NLC TAMILNADU POWER LIMITED

REGD. OFFICE NEYVELI HOUSE , 135, PERIYAR EVR HIGH ROAD, CHENNAI-600 010
CORPORATE OFFICE : BLOCK-1, NEYVELI 607 801, TAMIL NADU

TUTICORIN THERMAL POWER PROJECT (2 x 500MW)

Construction of various Type of Residential Quarters

(Type-A, B, C, D & Toilet block), Barracks, Armoury & Quarter
Guard, Canteen building etc., including Electrification works for
CISF of NTPL at Tuticorin
VOLUME II

DRAFT CONTRACT
*****
Tender No: CO CONTS/0030 C /NTPL/TTPP/CISF Quarters/2015, Dt.08.05.2015
Bid submission Date & Time on or before: 11.06.2015 upto 14.30 Hrs.
Date & Time of Opening: 11.06.2015 @ 15.00 Hrs.
Telephone No: 04142-252210, 252215
Telefax: 04142-252645/ 252646/ 252026
Web site:www.nlcindia.com
E.Mail:

[email protected],
[email protected]
[email protected]

VOLUME - INDEX
S. No.
1

TITLE
Volume-I

NOTICE INVITING BID, INSTRUCTION TO BIDDERS

AND PRICE SCHEDULE.

No. of
pages
95

Volume -II

DRAFT CONTRACT

75

Volume -III

TECHNICAL SPECIFICATION AND DRAWINGS

133

INDEX
Volume- II
Name of Work: Construction of various Type of Residential Quarters
(Type-A, B, C, D & Toilet block), Barracks, Armoury &
Quarter Guard, Canteen building etc., including
Electrification works for CISF of NTPL at Tuticorin

Section

Title

Page

GENERAL CONDITIONS OF
CONTRACT

II

SPECIAL CONDITIONS OF
CONTRACT FOR CIVIL WORKS

52

III

CONSTRUCTION CONDITIONS OF
CONTRACT

56

IV

FORMATS AND ANNEXURES

65

CONTRACT AGREEMENT
(To be on a Stamp Paper of appropriate value)

1.0

The CONTRACT made this..day of . in the year 2015

TAMILNADU POWER LIMITED having their

between NLC

Registered office at

hereinafter called the PURCHASER and M/s.

having

their

registered

office

at

hereinafter

called

the

CONTRACTOR for in accordance with the Purchasers Tender

No. dated .. and the Contractors (then Bidder) offer No.
dated .., Schedule of references containing minutes of meeting
and the other correspondences exchanged between the Purchaser and the Contractor and
Letter of Award No.dt. forming part of this agreement
and is registered as Contract Nodt..

2.0

It is further to confirm the acceptance of the Bid proposal as notified by the Purchasers
Letter of Award Nodt.. and the Contractors acceptance vide letter
No.dt

3.0

The

Purchaser

has

accepted

the

proposal

of

the

Contractor

with

such

changes/modifications mutually agreed to through exchange of Correspondence and

minutes of the meeting for .

4.0

In view of the forgoing the Purchaser and the Contractor have agreed as hereunder.

4.1

The Contractor hereby agrees to execute the contract in conformity with the provisions
contained in the contract documents which shall mean and inclusive of the following
documents and form part of this contract.

Volume I
Schedule-I

List of references,

Schedule-II

Salient features,

Section-I

General conditions of contract,

Section-II A

Special conditions of contract for civil works

Section-II B

Special conditions of contract for Electrical works

Section-III

Construction Conditions of Contract.

Section-IV

Formats & Annexures

Volume II
Technical specifications and Drawings
The Contractor also agrees to complete the contract in full as per the time schedule
indicated in Clause 31.3, Section-I of volume-II.
4.2

The Purchaser hereby agrees to pay to the Contractor on due performance of the
Contract a price of `. (in figures and words) in the manner and in
accordance with the terms specified in the Contract.

5.0

In WITNESS whereof the parties hereto have hereunder affixed their signatures on the
day, month and year written as above.

Contractor :

Purchaser

Printed Name

Printed Name

Designation

Designation

Address

Address

(Office Seal)

(Office Seal)

Witness with Name & Address:

(Official Address)
1.

1.

2.

2.
4

SECTION-I
GENERAL CONDITIONS OF CONTRACT

INDEX
TITLE

CLAUSE

PAGE No.

Definition of terms

Scope of Work

13

Interpretations

16

Contract Documents

16

Construction of Contract

17

Manner of Execution of Contract

17

Bid Price Price basis

17

Taxes and Duties

18

Contract Price

19

Deductions from Contract Price

19

10

Secrecy and use of Contract Documents.

20

11

Release of information

20

12

Language and Measures

20

13

Contract Performance Guarantee

20

14

Firming up of Details

21

15

Inspection and Tests

22

16

Facilities to be provided by the Owner

23

17

Assignment, Sub Contracting and Subletting

24

18

Co-operation with other Contractors

25

19

Power to vary or Omit

25

20

Contractors Defaults

26

21

Defect liability period

27

22

Replacement of defective parts and materials

28

23

Patent Rights and Royalties

28

24

Owners decisions

28

25

Delays by the owner or his authorized agent

28

26

Misuse of the works

28

27

No interest payable

29

28

Progress reports and photographs

29

29

Taking over

29

30

Completion of Contract

29

31

Time schedule

29

32

Effectiveness of contract

30

33

Time is the essence of contract

30

34

Liquidated damages for delay

30

35

Grant of extension of time

31

36

Payment

32

37

Due date of payment

32

38

Terms of payment

32

39

Advance payment guarantee

33

40

Final bill

33

41

Expenditure under the contract

34

42

Limitation of liabilities

34

43

Right of owner and liability of contractor

34

44

Reconciliation of payments and accounts

34

45

Transfer of title

35

46

Insurance

35

47

Liability for accidents and damages

36

48

Force majeure

36

49

Suspension of work

36

50

Enforcement of terms

37

51

No waiver of rights

37

52

Defence of suits

37

53

Grafts and commission

37

54

Materials not incorporated in works.

37

55

Settlement of disputes

37

56

Resolution of disputes and arbitration

38

57

Termination of contract

40

58

Jurisdiction of contract

40

59

Identification of defects

41

60

Tests

41

61

Correction of defects

41

62

Uncorrected defects

41

63

Measurement of works

41

64

Variation in the quantities

41

65

Rate for variation

41

66

Protective coatings

42

67

Weight and Measures

42

68

Cost of repairs

42

69

Completion

42

70

Notices

42

71

Final Account

43

72

As Built Drawings

43

73

Liquidation, Death, Bankruptcy etc.

43

74

Responsibility for performance of contract

43

75

Completeness of work

43

76

Type, Quality of materials and workmanship

44

77

Drawings and documents

45

78

Contractors superintendence

45

79

Approval by the owner

46

80

Compliance of laws and regulations

46

81

Rejection

47

82

Negligence

47

83

Indemnity

48

84

Termination of contractors personnel

49

85

Safety and Security

49

86

Owners Authority

50

DEFINITION OF TERMS:
Acceptance
Agreement
Approval of the
Purchaser

Acceptance shall mean the manifestations by the owner of his assent to the
mutually agreed terms of the offer by the bidder.
Agreement shall mean mutual understanding between the parties which
creates obligations between each other.
Approval of the owner shall mean the written approval by the owner of a
document or other particulars or matters in relation to the Contract.

Base Date shall mean the first working day of the calendar month, one
month prior to the date set for opening of tenders-Part-I
Bid shall mean a valid offer made against any tender enquiry, indicating
Bid
terms, conditions and prices.
Bidder shall mean a person /party/ firm/ company /consortium who submits
Bidder
an offer/ bid against a tender enquiry.
/Tenderer
Bill of Quantities Bill of Quantity shall mean the completed bill of quantities for various item
descriptions forming part of the bid.
Base Date

Codes and
standards

Compensation

Completion
certificate

Completion
Time

Codes and Standards shall mean such codes and Standards as prescribed in
ISS/ DIN/ BSS as applicable to the equipments, components, plant,
machinery, consumables. ASM Test Codes AIEE Codes Indian
Electricity Act, Indian Explosives Act, Indian Petroleum Act, Indian Mines
Act.
Compensation shall mean anything as an equivalent as to make assessment
for loss or damage.
1. The consideration for services rendered by contract agreed or implied.
2. Remuneration for injury suffered, especially when it has resulted in
measurable loss or in expenditure Money paid for damage caused by any
wrong or breach of contract, to the person defrauded or injured.
Completion Certificate shall mean the certificate issued by the Purchaser
after the rectification of the defects identified based on a complete joint
survey of the work jointly by the contractor and the Purchaser and
acceptance thereof by the Purchaser.
Completion Time shall mean the period stated in the contract for the
completion of Works calculated from the date of handing over of site.

Conditions

Condition shall mean the conditions agreed between the parties and
stipulated in the Contract agreement.

Consequential
damages

Consequential damages means the damages, claimed in a tort or breach of

contract which do not normally follow from the tort or breach.

Contract period

Contract period shall mean the period / time schedule agreed in the contract
during which period the Contracted work shall be performed / executed,
inclusive of any period covered by extension(s), duly issued.

Contract price

Contract price shall mean the price accepted in the contract between parties
during contract period.

Contract

Contract shall mean and include this contract between the owner and
Contractor for the execution of the works as per agreed terms, conditions
specifications prices and enforceable as per law.

Contractor

Contractor shall mean Successful bidder whose bid/offer has been accepted
by the owner and on whom the LOA/Contract/Work order is issued by the
owner and shall include his heirs, successors, legal representatives and
permitted assignees.

Day
Delivery

Day shall mean the period between midnight to next midnight.

Shall mean delivery of only such equipment, materials and supplies
specified in the Contract and manufactured and/or supplied by the
Contractor in accordance with the sequence of delivery schedule of the
Contract and in case of construction and erection work, delivery shall mean
the approval of the owner to the said construction and erection work.

Dimensions

Dimensions shall mean length, area, Volume etc. all expressed in metric
system.

Drawing

Drawing shall mean such drawings provided along with bid documents /
furnished during the progress of work by the owner and approved.

Effective date of
Contract

Effective date of Contract shall mean the date of handing over of site

Engineer shall mean the Owner/ Purchaser or the officer nominated by the
owner.
Erection shall mean the putting up of structures and/or installation of plant
Erection
and equipment under the Contract by the Contractor and/or under the
supervision of the Contractor and will include any service which the
Contractor is required to perform at the site with his own and/or other staff
and/or labour and/or Sub-Contractor for the due fulfillment of the Contract.
Final take over will occur when the following are achieved.
Final take over
a) All supplies and services completed as per contract.
b) Final balance documentation, if any, incorporating latest
modifications in as built drawings has been submitted by the
contractor in requisite copies.
c) The contractor has rectified in a definite manner all
objections/observations mentioned in the Provisional
Completion certificate.
d) taking over of the site and the completed works after issue of
completion certificate by the Purchaser.
Guarantee/ Warranty/Defect liability period shall mean the period of 12
Guarantee/
Warranty/Defect (twelve) months from the date of issue of completion certificate.
liability period
Engineer

Inspecting
Officer/
Engineer
Instruction

Inspecting Officer/ Engineer shall mean any employee of the owner or

Consultant or organization or agency specified / intimated for the purpose of
inspection of goods kept ready.
Instruction shall mean any drawing, instruction written, directions,
explanations issued by the owner.

10

Letter of Award
(LOA)

Letter of Award (LOA) shall mean the official communication issued by the
owner notifying legally to the bidder that his bid has been accepted on
mutually agreed terms, conditions and prices.

Liquidated
damages

Liquidated damages, not as a Penalty, is agreed upon between parties in the

Contract towards time delay. Liquidated damages can also be prefixed
towards shortfall in performance parameters agreed in a Contract.

Mobilisation

Mobilisation shall mean establishment as per Contract of sufficiently

adequate infrastructure by the Contractor at site comprising of construction
equipment, aids, tools & tackles including setting up site offices with
facilities such as power, water, communication etc. establishing man power
organization comprising of Resident Engineers, Supervisory personnel and
an adequate strength of skilled, semi-skilled and unskilled workers, who,
with the so established infrastructure shall be in a position to commence
execution of work at site(s), in accordance with the agreed time schedule of
completion of works. Mobilisation shall be considered to have been
achieved if the Contractor is able to establish infrastructure as indicated
above to begin work at Site in accordance with agreed schedule of work to
the satisfaction of the owner.

Month
Notice

Month shall mean English Calendar month

Notice shall mean any written Notice issued by the owner / Bidder /
Contractor
A Notice published by the owner with the intention to invite offer/ bid for
his requirements.

Notice Inviting
Tenders (NIT)/
Bid (NIB)
Particulars

Particulars shall mean the following:

a) Specification
b) Drawing
c) Sealed pattern denoting a pattern sealed and signed by the
Inspector.
d) Proprietory make denoting the product of an individual firm.
e) Any other details governing the construction, manufacture,
supply and/or erection as per the Contract.

Plant,
Equipment,
Stores, Item or
Material
Price

Plant, Equipment, Stores, Item or Material shall mean and include plant,
equipment, material, machinery or any part thereof to be provided for and
the erection work to be done by the Contractor under the Contract.

Project

Project shall mean the project specified in the tender documents and
specification.

Purchaser/
Owner

Purchaser/Owner shall mean and include NLC TAMILNADU POWER LIMITED

(NTPL) /Neyveli Lignite Corporation Limited (NLC) and its different
functionaries entrusted with the responsibilities in relation to this contract in
respect of the area of responsibilities of such functionaries.

Price shall mean the price agreed in the contract between the parties towards
the scope of work.

11

Provisional take Provisional take over shall mean acceptance of prima facie and in principle
subject to completion of / fulfillment of certain conditions. This is not a
over
complete acceptance of work entitling the contractor to get full payment or
to assume that all the obligations and terms and conditions of the contract
have been fulfilled to the satisfaction of the Owner / Purchaser.
Site shall mean the land acquired and set for the location of the project /
Site
work.
Specification
Sub-contractor
Sub-let
Sub-Supplier
Supervision

Supply and
Services
Taking over
certificate

Tender

Test
Time

Specification shall mean the Technical Commercial specification

including modification set in the tender / contract documents.
Sub-contractor means a Contractor selected with the approval of the owner
to carry out certain part of the scope of work.
Sublet shall mean to let out the work to another.
Sub-supplier means the supplier selected with the approval of the owner to
supply certain items included in the Scope of Work.
Shall mean the successive control and directions given by the Contractor in
relation to Contract work during execution of the Contractors and/or his
sub-Contractors work.
Shall mean and include any and all equipment, supplies, materials,
documents and engineering & technical services both outside India and in
India to be made/ performed by the Contractor under this Contract.
Taking over certificate shall mean the certificate issued by the owner to the
Contractor. It means physical possession of the erected plant with or
without minor defects and deficiencies in work subject to testing and
fulfillment of guaranteed design parameters.
Tender shall mean the Notice Inviting Bid issued by the NLC together
with the Instructions to Bidders, General Conditions of Contract, Special
Conditions of contract for Civil works, Erection conditions of contract,
Technical Specifications and Drawings, howsoever called and shall include
Appendices, Annexures, Formats and attachments thereto, as also any and
all amendments/ Corrigendum / errata/ clarifications issued by the Owner
till the Bid opening (Part-I) Date
Test shall mean such test / tests stipulated or considered necessary by the
Inspecting Officers.
Time shall be reckoned by months, weeks, days and hours, month being
equivalent to the Calender month according to the Gregorian Calender. The
day or days unless herein otherwise expressly defined shall mean Calender
day or days of 24 hours each.

Time of
Completion

Time of completion shall mean the time / period stated / agreed for
completing the scope of work specified in the contract.

Warranty

Warranty shall mean Contractors assurance to the Purchaser that the goods
or property is or shall be as represented and if not it will be repaired and
reconditioned or replaced by the Contractor at his cost or expenses.

Weight

Weight shall mean the calculation of a load. It is to be stated in ton (1 ton =

1000 kilogram) and/or kilogram (1 Kilogram = 1000 gram).

12

Works shall mean plant, non-plant, buildings, Structures, Foundations and

all plants, Equipment, Components to be provided and other construction/
erection services that the contract requires the contractor to provide.
Words importing persons shall include firms, Companies, Corporation, associations or body of
individuals whether incorporated or not. Words importing masculine gender or singular
number shall also include the feminine gender and plural number and vice-versa where the
context so requires or permits.
Terms and expressions not herein defined shall have the same meaning as are assigned to them
in the Indian Sales of Goods Act (1930), failing that in the Indian Contract Act (1897) and
failing that in the General Clauses Act (1897) and such others as mentioned from time to time.

