1

PURCHASE
MANUAL

National Law Book House

A.G. Office, Lahore. Phone: 7236930
DAO/FSD

CONTENTS
CHAPTER I
Scope of Operation
Stores Dealt with

CHAPTERII
Indents and-their Disposal

CHAPTER III
Duties of Senior Officer Technical
Vetting of specifications
Duties of Senior Purchase Officer
Mode of Purchase
Emergency purchase/supply procedure
Procurement action in anticipation of formal indents
Return of indents of petty value

CHAPTERIV
Tender enquiries
Fixation of period for which firms should be required to
keep their offers open
Procedure for receipt and custody of tenders received
Tender Box Opening
Blank Tenders
Acceptance of offers not on prescribed form
Late or delayed tenders
Ignoring of offers
Tabulation of offers and preparation of Comparative
Statement
Safe custody of earnest-money
Technical advice on tenders

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Technical scrutiny of offers and formulation of

purchase proposals
Passing over of lower offers
Purchase in excess of estimated amount shown in the
indent
Price preference for indigenous products
Formation of purchase proposal
Acceptance of tenders
Preparation and checking of acceptance of tenders
Authentication of acceptance of tender
Precaution
Purchase against same
Reference of samples to Test House for inspection
Tender of Boilers
Reference to catalogues in invitation to tenders
Tender for Plant and Machinery
Tender for Air Compressors and Exhausters
Purchase of Spare Parts
Safeguard against quoting of exorbitant rates
F.O.R. Quotations
C & F Quotations
Negotiations

CHAPTERV
General principles of entering into contracts
Request for opening of letter of credit and amendments
thereto
Repeat Order

CHAPTERVI
Monitoring progress of contracts
Clearance of consignments
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CHAPTER VII
Definition of the date of delivery
Provision of delivery date in the acceptance of tender
Determination of date of delivery
Monitoring of deliveries
Extension of delivery period
Liquidated damages
Re-purchase in the case of failure of the original contract
Recoveries on account of decrease in customs duty
during the currency of the contract
Inspection of store
Inspection call
Contract in which initial inspection is carried out abroad
but final inspection is done at the consignees end
Contracts in which stores are finally inspected abroad
Inspection of stores after expiry of delivery period
Procedure in respect of recoveries of compensation from
defaulting contractors for delay in the supply of storesNotice of intended claim for compensation
Amount of Compensation
Claims for small amounts
Adjustment of amounts recovered as compensation from
defaulting firms

CHAPTER VIII
Payment to the contractors
Payment of commission against stores procured from
abroad
Refund of security deposit

CHAPTER IX
Rate Contract
Running Contract
When rate and running contracts should be arranged
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Certification of funds in the case of stores for which rate

or running contacts are arranged
Period of currency
Intimation regarding the effective date in the case of rate
and running contracts
Provision for notice for drawal of supplies in rate contract
Invitation to tenders for rate and running contracts
Attestation of schedule to rate and running contracts in
the copies of the rate contracts endorsed to.
Supply orders for stores exceeding in value the monetary
limit mentioned in the running contracts
Contract for stores inspected in bulk
Supply of copies of rate and running contracts to the
Accountant General/Director General, Audit & Accounts
(Works)
Supplementary demands for materials for which running
contracts have been arranged
Supply of copies of purchase orders and rate/running
contracts to other departments
Date up to which a supply order may be placed against a
rate and running contract
Placing of supply orders against rate or running contracts
prior to the date of their commencement
Separate supply orders against each contract
Registration of supply orders against rate and running,
contracts for statistical purpose

CHAPTER X
Advertisement of demands
Form of Advertisement
Charges for tender
Supply of tender forms to Government
Departments free of charge
Issue of tender forms on payment
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Refunds of the cost of tender forms

CHAPTERXI
Registration of Firms

CHAPTER XII
Case Regarding Reference to Finance Department

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FORMS/ANNEXURES
PR-1 Time Schedule for Processing of
Indents

Annexure-I

PR-2 Indent form

Annexure-II

PR-3 Sealed Sample

Annexure-III

PR-4 Progress Sheets of Indent

Annexure-IV

PR-5 Indent register form

Annexure-V

PR-6 Proprietary Certificate

Annexure-VI

PR-7 Book Post Invitation to tender

Annexure-VII

PR-8 Tender Enquiry Form

Annexure-VIII

PR-8-A Enquiry for Purchase against

Aid/Loan/Barter

Annexure-VIII-A

PR-8-B Enquiry for Purchase on C&F

Basis

Annexure VIII B

PR-9 Conditions for the submission of

tenders

Annexure-IX

PR-10 Tender sheet

Annexure-X

PR-11 Attendance sheet

Annexure-XI

PR-12-Comparative statement

Annexure-XII

PR-13-Advance acceptance of tender

Annexure-XIII

PR-14 Acceptance of tender

Annexure-XIV

PR-15 Imported Registered A D.

Annexure-XV

PR-16- Copies of contracts for

transmission to payments Office

Annexure-XVI

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PR-17 Amendments to contracts

Annexure-XVII

PR-18 Tender/contractor's sample

Annexure-XVIII

PR-19 Approved sample

Annexure-XIX

PR-20 General conditions of contract

Annexure-XX

PR-21 Conditions of contract governing

rate contracts

Annexure-XXI

PR-22 Condition of governing running

contract

Annexure-XXII

PR-23 Conditions of contract plant and

machinery

Annexure-XXIII

PR-24 Surety

Annexure PR-XXIV

PR-25 Instructions for letter of credit

Annexure PR-XXV

PR-26 Acknowledgment of contract

Annexure PR-XXVI

PR-27 Inspection Certificate

Annexure-XXVII

PR-28 indemnity Bond

Annexure-XVIII

PR-29 Registration of firm

Annexure-XXIX

PR-30 Application for Registration

Annexure-XXX

PR-31 Registration certificate

Annexure-XXXI

PR-32 Renewal of Registration

Annexure-XXXII

PR-33 Letter of Credit Registers

Annexure- XXXIII

PR-34 Bill Form

Annexure XXXIV

PR-35 Information Department

Annexure-XXXV

Important Circulars Issued by the S.A. & L Deptt

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CHAPTER I
SCOPE OF OPERATION
1. Consequent upon the decentralization of purchase system
and dissolution of supply and Inspection Wings of the Directorate of
Industries and Mineral Development, Administrative Secretaries to
Government of the Punjab (hereinafter referred to as Chief Purchase
Officer) have been entrusted with the responsibility of purchasing
stores relating to their departments. They Shall -(i)

act as purchasing and inspection agency on all matters

connected with the purchase of store required by the
various indenting officers under their control;

(ii)

prevent, as far as possible, purchase of stores from

outside Pakistan if goods of suitable quality are available
within the country thereby conserving foreign exchange;

(iii)

arrange laboratory tests, analysis, etc., required to be

carried out in connection with the procurement of store;

(iv)

ensure that the specifications for procurement of store(s)

are duly generalized and standardized in accordance
with the provisions of para.5.

The Additional Chief Secretary (hereinafter referred to as

Principal Purchase Officer) shall be responsible for the performance
of above-mentioned functions in respect of stores common to all
departments.
2.
Store Dealt with: The administrative Department shall
arrange for supply of all categories of stores except-(i)

Food stuffs;

(ii)

Indigenous Coal, Charcoal and firewood;

(iii)

Bricks, stones, Marble, Lime, Sand, Chalk, Cement and

similar other building material;

(iv)

School and College furniture including office and classroom material;

(v)

P.O.L Items;

(vi)

Jute Mats (Jute Tat);

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(vii) Books, Maps, Charts, Registers, Blackboards;

(viii) Wood and Timber; and
(ix)

Raw Wool and Woolen Yarn.

*[(x) Where purchase is made under foreign aided projects]

Note: The above provisions shall not apply in cases where:-(i)

Powers to make purchases of specific stores have been

delegated to the agencies/officers at the lower tier of a
Government Department through special instructions
issued by the Government from time to time.

(ii)

Items covered by rate and running contracts.

(iii)

Where emergency purchases have to be made in

accordance with the instructions, on the subject issued
by the Government from time to time.

(iv)

Where purchases are made by officers under the local

purchase powers delegated to them.
------------------

__________________
*

Clause (x) added by S.R.O No. SO (Proc) (S&GAD)1-20/89 iv dated 27 th

April 1997.

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CHAPTER II

INDENTS AND THEIR DISPOSAL

3.
to see--

The indenters while placing the demands are responsible

(i)

that funds duly sanctioned by the competent authority to

meet the cost, freight and other incidental expenses in
respect of the indented stores are available;

(ii)

that the indents are placed by 30 th September (or earlier)

or a year as per time frame given in the schedule at
Annexure-1:

Provided that in cases where advance indenting is resorted to for

the timely supplies of medicines/drugs to the medical store depot,
the indents for these medicines/drugs may be placed four to five
months before the commencement of the financial year for which the
purchase is to be made. In such cases the contracts covering an
amount, not in excess of 40% of the budgeted allocation of the
medical store depot for medicines/drugs, pertaining to the year in
which indents are placed, may be issued well before the onset of the
ensuing financial year. Such contracts, however, should stipulate that
delivery of stress should not be made prior to first day of the financial
year whose funds have to be utilized.
(iii)

that the nomenclature of the stores covered by the indent

is complete and in strict harmony with the technical
description shown in the drawings and specifications;

Note: In the case of plant/machinery major features and

characteristics should be given. If spares for the existing
plaint and machinery are required, name plate,
particulars of the existing plant/machinery indicating
serial number, year of make, makers address and the
revised number of the part is stated.
(iv)

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that the specifications and drawings covering the stores

are clearly stated even if the name has previously been
sent with any other indent; where reference to a certain
catalogue is given, a copy of the relevant extract thereof
is submitted if the latter cannot be spared;

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(v)

that in case where specifications, drawings and other

particulars covering supply are not available, the use to
which the stores would be put to is mentioned;

(vi)

that the last purchase rates and estimated cost of the

stores must be given which should be as realistic as
possible and should be based on the current market
price;

(vii) that a reference is made to the previous supply order if

the same store is required again;
(viii) that in case of proprietary article, alternatives, if any
acceptable which are mentioned;
(ix)

that separate indents are prepared for different

categories of stores. Indents for store that is
available/manufactured locally should be submitted
separately from the ones to be imported from abroad;

(x)

that specific dates by which stores are required are

indicated and terms like immediate, as early as
possible, etc. the not used;

(xi)

that detailed instructions for filling in the indent form given

at Annexure-II are followed;

(xii) that in case of supply of trade items, a sample is

furnished to guide supply; sealed sample farm is
available at Annexure-III.
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CHAPTER III
4.
(a) The Chief Purchase Officer shall appoint two Senior
Officer of his department to act as Senior Officer Technical and
Senior Officer Purchase.
(b) Duties of Senior Officer Technical:
(i)

Vetting of specifications given in the indent.

(ii)

Technical scrutiny of offers.

(iii)

Inspection of stores when required.

(c) Senior Technical Officer shall designate as Technical

Officers as many officers of his departments as he deems necessary.
5.

Vetting of specifications:

(1) Government of the Punjab Services, General

Administration and Information Department, Lahore vide Notification
No. SO (Reg) (LR) 1-33/85, dated 26 th March, 1985, Annexure XXXV
constituted Departmental and Inter-Departmental standardization
committees. These committees shall prescribe standardized set of
specifications in respect to each and every item/category of stores to
be purchased by other departments and for stores of common use.
The members of the committee shall ensure that he specifications
prescribed by them are sufficiently generalized to ensure
competition. The recommendations made by the Departmental
Standardization
Committee
for
the
standardization
of
equipment/stores of sophisticated and specialized nature shall be
examined and approved by the Inter-Departmental Standardization
Committee. The standardization so arrived at shall be valid for two
year. Relaxation can, however, be made in exceptional cases by the
competent standardization committee for reasons to be recorded in
writing with the prior approval of the Inter-Departmental
Standardization Committee.
(2) It should be ensured that the specifications given in the
indent conform to those prescribed by the departmental or interdepartmental committee, as the case may be. Purchase of stores in
respect of which specifications have not been given shall only be
made after getting the specifications approved by the competent
standardization committee. In no case procurement shall be made
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without getting the specifications of stores vetted/approved by the

competent committee.
Note (i): The aforesaid presumes that the Senior Purchase
Officer has satisfied himself as to the
reasonability/genuineness of the demand keeping in
view the indenters authorization based on such
factors as organizational structures, replacement
schedule, inventory position, level and nature of
consumption and that a proper procedure and
adequate safeguards exist to ensure that the
requirements of financial rules on the matter have
been duly complied with.
Note (ii): Special care should be taken in the case of hospital
equipment, the purchase of which should be highly
standardized and in the case of instruments/
equipment requiring after sale service and provision
of spare parts purchases should be made from prequalified firms in the light of the recommendations
made by the competent standardization committee.
Note (iii) The chief Purchase Officer, may, at his discretion,
require a technical expert having the requisite
knowledge in the matter, to be associated with the
senior technical office for scrutiny of indents and
offers in case where stores under procurement are of
sophisticated nature or where expert advice is
required in regard to certain technical aspects of the
matter. (If needed the technical advice may be
obtained by co-opting an expert of another
department).
6.

Duties of Senior Purchase Officer:

(a) Senior Purchase Officer shall develop suitable

methodology to ensure timely and orderly completion of procurement
action. It shall particularly be observed that
(i)

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A proper and updated record is kept of all indents

received. A number should be allotted to each incoming
indent and details of items indented and their estimated
value should be shown for facility of future reference.

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Amendments, if any, in the indents and their ultimate

disposal should also be indicated;
(ii) Items of similar nature demanded through various
indents are grouped to enable bulk purchase and avoid
duplication of advertisement cost;
(iii) The indents shall be carefully examined and checked to
see whether complete particular/specifications forming
the basis of tender enquiry are given in the indents;
correspondence if necessary, for purchase of seeking
clarifications or to get the missing details should be fairly
rapid and backed with strict follow up measures;
(iv) The Indent Progress Sheet as per Proforma at AnnexureIV complete in all respect and continuously updated
should appear in the indent/contract file;
(v) An Indent Register as per Proforma at Annexure-V is
maintained to keep a close watch on the progress of
indents including those where contracts have not been
placed.
(b) Senior Purchase Officer shall designate as Purchase
Officer as many officers of his department, as he deems necessary.
7.
Mode of Purchase: The mode of purchase shall be
guided by the following Principles:(i)

Advertised Tender Enquiry: Indents of the value

exceeding Rs.1 lac should be advertised in the press
unless in exceptional cases the Chief Purchase Officer
decides otherwise in which case the reasons therefore
shall be recorded.

(ii)

Single Tender Enquiry: Single Tender Enquiry will be

issued when:Store of a propriety nature has been indented by virtue of
a proprietary certificate in the form indicated as
Annexure-VI issued under the signatures of the
concerned Administrative Secretary and the source of
supply is restricted to a single manufacture. However, if
such items are quoted locally by a number of agents (for

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purchases in local currency) single tender enquiries need

not to be issued.
Note (i)

The proprietary items should remain under

constant scrutiny of the indenter who should not
generally give his preference for a particular make
unless there are overwhelming considerations for
doing so;

Note (ii)

Where spare parts of a particular type of machine

are required). While spares and specialized
equipments can be proprietary store, sometimes
they are interchangeable in which case other
source of supply should also be tried; where
substantial quantities are required and new
manufacturers are prepared to provide after sale
service, enquiries should not be confined to
previous suppliers.

(iii)

Limited Tender Enquiry: Indents up to the value of Rs.1

lac may be covered through a limited tender enquiry. In
such cases notices shall be sent to the registered
firms/suppliers.

(iv)

Selected Tender Enquiry: A Selected Tender Enquiry

may be issued in exceptional cases with the approval of
Senior Purchase Officer to-(a)bona fide firms/manufacturers for procurement of
stores of a specific nature; or
(b)in case where firms/manufactures of a specific
geographical area specializing in a given field of
industry alone are required to quote.

8.
Emergency purchase / supply procedure: The
purchase of articles and stores indented on emergency basis shall
be covered by the following conditions-(a)

that the indent has received the specific approval of the

Chief Purchase Officer or the Principal Purchases Officer,
as the case may be;

(b)

that the indent shall be technically scrutinized in the

prescribed manner;

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(c)

that the procurement shall be effected by a Purchase

Committee headed by the Chief Purchase Officer/
Principal Purchase Officer.

9.
Procurement action in anticipation of formal indents:
In order to save time, the Indenting Officer, should prepare the
indents in anticipation of actual release of funds and place them on
the Chief Purchase Officer/Principal Purchase Officer to enable
completion of preliminary action. Regular tender enquiries will be
floated as soon as availability of funds is confirmed by the Indenting
Officer.
10.
Return of indents of petty value: Indents up to the
value of Rs.25,000/- shall not be entertained except in cases where it
is certified by the Indenting Officer that local purchase is not
possible.

CHAPTER IV
11.
Tender enquiries: Invitation to tender as at Annexure-VII
should be prepared and issued by the Purchase Officer. Tender
Enquiry conditions and instructions given at annexure-VIII-A or VIII-B
or VIII-C should be adopted as required. Submission of tenders shall
be governed by the conditions laid down in Annexure-IV. Individual
notices shall be sent to registered contractors in case of advertised
tender also. Purchase Officer concerned will be responsible for
proper display of all tender enquiries on a notice board. Unregistered
firms should be required to furnish earnest money in keeping with the
general conditions governing the tender enquiry. Sufficient time
should be allowed in all tender enquiries for calling of quotations
especially in C&F cases where the firms have to contact their
principals abroad.
12.
Fixation of period for which firms should be required
to keep their offers open: Chief Purchase Officer/Principal
Purchase Officer should fix a suitable period for which the
prospective tenderers should be required to keep their offers open.
In case of C&F/F.O.B. tender enquiries and those on local currency
basis requiring testing of samples, the tenderers shall be required to
keep their offers open for at least 45 days. In other cases a minimum
period of 30 days should be specified for the purpose.

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13. & 14 Procedure for receipt and custody of tenders

received: The Tender Box shall be kept at a prominent place under
the supervision of the concerned Purchase Officer. The key of the
box should always be kept in the safe custody of the Officer. No
advertised or limited tenders should be received by hand. Where the
representative of any firm wishes to hand over ay tender he should
be asked to place it personally in the Tender Box. Bulky tenders
which cannot be inserted in the Box should be received by the
Officer holding the custody of the Tender Box. He shall keep these
tenders in his almirah which shall be securely locked. The tender
shall be received in sealed cover as per instruction-20 given in
Annexure-IX.
15.
(i)

Tender Box opening:

The officer entrusted with the custody of the Tender Box
shall open it at the prescribed time and date. He shall affix
his signature on the tender covers with date. The tenders
will be sorted out and after making entries in the register
maintained for the purpose tender slips will be prepared in
duplicate. In the form of Annexure-X indicating number of
tenders received which shall be passed on to the officer
authorized to open the tenders. He will return one copy of
the slip duly signed indicating number of tender covers
received by him. Tenders which are not to be opened on
that date will be replaced in the Tender Box after making
necessary entries in the Tender Register. Any tender
received in the Central Receipt Section will be delivered
immediately by the concerned Officer/Official of the
Central Receipt and dispatch section to the Office
Incharge. Tender Box, so that these could be included in
tender slips, if received in time. Particulars of Tender
received late shall also be recorded on envelops and
separate slip.

(ii) The following procedure shall be followed by the Purchase

Officer for opening of tenders.
(a) All tender regardless of their number and value shall be
opened in public by two Purchase Officers nominated
for the purpose.

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(b) The officer opening the tenders shall on request

announce any of the conditions of a tender other than
those already announced. He shall also allow the
representatives of the participating firms to peruse any
tender if a request is made in this behalf.
(c) Every tender shall be given a serial number. The total
number of tenders received shall also be indicated; for
example if five tenders are received the successive
tenders in the process of opening shall be marked as
1/5, 2/5, 3/5, 4/5 and 5/5.
(d) The officer opening the tender shall give page number
to every tender and he shall also indicate the total
number of pages contained in a tender on its title page.
All blank pages and portions of a tender shall be scored
out by the officer so as to restrict subsequent entries
thereon.
(e) After opening the tenders, the officer shall get the
representative of the participating firms to fill in the
relevant columns of the attendance sheet prescribed at
Annexure- XI. He will also make the necessary entries
himself at the bottom of the said attendance sheet.
Simultaneously he shall record the summary of the
tenders in the noting portion of the file.
(f) All corrections/overwriting found in the tender shall be
announced to the representatives of the participating
firms. In addition all over writings and corrections to the
rates quoted by a tenderer shall be re-written by the
officer and initialed. This fact should be recorded in the
certificate signed by the representatives of the firms
present at the opening of the tenders.
(g) The offers when received should be carefully examined
by the Purchase Officer concerned, before passing on
the same to the Technical Officer for scrutiny of the
particulars of the store offered, where necessary.
16.
(a)

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Blank Tenders:
If any quotation has been left blank by tenders, this
should be particularly noted and the tender cancelled.

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The cancellation should be done under the initials of the

tender opening officers with date and number of tender
noted separately in the note portion of the relevant file.
(b)

Entries left blank by a tenderer should be indicated by

drawing a line across the blank space under the initials of
the Tender Opening Officer.

17.
Acceptance of offers not on prescribed form: if
quotations are received from registered or otherwise renowned firms
in their letter form instead o prescribed tender form against the
advertised or limited tender, Purchase Officer may consider such
quotations if they are received in time. In such a case the tenderer
submitting the offer should be required to pay the prescribed tender
fee and also to confirm in the prescribed manner that they accept the
general conditions of contract as contained in RR-XX to XXIII (as
applicable) and also the special conditions of Tender Enquiry. Such
tenders from unregistered or unknown firms should not be
considered.
18.
Late or delayed tenders: Tenders either posted without
adequate time to enable them to reach the Tender Box before the
scheduled date and time of receipt or posted or delivered after the
scheduled time and date of receipt, are called late tenders and as a
rule no notice will be taken of them. Similarly, subject to provision of
para 15, no notice is to be taken of delayed tenders which may be
posted in time and delayed in transit, and received after the time and
date fixed for their receipt.
19.

Ignoring of offers: No offer shall be considered if it--

i)

is submitted without earnest-money by an unregistered

firm or by a firm not registered for the particular store;

(ii)

is received after the date and time fixed for its receipt;

(iii)

is unsigned;

(iv)

is ambiguous;

(v)

is conditional;

(vi)

is given by firm black-listed, suspended or removed from

the approval list;

(vii) is received by telegram;

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(viii) is received with a validity period shorter than the required

in the tender enquiry;
(ix)

does not conform to general conditions of the enquiry

e.g. it is not accompanied by sample or manufacturers
literature where required;

(x)

is for store materially and substantially different from the

required in the tender enquiry.

20. Tabulations of offers and preparation of Comparative

Statement: Comparative statements of offers received shall be
prepared in all cases in accordance with the prescribed Form
(Annexure XII) as indicated below:(i)

The comparative statement of offers shall be prepared by

the dealing Assistant/Senior Clerk, as the case may be
who will also sign the same and put down his full name
and designation in capital letters below his signatures.
The comparative statement shall be complete in every
respect containing all the essential features of the offers
which may have a bearing on the question of price; terms
of delivery, specifications, etc.

(ii)

The Purchase officer shall ensure that all tenders

received are included in the Comparative statement.
Where alternative offers are given by tenderers full
details thereof may be entered in the Comparative
Statement. When offers are based on samples, a
reference to this effect should invariably be given.

(iii)

The Comparative Statement will also show the estimate

value of the stores as given by the indentor and the last
purchase price with contracted date and if the estimated
value and/or last purchase price is not known, the entries
should be made in the Comparative Statement
accordingly.

(iv)

Where the rates quoted by the tenderers are in different

currencies and on different basis of delivery, the same
shall be converted by the Purchase Officer concerned,
into a uniform currency and the basis of delivery. The
converted rates shall be indicated on the Comparative
Statement in red ink immediately below the quoted rates.

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(v)

The offers in the Comparative Statement will be graded

by the officer himself and the 1 st, 2nd, 3rd lowest offers will
be marked by him in Roman Digits, i.e., I-II-III-IV using
red pencil.

(vi)

While preparing Comparative Statement offers which

have been ignored for reasons mentioned in para 19
shall not be graded.

(vii) The Comparative Statement should indicate whether the

tenderer is registered or not for the store he is offering.
The Purchase Officer concerned shall record the
certificate to the effect that-(a)

the particulars of the Comparative Statement are

correct;

(b)

the quoting firm is registered for the stores as

indicated in the registration status column;

(c)

all the tenders received have been posted in

Comparative Statement.

21. Safe custody of earnest-money: The earnest-money

should be kept in an iron safe/bank locker for safe custody. A register
shall be maintained and authenticated by a Senior Officer
periodically; it shall indicate the following:(i)

Name of the firm;

(ii)

Tender Enquiry No. with date of opening;

(iii)

Stores;

(iv)

Call deposit No. and name of issuing bank;

(v)

Period of validity;

(vi)

Remarks, if any.

22. Technical advice on tenders: All offers shall be referred

to the Senior Technical Officer for advice.
23. Technical scrutiny of offers and formulation of
purchase proposals: The following procedure shall be followed on
the subject.
(i)

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No lower offer will be ignored for reasons other than

detailed scientific report given by the technical officers

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establishing as to how the offered store does not conform

to the specifications given in the tender enquiry. Such
report should be based upon an analysis of the essential
features and characteristic and should not focus on minor
deviations which do not effect the intrinsic worth/quality
and
optimum
performance
of
the
offered
stores/equipment;
(ii)

If for any reason, a lower technically acceptable offer is

proposed to be by-passed or ignored, the case will be
submitted to the Chief Purchase Officer for his orders;

(iii)

In case there is any disagreement between the Senior

Purchase Officer and the Senior Technical Officer
regarding the technical aspects of any offer or the
acceptability of a lower offer, the case would likewise be
submitted to the Chief Purchase Officer for orders;

(iv)

Reasons for not accepting the lowest tender/bid should

be recorded confidentially in the tender register.

24.

Passing over of lower offers:

(i)

It is not permissible to pass over the lowest offer and to

place order with one of the other tendering firms at the
rate quoted by the lowest tenderer by special
arrangement. Such a procedure is contrary to the
principles which govern the system of competitive tender
and should not be adopted. If the lowest offer is passed
over the order should ordinarily be placed with the lowest
acceptable tenderer at the price originally quoted by him,
the reasons for rejecting the lowest tender being
recorded;

(ii)

If the Indenting Officer does not allow reasonable time for

supply and higher prices are to be paid for quick delivery,
the fact should be brought to the notice of the Chief
Purchase Officer.

25.
Purchase in excess of estimated amount shown in
the indent: Orders may be placed in excess of the estimated total
cost of all items shown in the indent without prior reference to the
indentors provided the excess expenditure over the total estimated
amount is not more than 10% or Rs.20,000/-, whichever is less.
DAO/FSD

24

26.

Price preference for indigenous products: [Deleted].

27.
Formation of purchase proposal: Purchase proposal
will be made by the Purchase Officer concerned on the basis of the
technical report. The dealing Assistant shall not offer any comments
on the offer or initial any purchase proposal. This is the sole
responsibility of the Purchase Officer.
28.
Acceptance of tenders: Purchase Officer competent to
deal with the order should record the decision both in the appropriate
column of the comparative statement as well as on the file. The
Purchase Officer will then prepare the order in the form given at
Annexure XIII the formal contract should be made on the form given
at Annexure XIV & XV. It should contain a reference to the advance
communication or bear the same number and date.
29.
(i)

Preparation and checking of acceptance of tenders:

It is essential that every Purchase Order should be
checked by a person other than the one who has
prepared it. A rubber stamp in the following form should
be affixed on the margin of the note sheet prominently
showing the name of person who prepared and checked
the Contract:Contract prepared by _____________
Contract checked by ______________
Contract approve by ______________

(ii)

No contract shall be issued unless it has been approved

by the competent Purchase Officer who may get the
particulars of the contract rechecked. The office copy in
the file should clearly indicate who has typed and
compared it. Corrections should, as far as possible, be
avoided. Minor corrections, if necessary, should be
properly attested by the officer who sings the contract.

30. Authentication of acceptance of tender:

(i)

DAO/FSD

Copies of all contracts and amendments thereto are

required to be forwarded to the concerned paying
authorities through a Signature Verifying Officer of the
Purchase Agency. It is the duty of the Signature Verifying
Officer to tabulates/prepare a list in triplicate of all the

25

contracts and amendments made on the preceding day.

He shall then -(a) affix the seal of the purchase agency on the first copy of
the list and on each and every page of the documents
comprising the acceptance of tender i.e. forms placed
at Annexure-XIV or XV alongwith forms at AnnexureXVI or XVII, as the case may be with Embossing
Machine. The seal should be fixed as close to the
signature of the Purchase Officer signing the contract
as possible and the Signature Verifying Officer shall
authenticate the signature of the Purchase Officer
which should be in full and only in ink on the said
documents and also affix his signatures on the lists;
(b) forwarded the first copy (i.e., embossed copy) alongwith
the enclosures stipulated at (a) above and the 2 nd copy
of the list to the Audit Officer concerned who shall return
the second copy of the said list duly acknowledged to
the Purchase Agency.
(ii)

The Signature Verifying Officer shall be responsible only

to verify signatures of the Purchase Officer signing the
contract; rest (terms of contract, etc.) being the
responsibility of the Purchase Officer. Three specimen
signatures of the Purchase Officer signing the contract
are required to be maintained by the respective Signature
Verifying Officer to enable him to verify the signatures on
the contract documents. As regards specimen signatures
of the Signature Verifying Officer these are required to be
kept by the paying authorities.

(iii)

In Purchase against foreign exchange the procedure

mentioned in the above para shall be followed except
that three copies of the documents shall be embossed
and submitted to the Audit Officer concerned.

Precaution: Purchase Officer should not sign in full on spare

copies of A/T. Fraudulent use of such copies, if issued inadvertently
to a firm may be lead to double payment. If an order is misplaced on
it is found necessary to prepare spare copies of the same it should
be marked clearly as Duplicate to avoid double supply.

DAO/FSD

26

31. Purchase against same: Contractor Samples should be

called for in exceptional cases only. However, when sample is
considered necessary for a specific purpose the samples submitted
by the firms should be sealed till the finalization of the contract.
Contractors sample form is available at Annexure-XVII.
32. Reference of samples to Test House for inspection:
(i)

If samples are required to be submitted to testing

laboratories the report of the officer who received them
and his recommendations in regard to the suitability or
otherwise should be awaited before deciding which firm
is to get the order. The rate for each sample should also
be communicated in a confidential cover it is required to
place the acceptable samples in order of merit on the
basis of value for money. Sample acceptance letter is
placed at Annexure-XIX.

(ii)

The tenderers shall be required t be deposited testing

fees in advance with the testing laboratories specified in
the tender enquiry and to enclose the receipt issued by
the said laboratory with their tenders failing which the
offers shall be ignored.

33.
Tender of Boilers: When calling for tenders for boilers,
the firms should be required to include in the tendered price the cost
of furnishing a certificate under the Boiler Act. This should be
included in the schedule of requirements.
34.
Reference to catalogues in invitation to tenders:
Reference to a particular catalogue in the tender enquiry should be
avoided as far as possible. In cases where it is unavoidable the
words or similar should be added with the catalogue number.
35.
Tender for plant and Machinery: An additional
tabulated statement should be attached as an appendix to the
Schedules of Requirements accompanying tenders for plant and
machinery for each item included in such tenders. This appendix will
provide for price columns as in the actual tender and the principal
technical details required when comparing tenders. It will be got
prepared by the Senior Technical Officer alongwith the schedule of
requirements and will be completed by the tenderers. When tenders
are opened, the appendices will be extracted and put up in book
form as abstracts of tenders when preparing any other schedule of
DAO/FSD

27

prices or comparative statements. The schedule will be checked by

the Purchase Officer concerned.
36.
Tender for Air Compressors and Exhausters: It is not
ordinarily practicable in Pakistan to carry out tests of capacity of Air
Compressors and exhausters by the methods in the British Standard
Specifications. A clause on the following lines should, therefore, be
inserted in all enquiries in schedule of requirements of Air
Compressors and Exhausters:The contractor shall furnish certificates of tests at the
markers works of the capacity of the exhausters/
Compressors carried out in accordance with the British
Standard Specifications or equivalent.
37.
(i)

Purchase of Spare Parts:

While inviting tenders on C&F basis for earth engine
moving machinery, road rollers, locomotive drag line,
oiled engine, large electric motors, compressors, etc. (not
trucks or cars) spare parts should be included as
separate items in the tenders. All spare parts are
components of earth moving machinery, electro-medical
electronic or electrical equipment and other specialized
equipment and should as far as possible be procured
through the accredited agents of manufacturers subject
to the following:(a)

The accredited agents shall submit alongwith their

offer the proforma invoice of their Principals;

(b)

A certificate from the principals to the effect that

prices quoted on the proforma invoice are as per
their current export prices;

(ii)

The indentors should, however, not include in the indents

spare parts or components as are being manufactured
locally. In case of Belts, Filters, Hose Pipes, Brake-Lining
Bearings and Fuel Injection Equipment, efforts should be
made by the indentors to prepare detailed specifications
for procurement on open tender basis.

(iii)

Offers from Shippers shall be acceptable only if

accompanied by a warranty and a certificate from the

DAO/FSD

28

original manufacturers that they agree to supply the

spare parts against the specific tender enquiry.
(iv)

In case of spare parts of imported origin being purchased

on F.O.R. basis the following requirements shall be
fulfilled by the tenderers:(a)

A certificate to the effect that the spare parts shall

be genuine, brand new and in the original packing
of the manufacturers;

(b)

A certificate to the effect that they will be

responsible for free replacement of spare parts on
demand, if not found suitable for the genuine
machinery or its ancillary equipment;

(c)

Manufacturers name, in whose packing the spares

will be offered for inspection must be given in the
offer;

(d)

Important documents shll be produced at the time of

inspection to ensure that stores offered for
inspection are genuine, brand new and in the
original packing of the manufacturers;

(e)

The tenderer should under-take that the security

may be forfeited if they fail to furnish the import
documents on inspection as at (d) above or to the
purchase of stores at their risk and expense;

(f)

Part number and nomenclature of each item must

be given in the quotation as per particulars
contained in the tender enquiry. In case superseded
parts Nos. are offered, manufacturers certificate for
parts catalogue shall be produced in support of the
offer made by them.

38.
Safeguard against quoting of exorbitant rates: In
order to safeguard against offers in respect of items of proprietary
nature or spare parts, or where response to a tender enquiry has
been poor or a single tender has been received or rates received are
otherwise considered to be on the high side, the following certificate
shall be demanded from the tenderer to ensure the reasonableness
of the quoted prices:-

DAO/FSD

29

F.O.R. Quotations: Certified that the prices quoted against

Tender No. ---- are not more than the prices charged from any other
Purchase Organization in the country and in case of any
discrepancy, the tenderer hereby undertakes to refund the price
charged in excess.
C&F Quotations: Certified that the prices quoted it e tenders
are not in excess of printed price list of the manufacturers in the
country of origin and in case any discrepancy is noticed
subsequently, tenderers hereby undertake to make good any loss to
the Government.
39.
Negotiations: Negotiation is an exceptional procedure
which may be adopted in the following circumstances:(i)

Where in the opinion of the Chief Purchase Officer the

rate of the lowest tenderer appears to be unreasonably
high having regard to the market conditions, previous
purchase rate an the quotations received against any
tender/enquiry or a contract made in the recent past:

(ii)

When most of the offers received are deficient and it is

genuinely felt that clarification from the tenderers in
necessary;

(iii)

When the orders are of very substantial quantities and in

the interest of expeditious delivery it is considered
desirable to sub-allot the contract to various well-known
manufacturers (such as in the case of Tyre and Tubes)
negotiations may be carried out with reputable and wellestablished firms in that line but the prices on which the
orders will ultimately be placed will be regulated with
reference to the price of the lowest bidder;

(iv)

Negotiation will be held with the graded firms.

