Analysis of Rates

Re: Analysis of Rates

feeds@yuku.com (subbu98) — Tue, 25 Nov 2008 09:40:38 GMT

Dear Pankaj,

First things first. Your concerns are quite valid. Especially in light of the circumstances all of us work under. It's good that you brought the issue under debate here. Let's look at it this way. If a reasonable LAR is not available at the time of framing the proposal, there is a great likelihood that the same would not be available at the time of deciding the tender. In that case, the tender committee in any case has to rely upon activities like rate...

Re: Analysis of Rates

feeds@yuku.com (ananth) — Mon, 24 Nov 2008 21:47:55 GMT

Pankaj, it makes greater sense for the executives to ensure that the 'latest' LARs, duly certified, are proposed at the time of sanction itself and a rate analysis done for items for which no LAR is available. It becomes so easy for you to prepare the detailed estimate and the tender proposal. You are more likely to get competetive rates for execution. But that is only possible if you have planned thoroughly for executing the work at the proposal stage itself, which is not normally...

Re: Analysis of Rates

feeds@yuku.com (pankajp) — Fri, 21 Nov 2008 21:38:03 GMT

Respected Subhashish Sir

I am an Electrical Engineer in IR but the discussion is valid for all departments.

Why is it that the course of action suggested to get exact rate [EOI followed by Limited tender] is being termed as "Perfectionist"? Why should an executive also get attached to different works proposals?

If exact rate at the time of proposal stage itself causes delay in whole cycle, why this becomes unacceptable to "Managers"?
...

Re: Analysis of Rates

feeds@yuku.com (pkatre) — Fri, 21 Nov 2008 04:53:14 GMT

Regarding associating Finance for finding the right price for the right product, the best example is the Spot Purchase Committee. Also,there have been instances where IOW and SSO/Finance have jointly collected independent budgetary quotations for getting rate refernces of new NS items.
Agencies like CPWD revise and update their Schedule of Rates regularly almost on an annual basis. But Railways take 10 years or more by which time the SSRs beomes a farce.

Parag

Re: Analysis of Rates

feeds@yuku.com (subbu98) — Fri, 21 Nov 2008 04:30:07 GMT

>> The resources available with the Executive preparing a proposal (for inclusion in works programme) are also limited.

The priorities of the Zonal Railway are different from those of the individual Divisions and the same gets extended to the Railway Board. Here we are talking about the same user Department and the same Plan Head. This is why the whole thing is a three tier process where at the apex level priorities are visualized holistically. I do not know which Department...

Re: Analysis of Rates

feeds@yuku.com (pkatre) — Thu, 20 Nov 2008 23:57:20 GMT

Nice to see DyFA and DyCE agreeing on the basic premise regarding framing of proposals though they might differ in the process or procedure to be adopted for achieving the stated common objective.
Finance only insists on following what is written in the Code books of respective Executive Departments. In case of Works Program and framing of Abstract Estimates, the necesity of reasonable assessment of cost is already laid down in the Engg Code. However what causes all the problems is...

Re: Analysis of Rates

feeds@yuku.com (malikapm) — Thu, 20 Nov 2008 21:53:36 GMT

Finance is correct. Without knowing the actual cost of something, how can sanctioning authority arrive at a decision?
If following the procedure leads to 'delays', better live with the delays, instead of getting emotionally attached with the proposal. It is the culture we have created that ability to bypass procedures is called smartness, and those being scrupulous are chucked out. Of course in the trail of the 'smart' people lie debris of excess over estimates,...

Re: Analysis of Rates

feeds@yuku.com (pankajp) — Thu, 20 Nov 2008 19:31:28 GMT

Dear Subhashish Nath

Thanks for your prompt comments.

The resources available with the Executive preparing a proposal (for inclusion in works programme) are also limited.

If the exact rate is to be included and certified at the time of initial proposal itself, then the ideal (and time consuming) route available for the executive is to call for expression of interest followed by limited tender from the interested firms.

The lowest rate thus obtained can...

Re: Analysis of Rates

feeds@yuku.com (subbu98) — Thu, 20 Nov 2008 10:59:54 GMT

Dear Pankaj,

I do not know of the circumstances and am hazarding a guess. The reasons could be many. The most immediate one that comes to my mind is that the basic job of a financial adviser is to appraise the sanctioning authority about the justification for a proposal and a reasonable cost at which the proposal is going to be executed. The resourses available in hand are limited. Were they not, mere justification would have been sufficient. The perils of over and under estimation...

Analysis of Rates

feeds@yuku.com (pankajp) — Wed, 19 Nov 2008 20:57:15 GMT

In one of the zonal railways, finance is insisting on rate analysis even at the time of works programme proposal itself i.e. while the proposal is being initiated for inclusion in works programme for next financial year.

Budgetary quotation from railway's approved vendor is not being accepted and rate analysis is being insisted upon, before agreeing to concurr the proposal for inclusion in works programme.

If reasonableness of rate is to be ascertained at the time of...