Works

A.
1.0

GENERAL:
SCOPE OF WORK:

1.1

The Scope of work of the Contract includes Construction of Type-A qtrs-4 blocks of
48 houses; Type-B qtrs- 2 blocks of 24 houses; Type-C qtrs-1block of 6 houses;
Type-D qtrs- 1block of 1 house; Barracks, Armoury & quarter guard, Canteen
building & Toilet block, providing necessary labour, materials(unless other wise
specified) construction equipment, tools and plants, appliances, temporary works, supply
and delivery to site, storage at site, construction, Electrical lighting works etc for the
proper completion of work for Construction of various type of residential Quarters
(Type-A, B, C, D & Toilet block), Barracks, Armoury & quarter guard, Canteen
building etc., including Electrification works for CISF of NTPL at Tuticorin. in
accordance with the Tender Specifications.

1.2

Setting out the dimensions as per drawings and instructions of the Engineer.

1.3

The scope of work for this contract will also include such other related works to carry out
the items specified in the schedule of items and rates although they may not be
specifically mentioned in the above paragraphs and all such incidental items not
specified but reasonably implied and necessary for completion of the job as a whole, as
desired and as directed by the Owner.

1.3.1

WORK TO BE PROVIDED BY THE CONTRACTOR

Unless otherwise specified, the work to be provided by the Contractor for the items
mentioned in the Price Schedule shall include but not be limited to the following:

1.3.2

Furnishing all labour, materials (unless otherwise specified),supervision, construction

plants, equipment, supplies, transport to and from the site, all incidental items and
temporary works not shown or specified but reasonably implied or necessary for the
proper completion, maintenance and handing over of the works except items specified to
be furnished by the Owner or others all in accordance with the stipulations laid down
in the contract documents and additional stipulations as may be provided by the
Engineer during the course of works.

1.3.3

Giving all notices, paying all fees, taxes etc., in accordance with the General Conditions
of Contract, those are required for all work including temporary work.

1.3.4

Marking benchmark pillars and reference line pillars and other identification
marks and maintaining them upto the completion of the work shall be responsibility of
the Contractor. He shall provide such assistance, instruments, machines, labour and
materials (unless otherwise specified) as are normally required for examining, measuring
and testing any work and the quality, weight or quantity of any material used.

13

1.4

The contractor shall furnish sufficient samples of all materials (supplied by the
contractor) required by the Engineer at free of cost for testing/inspection and approval for
use in work.

1.5

The contractor shall carry out the work as per the instructions given by the owner in the
absence of the specifications for any particular item of work. Such clarification/
instructions shall be held to be the correct interpretation/provision of the Agreement.

1.6

Whether specified elsewhere in the contract or not, the contractor shall provide all
materials (unless otherwise specified), labour of every description and all tools, tackles,
plant, transport and wastage of materials necessary for the proper execution and
maintenance of the work to the satisfaction of the purchaser.

1.7

Technical Services
The Contractor shall amongst other things be responsible for the following services.
i)
ii)
iii)
iv)
v)

Total day to day supervision of construction and specialized services, if any.

Arranging for getting all the samples approved by Owner.
Preparation of all test samples for conducting routine tests so as to maintain
quality of works as per contract.
Conducting various performance tests of the work, if required, shall be
executed as per terms of contract.
Maintain the work during the Defect Liability Period (DLP) as per the terms
of the contract.

1.8

Codes to be followed
All works to be executed and/or engineering services and technical services to be
rendered under this Contract, shall be completed in the manner set out in this Contract
and in accordance with the best trade/engineering practices. Wherever the codes are not
mentioned best Standards approved by Owner shall be followed.

1.9

Total Responsibility
The CONTRACTOR shall be solely responsible for the entire supplies and technical
services, irrespective of whether supplies and service have been made/rendered by him
directly or by his Sub-Contractors.

1.10 Construction Works

1.10.1 The CONTRACTOR shall provide all necessary construction tools & tackles,
machineries, earth moving equipments, compressors, Power roller, small hand tools,
instruments, all commissioning instruments, bolts, nuts, washers, jigs and fixtures,
winches, alignment tools, surveying instruments etc and the material handling
equipment, welding equipment and accessories, measuring instruments, temporary
supports and staging, consumables (e.g. gas, electrodes etc) and other equipment which
may be required for completing the work efficiently within the time schedule provided
herein in the Contract. The CONTRACTOR shall ensure that proper documentation is
followed at entry gate of Owners premises for such items which shall be carried back by
CONTRACTOR after completion of work.
1.11

The CONTRACTOR shall carry out any and all such works, as may be required, to build
a project complete in all respect as per the Contract Specification.

14

1.12 Supervision
1.12.1 The CONTRACTOR shall depute Technical personnel from various disciplines for the
supervision of construction work under his scope of work. The above mentioned
Technical personnel shall supervise the construction and shall attend to the defects, if
any, during the defect liability period also.
1.13

Quality Assurance Programme:

The Tenderer shall include in Part-I of his Bid the quality assurance programme
containing the overall quality management and procedures which he proposes to follow
in the performance of the works during various phases
To ensure that the services under the scope of this Contract, whether within the
Contractors works or at his Sub-contractors premises or at the Owners site or at any
other place of work are in accordance with the Contract Documents, the Contractor shall
adopt suitable quality assurance programme to control such activities at all points
necessary. Such programme shall be outlined by the Contractor in Part-I of his Bid
Quality assurance programme of the Contractor shall generally cover the following:
His organisation structure for the management and implementation of the proposed
quality assurance programme.
Documentation control system.
Qualification data for Tenderers key personnel.
The procedure for purchase of materials and selection of Sub-contractors services
including vendor analysis, source inspection, incoming raw material inspection,
verification of materials purchased etc.
Control of non-conforming items and systems for corrective action.
Inspection and test procedure for field activities.
Control of calibration and testing of measuring and testing equipment.
System for indication and appraisal of inspection status.
System for maintenance of records.
System for handling, storage of records.
System for handling, storage and delivery.
The Contractor is responsible for the proper conduct of all quality control including
inspection and test required to demonstrate full compliance of the work with contract
requirements. The Contractor shall ensure that all quality control including inspection
and test requirements are defined and capable of producing documented objective
evidence that the materials and his workmanship shall meet the quality requirements of
the contract throughout all the phases of the Contract.

15

The Contractor shall establish and maintain control of all documentation essential to the
accomplishments of the works. Relevant drawings, technical requirements, contract
change information, site instructions and inspection instructions shall be available at any
time at construction site for inspection. The latest controlled copies of the Contractors
quality control procedures and quality plans during all phases of work shall be available
at all locations, where operations essential to the effective functioning of the Contractors
quality assurance system are performed. All the changes to contract documentation shall
be in writing and processed in a manner which will ensure prompt action at the specified
effective point. The record of all changes as they are made shall be maintained by the
Contractor. Documents shall be reissued after a practical number of changes have been
affected. Provision shall be made for the prompt removal of obsolete documents,
instructions, procedures etc. from all points of issue and use.
1.14.

The works covered under the scope of this Contract shall be carried out as per technical
specifications enclosed as Volume III of this document.

2.0
2.1

INTERPRETATION:
In interpreting these Conditions of Contract, singular also means plural, male also means
female or neuter and the other way around. Headings have no significance. Words have
their normal meaning under the language of the Contract unless specifically defined.

2.2.

The documents forming the Contract shall be interpreted in the following order of
precedence:
a. Contract Agreement
b. Letter of Award.
c. Minutes of meeting
d. Correspondence
e. Contractors bid
f. Specifications
g. Drawings
h. Bill of quantities and
i. Any other documents listed in the Contract as forming part of the Contract.

3.0
3.1.

CONTRACT DOCUMENT:
The Contract Documents shall mean and include the following which are all deemed to
form an integral part of the Contract.

3.2

Invitation to Bid, Contract agreement, definition of terms, scope of work, price schedule,
general terms and conditions of contract, special conditions of contract for Civil works,
construction conditions of contracts, special conditions of contracts for electrical works,
annexures & formats, technical specifications, drawings and specification of equipments
to be supplied & erected.

3.3
3.4
3.5
3.6

The Bid, documents, attached thereto, drawings, data sheets and technical literature.
Exchange of correspondence or clarifications,
Minutes of pre award discussions and Letter of Award
In the event of any conflicts between the above documents, latest document shall prevail.

16

4.0
4.1

CONSTRUCTION OF CONTRACT:
The Contract agreement shall be for the entire scope of work and shall be considered as
indivisible contract to maintain the continuity of the performance, guarantee obligations,
time schedule, etc. (or)

4.2

Single contract or separate contracts for supplies, Services, Maintenance during warranty
period etc may be entered with.

4.3

However the separate contracts shall have necessary provisions to take care of Single
bidder responsibility, Liquidated damages, owners right to recover the dues including
LD from payment due under any of the contracts, warranty and Performance guarantee
etc.

4.4

In view of the above, any liabilities out of such separate contracts shall be borne by the
bidder/ contractor.

5.0
5.1

MANNER OF EXECUTION OF CONTRACT:

After acceptance of the Letter of Award, the owner shall draft the Contract and shall
provide one copy to the Contractor for checking. The Contract, in two originals, prepared
on a non judicial stamp paper shall be signed by the holders of power of attorney on a
suitable date and time but within 90 (ninety) days of the acceptance of the Letter of
Award.

5.2

Before signing the contract, the owner and the Contractor are deemed to have checked
and verified all the Contract Documents for the completeness and correctness.

5.3

Thereafter, within another 30 (Thirty) days, the Contractor shall supply 25 (Twenty five)
copies of the Contract, to the owner free of cost.

6.0
6.1

BID PRICE PRICE BASIS:

The Bidder is generally expected to quote in the Price Schedule, prices for all elements,
and total price as well in the Bid form (part-II) in Indian Rupee. The contract price as
stated above shall be arrived at based on the quantities and rates as quoted in the price
schedule (Volume I of this document). The contract price to be paid to the Contractor
shall be adjusted based on the actual quantities executed under various items of work as
per schedule of items and unit rates as agreed against those items of work.

6.2

The bidder shall furnish bid prices under Part II (Cover) as unit rate basis as directed.

6.2.1 The Bidder shall fill in rates and prices for all items of the Works described in the Bill of
Quantities. Items for which no rate or price is entered by the bidder will not be paid for
by the owner when executed and shall be deemed covered by the other rates and prices in
the Bill of Quantities. Corrections, if any, shall be made by crossing out and rewriting
with initial and date by the same person.
6.2.2 All duties, taxes and other levies to be incurred by the Contractor under the contract for
any other cause shall be included in the rates, prices and total bid price submitted by the
bidder.
6.2.3 The rates and prices quoted by the bidder shall be fixed for the duration of the contract
and will not be subject to adjustment on any account.
17

7.0
TAXES AND DUTIES:
7.1
General
7.1.1 All taxes, duties, fees or other charges legally levied on the CONTRACTOR in
connection with the contract work applicable during the tenure of the contract shall be
borne and paid by the CONTRACTOR.
7.1.2 All bank charges, in connection with payment to be made to the CONTRACTOR and in
connection with B.G. shall be borne and paid by the CONTRACTOR.
7.2
Tax Deduction at Source (TDS):
7.2.1 Income Tax/Other Taxes:
Income taxes and other taxes as applicable as per statutory obligation/enactments shall be
progressively deducted from the payments released to the Contractor by the Owner for
depositing with the Income Tax/other tax authorities.
7.3
Works Contracts Tax (WCT):
7.3.1 The purchaser shall, however, deduct such taxes at source as per the rules and issue TDS
certificate to the contractor. However deduction will not be made if the contractor
produces a certificate from the assessing authority concerned that he has no liability to
pay or has paid the tax under VAT of TNVAT Act at prevailing rates. TDS on works
contracts tax will be deducted as per statutory conditions on the value of contract price
(supply and service) irrespective of divisible or indivisible contract entered. Any taxes
arising out of splitting of contract is to the account of Contactor.
7.3.2 Even if the bidder quotes WCT as extra, NLC being TDS Authority will only deduct
WCT from the Invoice value of supply portion plus Services portion and NLC will not
pay WCT extra.
7.4
Payment of Service Tax:
Payment terms for service taxes
The bidder shall quote service tax with ceiling and bids shall be evaluated along with
service tax ceiling quoted. If the L1 bidder happens to be an Individual, HUF,
Partnership Firm including Association of Persons, 50% of service tax shall be remitted
directly by NLC to the tax authorities as reverse charges. If the L1 bidder happens to be a
Company, LOA shall be issued with entire service tax quoted and the responsibility for
remittance of the entire service tax shall lie with the Contractor (Company)
The service Tax shall be claimed by the Contractor subject to ceiling indicated in the
Price Schedule against submission of invoice / bills containing all details viz.
* Name of the registered person /company / firm.
* Address
* Service tax registration number
* Description of the taxable service
* Classification of the taxable service
* Value of taxable service
*Service tax charged separately indicating the education cess and SHE cess by
the contractor subject to the following conditions:
i) Submission of Service Tax Registration Certificate
ii) The Contractor has to certify that in the previous year the value of the service rendered
by them was not less than Rupees ten lakhs.
7.5
Any statutory variation in respect of Service Tax and WCT within the agreed time
schedule will be to the account of the purchaser, at actuals based on the documentary
evidence, independent of the ceiling quoted. Statutory variation arising beyond agreed
time schedule shall not be payable. However, if the time schedule is extended for
reasons not directly attributable to the contractor, variations in Service tax and WCT, if
any shall be reimbursed.

18

7.6

Statutory variations due to imposition of new taxes, duties and levies or reduction/
withdrawal of existing taxes, duties and levies by the Central or State Government as
may be applicable on the supply of Plant and Equipment etc., shall be to Purchasers
account to the extent applicable as direct liability of the Indian Contractor in execution of
this contract with the Purchaser. In case of any upward revision, the same shall be
reimbursed by the Purchaser which shall not be within the ceiling quoted subject to
production of relevant documentary evidence. However, the same will be limited to the
Contractual delivery period / execution schedule. Any benefits arise due to reduction/
withdrawal of existing taxes, duties and levies by the Central or state Government shall
be passed on to the purchaser.

8.0
8.1

CONTRACT PRICE:
The price taking into additions/deletions/modifications/ clarifications through Letters or
during Pre-Bid Conference quoted under various elements in Price Schedule as Lump
sum, and Pre-award discussions for the entire scope of work as per technical
specification as may be agreed to before letter of award shall be treated as Contract Price.

8.2

The contract price shall be deemed interalia to include and cover the cost of deployment
of construction equipment, temporary works, cement, steel and all materials and
supplies. Labour, tools, plants, equipment, templates, scaffoldings, supports, approaches,
insurance, taxes and duties, royalties, power, lubricants, consumables, transport,
handling, storage, approval, checking, testing, temporary facilities like labour camp,
roads, drains etc., facilities for checking / testing, temporary accommodation , services,
pumping out subsoil water / drainage/ rain water, disposal of rubbish, surplus earth,
supervision, over heads, profits, security, safety and fire fighting measures to be
supplied / used by the CONTRACTOR and such other items as may be required for
execution of the works as per the contract or any portion there of complete in all respects
and maintained as detailed in the contract document or as may be ordered in writing
during the tenure of the contract.

9.0
9.1

DEDUCTIONS FROM CONTRACT PRICE:

All costs, damages or expenses which the owner had incurred due to default, negligence,
failure of the Contractor in performing his obligations agreed in the contract, for which
the contractor is liable, shall be claimed by the owner. All such claims shall be billed by
the Purchaser to the contactor regularly as and when they fall due. Such bills shall be
supported by appropriate and certified vouchers or explanations, to enable the Contractor
to properly identify such claims. Such claims shall be paid by the Contractor within (30)
thirty days of the receipt of the corresponding bills and if not paid nor any objection
received from the Contractor within the said period, the Purchaser shall then recover /
deduct the amount, from any monies due or becoming due to the Contractor.

9.2

The Purchaser reserves the right to recover any claim made on the Purchaser, payable by
the Contractor, by any Statutory authority.

10.0
10.1

SECRECY AND USE OF CONTRACT DOCUMENTS:

All technical information, data, plans, drawings, specifications and other related
documents forming part of the tender as well as contract shall not be disclosed to any
party/person/firm or used elsewhere except those engaged in the performance of the
contract.

19

11.0
11.1

RELEASE OF INFORMATION:
The Contractor shall not communicate or use in advertising, publicity or sales,
production or in any other media the photographs, taken or reproducible prepared on Site
condition, without prior permission from the Owner.

12.0
12.1

LANGUAGE AND MEASURES:

English language shall be used in all documents, specifications, schedules,
correspondence, notices, and instructions in performing the contract.

12.2

The metric system of measurement shall be used in all aspects of the contract.

B
13.0
13.1

PERFORMANCE:
CONTRACT PERFORMANCE GUARANTEE:
As a contract security, the successful Bidder to whom the work is awarded, shall be
required to furnish Contract Performance Bank Guarantee(s) covering the warranty
period/Defect Liability period in the form stipulated subject to approval of the Owner in
favour of the Owner within 30 (Thirty) days from the date of Letter of Award. The
Guarantee amount shall be equal to 10% (Ten Percent) of the contract price and it shall
guarantee the faithful performance of the contract in accordance with the terms and
conditions specified in these documents and specifications. The guarantee shall be valid
till the expiry of 90 (ninety) days after the end of the Warranty period/Defect Liability
period. The Guarantee amount shall, on demand, be payable without demur in respective
of any legal dispute between bank and the contractor and between the contractor and the
owner without any condition or dispute whatsoever. Owner shall have the right to encash
CPG in full or part thereof. In case of part encashment, CPG shall be valid for the
remaining period as per contract for the balance amount or for the period as requested by
owner.