DAO/FSD

30

CHAPTER V
40.

General principles of entering into contracts:

(i)

The terms of the contract must be precise and definite

and there must be no room for ambiguity or misconstructions:

(ii)

Both parties will observe the terms of a contract

scrupulously and strictly. The authority empowered to
execute a contract will not have the same freedom in
revising the price, place of delivery, as it has at the time
of entering into a new contract. Where the departure from
the conditions of contract becomes necessary,
concurrence of Finance Department will be obtained;

(iii)

No contract involving an uncertain or indefinite liability or

any condition of an unusual character should be entered
into without the previous consent of the competent
financial authority;

(iv)

Provision must be made in contracts for safeguarding

Government property entrusted to contractors;

(v)

Purchase Officer shall have no authority to revise the

terms of an order including rate and running contracts
after it has been placed so as to increase the basic prices
agreed upon (directly or indirectly), e.g., by changing
place of delivery;

(vi)

Standard form of contract as prescribed at AnnexuresXIV & XV (alongwith the special instructions annexed
thereto) should always be adopted. While preparing the
orders the Purchase Officer should give special
consideration to the following:(a)

DAO/FSD

Reference should invariably be given to the general

and special conditions governing the contract in the
appropriate column of the order. It is most essential
that all the conditions subject to which a tender is
accepted are reproduced in the contract itself for
information and guidance of all concerned.
Contracts are governed by the general
conditions/instructions as at Annexures XX, XXI,

31

XXII & XIII in addition to those already mentioned

at Annexures VIII-A, VIII-B, BIII-C whichever is
applicable.
(b)

The specifications of the store required to be

purchased should be clearly stated.

(c)

Accepted prices or negotiated pries as the case

may be should be indicated. Total price of the
stores as shown in the order should be inclusive of
freight without indicating the freight charges
separately. The total value of the purchase order
should be rounded up to the nearest rupee.

(d)

Quantity of each item required should be shown

separately.

(e)

The order should incorporate the inspection clause

indicating where the stores are to be inspected at
firms premises or at the consignees end, as the
case may be.

(f)

The following clause must be inserted in the supply

order:Inspection Call should be sent two weeks before
the date when inspection is required, failing which
the actual date of inspection or the date failing two
weeks after the receipt of inspection call, whichever
comes earlier shall be deemed to be the date on
which the store was offered for inspection.

DAO/FSD

(g)

Despatch instruction on the indent and in the

forwarding letter or other communication from the
indenter or consignee should be carefully observed
and should not be departed from without their prior
concurrence.

(h)

All orders should, as far as possible, be placed on

free delivery at consignees end basis irrespective
of the mode of despatch.

(i)

While placing the order security (5% from

registered firms and 10% from unregistered firms)
should be obtained. In case of the C&F/FOB

32

contracts performance bond by the foreign

principals as prescribed at Annexure-XXIV at the
rate of 10% of the total value of contract should be
obtained wherever required.
(j)

In C&F/FOB cases, it should be stipulated in the

contract that all consignments are to be shipped to
the order of the Liaison Officer. In no case the
stores should be consigned to the order of the
shipper or banker.

(k)

Specific instructions should also be incorporated in

the order to the effect that 8 copies of shipping
documents as indicated below must be supplied by
all the contracting firms at least 10 days before the
arrival of the ship, to the Liaison Officer responsible
for clearing the stores from the port of entry. As
regards transportation of consignments by air
reasonable time say 3 or 4 days should similarly be
allowed:1.

Bill of landing/air way bail (in duplicate).

2.

Packing List.

3.

Invoice Showing:(a)

relevant A/T No.

(b)

details or shipment.

(c)

Value of stores.

(d)

Name of shippers or airline.

(e)

Country of origin.

4.Certificate of origin.
5.Inspection Note in duplicate in cases where
inspection is specified before the shipment.
6.Manufacturers
following:-

Guarantee

Certificate

as

Certified that the stores supplied are brand new

and are absolutely free from any material or
manufacturing defect and are strictly in
conformity with the specification as contained in
DAO/FSD

33

the contract. It is also certified that the stores

have been packed and marked in accordance
with the terms of the contract.
It should also be made clear that the contractors
will be held responsible if any demurrage or
wharfage is incurred as a result of their failure to
furnish the necessary documents in time. The
suppliers should be instructed to mark all
packages intended for Government Department
with the Government mark which should be
shown on the Bill of Lading. These marks are
required for guidance of the Clearing Agents.
One set of non-negotiable shipping documents
will also be sent by the supplier to:1. Audit Office specified in the contract.
2. Consignee named in the contract.
3. Chief Purchase Officer
(vii)

Copies of all contracts placed by the Chief Purchase

Officer should be forwarded to the following:(a)

Data Centre of F.D.

(b)

Indenting Officer.

(c)

Audit Officer concerned.

(d)

Liaison Officer, in case of C&F/FOB contracts.

(e)

Directorate of Inspection, Government of Pakistan

(2 copies) where the inspection is to be carried out
by Inspection Wing abroad.

(viii) Copies of all amendment and communications canceling

purchase orders should invariably be endorsed to the
Audit Officer concerned.
(ix)

Instructions regarding installation of machinery/

equipment at the users end after sale services, training to
the users, etc.; when required; to be provided by the
contracting firm should be incorporated in the order.

41.
Request for opening of letter of credit and
amendments thereto: Simultaneously with the issuance of the
DAO/FSD

34

contact on C&F/FOB basis letter of credit opening request addressed

to the State Bank should invariably be sent t the Accountant-General,
Punjab/Director-General, Audit & Accounts (Works), in triplicate at
least seven days before the close of relevant shipping period, so that
it could be established well in time having regard to -(i)

date of shipment/validity mentioned therein;

(ii)

last date of registration of foreign exchange amount

against the shipping period.

The detailed instructions relating to L/C request are given in

Annexure XXV.
42.
Repeat Order: Repeat Order may be placed in the terms
of a previous contract subject to following conditions:(i)

Time is not available for retendering the stores;

(ii)

The course is considered to be advantageous and the

order is against a contract placed at a price which in the
opinion of officer dealing with the demand, has not fallen
since that contract was placed;

(iii)

The value of he repeat order does not exceed 50% of the

value of the contract or Rs. 1.00 lac whichever is less in
case of an advertised tenderer enquiry or 50% of the
value of the contract or Rs. 50,000/- whichever is less in
case of a limited tender enquiry, provided that the
contracts were placed with the first lowest tenderer (not
against the first lowest technically accepted offer);

(iv)

The value of the repeat order does not exceed 10% of

the value of the contract or Rs. 10,000/- whichever is less
in case of contracts where proviso at (iii) is not
applicable;

(v)

The approval of next higher competent Purchase Officer

is obtained in each case.
Note: Repeat order should be placed against a supplier
who has executed the contract within the original
delivery period and satisfactorily. The delivery
period of stores should be preferably on ex-stock
basis and with a condition in the contract that in no
case extension would be allowed in the delivery

DAO/FSD

35

period of repeat order. In case delivery period has

not expired, repeat order may be placed after
ascertaining that the stores are readily available.
--------------------CHAPTER VI
43.

Monitoring progress of contracts:

(i)

The contracts should be acknowledged by the

contracting firm immediately on its receipt in form
prescribed at Annexure-XXVI.

(ii)

The Purchase Officer should remained the contracting

firm to ensure that the shipping documents reach the
Clearing Agent and others concerned at least 10 days
before the arrival of the ship carrying the consignment.

(iii)

In case where exemptions from custom duties have been

allowed by the Government, the Purchase Officer should
exercise due vigilance in ensuring that the requisite
exemption certificates are obtained and provided to the
Clearing Agent soon after issuance of the contract.

(iv)

The Purchase Officer should ensure that a copy of the

contract and L/C opening request have been received by
the Liaison Officer.

(v)

The Purchase Officer should maintain due vigilance to

ensure that the Clearing Agent keeps him and the Liaison
Officer duly informed about the arrival of the ships
carrying the consignments.

(vi)

The Liaison Officer should ensure that sufficient funds for

the payment of custom duties, sales tax surcharges, etc.,
are available in his impress account having regard to the
schedule of expected consignments. In case of paucity of
funds he should get the impress account recouped.

44.

DAO/FSD

Clearance of consignments:

36

(i)

The Liaison Officer should immediately pass on the

shipping documents to the Clearing and Forwarding
Agent on their receipt.

(ii)

The Clearing Agent should prepare a bill of entry

immediately on receipt of the shipping documents and
present it to the customs authorities for assessment and
verification.

(iii)

The Clearing and Forwarding Agent shall present the bill

of entry as approved by the customs authorities to
Liaison Officer for scrutiny as regards the correctness of
the amounts charge in the bill of entry. (This would
however not absolve the agent from accepting
responsibility of any excess/wrong payment which might
be made to the customs authorities in case the bill of
entry had not correctly been prepared by him).

(iv)

The Liaison Officer shall authorize payment of the

amount of bill of entry to the customs authorities. In case
of any difference of opinion between the customs
authorities and the Clearing Agent/Liaison Officer, the
payment shall be made under protest with a view to
lodging refund claim with the customs authorities
subsequently within the period of limitation.

(v)

The Clearing Agent shall arrange inland transport for

forwarding the stores to the concerned consignee (s) in
accordance with the dispatch instructions given in the
contract. Where necessary he would also arrange for
escort to accompany the consignment with the prior
permission of the Liaison Officer.

(vi)

After despatch of consignments the Clearing Agent shall

immediately forward the railway receipts or the truck
receipts, as the case may be, to the concerned
consignee(s).
---------------

DAO/FSD

37

CHAPTER VII
45.
Definition of the date of delivery: The date of delivery
shall mean the date(s) specified in the acceptance of Tender/Supply
Order of the stores which are found acceptable by the Inspector (as
defined in form PR-20) and not the submission of stores which are
not in accordance with the specifications of the contracts.
46.
Provision of delivery date in the acceptance of
tender: In all acceptances of tenders/supply orders, the date of
delivery of stores should be specifically mentioned and no room
should be left for any doubt or ambiguity in determining the actual
delivery date, the Purchase Officer will be guided by the instructions
contained in paragraph-47.
47.

Determination of date of delivery:

(i)

Free delivery at consignees end: In such cases the

date of delivery would be the date as specified by the
consignee on the receipt certificate. However, if no such
date is given the date of receipt certificate shall be
deemed as the date on which the store was delivered.

(ii)

C&F/FOB: In such cases the delivery date shall mean

the date on which the inspected store is actually shipped.

(iii)

Contracts for plant and machinery including erection

and testing at site: In the case of orders for plant and
machinery including erection and testing at site, the date
by which material should be submitted for inspection
before dispatch, the due date for arrival at site, the date
by which the work of erection should be completed and
offers for final inspection and test at site and date for
completion of their work will be stated in the A/T.

48.
Monitoring of deliveries: The responsibility for
monitoring deliveries and completion of contracts will rest with the
concerned Purchase Officer. To this end he shall maintain a register
showing:-(i)

Progress of supplies against all contacts;

(ii)

The position of stores not delivered.

49.
Extension of delivery Period: Extension of delivery
period should not be allowed as a matter of routine; where necessary
DAO/FSD

38

such extensions should be granted subject to the observance of the

following procedure:(i)

Subject to the provision of para. 50 all extensions shall

be granted with reservation of rights (RR). Extension
beyond the period of one month shall be allowed after
obtaining security at the rate of 2 % of the value of
contract from the registered firms and 5% from the unregistered firms in addition to the imposition of liquidated
damages. Extensions beyond a period of 2 months shall
be allowed after obtaining the concurrence of the
indenting officer.

(ii)

Extension should not normally be allowed in cases where

originally higher price was accepted because of the short
delivery period offered by the firm. However, if necessary
such extensions should be allowed with suitable
cut/reduction in the price keeping in view the rates
offered by the tenderers whose offers were acceptable
but were ignored for longer delivery period. In such cases
no grace period shall be admissible and liquidated
damages shall be imposed in full.

(iii)

No extension in delivery period shall be allowed if it

extends to next financial year without the approval of the
Indenting Officer, who should confirm availability of funds
in the next financial year. Liquidated damages (LD) shall
not be waived in such cases.

50.

Liquidated damages:

(i) Liquidated damages should be levied at the uniform rate

of 2% of the value of the contract per month or a part thereof. The
penalty should be only for the stores supplied late, except where the
undelivered stores hold up the delivered stores. In which case, the
liquidated damages should be for the total value of the contract. The
contractor who refuses to pay liquidated damages or delayed
supplies should be removed from the list of approved contractors.
The Audit Officer should make payment of the balance amount after
deduction on liquidated damages for 2% of the total value of the A/T
without reference to the Purchase Officer subject to later adjustment.
This amount shall be credited to revenue of the department

DAO/FSD

39

concerned. Any subsequent refund if desired shall be treated as the

refund of revenue.
Refund will be made by the concerned Audit Officer on
submission of bill in the usual form by the supplier. The fact of the
refund will be noted against original entries of deduction to guard
against double payment.
(ii) Recovery of the liquidated damages may be effected
from payments due to the contractors from other purchase
organizations as well.
(iii) The question of refund of liquidated damages may be
taken up on the representation of the affected party and refund in full
or part thereof may be allowed on merits having regard to the
condoning circumstances obtaining in the case. Before making the
refund the supplier concerned should be required to give an
undertaking (in writing) to the effect that the decision is acceptable to
him and that it shall not be subject to any legal proceedings or
arbitration at a later date.
(iv) Where the delivery periods have been extended with RR
and delays have occurred in making a final decision regarding
acceptability of a store on the basis of the inspection report or in
obtaining confirmation of funds when extension in delivery period
falls in the next financial year or in seeking concurrence of Indenting
Officer in cases where extension beyond 2 months have been
applied for, rebates may be allowed for the period of delay which
exceeds the maximum limit prescribed hereunder:Maximum period permissible for deciding a request for
extension where:
(a)

Indenting Officers confirmation 15 days

of funds or his concurrence is
not required.

(b)

Indenting Officers confirmation 30 days

or concurrence is required.

(c)

Lab. report is not required for 15 days

finalization of the inspection
report.

DAO/FSD

40

(d)

Lab. report is required for 15 days plus time taken

finalization of the inspection
in obtaining the labs
report which period again
should not exceed 15
days.

(e)

Lab. tests alone are required.

5 days plus time taken in

obtaining lab test reports
which period should not
exceed 15 days.

Where a rejected store has been accepted subsequently

normally LDs shall not be waived.
In case of C&F/FOB contracts the delays in actual receipt of
letter of credit by beneficiaries should be rebated in full. Normally
one clear month should be allowed for receipt of letter of credit by
beneficiary in fixing the date of shipment.
A grace period of 15 days shall be allowed in delivery period if
no extension in the original DP has been allowed. No liquidated
damages shall be recovered for the grace period.
Note: Waiver or Dedication of liquidated damages shall require
the concurrence of F.D.
51.
Re-purchase in the case of failure of the original
contract:
(i) Should the contractor fail to deliver the stores or any
consignment thereof within the period prescribed for such delivery,
the purchaser shall be entitled at his option:(a) to recover from the contractor agreed liquidated damages
and not by way of penalty, a sum of 296 of the price of
any stores which the contractor has failed to deliver as
aforesaid for each month or part of a month during which
the delivery of such stores may be in arrears;
or
(b) to purchase elsewhere, without notice to the contractor
on the account and at the risk of the contractor the stores
not delivered or others of a similar description (where
other exactly complying with the particulars are not in the
DAO/FSD

41

opinion of the purchaser, which shall be final, readily

procurable) without canceling the contact in respect of
consignments not yet due for delivery;
or
(c) to cancel the contract with or without forfeiture of
security;
(ii)
Provided that where a part of the stores is delivered after
the expiry of prescribed period of delivery or after the extended
period of delivery whether with or without reservation of rights, the
purchase at his discretion shall have the right, to impose liquidated
damages as at (a) for the delayed consignment, in addition to his
right of exercising option at (b) or (c) above.
52.
In the event of action being taken under (b) or (c) of
para.51 above, in contractor shall be liable to pay for any loss which
the purchaser may sustain on that account but the contractor shall
not be entitled to any gain on re-purchase made against eh default.
53.
In the event of the termination/cancellation of the
contract, for any reasons whatsoever or on the complete
performance thereof the purchaser may at his option (without
prejudice to any right which may be available to the purchaser under
the existing law and rules framed thereunder) by notice in writing to
the contractor require the contractor to deliver and the contractor
shall thereupon immediately deliver to the purchaser all or part of the
material so required (fabricated or otherwise), in his possession or
control, got or ordered by him whether in the normal course of
business or under special terms arranged through the intervention of
the purchaser or on his behalf for the performance of the said
contract or any part thereof and thereupon the following provision
shall have effect:(a)

The contractor shall subject to any recoveries that the

purchaser may be entitled to, be paid the cost price of the
materials so delivered and not rejected as hereinafter
provided plus as reasonable charge for handling.

(b)

In case at any time after the issue of said notice the

purchaser is of the opinion that the materials are
damaged or unsuitable for the purchasers requirements,
the purchaser may reject and return material.

DAO/FSD

42

(c)

In respect of materials supplied through the intervention

of the purchaser or on his behalf and not taken over by
the purchaser, at the request of the contractor or with his
consent, the contractor shall settle all claims of the
supplier including any claims to pay extra charge (if the
original stipulated terms had been concessional) and
keep the purchaser indemnified against the same.

(d)

In respect of finished articles rejected not being up to

specification or the standard of the accepted or sealed
sample, the purchaser shall have the first option to take
over the articles on payment, to the contractor, of the cost
of raw materials actually expended in the production
thereof together with reasonable fabrication charge and
the purchasers decision on both shall be final and
binding on the parties.

54.
Recoveries on account of decrease in customs duty
during the currency of the contract: Purchase Officer will ensure
that cases where custom duty has been reduced by the Government
are reviewed and recoveries effected from the firms concerned. Such
amount will be considered as Government dues recoverable as
arrears of Land Revenue.
55.
Inspection of store: Inspection of stores shall normally
be conducted by the consignee. In cases requiring bulk inspection or
inspection at factorys premises to ensure application of specified
material and workmanship or where the store procured are of
sophisticated nature, inspection may be carried out by the indentor
and a technical officer co-opted by the Purchase Officer in this
behalf.
56.
Inspection call: Inspection call should be sent two
weeks before the date on which inspection is required. Failing this
the actual date of inspection or the date falling two weeks after the
receipt of inspection call whichever come earlier shall be deemed to
be the date on which the store was offered for inspection.
57.
Contract in which initial inspection is carried out
abroad but final inspection is done at the consignees end: The
progress report and Inspection Certificates will be forwarded by the
respective Inspection Officer abroad as under:-

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43

1.

Accounts Office Copy No.1

To be handed over
the contractor.

2.

Accounts Office Copy No.2

To be handed over to the

contractor only when he
dispatches the stores to
the Inspectors Receipt
Voucher when he brings
stores to account.

3.

Contractors Office copy

4.

Consignees copy.

5.

Additional copy for the Accounts To be handed over to the

Officer
contractor.

6.

Purchasing Officers copy.

7.

Inspectors Office copy.

8.

Consignees
Information

9.

Inspectors copy.

10.

Foreign Principals copy to be

attached
with
shipping
document.

11.

Foreign Principals Office copy.

12.

Foreign principals copy for

payment abroad. (First stage
payment).

13.

Regional Inspectors Office copy

for final inspection in Pakistan

DAO/FSD

to

To be dispatched by the
Inspector
of
the
consignee
when
he
inspects
the
stores
abroad.

advance To be despatached by
copy.
the Inspector.

44

(second stage payment on the

strength of the local inspection
note issued after erection).
In case of total rejection only copies at serial Nos. 3, 6, 7, 9
and 10 need be issued.
58.
Contracts in which stores are finally inspected
abroad: The progress report and inspection certificates will be
distributed by the inspecting agency abroad as mentioned in para. 57
above.
59.

Inspection of stores after expiry of delivery period:

(i)

Store will continue to be inspected within one month of

the expiry of the contracted delivery period. Inspection
Certificate should, however, be issued after obtaining
confirmation from the Purchase Officer that Acceptance
of Tender is not being cancelled. Inspection shall not be
undertaken after this period unless the delivery period is
formally extended by the competent Purchase Officer.

(ii)

Inspection should not be undertaken in the next financial

year unless the delivery period is formally extended.

60.
Procedure in respect of recoveries of compensation
from defaulting contractors for delay in the supply of stores-Notice of intended claim for compensation: In cases where the
firms have failed to keep the delivery dates and the Purchase Officer
is of the opinion that action should be taken against the suppliers for
recovery of compensation for the loss caused thereby, he should
report the matter to the next senior officer giving an estimate beforehand of the duration of the probable delay. Similarly, if loss is caused
by delay in supply and the consignee has expressed the opinion the
opinion that compensation should be claimed, the Purchase Officer
should take the matter in hand and proceed with the usual action. In
such cases he should also inform the suppliers simultaneously that it
is the intention of the Department to claim compensation for the loss
caused by the delay in the delivery of stores.
61.
Amount
of
compensation:
The
amount
of
compensation recoverable in the case of default shall be determined
by the conditions of contract governing the supply. It should,

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45

however, be understood that the amount must be limited to what is

considered to be reasonable in the circumstances of each case.
Maximum amount recoverable under the terms of the contract should
not necessarily be claimed as a matter of course in every case.
62.
Claims for small amounts: No compensation should be
claimed from a firm where the amount worked out on the above
basis is very small. The best means in such cases of checking the
tendency of contractors to secure orders on the strength of promises
to supply by a specified date is to cease altogether from dealing with
those who show themselves habitual defaulters.
63.
Adjustment of amounts recovered as compensation
from defaulting firms: Recoveries from contractors as
compensation for delay in supplies will be credited to the Indenting
Department concerned by Audit Officer.
-------------CHAPTER VIII
64.

Payment to the contractors:

(i)

Free delivery at consignees end: In such cases 100%

payment is to be made against inspection certificate in
the form given at Annexure-XXVII on receipt of the
contracted store; if the consignee fails to return the
receipt certificate to the suppliers within two months of
the receipt of stores by him, he should be issued a notice
under registered cover allowing him 15 clear days for
return of the receipt certificate failing which the Audit
Officer should be asked to make payment to the
contractor against an Indemnity Bond prescribed at
Annexure-XVII under intimation to the consignee.

(ii)

C&F/FOB: Payment shall be made through letter of credit

in the manner specified in the contract

65.
Payment of commission against stores procured
from abroad: The firms commission should be paid subject to
production of no demurrage certificate, inspection note and
consignees receipt certificate.
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46

The following instructions should be observed in respect of

stores failing in any of the under-mentioned categories:1.

Cases where inspection has not been carried out in the

country of origin and is to be carried out at consignees
end.

2.

Where initial inspection has taken place in the country of

origin but final inspection has to be carried out after
erection and commissioning of the plant in accordance
with conditions laid down in Annexure-XXIII.

3.

Where initial inspection has been carried out in the

country of origin and contracts are governed by
conditions of contract laid down in Annexure-XX.

Category No.1
(i)

The consignee shall, within two weeks of the receipt of

store, issue a notice to the National Insurance
Corporation under intimation to the Chie Purchase Officer
for the appointment of an official surveyor to survey the
store. The inspection of the store shall be carried out
simultaneously with the survey of the store and
inspection note issued within 15 days of the survey of the
accepted store. Should the consignee fail to return the
receipted certificate within two months of the date of the
receipt of store, the Purchase Officer may authorize
payment against indemnity bond after satisfying himself
to the facts of the case.

(ii)

In case of any discrepancy, the consignee should

immediately report the matter to the Purchase Officer and
every possible effort should be made by all concerned to
settle the matter promptly.

(iii)

Cases where stores are shipped on manufacturers

guarantee certificate (in accordance with instructions
given in the relevant contracts) action will be taken on the
same lines as for cases failing under Category No.3.

Category No.2
(i)

DAO/FSD

Receipt of stores of Category No. 2 should be reported

by the consignee to the Chief Purchase Officer

47

immediately after the plant and machinery is received by

him. He should also indicate the date/time by which the
plant is expected to be installed and ready for final
inspection.
(ii)

Normally erection and commissioning of the Plant should

be completed within six months of the date of the receipt
of store. Similarly final inspection note should normally be
issued within two months after intimation from consignee
regarding installation of the machinery.

(iii)

Where erection of the plant is delayed or expected to be

delayed beyond six months due to reasons which are not
the responsibility of the firm/contractor, registered notice
shall be given by the Purchase Officer to the consignee
to complete installation of the machinery within the next
two
months
failing
which
accountant-General,
Punjab/Director General, Audit and Accounts (Works)
may be authorized to pay firms commission on the basis
of an Indemnity Bond.

Category No.3
(i)

As regards cases falling under Category No.3 there is

note necessity for arranging final inspection at
consignees end. In the event of any discrepancy or
complaint about the quality of stores the consignee
should report the matter to the Purchase Officer within 30
days of the date of the receipt of stores by him, failing
which the commission shall be paid under the
authorization of Chief Purchase Officer.

66.
Refund of security deposit: Security deposit shall be
refunded by the concerned Audit Officer on the basis of a sanction
issued by the CPO on successful completion of the contract as
under:-(i)

In local contracts on the consignees furnishing a receipt

certificate on the back of the inspection note and a NO
Demand Certificate on the expiry of warranty period if
any;

(ii)

In C&F contracts on receipt of the contracted goods by

the consignee subject to the production of No Demurrage

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48

Certificate and Inspection Note on the expiry of

guarantee period if any;
(iii)

Note:

In C&F contracts where erection and installation is to be

carried out by the contractor on production of No
Demurrage Certificate, Inspection Note and Installation
Certificate from the consignee.
The Earnest-Money/Security Deposit furnished by
the firm may be retained in case the said firm is
defaulter against any contract or for adjustment of
amount due against risk purchase or any other
arrears outstanding against the firm.
----------------

DAO/FSD

49

CHAPTER IX
67.
Rate Contract: A Rate Contact is a contract for the
supply of stores at specified rates during the period covered by the
contract. No quantities are mentioned in the Rate Contract and the
contractor is bound to accept any order which may be placed upon
him at the rates specified within the contract period. As a reciprocal
consideration, the Principal Purchase Officer undertakes to order
from the contractor all stores under the contract which are required
to be purchased subject to certain reservations. The Rate Contract
may be concluded with one or more contractors.
68.
Running Contract: A running contract is a contract for
the supply of an approximate quantity of stores at specified price
during certain period. The approximate requirements of a number of
indentors for the period in question are combined by the Principal
Purchase Officer and the contract provides that any of these
Indentors may demand his requirements at any time or at specified
period during the currency of the contract, either direct from the firm
or by indent on the purchase agency. In the former case, the indentor
shall be referred to the Direct Demanding Officer. Demand against
these contracts should be carefully watched and the contracts should
usually provide for 25% increase or decrease in the quantity
specified.
69.
When
arranged:

rate

and

running

contracts

should

be

(i) All stores of standard types, other than those required in

small quantities only, which are in common and regular demand and
the price of which is not subject to appreciable market fluctuation
may be purchased on the basis of a Rate Contract or Running
Contract, whichever is the most suited to the circumstances of each
particular case. Stores although in common and regular demand
which are subject to frequent price fluctuations should originally be
purchased on the basis of single contract, but in special cases Rate
or Running Contract may be made for such classes of stores whichshould include a provision for possible fluctuations of market rates.
(ii) In case of stores where standardization is not technically
possible, Rate or Running contract should be arranged for more than
one brand specially in case of office equipment like typewriters, plain

DAO/FSD

50

paper copiers, duplicators, so as to facilitate procurement of stores

according to the requirements of various Indentors. Stores should be
added to the list of those to be purchased on the basis of Rate and
Running Contacts where standardization has been affected and
panel of brands has been approved.
(iii) Proposals for concluding new Rate Contract should
ordinarily be initiated when there are three months left in expiry of
the existing Rate Contract so that new Rate Contract is concluded
about a month in advance of the date of its termination.
70.
Certification of funds in the case of stores for which
rate or running contacts are arrange:
(i) Running contracts are based on definite demands and
should be supported by indents for these demands bearing the
certificate prescribed in Annexure-II or by advance deposits where
required. No certificate of funds is required in the case of Rate
Contracts as no definite commitments are made until actual supply
orders are issued. Supply Order issued by Purchase Officer must be
covered by duly certified indents. The Indenting Officers are
responsible to see that funds exist to cover the cost of supply orders
placed by them directly with the contactor.
(ii) The following clause should be inserted in all Rate
Contract against which Officers are authorized to obtain stores for
the guidance of the Direct Demanding Officers:The Direct demanding Officers are only permitted to
operate against this contract on the distinct understanding that the
expenditure involved has received the sanction of competent
financial authority and that funds are available under the proper head
in the sanctioned budget allotment of the indenting department in the
year in which the cost will be adjusted.
(iii) When indenting officers have to draw supply direct under
the Rate Contracts, funds may be drawn by them from the audit
officer on an advance bull for, payment to the contractor on delivery.
It will not be permissible for the indenting officers to make direct
purchase of any item of the specifications covered under the Rate
and Running Contracts by using his local purchase powers; in case
the Rate Contract is finalized/ announced by 31 st October. This time
limit will only be operative if the departments indicate their respective
requirements by 15th July of the financial year.
DAO/FSD

51

71.
Period of currency: The ordinary period of the currency
of Rate or Running Contracts should be limited to one year, but in
special cases a shorter or longer period may be provided for. If it is
proposed to enter into a contract for a period longer than one year
the specific sanction of the Finance Department should be obtained
regardless of the extended with prior consent of the contracting and
the approval of the Finance Department for a period not exceeding
three months on pending finalization of a fresh Rate Contract
whichever is earlier.
72.
Intimation regarding the effective date in the case of
rate and running contacts: In the case of a Running Contract
where conventional date of commencement is earlier than the
effective date, i.e. the date before which contractor is not bound to
make the first supplies available, the latter date should be intimated
to all concerned, by adding a heading to the contract in the following
manner:This contract shall operate from _________ to ___________
but the initial supplies will not be available for delivery
until__________
If supply order against a particular contract is received at a
date after the expiry of the contact and before the effective date of
the new contract for the same material, local purchase outside both
the contracts should be considered if the period between the
termination of the old and the effective date of the new contract is too
long to permit of waiting for the effective date.
73. Provision for notice for drawal of supplies in rate
contract: Provisions may be made in the Rate Contract that due
notice should be given for drawal of supplies against the contract
over and above a specific limit (quantity or number). Such a
provision is intended to enable suppliers to obtain fresh stock when
they are actually out of stock and is not intended to enable them to
put off compliance with a supply order even when the material
required is in stock. A note on the following lines should, therefore,
be given in all contracts containing such a provision:
The notice for recoupment of stocks will be necessary
only if the material is actually not in stock but if the

DAO/FSD

52

material is in stock, the provision will be in operative even

if the guaranteed quantity has already been supplied.
74.
Invitation to tenders for rate and running contracts:
The rule regarding the advertising of demands estimated to cost
above rupees one lac should be strictly observed in the case of
tenders for Rate and Running Contact.
In the invitation to tenders for Rate Contracts, the average
value of articles purchased during the preceding two years should be
indicated in the following times:The average value of ___________________ ordered
by this Department during the last two years
was___________
75.
Attestation of schedule to rate and running contracts
in the copies of the rate contracts endorsed to: In the copies of
rate contracts endorsed t audit authorities all sheets on which prices
are shown, should be attested by the Purchase Officer concerned
and the Signature verifying Officer. The same procedure will apply to
Running Contracts in which the total price is not mentioned at the
end.
76.
Supply orders for stores exceeding in value the
monetary limit mentioned in the running contracts: Running
contract shall contain a provision that it is primarily intended to be
utilized for order not exceeding the quantity mentioned therein and
that in case of demands exceeding that limit the indents should be
sent to the Purchase Officer who entered into contract, who will
decide in consultation with finance Department to place an order
against the contract without calling of tenders.
77.
Contract for stores inspected in bulk: In the case of
stores ordered against Rate and Running Contracts which are
inspected in bulk (e.g., Electric fittings including fans, cables, electric
lamps, accumulator batteries, typewriters, types tubes), all supplies
should be made from the inspected stores.
Each and every consignment will not be inspected but the
stocks held by the firm at the various places will be inspected by the
Inspecting Officer concerned from time to time to ensure that
supplies are up to the specifications.

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53

78.
Supply or copies of rate and running contracts to the
Accountant-General/Director-General,
Audit
&
Accounts
(Works): Two copies each of every Rate and Running Contract
should be supplied to the Accountant General/Director-General,
Audit and Accounts (Works), Punjab.
79.
Supplementary demands for materials for which
running contracts have been arranged: Direct Demanding Officers
against Rate/Running Contracts before complying with indents may
be authorized either by a general notice in the contract or by special
orders to obtain their requirements by placing supply orders on the
firms concerned direct on the prescribed form. The following clause
should be inserted in such Rate and Running Contracts:
Supply order against this contract should be placed in
the standard form. All particulars mentioned in the form
should be carefully typed or filled in ink.
Addition to the list of Direct demanding Officers against the
contracts entered into should be made under the orders of the InterDepartment Purchase Officer.
80.
Supply of copies of purchase orders and
rate/running contracts to other departments: Two copies only for
Rate and Running Contacts should ordinarily be supplied to -(i)

The Director Demanding Officer.

(ii)

Chief Purchase Officer.

81.
Date up to which a supply order may be placed
against a rate and running contract:
(i)

DAO/FSD

A supply order may be placed against Rate or Running

Contact so long as it reached the Contractor before the
last date of currency of the contract. Unless otherwise
specified in a contract or the supply order, a fortnight may
be allowed for compliance with the supply order. While
there is no objection to a supply order being placed as
long as it reaches the Contractor before the contract
expires, supply may not in the normal course be made
after the contract expires. No supply order may be placed
against a contract stipulating that supply is required on a
date after the expiry of the contract.

54

(ii)

If the stores are not put up for inspection (or supplies)

within a fortnight for the date of supply order (or within
the time, if any), otherwise stipulated in the contract or
supply order the Principal Purchase Officer has a right to
cancel the Supply Order. A note to this effect may be
made in all contracts.

(iii)

The adoption of the course laid down in the preceding

sub-paragraphs should be carefully considered when the
contract against which supply order is placed has expired
and the new contract provides for more economical rate
or when supplies can be otherwise arranged at more
favourable terms. If new rates are known before the old
contracts are expired and are favourable, officers placing
supply orders should be advised to wait until the expiry of
the old Contracts and place order against the new
contract whenever possible.

