OWNER ISSUE MATERIALS

OWNER ISSUE MATERIALS - ON FREE ISSUE BASIS

The system of free issue material was introduced in Dec1986 due to changes in laws of some states, increasing owners liability in case of issue of material on chargeable basis with the view to minimize such liability

For Civil & Structural Steel Works & Supply Cum Erection (Non-IDA) Packages where design is in the scope of owner, the cement & steel to be free issue materials
World Bank Funded/External Agency Funded Packages: Supply of cement & steel to be in the scope of the contractor.

OWNER ISSUE MATERIALS - ON FREE ISSUE BASIS

In all other packages including composite packages having civil component: cement & steel to be in the scope of the contractor.

OWNER ISSUE MATERIALS ON FREE ISSUE BASIS

1. 2. CEMENT REINFORCEMENT STEEL a) MILD STEEL UP TO 12 MM DIA (ROUND) b) MILD STEEL ABOVE 12 MM DIA (ROUND) c) TOR STEEL OF ALL DIA STRUCTURAL STEEL (PLATES & ROLLED SECTIONS ONLY)

CEMENT
Contractors responsibility - To take delivery from project area/project stores - Storage & safe custody is responsibility of the contractor - Contractor to produce Indemnity Bond/BG as security of Material - 2 % of Theoretical quantity to be in various items of works or as specified in Tech Specifications. - Surplus Material to be returned to the place of issue after its actual use.

Allowable Wastage

CEMENT
Recovery for Excess Consumption a Theoretical Consumption (without any wastage or loss) - Free + Allowable Wastage b Actual consumption beyond 2% to 5% of (a): Procurement rate + 25%. c Excess consumption beyond 5% of (a) aboveTwo(02) Times of procurement rate.

REINFORCEMENT STEEL
Allowable Wastage - 3% of Theoretical Qty based on bar bending schedule.

Recovery for Excess Consumption

- Cut pieces 3.0 Meter length - Scrap < 3.0 Meter Length a Theoretical Consumption (without considering any wastage, scrap or loss) as per drg. & Spec. - Free b Wastage/scrap up to 3 % of (a) - Free c Wastage/scrap 3-5% of (a)- Procurement rate + 25 % d Excess Consumption > 5 % - Two times of the cost.

REINFORCEMENT STEEL
Credit for Cut Pieces/scrap i Upto 3% of (a) Full credit to be given ii Beyond 3 % of --Cut pieces(>3.0m): credit at procurement rate --Scrap: credit at 75% of procurement rate : Non return of steel as at (b) above Panel recovery as per (c) above. Non return of steel as at (c) & (d) above aaaa Panel recovery as per (d) above.

Shortage of Material

STRUCTURAL STEEL
(Rolled Sections & Plates) ALLOWABLE WASTAGE : a) Road Sections, Sheared Plates - 3 % b) Un-sheared Plates -4% c) Invisible Wastage - 0.5%

OFF CUTS : Difference between measurement and quantity actually put into work are off cuts and these are not part of the wastage. No credit to be given for return of such off cuts

STRUCTURAL STEEL
(Rolled Sections & Plates) RECOVERY FOR EXCESS CONSUMPTION : a) Theoretical Consumption i/c invisible wastage - Free b) Excess Consumption- 3 to 4 % of (a) above -Free (c) Excess Consumption : i) Rolled sections/plates 4-6% & ii) Un-sheared plates 4- 8 % -Cost of steel + 25% (d) Excess over (c) above 3(Three) times of average procurement cost.. All such wastage shall be accounted for by the contractor and returned to the owner, except the loss due to oxidation etc. limited to 0.5 % (only in case of structural steel) CONTRACTORS RESPONSIBILITY as in case of reinforcement steel.

STRUCTURAL STEEL
(Rolled Sections & Plates) CREDIT FOR i Return of 3 % or 4 % of theoretical RETURN/ consumption - NIL SHORTAGE OF ii Return of material beyond 3 % or 4 % of MATERIAL` theoretical consumption : -Cut pieces Full Credit at procurement rate - Scrap Credit at 75 % of procurement rate iii Credit for rolling and melting scrap NIL

STRUCTURAL STEEL
(Rolled Sections & Plates) iv Recovery for material not accounted for : -- Panel recovery for waste steel between 3% or 4%procurement rate + 25 %. Panel recovery for waste steel beyond 3% / 4% - Three times of the procurement rate.

AUTHORISED CONSUMPTION/CONTROL
In accordance with agreed phased programme, contractor to give reasonable notice. Contractor to account for material issued to him in the standard format with running account bills, Contractor to certify that balance of materials are available at site. On completion or fore closure of work- Balance material shall be returned to the store/place of issue or as directed by Engineer-in-charge and accounting to be done.

AUTHORISED CONSUMPTION/CONTROL
Periodic reconciliation to be done. Max quantity that can be with the contractor at any point of time to be decided by Engineer-in-charge considering the three months rolling programme of work.

SURETY FOR MATERIAL

Indemnity bond/BG to be provided towards surety of material as below
Cement Reinforcement Steel
Structural Steel

: Procurement rate +25% : Maximum rate of nearest stockyard of SAIL for any section inclusive of Sales tax + 25 %
: Average rate of nearest stockyard of SAIL for structural sections, pipes and plates inclusive of sales tax + 25 %