MINUTES OF 1st BOARD OF CHIEF ENGINEERS MEETING HELD ON

28.02.2018 @ 3.00PM IN THE BOCE CONFERENCE HALL OF

ENGINEER-IN-CHIEF (IW), I & CAD DEPARTMENT, ERRUM MANZIL,
HYDERABAD.

At the outset the Engineer-in-Chief (IW), Chairman, Board of Chief Engineers

has welcomed all the participants and placed the following agenda for discussions by
the members of the Board of Chief Engineers. The names of the officers attended the
meeting is appended vide Annexure-I. The Engineer-in-Chief (IW) has initiated the
discussions.

Agenda item No – 1:
I & CAD Department – Revised Standard Data – Deduction of 0.385% towards
insurance component from the provision of 14% towards Contractors Profit &
Overheads for adoption in Revised Standard Data – Placed the matter in the Board of
Chief Engineers (BOCEs) - For discussion and necessary Recommendations –
Directed by the Government.

Proposed by Engineer-in- Chief (IW), I & CAD Dept.

The Government have ordered to dispense with insuring all works of I&CAD
Department including weirs, dams, spill ways and critical components like high level
bridges, tunnels and deep cuts etc.. If any critical work like dam or high bridge etc. is
to be insured, proposal is to be sent by concerned Chief Engineer to the Government
& Government will take a case by case decision whether to insure or not to insure the
work. Subsequently, the Government order has issued orders that, Dispensing with
Works Insurance cover in all works of all engineering departments to have uniformity
in all the departments.
Further, the Government of Andhra Pradesh have issued the orders to deduct
0.385% towards insurance component from 14% contractors profit & overheads
provision in view of dispensing with insurance of works and the remaining percentage
provision of 13.615% to be added in the data for all the works.
Accordingly, the issue was discussed during Board of Chief Engineers meeting
on finalization of SoR for the year 2015-16 on 25.05.2015 and after detailed

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discussion of the matter, BOCEs has recommended to deduct 0.385% in similar lines
of Govt. of AP from the Overheads & Contractor’s profit i.e., 14% and the remaining
provision of 13.615% to be added in the Standard data for all the works.
In this connection, the Government is asking the detailed report on considering
the percentage as 0.385% towards deduction of insurance component from 14% of
Contactors profit & Over heads in various Government memos. In this regard, the
report was submitted to the Government on the subject issue duly enclosing the
minutes of BoCEs meeting dt 25.05.2015 for information and kind consideration.
Now, the Government has requested to refer the matter to Board of Chief
Engineers once again for consideration of above issue for all engineering departments
in a time bound manner (15 Days) as the subject matter is to be finalized urgently.
The above issue is placed before the Board of Chief Engineers on 28.02.2018
for its discussion and recommendations in the matter.

The Board of Chief Engineers has deliberated the issue in detail and
opined that the deduction of 0.385% towards Insurance component as
recommended by BOCEs during SOR meeting held on 25.05.2015 is observed to
be rational and justified.

In view of the above, BOCEs has once again recommended the overheads
& contractors profit of 13.615% excluding insurance component, since, the same
is being adopted in the Standard data from the year 2015-16 onwards and
requested the Government to issue necessary ratification orders in the matter.

Agenda Item No 2 :

I & CAD Dept – Inclusion of Seigniorage Charges of Materials in Part – II

i.e., under Reimbursable items of Tender Schedule instead of adding the same in
individual data - Reg
Proposed by Chief Engineer, Minor Irrigation (GB), I & CAD Dept.

In the preamble of the Schedule of Rates for the year 2017-18, it is mentioned
that “the appropriate Seigniorage Charges for the materials are to be added to the Unit
rate of work item in the estimates as fixed by the Government from time to time”.
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Accordingly, the seigniorage charges for each item of work is arrived and added to the
individual data. The tenders are invited for the rates which include the seigniorage
charges and the Contractor may quote excess or less over the estimated rates.
However, while recovering the seigniorage charges from the work bills, the
seigniorage charges are deducted at the prevailing rates fixed by the Government
irrespective of excess/less tender percentage quoted by the contractor. This practice is
leading to excess payment to the contractor in case of excess tenders and less payment
in case of discount tenders.
Therefore, to correct the above discrepancy, it is proposed to arrive the
seigniorage charges for all the materials required for a particular work and include in
the Part – II items of the estimate (i.e., reimbursable items) in the lines of GST.
The above issue is placed before the Board of Chief Engineers for its
detailed discussion and necessary recommendations in the matter.