13.2 The Performance Bank Guarantee value shall be suitably adjusted towards the variation in
the Contract price.
13.3

The Performance Bank Guarantee will generally be returned to the contractor without any
interest after 90 (ninety) days from the expiry of Guarantee period/Defect Liability
period.

13.4

After expiry of warranty period/Defect Liability period, for any minor obligation such as
supply of spares & tools, etc. and other such minor pending obligations, the value of the
CPG can be reduced to the extent of value of such pending obligations.

13.5 BANK GUARANTEE GENERAL

13.5.1 All the Bank Guarantees shall be irrevocable. The Bank Guarantees shall be from any
Schedule Commercial bank in India authorised by RBI other than Bank of China
Except Bid Guarantee, all Bank Guarantees are to be furnished directly by the Banker to
NLC by RPAD/Courier to the following address:
The GENERAL MANAGER/Contracts
CORPORATE OFFICE,
NLC Limitted, Block-1,
Neyveli-607801,
TamilNadu..
20

13.5.2 The Bank Guarantee shall be furnished as per respective format prescribed by the
Purchaser and shall be submitted on Non-judicial stamp paper of value Rs.80/- and the
stamp paper shall be in the name of the Bank.
13.5.3 All the Bank Guarantees shall be payable on first demand, without demur, irrespective of
any dispute between the Bank and the Contractor to the Purchaser without any condition
or dispute whatsoever.
13.5.4 The Contractor shall arrange to keep the several bank guarantees referred to herein valid
for the requisite duration by making timely request to the Bank or Banks concerned. All
the extension for Bank Guarantees also shall be on non-judicial stamp paper of value
Rs.80/- obtained in the name of Bank. All charges connected with the bank guarantees
shall be to the account of the CONTRACTOR.
13.5.5 No interest shall be payable by the Purchaser on the Bank Guarantee on or the amount of
Bank Guarantee encashed. The Purchaser shall have the right to encash the Bank
Guarantees for non-compliance of any or all the terms and conditions of the contract.
Failure, delay or omission to invoke or encash a bank Guarantee, shall not disentitle or
disable the NLC from exercising the right to invoke the Bank Guarantee, subsequently
for the same or similar or other triggering event.
14.0 FIRMING UP OF DETAILS:
14.1 The Contractor shall prepare and submit a detailed PERT net work / BAR chart covering
various Key phases of the work such as Detailed Engineering, Procurement,
Manufacturing and field sequential erection/construction activities within 15 (Fifteen)
days of the acceptance of Letter of Award. This PERT net work/ BAR chart shall clearly
indicate the interface facilities to be provided by the Owner and dates by which such
facilities are required.
14.2 Within another 15 (Fifteen) days thereafter, the Owner and the Contractor shall discuss
on those details and finalise the following basic essential needs for the performance
involving executives of the Planning, Designs, Procurement and Construction of both
parties.

Action plan in relation to time schedule

Flow of drawings

Quality assurance programme

Manufacturing/procurement sequence schedule

Despatch sequence schedule

Requirements at Site

Input/Work front requirements and their timing

Deployment of man power

Deployment of construction machineries Tools etc.,

Other aspects
All Points discussed and firmed up shall be minuted with identification of internal
departments.
15.0

INSPECTION & TESTS

15.1

The CONTRACTOR shall ensure inspection and testing of all materials and works at his
own cost through his technical staff.
21

15.2

All samples shall be supplied by the CONTRACTOR at his own cost.

15.3

The testing charges shall also be borne by the CONTRACTOR.

15.4

All materials and works whether at the site or in CONTRACTORs /Sub- Contractors
premises shall be subject to inspection and test by Owner.

15.5

All test certificates shall be subject to Approval by the Owner.

15.6

The Owner shall have the right for inspecting and testing the contract work or any part
there of at any time during or after the construction, fabrication, erection and the
CONTRACTOR on demand from the Owner shall carry out such tests in appropriate
manner in the presence of and free of charge to Owner should the CONTRACTOR
himself not be in a position to carry out the tests, he shall, on the Owners demand
prepare specimen and sample and send them at his own cost to such testing stations as
the Owner may specify.

15.7

If any test is ordered by the Owner to be carried out by an independent person at any
place or other than the site or the place of manufacture then cost of such test shall be
borne by the CONTRACTOR

15.8

The inspection, examination or testing carried out by the Owner, shall not relieve the
CONTRACTOR from any of his obligations under this Contract

15.9

The inspection and tests shall be planned such that it will not unduly affect the progress.

15.10 The Owner shall have the right to be present during all tests carried out by the
CONTRACTOR. The CONTRACTOR on being requested so to act, shall present
sufficient documentary evidence that the material used will meet the specified
requirement. If called for, samples and specimen shall become the Owners property.
The CONTRACTOR shall notify the contract work, particularly before any assembly, in
order that the inspection or tests can be carried out as may be required to ascertain
without prejudice to the CONTRACTORs liability, whether the materials and/ or
services are in conformity with the requirement of the contract. All inspection and tests
shall be carried out as per the approved procedure unless otherwise specified.
15.11 The Owner upon giving 7 days notice in writing and stating any grounds of objection,
shall have the right to reject any or an equipment, work or material, or demand
rectification or replacement thereof .
15.12 In all cases whether at the premises or works of the CONTRACTOR or of any SubContractor the CONTRACTOR shall unless, otherwise specified, provide labour,
materials, electricity, fuel, water, Stores, apparatus and instrument and/ or facilities as
may reasonably be deemed to carry out efficiently such tests in accordance with the
contract .
15.13 When the tests have been satisfactorily completed at the Contractors or SubContractors premises, the Owner shall forthwith issue a certificate to that effect. If a
final certificate cannot be issued, a provisional certificate shall be issued. If the tests
were not witnessed by the Owner or his representative the certificate shall be issued on
receipt of the test reports from the CONTRACTOR but not later than 30 days after the
receipt of the test report by the Owner. Relevant test certificates for raw materials,
consumables, welds etc. shall be produced to the inspecting personnel whenever asked.
In case any inspection fails, re inspection / retest shall be carried out after necessary
rectification/replacement by the CONTRACTOR at his cost.

22

15.14 The satisfactory completion of inspection/test or issuance of the certificate by the Owner
or his inspector/representative shall not bind the Owner to accept the work, should it on
further inspection/test during or after erection, be found not, to comply with the
requirement of the contract.
15.15 In the case of such equipment, structural, etc. where tests set forth above cannot be
conducted either partially or fully in CONTRACTORs premises but have to be
conducted at site only after assembly/erection, the provisions under this article shall also
apply. However, in such cases prior approval of the Owner shall be obtained by the
CONTRACTOR.
16.0
16.1

FACILITIES TO BE PROVIDED BY THE OWNER

General
a. The Owner shall not be in a position to help in any way in providing residential
accommodation, medical and schooling facilities.
b.

16.2

Owner shall furnish the contractor with a reference point and base line within the
project boundary limits and a level benchmark. The contractor shall setout the works
and shall be solely responsible for the accuracy of such setting out.

Construction water :
a.
Till this work is completed Construction water shall be supplied free of Cost by the
Owner to the Contractor at one point within a distance of 2000 M from the battery
limit of construction site. The Contractor shall make his own arrangements to lay
and maintain necessary distribution lines from this point at his own cost. The
contractor shall also make necessary arrangements for providing construction water
(transport by tanker/ lorry) from this point only.
b.

Contractor shall be responsible to store water in sufficient quantities to meet his

requirements for at least 2 days in well-built water storage tanks with covered tops
to prevent entry of foreign matter.
c. The Contractor shall ensure that there is no wastage of water. He will also be
responsible for maintaining the taps, pipelines etc. in proper condition. The
Contractor shall obtain prior approval of the Owner of his distribution scheme
before laying the pipelines.

16.3

Construction Power
a.
The Contractor shall furnish the Purchaser within 30 (Thirty) days of acceptance of
Letter of Award, his electrical power requirement. Then the Purchaser shall provide
with supply of electricity at one point free of charges for the purpose of the scope
of work in the contract only. The electricity furnished shall be 440 volts, 3 phase,
50 cycles and 230 volts, single phase, 50 cycles.
b. The contractor shall make his own arrangements for distribution.
c.
The contractor shall be provided with construction power for the purpose of the
erection /construction under the contract only at one point within a distance of
1000 M from the battery limit of construction site free of charges. The Contractor
shall make his own arrangements to lay and maintain necessary supply lines for
temporary power from a single point to be provided by the Owner. The Contractor
shall make his own further distribution arrangement. All temporary wiring must
comply with local regulations and will be subject to the Owners inspection and
approval before connection to supply and later.
23

d.

Non-availability of power from the Owner shall not be an excuse for delay in
completion of erection/construction. But Contractor shall maintain diesel generators
of adequate capacity in the event of Owner not able to supply the power in required
quantity.

e.

The Contractor will supply and install switches, fuse units of suitable rated capacity
separately for power and lighting on a frame preferably of steel and provide
rainwater protection cover on the switches. The installation will be made as per
relevant rules and site locations, which are to be finalised in consultation with
Owners personnel.

f.

Display of danger board signs in Tamil and English languages near switches is to be
ensured by the contractor.

g.

The Contractor will supply and install all distribution cables, wires and switches etc.
of rated capacity for the work starting from the source of power at his own cost. He
will employ Electricians having valid Electrical Licence for carrying out the
installations as well as for the maintenance works.

h.

The Contractor will provide proper facilities to the Owner of the Plant concerned or
his authorized representative for inspecting his temporary electrical installation as
and when required. The Contractor will immediately attend to the defects so pointed
out during this inspection including replacement of faulty cables, switches etc.

i.

The Contractor shall not effect any change in the temporary installation unless
permission is obtained from the Owner or his authorized representative.
The Contractor shall be responsible for all damages, losses etc. due to fire or
otherwise if it is due to his negligence, improper installation, operation and/or
maintenance of his part of installations.
The Contractor shall follow all necessary engineering practices and standards in
these works.

j.

k.

17.0

ASSIGNMENT, SUB- CONTRACTING AND SUB-LETTING:

17.1

The Contractor shall not assign the Contract or any part thereof for his any benefit or
interest. The Contractor shall not Sub-contract the Contract Work back to back to third
parties for the performance of this Contract.

17.2

The Contractor will select, if so needed any sub-contractor or Sub-supplier with the
approval of the owner within one month from the date of Letter of Award. Any such
action without the concurrence of the owner shall be void. The owner will approve/reject
within 30 (Thirty) days in writing upon the receipt of proposals along with all supporting
details. Thereupon the Contractor shall be responsible for transmitting all pertinent data
of the so approved Sub-Contractor/Sub-Suppliers.

17.3

The Contractor shall later furnish the order issued to the sub-contractor without prices but
with pertinent data such as place of work, delivery schedule etc.

17.4

The approval of the sub-contracting agreements shall not relieve the Contractor of his
obligations in the contract.

24

17.5

Force Majeure conditions prevailing at the works of the Sub-Suppliers/ Sub-Contractors

other than a maximum of 4 (Four) major Sub-Suppliers / Major Sub-Contractors (the
names of which have to be indicated by the Contractor and got approved by the
Purchaser; however, the decision of the Purchaser shall be final) shall not be recognized
by the Purchaser on any account and it shall be upto the Contractor to make necessary
alternative arrangement to execute the Contract within the agreed time schedule. The
Contractor shall furnish the list of Sub-suppliers / Sub-contractors to be considered under
Force Majeure conditions before signing of the Contract.

18.0

CO-OPERATION WITH OTHER CONTRACTORS:

18.1

The Contractor shall co-operate with other contractors and freely exchange with them
such technical data, information etc. by written communication as are necessary in the
performance of the contract. The Contractor shall furnish one copy of each of such
communication to the Planning and Construction department of the owner.

18.2

The CONTRACTOR shall interact with other CONTRACTORS as above and various
other agencies stated, in such a way that the activities of other CONTRACTORS are not
affected in a manner required for timely and sequential completion of the contract work.

18.3

Should there be any disagreement between the CONTRACTOR and other

CONTRACTORS and agencies in respect of any activity or sequencing of activities, the
same shall be referred to the ENGINEER whose decision shall be final and binding on
the CONTRACTOR.

18.4

Co-Ordination with other Contractors/agencies or any disagreement or delay in coordination or interruption in work shall not entitle the CONTRACTOR to any extra time
or cost.

19.0
19.1

POWER TO VARY OR OMIT:

The Contractor shall not alter or amend or omit or add or vary the work. The Purchaser
shall have full power to make variation in quantities up-to 20 %(Twenty percent) of the
total contract value but without any limit for individual items. The Contractor shall carry
out such variation at the same limit price upon written notice.
The Purchaser shall grant extension of time if such variation calls for.

19.2
19.3

The Owner shall have the right, during the performance of the contract, to make any
addition to, alteration in and omission from the works or any alterations in the kind or
quality of the materials to be used therein or change the levels, lines, position and
dimension of any part of the works and shall give notice there of in writing to the
CONTRACTOR. The CONTRACTOR on receipt of such instruction in writing shall
carry out the changes as desired. Such variations shall in no way vitiate or invalidate the
contract.

19.4

The CONTRACTOR shall not change any works to be made pursuant to this Contract
except as may become necessary to enable him to meet his technical obligations under
this Contract, provided however that such changes shall be subject to prior written
approval of the Owner.

19.5

The CONTRACTOR shall proceed with the changes as requested pending settlement of
rates for extra items, if such changes require execution of any item of work not included
in the schedule of items.

25

19.6

Changes occasioned while non-observance by the CONTRACTOR of the provisions of

this Contractor arising out of detection by the Owner of errors in the documents or in
works not in compliance with the design, specifications & drawings or with the best
trade practice shall neither give rise to price adjustment nor extension of time.

19.7

The Owner shall have further power to cancel the Contract if the CONTRACTOR fails
to duly perform and complete the contract or if it appears for valid reasons that he will
fail to fulfill his obligations under the Contract for reasons other than those relieving of
his responsibility under any other provision of this Contract. In such an event, without
prejudice to and claims under this Contract of the Owner, there shall be an equitable
settlement of this obligations arising out of this Contract.

20.0
20.1

CONTRACTORS DEFAULT:
If the Contractor neglects to execute the works with due diligence and expedition or
refuse or neglect to comply with any reasonable order given to him, in writing by the
Purchaser in connection with the work or contravene the provisions of the contract,
Purchaser may give notice in writing to the Contractor to make good the failure, neglect
or contravention complained of. If / Should the Contractor fails to comply with such
notice within 15 (Fifteen) days from the date of serving the notice, then and in such case
the Purchaser may at his discretion / will be at liberty to employ other means and
forthwith execute such part of the works as the contractor may have neglected to do or if
the owner shall think fit, without prejudice to any other right he may have under the
Contract to take the work wholly or in part out of the Contractors hands to complete the
works or any part thereof at the risk and cost of the Contractor. In that event the owner
shall have free use of all Contractors equipment available at Site in connection with the
work without being responsible to the Contractor for fair wear and tear thereof. The
owner shall be entitled to retain and apply any balance amount which may be due to the
Contactor, to the payment of the cost of executing the said part of the Works or of
completing the works as the case may be. If the cost of completing of works or
executing part thereof as aforesaid shall exceed the balance amount due to the
Contractor, the Contractor shall pay such excess. Such payment of excess amount shall
be independent of the liquidated damages for delay, which the contractor shall have to
pay if the completion of works is delayed.

20.2

In addition, such action by the owner as aforesaid shall not relieve the Contractor of his
liability to pay liquidated damages for delay in completion of works as defined.

20.3

Such action by the owner as aforesaid the termination of the contract under this clause
shall not entitle the Contractor to reduce the value of the Contract Performance
Guarantee nor the time thereof.

21.0

DEFECT LIABILITY PERIOD

21.1

The CONTRACTOR guarantees that within twelve months from the date of issue of
completion certificate in accordance with clause under Completion certificate or in the
event of more than one certificate having been issued by the Owner under the clause
from the respective dates so certified, the contract work shall not show any sign of
defects, cracks, settlements, disfigurations, shrinkage, leakage, dampness or any other
faults.

26

21.2

The CONTRACTOR shall maintain and satisfactorily execute at his own cost all such
works of repair, amendment reconstruction, rectification, replacement and any other
work to make good any faulty work during the defect liability period.

21.3

The CONTRACTOR shall, if required by the Owner, search for the causes of any
defects, imperfection or fault under the direction of the Owner. The cost of such work
shall be borne by the Contractor.

