Do Contractors Need Separate Licenses for Two Tenders at the Same Location?

Hello, please consider the following case:

1) A contractor is completing two tenders with the same set of contract employees in the same premises.

2) He has obtained a license from the CLRA authority for 'X' employees based on the first tender. Should he also obtain a license for the second tender, even if the address of the premises is the same, the nature of work is the same, and the set of employees he is using for the execution of work is also the same?

Experts, could you please shed some light on this?

Thanks in advance.

License Requirements for Contractors

A license is obtained based on Form V provided by the Principal Employer. In respect of one contractor, the Principal Employer cannot issue two declarations. Therefore, as long as the number of employees engaged for the execution of the second project remains the same, the contractor need not obtain a fresh license. Moreover, the license is plant-specific. Therefore, in my opinion, the same license would serve the purpose.

Regards, Madhu.T.K

License Requirements for Multiple Tenders

If the principal employer is the same in both tenders, then there is no need for a separate license. However, if the principal employers are different, then two different licenses are required.

Basima, LabourNET Law Consultancy, http://www.labournetlc.com

Liability for Issuing Form No. V

The principal employer sent the contractor to work in the client's factory premises, who is another principal employer. Who is liable to issue Form No. V to this contractor?

Best regards,
Rahul

If the principal employer is the same and the location is also the same, then there is no requirement to obtain a separate labor license for each work. If more labor is required than the prescribed number of laborers in your license, you can revise the number of laborers.

Thanks and Regards

Dear Sunny,

I have a different opinion on the subject, and as per my opinion, you should go for a separate license for both tenders. It may be possible that the address of the premises is the same, the nature of work is the same, and the set of employees he is using for the execution of work is also the same, but I would like to share the following in support of my opinion:

1. Principal Employers may issue a separate Form V for separate tenders/work orders.

2. The license is obtained based on the work order, as the dates of commencement and completion of both tenders must be different.

3. Taking one consolidated license may lead to legal difficulties as, to legally close a site, you need a completion certificate/TOC from the client, and in the case of two tenders, they will issue two completion certificates/TOC, and you may be caught in an audit regarding its legality or financial aspects.

4. A separate license will also exempt you from providing certain facilities while executing work orders, which you have to provide based on the engagement of workmen, such as a canteen that should be provided when you are engaging 100 workmen at the site. However, if you take two separate licenses for 50/50 workmen, then it is not applicable.

Therefore, I would suggest you go for separate licenses instead of one license for two tenders/orders.

Regards