NO TENDER FOR WORKS COSTING UP TO RS5 LAKH Tuesday, 01 September 2015 | PNS | BHUBANESWAR | in Bhubaneswar

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NO TENDER FOR WORKS COSTING UP TO RS5 LAKH

Tuesday, 01 September 2015 | PNS | BHUBANESWAR | in Bhubaneswar

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Now onwards, all Government contracts for works estimated to cost up to Rs5 lakh may be given out with or without inviting open tenders at the discretion of the Divisional Officers to the best advantage to the Government.

Earlier, the contracts for works estimated to cost less than Rs 50,000 were to be given out with or without tenders at the discretion of the Divisional Officers. With the Department of Works allowing amendment of the Odisha Public Works Department Code, now the new rule will be applicable to all Government procurements, their attached subordinate offices, public sector undertakings under the Government and statutory bodies.

According to officials sources, notices inviting tenders for works of more than Rs10,000 but up to Rs5 lakh should be circulated among the local offices. However, the State Government following in the footsteps of the Union Government has decided to make e-tender mandatory for tenders valued above Rs5 lakh. Tenders for works costing more than Rs5 lakh and up to Rs10 lakh shall be published in two local Odia newspapers, said an official.

The Union Government has affected this new system from April 1, 2015 as 30 per cent Gross Domestic Product (GDP) constitutes Public Procurement. This would ensure transparency and prevent cartelisation and allow more participation in the tendering process.

It has also been notified that tenders shall be invited for all works costing more than Rs5 lakh. However in case of urgency, the prescribed period of notice may be suitably reduced.

The OPWD Code is intended to define the scope of the functions of the officers in charge of public works working under the administrative control of Works, Water Resources, Energy,  Rural Development, Urban Development Departments and any other departments to which the execution of public works is assigned by the State Government.

Unless otherwise stated in the OPWD Code, the Rules in this Code apply to all public works and are complementary to those laid down in the Odisha Treasury Code, Odisha Service Code, Odisha General Financial Rules, and Central Public Works Account Code as adopted and other Rules.