21.4

At intervals specified by the Owner, the CONTRACTOR along with the Owner shall
inspect the contract work to satisfy himself that no defects have cropped up in the
contract work. Should there be any signs of defects the CONTRACTOR shall take
immediate steps to rectify the same.

21.5

At the end of the defect liability period, the CONTRACTOR along with the Owner shall
carry out final inspection of the contract work to prove that no defects had appeared in
the contract work or that all defects which appeared in the contract work have been
rectified to the entire satisfaction of the Owner. If during the final inspection it is found
that the defects still remain in the contract work, the period of defect liability shall be
extended at the discretion of the Owner and the CONTRACTOR shall be liable to make
good the defects and be responsible for the maintenance of the work till the defect have
been fully removed.

21.6

Until the end of the defect liability period, the CONTRACTOR shall have the right of
entry at his own risk and expense, by himself or his duly Authorized representative
whose name shall previously have been communicated in writing to the Owner at all
reasonable working hours, upon all necessary parts of the works for the purpose of
inspection and taking notes there from and, if he desires, at his own expense, making any
tests subject to the approval of the Owner, which shall not be unreasonably withheld.

21.7

The issue of the Owners certificate shall in no way exempt the CONTRACTOR from
the provisions of this Clause.

21.8

To the intent that the works shall or as soon as practicable after the expiration of defect
liability period be handed over to the Owner in perfect condition to the satisfaction of
the Owner any such repair works as stated herein above, shall be carried out by the
CONTRACTOR at his own expense if the necessity thereof shall in the opinion of the
Owner be due to the use of materials or workmanship not in accordance with the
contract or failure on the part of the CONTRACTOR to comply with any obligation
expressed or implied on CONTRACTORS part under contract.

21.9

If the CONTRACTOR fails to commence rectification of such defects within 14 days

from the date of Notice by the Owner or does not complete the said rectification with
diligence and within mutually agreed time period, the Owner shall be entitled to carryout
such work by his own workmen or by other Contractors and if such work is, work which
the Contractors should have carried out at the own cost, the Owner shall be entitled to
recover from the cost there of or may deduct the same from any money due or that
become due to the Contractor, either under this Contract or under any other Contract.

21.10 The Owner may, in lieu of such amending and making good by the Contractor, deduct
from any money due to the Contractor or from his security deposit, a sum to be
determined by the Owner equivalent to the cost of amending such work and in the event
of such security deposit being insufficient, recover the balance from the Contractor
together with any expense the Owner may have incurred in connection therewith.

27

21.11 Upon successful completion of defect liability period, the Owner shall issue final
acceptance certificate to the CONTRACTOR.
22.0
22.1

REPLACEMENT OF DEFECTIVE PARTS AND MATERIALS:

If during the performance of the contract the Purchaser decides and informs in writing
to the Contractor that any equipment, material or any part of equipment manufactured is
unsound and imperfect or has furnished any equipment inferior to the quality specified,
the Contractor on receiving details of such defects of deficiency shall examine and if
found so at his expense within 7 (seven) days of his receiving the notice, or otherwise
within such time as may be reasonably necessary for making it good proceed to alter/ reconstruct or remove such works and supply new equipment or materials up-to the
standards of the specifications.

23.0
23.1

PATENT RIGHTS AND ROYALTIES:

The Contractor shall ensure that all royalties and fees for patent, covering materials,
articles, apparatus, devices, equipment or processes used in the works are included in the
Contract price.
The Contractor alone shall be liable for any damages or claims for patent rights
infringements and shall keep the Purchaser indemnified. The Contractor shall at his cost
defend Suit or Proceedings that may be instituted for alleged infringement of any Patents
involved in the work and in case of any award the Contractor shall bear the same.

23.2

24.0
24.1

OWNER DECISIONS:
The owner shall issue his decisions in writing where his/their decisions are needed. If
the decision so issued in writing by the owner is not in accordance with the agreed terms
and conditions, the Contractor shall, within 15 (Fifteen) days from the date of receipt of
such decisions, send a written objection letter. Then the owner and the Contractor shall
mutually discuss the issue and settle the same within another 30 (Thirty) days.

25.0 DELAYS BY OWNER OR HIS AUTHORISED AGENT

25.1 In case the Contractors performance is delayed due to any act of omission on the part of
the owner or his authorized agents, then the Contractor shall be given due extension of
time for the completion of the Works, to the extent such omission on the part of the
owner has caused delay in the Contractors performance of the Contract. Regarding
reasonableness or otherwise of the extension of time, the decision of the Purchaser shall
be final.
26.0

MISUSE OF THE WORKS

26.1

The CONTRACTOR shall ensure that the works or any portion of the work completed
or partially completed are not misused by him or his sub-contractors or their employees,
workmen, agents, servants etc. leading to deterioration/ temporary deterioration of the
work.

26.2

The CONTRACTOR may however be permitted by the Owner to use the work or a
portion of the work completed or partially completed for such purposes as may be
approved by the Owner.

27.0

NO INTEREST PAYABLE
The CONTRACTOR shall not be entitled to any interest with respect to the E.M.D/bid
guarantee amount, security deposit or any money which may be due to him from the
Owner.

28

28.0
28.1

28.2
29.0
29.1
30.0
30.1

C.
31.0
31.1
31.2
31.3
31.4
a.

b.

c.

d.

32.0
32.1

PROGRESS REPORTS AND PHOTOGRAPHS:

The Contractor shall submit monthly progress reports. He, at his own cost shall take
photographs during various stages of progress of work and submit 3 (Three) copies of the
same to the owner.
The frequency shall be on monthly basis.
TAKING OVER:
The Purchaser shall take over the Site and the Completed Works within seven days from
the date of certificate of completion.
COMPLETION OF CONTRACT:
The Contract shall be deemed to be completed at the end of the agreed warranty/defect
liability period including obligations during this period unless otherwise the contract is
terminated.
TIME LIABILITY
TIME SCHEDULE:
The basic consideration and essence of the Contract shall be strict adherence to Time
Schedule for performing the Scope of Work.
The Successful Bidder shall then prepare a detailed Pert-Net work and/ or other Control
measure charts and finalise the same with the owner.
The overall completion period of the work will be 18 (eighteen ) months from the date
of handing over of site.
Completion certificate:
Within 10 (ten) days of the completion of work, the contractor shall give notice of such
completion to the owner. The owner within 7 days upon receipt of this notice shall
inspect the work and conduct a complete joint survey of the work along with the
contractor. The owner after satisfying himself with tests that may be prescribed in the
contract, if there is no defect, imperfection or shortfall in the work, shall issue a
completion certificate.
At the opinion of the owner, a provisional certificate of completion may be issued
indicating defect (a) to be rectified/reconstructed by the CONTRACTOR and /or (b) for
which payments shall be made at reduced rates subject to the condition that the
CONTRACTOR submits a written undertaking to finish any outstanding works during
the period of defect liability.
At the opinion of the owner, and on written application of CONTRACTOR a certificate
with respect to any part of work may be issued before completion of whole work if the
part of the work has been completed to the satisfaction of the owner and occupied or
used by the owner and when such certificate is issued, such part of work shall be
considered as completed and defect liability period for such part shall commence from
the date of issue of such certificate. Provided also that issue of such certificate shall not
be deemed to certify completion of any ground or surface requiring reinstatement unless
such certificate expressly so state.
No completion certificate shall be issued nor shall the work be considered to be complete
until the CONTRACTOR shall have removed from the site all scaffolding, surplus
materials,rubbish,etc. and all temporary works and cleaned off the dirt from wood
work,doors,windows,walls,floors or other parts of the work.
EFFECTIVENESS OF CONTRACT:
The Contract shall be considered as coming into force and effect from the date of
handing over of the site..

29

33.0
33.1

34.0
34.1

34.2

TIME IS THE ESSENCE OF CONTRACT:

The time and date of completion of contract as stipulated in the Contract shall be the
essence of the Contract. The Contractor shall so organize his resources and perform the
work so as to complete it not later than the date agreed to.
LIQUIDATED DAMAGES FOR DELAY:
If the Contractor fails in the due performance of the Contract within the time agreed as at
Clause 31.3 above the Purchaser shall levy liquidated damages not as a penalty at the rate
of (half) % per week of delay or part thereof on the value of non-utilizable portion of
the works/supplies subject to a ceiling of 7.5 % (Seven point five percent) of the Total
contract price.
If the party to the cause of delay could not be clearly established, the Purchaser shall issue
a letter granting Time Extension, however retaining the right to analyse the cause of
delay and levy Liquidated Damages at the time of Final bill/Closure of contract.

34.3

The Owner may without prejudice to any other method of recovery, deduct the amount of
liquidated damages from any money in his hands due or becomes due to the
CONTRACTOR either under this Contract or under any other contract.

34.4

The payment or deduction of such liquidated damages shall not relieve the
CONTRACTOR from his obligation to complete the works or from any other of his
obligations and liabilities under the contract.

34.5

The Owner, however, reserves the right to levy Liquidated Damages, even if extension of
time for completion of works is granted.

34.6

If the reason for the delay is solely attributable to Purchaser, adequate time extension will
be given to the Contractor to the extent of delay attributable to the Purchaser.

34.7

If the reason for the delay is purely attributable to the Contactor, LD will be levied and
extension of time may be granted.

34.8

If the decision regarding the reasons for the delay is required to be analysed and the same
can only be determined after completion of the work or if the issue is likely to enter into
dispute or required in depth study to fix the responsibility for the delay, then extension of
time will be given to the contractor subject to reserving the right to levy LD, if
considered necessary.
(i) Once the execution of contract goes beyond the date(s) fixed in the contract for the
purpose of reckoning the Liquated Damages (LD), withholding of amount on the
running bills towards LD shall be made in a progressive manner over the period of
the contract, including extended period, subject to the condition that the maximum
LD recoverable as per the contract is withheld before 90% of the payment is
completed as per the contract.
(ii) The quantum of LD amount that could be withheld from the running bills as stated
above shall be lower of the following:
(a) Amount proportionate to the maximum amount that could be levied as LD, as per
the contract, vis-a-viz the balance amount for the balance work payable works as on
the original scheduled date of completion of contract, excluding retention money i.e.
the final stage amount prescribed in the contract.
(b) Amount calculated as per the contract for such number of week(s) of actual delay as
on the date of release of payment.

34.9

In case the above arrangement causes difficulty to the contractor in cash flow and
progress of work, an amount upto 90% of the withheld amount can be released to the
contractor against suitable Bank Guarantee for 100% of the withheld amount if requested

30

by the contractor. In such cases, as soon as the work is completed, the LD issue should
be settled preferably within 6 months from completion of work
34.10 However, 90% of the withheld/ leviable Liquidated Damage amount may be considered
by the purchaser for release against submission and acceptance of LD BG as per the
format enclosed for 100% of the leviable LD Amount.
35.0
35.1
35.2

GRANT OF EXTENSION OF TIME:

Time extension may be granted only on bonafide request and not in a routine manner.
If the owner has caused delays in meeting his obligations, the extension of time shall be
granted to the extent of time suffered and secure the contract and its performance by
shifting the right to levy Liquidated Damages for the delays beyond the extended date.

35.3 The CONTRACTOR shall not be allowed any extension of time of completion except in
the following cases:
(i)

Force majeure As per details stated in the Contract.

(ii)

Major changes or substantial addition to work ordered by the Owner adversely

affecting the completion time.

(iii)

Any other circumstance of any kind whatsoever which may occur making the
CONTRACTOR entitled to an extension of time which, however, shall be in the
absolute discretion of the Owner.

35.4

The CONTRACTOR, upon the happening of any such event as stated above shall
immediately give notice but nevertheless use constantly his best endeavour to prevent or
make good the delay and shall do all that may be reasonably required to the satisfaction
of the Owner to proceed with the work.

35.5

Request for extension of time shall be submitted by the CONTRACTOR in writing and
the Owner, based on the merit, shall consider the request and convey his decision to the
CONTRACTOR in writing within a reasonable time. Such extension shall not release the
contractor of any of his obligations including L.D. The contractor shall submit request
for extension at the time of such special circumstances occurring and not towards the end
of the contract period.

35.6

The CONTRACTOR shall not be eligible for any extension of time on account of
delay in procurement of materials.

any

D.
PAYMENT.
36.0 PAYMENT:
36.1 The owner shall make payment to the Contractor towards the performance of the work as
per stipulations hereunder. All payments to the Contractor shall be made in Indian
Rupees by e-payment and all the bank charges shall be borne by Contractor. The final
payment shall be made on completion of all the works as agreed and on fulfillment of all
his obligations under the Contract by the Contractor.

36.2

Terms of payment for Advance payment

i) All payments except advance will be released only after contract signing.
ii) The money advanced to the contractor shall be adjusted on pro-rata basis while
making 80% stage payment. If the Contractor fails to adhere to the delivery schedule in
the overall Time schedule of the contract, then interest at the prevailing rate as applicable
for Cash credit facilities will be levied by the purchaser for the unadjusted Advance in
the respective scope of work.
iii) Advance shall be paid as per Terms of payment within 1 month from the date of
31

handing over of site after fulfilling the following conditions.

a) Acceptance of LOA
b) Submission of Advance payment Guarantee for an amount equal to 110% of the
advance amount and acceptance thereof.
c) Submission of Contract Performance Guarantee for an amount equal to 10% of the
contract price and acceptance thereof.
37.0
37.1

DUE DATE OF PAYMENT:

The Purchaser shall make progressive payments as per Payment terms hereunder within
30 (Thirty) days of receipt of bills/ Invoices/ Debit Note complete in all respects.

37.2

BILLING PAYMENT SCHEDULE:

The contractor will submit all bills of the work in approved proforma, in sextuplicate, to
the Engineer giving abstract and detailed measurements for the various items executed
during a month as per the agreed billing schedule. All progressive payments due and
payable by the Owner shall generally be made within a reasonable period of time which
will not exceed one month from the date of receipt of proper and presentable bills
supported by requisite measurement details and documents certified by Owner. If it is not
payable, the bills will be returned to the contractor stating the reason for objection within
a month from the date of receipt by the Owner.

38.0
38.1

TERMS OF PAYMENT:
Nature of
payment
a) Initial
advance
1st stage
2nd stage

b) Stage
progressive

% of total
price
5%

5%

80 %

Conditions to be adhered to
On establishment of site office and on fulfilling
the conditions laid down at 36.2 (iii) above.

After the Contractor moves the required

construction plant & machinery and commences
and site activities.
Submission of advance
payment Bank Guarantee for 110% of the advance
amount & acceptance by the purchaser.
Payment shall be made on monthly basis for the
completed works on acceptance of measurements
submitted by the contractor. This payment can be
effected after the approval by the purchaser on the
Insurance policies submitted by the Contractor.
OR
If the Contractor is not availing advance as per
Cl.38.1 (a), then 90% of the contract price shall be
paid on monthly basis for the completed works on
the acceptance of measurements submitted by the
contractor. This payment can be effected after
approval by the purchaser on the insurance
policies submitted by the contractor.

32

Final Payment
(Retention)

10 %

Upon completion and acceptance of the work by

the owner.

39.0 ADVANCE PAYMENT GUARANTEE:

39.1 The advance stipulated in the payment terms shall be made to the contractor by the owner
subject to the contractor providing bank guarantee(s) as per format enclosed for 110% of
the advance amount as per the stipulations and on acceptance of the said bank guarantee.
This bank guarantee shall be valid till the completion of supplies / erection /scope of
work with a grace period of 2 (two) months.
39.2

Furnishing of bank guarantee towards advance payment in respect of public sector

enterprise will be governed by the guidelines issued by Bureau of Public Enterprises
from time to time.

39.3

The advance payment guarantee shall be released on application by the contractor within
90 days after the advance amount paid has been fully adjusted.

40.0

FINAL BILL

40.1

The final bill shall be submitted by the CONTRACTOR within 2 (two) months from the
date of completion of works accompanied by:
i. Completion certificate issued by Owner.
ii. No claim certificate by CONTRACTOR.
iii. Consumption statement of steel and cement and structural steel certified by the
Owner.
iv. Original guarantees submitted by CONTRACTORs suppliers for applicable items.
v. Performance guarantee for specialized works by the CONTRACTOR.
vi. Copies of deviation statement and order of extension of time, if granted.
vii. Test certificates for items and materials.
viii. Completion

drawings in respect of

services wherever required.

ix. One copy of As built drawing of each of the construction drawing showing there on
all additions and alterations (to be shown in red) made during the execution of the
work.
x. Recovery statement, if any.
xi. Statement for reconciliation of all the payments and recoveries made in progressive
bill.
xii. Soft copy of all As built drawings One set.

33

If the Contractor fails to fulfill /comply with any one or all of the above
requirements, he is not entitled to receive the final bill payment and the Owner is
entitled to withhold the payment pending fulfillment/ compliance of the formalities
mentioned supra
40.2 BILL OF QUANTITIES UNIT RATES:
40.2.1 The Bill of Quantities shall contain items description for the construction, supply and
work to be done by the Contractor.
40.2.2 The Contractor shall be paid for the quantity of the work done at the rate agreed for each
item in the Bill of Quantities.
41.0
41.1

EXPENDITURE UNDER THE CONTRACT:

The Contractor shall incur expenditure out of the payments received, for the purpose of
this contract only.