(iv)

These instructions should be applied to running

Contracts as well, as far as possible with due regard to
quantities and other conditions governing the contract.

(v)

If a supply order is placed on a contractor so as to reach

him before the expiry of a particular Rate or Running
Contract and the contractor effects delivery of the stores
or submits them for inspection within a period stipulated
in the contract (say, as fortnight or a shorter period) the
stores shall be paid for at the price specified in the
contract even if a new contract for the said stores has
bee entered into with the said contractor for a higher or
lower price.

82.
Placing of supply orders against rate or running
contracts prior to the date of their commencement:
(i)

There is no objection to supply order being placed

against Rate or Running Contracts before the date of its
commencement provided the date by which the stores
are required to be put up for inspection are within the
contract period.

(ii)

The required date of delivery should decide whether a

supply order should be placed against an existing or any
pending contracts in advance on the condition that the

DAO/FSD

55

indentor is prepared to wait for the supply being made

after the new contracts came into force.
83.

Separate supply orders against each contract:

(i)

When placing demands on supplying firms against Rate

and running Contracts, separate supply orders must be
prepared for supplies against each Rate or Running
Contract. Combining of items relating to different
contracts in one supply order often results in the
submission of one bill by supplying firm containing items
relating to several contracts. Such bills are not accepted
in audit which lead to unnecessary correspondence and
delay in payment. Instructions to this effect should be
given to all officers authorized to place supply orders
against such contract direct.

(ii)

If a Supply Order for supplies against Rate or Running

Contract is received from an officer who is authorized to
operate direct against the contracts, it should ordinarily
be returned to him with the instructions that he should
forward it direct to the contractors for compliance. This
procedure should, however, not be applied to urgent
demands as return of supply orders in such cases would
result in delay in supply but the attention of the Indenting
Officer should be drawn to the correct procedure for
future guidance.

84.
Registration of supply orders against rate and
running contracts for statistical purpose: Provision should be
made in all contracts against which it is intended to authorize officers
of other departments to place supply orders direct to the effect that
the contractor should supply by the 10 th of every month, a statement
in the prescribed form showing total of supply orders received and
supplies made during the preceding month. The statement should
contain consolidated report of supplies from all centres and should
be submitted by the office of the contracting firm with which the
contract is placed. A nil report should be submitted by the due date of
there are no transactions to report, i.e., no supply orders have been
received and also o supply orders have been made. The last report
relating to a contract should state whether or not any supply orders
or requirement is outstanding for compliance. The report should be

DAO/FSD

56

continued after the expiry of the contract till all supplies are
completed.
---------------------------CHAPTER X
85.

Advertisement of demands:

FORM OF ADVERTISEMENT
Subject to the provision of para 7 the tender should be advertised in
the press through Director Public Relations. Simultaneously with the
publication of the notice, a copy of the tender should be displayed on
the notice board of the purchase agency. The notice should indicate
vital information like (i) nature and quantity of the store (ii) total
estimated value of earnest-money required (iii) terms of delivery (iv)
price of tender form (v) date, time and venue of the opening of the
tender (vi) address or the office where from the tender form has to be
purchased.
86.
Charges for tender: All invitations to Tender will be
issued subject to the following rates: --

Value of indent

Tender Price

1.

Up to Rs.50,000/-

Rs.25.00

2.

Above Rs.50,00/- to Rs.1,00,000/-

Rs.50.00

3.

Above Rs.1,00,000/- to Rs.2,00,000/-

Rs.75.00

4.

Above Rs.2,00,000/- to Rs.5,00,000/-

Rs.100.00

5.

Above Rs.5,00,000/- to Rs.15,00,000/-

Rs.300.00

6.

Above Rs.15,00,000/-

Rs.500.00

If a claim for refund is admitted, the amount may be placed to

the credit of the firm and adjusted against future issues.
A separate register of amounts due to the firms will
maintained. A note of all refunds will be made in this register, in
tender money cash book, stock account register and on
counterfoils of the receipts issued. Refunds from cash in hand
not permissible.
DAO/FSD

be
the
the
are

57

Note: (i)

(ii)

Where officers have been received on the letter

Head of the offering/quoting firms, the said firms
should be asked to deposit the cost of the tender
form before the offer is finally accepted.
The above tender fee may be revised from time to
time.

87.
Supply of tender forms to Government Departments
free of charge: Tender forms will be supplied free of charge to
Government Departments desiring to quote. Tender forms may also
be issued to Government owned procurement agencies free of
charge.
88.
Issue of tender forms on payment: Sufficient copies of
the tender enquiry should be available with the Cashier of the Chief
Purchase Officers Office for sale to prospective suppliers. Payment
for sale of tender forms will be accepted by them in cash or through
money orders and full address of the remitter shall be carefully noted
by them. All the above offices will return the unused copies of the
tender forms to the Purchase Section after expiry of the opening
date.
89.
Refunds of the cost of tender forms: The cost of
tender forms sold, is as a rule, not refundable and a note to this
effect should be given in the advertisement inviting tenders. Refunds
shall, however, be allowed for valid reasons, e.g., when a demand is
cancelled or retendered, except that refund shall not be made to
tenders whose offers do not qualify for gradation incases where
cancellation has been done after opening of the tender.
---------------------

DAO/FSD

58

CHAPTER XI

REGISTRATION OF FIRMS
90.
The Chief Purchase Officer (and the Principal Purchase
Officer for items of inter-Department use) shall act as the registration
authority for the registration of the firms dealing in stores purchased
by his Department.
Firms shall be eligible for registration subject to fulfillment of
the following conditions:(a)

The applicant should be registered with the Income Tax

Department, CCI & E, Registrar of Companies or
Registrar of Firms, as the case may be;

(b)

If an applicant desires registrations as manufacturer his

industrial undertaking should be duly recognized by the
Government. Manufacturers should possess adequate
capacity, testing facilities and have in employment
suitable technically qualified personnel.

(c)

The applicant should have a suitable office premise with

a signboard prominently displaying the name of the
organization.

(d)

The applicant should be financially sound and shall

produce a certificate from a scheduled bank certifying
that he can transact business for a minimum of Rs.5 lac
in a year.

(e)

Applicant should have proper postal/telegraphic address.

Post Box No. will not be acceptable as a proper address.

(f)

The applicant seeking registration as supplier of

machinery and electro medical equipment shall have
adequate workshop facilities for maintenance and shall
have in his employment suitably qualified personnel to
ensure satisfactory service.

(g)

The applicant desiring registration as supplier/

manufacturer of drugs and medicines shall have to get
himself registered under Drug Act and obtain
prequalification of performance from the Health
Department before applying for registration. The

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59

applicant shall have to be in regular business for at least

preceding three years for the store for which registration
is applied.
(1) Provided that the firms not pre-qualified by the
Competent Standardization Committee for the supply of
an item/store already standardized shall not be registered
for that particular store:
(2) Provided further that registration for the supply of an item
of store obtained by a firm from a department, which is
the major purchaser of that item, shall be deemed as
valid by other Department Purchasing the same item of
store.
91.
The supplier of stores of various descriptions handled by
the Department are registered under the following categories:(a)

Manufacturers.

(b)

Agents of foreign manufacturers.

(c)

Importers.

(d)

Stockiest and Agents of the Local manufacturers of

repute.

92.
The applicant desiring registration as Sole Agents of
foreign manufacturers shall submit a copy of Agency Agreement
alongwith a Certificate from the Embassy concerned. The
Registration shall be granted subject to renewal for a period of the
validity of the Agency Agreement and shall automatically stand
cancelled after the Agency agreement has been withdrawn.
93.
The application for registration shall be submitted on the
prescribed form at Annexure XXX to be obtained from the Cashier of
the Department on payment and shall be delivered by hand duly
completed in all respects and supported with documents indicated
therein and Treasury Challan of Rs.1,000/- for first five items and a
sum of Rs.2000.00 for each additional item (not refundable) under
the relevant receipt head of the department to be deposited in the
State Bank of Pakistan/Government Treasury. Registration shall be
granted in Form PR-XXXI:
94.
The approved contractor shall have to get his registration
renowned every year on payment of Rs.250/- as renewal fee. The
DAO/FSD

60

application shall be submitted by hand on the prescribed form

Annexure XXX, accompanied with Treasury receipt to be deposited
in the State Bank of Pakistan/Government Treasury under the
relevant receipt head of the department. The renewal shall be
granted subject to the fulfillment of the following conditions:(a)

The contractor has shown satisfactory performance

against the contracts placed on him in the preceding
years.

(b)

The contractor has regularly participated in tender

enquiries from time to time. In case the contractor has
not participated in tender enquiries issued for a particular
item in the preceding two years the renewal in respect of
that item of store may not be allowed.

(c)

The contractor has complied with the general

conventions and practices of trade as well as procedure
prescribed from time to time.

(d)

The contractor has not been found to have indulged in

corrupt ad fraudulent practices relating to the trade. In
such cases apart from refusal to renew the registration
the name of the contractor may be removed from the list
of registered firms or he may be black-listed or his
registration suspended for a period to be prescribed in
the suspension order.

95.
The registration fee and the renewal fee is subject to
revision from time to time.
96.
The Contractor should submit his renewal application in
the month of April every year and thereafter such applications shall
be received subject to payment of late fee of Rs. 250.00. No
application for renewal shall be entertained after the 31 st May and in
such cases the contractor shall have to consider himself as deregistered after expiry of his previous registration and as such
contractor shall have to seek fresh registration in accordance with
the prescribed procedure. As for the firms that have complied with all
requisite conditions, the intimation in respect to the renewal of
registration for the next financial year should be given to them latest
by 30th June each year.

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61

97.
Subject to its renewal the registration will be valid up to
30 June each year.
th

98.
Registered contractor may be black-listed, inter alia, for
the following reasons:(i)

Making false statements and allegations to gain undue

advantage.

(ii)

Commission of fraud.

(iii)

Commission of embezzlement, criminal breach of trust,

cheating, forgery, falsification or destruction of records,
receiving stolen property, false use of trade-mark,
securing fraudulent registration, giving false evidence
and furnishing of false information.

(iv)

Failure to make payments of outstanding dues including

any dues on account of contract placed at the risk and
cost of the contractor.

(v)

Professional misconduct i.e. failure to proceed with the

signed contract, withdrawal of the commitment, quoting
ridiculously lower rate and then withdrawing the offer and
not responding the written communication.

99.
The black-listing shall be for a specified period
commensurate with the seriousness of the cause. As a general rule,
the period shall not be less than three years. The black-listed firms
would be eligible for re-registration at the expiry of the prescribed
period unless it is determined by Registration Authority that blacklisting for an additional period is required in order to protect the
Government interest.
100. The firm may be removed from the list of registered
connectors for the following reasons:(i)

Submitting quotations knowing his incapacity technically

or financially, to meet the tender requirement.

(ii)

Repeatedly (at least on four consecutive occasions)

dispatching tender quotations late so that these reach
after the date and time of opening of tenders.

(iii)

Failure to quote in response to invitation to Tender on six

successive occasions.

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(iv)

Submission of four successive quotations all of which are

fifty per cent. Above the quotations ultimately accepted.

(v)

Failure to deposit renewal fee.

(vi)

Professional misconduct, i.e., failure to proceed with the

signed contract, withdrawal of the commitment, quoting
ridiculously low rate and then withdrawing the offer and
not responding to written communication.

(vii) Repeated failure to observe the instructions given in

tender forms including schedule thereto.
(viii) Failure to perform a contract(s) satisfactorily in
accordance with the contractual obligations where the
failure was in the opinion of competent authority due to
the exclusive fault of the contract.
(ix)

DAO/FSD

Failure to make payments of outstanding dues including

any dues on account of contract placed at the risk and
cost of the contractor.

63

CHAPTER XII
CASE REGARDING REFERENCE TO FINANCE
DEPARTMENT
101. Finance Department shall be consulted for all cases
falling in any of the under-mentioned categories:(i)

Purchases above the limit of Rs. 5 lacs if

(a)

the tendered rate exceeds the last purchase rate by

more than 10% in case of limited tender enquiry;

(b)

the rate exceeds the last purchase rate by more

than 20% in case of advertised tender enquiry.

(ii)

Where the previous purchase rate is not available and

where the total value of the proposed purchase exceeds
the limit of Rs. 3.00 lac;

(iii)

In cases where only one quotation is received and the

value of the purchase exceeds the limit of Rs. 3.00 lac;

(iv)

Where the value of total purchase in a negotiated deal is

above the limit of Rs. 3.00 lac;

(v)

All purchase against each foreign exchange, foreign

credits and barter deals where the estimated value of the
indent exceeds the limit of Rs. 1.00 lac.

102. Cases where indent value exceeds the limit of Rs. 30.00
lacs shall be examined by a Standing Purchase Committee
comprising of the following:(i)

Administrative Secretary concerned. (Convenor).

(ii)

Senior Purchase Officer (Member/Secretary).

(iii)

A representative of Finance Department not below the

rank of Deputy Secretary.

(iv)

Indentor concerned.
------------------

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PR-1

ANNEXURE-I

TIME SCHEDULE FOR PROCESSING OF INDENTS

1.

Target date of receipt of indent in the

office of Chief Purchase Officer.

31st August

2.

Reference to Senior Technical Officer

Two days

3.

Time schedule for scrutiny of

specification of indent by the Senior
Technical Officer and return of the
indent to the Senior Purchase Officer

Four to seven
days

4.

Period to be taken for deciding the

mode of purchase and issuance of
tender enquiry by the Senior
Purchase Officer

Four to nine
days

5.

Opening of tender & preparation of

comparative statement

Two to four
days

6.

Technical Scrutiny of offers by Senior

Technical Officer.

Seven to ten
days

7.

Formulation of purchase proposer.

Three to seven
days

8.

Concurrence of purchase proposal

by Finance Department where
necessary.

Seven days

9.

Issue of advance and final contract.

Three days for

advance A/T.
Seven days for
final contract.

Note:To avoid lapse of budget provision and other

complications in obtaining payments, the date of delivery
in case of local contracts should not be fixed beyond 25 th
DAO/FSD

65

June, save in exceptional circumstances, the reasons for

which should be recorded.
------------

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66

PR-2

ANNEXURE-II

CHIEF PURCHASE OFFICER------------- DEPARTMENT GOVERNMENT

OF THE PUNJAB

(Indent should be submitted in quadruplicate and should be

filed according to the instructions on pages 70, 71 & 72. Incomplete
or otherwise defective indents will be returned).
1. Indentors indent No. _______________date ________
2. Indentors designation and address _________________
3. Indentors telegraphic address_______ Telephone No.____
4. Accounts Officer to whom the cost of the stores with
departmental fees, where leviable is to be
debited_______________________________________
5. Head of account to which cost is debitable
_____________________________________________
6. Specify A.D.P. Scheme General Serial No.___________
7. Date
by
which
Stores
are
required
_____________________________________________
________________
8. Consignees
designation
__________________

and

address

9. Name of the Railway Station to which the Stores are to be

booked ____________________________________
10. Whether the stores are to be dispatched by
goods/passenger train or by air ____________________
11. Whether the stores are to be booked freight paid or to-pay
__________________________________________
12. Whether stores are to be booked at Railway or Owners
Risk__________________________________________
13. Special instructions, if any_______________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
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67

_____________________________________________
_____________________________________________
_____________
Important-Indentors must clearly specify whether the indented
stores are required for A.D.P. or Non-A.D.P. Scheme by scoring out
one not applicable.
Please see instruction No.

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68

14.

Item
No.

Particulars of stores demand.

Detailed description
to Stores

Signature of Indenting Officer

DAO/FSD

Specification No.
Drawing No. and
other particulars to
guide supply

Accountin
g Unit

Total
Quantit
y
require
d

ESTIMATED COST
Rate
per
unit

Total cost

Last
Contract No.
and Date

Space for use for

remarks by the
Office of the Chief
Purchase Officer

Signature of Senior Purchase Officer

69

(a)

FINANCIAL CERTIFICATE TO BE GIVEN WHERE

FUNDS ARE AVAILABLE:
(i)

I certify that the expenditure involved has received

the sanction of competent authority and that funds
are available under the proper head in the
sanctioned budget allotment of the indenting
department for the year_______

(ii)

Certified that the estimated cost of the stores given

in the indent is realistic and based on the current
market prices.
Signature of the Indenting Officer
________
OR

(b)

FINANCIAL CERTIFICATE TO BE GIVEN WHERE

EXPENDITURE IS TO BE INCURRED BEFORE
FUNDS ARE AVAILABLE:
(i)

I certify that the expenditure involved has received

the sanction of competent financial authority and
that I have been authorized by Government to
incur liability in respect of the stores indented for in
anticipation of funds being provided for the same.

(ii)

Certified that the estimated cost of the stores given

in this indent is realistic and based on the current
market prices.
Signature of the Indenting Officer

(c)

CERTIFICATE OF THE AVAILABILITY OF FOREIGN

EXCHANGE:
(i)

DAO/FSD

I certify that the Foreign Exchange required for the

purchase of stores indented for has been
authorized
by
the
competent
authority
______________ vide his letter No.____________
dated ___________ (copy enclosed) and is
debitable to the Foreign Exchange quota of

70

___________ allocated to him by Government for

the period ____________19;
(ii)

Certified that the estimated cost of the stores given

in this indent is realistic and based on the current
market prices.
Signature of the Indenting Officer

INSTRUCTIONS FOR FILLING THE INDENT FORM

1.
Indents must be submitted in quadruplicate and should
be clearly marked as original, duplicate, triplicate and quadruplicate.
2.
In case of spare parts, eight copies of the list of spares
should be sent with each indent showing spares of the different
machines.
3.
All the entries in the indent forms should be typed in
double space and not hand-written to avoid mistakes.
4.
Separate indents should be prepared for each type of
store and in no circumstances one indent should contain more than
ten items of similar nature excepting spare parts which should be for
one type of machine.
5.
If stores similar to the one previously purchased are
required a complete reference should be given to guide supply
6.
As far as possible standard specifications for different
stores available with department should be adopted and if
considered necessary prior consultation should be held. Where it is
not possible to adopt standard specification the Indenting Officer
should draw his specification and give full particulars of the store
required and enclose 25 copies of the same, together with the same
number of drawing where applicable with the indent for the guidance
of the tenderer.
7.
If the space provided for a particular store in the indent
under item 14 is not sufficient, continuation sheets on Form PR-II
should be attached.
8.
All additions and alterations or cutting in the indent
should be clearly installed by the Indenting Officer.

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71

9.
A specified date by which the stores are required should
be stated in the indent. Such terms as IMMEDIATE, AS EARLY
AS POSSIBLE, URGENTLY REQUIRED etc. should not be
bused.
10. Ordinarily it taken 3-4 months to place a contract
provided the indent received is complete in all respects. Another 3-6
months are required by the contractors for arranging supplies
depending upon nature of the stores. The indenting officer should,
therefore, keep these points in view while deciding the delivery date.
11. If the goods are insured or dispatched on Railway risk in
the event of any damage or loss the consignee will lodge with the
party concerned to make good his losses. In case the goods are not
insured or dispatched at owners risk the consignee will bear the
loss.
12. The estimated cost of the stores must be given which
should be as realistic as possible and should be based on the
current market prices.
13. Copies of Tender Invitation and Contract are invariable
endorsed to the indentors. Any mistake or discrepancy found therein
should be reported to the purchasing department within 3 days
failing which it will be presumed that the documents in question are
in order.
14. It takes considerable time to procure stores and to
ensure timely supply, the Indenting Officers should plan their
requirements well in advance of the actual date by which the stress
are required.
15. In accordance with Government decision, inspection of
stores will be carried out by the consignees or any other agency
specified in the contract.
16. According to Government instructions stores of
proprietary make will not ordinarily be demanded. Where it is
absolutely necessary to procure stores of specific make in
accordance with the Government directive, sanction of the
Department concerned should be obtained and attached to the
indent. In such cases, completed addresses of the manufacturers
and their agents together with full particulars of the stores and copy
of the catalogue relating thereto should be furnished with the indent.
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72

In the absence of such particulars the indent will not be accepted

unless the indenting officer, agree to accept similar stores which
should be indicated in the indent by inserting the words or similar.
17. Where imported goods are demanded either for direct
import or procurement of stores locally, Foreign Exchange has to be
provided and the certificate at Serial No. (15)(c) regarding
availability of Foreign Exchange must, therefore, be signed. In the
absence of such certificate, procurement will not be arranged even
though budget provision in Pakistan currency may exist.
18. According to Government instructions even in the case
of stores manufactured in the country where imported raw material
is used Foreign exchange has to be provided to the extent of the
value of imported raw material used. The amount of Foreign
Exchange to be provided will vary from store to store. In such cases
on the average Foreign Exchange at 60% of the estimated value of
the store must be provided.
19. On receipt of stores the consignee shall furnish to the
contractor Receipt Certificate promptly and in any case it should not
be delayed beyond 15 days of the receipt of the store.
20. Any claims for damages arising out of the contracts
finalized by the Chief Purchase Officer against the indents shall
have to be satisfied by the Indentor and will be the responsibility of
the Indenting Department to make available necessary funds for the
satisfaction of the claims or payment of damages.

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73

PR-3

ANNEXURE-III

CHIEF PURCHASE OFFICER --------------- DEPARTMENT

GOVERNMENT OF THE PUNJAB
SEALED SAMPLE
Indentors Name_______________________________________
Indent No. and Date ____________________________________
Store _________________________________________
Receive from _________________________________________
Signature of Indentor
____________________________________________________
Chief Purchase Officers No._____________________________
Remarks ____________________________________________
____________________________________________________
Signature of Inspection Authority

Signature of Purchase Officer

----------------

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PR-4

ANNEXURE-IV

CHIEF PURCHASE OFFICER --------------- DEPARTMENT

GOVERNMENT OF THE PUNJAB
PROGRESS SHEETS OF INDENT
File No._________

Indent No_____________

Sections _____________

A.T. No._______________

1. Name of Indentor __________________________________

2. Brief Description of Stores ___________________________

Date Page/C,
and N.
3. Indent received in Deptt. on
4. Tender Invitation issued on
5. Tender opening date extended up to
6. Tender Invitation scrapped on
7. Tender Invitation re-issued on
8. Tender opening on and placed at
9. Comparative statement prepared and
purchase proposed submitted on
10. Purchase finalized on
11. A/T issued on
12. L/C request/import Licence
application made on
13. L/C established/Import Licence
issued on
14. Original delivery date

DAO/FSD

Remarks
by Officer

75

15. 1st D.P., extended on and up to

16. 2nd D.P. extended on and up to
17. 3rd D.P. extended on and up to
18. 4th D.P. extended on and up to
19. Supply of stores

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76

Date

Quantity
tendered
to
inspection

2.

Quantity
accepted

Quantity
out
standing

Date

Quantity
despatched

Date on
which
received by
consignee

Page
No.
C&N

PF
Mark by
Officer

Contract completed on
---------------PART II

(APPLICABLE TO CONTRACT FOR IMPORTED STORES)

Shipment on

Date

Page/
C&N

Remarks
by Officer

Expected arrival of steamer at the part on

Contract completed on

Seen and checked by

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77

DAO/FSD

78

PR-5
GOVERNMENT OF THE PUNJAB, LAHORE

S. No.

Indentor
s Name

No. and
date
(Indicate if
ADP)

Date on
which
referred
to STO

Date on
which
cleared
by STO

Date on
which
referred to

12

13

14

DAO/FSD

ANNEXUERE - V

Description
of store

Estimated
Value of
indent

Date of
receipt in
the
Department

Date on
which
indent
passed on
to STO for
technical
check up

Date on

No. and
date of
contract
passed

Name of
contracted
firm

Value of
contract

15

16

17

18

Date on
which
cleared
by STO

Date of
which
passed to
Purchase
Section.

Tender
invitation
issued on

Tender
opened on

10

11

L/C
status

Original
delivery
date

Delivery
date
extended

Contract
completed
on

Remarks
by
officer
(supply
position)

19

20

21

22

23

79

PR-6

ANNEXURE-VI
PROPRIETARY CERTIFICATE (FORM-A)
(In Case where there is only one manufacturer)

Certified that the stores indented, vide Indent

No. _____________ dated _______________ required for use in the
office of__________________ is of proprietary nature of M/s
______________ and is manufactured only by the firm and its
acquisition/procurement is vital to the work of respectively specialty;
and as such the item/items may be procured from the nominated
firm/agent in Pakistan, namely M/s.____________________________
(full address). It is further certified that stores of similar or comparable
specifications and quality are neither being manufactured by any other
firm nor will serve the purpose.

Signature of Administrative Secretary

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80

PR-7

ANNEXURE-VII
___________
BOOK POST

Stamp
___________

Form Chief Purchase Officer __________________________

Department________________________________________
Government of the Punjab,
Lahore____________________________________________
____________________________________________

Invitation to Tender No

(Due on)

Dear Sir/Sirs,
Your are hereby invited to submit your tender for the stores as
detailed in the Schedule to this invitation to Tender subject to the
conditions laid down in PR-IX and those mentioned hereunder and
given in the Schedule. The contract resulting from this Invitation to
Tender shall be governed by the general Conditions of Contract as
contained in PR-XX and the special Conditions contained in PR-XXI,
XXII & XXIII wherever applicable. The tenderer quoting against this
invitation to tender shall be deemed to have read and understood
the conditions thereof and particulars of the store required and their
specifications, etc.
2.
The tenderer shall quote on the prescribed schedule to
this invitation to tender, on the basis indicated therein and shall sign
the certificate given therein to the effect that the stores shall be
supplied exactly in accordance with the requirement specified in the
Schedule. In case there is any deviation it should be clearly stated
by tenderer otherwise it will be presumed that offer is strictly in
accordance with the requirement of the tender noted.
3.
In the case of C&F/F.O.B. offers the price should be
quoted in Pound Sterling/US. Dollar indicating also the equivalent
price in Pakistan currency and shall be inclusive of all charges, i.e.,
DAO/FSD

81

packing, marking handling, etc. Pacing shall be fit for safe transit of
store by road, rail and sea.
4.
In the case of C&F/F.O.B. offers, the tenderer shall
indicate --(a)

the percentage of commission included in the,

C&F/F.O.B. price which shall be paid in convertible
Pakistan currency;

(b)

name of the Principals and the Beneficiary in whose

favour the Letter of Credit will be opened;

(c)

the country of origin; and

(d)

the place where the store will be offered for inspection.

No change in the above particulars shall be allowed except in

special circumstances at the discretion of the purchaser.
5.
In the case of offers for supply of stores both imported
and indigenous from within the country price quoted shall be
inclusive of all taxes, duties and charges for packing, marking,
handling, etc., where sales-tax is leviable and is included in the price
quoted it shall be indicated separately.
6.
Offer for supply of stores subject to prior sale shall not
be entertained.
7.
The store is required for delivery/shipment as stated in
the Schedule. If, however, it is not possible to give delivery/shipment
by the specified the tenderer shall give guaranteed date by which he
can deliver/shipment the store.
8.
Failure to submit the tender in the manner prescribed in
the invitation to Tender will render it liable to be ignored.
9.
The purchaser does not pledge himself to accept the
lowest tender and reserves to himself the right of accepting the full
or part quantity offered and the tenderer shall supply the same at the
rate quoted. The tenderer is at liberty to quote for the full or part
quantity.
Yours faithfully,

DAO/FSD

82

for and on behalf of

Governor of the Punjab
Copy to:The
____________________________________________
with reference to his Indent No______________ date____________
He is requested to intimate within 5 days of receipt of this
endorsement any discrepancy in the invitation to tender failing which
it will be presumed that the same is in order and in accordance with
his requirements.
2.
Senior Technical Officer: He is requested to point out
within 5 days of receipt of this endorsement if there is any
discrepancy in the particulars of stores/specification given in the
Schedule railing which it will be presumed that the same are in
order.
Yours faithfully,

for and on behalf of

Governor of the Punjab
-----------

DAO/FSD

83

PR-8

ANNEXURE-VIII

PROFORMA TENDER
ENQUIRY FOR PURCHASE ON FREE DELIVER TO
CONSIGNEE BASIS SCHEDULE INVITATION
TO TENDER NO

Date of opening_____________________________________
Time of Receipt_____________________________________
Delivery period_____________________________________
Note: Please read the following note and instructions
carefully:Any offer not received as per terms and conditions of the
tender. Enquiry is liable to be ignored. No offer shall be considered
if-(i)

received without earnest-money from unregistered firm

or from a firm not registered for the items mentioned in
this tender;

(ii)

it is received after the time and date fixed for its receipt;

(iii)

the tender is unsigned;

(iv)

the offer is ambiguous;

(v)

the offer is conditional;

(vi)

the offer is from a firm, blacklisted, suspended or

removed from the approved list;

(vii) the offer is received by telegram;

(viii) offer received with shorter validity than required in the
tender enquiry; and
(ix)

the offer is for store not conforming to specifications

indicated in the tender enquiry.

2.
Offers will remain valid for ___________ days from the
date of opening the tender.
3.
All tenders must be submitted in double cover. The outer
cover should indicate the name of the addressee, tender number
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84

and date of opening but not the name of the firm which must appear
in the inner envelope clearly mentioning tender number and name of
the firm. The envelope must be properly sealed.
4.
The purchaser reserves the right to purchase full or part
of the store or ignore/scrap/cancel the tender without assigning any
reasons.
5.
(a) If the acceptance of tender issued during the validity
period of the offer is not accepted by the tenderer, the EarnestMoney shall be forfeited and the store purchased at his risk and
expense.
(b) In case the offer is withdrawn, amended or revised
during the validity period of the offer, the Earnest-Money is liable to
be forfeited.
(c) In case, the contractor fails to execute the contract
strictly in accordance with terms and conditions laid down in the
contact the security deposited by him shall be forfeited and the store
purchased at his risk and expense.
6.
The buyer reserves the right to claim compensation for
the loss caused by the delay in the delivery of store.
SPECIAL INSTRUCTIONS
1.
The store is required by the consignee by___________.
However, the tenderers are required to indicate their own
guaranteed earliest date by which the store will be supplied by them.
2.
Tenderers must quote on the prescribed invitation to
Tender Form PR-VII in limited tender as well as in advertised tender.
Cash Receipts (in original or photo copy) in token of have
purchased the tender, must accompany the offer.
3.
Punjab.

Tender should be addressed to Government of the

4.
Tenderers should quote their firm and final rates both in
words as well as in figures.

DAO/FSD

85

5.
Tenderers who are not registered for the specified store
shall submit a deposit at Call of the amount of Rs.__________ in
favour of the Chief Purchase Officer.
6.
The successful tenderer may be required to furnish
security deposit up to 10% in the form of deposit at call in favour of
Chief Purchase Officer (designation only) within the period specified
in Advance Acceptance of Tenderers failing which repurchase shall
be made at their risk and expense.
7.
Against Indigenous stores Tenderers who are
manufacturers must indicate name and address of the works In
Pakistan from where they intend to supply the store. Other than
manufacturers tenderers must enclose certificate from their
manufacturer as under, failing which the offers shall be ignored -This is to certify that M/s. _______________ have
obtained quotation from us against invitation to
Tender No._________ due on ______________ and we
have agreed to supply/manufacture the said stores
strictly in accordance with the specification laid down in
the said invitation to Tender.
8.
Any conditional, ambiguous or incomplete offer in any
respect shall be ignored. No supplementary or revised offer after the
opening of tenders shall be entertained.
9.
The tenderers should indicate in their tenders, the
complete address or the place/places where stores will be offered
for inspection.
10. The tenderers shall enclose catalogues/leaflets/literature
and other technical data, if any, in respect of store offered by them.
11. The tenderers should specifically indicate their G.I.R.
No. and circle of the Income-Tax Department.
12. Any erasing/cutting/crossing etc. appearing in the offer,
must be properly signed by the person signing the tender. Moreover,
all pages to the tender must also be properly signed. Offers with any
overwriting shall in no circumstances be accepted.
13. The quotation should be submitted on the basis of
accounting unit specified in the invitation to tender.
14.
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(a) A certificate should be given by the tenderers that they

will be responsible for the free replacement of stores if the same is
found to be substandard and/or at variance with the specification
given in the tender enquiry. In case a SIMILAR store offered is at
variance with the specification given in the tender enquiry, the
tenderers must clearly identify variations in their offers. Store offered
of specifications superior to the one specified in the tender enquiry
shall, however, be acceptable.
(b) In case indigenous store is offered as a store similar to
that specified in the Tender Enquiry the tenderers shall, within seven
days of the opening of the tender, have the said stores, wherever
possible, pre-inspected by the Inspection Wing at their own cost.
(c) Where offers have been invited for specified brands,
offers for other brands shall not be acceptable.
15.
packing.

Store should be brand new and in original manufacturers

16. One/two years free service and supply of spare parts on

permanent basis must be guaranteed.
17. Tender samples where needed should be submitted by
the tenderers along with their offers. Bulky samples should be
delivered at the time of the opening of the tenders, failing which the
offer shall not be entertained.
18. The store is required as per indentors sealed sample
No.____________ which is available with purchaser in the
office________________________ and can be seen during officer
hours.
19.
(i)

In case of spare parts of imported origin -A certificate should be given by the tenderers that the
spare parts shall be genuine, brand new and in the
original packing of the manufacturer.

(ii) A certificate should be given by the tenderers that they

will be responsible for free replacement of parts if not
found suitable for the engine, machinery or its ancillary
equipment or demand.
(iii) Manufacturers name, in whose packing the spares will
be offered for inspection, must be given in the offer.
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(iv) Import documents shall be produced at the time of

inspection to ensure that stores offered for inspection
are imported brand new and in the original packing of
the manufacturer.
(v) The tenderer should undertake that the security may be
forfeited if they fail to furnish the import documents on
inspection as at (iv) or to the purchase of store at their
risk and expense.
(vi) Par No. and nomenclature of each item must be given in
the quotations as per particulars contained in the tender
enquiry. In case superseded parts Nos. are offered,
manufacturers certificate or parts catalogue shall be
produced in support of the offer made by them.
(vii) 100% payment will be allowed on receipt of inspected
and accepted store by the consignee who shall return
the Inspection Notes to the authorized representative of
the firm duly receipted within a period of 10 days.
20. Testing charges of sample/samples against the
tender/advance bulk supplies will be borne by the tender/contractor
irrespective of the result of the sample /samples.
CERTIFICATE
1.
We hereby confirm to have read carefully the description
of stores and all the terms and conditions of your tender enquiry
No.____________ due for opening on _____________ for the
supply of _____________ in additions to the conditions laid down in
PR-XX and PR-XXI-XXIII and also all the special instructions
attached to the said tender enquiry. We agree to abide by all those
instructions/conditions.
2.
We also hereby categorically confirm that the stores
offered by us are exactly of the particulars and specifications as laid
down in your tender enquiry in all respects.
3.
The stores offered by us are of (a) foreign origin or (b)
local origin.
4.
We accept that if the required Earnest-Money is not
furnished or our offer is found lacking in any of the requirement of
your tender enquiry, it shall be ignored.

