( 1) Operating Ratio –

Operating Ratio is the ratio which the total working expenses excluding suspense of a Railway bear to its gross earning or in other words represents the percentage of working expenses in this connection include appropriation to DRF and Pension fund as well. This is used to measure the efficiency of the railway.

( 2 ) Budgetary Reviews -  
Railway Administrations should review their expenditure in August to see whether any modifications are necessary in the allotments placed at their disposal.  The review in respect of each grant should be submitted, to the Railway Board in form No. F-383 so as to reach them not later than 1st  September each year.

The administrations should review the position in as much detail as possible at the time, and if there is any new expenditure which was definitely not anticipated in the budget and which cannot be postponed without serious detriment to safety or efficiency, they should examine
whether such expenditure can be met by saving in expenditure provided for in the Budget when, such savings can be foreseen or can be achieved without serious damage.  The review should show whether such examination discloses the necessity of additional grants or the possibilities of net savings, in order to enable the Board to set off savings on one railway against excesses on another and to arrive at one estimate of the net additional grant required, if any.

( 3 ) Eligibility criteria in railway tenders –

The revised eligibility criteria indicated below -
Class’A’ Contractor – More than Rs. 1 crore and upto Rs. 5 crore. –
1. They should have at least a graduate Engineer having a minimum of 10 years experience plus an Engineer diploma holder having a minimum of 5 years experience.
2.They should have at least two civil engineering works costing not less than Rs. 1 crore each.
3. They should have received payments of at least Rs. 5 crore during last three years.
Class ‘B’ Contractor - More than Rs. 25 lakh and upto Rs. 1 crore.
1. They should have at least a graduate Engineer having a minimum of 5 years experience.
2.They should have at least two civil engineering works costing not less than Rs. 25 lakh each.
3. They should have received payments of at least Rs. 1 crore during last three years.
Class ‘C’ Contractor - More than Rs. 25 lakh.
1. They should have at least a diploma holder Engineer having a minimum of 3 years experience.
2.They should have at least two civil engineering works costing not less than Rs. 10 lakh each.
3. They should have received payments of at least Rs. 25 lakh during last three years.
The existing eligibility criteria may normally be taken as a general guideline for adoption in works tenders However in case of special circumstances warranting some relaxation in the eligibility criteria, CAO / C with the personal concurrence of FA & CAO / C may effect relaxation in the existing eligibility criteria prescribed and subsequent amendments thereon. This relaxation would need personal approval of CAO / C and exercise of this power shall not be re-delegated. Moreover these powers shall be exercised judiciously duly recording the special circumstances surrounding the tender in question and not in a routine manner.

( 4 ) Material at site account  ( M.A.S. Accounts ) –

This stands for material at site account. This is a suspense head of account that is maintained to watch actual consumption of materials obtained for specific work such materials stores are requisitioned separately by the executive officer and consigned to the site of work. The monitory value of materials consumed is debited to the work concerned through works Register. The balance under this suspense represents materials on hand yet to be consumed.

 ( 5 ) Deposit Works.-

The term Deposit Work is applied to works of construction or repair the cost of which is met not out of Railway revenues but out of funds from non railway a source works carried out by the railway for other Government department municipalities and other local bodies and private firms and individuals are known as deposit works.
The cost of plans and estimated are required to be deposited by private persons and local bodied etc before the detailed plans and estimated are prepared charges at siding scales are recovered from these deposits if works are not subsequently carried out keeping in view the charges may be decided by the competent authority.

( 7 ) Pink Book  -             
This shows the various sub heads under which the lum sum amount sanctioned by allotment is to be spent and this indicates the works for which the allotment of money is intended. These books are furnished to the Railways along with budget orders.
The Pink Books also show in the case of work costing over one lack each , total estimated cost of each work and railway administration are required to exercise control over expenditure not only against the allotmentsanctioned for the year for each work but also against its total estimated cost as shown in Pink Book  for works costing less than one lack rupees each a lum sum is allotted to each Railway administrations in Pink Book.  

( 8) Urgency Certificate –

Ordinarily no work should be commended and no expenditure incurred available and the sanction of competent authority is obtained. Those rules however can not be strictly adhered to in certain cases –
        i.Works which are considered to be urgently necessary to safe guard life and property and repairs to damage caused by floods or accidents etc. to restore or maintain through communication.
       ii.Works not falling under above but considered urgently necessary by the GM to meet the immediate needs of traffic.
Commencement of such works is authorized by divisional Engineer. The divisional Engineer at after submits through usual channels a report to the competent authority. This report is called Urgency Certificate or Urgency report. This is prepared on a Standard Performa indicating –
1.    Justification.
2.    Approximate Cost.
3.    Duration of the Project.
4.    Time frame for submitting the detailed estimate.
A copy of same is sent to the account Officer.