42.0
42.1

LIMITATION OF LIABILITIES:
Except in case of criminal negligence or willful misconduct, the contract shall not be
liable to the purchaser, whether in contract, tort or otherwise, for any indirect or
consequential loss or damage, loss of use, loss of production or loss of profits or interest
costs, provided that this exclusion shall not apply to any obligation of the contractor to
pay liquidated damages to the purchaser and the aggregate liability of the contractor to
the purchaser, whether under the contract, in tort or otherwise, shall not exceed the total
contract price, provided that this limitation shall not apply to any obligation of the
contractor to indemnify the purchaser with respect to patent infringement.

43.0
43.1

RIGHT OF OWNER AND LIABILITY OF THE CONTRACTOR:

The owner shall have full rights against the Contractor even though on account payment
has been made and / or time extension period granted and the Contractor shall not be
relieved of his obligations towards the due performance of the contract.

44.0
44.1

RECONCILIATION OF PAYMENT AND ACCOUNTS:

The Contractor shall prepare and submit every six months, a statement covering payments
claimed and the payments received vis--vis the works executed, for reconciliation of
accounts with the Purchaser.

45.0 E. TRANSFER OF TITLE:

45.1.1 Transfer of title in respect of equipment and materials supplied by the contractor to the
purchaser pursuant to the terms of the Contract shall pass on to Purchaser at Exworks/FOB.
45.1.2 The transfer of title shall not construed to mean the acceptance and the consequent
Taking over of equipment and materials. The contractor shall continue to be
responsible for the quality and performance of such equipment and materials and for
their compliance with the specification until Take over and the fulfillment of guarantee
provisions of this contract.
45.1.3 This transfer of title shall not relieve the contractor from the responsibility for all risks of
loss of damage to the equipment and materials as specified under the clause titled
Insurance.
46.0

INSURANCE:

34

46.1.1 The Contractor shall take Workmen Compensation Insurance Policy to cover all
Contractors and Sub-Contractors workmen involved in the execution of the work. A
copy of Workmen Compensation Insurance Policy shall be submitted.
46.1.2 The Contractor shall produce a copy of Group Personal Accident Insurance Policy in
respect of Contractors Engineering and other supervisory staff who are not covered
under the Workmen Compensation Insurance.
46.1.3 The Automobiles/ Motorised vehicles used by the Contractor/ his sub-Contractor(s)
connected with this work shall have to be insured as per the Motor Vehicles Act. Copy
of the Automobiles Insurance Policy shall be submitted.
46.1.4 The Contractor shall take necessary Contractors All Risk(CAR) Insurance Policy for an
adequate sum insured value to cover the risk due to damage, loss and accident etc. to his
works, plant & machinery, any loss or damage to the owners surrounding properties and
shall also cover third party liabilities.
46.1.5 The Contractor shall also carry and maintain any and all insurance, which may be
required under any law or regulations from time to time. The Contractor shall also meet
other statutory provision required as per the Contract.
46.1.6 The above insurance policies shall be kept valid during the tenure of the Contract and the
Contractor shall pay necessary premium as required under the terms of the policy.
46.1.7 The Contractor shall produce the copies of various Insurance Policies cited above before
starting of the work at site, for approval failing which the Contractor will not be allowed
to work further and no payment shall be made.
46.1.8 Notwithstanding all these Insurance Policies, the Contractor shall be solely liable and
responsible for any or all damages/losses arising during the execution of the Contract and
the Owner shall not be held responsible on any account whatsoever.
46.1.9 While carrying out the civil work, if blasting is required at site, appropriate Insurance
Policy shall be taken by the Contractor to cover damage, loss, injury, accidents to lives
and properties of employees of the Contractor/ Purchaser/ Third Parties in the vicinity.
46.1.10 Notwithstanding the above, the Contractor shall take Insurance policy for the full value
of the contract as per the contract conditions for the entire period of the contract and shall
also meet the other statutory provisions required as per the contract. Non-compliance to
the above or in the event of under-insurance leading to claim/compensation, recovery of
the claim/ compensation will be made from the bills of the Contractor.
46.1.11 The contractor shall take insurance policy from a insurance company regulated by
IRDA.
47.0 LIABILITY FOR ACCIDENTS AND DAMAGES:
47.1 The Contractor shall be responsible for loss or damage to the Plant, Equipment System
until successful completion of commissioning and taking over by the Purchaser.
48.0

FORCE MAJEURE:

35

48.1

Force majeure herein defined is a cause which is beyond the control of the Contractor or
the Purchaser, which they could not foresee and which substantially affect the
performance of the contract such as
48.1.1 Natural phenomena, including but not limited to floods, droughts, Earthquakes and
epidemics
48.1.2 Acts of any government, domestic or foreign, including but not limited to war, declared
or undeclared priorities, quarantines, embargoes,
48.1.3 Strikes, lock outs and sabotage
48.1.4 Riots, piracy civil commotions provided either party shall within fifteen (15) days from
the occurrence of such a cause notify the other in writing of such cause.
48.1.5 However Power cut and failure in water supply shall not be considered under Force
Majeure condition.
48.2 The Contractor or the owner shall not be liable for delays in performing the respective
obligations resulting from any force majeure condition occurred. The date of completion
shall be extended by a reasonable time
48.3 If the performance as a whole or part by the Contractor or any obligations under the
Contract is prevented or delayed by Force majeure condition for a period exceeding
120 days, the Purchaser may at his option terminate the contract by notice in writing.
48.4 No increase or decrease in price shall be payable due to Force Majeure condition.
49.0 SUSPENSION OF WORK:
49.1 The owner reserves the right to suspend and reinstate execution of the whole or any part of
the Works without invalidating the provisions of the Contract. Orders for suspension or
reinstatement of the Works shall be issued by the Purchaser to the Contractor in writing.
The time for completion of the Works will be extended for a period equal to duration of
the suspension
49.2

Any necessary and demonstrable cost incurred by the Contractor as a result of such
suspension of the works will be paid by the owner, provided such costs are substantiated
to the satisfaction of the owner. The owner shall not be responsible for any liabilities if
suspension or delay is due to some default on the part of the Contractor or his Subcontractor.

F.
50.0
50.1

LEGAL - DISPUTE SOLVING:

ENFORCEMENT OF TERMS:
The failure of either party to enforce at any time any of the provisions of this contract or
any rights in respect thereto or to exercise any option therein provided, shall in no way
be construed to be a waiver of such provisions, rights or options or in any way to affect
the validity of the Contract. The exercise by either party of its rights hereto shall not
preclude or prejudice either party from exercising the same or any other right it may have
under the Contract.

51.0
51.1

NO WAIVER OF RIGHTS:
Neither the inspection by the Purchaser or any of his officials, employees or agents nor
any order by the Purchaser for payment of money or any payment for or acceptance of,
the whole or any part of the Works by the Purchaser nor any extension of time, nor any
possession taken by the Purchaser, shall operate as a waiver of any provision of the
Contract, or of any power herein reserved to the owner or any right to damages herein

36

provided nor shall any waiver of any breach in the Contract be held to be a waiver of any
other or subsequent breach.
52.0
52.1

53.0
53.1

53.2

54.0

DEFENCE OF SUITS:
If any action in a court or in any Tribunal is brought against the owner or an officer or
agent of the owner for failure, omission or neglect on the part of the Contractor to
perform any acts, matters, covenants or things under the Contract, or for damage or
injury caused by the alleged omission of negligence on the part of the Contractor, his
agents, representatives, or his sub-contractors or in connection with any claim based on
lawful demands of sub-contractors, workmen, suppliers or employees, the Contractor
shall in all such cases indemnify and keep the owner and or his representative, harmless
from all losses, damages, expenses or decrees arising of such action.
GRAFTS AND COMMISSION:
Any graft, commission, gift or advantage given, promised or offered by or on behalf of
the Contractor or his partner(s), agent(s), officer(s), director(s), employee(s) or servant(s)
or any one of his or their behalf in relation to the obtaining or to the execution of this or
any other Contract with the owner, shall in addition to any criminal liability which it may
incur, subject the Contractor to the cancellation of this and all other Contracts and also to
payment of any loss or damage to the owner resulting from any cancellation.
The owner shall then be entitled to deduct the amount so payable from any monies
otherwise due to the Contractor under the Contract.
MATERIALS NOT INCORPORATED IN WORKS

54.1

Wherein any certificate, of which the CONTRACTOR has received payment, the Owner
has included the value of any unfixed material intended for incorporation in the works,
such materials shall become the property of the Owner and they shall not be removed
except for the use upon the works without the written authority of Owner custody of the
same and be liable for any loss or damage to such materials till the completion of defect
liability period.

55.0
55.1

SETTLEMENT OF DISPUTES:
Any dispute/disputes or difference/differences arising out of or in connection with the
Contract shall, to the extent possible be settled amicably between the parties.
If an amicable settlement could not be reached then all the disputes/differences shall be
settled through arbitration.

55.2

56.0 RESOLUTION OF DISPUTES AND ARBITRATION:

56.1 INFORMAL DISPUTE RESOLUTION:
56.1.1 The parties agree to use reasonable efforts to resolve all disputes equitably and in good
faith. If any dispute between the Contractor and the Owner arises it shall in the first
instance be referred in writing to the Owner, who shall endeavour to resolve the dispute
amicably and render a decision within 30 days. The period of 30 days shall be reckoned
from the date of receipt of intimation of the dispute by the Owner.
56.1.2 Save as hereinafter provided, in respect of a dispute so referred, the decision of the
Owner shall be final and binding upon the Parties until the completion of the Contract
and shall forthwith be given effect to by the Contractor who shall proceed with the
Contract with all due diligence, whether or not either Party has sought arbitration of the
dispute as hereinafter provided.

37

56.1.3 The parties agree to use reasonable efforts to resolve all disputes equitably and in good
faith.
56.2 Conciliation
56.2.1 If the party is dissatisfied with the decision rendered by the Purchaser, or if the purchaser
omits or declines to render a decision within the said period of 30 days, then within a
further period of 30 days, the dissatisfied party shall require by a notification that the
dispute be referred to conciliation in the manner as per the NLC conciliation Rules,
copy of which is available with the NLC offices and the Bidders/contractors shall abide
by the NLC conciliation Rules for resolving any dispute arising out of this contract.
Such a notification shall be in writing and it shall be duly served on the other party.
Failure to invoke the conciliation within the time stipulated shall debar the party from
seeking reference to conciliation.
56.2.2 Except as otherwise provided in this clause, any dispute arising out of or relating to this
agreement, or the breach, termination or validity thereof, shall be settled by conciliation
in accordance with NLC conciliation Rules. The conciliation shall be held at Neyveli /
Chennai. The conciliation proceedings shall be conducted, and the award shall be
rendered in English. The award shall state the reasons upon which it is based.
56.2.3 There shall be three conciliators, who will be appointed as per section 5 of the NLC
conciliation Rules.
56.2.4 The contract agreement / purchase order conditions and the rights and obligations of the
parties, shall remain in full force and effect during the conciliation proceedings.Supplies
and / or services under the contract shall, if reasonably possible. Continue during the
conciliation proceeding.
56.2.5 For the purpose of this clause, the term dispute shall include a demand or difference of
any kind whatsoever, arising out of the contract and respecting the performance of the
contract, whether during the contract period including extensions if any, or after
completion, and whether before or after termination, abandonment or breach of the
contract. (except as to any matter, the decision of which is specifically otherwise
provided for in any of these conditions).
56.2.6 Only in case of failure to resolve the dispute through conciliation, Arbitration can be
resorted to or judicial remedy can be sought for.
56.2.7 Once the settlement agreement is signed with respect to a dispute, the same dispute is not
subject to further appeal through Arbitration or judicial proceedings.
56.2.8 Anything not found included in the NLC conciliation Rules, but necessary to conduct
the conciliation proceedings will be dealt with as per the provisions of the Arbitration
and conciliation Act 1996 Part- III or as per the statutory provisions modified from time
to time.
56.3 Arbitration of Disputes:
Arbitration between Purchaser and any other Public Sector Enterprise:
In the event of any dispute or difference relating to the interpretation and application of
the provisions of the contracts, such dispute or difference shall be referred by either party
for Arbitration to the sole Arbitrator in the Department of Public Enterprises to be
nominated by the Secretary to the Government of India in-charge of the Department of
Public Enterprises. The Arbitration and Conciliation Act, 1996 shall not be applicable to
arbitration under this clause. The award of the Arbitrator shall be binding upon the
parties to the dispute, provided, however, any party aggrieved by such award may make
a further reference for setting aside or revision of the award to the Law Secretary,
Department of Legal Affairs, Ministry of Law & Justice, Government of India. Upon
such reference the dispute shall be decided by the Law Secretary or the Special Secretary
/Additional Secretary, when so authorized by the Law Secretary, whose decision shall
38

56.4

bind the Parties finally and conclusively. The Parties to the dispute will share equally the
cost of arbitration as intimated by the Arbitrator
The procedure to be adopted in the above case shall be as per DPE guidelines OM No.
DPE/4(1)2011-DPE (PMA)-GL dated 12.06.2013
For Other Contractors:
a) If either party is dissatisfied with the decision rendered by the Owner, or if the
Owner omits or declines to render a decision within the said period of 30 days,
then within a further period of 30 days, the dissatisfied Party may require by a
notification that the dispute be referred to arbitration in the manner hereinafter
provided. Such a notification shall be in writing and it shall be duly served on
the other party. Failure to invoke the arbitration within the time schedule shall
be debar the party from seeking reference to arbitration.
b) Except as otherwise provided in this clause, any dispute arising out of or
relating to this agreement, or the breach, termination or validity thereof,
shall be finally settled by arbitration in accordance with the Arbitration and
conciliation Act 1996 (the ``Act). The arbitration shall be held at Chennai.
The arbitration proceedings shall be conducted, and the award shall be rendered in
English. The award shall state the reasons upon which it is based. Interest if
awarded by the arbitrators, shall be at a rate not exceeding the cash credit rate
prevailing on the date of award. All interest payments so awarded are subject to
deduction of TDS at sources as applicable at prevailing rates of income tax.
c) There shall be three arbitrators of whom each Party shall appoint one. The Party
requesting that the dispute be referred to arbitration shall, within 30days of the
notification appoint an arbitrator and also call upon the other Party to appoint an
arbitrator within 30 days. The two arbitrators so appointed shall, within 30 days
of the date on which the second of them is appointed, agree on the third arbitrator
who shall act as the presiding arbitrator of the tribunal.
d) The agreement and the rights and obligations of the Parties, shall remain in full
force and effect pending the award in any arbitration proceedings. Supplies and /
or services under the Contract shall, if reasonably possible, continue during the
arbitration proceedings.
e) For the purpose of this clause, the term dispute shall include a demand or
difference of any kind whatsoever, arising out of the Contract and respecting the
performance of the Contract, whether during the Contract period including
extensions if any, or after completion, and whether before or after termination,
abandonment or breach of the Contract. (except as to any matter, the decision of
which is specifically otherwise provided for in any of these conditions).
f) The Arbitrators shall publish a speaking award which shall be binding on both
the parties. The party in whose favour the award is passed shall be entitled to
recover the entire cost of arbitration from the other party. The Arbitrators shall
indicate the above in their award clearly.

57.0
57.1

TERMINATION OF CONTRACT:
The Purchaser reserves the right to terminate the Contract either in part or in full due to
reasons such as the Contractor failed to commence work, abandoned the work during the

39

progress, neglected to proceed and progress, failed to perform his obligations and other
than those mentioned under clause entitled Contractors Default. The Purchaser shall
in such an event give fifteen (15) days notice in writing to the Contractor of his decision
to do so.
57.2 The Contractor upon receipt of such notice shall discontinue the work on the date and to
the extent specified in the notice, make all reasonable efforts to obtain cancellation of all
orders and contracts to the extent they are related to the work terminated and terms
satisfactory to the Purchaser, stop all further sub contracting or purchasing activity
related to the work terminated, and assist the Purchaser in maintenance, protection, and
disposition of the works acquired under the Contract by the Purchaser. In the event of
such a termination the Contractor shall be paid the cost incurred in accordance with the
Contract terms and rates till the date of termination as compensation.
57.3 If the Contractor is an individual or a proprietary concern and the Individual or the
proprietor dies and if the Contractor is a partnership concern and one of the partners dies
then unless the Purchaser is satisfied that the legal representatives of the Individual
Contractor or of the proprietor of the proprietary concern and in the case of partnership
the surviving partners, are capable of carrying out and completing the contract, the
Purchaser shall be entitled to cancel the contract as to its implemented part without being
in any way liable to payment of any compensation to the estate of the diseased contractor
and or to the surviving partners of the Contractors firm on account of the cancellation of
the contract. The decision of the Purchaser `that the legal representatives of the deceased
Contractor or the surviving partners of the Contractors firm cannot carry out and
complete the contract shall be final and binding on the parties. In the event of such
cancellation, the Purchaser shall not hold the estate of the deceased Contractor and / or
the surviving partners of the estate of the deceased Contractor and/ or the surviving
partners of the Contractors firm liable to damages for not completing the contract.
57.4 If the Contract is terminated due to the default of the Contractor, the Mobilization
Advance paid would be deemed as interest bearing advance at the prevailing rate
applicable to cash credit facility at the time of issue of NIT to be compounded quarterly
58.0
58.1

JURISDICTION OF CONTRACT:
The laws applicable to the Performance of the Contract shall be the laws in force in
India. The Civil Courts having ordinary jurisdiction over Tuticorin shall have the
jurisdiction over all matters of contract.