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5.
We hereby confirm to adhere to the delivery period
required in the tender enquiry which would be the essence of the
contract and which will be strictly adhered to by us. In case of failure
we agree unconditionally to accept the recovery of belated damages
on supplies at 2% per month or part thereof.
6.
Certified that the prices quoted to the Deptt. against
Tender No.________________ are not more than the prices
charged from any other Purchasing Agencies in the country and in
case of any discrepancy, the tenderer hereby undertakes to refund
the price charged in excess. Form PR-VII duly filled in and signed is
enclosed.
Name of Tenderer .
Signature of Tenderer ..
Designation
Seal .
Witness
(a) Name Signature.
(b) Full Address .
(c) Date ..
---------------

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PR-8-A

ANNEXURE-VIII-A
PROFORMA TENDER

ENQUIRY FOR PURCHASE AGAINST AID/LOAN/BARTER

Schedule to invitation to tender No.____________________
Date of opening_____________________________________
Date of receipt _____________________________________
Delivery period _____________________________________
Note: Please read the following note and instructions
carefully:1.
Any offer not received as per terms and conditions of
enquiry is liable to be ignored.
2.
Offers will remain valid for _______________ days from
the date of opening.
3.
Rates should be quoted on C&F Karachi/Lahore Dry
Prot basis.
4.
All tenders must be submitted in double cover. The outer
cover should indicate the name of the addressee, tender number
and date of opening but not the name of the firm, which must appear
in the inner envelope clearly mentioning tender number and name of
the firm. The envelopes must be properly sealed.
5.
The Purchaser reserves the right to purchase full or part
of the store or ignore/scrap/cancel the tender without assigning any
reasons.
6.
(a) If the acceptance of tender issued during the validity
period of the offer is not accepted by the tenderer, the EarnestMoney shall be forfeited and the stores purchased at his risk and
expense.
(b) In case the offer is withdrawn or amended during the
validity period of the offer and/or if the acceptance of tender issued
during the validity period of offer is not accepted by the tenderer, the
Earnest-Money is liable to be forfeited.

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(c) In case the contractor fails to execute the contract strictly

in accordance with the terms and conditions laid down in the
contract, the security deposited by him shall be forfeited and the
stores purchased at his risk and expense.
7.
The buyer reserves the right to claim compensation for
the loss caused by the delay in the delivery of stores.
8.
All contracts shall be valid subject to the opening of
Letter of Credit.
SPECIAL INSTRUCTIONS
1.
The store is required by the consignee on
____________ The tenderers are, however, required to indicate
their own guaranteed earliest date by which the store will be shipped
by their Principals abroad.
2.
Tenderers must quote on the prescribed invitation to
Tender Form PR-VII Cash Receipt (in original, or photo copy) in
token of having purchased the tender, must accompany the offer.
The Tender Form PR-VIII shall be signed by the authorized
representative of the tenderer and returned with their quotation;
otherwise the offer will be ignored.
3.
Tender should be addressed
Officer_________________ Department.

to

Chief

Purchase

4.
The rates should be quoted (a) both in words as well as
in figures (b) in foreign exchange as well as in Pakistan Currency,
(c) as the firm and final rates should be quoted on C&F Karachi
basis separately inclusive of Agency Commission. Freight from
Karachi to Lahore Dry Port shall be mentioned in their offer
separately. The firm should particularly confirm that their
commission will be acceptable to them in Pakistan Currency, (d) all
quoting firms are required to indicate exchange rage prevailing at
the time of submission of offers.
5.
Tenderers who are not registered for the particular store
mentioned shall submit a Deposit-at-Call of the amount of
Rs.____________ in favour of Chief Purchase Officer,
_______________ Department, Government of the Punjab, Lahore.
Earnest-Money or Security already available shall not be considered

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unless a certificate from the concerned Purchase officer is attached

certifying that the said Earnest-Money or security is free. The
tenderer must attach this certificate otherwise the offer shall be
treated as without Earnest-Money and ignored.
6.
(a) The successful tenderer may be required to furnish
Security Deposit up to 10 per cent. in the form of Deposit-at-Call in
favour of Chief Purchase Officer ___________ Department, which
will be refunded/returned to the tenderer after satisfactory
completion of the contract within the period specified in the Advance
Acceptance of Tender, failing which repurchase shall be made at
their risk and expense; or (b) The Principals may be required to
furnish a performance bond in foreign exchange up to 10 per cent of
the C&F value of the contract.
7.
Tenderer shall clearly indicate the name and full address
of their Principals in whose favour L.C. shall be opened.
8.
Tenderer must submit proforma invoice in original form
their Principals duly signed clearly indicating the name of
manufacturer and country of origin. In case of manufactured goods,
photo copies of proforma invoice shall not be considered. The offer
will be accompanied with a certificate as under:
This is to certify that M/s. _______________ have obtained

quotation from us against Invitation to Tenderer No.___________

due on ___________________ and we have agreed to
supply/manufacture the stores strictly in accordance with the
specification laid down in the said Invitation to Tender.
9.
Any conditional/ambiguous or cabled/incomplete offer, in
any respect, shall be ignored. No supplementary or revised offer
after the opening of tenders shall be entertained.
10. Tenderers should indicate complete address of the
place/places where store will be offered for inspection.
11. Tender should enclose their Principals catalogue/
leaflet/literature and other technical data, if any, in respect of store
offered by them.
12. Tenderers should specifically indicate their G.I.R. No. of
the Income Tax Department indicating their respective circle
alongwith Import and Export Registration No. and date.

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13. Any erasing/cutting/crossing, etc., appearing in the offer

must be properly signed by the person signing the tender. All pages
of the tender must be properly signed. Offers with any overwriting
shall in no circumstances be accepted.
14. The quotation should be submitted on the basis of
accounting unit specified in the invitation to tender.
15. A certificate should be given by the tenderers that they
will be responsible for free replacement of store if the same is found
to be sub-standard and/or at variance with the specifications given
in the tender enquiry. In case a Similar store offered is at variance
with the specifications given in the tender enquiry, the tenderers
must clearly identify the variations in their offer. Store offered of a
specification superior to the one specified in the tender enquiry
shall, however, be acceptable.
16. Store of similar specifications from other sources/
origins/countries will also be acceptable if permitted by the
applicable protocol. The tenderer should ascertain in advance the
source of supply eligible under the terms of the Aid/ Loan/ Barter/
Credit before submitting any offer.
17. One/two years free service be given and supply of spare
parts on the permanent basis must be guaranteed. In case of
automobiles and other machinery, Instruction Book with Tool Kit
must be supplied.
18. Store should be brand new and in original manufacturers
packing. In case of automotive vehicles, it should be in road-worthy
condition accompanied with spare wheel, standard accessories and
tools.
19. Tender sample should accompany the offer where
applicable.
20. The store is required as per Indenting Officers sealed
sample No.______________ photo-type No. which is available in
the Office of the chief Purchase Officer _____________
Department.
21. Insurance cover will be provided through M/s. National
Insurance Corporation. The successful tenderers shall pay
insurance in advance in full on prevailing premium rates at he time
of shipment of the store, to the National Insurance Corporation
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which will be claimed by them at actual immediately on issuance of

Insurance Cover. The respective payment office will make payment
on submission of Insurance Premium receipt and non-negotiable
shipping documents in proof of shipment of stores.
22. While quoting please ensure that no banned item is
included in the quotation because such items are not to be included
in the contracts.
23. In case of placement of order, if the bank to bank
confirmation in respect of Letter or Credit is required the bank
charges will be to the suppliers account. Such confirmation shall be
adjusted against the relevant Letter of Credit.
24.
(i)

In Case f spare parts of imported origin -a certificate should be given by the tenderers that the
spare parts shall be genuine, brand new and in the
original packing of the manufacturer;

(ii) a certificate should be given by the tenderers that they

will be responsible for free replacement of parts; if not
found suitable for the engine, machinery or its ancillary
equipment or demand;
(iii) manufacturers name, in whose packing the spares will
be offered for inspection, must be given in the offer;
(iv) import documents shall be produced at the time of
inspection to ensure that stores offered for inspection
are genuine, brand new and in original packing of the
manufacturer;
(v) the tenderer should undertake that the security may be
forfeited if they fail to furnish the import documents on
inspection as at (iv) or to the purchase of store at their
risk and expense;
(vi) Part No. and nomenclature of each item must be given
in the quotation as per particulars/conditions contained
in the tender enquiry. In case superseded parts Nos. are
offered manufactures certificate for parts catalogue shall
be produced in support of the offer made by them.

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CERTIFICATE
We hereby confirm to have read carefully the description of the
store and all the terms and conditions of your tender enquiry
No.____________ due for opening on _________________ down in
PR-XX to XXIII amended to date and all the special instructions
attached to the said tender enquiry. We agree to abide by all those
instructions/conditions.
2.
We also hereby categorically confirm that the store
offered by use is exactly to the particulars and specification as laid
down in your tender enquiry in all respects.
3.

The stores offered by us are of imported origin.

4.
We accept that if the required earnest-money is not
furnished or our offer is found lacking in any of the requirements of
your tender enquiry, it shall be ignored.
5.
We hereby confirm to adhere to the delivery period
specified in the tender enquiry which would be the essence of the
contract and which will be strictly adhered to by us. In case of
failure, we agree unconditionally to accept the recovery of liquidated
damages on belated supplies at 2 per cent. per month or part
thereof.
6.

PR-VII duly filled in and signed is enclosed.

Name of Tenderer ...

Signature of Tenderer..
Designation ..
Seal
Witness
(a) Name Signature.
(b) Full Address .
(c) Date .

--------------------

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PR-8-B

ANNEXURE-VIII-B
PROFORMA TENDER
ENQUIRY FOR PURCHASE ON C&F BASIS

Schedule to invitation to Tender No.___________________

Date of opening ____________________________________
Date of receipt ____________________________________
Delivery period _____________________________________
Note: Please read the following notes and instructions
carefully:
Notes
1.
Any offer not received as per terms and conditions of
enquiry is liable to be ignored.
2.
Officers will remain valid for ____________ days from
the date of opening.
3.
Rates should be quoted on C&F Karachi/Lahore Dry
Port basis.
4.
All tenders must be submitted in double cover. The outer
cover should indicate the name of the addressee, tender number
and date of opening but not the name of the firm, which must appear
in the inner envelope clearly mentioning tender number and name of
the firm. The envelopes must be properly sealed.
5.
The purchaser reserved the right to purchase full or part
of the store or ignore/scrap/cancel the tender without assigning any
reasons.
6.
(a) If the acceptance of tender issued during the validity
period of the offer is not accepted by the tenderer, the EarnestMoney shall be forfeited and the stores purchased at his risk and
expense.
(b) In case the offer is withdrawn, amended during the
validity period of the offer, the Earnest-Money is liable to be
forfeited.
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(c) In case the contractor fails to execute the contract strictly

in accordance with the terms and conditions laid down
in the contract, the security deposited by him shall be forfeited and
the store purchased at his risk and expense.
7.
The buyer reserves the right to claim compensation of
the loss caused by the delay in the delivery of store.
8.
of Credit.

All contacts shall be valid subject to the opening of Letter

SPECIAL INSTRUCTIONS

1.
The store is required by the consignee by ________The
tenders are, however, required to indicate their own guaranteed
earliest date by which the stores will be shipped by their Principals
abroad.
2.
Tenderers must quote on the proscribed invitation to
Tender form PR-VII Cash Receipt (in original, or photo copy) in
token of having purchased the tender, must accompany the offer.
Form No. PR-VII duly signed by the authorized representative of the
tenderer must accompany with their quotation, otherwise the offer
will be ignored.
3.
Tender should be addressed to Chief Purchase Officer,
___________ department, Government of the Punjab Lahore.
4.
The rates should be quoted (a) both in words as well as
in figures (b) in foreign exchange as well as in Pakistan currency, (c)
as the firm and final rates on C&F Karachi basis separately inclusive
of agency commission. Freight from Karachi to Lahore Dry Port in
Pakistan currency shall be mentioned in their offer separately. The
firm should particularly confirm that commission will be acceptable to
them in Pakistan Currency, and (d) all quoting firms are required to
indicate exchange rate prevailing at he time of submission of offers.
5.
Tenderers who are not registered for the particular store
mentioned in the tender enquiring are required to furnish earnestmoney in the form of Deposit-at-Call of the amount of
Rs.___________ in favour of Chief Purchase Officer, ____________
Department, Government of the Punjab.
6.

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(a) The successful tenderer may be required to furnish

security Deposit up to 10% in the form of Deposit-at-Call in favour of
Chief Purchase Officer __________ Department, Government of the
Punjab, Lahore (by designation only) which will be
refunded/returned to the tenderer after satisfactory completion of the
contract within the period specified in the Advance Acceptance of
Tender, failing which repurchase shall be made at their risk and
expense, or
(b) The Principals may be required to furnish a performance
bond in foreign exchange up to 10% of the C&F value of the
contract.
7.
Tenderers must submit proforma Invoice in original from
their Principals duly signed, clearly indicating the name of
manufacturer and country of origin, alongwith a certificate as under
from their Principals authorizing them to quote on their behalf in
case of manufactured goods. Photocopies of the Proforma Invoice
shall not be considered:
This is to certify that M/s___________________ have
obtained quotation from us against Invitation to Tender
No._______________ due on ______________ and we
have agreed to supply/manufacture the stores strictly in
accordance with the specifications laid down in the said
Invitation to Tender.
8.
Any conditional/ambiguous or cabled incomplete offer, in
any respect, shall be ignored. No supplementary or revised offer
after the opening of tenders shall be entertained.
9.
Tenderers should indicate complete address of the
place/places where store will be offered for inspection.
10. Tenderer shall clearly indicate the name and full address
of their Principals in whose favour L.C. shall be opened.
11. The Tenderers should enclose their Principals
catalogue/leaflet/literature and other technical data, if any, in respect
of store offered by them.
12. The Tenderers should specifically indicate their G.I.R.
No. of the Income Tax Department indicating their respective circle,
alongwith Import and Export Registration No. and date.

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13. Any erasing/cutting/crossing, etc. appearing in the offer,

must be properly signed by the person signing the tender. All pages
of the tender must be properly signed. Offers with any overwriting
shall in no circumstances be accepted.
14. The quotation should be submitted on the basis of
accounting unit specified in the Invitation to Tender.
15. The store should conform to the specifications number,
catalogue number and Drawing number, if any, specified in the
tender enquiry.
16. A certificate should be given by the tenderers that they
will be responsible for free replacement of store if the same is found
to be sub-standard and/or at variance with the specifications given
in the tender enquiry. In case a similar store offered is at variance
with the specifications given in the tender enquiry, the tenderers
must clearly identify the variations in their offer. Store offered of a
specification superior to the one specified in the tender enquiry
shall, however be acceptable.
17. One/two years free service and supply of spare parts on
the permanent basis must be guaranteed. In case of automobiles
and other machinery, Instruction Book within Tool kit must be
supplied.
18. The store should be brand new and in original
manufacturers packing. In case of automotive vehicles, it should be
in road-worthy condition accompanied with spare wheel, standard
accessories and tools.
19. Tender sample should accompany the offer where
applicable.
20. The store is required as per sealed sample
No.____________ Prototype No. with Sr. Chief Purchase Officer
and, can be seen during the office hours.
21. Insurance cover will be provided through M/s. National
Insurance Corporation. The successful tenderers shall pay
insurance in advance in full on prevailing premium rates, at eh time
of shipment of the store, to the National Insurance Corporation
which will be claimed by them at actual immediately on issuance of
Insurance Cover. The respective payment office will make payments

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on submission of Insurance Premium Receipt and non-negotiable

shipping documents in proof of shipment of store.
22. While quoting please ensure that no banned item is
included in the quotation because such items are not to be included
in the contracts.
23.

In case of spare parts of imported origin --

(i)

certificate should be given by the tenderers that the

spare parts shall be genuine, brand new and in the
original packing of the manufacturer. The original
proforma invoice and warranty from the manufacturer
must accompany the offer:

(ii)

certificate should be given by the tenderers that they will

be responsible for free replacement of parts; if not found
suitable for the engine, machinery or its ancillary
equipment or demand;

(iii)

manufacturers name, in whose packing the spares will

be offered for inspection, must be given in the offer;

(iv)

offer from shipper shall be acceptable only if

accompanied by a certificate of warranty and certificate
from the original manufacturer;

(v)

that they agree to supply the spare parts against the

specific tender enquiry;

(vi)

Part No. and nomenclature of each item must be given

in the quotation as per particulars conditions contained
in the tender enquiry. In case superseded parts Nos. are
offered manufacturers certificate for parts catalogue
shall be produced in support of the offer made by them.

24. Testing charge so the tender advance/bulk supplier will

be borne by the tenderer/contractor irrespective of the result of the
sample/samples.
25 to 28 deleted
CERTIFICATE
We hereby confirm to have read carefully the description of the
store and all the terms and conditions of your tender enquiry
No.____________ due for opening on _______________for the

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supply of _____________ in addition to the conditions laid down in

PR-XX to XXIII amended to date and all the special instructions
attached to the said tender enquiry. We agree to abide by all those
instructions/conditions.
2.
We also hereby categorically confirm that the stores
offered by us are exactly of the particulars and specification as laid
down in your tender enquiry in all respects.
3.

The stores offered by us are of imported origin.

4.
We accept that if the required Earnest-Money is not
furnished or our offer is found lacking in any of the requirements of
your tender enquiry, it shall be ignored.
5.
We hereby confirm to adhere to the delivery period
required in the tender enquiry which would be the essence of
the conduct and which will be strictly adhered to by us. In case of
failure, we agree unconditionally to accept the recovery of liquidated
damages on belated supplies at 2% per month of part thereof.
6.

PR-VII duly filled in and signed in enclosed.

Name of Tenderer ...

Signature of Tenderer
Designation .
Seal
Signature

Witness
(a)

Name ..

(b)

Full Address

Dated ______________

------------------

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PR-9

ANNEXURE-IX

CONDITIONS FOR THE SUBMISSION OF TENDERS

1.

The Purchaser is the Governor of the Punjab.

2.
The Inspection Authority will be one s specified in the
contract resulting from this tender.
3.
The tenderer shall quote his firm and final price in
Rupees, or Pounds Sterling or Dollars for each item separately
inclusive of standard packing on F.O.B/C&F basis for the unit
specified in the invitation to Tender and shall indicate separately in
full commission included in the C&F Quotation which shall be paid in
Rupees (Non-Convertible) on receipt of goods by the consignee or
as per stipulations in the contract.
4.
For imported and/or indigenous goods offered ex-stock
in Pakistan, the tenderer shall quote: firm and final price for each
item separately inclusive of packing in Rupees on free delivery to
consignee basis, exclusive of Sales Tax.
5.
For indigenous goods not in stock, the tenderer shall
quote firm and final price for each item separately inclusive of
Packing in Rupees on free delivery to consignee basis exclusive of
packing in Rupees on free delivery to consignee basis exclusive of
Sales Tax. In case the tenderer desires any assistance for the import
of any materials for the manufacture and supply of goods offered he
shall indicate the minimum amount of net foreign exchange required
for this purpose, in the form of a percentage of his prices.
6.
The quotation shall be submitted for the unit as specified
in the Invitation to Tender.
7.
The conversion of prices quoted in foreign currencies
shall be done at the official rate of exchange as adopted by the
Government of Pakistan and not at any other rate.
8.
The prices in case of local contracts shall mean Free
Delivery to Consignee without any additional charge.
9.
The insurance of goods shall be done with Insurance
Company registered in Pakistan through the Pakistan Insurance
corporation and the insurance charges shall be paid in rupees. The
value for the purpose of insurance shall be 10% more than the value

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of goods in the contract. Insurance shall be done wherever

applicable.
10. The tenderers shall quote their minimum guaranteed
delivery period with a programme of part shipment delivery, if
possible.
11. The tenderer shall keep his quotation valid for
acceptance up to 30 days from the date of opening of tender unless
otherwise specified.
12. The Conditions of Contracts in PR-XX as amended to
date, shall apply to all the contracts placed by the Chief Purchase
Officer, Lahore, but in case of plant/machinery the Conditions of
Contracts PR-XX and PR-XXIII as amended to date, shall apply.
13. The successful tenderer shall furnish at the option of the
Purchaser security deposit or Bank Guarantee or both up to 10% of
the value of the contract for the satisfactory completion of the
contract without any interest being charged on it.
14. The tenderer, shall furnish with his quotation complete
particulars, specification and drawing, makers technical features,
guarantees and warranty of the goods offered by him. The
instruction books and spare parts list shall be provided, by the
successful tenderer, if so, required by the Purchaser.
15. The tenderer shall furnish complete information and
particulars as specified in the Invitation to Tenderer.
16. The successful tenderer for plant and machinery shall
furnish particulars of the spare parts and his servicing organizations
in Pakistan.
17. The packing of the goods shall be suitable for transport
by Sea, Rail, Road and Air, unless other packing is specifically
required in the Invitation to Tender. The cost of packing shall always
be included in the price.
18. Tender samples are not required to be submitted with
the quotation unless specifically called for. Tender samples if called
for, shall not be less than the quantity necessary for test as specified
and shall have a sealed label affixed with these particulars:(1) Tenderers name and address.
(2) Tender No.
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(3) Date of opening of the Tender.

(4) Item No. of the Tender for this sample.
The samples shall be sent to the officer specified in the
Invitation to Tender to reach him at the specified date. The cost and
freight of sending the sample shall be borne by the tenderer and
there will be no obligation of part of the Receiving Officer for their
safe custody. The dispatch document for such samples shall be
promptly sent to the concerned officer for prompt delivery and to
avoid auction by the carrier.
19. The sealed sample, drawings and other particulars
governing the supply of stores, if specified in the Invitation to Tender
shall be seen at the place and time indicated therein.
20. The tender shall be enclosed in a double cover. The
outer cover shall bear the address of the office issuing the Invitation
to Tender to Tender without any indication that it encloses a tender.
The inner cover shall be sealed and the number of the Invitation to
Tender and date of opening shall be clearly marked on it. All outstation tenders must be sent by Registered post well in time and
only one Tender shall be enclosed in one cover.
21. All tenders shall be opened at the time and date
specified in the Invitation to Tender. The tenderers representative
shall be at liberty to be present at opening of the tenders of the
value of Rs. 5,000.00 and above.
22. The person signing the tender on behalf of the tenderer
must specify his authority, that is to say, whether he sings as the
Sole Proprietor, Active Managing Partner, Managing Director, Acting
Director, Manager, Secretary or per procurationer for the firm and if
so required shall have to produce copy of the documents authorizing
him to sign the tender.
Note:

In the case of unregistered firms, all the members

or any attorney duly authorized by all of them or
the Manager of the firm shall sign the tender and
other subsequent documents.

23. It is in the interest of the tenderers to get themselves

registered with the Department as APPROVED CONTRACTORS.

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24. The tenderer shall give the following information, if called

upon to do so:(1) Registration No. as approved Contractor.
(2) C.C.I. and E Registration No.
(3) Income Tax Registration No.
(4) Sales Tax Registration No.
25. The submission of tender against the Invitation to Tender
by the tenderer, shall be deemed to his having read and accepted
the conditions contained in PR-IX and PR-XX to PR-XXII and
thoroughly examined the specifications, drawing and particulars
specified in the Invitation to Tender. Further the tenderer shall be
deemed to be fully aware of the nature of goods required and shall
be bound to accept the contract, if placed with him on the basis of
his prices within the validity of his tender
26. The tenderer shall certify in his tender that stores offered
for supply shall be strictly in accordance with the requirements set
out in the Invitation to Tender. This shall be done by affixing the
green Certificate as under on the top of the first sheet of his tender.
We guarantee to supply stores
exactly in accordance with the
requirements specified in the
Invitation to Tender No.____________

Tenderers Signature
__________
27. The Invitation to Tender may be purchased from
appropriate authority specified and cash receipt must be enclosed
with the tender.
28. The unsolicited, late and delayed tenders shall not be
considered.

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29. Any correction or alteration in the tender must be signed

in full by the same person who is signing the tender for and on
behalf of the tenderer.
30. The purchaser does not pledge himself to accept the
lowest tender and reserves to himself the right of accepting the
whole or any part of the tender or portion of the quantity offered, and
the tenderer shall supply the same at the rate quoted. The tenderers
are at liberty to tender for the whole or any portion or to state in the
tender that the rate quoted shall apply only if the entire quantity is
purchased.
31. Acceptance by the Purchaser will be communicated by
telegram, letter of acceptance or advance Acceptance of Tender or
formal ACCEPTANCE OF TENDER. In case, where acceptance is
communicated by telegram or letter or Advance Acceptance of
Tender, the formal Acceptance of Tender will be forwarded to the
successful tenderer as soon as possible but the instructions
contained in the telegram, letter or Advance. Acceptance of Tender
shall be accepted upon immediately.
32. The tenderer must always give his tender for brand new
stores of latest design, robust construction and made according to
the modern manufacturing practice.
33. Tenderers offering stores subject to prior sale shall not
be considered.
SPECIAL CONDITIONS FOR PLANT AND MACHINERY
34. The plant and machinery offered by the tenderers must
be suitable for operation in extreme tropical climate at site and for
the working duty (8 hours, 12 hours or continuous 24 hours, etc.) as
specified in the Invitation to Tender.
35. The plant and machinery offered by the tenderer shall be
of latest well tried design and robust construction to give adequate
service life expected from them after installation at site.
36. The successful tenderers shall be required to furnish
complete details for suitable layout, foundation, installation, erection,
inspection and tests, operation and maintenance.

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37. The plant and machinery offered shall always be

complete with its normal standard accessories, fittings, tool kit and
spare parts, if any.
38. A successful tenderer shall furnish at the option of the
purchaser a priced spare part list of the plant and machinery offered
by him, to facilitate the supply of spare parts afterwards.
39. The tenderers are advised in their own interest to make
sure that the plant and machinery offered by them meet the
specified requirements and are capable of giving the required
performance and service at site with its local conditions regarding
climate, ground air, water, power and fuel.
40. The successful tenderer shall have to make suitable
arrangements for inspection and tests if required by the
Inspector/Purchaser after correction at site.
41. The tenderers must ensure the use of best materials in
the making of plant and machinery tendered by them or their
principals. The use of any below standard materials shall make the
goods liable to rejection and the tenderes liable to compensation
and disciplinary and monetary repercussion.
42. The price quoted by the tenderer shall include the cost of
competent Engineers to supervise initial operation and training of
the consignees staff and to guide for the servicing and maintenance
of the plant and machinery offered and supplied.
43. The prices quoted by the tenderer shall include the cost
of all routine and type tests stipulated in the specifications governing
the supply of goods.
------------------

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PR-10

ANNEXURE-X
TENDER SHEET
CHIEF PURCHASE OFFICER GOVERNMENT
OF THE PUNJAB ___________DEPARTMENT

Tender Invitation No.__________

Number of Tenders received

by the Tender Section

Signature of Tender Officer

Date of Opening__________
Number o Tenders
received by the
Purchase Officer

Signature of Purchase Officer

-------------------------------

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PR-11

ANNEXURE-XI
TENDER SHEET

_________ tender covers were properly exhibited to us and were

found intact and opened in our presence. There were corrections/
over-writing in the tender submitted by M/s,_______________ which
were duly initialed by the Officer opening the tender.

Sr.
No.

Name of Firm

Name of representative
in block letters

Signature of
Representative

1
2
3
4
5
6
7
8

------------------------- tender covers received and opened in

public, ---------------- quoting and ----------------------- regretted.
1.
Representative of firm whose signatures appear above
were present.
2.
Representative of one of the firm quoting turned up and
the tenders were opened in association with.

Signature of Second Officer, if

Signature of Tender Opening

representatives are less than three.

---------------DAO/FSD

Officer.

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PR 12

ANNEXURE- XII

COMPARATIVE STATEMENT WITH PURCHASE PROPOSAL

Principal/Chief Purchase Officer
Government of the Punjab
______________Deptt
Trade No._______ Type of tender _____ No. of tender invitation issued______ No. of tenders received ______ No. of
tender quoted ________

Sr. No

Indenters Name _______________

of the

Destination ___________________

tender

Delivery required _______________

Name of the
firm

DAO/FSD

Registered
or not

FOB, C&T
CIF

Delivery
Period

Validity

Purchase Officers
proposal
about
accept ability and
procurement

110

PR-13

ANNEXURE-XIII
No. __________________
CHIEF PURCHASE OFFICER
GOVERNMENT OF THE PUNJAB

To
M/s _______________
_______________
_______________
Subject:

TENDER ENQUIRY NO._________ DATED_________

OPENED ON ADVANCE ACCEPTANCE OF TENDER

Dear Sirs,
Your Tender No.__________ dated against the subject Tender
Enquiry/subsequent negotiation dated ______________ is hereby
accepted as per details given below:Item No.

Quantity
required

Value

Delivery
period

Delivery terms

Please note that the contract stands concluded by the

acceptance of your tender/offer referred to above.
Please deposit a Security in the form of Deposit-at-Call in the
name of Chief Purchase Officer ________________ Department in
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any scheduled bank for a sum of Rs._____________ within _______

days of the receipt of this Advance Acceptance of Tender.
Please note that failure to furnish the required security shall
constitute a breach of contract and the Purchase shall be entitled to
make other arrangements at your risk and expenses in accordance
with para 9 (b) of PR-XX without notice.
Yours truly,
for and on behalf of Governor of Punjab.
ACKNOWLEDGEMENT
Free Delivery to Consignee
The Advance Acceptance of Tender No.________________
dated ______________ has been received by me/us and the work is
taken in hand in terms thereof.
Place

Signature of the Contractor

Date of Receipt
C&F Contractor.
OR
The Advance Acceptance of Tender No._______________
dated _____________ has been received by me/us and the work will
be taken in hand on the establishment of necessary Letter of Credit in
Pakistan against the formal contract in terms thereof.
Place:
Date of receipt:

Signature of the Contractor

-----------------

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PR-14

ANNEXURE-XIV

REGISTERED A.D

INDIGENOUS

CHIEF PURCHASE OFFICER _________________DEPARTMENT

GOVERNMENT OF THE PUNJAB
1.

Contract No. & date

_________________

2.

Contractors Name & Address

_________________

3.

Contractors Reference

_________________

4.

Indentors Name and Address

_________________

5.

Indentors Indent No. & Date

_________________

6.

Condition of the contract

As contained in PR-XX
to XXIII as amended
up to date.

Item

Description of
Stores Specification

Unit
Prince

Quantity
ordered

Total Value in
figures

8.

Delivery date

_________________

9.

Place of deliver

_________________

10.

Name and Address of Consignee _________________

11.

Despatch Instructions

_________________

12.

Inspection Authority

_________________

13.

Technical Officer

_________________

14.

Packing & Marking

_________________

15.

Place of Inspection

_________________

16.

PAYMENT

_________________

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17.

DAO/FSD

SPECIAL INSTRUCTIONS:
(a)

The contractor should as per terms of the contract

submit his Bill on the prescribed bill form at PRXXXIV duly machine numbered. In case of any
deviation from the above prescribed procedure the
Payment Office will not be responsible for any delay
so caused.

(b)

The
contractor
is
required
to
issue
Acknowledgement immediately on receipt of
cheque from the Payment Officer. In case he fails to
acknowledge the receipt of cheque within 7 days,
his subsequent payment will be held in abeyance.

(c)

The contractor shall keep the Consignee, Inspection

authority and the Purchase Officer well informed
with the supply position.

(d)

Inspection Call should be sent two weeks before the

date when the inspections is required, failing
which actual date of inspection or two weeks after
the receipt of the Inspection Call whichever is earlier
will be considered the date of offering the stores for
inspection.

(e)

The contractor shall return within 3 days the receipt

of the contract on the enclosed SLIP PR-XXVI duly
filled in and signed in token of having received the
order.

(f)

The contractor is required to send specimen

signatures (in triplicate) of their authorized
representative who is competent to sign the bills
and receive payment on their behalf for onward
transmission to Audio Officer duly attested by the
Purchase Officer to enable the Audit Officer to verify
if payment has been received by an authorized
representative of the contractor. The change of the
contractors representative authorized to sign bills
and receive payments, etc., should be promptly
reported by the contractor to the Audit Office as well
as to the Purchase Officer failing which the entire
responsibility for wrong payment will lie on the
contractor.

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(g)

Suppliers should note that if the stores inspected

and released by the Inspection authority rejected by
either the consignee or actual user/consumer and
on reinspection of such stores by the Inspection
Authority
in
the
presence
of
suppliers
representative it is concluded that rejection is
justified in terms and conditions of contract, stores
shall stand rejected and shall be replaced by the
contractor at his own risk and cost, failing which the
stores shall be purchased at his risk and expense.

(h)

Liquidated Damage: The delivery period is

essence of the contract. If the contractor fails to
adhere to the delivery schedule and intends to seek
extension thereof, it will be the sole discretion of the
purchaser either to grant or refuse extension in
delivery period. However, the extension in delivery
period if granted shall be subject to liquidated
damages @ 2% per month or part thereof.

18. Security: A sum of Rs.______ Rupees_____________ in

the form of deposit at Call No. security for successful completion of
the contract. In case the contractor fails to execute the contract
satisfactorily, the amount of security shall be forfeited. The purchaser
also reserves the right to purchase the material from elsewhere
without any notice at the risk and cost of the defaulting contractor.
(Purchase Officer)
for & on behalf of Governor Punjab
Copy to:1.

The Accountant-General (Supply Section), Punjab,

Lahore through (S.V.O.).
The cost of store is debitable Head of Account
No._____________
Original Call deposit No.__________________
dated______________ for Rs.______________ is
attached herewith as security will be released after
successful completion of the contract. FDs

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concurrence has been obtained vide their Uo

No.__________________ dated______________.
2.

INDENTOR ______________________________

3.

CONSIGNEE_____________________________
He should keep in touch with the Purchase Officer
and the Contractor to watch the supply of stores
within the prescribed delivery period. On receipt of
the store he should return the copy No.10 of the
Inspection Note to the Purchase Officer within
seven days in token of having received the store,
alongwith No. Demand Certificate. In case the
stores are not received by him within the stipulated
delivery period, he should immediately inform to
Purchase Officer.

4.

Commissioner of Income Tax, Northern Zone,

Lahore.

5.

Authentication Officer.
--------------

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PR-15

ANNEXURE-XV

IMPORTED
REGISTERED A.D

INDIGENOUS

CHIEF PURCHASE OFFICER__________DEPARTMENT

GOVERNMENT OF THE PUNJAB
This is in confirmation of advance Acceptance notified in this
office letter No._________________, dated ___________________
1.

Contract No. & date __________ Dated _____________

2.

Contractors Name & Address

_____________

3.

Contractors Tender No.

_____________

4.

Indentors Name and Address

_____________

5.

Indentors Indent No. & Date

_____________

6.

Condition of the Contract

As contained in Form
PR-XX to XXIII

7.

Particulars or Stores Given

Item

Description of

No.

Stores/Specification

As below

Unit
Prince

Quantity

Total Value in
figures

8.

Date of shipment

______________

9.

Part shipment

______________

10.

Trans-Shipment

______________

11.

Place of deliver

FOB/C&F/Karachi/Lahore

12.

Name and address of consignee

13.

Despatch Instructions

_____________
Stores should be
dispatched to the

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consignee
c/o
Liaison Officer.
14. Packing & Marking.

Usual export packing to ensure

safe journey by Sea, Rail
and
Road
from
Manufactures Works to
the site of Consignee.

Marking

Note:

the

Each packing should be

clearly marked in suitable
size in bold letters as
under:(i)

Consignees designation
and Address.

(ii)

Chief Purchase Officer

Punjab, Lahore, Pakistan,
Contract No. ______
dated ________

(iii)

With a green square of 4

or in suitable size as per
diagram.