( 8 ) Supplementary estimates –
If it is necessary to do any additional work, after an estimate is sanctioned or if any substantial changes are required to be made Supplementary estimates are made in a similar manner as the detailed estimate. The details of items should include only the extra amount of work needed to be executed.

( 9 ) Canones of financial Property –
In exercise of their financial powers the sanctioning authorities must pay regard to the following principles –
      i.    The expenditure should not prima facie be more than the occasion demands, and that every govt. servant should exercise the same vigilance in respect of the expenditure of his own money.
     ii.    No authority should exercise its powers of sanctioning expenditure to pass an order, which will directly, or indirectly be to its own advantage.
    iii.    Public money should not be utilized for benefit of a particular person or section of the community.
   iv.    The allowances such as travelling allowance sanctioned to staff should be so regulated that it should not become a source of earning of the recipient.
( 10) Arbitration -    
Referring of dispute for determination in a judicial manner by a person or persons other than in court of jurisdiction.
The matter can only be referred to the arbitration if there is provision in the contract agreement and disputes are settled as per Arbitration Act.
Contractor is supposed to submit his claims from time. On receipt of claims from the contractor pre arbitrationmeeting is held between Sr DEN / DEN, Sr DAO / DAO and the contractor to thrash out the claims. If there is any dispute the matter is referred to DRM. DRM will discuss the issue with all the three in a meeting and communicate his decision. If contractor is not satisfied he may apply to GM. In such cases counter statement is prepared by the Sr DEN / DEN it is vetted by Sr DAO / DAO and sent to head office with papers of pre arbitrationmeeting. If the value of claim is within 5 Lakhs one arbitrator is appointed, If the value is more than 5 Lakhs or complicated nature two arbitrators are appointed. GM is declaring panel of three or more officers not connected with the case. Contractor is selecting one person and other is appointed by GM ensuring that one is from accounts department.

( 11 ) Depreciation Reserve Fund ( DRF ) -
Depreciation Reserve Fund is the fund specially reserved for replacement of assets. Once the assets are purchased from the capital money but after some years the assets become scrap and requires replacement. Every year the life of an asset is reduced and the value is also reduced which is credited to DRF. After scrapping the asset it is replaced by spending money from the DRF the cost is debited to this head and credited to capital.

( 12 ) Stock Verification Sheets  -
The proper custody and accountal of stores is the prime duty and function of an executive or the stockholder. To ensure this verification of stock is done either departmentally or by the Accounts stock verifier. The stock verification sheets are prepared giving the numerical balances of items as in the ledgers and actual stock. The verification between ledger balances and actual stock are clearly brought out. The verifier and the stockholder jointly sign these sheets.
One copy of the sheet is kept with the stock verifier and three copies are handed over to the stockholder. The stock holder is required to offer his explanation for variation and recon cite the discrepancies and submit the sheets in duplicate to the divisional office for scrutiny and acceptance. These sheets are then forwarded by divisional office along with their remark to the Accounts.
Clearance of out standing S.V. Sheets is closely watched by the department and also by accounts. At the time of handing over charge the stock holder is required to clear the out standing S.V. Sheets for any reason the same should be recorded in the handing over notes by the stock holder.
( 13 ) Single Tender –
In case of emergency, the tender can be invited from a single contract provided that he should be from approved list of contractor.