59.0
59.1

IDENTIFICATION OF DEFECTS:
The Purchaser or his nominee shall check the work carried out by the Contractor and
notify the contractor Defects if any noticed. Such checking shall not affect the
Contractors responsibilities. The Contractor shall then search for a Defect and to
uncover and test any work that may be considered necessary. There upon shall rectify
the defect at his own cost.
TESTS:
If the Purchaser or his nominee instructs the Contractor to carry out a test not specified in
the Specification to check whether any work has a Defect and the test shows that there is
defect then the Contractor shall pay charges for the test and any samples.
CORRECTION OF DEFECTS:
The Purchaser or his nominee may give notice to the Contactor of any defects noticed
before the end of Defect Liability Period. The Defect Liability Period shall be extended
for as long as Defects remain to be corrected.
The Contractor shall correct the notified Defect within the length of time specified.

60.0
60.1

61.0
61.1

61.2

40

62.0
62.1
63.0
63.1
63.2

63.3

63.4
63.5
63.6

UNCORRECTED DEFECTS:
If the Contractor has not corrected a Defect within the time specified the Contractor
shall pay the cost of correcting the defect.
MEASUREMENT OF WORK:
Unless otherwise specified measurement of work shall be carried out from the drawings
issued by the Owner.
Measurement at site shall be taken only in the case of site deviations for which no
revised drawings have been issued to the Contractor or in the cases where measurement
from the drawing is not possible.
In both cases of measurement of work as stated above, the Contractor shall certify that
the work has been carried out strictly as per the drawings, specifications and item of
work and is in terms of the Contract Agreement. Such certificate shall require Owners
endorsement for the purpose of payment.
All measurements shall be carried out as per IS-1200 unless otherwise specified.
In the event of any dispute with regard to the measurement of the work executed, the
decision of the Owner shall be final and binding on the Contractor.
In case of site measurement as stated above, should the contractor not attend or neglect
or omit to send representative for taking joint measurement, then the measurement taken
by the owner shall be deemed to be correct measurement of the work and shall be
binding on the contractor.

64.0
64.1

VARIATION IN THE QUANTITIES:

If the final value of the work done exceeds 20 percent of initial Contract price, NLC
Tamil Nadu Power Limited (NTPL) shall adjust the rate, to allow for the change.
64.2 If requested by the Purchaser or his nominee where the quoted rate(s) for any item(s) is
abnormally high, the Contractor shall provide the Purchaser or his nominee with a
detailed cost breakdown of such rate in the Bill of Quantities.
65.0 RATE FOR VARIATIONS:
65.1 All Variations shall be included in updated Programme.
65.2 Each item of work can vary to any extent and the entire contract value can vary upto
+20 % of the total contract price. Within 14 days of the date of instruction for executing
varied work, extra work or substitution, and before the commencement of such work,
notice shall be given either by the Contractor to the Owner of his intention to claim extra
payment or a varied rate or price, or by the Owner to the contractor of his intention to
vary rate or price.
65.3 For items not available in the Bill of Quantities or substitution to items in the Bill of
Quantities, the rate payable shall be determined in the order herein under:
65.3.1 Rates and prices in Contract, if applicable plus escalation as per contract
65.3.2 Rates and prices in the Schedule of rates applicable to the Contract plus ruling percentage
65.3.3 Market rates of materials and labour, hire charges of plant and machinery used plus 10 %
for overheads and profits of Contractor.
65.4 For items available in the Bill of Quantities but where quantities have increased beyond
the variation limits, the rate payable should be determined in the order herein under.
65.4.1 The rates and prices in contract, with reasonable plus escalation, failing which Clause
65.4.2 or 65.4.3 below will apply.
65.4.2 The rates and prices in the schedule of rates applicable to the contract plus ruling
percentage.
65.4.3 The Market rates of material and labour, hire charges of plant and machinery used plus
10 % for overheads and profits of contractor.
65.5 If there is any delay in reaching to an agreement on the rate, rates as proposed by the

41

65.6

Owner shall be payable provisionally till such time as the rates are finally determined.
If the Purchaser or his nominee decides that the urgency of varying the work prevent a
quotation being obtained and considers that the work shall not be delayed, no quotation
shall be obtained.

66.0

PROTECTIVE COATINGS

66.1

Protective coatings shall be applied wherever necessary for works/structures even

though not specifically implied.

67.0

WEIGHTS & MEASURES

67.1

All weights, dimensions and measures shall be in metric system.

67.2

69.2

The CONTRACTOR shall use Indian standards and codes. In case any other standards
are used by the CONTRACTOR Indian equivalent shall be indicated.
COST OF REPAIRS:
Loss or damage to the Works or Materials secured in the Works between the Start Date
and the end of the Defects liability period shall be remedied by the Contractor at his own
cost if the loss or damage arises from the Contractors acts or omissions.
COMPLETION:
Within 10 days after completion of the work, the Contractor will serve a written notice to
the Purchaser or his nominee to this effect. The Purchaser or his nominee within 7 days
upon receipt of this notice shall inspect the work and conduct a complete joint survey of
the work along with the contractor and prepare, if any, defects list jointly. The defects
pointed out shall be rectified by the contractor within 14 days and thereafter the owner
shall issue a Completion certificate
The defect liability period shall be reckoned from the date of this Completion Certificate.

70.0

NOTICES

70.1

All notices under this Contract shall be given in writing and shall be deemed sufficiently
given when delivered either in person, by telegram, fax or by registered mail addressed
to the other party at its address set forth below:

68.0
68.1

69.0
69.1

If to the Owner: CEO/NTPL, Tuticorin with copy to

If to the CONTRACTOR: With copy to
70.2

If any such notice is delivered by hand, it shall be duly acknowledged and if given by
telegram, telex or fax or verbally, it shall be confirmed by letter within seven days of the
date of such notice. Either party shall by notice in writing inform the other party of any
change of its address as stated above for receiving such notices

70.3

The date of communication and notices mentioned above shall be the date of receipt of
such original communications and notices by the receiving party.

71.0 FINAL ACCOUNT:

71.1 The Contractor shall furnish to the Purchaser or his nominee a detailed account of the total
amount that the Contractor considers payable under the Contract after the issue of
completion certificate. The Purchaser or his nominee shall check the account and if
found correct shall certify final payment that is due to the Contractor within 60 days. If
it is not, shall issue within 15 (Fifteen) days a statement of corrections in accounts and
certify 50 % of the undisputed amount to the contractor for payment. The balance shall
be paid within 30 days after the accounts are reconciled and settled.
72.0 AS BUILT DRAWINGS:
72.1 The contractor shall provide As Built Drawings one reproducible and 15 (fifteen) copies

42

72.2

and also a special Technical write up on the construction features to the CEO/NTPL,
Tuticorin
Submission of the above documents shall be a precondition towards final payment.

73.0

LIQUIDATION, DEATH, BANKRUPTCY ETC.-

73.1

If the CONTRACTOR shall die, dissolve or become bankrupt or insolvent or cause or

suffer any receiver to be appointed of his business or any assets thereof compound with
his Creditors, or being a corporation commence to be wound up, not being a members
voluntary winding up for the purpose of amalgamation or reconstruction, or carry on its
business under a Receiver for the benefits of its Creditors any of them, the Owner shall
be at liberty:a) to terminate the Contract forthwith upon coming to know of the happening of any
such event as aforesaid by notice in writing to the CONTRACTOR or to the
Receiver or liquidator or to any person on whom the Contract may become vested
to or
b) to give such Receiver, Liquidator or other person the option of carrying out the
Contract subject to his providing a guarantee upto an amount to be agreed upon
by Owner for due and faithful performance of the CONTRACTOR obligation
under the contracts.

74.0

RESPONSIBILITY FOR PERFORMANCE OF CONTRACT

74.1

The CONTRACTOR shall be responsible for the due and faithful performance of the
Contract in all respects according to the intent and meaning of the drawings,
specifications and all other documents referred to in this Contract. Any approval which
the Owner may have given in respect of the stores, materials, supplies or other particulars
and the work or the workmanship involved in the Contract (whether with or without test
carried out by the CONTRACTOR or the Owner) shall not bind the Owner and
notwithstanding any approval or acceptance given by the Owner, it shall be lawful for the
Owner to reject the material on arrival at site, if it is found that the materials supplied
and/or at site, erection and/or construction work carried out by the CONTRACTOR are
not inconformity with the terms and conditions of the Contract in all respects.

75.0

COMPLETENESS OF WORK

75.1

Any work or item of work not envisaged earlier but are necessary to execute the contract
work in completeness shall be carried out by the CONTRACTOR under instruction of
the Owner. The rates for such work shall be determined as per norms of finalizing extra
items.

76.0.

TYPE, QUALITY OF MATERIALS AND WORKMANSHIP

76.1

The CONTRACTOR shall be deemed to have carefully examined and to have read and
understood the general and other conditions, specifications, schedules, drawings, etc.
forming part of the Contract and also to be have satisfied himself as to the nature and
character of the work to be executed and the type of the equipment and duties required
including wherever necessary of the site conditions and relevant matters and details.
Any information thus had or otherwise obtained from Owner shall not in any way relieve
the CONTRACTOR from his responsibility and contractual obligations for executing the
work in terms of the contract. If the contractor shall have any doubt as to the meaning of
the portion of the contract, he shall before signing it set for particulars thereof and submit
to the Owner in writing in order that such doubt may be removed.

43

76.2

All materials and workmanship shall be of the respective kinds as described in the
contract and in accordance with the Owners instructions and shall be subjected from
time to time to such tests as the Owner may direct at the place of manufacture or
fabrication or on the site or at all or any of such places. The Contractor shall furnish to
the Owner vouchers for any materials on demand within 10 days to prove that the
materials are as specified.

76.3

CONTRACTOR shall supply samples of materials, before incorporation in the works for
testing as may be selected and required by the Owner.

76.4.

The CONTRACTOR shall procure and / or fabricate / or construct all materials in

accordance with all requirements of Central and State enactments, rules and regulations
governing such work in India and at site. This shall not be construed as relieving the
CONTRACTOR from complying with any requirement of Owner as enumerated in the
Contract Specifications which may be more rigid than and not contrary to the above
mentioned rules, nor providing such construction as may be required by the above
mentioned rules and regulations. In case of variance of the Contract Specification from
the laws, ordinance, rules and regulations governing the work, the Contractor shall
immediately notify the same to the Owner. It is the sole responsibility of the Contractor,
however, to determine that such variance exists. Wherever required by rules and
regulations, the CONTRACTOR shall also obtain statutory Authorities approval for the
plant, machinery and equipment to be supplied by the CONTRACTOR.

76.5

In addition to specification described in various Tender documents, all materials,

workmanship, inspections, sampling and testing and interpretation of test results and
their application shall be in accordance with the latest editions of Indian Standards
specifications and / or codes of practice. Codes and standards of other countries can be
followed with the prior written approval of Owner, provided materials, supplies &
equipment according to the standard are equal to or better than the corresponding
standards specified in the Contract.

76.6.

Brand names mentioned in the Contract documents are for the purpose of establishing
the type and quality of products to be used. The CONTRACTOR shall not change the
brand name of the bought out items without the prior written approval of the Owner. All
such products and equipment shall be used or installed in strict accordance with original
manufacturers recommendations, unless otherwise directed by the Owner.

77.0

DRAWING & DOCUMENTS

77.1

The drawings shall remain in the sole custody of the owner but three copies there of shall
be furnished to the CONTRACTOR free of cost. The contractor shall provide and make
at his own expense any further copies required by him.

77.2

The contractor shall execute the works as per the drawings furnished by NLC All
drawings specifications, sketches, schedule of items etc. furnished/approved by the
Owner shall be treated as strictly confidential property of the Owner.

77.3

One copy of the drawings, specifications and schedule of items furnished to the
CONTRACTOR as aforesaid shall be kept by the CONTRACTOR on the site and the
same shall be available for inspection and use by the Owner and any other person
authorized by the Owner in writing.

44

77.4

The Owner shall have full powers and authority to supply to the CONTRCTOR from
time to time during the program of the works such further drawings and instruction as
shall be necessary for the purpose of the proper and adequate execution and maintenance
of the works and the CONTRACTOR shall carry out and be bound by the same.

77.5

CONTRACTOR shall furnish to the Owner all catalogues, literatures, manuals etc. in
respect of bought out items incorporated in the works.

77.6

The CONTRACTOR himself shall not make any change in the drawings / sketches,
specifications and schedule, of items approved by the ENGINEER for executing the
contract work. If any error or omission is detected, he shall promptly bring the same to
the notice of the ENGINEER for clarification / decision / rectification. All modifications
shall be subject to the written approval of the Owner.

78.0

CONTRACTORS SUPERINTENDENCE

78.1

The CONTRACTOR shall provide all necessary superintendence during the execution of
the works and as the Owner may consider necessary for the proper fulfilling of the
CONTRACTORS obligations under the contract. The CONTRACTOR or one of his
competent authorized representatives duly approved in writing by the Owner (which
approval may be withdrawn at any time) is to be constantly on the works and shall give
his whole time to superintendence of the same. If such approval is withdrawn by the
Owner the CONTRACTOR shall as soon as practicable having written notice of such
withdrawal remove the representative from the site and shall not there after employ him
again at the site in any capacity and shall replace him by another representative who shall
receive on behalf of the CONTRACTOR directions and instructions from the Owner.

78.2.

The contractor shall submit to the Owner daily labour report in the format as prescribed
by the Owner showing the details of supervisory staff and several classes of labour
employed by the contractor on site.

78.3.

If in the opinion of the Owner due progress is not made with the work in accordance
with the contract and/or the execution there of becomes contrary to specifications, and /
or bad work is executed and / or bad materials are used or supplied by the
CONTRACTOR, and / or any directions given by the Owner are not properly complied
with or attached to, the Owner may, if he considers it necessary or proper for the due
execution of work in accordance with the contract, of which his certificate in writing
with sufficient evidence may issue written order for the employment of extra supervising
staff within 7 days to supervise the work. The expenses of such employment including
the salary of the supervising staff shall be provided by the CONTRACTOR.

78.4

The CONTRACTOR shall maintain a site order book for the Owner to give in writing
any instruction, decision, direction etc., to the CONTRACTOR at the site in connection
with the execution of the contract work. The CONTRACTOR shall acknowledge receipt
of such instruction, direction, decision by signing on the order book. Each page of the
site order book shall be duly numbered. Loss of site order book will be considered as
serious negligence on the part of the CONTRACTOR and suitable action shall be taken
as deemed fit as per the terms of the contract. Any instruction given to the
CONTRACTOR in the order book shall have the same force as that of any instruction
conveyed to the CONTRACTOR through a registered letter.

79.0

APPROVAL BY THE OWNER

79.1

The men, material and machinery proposed to be mobilised by the CONTRACTOR for
this work shall be subject to the approval of the Owner.

45

79.2

All changes from the agreed specifications / drawings shall be subject to the approval of
the Owner.

79.3

While the CONTRACTOR shall make / execute / perform supplies, work and services in
terms of the Contract, the Owner shall have right to check and approve design, type,
quality, quantity, materials and workmanship of any or all items of supplies, work and
services where considered necessary by the Owner to ensure that supplies, work and
services made / executed / performed by the CONTRACTOR are in accordance with the
provisions of this Contract.

79.4

Where approval of the Owner is necessary or implied but is not specifically provided for
elsewhere in this Contract such approval shall also come within the purview of this
Clause.

79.5

No certificate other than the final completion certificate referred to under Defect
liability period thereof shall be deemed to constitute approval of any works other than
matter in respect of which it is issued or shall be taken as admission of the due
performance of the contract or any part thereof, the accuracy of any claim or demand
made by the CONTRACTOR or of additional or varied work having been ordered by the
Owner nor shall any other certificate conclude or prejudice any of the powers of the
Owner.

79.6

Approval by the Owner in terms of this Clause shall not relieve the CONTRACTOR of
his obligations of this Contract.

79.7

Specialised agencies
With the written approval of the Owner, the contractor may engage specialised agencies
for carrying out any specialised works when such situation is warranted.

