.e.) 3 months and so that the fixation of annual turnover is increased.