Incase the above instructions are not followed

responsibility for any loss or damage due to wrong,
insufficient or Nil marking with the package/
packages will lie on the contractor.

Demurrage:
Should any demurrage charges be incurred
due to the reasons mentioned below the same shall be deducted
from the contractors bill or recovered for him as separate item. (The
decision of Liaison Officer, regarding fixation of responsibility in this
connection shall be binding on the contractor).
I.
Owing to delay in forwarding the relevant and complete
set of non-negotiable shipping documents including packing list,
original invoice and literature showing item wise prices, to the Liaison
Officer ten days in advance of the arrival of the ship carrying the
goods.
II.
Late receipt of documents by the Liaison Officer due to
incorrect and incomplete address.
III.
DAO/FSD

Due to receipt of incorrect or incomplete documents.

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IV.

Detective marking or packing of the goods.

V.
Due to reasons not specified above but for which the
contractor is responsible.
VI.
The non-negotiable shipping documents complete in all
respects shall be dispatched by registered air mail within 7 days of
shipment of the consignment of ship. If the contractor/supplier fails to
observe this condition and any demurrage has to be paid by
purchasers on this account, the same will be recovered from the
contractors bill.
Note1: In case negotiable documents are not available the
non-negotiable documents including copy of invoice
showing item wise price shall be set to the Liaison
Officer but on the condition that Negotiable documents
will be endorsed to the Liaison Officer immediately on
receipt. If the authority has to incur any expenditure for
want of negotiable documents the same shall also be
recovered from the contractor in addition to the
demurrage if incurred.
Note2: In case consignments have been so packed which will
necessitate obtaining oversize dimension certificate
from railway the documents and the packing advice
showing measurement of consignments should be sent
to the Liaison Officer, at least 15 days in advance of
the arrival of the ship. Should any demurrage charges
be incurred due to late receipt of packing advice the
same will also be charged from the contractor.
15. Insurance: Comprehensive insurance will be arranged by
M/s National Insurance Corporation, Akhwan House, 38 - Davis
Road, Lahore from suppliers ware-house to the ultimate consignee,
which shall remain valid up to 8 weeks after the receipt of stores by
the consignee. The suppliers shall intimate the name of the vessel,
date of shipment and other particulars necessary for effecting
insurance of goods to the National Insurance Corporation
immediately after shipment and not later than 8 days before the
arrival of the ship at Karachi. If they fail to do so and if any loss to the
consignee occurs in the absence of insurance of the consignment, it
will be their responsibility to make good the loss.
16. Manufacturers/Suppliers
Guarantee
Certificate:
Suppliers Guarantee Certificate alongwith negotiable document
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should clearly state that the stores being supplied by them are brand
new absolutely free from any material and Manufacturing defects and
particular in accordance with the specifications stipulated in the
contract. They will also certify that the stores have been packed and
marked in terms of the contract.
17.

Inspection Authority: Inspection Officer.

18.

Place at which the stores are to be inspected _________

19.

Suppliers/Markers name and address ______________

20.

Country of origin _______________________________

21.

Payment: Payment will be made in the following manner:

(a)

A sum of Rs._____________ will be paid to M/s.

_______ Through irrevocable and confirmed letter
of credit to be opened by the Purchaser and to be
established
by
the
Accountant-General,
Punjab/D.G. Audit and Accounts (Works), Lahore.

(b)

Our commission, viz. _________ will be paid by the

Accountant-General Punjab Director-General Audit
and Accounts (Works), Lahore in non-convertible
Pakistan Currency on production of Inspection
Notes with Receipt certificates from the consignee
and No Demurrage Certificate from the Liaison
Officer.

(c)

The amount of Letter of Credit shall be paid on the

production of the following negotiable documents:--

(i)

Draft.

(ii)

Suppliers invoice and packing list.

(iii)

Clean on Board under deck ocean Bill of Lading,

showing freight prepaid and if any prepared to the
order of the Liaison Officer, Government of the
Punjab.

(iv)

Inspection Certificate from the

(v)

Manufacturers Guarantee Certificate to the effect:(a)

DAO/FSD

That the stores supplied by them are strictly in

conformity with the specifications as stipulated
in the contract.

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(b)

That the stores have bee packed and marked

in terms of the contract.

(c)

That the stores supplied by them are brand

new and absolutely free from any
material/manufacturing defects.

(d)

Manufacturers Test Certificate in respect of

each consignment.

22. The payment of advance premium towards insurance of

the contracted stores on the basis of the prevailing rates (Less 15%
discount) as revised from time to time, by the National Insurance
Corporation be made by the contractor to the National Insurance
Corporation, Lahore. Subsequently the contractor will claim these
insurance charges at actual from the Accountant-General
Punjab/Director General Audit and Accounts (Works), Punjab, Lahore
on production of copies of non-negotiable shipping documents on the
bill form PR-XXXIV. However, the insurance charges paid in advance
by the contractor to L/s. the contractors letter of credit is
cancelled/withdrawn by the Chief Purchase Officer.
23.

Special Instructions:

(a) All consignments are to be shipped to the order of the

Liaison Officer, Government of the Punjab Karachi/Lahore, and
receipt of payment etc. should be promptly reported by the contractor
to the Audit Office as well as the Purchase Officer failing which the
entire responsibility for wrong payment will lie with the contractors.
(b) The contractor should carefully note for strict compliance
that the consignment is invariably shipped by their Principals abroad
only through those Shipping Lines which are prepared to release the
consignment at Karachi Port to our Clearing Agent against nonnegotiable copy of Bill of Lading supported with a letter of
Guarantee/Indemnity Bond to be furnished by the Liaison Officer. In
case the consignment is shipped through the following shipping Lines
which are not willing to release the consignment in the absence of
original Bill of Lading such as:-

DAO/FSD

(1)

M/s. United Lines.

(2)

M/s. Hansa Lines.

(3)

M/s. Forbes Campbell & Co. Ltd.

(4)

M/s. President Lines, etc.

121

(c) Then the entire responsibility for the delay so caused and
resultant losses, if any, in the form of demurrage/ shortage/ pilferage,
etc. shall rest with the local firm:
(i)

The contract will be considered valid subject to the

opening of irrevocable letter of credit by the State Bank
of Pakistan, Lahore.

(ii)

Time taken for the insurance of letter of Credit by the

Authority will be added to the delivery period already
specified.

(d) The Contractors shall acknowledge within 3 days the

receipt of the contract on the form i.e. PR XXVI duly filled in and
signed in token of having received A.T.
(e) Registration number of the firm with CCI&E: The
contracting firm shall have to submit 10% performance bond in
foreign exchange from their principals/Suppliers before shipment. The
performance bond will remain valid for six months from the date of
shipment of the last consignment. A breach on this score shall be
considered breach of the contract in which event the performance
bond shall be encashed.
(f) In no case the stores should be consigned to the order of
the shipper or the bank.
(g) The Liaison Officer, will arrange the clearance of the
consignment and will dispatch the same to the consignee,
viz.___________ by Rain on freight to pay basis.
(h) One set of the non-negotiable documents will be sent by
the suppliers to the following:(i)

The Liaison Officer, Government of the Punjab,

Karachi/Lahore.

(ii)

The Chief Purchase Officer, Government of the

Punjab.

(iii)

The Indenting Officer _________________________

(iv)

The Consignee______________________________

(v)

The Accountant-General Punjab/Director-General Audit

& Accounts (Works), Punjab, Lahore.

The non-negotiable documents viz eight signed copies of

invoices, packing list, literature and Bill of Lading should be
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dispatched well in advance to reach the said Liaison Officer, at

Karachi-Lahore at least ten days before arrival of the ship at Karachi
Port. Failure to do so will render the suppliers responsible for the loss
occurred if any by the consignee due to his delay.
(i) In case of non-clearance of the stores due to late receipt
of or incomplete Shipping documents (not being in conformity with the
contract) the supplier will be fully responsible for payments of
demurrage, etc., and he will also be held responsible for all
consequences arising from such incomplete documents.
(j) The contractors are advised to send specimen signatures
(in triplicate) of their authorized representative who is competent to
sign bills and receive payment on their behalf, for onward
transmission to the Audit Officer, duly attested by the Purchase
Officer to enable the Audit Officer to verify if payment has been
received by an authorized representative of the contractor. The
change of contractors representative authorized to sign bills, should
also be intimated.
24. Indemnity Bond: The Contractor shall at all time
indemnify the Purchaser against any claim which may be made in
respect of the stores for infringement of any right protected by patent,
Registration of Design, or Trade Mark and shall take all risks of
accidents/damages which may cause a failure of supply from
whatever cause arising and take the entire responsibility for the
sufficiency of the means used for the fulfillment of the contract.
PROVIDED ALWAYS that in the event of any claim in respect of
alleged breach of; Patent/Registered Design, or Trade Mark being
made; the Purchaser shall notify the same and the contractor shall be
at liberty at his own expenses to settle any dispute or to conduct any
litigation that may arise, therefrom.
25. Special Conditions: Where restrictions if any are
imposed by the Government in respect of the import of goods
specified in the contract, the decision of the Government shall be final
and binding on the parties to the contract. The Purchaser shall not be
responsible for any damage or losses as a result of this ban or
restrictions.
26. Subject to the above the contract stands concluded
between the parties and the provisions of the Contract shall be
binding on the contractor, his assigns, executors, administrators and
all those who have any interest pecuniary or otherwise in his concern.
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27.

Please acknowledge receipt in form PR-XXVI.

Purchase Officer
for & on behalf of the
Governor Punjab

Copy to:The
Accountant-General,
Punjab,
Lahore
through
authentication (3 copies) of the A.T. alongwith 3 copies of L/C
Request of even No. and date addressed to the State Bank of
Pakistan, Lahore for the establishment of Letter of Credit in favour of
the Supplier.
Original Call Deposit No._____________ dated____________
for Rs.___________ is sent herewith.
(i)

The cost is debitable to import License No.____________

dated _____________ for lumpsum amount of
Rs._______ against head of Account No._________ and
debit in respect of stores is to be raised against the
Accountant-General, Punjab, Lahore.

(ii)

Finance Departments concurrence has been obtained in

the relevant case vide their U.O. No._______ dated_____

2. CONSIGNEE_____________, he should immediately on

receipt of consignment get it inspected and record receipt certificate
on the Inspection Note and Return to the Contracting firm to enable
him to claim their commission from the Accountant-General, Punjab,
Lahore. In case of damage, suspected pilferage, etc., he should
immediately invite suppliers representative before opening the
consignment or consuming it. if necessary he should prefer claim with
the Insurance Corporation in his capacity as consignee.
3. The Inspection Authority,
Government of the Punjab, Lahore.

____________

Department,

4. The Liaison Officer (Regd. 4 copies) He is required to get

the stores cleared through M/s. ___________ promptly on receipt of
shipping documents. In case shipping documents are not received by
him in item, the clearance shall be effected under Letter of Credit
Guarantee/Indemnity Bond. The consignment after clearance should
be despatached to the consignee at)__________ without any loss of
time. He is also requested to issue No Demurrage Certificate to the
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local suppliers immediately after the consignment is cleared by him,

so that they may claim their commission from the AccountantGeneral, Punjab, Lahore. In case any shortage is discovered in the
consignment, a claim should immediately be lodged against the
Master of Ship/Port Trust Authority or Pakistan Insurance
Corporation, Lahore, as the case may be. This office, consignee/
suppliers should duly be advised of the claim lodged by him. In case
of damage or suspected pilferage, etc., the consignment should be
got surveyed by the recognized surveyors and claim if any lodged in
manner stated above.
5. M/s National Insurance Corporation, Al-Akhwan Building,
Davis Road, Lahore.
6.
(a) The will issue a Debit Note to the contracting firm with a
copy thereof to the purchaser.
(b) On receipt of payment a Cover Note will be issued by the
National Insurance Corporation, Lahore.
(c) The Insurance Policy will be issued on receipt of shipping
documents.
(d) Final Bill will also be issued by the National Insurance
Corporation after receipt of the shipping documents.
(e) Advance payment will be debited by the National
Insurance Corporation after adjustment on final bill.
7. M/s. __________ Clearing and Forwarding Agents, Karachi.
8. The Commissioner, Income Tax, Northern Zone, Lahore.
9. Authentication Officer.
--------------------

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PR-16

ANNEXURE-XIV

CHIEF PURCHASE OFFICER

_____________ DEPARTMENT
GOVERNMENT OF THE PUNJAB,
LAHORE.
Copies of contracts for transmission to
the Payments Office (supply) through
the Authentication Officer
S.

Contract
Name
of Names
and Brief
No. and Officer issuing addresses of the description
date.
contract.
contractors.
of stores.

Value Remarks

Certified that the above-noted copies are being sent for the first
time.

Signature in full of the

DAO/FSD

Received

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Purchase Officer.

Authentication Officer

Dated_________ 19

---------------

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PR-17

ANNEXURE-XVII

CHIEF PURCHASE OFFICER GOVERNMENT OF THE

PUNJAB ______________ DEPARTMENT

Copies of amendments contracts for transmission to

the Payments Office (supply) through
the Authentication Officer
S.

Amendment

Contract

Name of

Value,

No. and date

No. and date

Officer

in any

Certified that the above noted copies are being, sent for the first
time.

Received
Authentication Officer
---------------------DAO/FSD

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PR-18

ANNEXURE-XVIII

CHIEF PURCHASE OFFICER DEPARTMENT

GOVERNMENT OF THE PUNJAB
TENDER/CONTRACTORS SAMPLE
Name ______________________________________
Tender No.__________________________________
Contract No._________________________________
Store ______________________________________
____________________________________________
______

SIGNATURE OF
TENDER CONTRACTOR

------------------

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PR-19

ANNEXURE-XIX
CHIEF PURCHASE OFFICER
______________ DEPARTMENT
GOVERNMENT OF THE PUNJAB
APPROVED SAMPLE

Chief Purchase Officer No

__________________________

Indent No.

__________________________

Indentors No

__________________________

Store

__________________________

Remarks

__________________________

Signature
Purchase Officer
_____________________________________________________
Senior Technical Officer _________________________
Remarks ____________________________________
______________________________________________ ______

------------------

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PR-20

ANNEXURE-XX

GENERAL CONDITIONS OF CONTRACT APPLICABLE

TO THE CONTRACTORS
CHIEF PURCHASE OFFICER
______________ DEPARTMENT
GOVERNMENT OF THE PUNJAB

1. Definitions:
(i)

Contract means the invitation to tender, the instructions

to tenderers, the tender, acceptance of tender,
PARTICULARS hereinafter defined and such general
and special conditions as may be added.

(ii)

Contractor means the person, firm or company with

whom the order for the supply is placed and unless
excluded by the contractor, includes the contractors
successors
(approved
by
the
Purchaser),
Representatives, heirs, Executors and Administrators.

(iii)

Delivery means delivery by the dates specified in the

contract of stores which are found acceptable by the
Inspector/consignee but does not include the submission
of stores which are not of the required standard or which
are not delivered by due dates.

(iv)

Government means the Government of the Punjab.

(v)

Secretary means the Secretary to Government of the

Punjab dealing with the subject of procurement of stores

and includes any officer authorized by him to enter into
contracts in that behalf.
(vi)

Specification means the drawings, blue-prints, sketches,

illustrations, plans and specifications stipulated in the
contract.

(vii)

Purchaser means the purchaser or purchasers named in

the Invitation to Tender No. PR-VII his or their successors
or assignees.

(viii)

Inspector means any person or persons nominated by

or on behalf or the purchaser to inspect the supply of

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stores or work under the contact or his duly authorized

agent.
(ix)

Inspection Authority means any person nominated by or

on behalf of the purchaser to give final decision regarding
acceptance or rejection of stores and other inspection
matters.

(x)

Material means anything used in the manufacture of the

stores.

(xi)

Particulars means:
(a)

Specifications;

(b)

Sealed pattern denoting a pattern sealed and

signed by the Inspector/Purchase Officer.

(c)

Certified or sealed sample denoting a certified copy

of the pattern or sample sealed by the purchaser for
guidance of the Inspector.

(d)

Trade pattern denoting a standard of the P.S.I. or

other standardizing authority or a general standard
of the industry and obtainable in the open market.

(e)

Proprietary make denoting the product of an

individual concern.

(f)

Any
other
details
governing
the
construction/manufacture and/or supply as existing
for the contract.

(xii)

Stores means such articles specified in the Contract as

the contractor agrees to supply under the contract.

(xiii)

Test means such test or tests as are prescribed by the

specification or considered necessary by the Inspector.

(xiv)

Site means the place or places named in the tender or

such other place or places at which any work has to be
carried out as may be approved by the Purchaser.

(xv)

Words Importing Persons include any company or

association or body of individual whether incorporated or
not. Words importing the singular only shall also include
the plural and vice versa where the context requires.

(xvi)

Writing includes any manuscript, typewritten or printed

statement under or over signature or seal of ..

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Abbreviations used.
F.O.B

Free on Board

C&F

Cost and Freight.

C.I.F

Cost, Insurance, Freight

I/O

Indenting Officer

C/O

Contracting Officer

2. Purpose of the contract and parties to the contract:

(a) The parties to the contract (which is for the supply by
contractor to the purchase on terms and conditions set
forth in the contract) are the contractor and the purchase
named in the invitation on tender.
(b) Authority of person singing documents: A person
signing the Tender form or any document forming part of
the contract on behalf of another shall be deemed to
warrant that he has authority to bind such other and if, on
enquiry, it appears that the person so signing has no
authority to do so, the Purchaser, may without prejudice
to other civil and criminal remedies, cancel the contract
and hold the signatory liable for all costs and damages.
(c) Notices on behalf of Purchaser: Notices on behalf of
Purchaser in connection with the contact may be given by
a Gazetted Officer Subordinate to the Chief Purchase
Officer dealing with the contract.
(d) Contracts with rates subject to the confirmation:
When the prices quoted in the contracts as being subject
to confirmation by the makers the contractor should
before effecting delivery obtain the required confirmation
and communicate the same to the Purchaser, for his
acceptance. If supplies are made before such
confirmation and acceptance, except with the express
consent of the Purchaser the Contractor shall be paid at
the price mentioned in the contract.
3.

Consideration of tenders:

(a) All invitations to tender are without engagement and the

purchaser before placing the Purchase Order reserve the
right:
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(i)

to scrap the enquiry;

(ii)

to increase or decrease the quantity;

(iii)

to delete any item (s)

(b) Tenders who do not fulfil the tender conditions are likely to
be ignored.
(c) No tender shall be considered if:(i)

it is received after the time and date fixed for its

receipt.

(ii)

the tender is unsigned;

(iii)

the offer is ambiguous;

(iv)

the offer is from a blacklisted firm or a firm whose

registration was suspended;

(v)

the offer is from an unregistered firm without any

earnest-money provided the same was a condition
of the tender;

(vi)

the offer is for stores not conforming

specifications indicated in tender enquiry.

to

Contracting Purchaser reserves the right to reject any tender if:(i)

the stores offered are not found technically

acceptable, or will not serve the purpose for which
the stores are required.

(ii)

it is linked up with price variation against an offer

invited on a firm on final basis, or received with a
delivery period which is not specific and does not
permit the purchase of stores within the specified
period.

(iii)

It is materially and substantially different from the

tender conditions.

(d) Purchase Officers is not bound to accept the lowest offer

and reason for rejecting the lowest or any offer shall not
be communicated to any tenderer.
4.

Validity of Offer:

(a) Offer shall remain open for acceptance for a period to be

specified by the purchaser counted from the date of
opening of the tender. If no date has been specified, the
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offer, unless expressly mentioned otherwise by the

tenderer, shall be deemed to remain open for acceptance
for 45 days to be counted from the date of opening of
tenders.
(b) Withdrawal or any modification of the original offer within
the validity period, shall entitle the purchaser to forfeit the
earnest-money in favour of the authority or to take
suitable action against the registered firm like putting a
ban on future enquiries or removal from the list of
approved suppliers.
5.
Earnest Money: Registered firms have been exempted
from submitting earnest-money alongwith their tenders. Unregistered
firms shall have to submit their tenders alongwith an earnest-money
equivalent to a sum specified in the tender enquiry deposited in
favour of the Chief Purchase Officer through a scheduled Bank, in the
form of Deposit-at-Call valid for a period specified in the tender
enquiry. No other form of payment shall be accepted.
6.

Responsibility for Executing Contract:

(a) General: The Contractor is to be entirely responsible for

the execution of the contract in all respects in accordance
with the terms and conditions as specified in the contract,
notwithstanding any approval which the Inspector may
have given in respect of the stores, materials or other
parts of the works or of workmanship involved in the
contract or of test carried out either by the contractor or
by the Inspector.
(b) Subletting of contract: The contractor shall not sublet,
transfer or assign the contract or any part thereof without
the written permission of the purchaser. In the event of
the contractor contravening this condition the purchaser
shall be entitled to place the contract elsewhere on the
contractors account and at his risk and the contractor
shall be liable for any loss or damage which purchaser
may sustain in consequence, or arising out of such
replacement of the contract.
(c) Where a contract or a part thereof has been sublet,
transferred or assigned with the written permission of the
purchaser, the contract may be cancelled to provide for
payment being made direct to the sub-contractor or the
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transferee or the assignee, as the case may be, on the

request of the contractor provided that the sub-contractor,
transferee or the assignee indemnifies the purchaser for
the satisfactory completion of the contract or a part
thereof.
(d) Assistance to Contractor: The contractor shall not,
except to the extent specifically agreed to by the
purchaser in the contract, be entitled to assistance either
in the procurement of raw materials required for the
fulfillment of the contract or in the securing of transport
facilities. Any assurance or assistance given or attempted
to be given to the contractor in regard to these and not
covered by terms of the contract shall not be construed as
a representation that the purchaser is willing to waive his
rights under this or any other condition of contract.
Provided, however, that in the event of such assistance
resulting in the contractor obtaining materials at costs
lower than their market price or in a reduction in the
prices of the finished goods/articles the contractor shall
reduce the price accordingly.
7.
Use of Raw Materials secured with Government
Assistance: Where any raw materials for the execution of the
contract are procured with the assistance of Government either by
issue from Government stocks or purchased under arrangements
made or permit (s) or licence (s) issued by the Government, the
contractor shall hold the said materials as trustee for Government
and use such materials economically and solely for the purpose of
contract against which they are issued or obtained and not dispose
them of without the permission of the Government and return if
required by the purchaser, all surplus or unserviceable materials that
may be left with him after the completion of the contract or its
termination for any reason whatsoever on his being paid such price
as the purchaser may fix with due regard to the condition of the
material. The freight charges for the return of the materials according
to the direction of the purchaser shall be borne by the contractor in
the even of the contract being cancelled for any default on his part.
In the event of a breach of the aforesaid conditions, the
contractor shall in addition to throwing himself open to any action for
contravention of the terms of the licence (s) or the permit (s) and/or
criminal breach of trust be liable to account to Government for all
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moneys, advantages or profits resulting or which in the usual course

would have resulted to him by reason of such breach.
8.
Quotation of rates by Contractors: The price quoted by
the contractor shall not, in any case exceed the controlled price, if
any, fixed by the Government or a reasonable price which it is
permissible for him to charge for private purchases for the same class
and description of goods under the provisions of any existing law. If
the price quoted exceeds the controlled price or the price permissible
under any existing law the contractor shall specifically mention this
fact in his tender alongwith reasons for quoting such higher price. The
Purchaser at his discretion shall, in such cases, exercise the right of
revising the price at any stage so as to conform with the controlled
price or the price permissible under any existing law. This discretion
shall be exercised without prejudice to any other action that may be
taken against the contractor.
9.

Security Deposit:

(a) On acceptance of the tender, the contractor shall, at the

option of the Purchaser and within the period specified by
him, deposit with him a security deposit not exceeding
10% of the tendered value of the contract and not less
than a minimum of Rs.100 as he shall specify in the
contract. The security shall be furnished in the form of
Deposit-at-Call in the name of purchaser.
(b) If the Contractor is called upon by the Purchaser to
deposit security and the contractor fails to provide the
security within the specified period such failure shall
constitute a breach of the contract and the Purchaser
shall be entitled to make other arrangement at risk and
expense of the contractor.
(c) No claim shall lie against the Purchaser in respect of
interest on security deposit or depreciation or failure of
Bank in case of acceptance of Bank Receipt.
(d) On due completion of the contract the Purchaser shall
return the security deposit to the Contractor
on presentation of a No Demand Certificate issued by the
Consignee and countersigned by the Purchaser and the
Contractor shall return in good condition any
specifications, or any other property belonging to the
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Purchaser which have been issued to the Contractor for

the execution of the contract.
(e) In case a No Demand Certificate is not received from the
Consignee within 2 months of the receipt of the stores by
him, the Consignee shall be issued a 15 days notice
failing which the security shall be refunded against
Indemnity Bond.
10.
(i)

Specifications:
Generally the stores shall be of the best quality and
workmanship and comply with terms and conditions of the
contract to the satisfaction of the Inspector.

(ii) In particular and without prejudice to the foregoing

conditions and in addition thereto when tenders are called
for in accordance with particulars the contractors tender
to supply in accordance with such particulars, shall be
deemed to be an admission on his part that he has fully
acquainted himself with the details thereof and no claim
on his part which may arise on account of nonexamination or insufficient examination of the Particulars
shall in any circumstances be entertained.
(iii) The contractor shall supply the stores in accordance with
the particulars unless any deviation is authorized as an
exceptional case and expressly specified in the contract.
(iv) If a specification and/or drawing exists then the sealed
pattern or certified sample thereof shall govern supply
only to the extent of workmanship and finish. If neither a
specification nor a drawing exists the sealed pattern or
certified sample thereof will govern supply in all respects.
(v) When neither specifications, drawing nor pattern is
available to govern supply, the supply must be of quality
material, pattern and workmanship which the purchaser
has agreed, shall be acceptable and the Contractor has
undertaken to supply, and when under these
circumstances a contractors sample has been approved
by the Inspector, the stores supplied must be equal in all
respects to such sample.
(vi) If any dimensions figured upon a drawing, differ from
those obtained by scaling the drawing, the contractor
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shall bring the discrepancy to the notice of the Inspector

and the officer issuing the contract. The Inspectors
decision in the matter shall be final.
11.
(i)

Samples:
Free samples submitted shall be supplied without charges
and freight paid and without any obligation on the
Purchaser as regards safe custody. Expensive samples of
stores submitted to the purchaser, return of which is
desired by the contractor will, if found acceptable and
retained by the purchaser, shall be paid for.

(ii) Marketing: All samples submitted must be clearly labeled

with the contractors name and address and contract
number.
(iii) Not to Govern Standard: If the contractor submits a
sample with his tender the same shall not govern the
standard of supply except when it has been specifically
stated in the contract that it is accepted instead of any
sealed pattern.
(iv) Deliveries:

(v)

DAO/FSD

(a)

The contractor shall submit samples of stores he

proposes to submit for inspection for the first
consignments for test before proceeding with bulk
manufactured for deliver. Normally not less than one
percent of the quantity to be supplied shall be sent.

(b)

Small samples deliveries, if specially so marked and

submitted to the Inspector in separate parcels shall
be inspected and the result of the inspection shall
be notified immediately to the contractor.

(c)

If a sealed pattern exists to govern supply, the

sealed or certified sample thereof may be examined
before sending samples for approval or at any time
during the execution of the contract.

Loan of Samples: Should certified samples be lent to a

contractor, they shall have a lable attached, for noting
down any discrepancy between the certified sample and
particulars of schedule to tender he shall refer the matter
to the Inspector endorsing a copy of the letter to the

140

officer issuing the contract, Inspector shall decide the

course which is to be followed.
(vi)

Lable: The lable must on no account be detached from

certified sample. Should it, however, become detached
the certified sample should be returned at once to the
Inspector for attaching a fresh lable.

12. Return of Particulars: The contractor is responsible for

the return in a perfect order, of all specifications, drawings or certified
sample with the labels intact unless specifically informed, by the
purchaser that their return is not required, and in the event of failure
so to return the specifications, patterns, drawings and certified
samples or if the certified samples are not returned in perfectly good
order, the contractor shall be held liable forthwith to pay the
purchaser, as liquidated damages either (at the option of the
purchaser) the sum of Rupees twenty or three times the value of the
same as declared by the officer issuing the contract and the
contractor will have no claim to the certified samples for which the
charge is made.
13.

Risk of loss or Damage to Purchasers property:

(a) The contractor guarantees the due return of all

purchasers property including particulars issued to him
and will be responsible for the full value thereof to be
assessed by the Purchaser for all loss thereof or
damage caused while in the possession or control of
the contractor, his servants, workmen or agents.
(b) In cases in which the purchasers property is insured
against fire by the contractor at the request of the
purchaser, such insurance shall be deemed to be effected
by way of additional precaution with the object of
minimizing (the loss to the contractor, but without
prejudice to the liability of the contractor under Clause 11
(a) above.
14.
(i)

DAO/FSD

Packing:
Responsibility for proper packing: The contractor shall
be held responsible for the stores being sufficiently and
properly packed for transport by air, rail, road and sea so
as to ensure their being free form loss or injury on arrival

141

at their destination. The packing of the stores shall be

done by and at the expense of the contractor.
(ii) Packing materials free supply: All packing cases
container packing and other similar materials shall be
supplied free by the contractor, and the same shall not be
returned unless otherwise stated in the schedule thereof.
(iii) Marking of packages: Each bale or package delivered
under the contract shall be marked by and at the expense
of the contractor and its particulars must be distinctly
marked (all pervious irrelevant markings being carefully
obliterated) with the description and quantity of contents,
with the consignees name and address, with gross
weight, with the name of the contractor and with a distinct
number or mark which is also to be shown for the purpose
of identification on the contractors Packing Amount. If the
stores are not packed and marked in accordance with the
instructions or in cases, where the packing materials are
not marked according to them, consignments are liable to
be rejected by the Inspector, whose decision as to the
sufficiency or otherwise of compliance with the
instructions shall be final. Repacking, if any, required by
the Inspector before onward dispatch shall if not carried
out by the contractor within reasonable time of demand
therefore, be carried out at the cost of the contractor
under the instructions from the purchaser.
(iv) Packing Notes: Each bale or package shall contain a
packing note quoting the contract and or supply or repeat
order, number and date and showing its contents in
details.
15. Charges for Works Necessary for Completion of
Contract:
The contractor shall pay all charges for handling,
stamping, printing, marking, drawing templates, models and gauges,
for protecting and preserving patent rights and for all such measures
as the Inspector may deem necessary for the proper completion of
the contract, through special provision therefore may not be made in
the particulars.
16.
(i)
DAO/FSD

Delivery:
Time for and date of delivery to be essence of the
contract: The time for and the date of delivery of the

142

stores stipulated in the contract shall be deemed to be the

essence of the contract and delivery must be completed
no longer than the dates specified therein. The delivery
dates shall be counted from the date of issue of the
contract or supply order. The contractor shall afford all
reasonable facilities to the officer appointed by the
purchaser in this behalf including free and full access to
his works and all record having a bearing on the progress
of the deliveries against the contract.
(ii) Notice by Contractor: Notice in writing shall be sent by
the contractor to the Inspector when the stores to be
supplied are ready for submission for inspection and test.
The Purchaser is responsible for immediately notifying the
contractor if submission is to be retarded or held in
abeyance.
(iii) Failure and termination: Should the contractor fail to
deliver the stores or any consignment thereof within the
period prescribed such delivery, the purchaser shall be
entitled at his option.
(a)

to recover from the contractor agreed liquidated

damages and not be way of penalty, a sum of 2 per
cent. of the price of any stores which the contractor
has failed to deliver as aforesaid for each month or
part of a month during which the delivery of such
stores may be in arrears; or

(b)

to purchase elsewhere without notice to the

contractor on the account and at the risk of the
contractor, the stores not delivered or others of a
similar description where others exactly complying
with the particulars are not, in the opinion of the
purchaser which shall be final, readily procurable
without canceling the contract in respect of
consignments not yet due for delivery, or

(c)

to cancel the contract against forfeiture of security.

(d)

To cancel the contract:

Provided that where a part of the stores is delivered after the

expiry of prescribed period of delivery, or after the extended period of
delivery whether with or without reservation of right, the purchaser at
his discretion shall have the right to impose liquidated damages as at
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(a) for the delayed consignment, in addition to his right of exercising

option at (b), (c) or (d) above.
In the event of action being taken under (b) or (d) above the
contractor shall be liable to pay for any loss which the purchaser may
sustain on that account but the contractor shall not be entitled to any
gain on repurchases made against the default.
In the event of the termination/cancellation of the contract for
any reason whatsoever, or on the incomplete performance thereof,
the purchaser may at his option (without prejudice to any rights which
may be available to the purchaser under the existing law and Rules
framed thereunder by notice in writing to the contractor) require the
contractor to deliver and the contractor shall thereupon immediately
deliver to the purchaser all or any part of the materials to be required
(fabricated or otherwise) in his possession or control, got or ordered
by him whether in the normal course of business or under special
terms arranged through the intervention of the purchaser or on his
behalf for the performance of the said contract or any part thereof
and thereupon, the following provisions shall have effected:-

DAO/FSD

(a)

The Contractor shall subject to any recoveries that

the purchaser may be entitled to be paid the cost
price of the materials so delivered and not rejected
as hereinafter, provided plus a reasonable charge
for handling.

(b)

In case at any time after the issue of said notice the

purchaser shall be of opinion that the materials are
damaged or unsuitable for the purchaser's
requirements the purchaser may reject and return
such materials.

(c)

In respect of materials supplied through the

intervention of the purchaser or on his behalf and
not taken over by me purchaser, at the request of
the contractor or with his account the contractor
shall settle all claims of the suppliers including any
claims to any extra/charge (if the original stipulated
terms had been concessional) and keep the
purchaser indemnified against the same.

(d)

In respect of finished articles rejected as not being

up to specifications or the standard of the accepted
or sealed sample, the purchaser shall have the first

144

option to take over the articles on payment, to the

contractor, of die cost of raw materials actually
expended in the production thereof, together with
reasonable fabrication charge and the purchaser's
decision on both shall be final and binding on the
parties.
(iv)

(v)
DAO/FSD

Extension of delivery date:

(a)

If the contracted dates may not be adhered to, an

application with full justification shall be sent by the
contractor not later than 15 days in advance of the
expiry of the delivery date specified in the contract
to the office issuing the acceptance of tender and a
copy endorsed to the Inspector specified in the
schedule. Should, however, deliveries be made
after the expiry of the contracted delivery date
without prior concurrence of the purchaser and
accepted by" the Inspector such deliveries will not
deprive the purchaser of his right to recover
liquidated damages under clause 16 (iii) (a) above.
Deliveries shall not be made after the expiry of
contracted delivery date without prior concurrence
of the Purchaser,

(b)

Without prejudice to the foregoing rights, if such

failure to deliver in proper time as aforesaid shall
have arisen from any cause which the purchaser
may admit as a reasonable ground for an extension
of the time he may allow such additional time as he
considers to be justified by the circumstances of the
case and his decision shall be final in that respect.
Provided always that any failure or delay on the part
of the sub-contractors though their employment may
have been sanctioned, shall not be admitted as
reasonable ground for any extension of the time for
exempting the contractor from liability for any such
loss or damage as aforesaid and provided further
that no extension shall be allowed unless/
application for it shall in the opinion of the purchaser
(which shall be final) have been made and in his
opinion is justified.