80.0

COMPLIANCE OF LAWS AND REGULATlONS

80.1

The CONTRACTOR shall throughout the performance of this Contract comply with all
laws, rules, regulations and statutory requirements of State Government concerned and
other statutory bodies as far as such bodies have jurisdiction over the Contract work or
any Part of the site.

80.2

All Contracts or terms thereof entered into between the Owner and the CONTRACTOR
shall be governed and regulated by the relevant laws in force in the territory of India
relating to contracts.

80.3

Where the CONTRACTOR considers that variations in drawings or specifications of

such work are necessary to enable him to comply with the provisions of the laws or
regulations or bye-laws as aforesaid, he shall give to the Owner a notice in writing
stating the variations proposed and reasons for such variations, and no action in this
behalf shall be taken by the CONTRACTOR until he receives instruction in writing
from the Owner in respect thereof. The CONTRACTOR shall be bound to give to the
authorities concerned such notices as may be provided in the law, regulations or byelaws as aforesaid and to pay all fees and taxes payable to such authorities in respect
thereof.

81.0

REJECTION

81.1

If the Contract work or any portion thereof, before it is accepted or taken over, be
defective or fails to fulfill the requirements of the Contract, the Owner shall give the
CONTRACTOR notice setting forth particulars of such defects or failure and the
CONTRACTOR shall forthwith make good the defects or alter the same to make it

46

comply with the requirements of the Contract. Should he fail to do so within a

reasonable time, the Owner may reject and replace at the risk and cost of the
CONTRACTOR the whole or any portion of the work as the case may be, which is
defective or fails to fulfill the requirements of the Contract. However, such rejection/
replacement by the Owner shall not absolve the CONTRACTOR of his responsibilities
under this Contract.
81.2

Any materials, equipment, etc. brought to site and found to be not in accordance with the
contract, shall be rejected by the Owner and the CONTRACTOR shall remove the
materials from site within the period specified by the Owner. Should the
CONTRACTOR fail to do, the Owner may remove the same at the risk and cost of the
CONTRACTOR.

81.3

In the event of such rejection, the Owner shall be entitled to the use of the work in a
reasonable and proper manner for a time reasonably sufficient to enable him to get the
replacement

81.4

The CONTRACTOR shall not be entitled to any extension of time or extra cost for
rejection as per clause 81.1, 81.2 above.

82.0

NEGLIGENCE

82.1

If the CONTRACTOR shall neglect to execute the work with due diligence or
expedition or shall refuse or neglect to comply with any reasonable order given to him in
writing by the Owner in connection with the work or shall contravene the provisions of
Contract, the Owner may give notice in writing to the CONTRACTOR calling upon him
to make good the failure, neglect or contravention complained of within such time as
may be deemed reasonable and in default of this compliance with the said notice, the
Owner without prejudice to his rights under clause 82.2 hereto, may rescind or cancel
the Contract holding the CONTRACTOR liable for the damages that the Owner may
sustaining this behalf. The making good of the failure, neglect or contravention
hereunder will be governed by clause 81.1.

82.2

Should the CONTRACTOR fail to comply with such notice within a reasonable period
from the date of serving the Notice thereof in the case of failure, neglect or
contravention capable of being made good within that time or otherwise within such
time as may be reasonably necessary for the same making good then and in such case
without prejudice to the Owners right under clause 82.1 hereto the Owner shall have at
his option the right to take the work wholly or in part out of the CONTRACTORs hands
and may complete the work envisaged in the contract either departmentally or by
awarding a fresh Contract at a reasonable price with any other persons to execute the
same or any part thereof and provide other materials, tools, tackle or labour for the
purpose of completing the work or any part thereof

82.3

In such event the Owner shall, without being responsible to the CONTRACTOR for fair
wear and tear of the same, be entitled to seize and take possession and have free use of
all materials, tools, tackle or other things which may be on the site for use at any time in
connection with the work to the exclusion of any right of the CONTRACTOR over the
same and the Owner shall be entitled to retain and apply and balance sum which may
otherwise be then due on the Contract by him to the CONTRACTOR or such part
thereof as may be necessary to the payment of the cost of execution of such work as
aforesaid

82.4

If the cost of executing the work as aforesaid shall exceed the balance due to the
CONTRACTOR and the CONTRACTOR fails to make good the deficit the said
47

83.0
83.1.

materials, tools, tackle, construction plant or other things, the property of the
CONTRACTOR as may not have been used up in the completion of the works, may be
sold by the Owner and the proceeds applied towards the payment of such difference and
the cost of and incidental to such sale, any outstanding balance existing after crediting
the proceeds of such sale be paid by the CONTRACTOR on the certificate of the
Owner, but when all expenses, cost and charges incurred in the completion of the work
are paid by the CONTRACTOR, all such materials, tools, tackle, construction plant or
other things not used in the completion of the works and remaining unsold shall be
removed by the CONTRACTOR.
INDEMNITY
The CONTRACTOR shall at all times indemnify and keep indemnified the Owner
against all claims which may be made against the Owner in respect of any infringement
of any rights protected by patent registration of design and trade mark. In this
connection, the Owner shall pass on all claims made against him to the CONTRACTOR
for settlement.

83.2

Not withstanding all reasonable and proper precautions being taken by the
CONTRACTOR at all times during the performance of the contract work, the
CONTRACTOR shall remain wholly responsible for all damages, whether to the
contract work executed by him or to any other Owners property or to the lives, persons
or property of others during the progress of the contract work and the period of
maintenance there of and shall indemnify, defend and hold harmless the Owner,
ENGINEER or their employees against all claims, loss, demands proceedings, charges
and expanses, liability for personal injury (including death), and/or damage omission or
default by the CONTRACTOR, servants or employees and arising out of or connected
with the performance of this agreement.

83.3

The CONTRACTOR assumes responsibility for and shall indemnify and save harmless
the Owner OR their Employees from all liability, claims, costs, expenses, taxes and
assessments including penalties, punitive damages, attorneys fees and court costs which
are or may be required with respect to any breach of the CONTRACTORs obligations
under the Contract or for which the CONTRACTOR has assumed responsibilities under
the contract including those imposed under any Contract local or national law or laws, or
in respect to all salaries, wages or other compensation or all persons employed by the
CONTRACTOR or his sub-contractors or suppliers in connection with the performance
of any work covered by the Contract. The CONTRACTOR shall execute, deliver and
shall cause his sub-contractors and suppliers to execute and deliver, such other further
instruments and to comply with all the requirements of such laws and regulations as may
be necessary there under to conform and effectuate the Contract and to protect the
Owner, the ENGINEER, or their employees during the tenure of the Contract.

83.4

Nothing contained in Clauses 83.2 and 83.3 above shall be deemed to render the
CONTRACTOR liable for in respect of or to indemnify the Owner against any
compensation or damages for or with respect to:a)

The permanent use or occupation of land by the works or any part there of or
surface or other damage caused by the contract works in the normal course.

b)

The rights of the Owner to construct the works or any parts there of on over,
under in or through any land.

48

c)

Interference whether temporary or permanent with any right of light, air way,
water or other easement or quasi easement which is the unavoidable result of
the construction of the works in accordance with the contract.

d)

Injuries or damages to persons or Property resulting from any act or neglect

done or committed during the currency of the contract of the Owner, his
agents, servants or other Contractors (Not being employed by the
Contractors) or for or in respect of any claims, demands, proceedings, costs,
charges and expenses in respect there of or in relation thereto. Provided
further that for this clause the expression the land shall be deemed to be
limited to the area defined in the specification or shown on the drawings in
which land, crops, trees, structures will be disturbed or damaged as an
inevitable consequence of carrying out the works.

83.5

The CONTRACTOR shall be responsible for proper fencing, lighting, guarding and
watching of all works at site until they are taken over and further proper provisions for
like period of temporary power, drainage, roadways footways, guards and fences as far
as may be rendered necessary by reason of works for accommodation and protection of
the Owners and occupiers of adjacent property, the public and others. No naked light
shall be used by the CONTRACTOR on the site otherwise than in the open air without
the special permission in writing from the Owner.

84.0

TERMINATION OF CONTRACTORS PERSONNEL

In the event the CONTRACTOR or their sub-contractors, agent, sub-agent, assistants,
firms or other employee shall in the opinion of the Owner be guilty of any misconduct or
be incompetent or insufficiently qualified or negligent in the performance of their duties
or in the opinion of the Owner it is undesirable for administrative or any other reasons
for such person to be employed, the CONTRACTOR; if so directed, shall immediately
remove such person or persons from employment thereon. Any person or persons so
removed shall not again be employed in connection with this Contract without the
written permission of the Owner. Any person so removed shall immediately be replaced
by a qualified and competent substitute at the CONTRACTORs cost and expenses.
Should the CONTRACTOR be requested to repatriate any person he shall do so and
shall bear all costs and charges in connection therewith.

85.0

SAFETY AND SECURITY

85.1

The CONTRACTOR shall adopt adequate safety measure and use of protective clothing
by all the workmen at site whether or not engaged in actual execution of work or
supervision thereof as per requirement. The CONTRACTOR shall ensure that the
workmen on site use safety belts, gloves, helmets, masks, etc. as are necessary for their
safety.

85.2

The CONTRACTOR shall be responsible for safety arrangements of all equipment used
in connection with the execution of the work and shall ensure employment of only
trained operators to man the equipment. Only tested equipment, tools, wires, ropes, etc.
shall be used and shall periodically be tested to the satisfaction of the Owner. All test
certificate shall be made available to the Owner at site as and when required by him.

85.3

The CONTRACTOR shall, in connection with the execution of the work, ensure
provision and maintenance at his own cost all lights, guards, fencing with gate and
watching when and where necessary or required by the client or by any duly constituted
authority for the protection of work and/or for the safety and convenience of the public
or others.
49

85.4

The CONTRACTOR shall take adequate safety precautions for prevention of accidents
at site. The CONTRACTOR shall also ensure that their employees/ workmen observe
the statutory safety rules and regulations as also those laid down by the Owner from time
to time.

85.5

The CONTRACTOR shall provide at his cost necessary watch and ward force as may be
approved by the Owner to ensure security and safety of all buildings, structures,
equipment and materials under their custody at the site of work.

85.6

The CONTRACTOR shall abide by all security regulations at site promulgated by the
Owner from time to time. If required the CONTRACTOR shall provide identity badges
to their personnel and workmen which must be properly displayed by them at site.

85.7

In order to facilitate issue of exit gate permits by the Owner for materials and equipment
either during execution or the maintenance period, the CONTRACTOR shall submit to
the Owner list of construction/erection equipment etc. and/ or other materials that shall
be taken by them inside the site from time to time. Such movement of materials,
equipment, machineries, tools, tackles, etc. shall be subject to certification by the Owner.

85.8

All erection bolts shall be retained in position after completion of erection. In case the
erection bolts are removed after completion of erection, the holes shall be plug welded
and no unfilled holes shall be left in any part of the structure.

85.9

The CONTRACTOR and his personnel/ workmen shall be subjected to security check
by Owners own security force if engaged by the Owner for the over- all protection of
the Project.

85.10 All the safety and security Clauses as per clauses above shall be undertaken by the
Contractor at no extra cost.
86.0

OWNERS AUTHORlTY

86.1

Owner shall be the sole communicating Authority and all correspondence under this
contract to the Owner shall be addressed to the ENGINEER by the CONTRACTOR

86.2

Owner shall approve the necessary drawings, sketches, specifications, instructions,

clarifications, etc. to the CONTRACTOR required for the execution of works and also
record instructions in site order book where called for, for compliance by the
CONTRACTOR

86.3

Owner shall have the authority at no extra cost to :

i) Make any modifications alteration to the drawings/ sketches already supplied to
the CONTRACTOR.
ii) Increase/decrease the quantum of work specified in the schedule of items or to
omit items of works and/ or to order substitutions.
iii) Inspect, test and examine all the materials and workmanship employed in the
construction.
iv) Reject materials/workmanship not conforming to instructions/ specifications/
drawings and to order for removal of rejected materials or pull down/ dismantle
defective works.
v) Enforce that provision of various statutory laws and regulations in vogue
pertaining to labour and construction work are strictly complied with by
CONTRACTOR
vi) Give notice to the CONTRACTOR if any deficiency is found with regard to
adherence to accepted programme or sequence of work or delay in procurement

50

of material and labour or negligence on the part of the CONTRACTOR or his

authorized agent.
vii) Alter already agreed programme or sequence of work if found necessary at a
later date due to design and other stipulations in the Bid even if it leads to
interruption to anyone or more types of work.
viii) Request CONTRACTOR to expel from site any of his employees/workmen
who in his opinion is incompetent or otherwise whose presence is undesirable at
site
ix) Enforce any or all other provision in the Contract to ensure that the work is
carried out by the CONTRACTOR strictly in accordance with the contract.
87. 0 NO CLAIM FOR COMPENSATION FOR SUBMISSION OF BID
.
i) The submission of any bid connected with these documents and specifications shall
constitute an agreement that the bidder shall have no cause of action or claim
against the purchaser for reject of his bid.
ii) The bidder whose bid is not accepted shall not be entitled to claim any costs,
charges and expenses incidental to or incurred by him through or in connection
with his submission of bid or its consideration by the purchaser even though the
purchaser may elect to modify/withdraw the invitation to bid or does not accept
the bid.

51

SECTION-II

SPECIAL CONDITIONS OF
CONTRACT FOR CIVIL WORKS

52

SPECIAL CONDITIONS
1

The contractor has to make his/their own arrangements for taking levels of initial,
intermediate and final completion. The contractor has to check alignment and gradient. The
contractor has to arrange gradient level, pre-measurement utilities, etc. required for the
work.

During rain and in rainy days external work such as masonry, plastering etc shall be strictly
avoided.

During the Defect Liability Period, the contractor has to make good the defects in the
building as and when required at his/their own cost.

The Contractor shall quote their offer in the schedule. The scope of work under various
items of work includes cost and conveyance of all materials (unless otherwise specified) all
labour charges, scaffolding tools, plants, safety measures etc., complete.

NTPL reserves the right to increase or decrease the quantities in any item depending upon
actual requirements.

Manufacturers test certificate for the construction materials brought to site are to be
submitted before commencing the work.

Unless otherwise stated, the work shall be executed as per the specification mentioned in
the schedule of items and rates and relevant IS specifications.

The contractor shall arrange for welding set, cutting set, electrodes and other tools and
plants, welders and other connected auxiliaries at his cost as may be required for the work.

Workmanship and finish shall conform to the approved methods of fabrication. All
materials shall be machined true and square.

10

Electrode classification as given in IS 814- latest edition shall be used for welding steel.

11

The welded work shall conform to IS 814 latest edition. The weld metal shall be free from
cracks, slag, incursions, porosity, cavities and other deposition faults. The surface of the
weld shall have uniform colour and appearance. For all welding works, continuous welding
shall be done.

12

The contractor shall employ on job only skilled workers who have previous experience in
the work. The officers have the right to direct the contractor to remove such of those
workers whom they consider incompetent and undesirable for any particular job.
The contractors authorized representative should be available at site of work to take
instruction from the field officers regarding execution of the work.

13
14

The quantities mentioned in the schedule are only tentative and are likely to be increased or
decreased depending upon the requirements at site during the period of contract.

15

The work should be executed as per the approved Drawings

16

The work should be executed without disturbance to other works in the work site.
Purchaser reserves the rights to terminate the contract if he finds that the contractor is not
carrying out the work satisfactorily.

53

17

a) The material brought to site by the contractor shall be arranged to be tested at any Govt.
laboratories, like National Test house, SERC, IIT, Approved Educational institutions.
Testing charges will have to be borne by the contractor. The contractor shall furnish test
reports of the products used or intended to be used if called for in the specification or if so
desired by the Engineer. All samples shall be supplied by the contractor at his own cost.
b) The contractor has to bring the test materials like 150X150x150 MM cube Steel Mould,
Slump Cone, Measuring Jar (1 Litre) etc. also to the site of work at his own cost for
enabling the condition of the field test at site as directed by the Engineer-in-charge.

18

The contractor has to make his own arrangements for the safe custody of the materials till
the materials are consumed in the work and should maintain stock register for the materials.

19

The contractor has to submit all vouchers, bills pertaining to all the materials as and when
insisted by the site officer as soon as the materials are received at site of work.

20

The contractor has to follow labour laws, minimum wages act

21

The contractor shall provide damp proof godown and sheds for storage of materials, which
shall be dismantled at his cost after completion of work.

22

a) The Contractor has to establish a site lab with all equipments for doing day to day tests at
site. One quality control supervisor shall be engaged for doing such tests.
b) If insisted by the Purchaser the tests are to be carried out in any of the Govt. approved
labs at no extra cost.
c) Maintenance of Pour cards and quality control registers shall be done by the contractor.
TIME SCHEDULE:
Time is the essence of this contract. The entire work should be completed within
eighteen Months (18 months) from the date of handing over of site.

54

SAFETY INSTRUCTIONS.
1.0

General:

1.1

Only authorised Labourers /Workmen with Token/Gate Pass shall be permitted to work.

