Mandatory database of labour, liquidity criteria for bidding

In a first, the Railways has made it mandatory for contractors to maintain a database of all their workers and made liquidity a qualifying criteria for those bidding for projects in non-operational areas such as housekeeping and cleaning, a ministry statement said.
Under a new General Conditions of Contract (GCC) for services, drafted by a committee of executive directors and approved by the railway board, it has decided to separate the terms and conditions for contractors engaged in railway works such as construction of bridges, buildings and gauge conversion projects from those pertaining to service delivery including housekeeping, facilities management and consultancy.

As PTI reported on Sunday, the new policy has introduced, for the first time, a digital contract labour management system which will be a database of all contractual workers engaged in providing services to the sector and carry their attendance data and salary details.
The ministry release also said a contractor bidding for a service would be disqualified if penalty has been levied three times in the last two years for violating labour laws.
Also, in another first, the new GCC has said anyone bidding for a contract in the Railways should have or should have access to liquid assets, lines of credit and other financial means to meet a cash flow valued at five per cent of an estimated bid value of the bidder's total contract commitments.

The bidder has to now submit an audited balance sheet certified by a chartered accountant along with the bid.

"The new contract system will ease the registration process for bidders, promote competitiveness and help Railways save more on cost," Railway Minister Piyush Goyal said in the statement.
He added the new policy would bring transparency and accountability in the system and make it more efficient and beneficial for the people.
Apart from labour laws, non-performance in previous contracts will also lead to bidders being disqualified in the future. This is expected to put a premium on good performance, the railways said.