The Board of Chief Engineers has deliberated the issue in detail and
recommended that the Seigniorage charges may be kept in Part-II of Schedule-A
i.e., under reimbursable items in similar lines of Standard Bid Document for all
Engineering Depts as recommended by the BOCEs.
Further, BOCEs has directed that, while according Technical sanction the
concerned Engineer-in-Charge should ensure that, the relevant Seigniorage
charges may be reconciled separately duly excluding from the data, so that, the
above Seigniorage charges will not be affected by quoted Tender percentage.
Action: Chief Engineer, Minor Irrigation (GB), I & CAD Dept.

Agenda Item No 3 :

I & CAD Dept – Inclusion of provision of District Mineral Fund (DMF) and State
Mineral Exploration Trust Fund (SMET) in the estimates in Part-II under
Reimbursable items of Tender Schedule
Proposed by Chief Engineer, Minor Irrigation (GB), I & CAD Dept

The Government have instructed all the Engineering Departments to deduct

towards District Mineral Fund (DMF) and State Mineral Exploration Trust (SMET)

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Fund from the work bills @ 10% & 2% on the Seigniorage Charges, respectively.
However, there is no clause for reimbursement of the above deductions to the
contracting agency.

In this connection it is proposed that, the provision for DMF & SMET shall be
included in the estimates as proposed in case of Seigniorage Charges and the same
may be reimbursed to the contracting agency.

The above issue is placed before Board of Chief Engineers on 28.02.2018 for
its discussion and necessary recommendations in the matter.
The Board of Chief Engineers has discussed the issue in detail and opined
the following.
i) In respect of new works, the provision of DMF and SMET may be
included under Part-II of Schedule-A under reimbursable items in similar
lines of Standard Bid Document for all Engineering Depts as
recommended by the BOCEs
ii) In respect of ongoing old works, BOCEs has requested the heads of all
Engineering depts., to furnish the probable financial implications by
21.03.2018 for its detailed discussion in the next BOCE meeting.
Action: Chief Engineer, Minor Irrigation (GB), I & CAD Dept

Agenda Item No 4
Implementation of GO Ms No.10, Industries & Commerce (Mines-I) Dept. dated
04.02.2015 – For basic rate of sand as Rs.600 per cum for all ongoing works –
Represented by Builders Association of India (BAI), Telangana State - Reg
Proposed by Engineer-in-Chief (State Roads & CRN) R & B Dept.

The Engineer-in-Chief (State Roads & CRN) R & B Dept vide letter
dated 27.02.2018 has furnished the following in the subject issue.
The Builders Association of India (BAI), Telangana State vide their letter dated
02.01.2018 has represented that, as per new sand mining policy of Telangana
Government vide GO Ms No 10, Industries & Commerce (Mines-I) Dept dated
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04.02.2015, the basic rate for the sand has been fixed as Rs.600 per cubic meter
for the contracting works.
Further, the BAI, Telangana has requested to make applicable the above basic
rate of Sand to all ongoing old works However, this amounts to revision of
Agreement rate
In this regard, it is informed that in the R&B Department the Fine aggregate/
sand(un- screened) for Concrete & Filtering items) (excluding Seigniorage charges)
was Rs.175/- in the SSR 2008-09. Since, then there is no revision of SSR up to the
year 2013-14. The erstwhile Government has approved the revised standard DATA in
the year 2010 for all the Engineering Departments. During the revision of SSR
2009-10, it is mentioned that the change in SSR rates will be applicable only to the
AP Standard Revised Data and for any other DATA permission from the Government
has to be obtained. The R&B Department is following the MoRT&H Data, which
is more relevant to the Roads & Bridges works being taken up by R&B
Department. Hence, it was brought to the notice of erstwhile Government every
year. Hence, the revised SSR rates could not be implemented in R&B
Department for the years 2009- 2014. Works in this period were sanctioned
with SSR 2008-09 only. The Government has given permission to adopt the
MoRT&H DATA in TOTO for Road & Bridge works taken up by all Engineering
Departments. SSR 2014-15 was released with sand rate Rs.462/- Cum. Later in
the year 2015 the mining policy came in to existence. Accordingly the sand
initial rate was indicated in the SSR 2015-16 as Rs. 560/- per Cum. The rate for
sand in the SSR for the year 2016-17 was indicated as Rs.560/- per cum. In the
SSR 2017-18 the sand rate was indicated as Rs.600/- per Cum and the rate was
amended as Rs 570/- per Cum.
Now, the Builders Association of India (BAI) has requested to make it
applicable for all old ongoing works
The above issue along with GO Ms 10 Industries & Commerce (Mines-I) Dept.
dated 04.02.2015 is placed before Board of Chief Engineers for its discussion and
necessary recommendations in the matter.