145

18.

(a)

Place of Delivery: the contractor shall as may be

required by the purchaser delivers the stores either
on free delivery basis to consignee or F.O.B. and
not later than on the dates specified in the contract.

(b)

Notification of Despatch: Notification of delivery or

despatch in regard to each and every consignment
shall be made to authorities named in the form
prescribed for the purpose, copies of which shall be
furnished free of charge by the office issuing the
acceptance of tender. The contractor shall further
supply to the consignee a packing account quoting
the Acceptance of Tender and of supply or repeat
order No. and date of all stores dispatched. All
packages, containers, bundles and loose materials
forming part of each and every consignment shall
be described fully in the packing account and full
details of packages and quantity of materials are to
be given to enable the consignee to check the
stores on arrival at destinations. The Railway
Receipt shall be forwarded to the consignee
immediately after despatch of stores otherwise the
demurrage charges (if any) paid by the consignee
will be recovered from the contractor.

Inspection and Rejection:

(i) Facilities for test and examination: The contractor

shall afford at his own expenses the Inspector all reasonable
accommodation and all facilities to satisfying himself that the stores
are being or have been manufactured in accordance with the
particulars and for this purpose the Inspector shall have full and free
access -at any time during the contract to the contractor's works and
may notwithstanding any contractual terms to the contrary require
the contractor to make arrangements for the stores or any part
thereof, to be inspected at his premises or at any other place and the
contractor shall reserve similar rights as regards any sub-contract he
may make. The contractor shall pay all cost connected with such
tests and provide without extra charges all materials, tools, labour
and assistance of every kind which the Inspector may consider
necessary for any tests and examination other than special or
independent tests, which he shall require to be made on the
contractor's premises, and shall pay all cost attendant thereon failing
DAO/FSD

146

these facilities (in regard to which the Inspector will be the sole
Judge)" at his own premises for making the tests. The contractors
shall bear the cost of carrying out such tests elsewhere. The
contractor shall also provide and deliver free of charge at such place
as the Inspector may direct such material, as he may require for
tests by chemical or other analysis or independent testing machine
or means commonly in use according to the nature of the stores. In
the event of such tests being unsatisfactory and resulting in or
leading to the rejection of the stores concerned, the cost of the test
will be borne by the contractor such costs will be assessed at tha
rates charged by the Laboratory concerned for work done for private
firms and individuals.
(ii) Method of test: The Inspector shall have the right to-put
all sorts of materials forming part of some or any part thereof to such
tests as he may think proper for the purpose of ascertaining whether
the same are in accordance with the particulars and to cut out or off,
and/or destroy a portion from each delivery for such purpose without
prejudice to this right:-

(iii)

(a)

Store expended in test: If the test proves

satisfactory and the assignment is accepted, the
quantity of stores of material expended in test will
be paid by the Purchaser.

(b)

If the stores or materials fail in test, and the

consignment is rejected the quantity expended in
test will be treated as not having , been delivered.

Inspector: Final Authority and to certify performance:

(a)

The Inspector shall have power before any stores or

parts thereof are submitted for inspection to certify
that they cannot be accepted in accordance with the
contact, owing to the manufacture not being
satisfactory.

(b)

To reject any stores submitted as not being in

accordance with the particulars.

(iv) Inspection and Rejection: The Inspector may reject the

whole consignment tendered for inspection if, after inspection of such
portion thereof as he may decide at his discretion, he is satisfied that
the consignment is unsatisfactory.
(v)
DAO/FSD

Rejection: If any stores are rejected as aforesaid then

147

without prejudice to the foregoing provisions, the purchaser shall be

at liberty to:(a)

allow the contractor to resubmit stores in

replacement of those rejected within a time
specified by the Purchaser, the contractor bearing
the cost of freight on such replacement without
being entitled to any extra payment, or

(b)

buy the quantity of the stores rejected or others of a

Similar nature elsewhere at the risk and cost of the
contractor, without effecting the contractor's liability
as regards supply of any further consignment due
under the contract: or

(c)

terminate the contract and recover from the

contractor the loss, the Purchaser thereby incurs.

(d)

The decision of the Inspection Authority as regards

rejection as aforesaid shall be final and binding on
the parties. The contractor shall not be entitled to
any gain on repurchase.

(e)

Supplier should note that if the stores inspectedand released by the Inspecting Authority are
rejected by the actual user/consumer and
on re-inspection of such stores by the Inspection
Authority
in
the
presence
of
suppliers
representative it is concluded that rejection is
justified in terms and conditions of contract the
stores stand rejected and shall be replaced by the
supplier at his own risk and cost failing which the
stores shall be purchased at his risk and expense.

(vi) Marking or Rejection: If considered desirable by the

Inspector, rejected stores will be marked with a small rejection mark,
so that these may be easily identified if re-submitted and the
contractor shall not be entitled to claim any thing on that account.
(vii) Notification of Result of Inspection: Unless otherwise
provided in the specification of schedule the examination of the
stores will be made as soon as practicable after receipt, and the
result of examination will be notified to the Contractor.
(viii) Removal or Rejection: Any stores submitted for
inspection and rejected by the Inspector must be removed by the
DAO/FSD

148

contractor within fourteen days from the date of receipt of intimation

of rejection, provided that in the case of dangerous, infected or
perishable stores, the inspector (whose decision shall be final) shall
notify the contractor to remove such stores within 48 hours of receipt
of intimation of rejection and it shall be the duty of the contractor to
remove them accordingly. Such rejected stores shall lie at the
contractor's risk from the time of such rejection and if not removed
within the afore-mentioned time the purchase shall have the right
either to return the rejected stores or carry forward at the contractor's
risk by such mode of transport as the purchaser may select or to
dispose of or segregate such stores he thinks fit at the contractor's
risk arid on his account and retain such portion of the proceeds as
may be necessary to cover any loss or expenses incurred by or on
behalf of the purchaser in connection with the said sale. Freight to
destination of stores rejected after examination at destination shall be
recoverable from the contractor at Public Tariff Rate.
(ix) Inspection Certificate or Receipt Vouchers: On
completion of the inspection, the contractor will be furnished by the
Inspector with necessary copies of Inspection Certificates or Receipt
Vouchers duly completed to be attached to the contractor's bill in
support thereof.
19. Recovery of Sums Due: Where under this contract any
sum of money is recoverable from and payable by the contractor, the
purchaser shall be entitled to recover such sum by appropriation in
part or whole, the security deposited by the contractor, if a security is
taken against the contract and to sell any Government promissorynotes, forming the whole or part of such security. In the event of the
security being insufficient or if no security has been taken from the
'contractor- then the balance or the total sum recoverable, as the
case may be, shall be deducted from any sum then due or which at
any time thereafter may become due to the contractor under this or
any other contract with the purchaser or Government or any other
person or persons contracting through the purchaser. Should this
sum be not sufficient to cover the full amount recoverable, the
contractor shall to the purchase on demand the remaining balance
due? In the event of failure to pay any sum recoverable from the
contractor, the same shall be recovered as arrears of land
revenue.
20.
(i)
DAO/FSD

System of Payment:
Unless otherwise agreed between the parties, payment

149

for the delivery of the stores shall be made on submission of bills in

the prescribed form in accordance with the instructions given in the
contract by crossed cheque on a Government Treasury in Pakistan or
a branch of the State Bank of Pakistan of on the branch of any other
bank transacting Government business.
(ii) Payment for the stores or for each delivery shall be made
to the contractor on submission of bill in the form prescribed PRXXXIV in accordance with the procedure laid down by the purchaser
as below:(a)

In the case of local contracts 100 per cent, of the

price of each consignment shall be paid by the Audit
Officer on production of copies No. 1, 2 and 5 of the
Inspection
Notes
and
receipt
certificate
of the consignee.

(b)

21.

(i)

In the cases of C&F, CIE and FOB contracts 100

per cent, of the value of consignment shall be paid
abroad on production of negotiable shipping
documents mentioned in the contract.

(ii)

Local agents commission shall be paid in the

manner, specified at (a) above.

Laws Governing the Contract:

(i) The contract shall be governed by the Laws of Pakistan,

for the time being in force.
(ii) The marking of all stores supplied must comply with the
requirements of the Central Acts relating to Merchandise Marks and
of the rules made under such Acts.
22. Indemnity: The contractor shall at all times indemnify the
purchaser against all claims which may be made in respect of the
stores for infringement of any right protected by patent, Registration
of Design or Trade Mark and shall take all risk of accidents or
damages which may cause a failure of the supply from whatever
cause arising .and the entire responsibility for the sufficiency of all
me means used by him for the fulfillment of the contract; PROVIDED
ALWAYS that in the event of any claim in respect of alleged breach of
letter patent, Registered Designs or Trade Mark being made against
the purchaser, the purchaser shall notify the contractor in same and
the contractor shall be at liberty at his own expense to settle any
DAO/FSD

150

dispute or to conduct any litigation that may arise therefrom.

23. Bribe, Commission, Corruption/Gift: Any bribe,
commission, gift or advantage, given, promised or offered by or on
behalf of the contractor or his partner, agent or servant, or anyone on
his or their behalf or any officer, servant, representative or agent of
the Purchaser or Government of any person on his or their behalf in
relation to the obtaining or to the execution of this or any other
contract with the Purchaser or Government or placed through
Government agency, for showing favour or disfavor to any person in
relation to this or any other contract as aforesaid shall subject the
contract to die cancellation of this and all or any other contracts as
aforesaid and also to payment or any loss or damage resulting from
any such cancellation under clauses 16 and 19 thereof; any dispute
or difference of opinion arising in respect of either the interpretation,
effect or application of this condition or the amount recoverable
thereunder, from the contractor shall be decided by the Purchaser
and his decision shall be final and binding on the parties.
24. Insolvency and Breach of Contract: Should the
Contractor be adjudged insolvent, or have receiving order made
against him or make or enter into any arrangement of composition
within creditors or suspend payment (or being a company be wound
up, either compulsory or voluntarily or commit any breach of this
contract not herein specially provided for) the Purchaser shall have
power to declare the contract at an end in which case, the contractor
shall be liable to pay the purchaser for any extra-expense he is
thereby put to but shall not be entitled to any gain on repurchase.
25. Prior notice for arbitration: If the contractor intends to
go for arbitration, he shall have to give 30 days notice in writing
informing the purchaser of his intention to refer to the points of
differences and or dispute for arbitration under clause 26 of these
conditions of contract. He shall have to define clearly the points of
differences and or dispute in this notice.
26. Arbitration: Any dispute whatsoever, arising out of the
contract shall not be referable for arbitration. However where any
contract is entered into directly with a foreign firm which insists on the
inclusion of arbitration clause in their agreement, such a provision
should be entered into the contract.
27. Force Majeure: Force Majeure shall mean any event, act
or other circumstances not being an event, act or circumstance under
DAO/FSD

151

the sub-control of the purchaser or of the contractor or of any duty

appointed sub-contractor of the Contractor. Non-availability of
materials or of import licence or of export permit shall not constitute
Force Majeure. If by reasons of Force Majeure stores cannot be
delivered by the due delivery date then the delivery date may be
extended appropriately by the purchaser keeping in view all the
circumstances and requirements of the stores.
28. Headings of clauses: The headings of clauses hereto
shall not effect the construction thereof.

DAO/FSD

PR-21

ANNEXURE-XXI

CONDITIONS OF CONTRACT GOVERNING RATE CONTRACTS

In addition to the general Conditions of Contracts in PR-XX
following special conditions shall govern the contract which is a
"Rate Contract". Special conditions where they differ from the
general conditions, over-ride the later.
1.
Special ConditionsPurpose of contract and parties
to the contract: The parties to the contract which shall be deemed
to be Rate Contract and which is intended for the supply of stores of
the description set forth in the contract schedule hereto annexed
during the period therein specified shaft be the contractor of
the one part and the purchaser named in the Invitation to Tender on
the other part.
2.
Number or Quantity contracted for: Subject as
hereinafter, mentioned no guarantee can be given as to what
quantity of the stores will be ordered during the period of the contract
and any quantity mentioned, in the contract is merely an indication
but the purchaser undertakes to order from the contractor any or
all the stores as detailed in the Rate Contract which he requires to
purchaser except that he reserves the right (i) of submitting to
competition any supply of the stores included in the Rate Contract
the total value of which is estimated to exceed Rs. 50,000 or as
specified in the Rate Contract, (ii) of placing this contract with one
or more contractors as he may think fit, and (iii) of obtaining from any
source, stores, referred to in the Rate Contract to meet an
emergency if the purchaser (whose decision shall be final) is
satisfied that the contractor is not in a position to supply
specified quantities within the period in which supplier are required.
3.
Deliveries: The contractor as may be required, not
deliver free at the place or places as specified in the Rate Contract
such quantities of stores as may be ordered direct from the contract
from time to time by the purchaser or by any officer who may at any
time during the period of the contract be authorised by the purchaser
to place such order.
4.
Monetary limit for indents: The contractor shall not,
except with the prior approval of the Purchasing Officer comply with
the supply orders of the value of over Rs. 10,000 or as specified in
the Rate Contract received from the Officers authorised by the
Purchasing Officer to place orders against Rate Contract.

PR-22
ANNEXURE-XXII
CONDITIONS OF CONTRACT GOVERNING RUNNING
CONTRACTS
In addition to the general conditions of contract in PR-XX
following special conditions shall apply to this contract which is a
"Running Contract"
SPECIAL CONDITIONS
1.
Purpose of contract and parties to the contract: The
Parties to the contract which shall be deemed to be a Running
Contract and which is intended for the supply of the stores as
specified in the running contract during the period specified therein,
shall be the contractor of the one part and the authorities named in
the schedule to Tender "through Purchaser" hereinafter called the
purchaser which expression shall, where the context so admits or
implies be deemed to include his successors and assignees, on the
other part. The quantities shown in the said Running Contract are
only approximate and cannot be guaranteed.
2.
Purchaser: Purchaser may authorise any officer who
shall hereinafter be called Direct Demanding Officer at any time
during the period of the Running Contractor to place orders direct on
the contract. The contractor shall deliver or dispatch the full quantity
of the stores so order within the period as specified in the Running
Contract.
3.
Increase or Decrease of Quantities: The Purchaser shall
be entitled at any time to increase or decrease the approximate total
quantity of the stores as specified in the Running Contract by not
more than 25% and will give reasonable notice in writing of any such
increase or decease to the contractor.
4.
Maintenance and Replenishment of Stock: To meet
casual demands the contractor shall maintain at all times in stock
(until 75% of their requirements have been drawn) at the place (s)
specified in contract, the quantity/quantities mentioned therein. All
demands should be complied with immediately they are received by
the contractor any stipulated individual order. As soon as the
contractor is called upon to effect supplies, he shall take notice to
replenish the guaranteed stock until such time as 75% of the total
approximate requirements have been drawn and such replenishment

shall be completed within the period specified in the schedule, after

the receipt by the contractor of casual demands. Due notice will be
given to the contractor by the Direct Demanding Officers or by the
Purchaser, if any additional quantities over and above 75% of the
total approximate requirements are required and the contractor shall
then arrange stocks accordingly. The period of replenishment of stock
win be allowed only if the material is not in stock; if the material is in
stock this provision will be inoperative even though the guaranteed
stock/quantity may have been supplied against the contract.
5.
Reporting Progress of Contracts: The contractor before
the termination of the contract or at such intervals as may be
specified in the contract submit a report to the purchaser stating the
total quantity of stores delivered or dispatched under the contract.
"To be deleted, where the Governor of Punjab is sole
Purchaser".

PR-23

ANNEXURE-XXIII

CONDITIONS OF CONTRACT GOVERNING SUPPLIES OF PLANT

ANDMACHINERY
In addition to the General Conditions of contract in Form No
PR-XX the following, special conditions shall apply to this contract for
the supply of plant and machinery and manufactured equipment.
Special conditions where they differ from the General Conditions
shall over-ride the later.
SPECIAL CONDITIONS
1.

Definitions:

(a) "Work" means all the works specified or set forth and
required in and by the said specification, drawing and schedule as
hereto annexed or to be implied therefrom or incidental thereto, or to
be hereafter specified (being in conformity with the said original
specifications drawing and schedule) and also in such additional
instructions and drawing not being conformity as aforesaid as such
from time to time during the progress of the work hereby contracted
for be supplied by the purchaser.
(b) "Test" means such test or tests as are prescribed by the
specifications to be made by the purchaser, or his nominees, after
erection at site before the plant is taken over by the purchaser.
2. Performance of Work: The work shall be performed at the
place or places named in the tender or at such other place or places
as may be approved by the purchaser.
3. Specification: If the Contractor shall have any doubt as to
the meaning of any portion of the conditions or of the specifications
/drawing or plants he shall before submitting the tender set forth the
particulars thereof and submit them to the purchaser in writing in
order that any such doubt may be removed.
4. Mistake in Drawing: The contractor shall be responsible
for and shall pay for any alteration of the work due to any
discrepancies, errors or omissions in the drawing or other particulars
supplied by him whether such discrepancies, errors or omissions be
not due to inaccurate information or particulars furnished to the
contractor on behalf of the purchaser. If any dimension figured upon a
drawing or plan differs from those obtained by scaling the drawing or
plan the dimensions as figured upon the drawings or plan be taken as

correct.
No
alterations,
amendments,
omissions,
additions,
suspensions, or variations of the work (thereinafter referred to as
"Variation") under the contract, as shown by the contract drawing or
the specification shall be made by the contractor except as directed in
writing by the Inspector but the Inspector shall have full power subject
to the Proviso hereinafter contained from time to time during the
execution of the contract, by notice in written to instruct the contractor
to make such variation without prejudice to the contract and the
Contractor shall carry out such variation: and be bound by the same
conditions, so far as applicable as thought the said variation,
occurred in the specification. If any suggested variation would, in the
opinion of the Contractor, if carried out, prevent him from fulfilment
any of his obligations or guarantees under the contract he shall notify
the Inspector thereof in writing and the Inspector shall decide
forthwith whether or not the same shall be carried out and if the
inspector confirms his instructions the Contractor's obligations and
guarantee shall be modified to such an extent, as may in the opinion
of the Inspector be justified. The differences of cost if any occasioned
by any such variations, shall be added to or deducted from the
contract price, as the case may be. The amount of such difference if
any shall be ascertained and determined in accordance with the rates
specified in the schedules of prices so far as, the same may be
applicable, and where the rates are not contained in the said
schedules or not applicable .they shall be settled by the Purchaser
and Contractor jointly. But the Purchase shall not become liable for
the payment or any charge in respect of any such variations unless
the Instructions for the performance of the same shall have been
given in writing by the Inspector,
In the event of the Inspector requiring any variation, such
reasonable and proper notice shall be given to/the Contractor as will
enable him to make his arrangements accordingly and in cases
where goods or materials are already prepared or any design,
drawing or patterns made or work done requires to be altered, a
reasonable sum in respect thereof, shall be allowed by the
purchaser:
Provided that no such variations shall, except with the consent
in writing of the contractor be made as will involve an increase or
decrease of the total price payable under the contract by more than
two per cent, thereof.

In any case in which the contractor has received instructions

from the Inspector as to carrying out the work which either then or
later, will in the opinion of the contractor, involve a claim for additional
payment the contractor shall as soon as reasonably possible after
receipt of the instruction aforesaid, advise the Inspector to that effect.
5. Obligation to carry out Inspector's instructions: The
contractor shall also/satisfy the Inspector that adequate provision has
been made (i) to carry out his instructions fully and with promptitude
(ii) to ensure that parts required to be inspected before use are riot
used before inspection and (iii) to prevent rejected part being used in
error, where parts rejected by the Inspector have been rectified or
altered, such parts shall be segregated for separate inspection and
approved before being used in the work.
6. Responsibility for completeness: Any fittings or
accessories which may not be specifically mentioned in the
specifications but which are usual or necessary and to be provided
by the contractor without extra charge and the plant must be
complete in all details.
"In all cases where the contract provided for tests on site the
purchaser, except where otherwise specified shall provide free of
charge such labour, materials, fuels, stores, apparatus and
instruments as may be required from time to time and as may
reasonably be demanded to efficiently to carry out such tests of the
plant, material or workmanship in accordance with the contract.
In the case of contracts requiring electricity for the completion
of the works and for tests on sites such electricity when available
shall be supplied free to the contractor at the pressure of ordinary
supply. Unless otherwise specified, the purchaser will supply free of
charge to the contractor unskilled labour timber stores and lifting
tackle necessary for the erection of the plant and all consumable
stores including fuel and lubricating oils required during erection,
setting to work and testing the plant. The contractor shall provide (1)
skilled labour (2) tools and any other equipment which may be
necessary.
7. Supervision: The contractor shall provide adequate
supervision at all stages of the work and examine all parts for
accuracy before erection is commenced. He shall also provide
facilities and space satisfactory to the Inspector for lying out for his

inspection any parts to be used in the work at such stage of

manufacture as he may direct.
8. Inspection: The Contractor shall inform the Inspector in
writing when any portion of the work is ready for inspection, giving
him sufficient notice to enable him to inspect the same without
retarding further progress of the work. No portion of the work shall be
considered completed in accordance with the terms of the annexed
tender until the inspector shall have certified in writing that it has
been inspected, and approved by him. The expenses incurred in
sending the Inspector to carry out inspection and or tests at the place
agreed upon in the contract will be defrayed by the Purchaser,
provided that the results are satisfactory and in accordance with the
terms of the contract. In the event of the inspection and/or tests
proving unsatisfactory and resulting in the non-acceptance of the
plant/structure or any portion thereof, the cost of such inspection
and/or tests (including the travelling and hating expenses incurred, if
any) or such portion thereof as may be determined by that officer,
shall be borne by the Contractor.
9. Inspection in the country of supply: In cases of
materials or parts intended to be imported from outside Pakistan and
requiring inspection in the country of supply, the demand for
inspection shall be submitted by the contactor to the Inspector in the
form prescribed by the Inspector who will countersign and forward it
to the Inspector duly appointed by the Purchaser in the country of
supply. The demand for inspection shall he in respect of materials or
parts intended for use in execution of work specifically included in the
contract, and shall be given particulars of the materials or parts to be
inspected.
10. Final tests: If required by the Purchaser, all tests
necessary to ensure that the plant, machinery or equipment complies
with the particulars and guarantees shall be carried out at the
Contractor/Sub-Contractor's premises. Should, however, it be
necessary for the final tests as to performance and guarantees to be
held over until the plant is erected at site, they shall be carried out
within one month of the completion of erection. Should the results of
these tests not come within margin specified, the tests shall, if
required, be repeated within one month from the date the plant is
ready for retests and the contractor shall pay to the purchaser all
reasonable expenses to which he may be put by such tests.
11. Rejection of defective plants: If the completed plant, or

any portion thereof, before it is taken over under clause 17 be

defective, or fail to fulfill the requirements of the contract, the
Inspector shall give the contractor notice setting forth details of such
defects or failure, and the contractor shall forthwith make the
defective plant good, or alter the same to make it comply with the
requirements of the contract. Should he fail to do so within a
reasonable time, the purchaser may reject and replace at the cost of
the contractor the whole or any portion of the plant, as the case may
be, which is defective or fails to fulfill the requirements of the
contract. Such replacement shall be carried out by the purchaser
within reasonable time and at a reasonable price and where
reasonably possible to the same particulars -and under competitive
conditions. The contractor's full and extreme liability under this clause
shall be satisfied by the payment to the purchaser of the extra cost, if
any such replacement, delivered and/or erected as provided for in
the original contract, such extra cost being the ascertained deference
between the price paid by purchaser under the provision mentioned
above, for such replacement and the contract price for plant so
replaced, and the repayment of any sum paid by the Purchaser to the
contractor in respect of such defective plant. Should the purchaser
not so replace the rejected plant within a reasonable time, the
contractor's full and extreme liability under this clause shall be
satisfied by the repayment of all moneys paid by the purchaser to
him in respect of such plant.
In the event of such rejection the purchaser shall be entitled to
the use of the plant in a reasonable and proper manner for a time
reasonably sufficient to enable him to obtain other replacement plant.
During the period the rejected plant is used commercially the
contractor shall be entitled to a reasonable sum as payment for
such use.
12. Replacement of defective work or material: If during
the progress of the work, the purchaser or his representative shall
decide and notify in writing to the contractor that the contractor has
executed any unsound or imperfect work, or has supplied any plant
or materials inferior in quantity or quality to those specified, the
contractor on receiving details of such defect or deficiency shall
otherwise within such time as may be reasonably necessary for
making it good, proceed to alter, reconstruct or remove such work or
supply fresh materials upto the standard of the particulars and in
case the contractor shall fail to do so the purchaser may on giving the

contractor seven days' notice in writing of his .intention to so do,

proceed to remove the work or materials complained of and at the
cost of the contractor perform all such work or supply such materials,
provided that nothing in this clause shall be deemed to deprive the
purchaser of or effect any rights under the contract which he may
otherwise have in respect of such defect or deficiencies.
13. Appeals: If the contractor desires to appeal against the
decision of the Inspector against the rejection of any work as not
being in accordance with the contract he shall appeal to the Chief,
Purchase Officer, Government of the Punjab, Lahore within 14 days
after the Inspector's decision and if any appeal is so preferred
the decision of the Chief Purchase Officer shall be final and
conclusive.
14. Time and date of completion of the work is the
essence of the contract: The time and date stipulated in the tender
for completion of the work shall be deemed to be the essence of the
contract. In case of delay the contractor shall in addition to other
liabilities mentioned in the General Conditions of Contract be liable
for all cost of inspection which may be incurred after the date on
which the work ought to have been completed and in the event of the
contractor's failure to complete the work within the period prescribed
for such completion the purchaser shall be entitled to withhold any
payments until the whole of the work has been completed and to
recover from the Contractor a sum of 2% of the total contract price of
the work for each and every month or part of a month during which
the completion of the work may be delayed. But if the delay shall
have arisen from any cause such as strikes, lockouts, fire, accident,
riot, the purchase may allow such additional time as he may consider
to have been required by the circumstances of the case admit as
reasonable ground for further time the purchaser wills.
15. Transport and responsibility for breakage on rout:
Unless otherwise specified, the consignee will take delivery of the
plant from railway authorities at the railway station named in the
schedule, he will undertake the transport of the plant from the railway
station to the site and he will bear the cost of the handling and
transportation necessitated but the contractor will be responsible for
any damage which may be caused to the plant during transit to site
and should ensure the plant at his own cost uptill the time it is taken
over as in clause 17.
16.

Taking-over: When all performance-tests called for by

the particulars have been successfully carried out before shipment

the plant shall be accepted and taken over when it has been
satisfactorily put into operation on site, or within one month of its
being ready to be put into operation whichever shall be the earlier
and the Inspector shall forthwith issue a Taking Over Certificate.
In the event of final or any outstanding tests being held over
until the plant is erected, such Taking Over Certificate shall be issued
subject to the results of such final or outstanding tests which shall be
carried out in accordance with clause 11.
When the particulars call for tests on site, plant shall be taken
over and the Taking Over Certificate issued immediately such tests
have been satisfactorily carried out.
The Inspector shall not delay the issue of any Taking Over
Certificate contemplated by this clause on account of minor defects in
the plant which do not materially affect the commercial use thereof,
provided that the contractor shall undertake to make good the same
in due course.
17. Guarantee against, defects: For a period of 12 calendar
months after the plant has been taken over under clause 17, the
contractor shall be responsible to the extent in this clause expressed
for any defects that may develop under the condition provided for by
the contract and under proper use, arising from faulty materials,
design or workmanship in the plant or from faulty erection of plant by
the contractor but not otherwise and shall remove such defects at his
own when called upon to do so by the purchaser who shall, state in
writing in what respect the portion is faulty.
If it became necessary for the contractor to replace or renew
any defective portion of the plant under this clause, the provisions of
this clause shall apply to the portion of the plant so replaced or
renewed until the expiration of six months from date of such
replacement or renewal or until .the end of the above-mentioned
period of 12 months whichever maybe the later. If any defects be not
remanded within reasonable time the purchaser-'may proceed to do
the work at the contractor's risk and expense, but without prejudice
to any other rights which the purchaser may have against the
contractor in respect of such defects.
If the replacement or renewals are of such a, character as may
affect the efficiency of the plant, the, Purchaser shall have the right
to give to the contractor within one month such replacement or

renewal notice in writing that tests on completion will be carried out.

Should such tests show that the plant sustains the guarantees given
in the contract; the cost of the tests shall be borne by the purchaser.
Should the guarantee not be sustained, the costs of the tests shall
be borne by the contractor.
All inspections, adjustments, replacements or renewals carried
out by the contractor during the maintenance period shall be subject
to the same conditions as the contract.
Until the final certificate shall have been issued, the contractor
shall have the right of entry, at his own risk and expense, by himself
or his duly authorised representative, whose names shall have
previously been communicated, in writing to the purchaser at all
reasonable working hours upon all necessary parts of the works, for
the purpose of inspecting the working and the records of the plants
and taking notes therefrom, and if desired, at his own risk and
expense, making any tests subject to the approval of the purchaser
which shall not unreasonably be withheld.
18. Inability to perform contract: Should the contractors
preparation for the commencement of the work, or any portion of it or
his subsequently rate of progress be from any cause whatever, so
slow that in the opinion of the Inspector which shall be conclusive the
contractor will be unable to complete the work or any portion thereof
as agreed upon, or should he not have the work ready for delivery in
conformity with the contract or should he neglect to comply with any
directions given to him by the Inspector or in any respect fail to
perform the contract, the purchaser shall have power to declare the
contract at an end, in which eases the contractor shall be liable for
any expense, loss or damage which the purchaser or Indentor may
incur or sustain by reasons of, or in connection with the contractor's
default.
19. Sub-letting contract: The contractor may, with the
written permission; of the purchaser sub-let/assign a portion or
portions of the contract for minor details, or for any part of the work of
which the makers are named in the contract, provided that any such
consent shall not relieve the contractor from any obligation, duty or
responsibility under the contract.
20. Provision of Fencing light, etc.: The contractor shall at
all times provide sufficient fencing notice board light and watchman
to protect and warn the public and guard the works arid in default

thereof, purchaser may provide such fencing, notice boards, light and
watchman as he may deem necessary and charge the cost thereof to
the Contractor.
21. Access to site and work on site: Suitable access to
and possession of site shall be afforded to the contractor by the
purchaser in reasonable time, and the purchaser shall have all such
foundation as are to be provided by him ready when required by the
contractor. Where a crane is available, its safe lifting capacity shall
be stated in the specification and it shall be available/for free use of
the Contractor until the plant is taken over.
The work, so far as it is carried out on the purchaser's
premises shall be carried out at such time as the Purchaser may
approve, and so as to interforce unreasonably with the conduct of
the Purchaser's business, but the Purchaser shall give the
Contractor all reasonable facilities for carrying out the work.
The contractor shall be responsible for the correctness of the
positions, levels and dimensions of the works, according to the
drawings, notwithstanding that he may have been assisted by the
Purchaser or his representative in setting out the same.
22. Deferring Shipments: If the Purchaser shall have
notified the Contractor in writing that the former is not ready to take
delivery, no plants or materials shall be forwarded until intimation in
writing shall have been given to the Contractor by the Purchaser that
he is ready to take delivery.
23. System of payment: Unless otherwise agreed between
the Purchaser and the Contractor, payment for delivery of stores will
be made by the Accountant-General, Punjab/Director-General, Audit
& Accounts (Works), Punjab, Lahore as follows, by cheque on State
Bank of Pakistan, Lahore:(i)

80 per cent, of contract price of each consignment

delivered to the-consignee on production of copy Nos. 1,
2 & 5 of the preliminary Inspection Notes and receipt
certificate of the consignee.

(ii)

20 per cent, of the contract price of the plant plus the cost
of erection, if any, on final inspection and test, or
alternatively at the contractor's option the full 100 per
cent, after erection on final inspection and test on
production of copy No. 1, 2 & 5 final inspection notes and
receipt certificate of the consignee.

In addition to his other remedies under the law and those

conditions, the purchaser shall have lien on each consignment in
respect of which 80% has been paid to secure repayment of this
amount and recovery of any sum due from the Contractor, should the
plant not be taken over under clause 17: Provided that in cases
where a preliminary inspection of the plant had been carried out, if
the erection and final inspection and test of me plant at site is
delayed for any reasons for which the purchaser is responsible, 10
per-cent of the contract price of the plant shall become
repayable after the expiry of four months from the date of arrival
of the last consignment at site, the remaining 10% being payable
after erection/ and test and acceptance of the plant by the Inspector.
In respect of non-erection contracts, the system of payments
stated in the General Conditions shall apply.
24. Liability under the Workmens Compensation Act:
The contractor shall at all times indemnify the purchaser against any
claims which may be made under the Workmen's Compensation Act,
1923, or any statutory modification thereof otherwise for or in respect
of any damages or compensation payable in consequence of any
accident or injury sustained by any workman or other person whether
in the employment of the contractor or not.
25. Regulations of Local Authorities: .The purchaser shall,
throughout the continuance of the contract and in respect of all
mattes arising in the performance thereof, serve all notices and
obtain consents/ way leaves, approvals and permissions required in
connection with the Regulations and Bye-laws of the Local or other
authority which shall be applicable to the works.
Any work of an electrical nature to be executed under the
contract shall comply with the provisions of the Electricity Act, 1910,
as adopted by Government of Pakistan and the rules thereunder, for
the time being in force.
Any Steam boilers forming part of this contract, shall comply with the
Boilers Act, 1923, as adopted by Government of Pakistan and the
rules thereunder, for the time being in force.
STANDARD BREAK CLAUSE
1.
The Purchaser shall in addition to his power under other
clauses to determine this contract have power to terminate his liability
thereunder at any time by giving three months (or such shorter period
as may be mutually agreed) notice in writing to the contractor of the

purchaser's desire to do so and upon the expiration of the notice, the

contracts shall be determined without prejudice to the rights of the
parties accrued to the date of determination but subject to the
operation of the following provisions of this clause.
2.
In the event of such notice being given, the purchaser
shall be entitled to exercise as soon as may be reasonable, within
that period the following powers or any of them:(a)

To direct the 'contractor to complete in accordance

with the contract all or any articles, parts of such
articles, or components in course of manufacture at
the expiration of the notice and to deliver the same
at such rate of delivery as may be mutually agreed
on or in default of agreement at the contract rate. All
articles delivered by the contractor in accordance
with such directions and accepted shall be paid for
at a fair and reasonable price assessed on the
basis of the contract price when it exists.

(b)

To require the contractor on receipt of the notice of

termination (i) immediately to take such steps as will
ensure that the production rate of the articles
specified in the schedule and parts thereof is
reduced as rapidly as possible (ii) as far as
possible, consistent with (i) above to concentrate
work on the completion of parts already in a partly
manufactured state (ii) to terminate on the best
possible terms such orders for materials and parts
bought out in a partly manufactured or wholly
manufactured state as have not been completed
observing in this connection any directions given
under paragraphs (a) and (b), (i) and (ii) above, as
this may be possible.