( 14 ) P.P.E. Act -              
Public Premises eviction Act – It is the act passed by the Parliament for eviction of unauthorised persons from the public premises.
Under this act Railway officers are nominated as estate officer to whom judiciary powers are allotted equal to civil judges.
Any order issued by Estate officer can not be quashed over ruled by other civil court except for appellant purposes.
Under this act action is taken against persons who have un authorisely occupied Government land building or using any fittings etc.
Different Forms used under this Act are as under –
Form No.
Sections & Sub sections of eviction act.
Sub sec 1 of sec 4
Issue of notice to show cause against order of eviction.
Sub sec 1 of sec 5
Order of eviction after hearing on show cause notice withinspecified time.
Sub sec 1 of sec 6
After waiting 30 days a notice to be issue of giving time limit of14 days and circulate in one of the local news paper for recovery of the amount by auction.
Sub sec 3 of sec 6
Show cause notice for recovery of rent and arrears.
Sub sec 1 of sec 7
Order for payment of rent / license fee and arrears.
Sub sec 3 of sec 7
Show cause notice for recovery of damages and order for payment of damages as per schedules.
Sub sec 2 of sec 7
-  do  -
Sub sec 2 of sec 12
Order for asking information on schedule I & II as per section 12.
Sub sec 2 of sec 14
Certified and order letter to collector for recovery of amount due a land revenue.
Sub sec 2 of sec 13
Notice for recovery from their in case of deceased or defaulter.

( 15) Completion estimates –
A Completion estimate is prepared in super session of construction estimate. Following particulars are included in the Completion estimates.
                      i.    Amount of sanctioned estimate.
                     ii.    Actual expenditure on all works up to the date of construction estimate.
                    iii.    Commitments on that date.
                   iv.    Anticipated further outlay.
                    v.    Total estimated cost and
                   vi.    Difference between the sanctioned estimate and the estimated cost.
It is prepared on form No E 713.

( 16 ) On account Bill & Final Bill :-
On account Bill :- On account Bill  or running bill prepared on Form No. E 1337 is indicated for use in contract works only and not supplies . On account  payments before the completion of a work should be made through this form.
Final Bill :- The final bill prepared on form No. E 1338 should be  used for making final payments . i.e. On closing running accounts for works . Normally only one final bill should be prepared against an agreement or work order . But in cases where groups of annual repair works are included in one agreement or work order there is no objection to more than one final bill being prepared on the completion of each group or certain groups.

(17) Earnest money –
The Tenderer shall be required to deposit Earnest money with the tender for the due performance with the stipulation to keep the offer open till such date as specified in the tender. Earnest money should be either in cash, deposit receipts, pay orders, demand draft.
The earnest money shall be 2% of estimated tender value. The earnest money shall be rounded to the nearest Rs. 10/- . Earnest money shall be applicable for all modes of tendering

(18) Security Deposit – A Security deposit is taken for the satisfaction of and efficient execution of the work within the agreed time from contractors. Such Security deposit may also be percentage deduction from on accounts bills of contractors called as retention Money usually 10% of the gross amount of bill. The scale of Security Deposit is as under –
  1. Contracts up to one lack in value 10% of the value of contract.
  2. Next one lack in value 7½% of the value of contract.
  3. For 3rd one lack and above in value 5% of the value of contract. Subject to maximum of 10 lacks.
The amount over and above 3 lacks to be recovered from the progressive bills of the contractor at the rate of 10% till it reaches the required value.

(19) General Conditions of Contract – Operation of a contract is based upon the various stipulation contained in the General condition of contract. This is in the form of a booklet and forms as essential part of the tenderdocuments and ultimately of the contract documents. It is essential that every body dealing with contract should be aware of the contracts of this booklet. These general conditions are normally applicable to all contracts and can be superseded when special conditions are specially formed and stipulated in the tender documents / agreement.

(20)Special Conditions of Contract – These are the conditions which are not covered in the general conditions of the contract.
The special conditions of contract arise due to the site conditions and the nature of work to be carried out. These conditions are framed by the Executive and the contractor is bound to fulfill the conditions during the execution of specific works and all out general application.

( 21 ) Revised Estimate 

Revision of estimates is some times necessary if there is rise in rates of materials, cost of labour, alteration in design etc. If the rise in the cost of work is likely to be more than 10% or Rs. 10,000/- a revised estimates is required to be made. Revised estimates should be prepared in the same degree of detail as the original estimates. The reasons for exceed should clearly explained.

(22) PU-27 and PU-28 for stores expenditure - 
The primary units are an important and integral part of the classification of expenditure as they serve to analyse the expenditures by the elements of cost viz wages / stores / other expenditure etc. A few examples of classification using the code of primary units of expenditure. The code 27 representing  PU-27 ( Primary unit 27 ) ‘’ Cost of material from stocks. And the code 28 representing  PU-28 ( Primary unit 28 ) ‘’ Cost of material direct purchase.