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 The Board of Chief Engineers has discussed the issue in detail and
requested the heads of all Engineering depts., to furnish the probable financial
implications in the matter by 21.03.2018 on balance portion of all ongoing old
works i.e., for the works invited before 04.02.2015 for its comprehensive
discussion in the next BOCE meeting, accordingly
Action: Engineer-in-Chief (State Roads & CRN) R & B Dept.

Agenda item No. 5

I & CAD Department - Registration of Contractors – CGG – COT- Design,
Development & implementation of the web portal for Online Registration of
Contractors for Special Class and Class-I in the category of “Civil” to all the
Engineering Departments of Telangana – Web Portal developed - Submission of
applications for Registration through Web Portal only – Requested for approval-
Regarding
Proposed by Engineer-in-Chief (AW) I & CAD Dept.

While issuing the G.O.Ms.No.94 Irrigation and CAD (PW –COD) Department,
Dt:01-07-2003, the Cabinet Sub Committee had examined the various issues relating
to Registration of Contractors including streamlining and simplification of procedure
in all the departments in order to achieve better results and made recommendations to
the Government for online Registration of Contractors. The Government have
recommended for development of website and accordingly directed the Department to
develop a website.

The Centre for Good Governance (CGG) was entrusted the job of Design and
development of Website for Online Registration of Contractors including hosting,
maintenance and technical support for a period of one year during the meeting held on
24-09-2015 by the Commissioner, COT.

In this regard, the Board of Chief Engineers have discussed in detail in the
3rd BOCEs meeting held on 11-11-2016 and agreed in principle for the proposed
Online Registration of Contractors by launching a web portal for Special Class and

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Class-I at initial stage and opined that prior permission from the Government may be
obtained for taking up the process of Online Registration of Contractors.

In view of the above, the Engineer-in-Chief (AW), I&CAD Dept vide letter

dated 02-02-2017 has requested the Government for according permission to Design,
Develop & implementation of the web portal for Online Registration of Contractors
for Special Class and Class-I in the category of “Civil” to all the Engineering
Departments of Telangana.

The Government vide G.O.Ms.No.18 Irrigation and CAD (Reforms)

Department dated 03-03-2017, have accorded permission for development of web
portal for Online Registration of Contractors for Special Class and Class-I in the
category of “Civil” to all the Engineering Departments of Telangana.

At present, the Design & Development of web Portal for Online Registration
of Contractors for Special Class & Class-I in the category of “Civil” is completed and
ready for hosting by the Centre for Good Governance (CGG).

In view of the above, the submission of applications by the Contractors

through Web Portal for Special Class & Class-I registrations in the category of “Civil”
shall be made mandatory and may be implemented as early as possible after receiving
permission from the Government, as this Web Portal is designed for use by all the
Engineering Departments of Telangana.

The above issue along with copy of G.O.Ms.No.18 Irrigation and CAD
(Reforms) Department dt:03-03-2017 is placed before Board of Chief Engineers for
its discussion and necessary recommendations to the Government.

The Board of Chief Engineers has discussed the issue in detail and
recommended for immediate implementation of Online Registration of
Contractors for Special Class & Class-I in the category of “Civil” by all the
Engineering Departments in Govt of Telangana through designed Web Portal by

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CGG after obtaining due permission for the same from the Government,
accordingly.
Further, BOCEs also opined that, the above online Registration may be
extended for the remaining classes/categories in a phased manner.
Action: Engineer-in-Chief (AW) I & CAD Dept.