3.
In the event of such notice being given provided the
contractor has reasonably performed all the provisions of the contract
binding him down to the date of the notice.
(a) The purchaser shall take over from the contractor at a fair
and reasonable price (assessed on the basis of the contract price of
the completed articles) all unused and undamaged materials bought
out components and articles in course of manufacture in the
possession of the contractor at the expiration of the notice and

properly provided by or supplied to the contractor for the performance

of this contract except such material bought out component and
articles as the contractor shall with the concurrence of the purchaser
to retain:
Provided that in, case the material and/or the components are
supplied to the contractor through the intervention of the purchaser or
on his behalf.
The said fair and reasonable price shall be assessed on the
basis of the Court price of such materials and/or components; and
If the contractor elects to retain any materials bought out
component and articles as in this clause provided he shall settle all
claims of the supplier in respect of the materials and /or components
supplier to him as aforesaid, including any claims to any extra charge
(if the original stipulated terms had been concessional), and shall
keep the purchaser indemnified against the same.
(b) The contractor shall deliver in accordance with the
direction of the purchaser all such unused and undamaged materials,
bought out components and articles in course of manufacture (except
as aforesaid) taken over by or previously belonging to the purchaser
and the purchaser shall pay to the contractor fair and reasonable
handling and delivery charges therefor.
(c) The purchaser, shall indemnify the contractor against any
commitments liabilities or expenditure which in the opinion of the
purchaser are reasonably and properly chargeable by the contractors
in connection with the contract to the extent to which the purchaser is
satisfied that such commitments, liabilities or expenditure would
otherwise represent an unavoidable loss by the reason of the
termination of the contract:
Provided that in the event of-the contractor not having
observed any direction given to him under sub-clause (2) thereof the
purchaser shall not be liable under this sub*clause to pay any sums
in excess of these for which the purchaser would have been liable
had the contractor observed that direction.
4.
If in any particular case, exceptional hardship to the
contractor
should arise from the operation of this clause, it shall be open to the
contractor to refer the circumstances to the Chief Purchase Officer
who on being satisfied that such hardship exists, shall make such
allowance, if any, in his opinion is reasonable.

5.
The contractor shall in any substantial order of subcontract placed or made by him in connection with or for the
purposes of this contract take power by securing the acceptance of
the sub-contractor to terminate such order of sub-contract in the
event of the termination of this contract by the purchaser, under this
clause upon the terms of the foregoing sub-clauses of this clause and
save only that:
(a)

the name of the contractor shall be substituted for

the purchaser throughout except in sub-clause 3 (a)
where, it occurs for the second and third time.

(b)

the period of the notice of the termination shall be

two months (or such shorter period as may be
mutually agreed upon)
BOOK EXAMINATION CLAUSE

The contractor shall whenever required, produce or cause to be

produced for examination by any Government Officer authorised in
that behalf any cost, or other account, book of account, voucher
receipt letter, memorandum, paper or writings or any copy of or
extract from any such document and also furnish information and
returns verified in such manner as may be required in any way
relating to the execution of this contract or relevant for verifying on
ascertaining the cost of execution of this contract.

PR-24

ANNEXURE PR-XXIV

PERFORMANCE BOND
Form of Performance Bond
SURETY
PENAL

SUM OF
BOND

(Express in words
and figures)

Date of Bond Executed

Contract No

Date of
Contract

KNOW ALL MEN BY THESE PRESENTS THAT, We, the

PRINCIPAL & SURETY above-noted, are held and firmly bound
unto the Governor of Punjab, Pakistan, through the Chief Purchaser
Officer, Punjab, Pakistan, in the penal sum of the amount stated
above, for the payment of which sum well and truly be made, we
bind ourselves, our heirs, executors, administrators and successors,
jointly and severally, firmly by these presents.
THE CONDITIONS OF THE OBLIGATION IS SUCH, that
whereas the Principal entered into a certain contract with the
Governor of the Punjab, number and date as shown above and
thereto attached.
NOW THEREFORE, if the Principal shall well and truly
perform and fulfil all the undertakings covenants, terms, conditions,
agreements of the said contract during the original term of said
contract and any extensions thereof that may be granted by the
Chief Purchase Officer, Punjab, Pakistan with or without notice to
the surety, and during the life of any guarantee required under the
contract, and shall also well and truly perform and fulfil all the
undertakings, covenants, terms, conditions and agreements of any
and all made, notice of which modification to the surety being
hereby waived, then this obligation to be void, otherwise to remain
in full force and virtue till ___ IN WITNESS THEREOF, the above
bounder parties have executed this instrument under their several
signatures on the date indicated above, the seals, name and
corporate seal of each corporate party being hereto affixed and
those presents duly singed by its undersigned representative,
pursuant to authority of its governing body.
In presence of Witness

INDIVIDUAL PRINCIPAL

1.

_______________ as to _______________ (Seal)

2.

_______________ as to _______________ (Seal)

3.

_______________ as to _______________ (Seal)

4.

_______________ as to _______________ (Seal)

1.

_______________ as to _______________ (Seal)

2.

_______________ as to _______________ (Seal)

WITNESS

TITLE
CORPORATE SURETY
Business Address
-------------------------------Affix Corporate Seal
TITLE
The rate of premium of this bond is ____________ per thousands.
Total amount of premium charged ________ (The above must be
filed by Corporate Surety).
CERTIFICATE OF CORPORATE PRINCIPAL
I ________________certify that I am the ____________
Secretary of the Corporation named as Principal in the Bond, that
____________ who signed the said bond on behalf of the Principal,
was then ____________ of the said Corporation, that I know his
signature, and his signature thereto is genuine, and that said bond
was duly signed, sealed and attested for and on behalf of the said
Corporation by authority of its governing body.
(CORPORATE)
____________
(Seal)

PR-25
ANNEXURE PR-XXV
INSTRUCTIONS REGARDING LETTER OF CREDIT CASES
(i)

L/C request should invariably be sent to AccountantGeneral, Punjab/Director-General Audit & Accounts,
(Works), in triplicate. These copies should be clear and
legible, otherwise the same may be returned by the State
Bank of Pakistan.

(ii)

L/C request should be sent to the State Bank through

Accountant-General, Punjab/Director-General Audit &
Accounts (Works) well in time so that it should be
established keeping in view the date of shipment/validity
given in the L/C request. Similarly the L/C request should
be sent well in time of the last date of the registration of
foreign exchange amount against the shipping period of
stipulated therein.

(iii)

L/C request should contain complete address of the

beneficiary.

(iv)

The objection raised by the State Bank of Pakistan on

L.C. Request/Shipping Documents must be dealt with
promptly and the State Bank informed within three days of
the receipt of the objections.

(v)

Whenever, the stores are required to be shipped/

delivered by post parcel, there is no need of calling for
bail of Lading. It should be clearly laid down in the A/T as
well as L/C request that the stores are required to be
dispatched by post parcel.

(vi)

The name of the Inspection Authority should be clearly

mentioned in the A/T as well as L/C request.

(vii)

The amount of L/C should always be mentioned in figures

as well as words.

(viii)

Where the amount of L/C is desired to be increased the

validity of L/C should always be extended suitably.

(ix)

Where any increase/decrease in the L/C amount is

demanded it should be routed through the Accountant
General, Punjab/Director-General Audit & Accounts
(Works).

(x)

Where

any

extension

in

the

shipment/validity

is

demanded, it should be made well in advance of the

expiry of the extended date of shipment/validity.
(xi)

The authority to change the amount to be increased in

foreign exchange allocation for the shipping period in
question should be mentioned in the letter demanding
increase in the L/C amount.

(xii)

The amendment letter of L/Cs should be sent in triplicate

like the original L/C request.

(xiii)

In correspondence with the State Bank, their reference

should always be quoted to avoid delay in the disposal of
cases.

(xiv)

Amendments other than those of increase/decrease in the

L/C amount on extension in shipment/validity may be sent
direct to the State Bank.

(xv)

Request for extension in date of shipment/validity should

be dealt' with promptly.

(xvi)

L/C register as per PR-XXXIII to watch the progress of

L/C should be maintained.
---------------------

PR-26

ANNEXURE PR-XXVI

Subject: Acknowledgement of the Contract

The Advance Contract/Rate-Contract/Running Contract
No.________ dated ________________
has been received by me/us and the work is taken in terms
thereof.

Place _______________
(Date of receipt) ___________
Note:

Signature of the Contractor

The non-receipt of this acknowledgment shall not have any

effect on this contract. It will be the duty of the contractor to
furnish this acknowledgment to the purchaser for such and
every contract received by him.
------------------

PR-27

ANNEXURE-XXVII

CHIEF PURCHASE OFFICER ________________ DEPARTMENT

GOVERNMENT OF PUNJAB INSPECTION CERTIFICATE
1.

Inspection Certificate No ______ Date _____ Copy No__

2.

Contract or Supply order No. __________ Date ________

3.

Contractor's name and address_____________________

4.

Indentor _______________________________________

5.

Indent No _______________ Date __________________

6.

Consignee _____________________________________

7.

Stores tendered for inspection on ___________________

8.

Stores inspected on _____________________________

9.

Delivery

in

part

or

Full

_____

_______________________
10.

Details of Stores inspected as below and on __________

Continuation Sheet attached (Give total number of the

Continuation Sheets).
Item no
of
Contract

Description Accounting Tendered

of Stores
Unit

Rejected Accepted

Total
Stamps
Accepted as
under
and
remarks
if any

Note:
A line shall be drawn or typed immediately after the last
item under the column "Description of Stores and "number" of items
inspected shall be recorded in figure and words. This is to prevent
unauthorised additions being made.
Station __________

Signature ____________

Date

__________

Designation __________

RECEIPT CERTIFICATE
(To be completed by the consignee)
1.

Certified that the stores as accepted on the reverse and

in the ________ Continuation Sheets attached have been
received in good condition subject to the remarks at -3
below __________.

2.

The stores have been brought to account under Receipt

Voucher No. ___

3.

Details of recoveries proposed by the consignee in

respect of deficiency breakage and/or freight, etc., which
should be made from the contractor under the terms of
the Contract.

Item

Reason

Amount

Item

Reason

Amount

Station _______ Dated _______

Signature __________

Circle of Area __________

Designation________

DISTRIBUTION OF COPIES

Note

1.

Payment Officer Copy No. 1.

2.

Payment Officer Copy No. 2.

3.

Contractor's Office Copy No. 3.

4.

Consignee's Copy No. 4.

5.

Additional Copy for Payment Office Copy No. 5.

6.

Purchase Office Copy No. 6.

7.

Inspector's Office Copy No.7.

8.

Consignee's Advance Information Copy No. 8.

9.

Indentor's Office Copy No. 9.

(1)Copies Nos. 1,2,3,4 and 5 are to be handed over to the

Contractor
and Copies Nos. 6, 8, and 9 are to be dispatched by the
Inspector to the concerned Offices.
(2)For total rejection only Copies Nos. 3, 6 and 7 are to be
issued.
(3)Copies Nos. 3, 4, 6, 7 and 8 will be issued when payment is
not to toe made by the A.G. Punjab, Lahore.
------------

PR-28

ANNEXURE XVIll
INDEMNITY BOND

TO
THE GOVERNOR OF PUNJAB,
LAHORE.
Sir,
In consideration of your having paid to us Rs. __ being the
amount against Indent/Contract the payment on representing the
value of stores supplied by us to ______ against Indent/Contract No.
_____ dated ______ placed on behalf of _______ the payment on
which sum is subject to the approval of the said stores by the
consignee, I hereby agree to indemnify you ____ against all losses or
claims whatsoever, in respect of the said goods that may arise due to
the rejection of the said stores by the consignee or due to shortage
within the entire period of validity of this Indemnity Bond which shall
be valid for one year initially from the date hereof.
I further agree to extend its validity if so desired by the Chief
Purchase Officer, for such period or periods as I may be required to
do so.
Yours faithfully,
Signature of the Contractor
Address
Station ______________
Date ________________
1.

Witness ______________

2.

Witness ______________

(Rupees
In consideration of having paid to us Rs. _____ (Rupees _____
only) being the amount representing our commission payment in
respect of stores supplied by us/to the ___________ against Indent
No. _____ dated and Chief Purchase Officer _________ Lahore.
Contract No. dated ______ placed on behalf of the _________
hereinafter called the consignee the payment of this sum is subject to
the approval of the said stores by the consignee. We hereby
indemnify you against all loses or claims whatsoever, in respect of the
said goods as may arise due to rejection by the consignee of the said
goods as may arise due to rejection by the consignee or due to
shortage within the entire period of this Indemnity Bond which shall
be valid for one year initially from the date hereof.
We further, agree to extend its validity if so desired by the
Chief Purchase Officer ____Department, Government of the Punjab,
for such period or periods as we may be required to do so.
Yours faithfully
Station ____________
Date ______________
1.

Witness ____________

2.

Witness ___________

PR-29

ANNEXURE-XXIX
CHIEF PURCHASE OFFICER
______ DEPARTMENT GOVERNMENT
OF PUNJAB
Dated Lahore the ___________

TO
M/s. ____________
________________
________________
Subject:

REGISTRATION
CONTRACTOR

OF

THE

FIRM

AS

APPROVED

Reference your letter No _____ dated _____ on the subject

noted above.
As desired by you, Form PR-XXX alongwith three copies of
Treasury Challans duly signed are sent herewith. The registration fee
of Rs. 1,000/- which is not refundable/transferable (in any case)
should be deposited by your firm/company into Government
Treasury/State Bank of Pakistan in favour of Chief Purchase Officer
______ Department, Government of the Punjab, Lahore under
the__________. The form duly completed alongwith the receipted
Treasury Challan and the necessary documents in support of your
case should be submitted to this office for further necessary action.
The application for registration shall be entertained subject to:
(a)

The firm produces a Certificate from their Bankers that

they have sufficient financial sources to handle contracts
of a value of rupees five lacs and above.

(b)

In respect of stores of imported origin the application

should be registered with CCI&E and the direct importer
of the store.

(c)

The firm should be in regular business, and registered

with Income Tax Department for at least three years for
the item for which registration is applied for.

(d)

In respect of stores manufactured locally, only

manufacturers of repute duly sanctioned by the
Government are considered for registration and where

registration is applied for as Sole Distributor of the

local manufacturer of the agency documents shall be
produced only with a certificate from the said
manufacturer as under;
"This is to certify that we are a duly registered unit for the
manufacture of __________and we undertake to supply/
manufacture the stores strictly in accordance with
specifications which may be prescribed for the supply of
the said items other than sophisticated stores". In case of
machinery and equipment of imported origin only
accredited Sole Agents/authorised. Agents shall be
eligible provided the agent produces agency documents
duly attested by the Embassy concerned. Application
without attestation of the Embassy shall in no case be
entertained. The local agent may also have to satisfy the
purchaser about the availability of after sale service and
workshop facilities before application is considered.
(e)

Where manufacturers abroad do not export their products

directly, the agency documents shall be furnished in
respect of the business house through which these
exports are handled duly attested by the Embassy
concerned.

(f)

In case of local manufacturers separate registration would

be granted after the purchaser is satisfied that the said
manufacturer has the requisite testing and quality control
equipment, to ensure supply of stores of standard
specifications. The applicants are advised in their own
interest to satisfy themselves that he fulfil the above
requirements before depositing the registration fee
alongwith their application as the said fee is not
refundable.
-------------------------

PR-30

ANNEXURE-XXX

Registration Fee
Rs 1,000.00 Not
Refundable
CHIEF PURCHASE OFFICER
__________DEPARTMENT
GOVERNMENT OF THE PUNJAB
Application form for Registration as approved Suppliers to the
Chief Purchase Officer ______ Department.
1.

Name of the firm.

_____________

2.

Address of the Office.

_____________

3.

Telegraphic Address

_____________

4.

Telephone No. (if any)

_____________

5.

Address of Branch Office (if any)

_____________

6.

Agent/Sub-Agents in the Country (if any)_____________

7.

Bank Reference Name and full

address of your
_____________
(i)

Proprietor

_____________

(ii)

Managing Agent/Managing Director

_____________

(iii)

Directors

_____________

8.

Passport Size Photo of the

Proprietor/ Managing Director.
_____________
_____________

9.

Name of person or persons in whose

name the account is maintained.
_____________

10.

Name

of

persons/authorised/

accredited to sign correspondence

contract, etc. on behalf of the firm
(subsequent changes should' be
communicated to the Department
without loss of time).
_____________
11.

Is your firm Sole Proprietary

Partnership of a Limited Company
_____________

12.

In the case of Limited Company or

Partnership
concern,
enclose
attested copy of the Memorandum
and Articles of Association of
Partnership Deed, as the case may
be.
_____________

13.

No. and Date of the Registration

Certificate under the Companies Act,
1913 or Partnership Act (Photostat
Copy should be enclosed)
_____________

14.

Indicate Authorised Capital

_____________

15.

Indicate Paid up Capital.

_____________

16.

No. and Date of Registration

Certificate with CCI&E (Photostat
Copy should be enclosed).
_____________

17.

Income
Tax
Registration
CERTIFICATE No. & DATE (Attested
copy should be enclosed) Also
enclose copies of last three years
Assessment Order.
_____________

18.

Sales Tax Registration Certificate No.

and Date (attested Photostat copy
should be enclosed)

_____________
19.

No. and Date of Treasury Receipts

for
Registration
Fee
(Original
Treasury Receipt roust be attached).
_____________

20.

Is your firm registered as approved

Suppliers with any of the Government
Purchase Organisation (attested
copy of Registration Certificate
should be enclosed).
_____________

21.

Was your firm ever blacklisted from

any
Government
Department/
Purchase Organisation?
_____________
PARTI

INFORMATION TO BE SUPPLIED BY THE FIRM DESIRING

REGISTRATION AS (MANUFACTURERS)
1.

Name of Stores for which registration

is applied for.
_____________

2.

Exact Location of the Factory.

_____________

3.

Total Covered Accommodation.

_____________

4.

Total space occupied by the Factory.

_____________

5.

Details of Machinery Installed.

_____________

6.

No. of Operators Employed;

_____________

7.

Annual Optimum Capacity of the

Factory with values sanctioned

installed for items for

registration is applied for.

which
_____________

8.

Annual rated Capacity of the Factory

(with value) for the items applied for.
_____________

9.

Sales during the last three calendar

years (with value) of the items
applied for.
_____________

10.

Whether
Registered
under
Factories Act. (Photocopy should be
attached).
_____________

11.

Have you obtained permission of the

Provincial Government as required
under Section (3) of the West
Pakistan Industries (Establishment
and Enlargement) Ordinance, 1963,
and if so (enclose copy).
_____________

12.

In case sanction has been obtained

from
PICIC/
IDBP/DGIPS/Small
Industries
Corporation
(Please
enclose copies).
_____________
PARTII

INFORMATION TO BE SUPPLIED BY THE FIRM DESIRING

REGISTRATION AS STOCKIEST/AGENTS/IMPORTERS
1.

Name of stores for which registration

is applied for.
_____________

2.

Name
of Foreign/Indigenous
manufacturers whose agencies are

held by the applicant.

_____________
3.

Attested
Letters.

copies

of

the

Agency
_____________

4.

Territorial Limits of the Agencies.

5.

Value of Stocks held by the applicant

at the time of submitting this
application.

_____________

_____________
6.

Normal Annul Sales by the applicant.

7.

Exact location of the places where

stocks are kept.

_____________

_____________
Witness No. I
Signature __________

Signature of the Applicant

Date __________________ Name ___________________________

Date
Witness No II
Signature ____________________

Designation of the Signatory

Date ___________________ Name _______________________

Notes:1.

Only firms registered with C.C.I, and E and in regular

business for at least 3 years or the items for which
registration is desired would be considered for
registration.

2.

Only Manufacturers duly authorised and sanctioned by

the Government or recognised by Government as
Industrial Consumer would be considered for registration.

3.

Firms desiring registration as Sole Agents for distributors

for local stores should furnish documentary evidence.
PART III

Information to be supplied by the firm desiring registration as

Importer
1.

Give details of imports .made during preceding four

shipping Period (quantity and value).

2.

Indicate stock in hand of the items directly imported.

ITEMS

YALUE OF STOCK AS ON THE DATE OF

SUBMISSION OF THE APPLICATION

3.

Exact location of the place/places where stock are kept.

Witness No. I
Signature ______________

Signature of Applicant

Name and Address _______________________________________

Date __________ Name __________________________________
Witness No. II _________
Signature___________

Date ______________
Designation of the Signatory

Name and Address _______________________________________

Date ___________
--------------------

PR-31

ANNEXURE-XXX
CHIEF PURCHASE OFFICER
_______DEPARTMENT
GOVERNMENT OF THE PUNJAB
REGISTRATION CERTIFICATE
No. ___________

M/s. ___________________________________________________
_______________________________________________________
are hereby registered as approved contractors with this department
as likely suppliers of the under mentioned stores.
The, annual-renewal of this registration should be applied for on
Form XXXII by 31st July, every year on payment of Rs. 25.00 (no
refundable) in a Government Treasury as renewal fee under Head of
Account No. _________
G.I.R No ___________
Lahore

CHIEF PURCHASE OFFICER

Dated ___________

_________ DEPARTMENT
LAHORE.

N,B.The rules and regulations enforced from time to time by

this office will govern registration of firms and this office reserves the
right to cancel/modify or withdraw registration at any time without
assigning any reasons:GENERAL CONDITIONS
The registration of a firm on the list of approved contractors to
this Department does not guarantee award of any contract.
Registration of a firm is liable to be suspended/ withdrawn/
cancelled with or without blacklisting without notice for any one of the
following reasons:(i)

failure to observe at the time of submitting tenders the

instructions given in Tender Enquiries including schedule
thereto;

(ii)

failure to quote in response to invitations to tender on four

successive occasions;
(iii)

submission of four successive quotations all of which are

fifty per cent, or more above the quotations accepted;

(iv)

failure to secure any contract against twelve successive

tenders; which have been submitted by a registered firm
or during a period of three years, whichever, is earlier.

(v)

Failure to execute a contract or contracts satisfactorily;

(vi)

Any ground which, in the opinion of the Chief Purchase

Officer; renders removal of the firm's name from the list of
approved contractors.

PR-32

ANNEXURE-XXXII
CHIEF PURCHASE OFFICER
________ DEPARTMENT
GOVERNMENT OF THE PUNJAB
(Renewal of Registration)

Application for the Annual Renewal of registration of Approved

Contractors for the Financial Year ending;
1.

Registration No.
_____________

2.

Date of Registration
_____________

3.

Name of the Firm

_____________

4.

Postal address of the Firm

_____________

5.

Telegraphic address
_____________

6.

Telephone No. (if any)

_____________

7.

Name and full addresses of the

_____________
(i)

Proprietor
_____________

(ii)

Managing
Directors

Agents/Managing
_____________

(iii)

Directors
_____________

8.

Address of the Branch Office, if any

_____________
9.

Details of Tender Enquiries Please

see reverse and Contracts.
_____________

10.

Whether, your registration with any

Federal or Provincial Government
Department has taken place or has
been cancelled, if is, please give
details.
_____________

11.

No. and date of Treasury Challan for

renewal fee of Rs. 250/-(original
receipt must be attached).
_____________

12.

Latest
G.I.R.
with
Income-tax
Department (Photo copy must be
attached) duly attested.
_____________

We certify that the particulars given above are Correct to the

best of my/our knowledge and belief.
(Signature of the Contractor)
Designation of the Signatory
(Here indicate the capacity/authority of the person who has
signed this form).

9. Details of Tender Enquiries and Contracts:

Serial No. and dated of No. and date of No. and date Remarks
No.
Tenders Enquires Tender Enquires of contracts if
Received
responded
placed

Signature of Contractor
N.B
(i)

In case no Tender Enquires has been responded to by the

firm, the reason thereof, should be recorded in the
remarks column.

(ii)

In case the space provided is not sufficient separate

sheet should be attached.
----------------------------

PR-33

ANNEXURE-XXXIII
Letter of Credit Registers

1.

Contract No., Dated and value.

2.

Indent No. and date.

3.

Indentor's Name and Address.

4.

Contractor's Name and Address.

5.

Description of Stores and Quantity.

6.

L.C.'s amount against Cash/Foreign Exchange.

7.

L.C.'s amount against Barter.

8.

L.C.'s amount against Aid Credit.

9.

L.C.'s amount against Loan Credit.

10.

Name of Consignee.

11.

L.C. No. and Date.

12.

Name of Scheduled Bank.

13.

Shipment Date.

14.

Remarks.
-------------------------

PR-34

ANNEXURE-XXXIV
CHIEF PURCHASE OFFICER
_____________DEPARTMENT
GOVERNMENT OF PUNJAB
BILL FORM
Contractor's Bill No. ______
Dated _________________

(The contractor must comply with the instructions on reverse)

(1) Part/100% Payment

_____________

(2) Contractor's Name and Address

_____________

(3) Contractor's or Supply Order No. & Date

_____________

(4) Rate Running Contract No. & Date (if any)

_____________

(5) Inspection Certificate No. & Date

_____________

(6) Proof of deliver

_____________

(7) Consignee's Name & Address

_____________

Item No.

Description
of Item

Accountin
g Unit

Quantity

Total in Words

Price per
Unit

Amount
Rs.

Ps.

Total

Received Payment _____________

Payment may be made by crossed cheque for credit to our
bank account which is as follows: __________________________________________________
Bank _____________________________________________
Branch ____________________________________________
Account No. _______________________________________

Cheque may be released to our banker's authorised agent.

STAMP
Contractor's Signature

Contractor's Signature

FOR USE IN THE ACCOUNTANT-GENERAL, PUNJAB

(SUPPLY SECTION)
Voucher No.

Classification

Reason of objection
(if any)

Department fees at

Noted in O.B. Page

On Rs.

Pay Rs.

Total amount debited

Rupees

Cheque No.

Amount of bill

Inspection

Bank/ Treasury

Name of Bankers
(where necessary)
Auditor Accountant

Gazetted Officer
Examiner

Gazetted Officer

INSPECTION TO CONTRACTORS FOR THE PREPARATION

AND SUBMISSION OF BILLS
NOTE:

In order to secure prompt payments contractors are

particularly advised to pay careful attention to the terms of
the contract regarding payment and to these instructions
in preparing and submitting bills. Failure to comply with
these requirements may result in delay in payment.

1. Bill Forms (Form No. PR-34) will be obtained by the

contractors from me Purchase Officer who issued the contract.
2. The number and date of the contract or supply order must be
quoted in every bill. The number and date of the contractor's bills as
well as the contract number must be quoted in all communications
concerning the bill.
3. Bill must in all cases be submitted by the contractor to the

Accountant-General, Punjab (Supply Section), Lahore or Accounts

Office named in the contract.
4.
(a) Bills must be submitted alongwith the supporting
documents referred to in paragraph 5.
(b) Bills claiming refunds must give full reference to the
number and date of the Bills from which the deductions were
originally made.
5. In cases where any charge payable under the contract by the
purchaser has been paid by the contractor, the amount should be
included in the bill as a separate and additional item to the value of
the stores and should be supported by a cash receipt which should
accompany the original copy of the bill sent to the AccountantGeneral, Punjab (Supply Section).
6. One bill must not cover claims against more than one
contract but may include more than one Inspection Certificate
pertaining to that contract. Separate bills must be prepared for, each
consignee.
7. Bills should be prepared in triplicate.
(i)

"Original"

Accountant-General, Punjab.

(ii)

"Duplicate"

(Supply Section) copies.

(iii)

"Triplicate"

Contractors Office copy.

The Original-Accountant-General, Punjab (Supply Section)

copy and the duplicate will be submitted to the Accountant-General,
Punjab (Supply Section) or Accounts Officer named in the contract.
8.
In all cases the "Triplicate" copy of the bill will serve as
the contractor's officer copy.
9.
The original copy of the bills must bear the proper
revenue stamp if the claim is for more than Rs. 20
10. Final 100 per cent, payment bills must be, supported by
the following documents:
(a) "The Accountant-General, Punjab (Supply Section) "copy"
(Nos. 1) and (2) additional copy of the Inspection
Certificate (No. 5) duly signed by the Inspector. The
Receipt Certificate on the Inspection Certificate must also
be signed by the Consignee.

Note:

Copy Nos. 1 & 2 of the Inspection Certificate supporting

any bill" must be endorsed. "Accountant-General, Punjab
(Supply Section) Copy "and those words must be attested
in indelible pencil or ink with the signature of the
Inspector. The contractor is responsible for obtaining the
document completed in this manner and attaching it to the
bill.

(b) In the case of stores inspected abroad the certificate of

such inspection received by the contractor from abroad.
11. Progress payment bills, balance payment bill must be
supported by such proof as may be prescribed in the Contract, or
any general or special orders of the Purchaser/Government.
12. If payment is desired to be made to the contractors bank
or other parties, the endorsement must be completed in the bill and
signed separately and the word "Self scored out; in addition a powerof-attorney will be necessary in such cases, except when payment is
desired to be made to a Bank mentioned in the second schedule to
the State Bank Act and where such bank does not function as a
financing bank.
13. Payments in all cases will be made to the contractor by
the Accountant-General, Punjab (Supply Section) or Accounts
Officers named in the contract by means of crossed cheques only,
unless a specific request is made on the bill for the issue of an open
cheque.
14. If the Inspection Certificate is not received from the
inspector within 7 days of the date on which the stores were
available for inspection the contractor should bring the matter to the
notice of the Chief Purchase Officer.
15. If incases where only final 100 per cent, payment can be
made the Inspection Certificate is not received from the consignee
within a reasonable time the contractor should remind the consignee
and if necessary, bring the matter to the notice of the Purchasing
Officer.
16. If payment of a bill which is complete in all respects is not
received within a reasonable time say 15 days from the date of its
submission, the contractor should remind the Accountant-General,
Punjab (Supply Section) and failing satisfaction report the matter to
the Purchasing Officer.

17. Serious complaints should be addressed to the Chief

Purchase Officer, Government of the Punjab, Lahore.

ANNEXURE-XXXV
TOP-PRIORITY

No S.O.R.REG.(LR) 1-33/85

TIME LIMIT CASE

GOVERNMENT OF THE PUNJAB

SERVICES, GENERAL ADMINISTRATION
AND INFORMATION DEPARTMENT
Dated Lahore, the 26th March, 1985

To
1. The Chairman,
Planning & Development Board
Punjab, Lahore.
2. The Senior Member,
Board of Revenue, Punjab, Lahore
3. All Administrative Secretaries to,
Government of Punjab,
SUBJECT: DECENTRALISATION OF PURCHASE PROCEDURE
CONSTITUTION OF STANDARDISATION COMMITTEES.
Sir,
Governor/MLA has directed that the system and procedure for
procurement of Government stores in the Punjab should be
streamlined. An Inter-Departmental Standardisation Committee
headed by the Additional Chief Secretary has been set up for the
purpose of standardizing various items of machinery and stores
common to the use of all Departments. Similar Committees are also
to be set up in all Administrative Departments for the same purpose
in respect of equipment and stores peculiar only to the needs of
individual Department. As directed by the Governor, the Departmental
Committees may please be set up with the following composition.
(i)

Administrative Secretary.

(ii)

2/3 representative
of
the
end-users in the Department,
i.e.
Attached
Department
Institutions,

(iii)

2/3 Experts to be co-opted by

the Administrative Secretary. :

Chairman

(iv)

1/2 technical experts from the

private sector.

(v)

Deputy Secretary Finance.

2. The Inter-Departmental Standardisation Committee in its

meeting held on 26-3-1985 decided mat every Department should
prepare two lists, one of Stores/Equipment/Machinery common to all
departments like, vehicles, Air-Conditioners, Fans, Office equipment,
and the other list of machinery/equipment peculiar to individual
Departments. The lists may kindly be prepared in the enclosed
proforma and supplied to this Department by 29* March, 1985, at the
latest.
Your obedient servant
(M.ISMAILTAYER)
DEPUTY SECRETARY (SIMPLIFICATION)

LIST ITEMS OF COMMON ON USE BY ALL DEPARTMENTS

S.
No
1

Items of
Make/Model
stores
available
Function
Manufacturer Remarks
equipment/
with approx
machinery.
Price
2

--------------------------

IMPORTANT CIRCULARS ISSUED

BY
THE S.A. & L DEPTT
----------------No. SO R. REG. (LR) 1-33/85
GOVERNMENT OF THE PUNJAB
SERVICES, GENERAL ADMINSTRATION
AND INFORMATION DEPARTMENT
Date Lahore, the 15th May, 1985.
To,
1. The Chairman
Planning & Development Board
Punjab, Lahore.
2. The Senior Member,
Board of Revenue, Punjab, Lahore
3. All Administrative Secretaries to Government of Punjab
SUBJECT: DECENTRALIZATION OF PURCHASE PROCEDURE
AND STANDARDIZATION OF STORES PROCURED BY
VARIOUS DEPARTMENTS
Sir,
In continuation of this Department's letter of even number dated
the 26th March, 1985 and with reference to Industries and Mineral
Development Department's circular letter No. 11-8-3/80 (B), dated the
24th March, 1985 on the above subject, I am directed to state that the
Inter-Departmental Standardization Committee has standardized item
of stores/equipment, etc., of common use by all Departments
mentioned in the enclosed list which is being circulated for future
purchaser by the Departments. Addition to this list would be made by
the, Inter-Departmental Standardization Committee as and when
necessary Standardization of makes/brands of items is intended to
ensure uniformity of purchases, better maintenance and after sales
service.
2. It may be clarified that purchases shall be made in

accordance with the rules framed by the Finance Department.

Standardization of office furniture and miscellaneous items of
stationery may not be necessary. The-purchase of these items would
however, also be subject to the purchase rules under revision with
the Finance Department. Items like sewing machines, paints,
batteries, e/c., may be purchased by the departments after approval
of the Departmental Standardization Committee.
Standardization of specialized items needed by particular
departments, e.g., agricultural machinery, mining equipment medical
diagnostic clinical equipment, medicines, etc., shall be done by
Departmental Standardization Committee for guidance at various
levels of officers of the department who are authorized to make
purchase. Lists of items so standardized and Information Department
Information and record
Your obedient servant,
(M.ISMAIL TAYER)
Deputy Secretary (Simp)

IMMEDIATE

No S.O.R.REG.(LR) 1-33/85

OUT TODAY

GOVERNMENT OF THE PUNJAB

SERVICES, GENERAL ADMINISTRATION
AND INFORMATION DEPARTMENT
Dated Lahore, the 26th June, 1985.

From
Mr. Sajjad-ul-Hasan
Acting Chief Secretary
Government of the Punjab
To
1.

The Chairman,
Planning & Development Board
Punjab, Lahore.

2.

The Senior Member,

Board of Revenue, Punjab Lahore

3.

All Administrative Secretaries to

Government of Punjab.

SUBJECT: DECENTRALIZATION OF PURCHASE PRQCEDURE

AND STANDARDIZATION OF STORES PROCURED
BY VARIOUS DEPARTMENTS.
Sir,
Please refer to the following communications on the abovenoted subject:
(i)

This Department's letter No. SO. Reg (LR)-1-33/85, dated

26-3-85.

(ii)

Industries & Mineral Development Department's Letter

No. 11-8-3/80-B, Dated 24-3-85, and letter No. 11-8185/85, dated 18-6-85.

(iii)

This Department's letter No. PA/ACS-3108/85, dated 186-85.