( 23 ) Final modification 
Railway administration are required to review the budgetary position even after the receipts of revised allotment and advise the position to Railway Board in regard to additional allotment required or surrenders to be made during the current year under each head of grant of appropriation . This is done through the submission of modification statements.
The third review is conducted in the month of February every year and is known as final modification. Actual expenditure during first Nine months and approximate expenditure for the Tenth month is reviewed and compared with: -
Budget grant/ revised grant (if received)
Budget proportion.
Actual expenditure during the last financial year.
Actual expenditure during corresponding period of the last financial year.
(24) Material modification :-
No material modification in a work or scheme as sanctioned should be permitted or under taken with out the prior approval of the authority who sanctioned the estimate . In the case of estimates sanctioned by the Railway Board or higher authority instances of will be considered to be a material modifications of a sanctioned project or work are given in below –

The following may be taken as material modifications on the lines under construction and open line works estimated to cost rupees one crore and over .
a)    Any change in the alignment likely to affect the facilities offered to the public in the neighborhood or likely to increase or decrease the length of the line by over one kilometer.
b)    Introduction of any new station or omission of any station.
c)    Any alteration in the type or number of engines or vehicles provided in an estimate for rolling stock.
d)    A change in the layout of a yard affecting the general method of working or increasing or deducting the number of trains that can be dealt with.
e)    Any departure from the standards of  construction as accepted by the railway board in the Abstractestimate or use of any second new material.
f)     The introduction or omission of any work or facility involving a sum of Rs. 5 Laces and over.
g)    Any modification of a sub work provided for in the estimate of a sanctioned work involving an additional out lay on that sub work of more than Rs. 5 laces.
h)    The introduction of any new sub work not provided for in the estimate of a sanctioned work involving an out lay of more than Rs. 5 laces.
i)      Any alteration in the standards of inter locks.

( 25 ) Re-appropriation of Funds
 The transfer of funds originally assigned for expenditure on a specific object to supplement the funds sanctioned for another object is called ‘’ Re-appropriation’’.  

(26) Misappropriation Of Fund  -
Misappropriation Of Funds allotted for specific works under capital or Revenue demand but the expenditure is incurred for another work for which there is no competent authority sanction i.e. expenditure is not voted by Parliament, voted by Parliament but not Re-appropriated by the competent authority. Misappropriation Of Fund is a major irregularity in financial point of view and may invite accounts as well as audit objections

( 27 ) Completion Report :-

The object of a completion report is to compare the cost of work actually constructed with those provided for in the last sanctioned estimate. A completion report of a project duly verified by the accounts officer should be submitted to the Railway board within eighteen months after the end of the financial half-year in which the completion estimate is submitted. It should state the expenditure in the same details as abstract estimate sanctioned by the Railway board and should indicate material modification if any.
The completion report should be prepared in prescribed form and brief explanation should be furnished for: -
i.Excess of not less than 10% or Rs25000/- which ever is less over the estimated provision under each work.
ii.Saving of not less than20% or Rs1,00,000/- which ever is less occurring under each sub-work.

A completion report for work costing Rs one crore and less should be subjected to the detailed instructions issued by the Railway administration and should be prepared in the same form for works costing above Rs one crore. It should compare the actual expenditure incurred with the sanctioned amount and should give details under each sub-work. Brief explanation should be furnished for all excess and savings of over 5% or Rs10,000/- which ever is less. A completion report duly verified by the accounts officer should ordinarily be submitted to the authority that accorded the administrative approval to the work for information or regularization.

(28)Ds 8 Note:- ( G27 f )
This is a receipt voucher on which credit is given to the party returning the released material not required for use. Such material is classified by stores officer and credit is given to the returning party.
The following type of material should be return on Ds8 Note-
1. Balance material after completion of specific work.
2. Release material from old work.
3. Tools and plants which is used or in broken condition.
4. Scrap.
It is prepared in six copies. First copy is office copy.One block copy 2,3,4 is sent to the depot along with the material, 5th copy is sent to officer A/Cs and 6th copy is sent as advance copy to depot which is returned back as record in depot , 3rd copy sent to A/c and 4th copy sent to consignee as A/Cs.

(29) Briefing Note –
After the tender opening the preparation of briefing notes is another serious activity in the process of tender finalisation. The briefing note is prepared by the executive office giving all facts, details, conditions, etc to assist the tender committee in finalisation of the tenders.
The tabulated comparative statement and briefing note both in duplicate together with the original tenders shall be sent for scrutiny to the section officer deputed for the purpose. The statement should be signed by him in token of his verification.