Agenda item No. 6

Extent of acceptability of Core tests/ ND tests especially for the CC lining
and also the reservation of the Field Engineer visa-vis the reports furnished by the
private lab in respect of SRSP Stage –II, Package -52, CC lining in bed and sides in
normal section and RR lining with cement plastering in sides in flume section
including CNS treatment to expansive soils of Kakatiya Main canal from
Km 284.00 to Km 346.00 - V & E Report - Regarding

Proposed by Chief Engineer, Kanthalapally, I & CAD Dept.

The subject work was awarded to Sri K Sudarshan Reddy & Co.,
(JV) for 18.535% less vide Agreement No.68/2004-05 with an agreement
period of 24 months. The Agency has executed about 90% of the work in
19 months from the agreement date.
While the work is in progress, the V & E officials have inspected the site
during March and April 2006 and extracted 141 core samples from the lining
concrete of M10 grade and it is observed that the strength of 65 Nos are less
than allowable strength of 7.50 N/mm2 and the allowable average strength of
8.5 N/ mm2 is not satisfied in case of 26 locations out of 47 locations.
The Vigilance and Enforcement Department verified the Package -52 which
was taken up by the Irrigation & CAD Department under EPC Contract and
submitted its report vide Vigilance Report No 136(1240N & E/E 1/06)
dated 20.11.2006 and the following recommendations are made.

i) The Secretary to Government, I&CAD Dept., is requested to

ensure rejection and relaying of defective concrete lining in
about 4 Kms length (both in bed and two sides of canal valued at
about Rs. 2.54 crore by the contractor at his own cost.
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 ii) Issue instructions to conduct core tests in all other KMs of the
canal as per the agreement conditions.
iii) Insist upon core extraction and testing in all works/ Packages
where canal lining is proposed for assessing concrete
strength even before releasing intermediate payments
iv) Initiate appropriate action against the concerned
construction engineers as recommended in the table depending
upon severity of each officer and role. Warn the Quality
Control Engineers for their laxity.
v) Watch the performance of the Contractor in other works/
packages.
vi) Before awarding future works, action taken may be invited at the
earliest.

In this regard, the Chief Engineer, GLlS vide letter No

CE/GLIS/OCE/ OT3/TS6/SRSP-II/P-S2/F.209/2007/277, dt 07.03.2007 has
requested the Secretary to the Government, Irrigation & CAD Department to
permit to conduct ND tests by NIT, Warangal in the presence of V & E officials
so that after comparing the ND test results with core test results appropriate action
may be initiated.
In response to above the Government vide Memo No.3414/
SerVII(V&E) A.1/2006, dt 28.05.2007, have accorded permission to the Chief
Engineer, GLlS to conduct ND tests by NIT, Warangal in the presence of
V&E officials. Accordingly, the Chief Engineer, GLlS vide memo No.
CE/GLlS/Wgl/DCE/TS/T6/ F.209 Vol-111/SRSP-II/1205, dated 25.06.2007 has
instructed the Superintending Engineer, SRSP Stage -II Circle, Warangal to
consult NIT officials, Warangal to conduct ND tests.

The NIT officials headed by Sri T.D Gunneshwara Rao,

Assistant Professor in the Civil Engineering Dept has carried out the ND tests
on 25.02.2008. The Superintending Engineer, SRSP-II, Warangal has submitted
the report and ND tests results conducted by the NIT, Warangal vide letter No.
DEE/TSIT2/Pkg-52/807-IV/205, dated 04.03.2008 and the same was submitted to
the Secretary to the Govt., I&CAD dept vide Chief Engineer, GLlS letter No.