2. Vide the above-mentioned communications all departments

were informed that the Government has decided that the purchase
procedure in Punjab was to be decentralized, and that thereafter
each department would assume full responsibility for its own
purchase. The departments were further informed that the new
purchase procedure was to come in force w.e.f. 1-7-85 and that the
Supply and Inspection Wings of the Directorate of Industries would
stand abolished with effect from the same date. The departments
were instructed to stand in complete readiness to take over their new
functions.
3. In
continuation
of
SGA&I
Department's
earlier
communications on the subject I am directed to state that, in order to
initiate and ensure a smooth switch-over to the new system, the
following matters would require your immediate and urgent attention:(a) All administrative, departments should develop a suitable
methodology based on the provisions of the draft manual
compiled by Finance Department, a copy of which is
enclosed, to ensure the timely and orderly completion of
procurement action, The fundamentals of the envisaged
decentralised set-up have been given in the draft manual
and in this respect the attention of the administrative
departments is specifically drawn to the provisions
contained in Chapter-III of the draft manual.
(b) As already instructed, vide this department's earlier
communication on the subject and the Industries &
Mineral Development Department's letter dated 18-61985, all departments should make immediate
arrangements for the transfer of record of old and current
supply cases relating to them, including Court cases from
the Supply Wing of the Directorate of Industries. It is
reiterated that this should be done on top priority basis
without fail. In fact the work relating to the transfer of
record should be completed before the Supply and
Inspection Wing stop functioning. The instructions given
in this department's earlier communication should be
carefully followed.
(c) Under the new decentralized arrangements,, each
department shall also act as a registration authority for
registration of firms dealing in stores to be purchased by
them, However, it has been decided that the registration
status of the firms as on the approved list of the

Directorate of Industries shall remain intact till such time

as the bona fides of the firms are reviewed by
departments themselves at the renewal of registration
during the next financial year. The departments should
make immediate arrangements for obtaining the
particulars of the firms dealing-in stores relating to them
from the Supply Wing of the Directorate of Industries.
This should also be done before the abolition of the
Supply Wing w.e.f. 1-7-85.
(d) The
Inter-Departmental
and
Departmental
Standardisation Committees; constituted vide SGA&I.
Department's letter, dated 26-3-1985 have, after duedeliberation, compiled/drawn up specifications in respect
to stores and equipment of common and departmental
use respectively. It must be ensured that the indentors
frame their demands on the basis of these approved,
specifications and that technical scrutiny of offers is
conducted accordingly. In case of items which are in use
in more than one department the concerned Secretaries
should consult each other before finally standardising the
specifications for these items. Precautionary notes in
respect of the purchase of sophisticated equipment have
been incorporated in Chapter-Ill of the draft manual which
should be kept in view. The draft manual contains
provisions for the price preference to be given to
indigenous products compared to imported ones. The
general principle of entering into a contract and other
consideration which need to be kept in view while
affecting purchases have been given in the draft manual
(more specifically in Chapter-V) and should be adhered
to.
(e) As already clarified in the meeting of all Secretaries held
on 14-4-85, the Liaison Officer at Karachi, meant for
making payment of custom duties/surcharge and
supervision the clearance of and forwarding of stores,
has been retained in the new set-up, although the
administrative control of the office would stand transferred
to SGA&I Department with effect from 1-7-1985. The
departments would be required to process their case
relating to the import of goods on their own and forward

copies of contracts to the Liaison Officer for clearance

from the port of entry. He would also arrange
inland transport of stores. The Liaison Officer has a
permanent interest of Rs. 7.5 million. He shall make
payments on receipt of consignments, under the rules,
and recover the amounts due from the departmental
accounts through A.G. Punjab. Detailed instructions in
this respect are contained in Chapter-VI of the
manual. The departments would have to maintain
constant and close contract with the Liaison Officer at
Karachi to avoid in occurrence of demurrage charges.
(The Liaison Officer can be contacted at Phone Nos.
551625 and 552013).
4. Formal notification abolishing the Supply and Inspection
Wings of the Directorate of Industries and transferring the
administrative control of the Liaison Officer at Karachi to Services,
General Administration and Information Department, shall be
amended, separately. Rules of Business shall be amended, similarly,
transferring the responsibility of procurement of stores to the
administrative departments. The A.G., Punjab, would be instructed
regarding the requirement of the imprest account by the Finance
Department which would also carry out an amendment in the relevant
Financial Rules.
5. Meanwhile, the departments are once again instructed to
make all administrative arrangements necessary for carrying out
satisfactorily their newly assigned functions of making their own
purchases and to arrange for immediate transfer of the entire record
relating to them from the Supply Wing of the Directorate of Industries.
Your obedient servant,
(M.1SMAIL TAYER)
Deputy Secretary (Simp)

No. S.O.S. (S&GAD) 1-33/85

GOVERNMENT OF THE PUNJAB
SERVICES, GENERAL ADMINISTRATION
AND INFORMATION DEPARTMENT
Dated Lahore, the 23rd September, 1985
From
The Additional Chief Secretary
To Government of the Punjab
To
1. The Chairman,
Planning & Development .Board,
Punjab
2. The Senior Member,
Board of Revenue, Punjab
3. All Administrative Secretaries to
Government of the Punjab
SUBJECT:

DECENTRALISATION OF PURCHASE PROCEDURE.

Sir,
During the course of series of meetings of the InterDepartmental Standardisation Committee held during the recent
past, it has been noticed that lists of specification manuals prepared
by various Departments are sketchy. The names of suppliers have
been given here and there. The specifications drawn in many cases
appear to be too lengthy to look like advertisements or copied from
brochures of various firms. The Departments were advised from time
to time to improve these lists. Now that the lists of specification
manuals of various Departments stand scrutinised by the
representative of the Chamber of Commerce & Industry, these are fit
for circulation after necessary editing.
2. In order to achieve uniformity, you are requested to please
adhere to the enclosed proforma while editing and circulating these
lists to the lower formations and audit offices.

Your obedient servant,

(M. ISMAILTAYER)
Deputy Secretary (Supply)
No. & date even:
Copy forwarded, for information to the: 1.

Accountant-General, Punjab, Lahore.

2.

Director-General, Audit & Accounts (Works), Punjab,

Lahore.

3.

P.S. to A.C.S. SGA&I Department.

4.

P.S. to Finance Secretary.

(M.ISMA1L TAYER)
Deputy Secretary (Supply).

PROFORMA
Sr. No.

Name of the
item

Brief
description
make/brand

Name of
manufacturer/
country of origin

Remarks

No. S.O. (Supply (S&GAD) 1-7/85

GOVERNMENT OF THE PUNJAB
SERVICES, GENERAL ADMINISTRATION
AND INFORMATION DEPARTMENT
Dated Lahore, the 30th September, 1985
From
The Additional Chief Secretary, Government of the Punjab.
To
1.

All Administrative Secretaries, Government of the Punjab.

2.

The Senior Member, Board of Revenue, Lahore.

Subject:

STANDARDISATION OF SPECIFICATION MANUAL

Sir,
In continuation of this Department letter of even number dated
23-9-1985, I am directed to say that proforma supplied with the
above-quoted letter may now be replaced with a new proforma
enclosed herewith. It is requested that the lists should be prepared
according to this format and placed before the .Inter-Departmental
Standardisation Committee by 6-10-1985 without fail.
2. The departments who may have already edited and
circulated the lists of specification manuals after the approval of
Inter-Departmental Standardisation Committee are also required to
prepare the list on this proforma. However, action regarding
indenting/purchase, etc., should not be held up on this account.
3. Some departments have indicated the names of supplier
firms in their lists ignoring the proforma already circulated. It may
please be particularly noted that, the names of supplier firms be
altogether deleted, from the lists of standardized items and these
lists should contain only the names of manufacturer. (For Health
Department only)
4. A list bearing No Section-06-E-N-T instruments indicates
that the names of certain selected firms have been incorporated to
give them a total monopoly for supplying equipment and machinery.
This is against the spirit of competitive procurement. This list may be
prepared afresh.
Your obedient servant,

(M. ISMAIL TAYER)

:

Deputy Secretary (Supply)

No. &-date even

A copy is forwarded for information to>
1.

P.S. to A.C.S

2.

P.S. to F.S.

3.

D.S. (AB), Finance Department.

(M. ISMAIL TAYER)
Deputy Secretary (Supply).

REVISED PROFORMA
S.No.

Code/Patent No. Nomenclature of

of the approved
the approved
item
items/range of
equipment
2

Brief
description/
specification

Model makes of
Name of the
the approved
manufacturer of
item
the approved item
(Not repeat not
suppliers)
5

Remarks

NO.S.O.R. (S & G A D) I -3,3/87

GOVERNMENT OF THE PUNJAB
SERVICES, GENERAL ADMINISTRATION
AND INFORMATION DEPARTMENT
(SUPPLY WING)
Dated Lahore, the 17th March, 1987
To,
All Administrative Secretaries in the Punjab
Perusal of certain tender notices appearing in the Press
indicates that the following directions are necessary: (i)

Departments tend to include too many details about the

specifications of items in the tender notices. This results
in lengthy .tender notice for which the Departments are
obviously paying substantial sums as advertised cost.
Details such as these can be included in the tender
documents to be issued subsequent to the advertisement
and the schedule attach to the tender document would
contain detailed descriptions and specifications of stores;

(ii)

At times as very, short period is allowed to tenderers

between the date of appearance of the tender notice in
the Press and the date of opening of tenders. Where the
stores are to be purchased from the local market, a
minimum period of 10 days and preferably 15 days
should be allowed.

(iii)

Instances have come to notice where departments have

issued tender notices for items already on rate contract
which is clearly evidence of ignorance about purchase
procedure. Appropriate and detailed instructions about
purchase procedures to the field offices of various
departments are indicated.
(KARMAN RASOOL)
Additional Secretary (Supply)
-----------------------------

No. S.O. (SUPPLY) (S & GAD) 1-42/85

GOVERNMENT OF THE PUNJAB
SERVICES, GENERAL ADMINISTRATION
DEPARTMENT
Dated Lahore, the 22nd October, 1985
To,
All Administrative Secretaries
(Chief Purchase Officer)
Government of the Punjab, Lahore
SUBJECT: DELAY IN CLEARNCE OF STORES IMPORTED FROM
ABROAD.
It has been observed that the delay in clearance of stores
imported from abroad at Karachi and Lahore sometimes occurs due
to non-supply of supporting documents to the custom authorities.
Despite repeated requests by the Liaison Officer, Karachi, the
consignees do not provide Exemption Certificate/Import Licence/
copies of Letter of Credit in time and resultantly heavy demurrage is
levied unnecessarily. In order to avoid loss to Government you are
request to instruct all consignees under your administrative control to
provide the requisite documents promptly to the Liaison Officer
(Supply). SGA&I Department, 22-B Lalazar Colony, Queens Road,
Karachi/Accounts Officer (Supply), SGA&I Department, Lahore to
enable them to get the consignment cleared through the Clearing
Agents at Karachi and Lahore in time.
(M. ISMAIL TAYER)
Deputy Secretary (Supply)
No. & date even
A copy is forwarded, for information, to the:1.

The Liaison Officer (Supply), SGA&I Department, 22-B,

Lalazar Colony, Queen Road, Karachi, with ref. to his
letter No. Pb/LO/Gen. Corr/Policy/85/1948, dated 12-1085.

2.

M/s. Cox & Kings (Agents) Ltd, 24-3/1, Jail Road; Lahore.

3.

M/s. Cox & Kings (Agents) Ltd., I.I Chundrigar Road.

Karachi.
(M. ISMAIL TAYER)
Deputy Secretary (Supply)
----------------------NO. S. O. (Supply) (S & GAD) 1-8/85 (P)
Government of the Punjab
Services, General Administration &
Information Department
(Supply Wing)

<*

Dated the 2nd November, 1987

To
All Administrative Secretaries
Government of the Punjab, Lahore
SUBJECT: PROVISION IS REQURED TO BE MADE IN THE
PURCHASE MANUAL FOR TAKING DISCIPLINARY
ACTION AGAINST ADMINISTRATIVE DEPARTMENTS
WHO FAIL TO PERFORM THEIR DUTIES IN
PROCUREMENT OF STORES.
Sir,
I am directed to inform you that it has been experienced by the
Finance Department that in many contracts Administrative
Departments had delayed the inspection of stores, issuance of
Inspection Note and late issue/release of Inspection Certificates, etc.
As a result, the contracting firms have to be allowed rebate which in
other words is a loss to the Government. Finance Minister,
Government of the Punjab, has desired that instructions may be
issued to all the Administrative Departments in the matter and a penal
clause/paragraph may be incorporated in the Purchase Manual for
taking the Government Servants concerned to task.
2.
After due consideration in the SGA&I Department, it has
been decided to request you to warn all the Inspecting Officers to be
careful in future. Any delay on their part, if noticed, would be taken
seriously and any loss caused to Government in the shape of rebate
payment to firms will be recovered from the defaulters.

Your obedient servant,

GHAIS-UD-DIN
Additional Secretary (Supply)
For Addl. Chief Secretary

Important Circular
URGENT

No BI-3(52)/70

BUDGET

Government of the Punjab,

Finance Department
Dated Lahore, the 30* October, 1985.

From
Mr. Zulfiqar Ali Shah,
Acting Secretary
Government of the Punjab,
Finance Department
To,
1.

All Administrative Secretaries to Government of the Punjab.

2.

All Heads of Attached Departments in the Punjab.

3.

the Registrar, Lahore High Court, Lahore.

4.

All Regional Heads in the Punjab.

5.

All Commissioners of Divisions in the Punjab.

6.

All Deputy-Commissioners and District and Sessions

Judges in the Punjab.

Subject:

DEPOSIT OF TENDER MONEY.

Sir,
Consequent upon the decentralization of the purchase
procedure and abolition of the Supply and Inspection Wings of the
Industries Directorate, the purchases will now be made by the
Departments concerned themselves. For this purpose each
Department will have to advertise its tenders independently if and
when they require. In order to abide any confusion/misclassification
of depositing of fee realized on account of sale of tender it has been

decided that the Tender money received on this account may please
be deposited under the following new detailed head to be opened for
the purpose under the corresponding receipt head of the department
concerned:1390-Others-1391-Fees, Fines and Forfeitures-Tender sale fee
received by Department.
Your obedient servant,
NISAR AHMAD
Deputy Secretary (Budget)
For Acting Finance Secretary
----------------------

No SOS 4 (1) /85-Part-lI

Government of the Punjab,
Finance Department
(Supply Section)
Dated Lahore, the 14th November, 1985
From
All Administrative Secretaries
To
Government of the Punjab,
Lahore.
SUBJECT: DECENTRALISATION OF PURCHASE PROCEDURE.
Sir,
I am directed to refer to this Department's circular letter No SOS.
4(1)/85- Part-II, dated the 8th October, 1985, on the above-noted
subject and to make the following clarifications for streaming the
purchase work under the decentralized system.
1. Location of Purchase Agency: The Purchase Agency of
a department could be located in the Secretariat or in the office of the
attached department (or any suitable place Outside the Secretariat).
Irrespective of the location it would function as an agency under the
Chief Purchase Officer.
2. Nomination of Senior Purchase Officer, Senior, Technical
Officer and Signature Verifying Officer:
(i)

Having regard to the quantum and nature of purchase

work, the Chief Purchase Officer of a bigger department
may nominate an officer not below the status of a Scale19 Officer of his attached department or the Secretariat to
function as Senior Purchaser Officer/The level of the
Senior Purchase Officer can be reduced by one
step/grade for departments not involved in making heavy
purchases as a regular feature.

(ii)

The Senior Technical Officer appointed by the Chief

Purchase Officer should possess technical qualifications
and have an over-all undemanding of the technical
aspects of the stores to be purchased. He should be of a

status not below that of Scale-19 for, bigger departments

making heavy purchases. Smaller departments may
designate a Scale-18 Officer for the purpose.
(iii)

3.

The Departments should also appoint/designate a

signature verifying officer (in the status of a Purchase
Officer) for verifying the signatures of the Purchase
Officers on the documents (viz., contracts, amendments
thereto, authorisation relating to release of security
deposit, etc.) which are forwarded directly to the
concerned audit authorities (para 30 of the Purchase
Manual refers). The SVO is not to been trusted with any
purchase work.
Delegation within a Department:

(i)

Depending upon the quantum of purchase and the status

of the designated Senior Purchase Officer, etc., Chief
Purchase Officer can delegate to his Senior Purchase
Officer, the powers to finalise purchases, up to any stage
within the limit of Rs. 30 lac per case, with or without
consultation of Finance Department as per the
requirement of para XII of the Purchase Manual. Similarly,
the Purchase Officer in departments making heavy
purchases can be delegated with the powers to finalise
purchases up to a certain limit (not above Rs. 5 lac per
case) with or without consultation of finance Department
as the case may be.

(ii)

The above limits shall also apply to disposal of issues

arising after the placement of the contract, e.g.,
amendment in the contract or L/C, extension of delivery
period, release of security deposit, etc.

4. Notification regarding appointment of Purchase

Officers and Technical Officers: The department may issue a
notification (if not already done) showing the names and designation
of the Senior Purchase Officer, Senior Technical Officer, Purchase
Officer, Technical Officer and the signatures verifying office for the
information and record of the SGA&I Department (Supply Wing),
Finance Department and others concerned departments under
intimation to the concerned audit authorities. Duly attested specimen
signatures (in triplicate) or all the aforesaid officers should be
submitted to concerned audit officer (s).

5.

Avoiding Delays:

(i)

Routine handling of purchase cases could occasion delay

and cause validities of the offers to lapse which might
necessitate resort to retendering of the stores. This is a
serious draw back as, apart from the delay caused in
procuring the store, the subsequent tender is likely to
elicit a higher price level. Such lapses lead to serious
audit objections and the responsibility on account of the
financial loss has to be determined. The departments are,
therefore, advised to develop appropriate methodologies
for avoiding delays.

(ii)

Special care should be taken to minimise the period

consumed in transit of the files/papers from one office to
another. The purchase cases should be sent to Finance
Department (Supply Section) through a personal
messenger (and not through ordinary dak).

6. General: Care must be taken to ensure compliance of the

following basic principles:(i)

The purchase hierarchy developed within a department

has to function as a separate and distinct entity with its
own line or command which should not be Inter-mingled
with the chains of command either of the Secretariat or of
the attached departments/zonal Officers. For examples, if
a Deputy Secretary of a Department has been nominated
as a Purchase Officer he should not mark the purchase
cases to a Section Officer (as a matter of habit) for the
sake of opinion formation. This would also apply to the
examination of cases/store (s) on the technical side.

(ii)

The designation prescribed in the Purchase Manual i.e.,

Senior Purchase Officers, Senior Technical Officer,
Purchase Officer, Technical Officer, should be followed in
the office noting and correspondence with other
departments (in respect of purchase cases) and
suppliers.

(iii)

Keeping in view the system of checks and balances

different officers should be selected/designated for the
work on the purchase side and the inspection assignment
on the technical side, e.g., a purchase officer cannot be a
technical officer at the same time.

7. Limits for submission of cases to Finance Department:

Limits for submission of cases given in Chapter XII of the Purchase
Manual relate to the total indent value, i.e. the total estimated cost of
the various items given in the indent on the basis of which the tender
enquiry
was
floated.
The
evaluation
has
to
be
made item wise and if the response against one of the items is not
within the competency of the Purchase, Agency the case would, have
to be referred to Finance Department.
8. Purchase of Cars: Motor Cars/vehicles should not be
treated as an interdepartmental item for purchase by the Principal
Purchase Officer. These may be procured by the departments
concerned in accordance with the prescribed procedure.
9. Submission of copies of the Contract:

Note:

(i)

A copy of all contracts placed by a Departmental

Purchase Agency should be furbished to the Finance
Department (Supply Section) as required under para. 40
(vii) of the Purchase Manual.

(ii)

The department making purchase of hems which are

common to three or four departments should always
endorse copies of such contracts to the other
departments, making similar purchase, in order to keep
them in the picture as regards the price and specification
of the store. For example, copies of contract placed for
the purchase of iron items, bulldozers or tractors by the
Irrigation and Power Department should be sent to
Communication and Works Department, Agriculture
Department and so on. A purchase agency should
exercise its judgment in regard to the departments to
whom copies of such contracts have to be endorsed.
Contract means contract for purchase of store, amendments
thereto and the cancellation thereof (if any).

10. Amendments in existing contracts: The contracts issued

by the defunct Supply Wing of the Director of Industries upto 30 th
June, 1986 provided that the inspection of tendered store(s) would be
carried out by Joint Director inspection, Industries Department or an
officer authorised by him in this behalf alongwith a representative of
the indentor. This clause, in the existing contracts, should now be
suitably amended by the various departments so as, to replace the
designation Joint Director Inspection (Industries Department) or/and

his
nominated
officer,
by
the
appropriate
Technical
Officer(s)/consignee of the Purchasing Department (para\ 55 of the
purchase Manual refers).
11. Disposal of Security Deposit/Earnest-Money, Tender
Sale Fee and Registration Fee, etc.:
(i)

Earnest-money in the form of Deposit-at-call is refunded

to the unsuccessful bidder (unless it has to be detained
for adjustment against some default on his part). That of a
successful bidder is generally converted into security
deposit (or a part thereof). Security Deposit and additional
security deposit (in the shape of Deposit-at-call) is
submitted to the concerned audit office alongwith
embossed copy of the contract as indicated in the
endorsement, of the contract forms PR 14 & 15 given as
annexures of the Purchase Manual.

(ii)

As elaborated in Finance Department Circular No. B.I.

3(52)/70, dated 30th October, 1985, the tender sale fee
has to be deposited in the Government treasury under the
following new detailed head to be opened for the purpose
under the corresponding receipt head of the department
concerned:"1930-Others-1391-Fees, Fines and Forfeitures-Tender
Sale Fee received by (Name of the Department).
The detailed receipt head of accounts for deposit of
registration fee, renewal of registration fee, etc. and any
other fee would be the same except that the name of the
relevant fee shall be substituted in place of tender sale
fee in the above-mentioned head of accounts.
Your obedient servant,
(Muhammad Aslam Sheikh)
Deputy Secy, (AB).

Even No & date

A copy is forwarded to:
1

Accountant-General, Punjab, Lahore.

2.
Director-General (Audit & Accounts) Works, Lahore.
Even No & date;
A copy is forwarded to Deputy Secretary (Supply) Government of the
Punjab; Services General Admn & Information Department, Lahore.
Section Officer (Supply)
No. SOS 4(l)/85-(Part-II)
Government of the Punjab
Finance Department
(Supply Section)
Dated the 29th November, 1986
To,
All Administrative Secretaries,
to the Government of the Punjab, Lahore
SUBJECT; AVOIDING DELAYS AND RETENDERING THE
DEMAND FORSTORE(S)
I am directed to state that the Finance Department, vide para. 5
of its circular of even number dated 14 th November1985, in regard to
the decentralization of purchase procedure, had emphasized upon
the departments the need to avoid delays in finalizing Government
purchase cases. It was particularly mentioned therein that the
purchase should be finalised within the validity of the offers since, in
the event of a lapse of validity there was always a possibility of the
subsequent tender being higher. Responsibility, for the financial loss,
in such cases, had to be fixed by the departments and suitable action
taken. A copy of those instructions is enclosed. It has been observed
that these instructions have not been followed in all cases by the
department. It has also been noticed that some departments have
resorted to retendering the store without justification and that higher
price had to be paid in the next tender on account of price escalation.
2.
I am to state that it is the responsibility of the purchasing
departments, under the decentralised purchase system, to ensure
that such lapses are avoided. The Finance Department would advise
that the following guidelines may be followed by the departments in
this regard in future.
I.

AVOIDING DELAYS:
(a) Purchase cases should not be handled in a routine

manner. Special urgent slips be affixed to these cases for

giving them a priority treatment.
(b) Time limits may be prescribed for the disposal of these
cases at each level, with a view to ensuring that all steps
are taken, formalities completed and contract placed
within the validity periods of offers.
(c) The transit period in the movement of files from one
table/office to another should be minimised. Cases
requiring FD's advice should be delivered to the Supply
Section of that department and received back therefrom,
through a personal messenger. (To this and a regular
messenger service may be introduced by the
departments handling large purchases).
II.

RE-TENDERING:
(a) The decision relating to the re-tendering of stores should
be taken judiciously and with due caution. Re-tendering of
a demand may be necessary when
(i)

The right type of store as per prescribed

specifications of the tender enquiry has not been
quoted by any tenderer;

(ii)

in the opinion of the competent purchase officer an

adequate response has not been received against
the tender and when the rates are adjudged to be
higher than the market price. (Such a situation may
arise when a few firms form a cartel or poor
together)

(b) Subject to (a) above, retendering (i.e., re-floating of a

demand) should preferably be avoided when stores of
imported origin (e.g., spare-parts of tractors and
bulldozers) have to be procured in local currency.
(c) Where the circumstances so warrant the demand may be
negotiated with the graded firms under para. 39 of the
Purchase Manual. Such negotiations may be held within
the validity of the offers received against the tender
response.
(d) While re-tendering or negotiating the demand the delivery
schedule of the store (s) should be kept in view. The
delivery period for purchases in local currency should

generally not go beyond 15th June so that funds of a given

year are utilised in that year.
Your obedient servant,
(Muhammad Aslam Sheikh)
Deputy Secy. (AB)
Even No, & Date
A copy is forwarded to;1.
The Additional Secretary (Supply), Government of the
Punjab Services General Admn. & Information Department, Lahore.
2.
The All Senior Purchase Officers of the various
Departments of the Government of the Punjab.
(Muhammad Aslam Sheikh)
Deputy Secy. (AB)
------------------------------

Extract of para. 5 of FD's circular letter No SOS. 4(l)/85-Part-II,

dated 14th November, 1985.
(i) Routine handling of purchase cases should occasion
delay and cause validities of the offers to lapse which might
necessitate resort to retendering of the store. This is a serious
drawback as, apart from the delay caused in procuring the store, the
subsequent tender is likely to elicit a higher price level. Such lapses
lead to serious audit objections and the responsibility on account of
the financial loss has to be determined. The departments are,
therefore, advised to develop appropriate methodologies for avoiding
delays.
Special care should be taken to minimise the period
consumed in transit of the files/papers from one office to another. The
purchase cases should be sent to Finance Department (Supply
Section) through a personal messenger (and not through ordinary
dak).
(ii)

No. SOS 4(6)/85

Government of the Punjab
Finance Department
(Supply Section)
Dated Lahore, the 17th December,1985
To
All Administrative Secretaries
to the Government of the Punjab,
Lahore.
SUBJECT: DECENTRALISATION OF THROUGH PROCEDURE RELEASE OF SECURITY DEPOSITS.
Sir
I am directed to refer to his department circular of even number
dated 5th November, 1985, on the subject noted above, and to state
that under the note appearing below para. 66 of the Purchase
Manual, the departments have been authorised to retain the earnestmoney/security deposit given by a firm, in case the said firm is
defaulter against any contractor or for the adjustment of amount due
against risk purchases or any arrears, outstanding against the firm.
Keeping in view the spirit of the decentralised system of purchases, it
is clarified that, for the purpose of releasing the earnestmoneys/security deposits die purchase agency of the Administrative
Department, should monitor verify the performance of the firm (s), in
respect of the contracts placed exclusively for the purchase(s)
relating to its own department only.
Your obedient servant,;
(Muhammad Aslam Sheikh)
Deputy Secy (AB)
For Acting Finance Secretary
Even No & date

A copy is forwarded to the Additional Secretary (Supply), Services

General Administration & Information Department for information.
(Muhammad Aslam Sheikh)
Deputy Secy. (AB)
-----------------------

No. SOS 4 (20)/85(Provl)

Government of the Punjab
Finance Department
(Supply Section)
Dated Lahore, the 9th February, 1986
To
All Administrative Secretaries
Government of the Punjab,
Lahore.
SUBJECT: STANDARDISATION OF STORE FOR PURCHASES.
Sir,
I am directed to state that under para. (5) 2 of the Purchase
Manual store (s) have to be purchased on the basis of the
specifications/panel prescribed by the Department or InterDepartmental Standardisation Committee (as the case may be). In
order to ensure that this requirement is met with adequately it is
requested that a certificate to the following effect may be given
towards the end of the purchase proposals submitted to Finance
Department for clearance:"It is certified that the tender enquiry was floated in accordance
with the specifications and requirements given in the
specifications manual as approved by the competent authority
(i.e. Standardisation / Inter-Departmental Standardisation
Committee) for the purchase of the equipment (s) store (s) in
the case".
2.
In case certain items are not covered under the
specifications manual of standardised stores the reasons therefor
should be indicated.
Your obedient servant,
(Muhammad Aslam Sheikh)
Deputy Secy. (AB)
No. & Date Even.

A copy is forwarded to Deputy Secretary (Supply), Services

General Administration & Information Department.
Deputy Secy. (AB)
-------------------------

No. SOS 4 (20)/85

Government of the Punjab
Finance Department
(Supply Section)
Dated Lahore, the 26th February, 1986
To
All Administrative Secretaries of the Punjab
SUBJECT:

FEE FOR REGISTRATION.

Sir,
I am directed to refer to the above-mentioned subject and to
state that a question has been raised as to the amount which has to
be charged by the departments for supplying the registration form to
the firms seeking registration for the supply of certain item (s) of
store(s). It has now been decided that a sum of Rs.5/-will be charged
for the purpose.
Your obedient servant,
(Muhammad Aslam Sheikh)
Deputy Secretary (AB)
For Finance Secretary.
No. & Date Even.
A copy is forwarded to the Deputy Secretary (Supply) SGA&I
Department for information.
Deputy Secretary (AB)
-------------------------------

Government of the Punjab

Finance Department
(Supply Section)
SUBJECT:

ACTION AGAINST CONTRACTORS IN CASE OF

FAILURE.

Sir,
Will the Deputy Secretary/Purchase Officer, Government of the
Punjab, Home Department, Lahore, kindly refer to his U.O. No PO
(Home) K/41700/FEX/65532, dated 1-1-1986 on the subject noted
above
2.
The note below para. 66 of the Purchase Manual
regarding the refund of security deposit provides that the security
deposit furnished by the firm may be retained in case the firm is
defaulter against any contract or for adjustment of amount due
against risk purchase or for other arrears outstanding against the
firm(s). Hence in a situation where risk purchase is necessitated
because of a firm's default the procedure for the purchase agency
should be to withhold the security deposit of the defaulter. In case the
risk purchase amount falls short of the security amount the maximum
penalty of forfeiture of security should be imposed; and in the event
of risk purchase amount exceeding the security amount the risk
purchase clause should be made operative. The preferable course
would be to detain the security till such time as the contract
pertaining to the risk purchase is finalised. The observance of this
procedure would obviate the necessity of making the provision of
para 51 (b) & (c) of the Purchase Manual operative simultaneously.
3.
In the event of its unsatisfactory performance the
Purchase Agency always has the right to black-list an unregistered
firm.
Section Officer (Supply)

To
The Deputy Secretary/Purchase Officer,
Government of the Punjab,
Home Department, Lahore
U.O No SOS 4(20)/85, dated Lahore, the March,
1986.
No. & Date Even.
1.

A copy is forwarded to the Senior Purchase Officers of

all Administrative Departments for information and
necessary action.

2.

A copy is forwarded to the Deputy Secretary (Supply)

Services General Admn & Information Department, for
information.
Section Officer (Supply)
---------------------

No. SOS 4(1)/85-Part.II

Government of the Punjab
Finance Department
Dated Lahore, the 12th January, 1987
To,
All Administrative Secretaries
Government of the Punjab,
Lahore.
SUBJECT:

MEETING OF
COMMITTEE

THE

STANDING

PURCHASE

Sir,
I am directed to state that under para. 102 of the Purchase
Manual, a purchase case whose indent value exceeds the limit of
Rs. 30 lac has to be examined by a Standing Purchase Committee,
comprising Administrative Secretary (Chairman) Senior Purchase
Officer of the Department, a representative of Finance Department
(not below the rank of Deputy Secretary) and the indentor
concerned. It has been noted with concern that proper procedure is
not being followed by some of the departments in regard to the
processing of such cases as well as the SPC meetings. Following
guidelines are, therefore, being given for streamlining the work of
the committee:2. Notice: The notice of the meetings alongwith the working
paper should be made available to the participants at least seven
days before the meeting. In this behalf the instructions contained in
FD's circular FD (AB-II) 10-2/86, dated 21-10-1986 may also be
seen.
3. Working Paper: (a) The working paper of the meeting
should clearly specify the following: (i) name of stores to be
purchased (ii) the number of offers received in response to the
tender enquiry (iii) appraisal of the tender in regard to the gradation
of the officers (iv) summary of technical comments (v) unit cost and
the total cost (vi) the last purchase rate of the item alongwith the
date of such purchase (vii) the indenting officer's estimate for the
individual items. Among other things it may be certified in the

working paper that the tender was floated in accordance with the
specifications and requirements given in the specifications manual
as approved by the competent authority (Standardisation/ Inter Departmental Standardisation Committee).
(b) The following documents should form appendices of
the working paper:
(i)

A copy of the detailed tender enquiry for the

purchase of store in question.

(ii)

A copy of the comparative statement prepared in

accordance with the instructions contained in para
20 of the manual.

(iii)

A copy of the inspection report given by the

technical agency.

4. Availability of the firms representative: It is always

advisable to have the accredited/authorised representatives of the
quoting and graded firms available during the course of the meeting
of the SPC. This facilities the purchase action inasmuch as the
demand can be readily negotiated if the tender response is
considered to be higher in price. In other cases, clarification if
necessary in regard to the specifications, delivery period of the
stores or other aspects can be obtained by the committee without
loss of time.
5. It may be stated that the Standing Purchase Committee is
basically an examining body and the purchase proposals, based on
its recommendations, have to be approved by the Finance
Department in the normal course.
6. Note: Participation of FD's representative is not necessary
for a meeting of purchase committee which may be convened by the
department, as a matter of its internal convenience, for a purchase
whose indent value is less than Rs. 30 lac.
Your obedient servant,
(Muhammad Aslam Sheikh)
Deputy Secretary (AB)
No. & Date Even.

A copy is forwarded to:1.

The Additional Secretary (Supply), Services General

Admn. & Information Department, Lahore.

2.

The
Senior
Purchase
Officer
Administrative Departments.

of

all

the

(Muhammad Aslam Sheikh)

Deputy Secretary (AB)
----------------------------

No. SO (PROC) (S&GAD) 1-20/89 (IV)/2

GOVERNMENT OF THE PUNJAB
SERVICES GENERAL ADMINISTRATION
AND INFORMATION DEPARTMENT
(PROCUREMENT WING)
Dated Lahore, the.27th August, 1997
SUBJECT: PURCHASES UNDER FOREIGN AIDED PROJECTS.
Sir,
In continuation of this Department's Letter No SO (Proc)
(S&GAD) 1-20/89 (iv) dated 27th August, 1997, regarding
amendment in the purchase manual, the competent authority for the
purpose of streamlining/simplifying the procedure for purchases
under foreign aided projects, has issued the following instructions:
"In case of Foreign Aided Projects, the Chief Purchase Officer
shall be competent to delegate to a committee headed by Project
Director such financial powers to procure medicines, equipment/
machinery and other stores as appropriate within the framework of
agreement between the Government of the Pakistan/Punjab and the
Donor/International Agencies. Such committee should in all cases
include a representative of Finance Department, P&D Department
and the Administrative Department concerned. The working of the
said special committee should be monitored by Administrative
Department concerned on monthly basis in order to ensure that the
procurements are made expeditiously without any violation of
rules/procedures."
Your obedient Servant,
(MUHAMMAD YUSAF)
Section Officer (Procurement)