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C.H. Batheja
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PostPosted: Tue Mar 18, 2008 9:29 pm Back to top

Can a contractor/ vendor demand interest on delayed payment as much as we are empowered to deduct LD, etc. on delayed supply/ performance?
            
            
            
- C.H. Batheja Pune ... 18-03-08

V Natarajan
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PostPosted: Wed Mar 19, 2008 8:52 am Back to top

Our special conditions do not cater for such interests on delayed payments. It is also difficult to define what is a delay because in government system, the bills pass through so many hands before they are finally dispersed. Further we always take the date of measurement as the base to calculate time taken to pass a bill. But contractor may expect running bills every week/fortnight/month regardless of the progress and may define the period from work done.

If we want to improve the system we should keep fewer checks on running bills. See the movement of a running bill.

IOW after measurements - ADEN for test check - ADENs bill clerk - ADEN for signing bill - WA section in division - Technical check - Back to WA section - check by bill clerk - check by OS(WA)- work register clerk for booking - Check by SO(WA)- Sr.DEN for signature- Back to OS(WA) - COS/Budget - check in Bill section in Sr.DFM's office CO6 - Books section CO-7 - Printing of check in AFRES- Signature of accounts officer - cash office - by post to contractor.

This is the movement if there is no problem in the bill. The bill can be returned by any one checking and it goes in the same line backwards moving through several hands. Further process are for extension of contract, Supplementary work orders, variations & vitiations etc.. which could further delay the bills.

In final bill, in BCT division accounts will not accept the final bill without completion report.

C.H. Batheja
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PostPosted: Wed Mar 19, 2008 9:10 am Back to top

Thanks for your prompt reply Sir..

But whatever the reason may be,
Isn't it unfair to charge LD, etc from our side and expect us to keep mum when it comes to payment .. and worse still .. expect him to keep running behind us sometimes for months together.

It may be different fact that most of the contractors would like to run behind us .. or that the system till now works this way ... BUT spare a thought... aren't we DRIVING away serious contractors on "such" points.. Or are we happy with the "ONE or TWO responses" in an open tender after wating for a "30 day newspaper notice" ?.. and does this number make us proud.

I once again draw attention to certain views expressed elsewhere in this forum like "What we refuse to pay upfront, we are surely paying from the back door".

Regarding the solution.. It would be certainly worthwhile to discuss and debate on this here.
            
            
            
- C.H. Batheja Pune ... 19-03-08

V Natarajan
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PostPosted: Wed Mar 19, 2008 9:38 am Back to top

Giving full powers as well as responsibilities to the executives atleast in on account bills could be a solution and payments should be through ECS only.
            
            
            
- V. Natarajan ADEN(HQ)BCT ... 19-03-08

V. B. Sood
Director (B & S)

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PostPosted: Wed Mar 19, 2008 12:56 pm Back to top

At the moment our GCC is written as suited to the working of the department. There is no remedy for the delayed payments as per the same. However the problems being talked about are very much there and a thought is going on for modifying the GCC in lines with more balanced conditions such as FIDIC conditions of contract.
            
            
            
- Vivek Bhushan Sood Professor/Track-II ... 19-03-08

C.H. Batheja
Bangalore

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PostPosted: Wed Mar 19, 2008 2:35 pm Back to top

Hope that doesnt amount to be a consolation for us and .. and we stop thinking about solutions ..
There will always be some commissions or talks going on about various improvements

As it was once given to underatsnd that the Sixth Pay Commission will solve all HRD problems?? .. No Buyers for that!

Time we woke up to the reality.

Question is .. The GCC even at the moment does not expressly DENY or negate the possibility of such a payment .. it is simple silent on it.

If a contractor files a query under RTI claiming as to why interest on delayed payment shouldnt be made , what will the reply be?
            
            
            
- C.H. Batheja Pune ... 19-03-08

V Natarajan
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PostPosted: Wed Mar 19, 2008 7:53 pm Back to top

When there is no provision for interest on delayed payments in the contract conditions, no such claim can be accepted by the Railway.

Further as per clause 64(5) of the GCC, when the arbitral award is for payment of money, no interest is payable in whole or part of the money for any period till the date on which the award is made. Therefore interest will be payable only from date of arbitration award.

The contractor is free to take recourse of law.
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