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 If the number of contractors are less than the limited list or the contractor is not willing
to do the work, then the work will be completed through open tender system
 In limited tender the work will be done upto 20 lakh.

 In some special condition also the limited tenders will be called and the tenders invite
for following amount slabs for sanctioning powers –
Upto 25 lakh -JAG/SAG

Beyond 25 lakh to 1 crore -SAG/DRM
Beyond 1 crore to 5 crore-PHOD/CHOD

30. RATE CONTRACT :
The rate contract is a contract under which during the period of its currency , the contractor
engages to supply materials on demand, irrespective of quantity, at fixed unit rates or prices

within a given period of receipt of such demand.

31. RUNNING CONTRACT :

The running contract is one under which, during the period of its currency, the contractor
engages to supply, and other party the contract to take, a specified quantity (with a
percentage tolerance either way ) of materials , as and when ordered, at fixed unit rates or
prices , within a given period of the receipt of such order.

NOTE : The rate and running forms of contract are primarily intended for application to
stores contracts.

33. VED analysis:- VED means vital, essential and desirable this is a device to measure
service level and to avoid the stock out cost, under which the items of stores are classified as
vital , essential and desirable. Under the VED analysis the working of equipment is given

priority to achieve the higher service level.
Vital:- vital items are such without which the equipment stop working and there is no time
left for procurement of such items. For example a diesel engine cannot work without diesel.

Essential:- essential items are such without which the equipment may work but with
efficiency and there is time left for procurement of such items. For example grease and oil
Desirable:- desirable items are such without which the equipment can work for example

additional facilities provided in the trains

Q.2. Objective of Factory act 1948. Explain the arrangement security and health
The first factory act was introduced in 1881 after time to time amendment the present factory
act is established in 01-Apr-1949
Objective of Factory act: For employees

i. Health iv. Weekly rest
ii. Security v. Wages
iii. Hours of working vi. Information about overtime