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CE/GLlSlWg/ DCE/OT2/TS4/ F.209/Vol-IV, dt 04.03.2008 which is as follows:

The conclusions drawn by the NIT authorities based on the ND tests

conducted on the lining concrete are as follows.

i) The Rebound Hammer tests revealed that the concrete adopted

for lining of Kakatiya Canal from Km. 284.04 to 319.90 confirms to
M10 grade of concrete.
ii) The compressive strength of the canal lining concrete is 13.86 Mpa

The Superintending Engineer, SRSP-II has communicated the report

and ND tests results to the Chief Engineer, GLlS vide letter No. DEE/TS/T2/
Pkg- 521B07-IV/205, Dt 04.03.2008. The Chief Engineer/ GLlS has submitted
the same to the Secretary to the Government vide letter No.
CE/GLlS/WGL/DCE/OT2/TS4/F.209Nol.-IV, dated 04.03.2008

The Govt vide Memo No.34147/SER.VII(V&E)A.1/2006-14,

dated 15.05.2013 have decided that the BOCE together with experts in the field

of Civil Engineering drawn from JNTU and Osmania University re-examine

this issue and take a stand in the matter both about the extent

of acceptability of core tests/ND tests especially for the CC lining and also

the reservation of the field Engineer visa-vis the reports furnished by the

private lab. If needed, the matter after coming to a conclusion may then be

referred to the Bureau of Indian Standards for their considered deliberations.

The Engineer-in-Chief (I) vide letter No DCE-I/OT3/ AEE9/V&E

Report/2015 dated 15.10.2015 has requested the HOD, Civil
Engineering Department, JNTU, Hyderabad and the HOD, Civil
Engineering Department, Osmania University, Hyderabad to examine
the issue and give considered opinion on the extent of acceptability of Core
tests/ND tests especially for CC lining with reference to IS code
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1S1199-1959, Clause 4.3.1 and 4.41 and the same was submitted to the
Government vide ENC(I)/Hyd letter No ENC(I)/DCE-1/0T-3/AEE-9/ V&E,
Dt:24.3.2016 and also requested the Chief Engineer, GLlS to follow-up
the issue with HOD's of Civil Engineering to submit the report at an early date.

Further, the Engineer-in-Chief (I) vide letter No DCE-1/ OT3/

AEE9/V&E Report, Dt: 07.01.2017 has requested the Chief Engineer, GLlS,
Warangal duly enclosing the copy of opinion of HOD of Civil
Engineering Department, Osmania University, Hyderabad to discuss the above
subject matter and submit a detailed report immediately and may also discuss with
Chief Engineer, Quality control in the matter.

The opinion of Prof Bhikshma, HOD of Civil Engineering, Osmania University

Hyderabad on ND test results who visited the site on 23.10.2016 is that, the visual
observations of the concrete at site appears to be impervious and intact without
any degradations.

According to the NDT test results carried out by the NIT Warangal the
average compressive strength of Concrete for cc lining indicated adequacy of
concrete for M-10 for the thickness of concrete around 100mm. NDT test
results for lower grade concrete with lesser thickness may be attributed to the
lower value of cores which in turn results into failure of concrete core samples.

According to the Indian Standard Specifications IS 456-2000, IS 516-1959,

IS 1199 - 1959 and IS 13311, 1992(Part I & II) concrete has certain standards for
extractions of cores, testing of concrete and evaluation of results. As the thickness
of the concrete for canal CC lining is only 100mm, the possibility of the
obtaining core with good shape is difficult task which is due to vibration and
disturbance of concrete during core cutting process. Variation in concrete cannot
be quantified exactly by single or with a particular reason as the materials
variations are very high

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 Further, the SRSP Stage -II Project is a prioritized project under AIBP
scheme targeted to complete the work by June 2018.

In this regard, the above issue along with Chief Engineer, Kanthalapally
letter dated 22.01.2018 is placed before the Board of Chief Engineers for its
examination and offering its views/ recommendations to the Government for
taking further action at Government level.

The Board of Chief Engineers has discussed the matter vis-a-vis guide
lines issued by the Government on CC canal linings vide Memo dated 28.05.2013
and deferred the matter for next BOCE meeting for its comprehensive
deliberations and necessary recommendations in the matter, accordingly.
Action: Chief Engineer, Kanthalapally, I & CAD Dept

Sd/- B. Nagendra Rao; Dt 08.03.2018

Engineer-in-Chief (IW),
Irrigation &CAD Department and
Chairman, Board of Chief Engineers

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