1.2

Unauthorised entry shall be strictly prohibited.

1.3

The Labourers shall wear/use such safety appliances, gadgets as per work requirements.

1.4

Under-aged worker and children shall not be allowed inside

2.0

Special Instructions:

2.1

Smoking and carrying lighter or match box are prohibited

2.2

Any switch provided with danger board/tag shall not be tampered.

2.3

Crossing, setting, chatting in between railway tracks, wagons are strictly prohibited.

2.4

Line Clear shall be obtained before commencing the work in the equipments installed.

55

SECTION-III
CONSTRUCTION CONDITIONS OF CONTRACT

56

CONSTRUCTION CONDITIONS OF CONTRACT

1.0

SCOPE OF WORK:

1.1

The scope of construction work shall be as defined and described in the technical part of
Tender specification.

2.0

MOBILISATION SITE OFFICE ESTABLISHMENT:

2.1

The Contractor shall establish a Site office at the location approved by the Purchaser at
site and keep posted an authorised experienced Site-in-Charge for the purpose of this
contract and its performance. The Site in charge and the establishment of Site office shall
be as per agreed Schedule

2.2

Any written order/directions/instructions issued by the Purchaser or his duly authorised

representative, shall be communicated to the said Site in charge of the Contractor, and
the same shall be deemed to have been communicated to the legal address of the
contractor.

2.3

The Site in charge shall be fully conversant of the scope of work and shall organize
mobilizing the man power, construction equipments, tools, tackles and commence the
erection work as per agreed programme

3.0

PLANTS AND MACHINERY:

3.1

As agreed the required Construction plant and machinery in good working condition
shall be moved to the site of erection work. These machineries are to be checked, tested
and maintained properly so as to carry out the erection work in sequence, without any
downtime.

4.0

ACCESS TO SITE AND WORKS ON SITE:

4.1

The Purchaser shall provide at the earmarked erection/construction site suitable access
and possession by the contractor as per the agreed time schedule.

4.2

The Contractor shall not allow unauthorized persons, labour, workmen and any
unauthorized Sub-Contractor to the site of work.

4.3

The Contractor shall carry out the instructions of the Purchaser and shall comply with the
statutory applicable laws.

4.4

The site of work shall be kept clean all the time and shall be made easy for the Purchaser,
or Purchasers representative for inspection, Supervision, checking and all other
engineering activities.

4.5

If the site of work is not handed over as per agreed time schedule, the contractor may
claim extension of time and the Purchaser will grant it.

57

5.0

LINES AND GRADES:

5.1

The Contractor shall perform all the works with reference to lines, grades, elevations
indicated in the respective drawing. The contractor shall be responsible to locate and lay
out the works.

5.2

The basic horizontal and vertical control points shall be established at suitable
convenient location at the work site by the Purchaser. These control points shall be used
as data for all the work under the contract to be performed. The Contractor on taking
over the site shall inform the purchaser as to when he proposes to commence the work to
enable the Purchaser to establish these control points and fix up datum.

5.3

Such datum like bench marks, masonry pillars or any other set up by the Purchaser and
already established in and around the site of work shall not be disturbed.

5.4

Owner shall furnish the contractor with a reference point and base line within the plant
boundary limits and a level benchmark. The contractor shall setout the works and shall
be solely responsible for the accuracy of such setting out.

6.0

SITE DATA, HANDING OVER CIVIL FOUNDATION, STRUCTURES &

OTHER AREAS:

6.1

The Contractor shall be deemed to be fully aware of the Site data like climate,
hydrological and general conditions at site and also availability of various resources.

7.0

COMMUNICATION:

7.1

The Communication between the Purchaser and the Contractor shall be in writing and in
English language only.

8.0

CONSTRUCTION MANAGEMENT

8.1

The Contractor shall post staff as agreed and deploy them at the appropriate time. The
Contractor shall keep the Purchaser informed as soon as such staff are posted and joined
at site with their functional area and authority.

8.2

The Purchaser shall hold meetings on predetermined day/date weekly with the
Contractor

and

shall

jointly

review

the

progress

of

work

as

against

target/achievement/constraints. If any delay caused or anticipated, the remedial measures

needed shall be taken by Contractor by deploying additional Labour/machines/working
overtime. No compensation will be paid by Purchaser for this action. Both the purchaser
and the Contractor shall act on the respective areas of concern.
8.3

Time being the essence of the contract the contractor shall be responsible for the
performance of the contract according to the agreed time schedule.

8.4

As per activity / bar chart, progress must be constantly and periodically reviewed and
58

slippages/ constraints shall be noted then and there. Remedial measure by the Purchaser
as well as the Contractor shall be taken not to allow it to be escalated further. The details
must be marked in the bar chart. All such delays and problems shall be constantly
marked in the Bar chart and viewed. This process shall help to identify the delays caused
by each party. Then the charts are drawn out separately as delays by each and
apportioned between them. This delay apportioned form a basis for deciding the quantum
of Liquidated damages leviable and time extension there upon.
8.5

Hindrances:

8.5.1

Events that caused hindrance to proceed and progress with the work shall be recorded
daily and signed by the Construction Dept and the Contractor. The Project Coordination
Committee shall take these data for settling the issues.
A record of events shall be maintained as under with the Signature of the Contractor and
the Purchaser against each case.

HINDRANCE RECORD REGISTER

Purchaser

Contractor

Delay by
Contractor/
Purchaser

Signature of the
Remedy

Over lapping
Period (if any)

Scheduled date of Completion:

Duration

Name of Contractor:
Description of
Hindrance

Value of Contract:

Sl. No.

Name of work:

9.0

MANNER OF EXECUTION, FIELD OPERATIONS & AREA LIMITS.

9.1

The drawing providing the area boundary limits allocated by the Purchaser towards the
field operation by the Contractor shall be furnished by the Purchaser. The Contractor
shall make use of this area effectively for his construction, erection and other connected
works and shall not exceed the boundary limits marked in the drawing.
59

9.2

All construction and erection works shall be performed / executed adhering to approved
drawings, construction methods, quality standards and as directed by the Purchaser.

9.3

The Contractor shall erect/ install the equipment as per procedures and in accordance
with relevant codes and accepted engineering practices.

9.4

The trial runs, test runs, performance tests etc., shall also be as per approved methods,
systems etc.

9.5

Contractor shall keep the Purchaser informed in advance his plan of action on a weekly
basis and the same shall be reviewed wherever necessary by the Purchaser.

9.6

The Contractor shall be fully and totally responsible for the execution of the work, safety
of equipment, Labourers engaged by him as well as his approved Sub-Contractors if any.

9.7

The Contractor shall be responsible for any damage, injury caused resulting from his
operations to any public or private property including structures, buildings, plant &
equipments, utilities, members of public, his own employees, Workmen of his own or of
Sub-contractors if any.

10.0

PURCHASERS LIEN ON THE EQUIPMENTS.

10.1

The Purchaser shall have lien on all the equipments, components and construction
machineries, tools, tackles etc., brought to site by the Contractor till the contract period.

10.2

The Contractor or the authorised Sub-Contractors shall not remove any construction
machinery, tools, tackles from the Site of work, without the written permission of the
Purchaser.

11.0

FIELD OFFICE RECORDS:

11.1

The Contractor shall keep at the Site office, an approved contract agreement copy,
approved drawings, specifications, amendments if any, progress activity/charts and
periodically updated. The Contractor shall also keep all Labour reports as per statutory
requirements.

11.2

The Contractor shall also keep documents on changes in the drawings, specifications etc.

11.3

The Contractor in addition to the above as per the working requirements shall keep
records on exceptional events, such as accidents, damages to equipments, loss, pilferage,
Labour problems etc.

12.0

PROTECTION TO WORKS FIRE PROTECTION

12.1

The Contractor shall be totally responsible for protecting his construction, erection work
and all site facilities created towards it till the completion of the work and final take over
by the Purchaser.

12.2

The Purchaser shall not admit any claim arising out of improper protection to works as
60

stated. If there be any damage/loss caused to the Purchaser or his Agents/ workmen or
properties due to improper protection by the Contractor, the Contractor has to make
suitable compensation for the same. The amount of compensation fixed by the Purchaser
shall be final. If the Contractor does not pay the compensation within say

1 (One)

month, the Purchaser is entitled to recover the same from the bills or other payments due
to the Contractor.
12.3

If there be loss caused to other Contractors, Sub contractors, Contractors workmen or

others or the properties not belonging to the Purchaser the issues shall be settled by them
and the position intimated to the Purchaser.

12.4

Where the Purchaser has an obligation legally or otherwise to pay compensation in such
cases, the Purchaser shall pay the amount and recover from Contractors bills.

12.5

The Contractor shall provide at his own cost adequate and enough fire protection
equipment and appliances around his area of work and at all site facilities created.

13.0

PROGRESS REPORTS, PHOTOS & MAN POWER REPORTS:

13.1

The Contractor shall submit monthly progress reports on or before seventh of subsequent
calendar month in the agreed format, model enclosed at the end of this section, along
with photographs of the progress therefor in triplicate. On the reverse side of the
photographs the particulars regarding the Contract Number, Short description of work,
Title of the Photograph and date on which the photograph was taken, shall be indicated.
The Progress report shall indicate the reasons for variation between the Scheduled and
Actual progress and the proposed corrective measures.

13.2

The Contractor shall also submit Man Power Report, Number of persons engaged, skill
wise indicating location wise of deployment of such labour along with the monthly
progress report.

13.3

Such Progress Report shall be reviewed and remarks communicated by the Purchaser
before Tenth of the month.

14.0

EMPLOYMENT OF LABOUR AND COMPLIANCE WITH LABOUR LAWS.

14.1

The Contractor shall employ on the work only skilled workers with experience in the
particular trade. The Contractor shall not employ any worker below the age of eighteen.
Female labour shall not be employed after darkness.

14.2

The Construction workers shall be issued and identified with suitable badges and it shall
be worn throughout the working hours.

14.3

All facilities required for the Workers shall be provided by the Contractor at his own
cost.
61

14.4

The Contractor shall pay his workers regularly their Minimum wages, over time and
other compensation. In case the Purchaser becomes liable to pay any one, the Purchaser
shall pay as per Statutory provisions and shall recover from the Contractors.

14.5

The Contractors employees shall study, adhere and follow the provisions under the
various Labour Laws and other enactments, amendments and rules made there under,
like
Workmens Compensation Act :1923
Payment of Wages Act :1936
Industrial Disputes Act :1947
Factories Act :1948
Minimum Wages Act :1948
The Employees Provident Fund Act :1952
Apprentice Act :1961
The Contract Labour Regulation Act :1970-71
Inter state migrant workmen Act :1979
Building and other Construction Workers Act :1979

14.6

The Contractor shall not withdraw any employee from the Site without prior notice to
the Purchaser. If in the opinion of the Purchaser the conduct, integrity of any of the
Contractors employee are found to be doubtful, such employee shall be removed from
the rolls of Contractor.

15.0

CO-OPERATION WITH OTHER CONTRACTORS:

15.1

The Contractor in performing his scope of work shall fully co-operate with other
Contractors of the Purchaser. The Contractor shall so plan and perform his work without
causing any interference and hindrance to other Contractors.

15.2

In the event of any loss or damage caused to other Contractors, the Contractor shall settle
all issues arising out of it and the Purchaser shall be informed immediately and also
through monthly progress reports.

15.3

The Purchaser shall not grant any time extension or entertain any claim compensation due
to the above causes.

16.0

INSPECTION AND TESTING

16.1

Notwithstanding the inspection made before dispatch of any equipment, components,

sub-assemblies etc., the Purchaser reserves the right to re-inspect them as considered
necessary. The Contractor shall provide the facilities required for such inspection at his
own cost.
62

16.2

If on such inspection any defects are noticed the same shall be examined, replaced or
reconditioned as may be necessary at his own cost to the satisfaction of the Purchaser.

16.3

The Purchaser shall have free access at all reasonable times to the Works/Workshops
where materials are being manufactured/ lying for the contract and the contractor shall
provide all facilities for inspection, testing, examination and workmanship. The work
may be temporarily suspended by Purchaser if needed.

17.0

SECURITY MEASURES:

17.1

The Contractor shall be totally responsible towards security of all the Equipments,
construction works, tools, tackles, machineries and other materials in his custody in the
works site, stores, yards and shall keep adequate security personnel posted to ensure the
safety and protection

17.2

All such items shall be allowed to be brought under the site or taken out of the site only
with written permission of the Purchaser.

18.0

SAFETY MEASURES

18.1

The Contractor shall ensure proper safety of all the Workmen, materials, Construction
machineries, equipments, tools and tackles etc., at works site as well as other areas of his
operation. The Contractor shall provide all the required safety notices, sign boards,
warning lights, alarms, safety appliances, equipments etc., to protect the people and
property and the work under erection/ construction. The Contractor shall also provide the
Standard safety equipments, appliances etc., to his Supervisors, Workmen etc.,

18.2

The Contractor shall provide safe working conditions to all his Supervisors and
workmen.

18.3

The Contractor shall deploy a qualified Safety Officer to closely monitor the safety
aspects.

19.0

SUSPENSION OF WORK:

19.1

The Purchaser reserves the right to suspend and reinstate the execution of the whole
work or any part therein without invalidating the provisions of the contract.

19.2

The Purchaser shall grant extension of time for a period equivalent to the duration of
suspension. In such an event the levy of Liquidated damages shall be reckoned for the
delays attributable to the Contractor from the extended time.

19.3

The Contractor if suffers, any demonstrable loss as a result of such suspension, shall be
compensated.

19.4

The Purchaser shall not be liable in any way if the suspension of work is due to default on
the part of the Contractor or his Sub contractor.
63

20.0

PROTECTION TO MONUMENTS - FOSSILS

20.1

If the Contractor, during the course of performance of the work, finds any relic antiquity,
coins, fossils etc., he shall protect them and hand over them to the Purchaser.

20.2

The Contractor shall protect all reference points, bench marks etc., established at the site
of work.

21.0

MONTHLY PROGRESS REPORT for the month of

(Ref: Para 13.1)

Contract No.
Name of Contractor
Scheduled date
S.No.

Item

As per
Target

Difference

Constraints

Actuals

Date:

CONTRACTORS SIGNATURE.
th

Note: 1. To be submitted in triplicate on or before 7 of subsequent month

2. Photographs shall be enclosed with date.

64

SECTION-IV
FORMATS AND ANNEXURES

65

PROFORMA FOR BANK GUARANTEE FOR CONTRACT

PERFORMANCE GUARANTEE (CPG)
NOTE:
1. This guarantee has to be furnished by a Scheduled commercial Bank ( other than Bank of
China) authorised by RBI.
2. The Bank Guarantee should be furnished on Stamp paper of value not less than
Rs. 80/- as per Stamp Act.
3. The stamp papers should be purchased in the name of Bank executing the guarantee.
---------------------------------------------------------------------------------------------------------------DATE:
Bank Guarantee No.
To
M/s. NLC Tamil Nadu Power Limited, Tuticorin,
Tamil Nadu.
India.

Dear Sirs,
1.0 In consideration of the NLC Tamil Nadu Power Limited hereinafter referred to as the
PURCHASER, which expression shall, unless repugnant to the context or meaning, thereof
include its successors, representatives and assignees, having awarded in favour of
M/s. .............. having registered office at ................ hereinafter referred to as the
CONTRACTOR, which expression shall unless repugnant to the context or meaning thereof
include its successors, administrators, representatives and assignees, a Contract, hereinafter
referred as the CONTRACT" for the ............ on terms and conditions set out interalia, in the
PURCHASER`s Contract /Letter of Award No......................... dated ------------as well as
"CONTRACT" documents, valued at ........... ............ ........... (In words) and the same having
been unequivocally accepted by the CONTRACTOR and the CONTRACTOR having
agreed to provide a Contract Performance Guarantee for the faithful performance of the
entire "Contract" including the warranty obligations /liabilities under the contract equivalent
to 10% of the said value of the Contract,

to the PURCHASER amounting to

....................................... (In words) as Contract Security in the form of a Bank Guarantee.

66

2.0

We, ..............(Name)..................(Address) hereinafter referred to as the "Bank which

expression shall, unless repugnant to the context or meaning thereof, include its
successors, administrators, representatives and assignees do hereby irrevocably guarantee
and undertake to pay the PURCHASER merely on demand without any previous notice
and without any demur and without referring to any other source, any and all monies
payable by the CONTRACTOR by reason of any breach by the said CONTRACTOR of
any of the terms and conditions of the said CONTRACT including non-execution of the
"CONTRACT AGREEMENT" to the extent of 10% of the Contract price, and adherence
to Time Schedule stipulated at any time upto ....... (day /month/ year). Any such demand
made by the PURCHASER on the bank shall be conclusive and binding, absolute and
unequivocal not withstanding any disputes raised/pending before any court, tribunal,
arbitration or any other authority. The Bank agrees that the guarantee herein contained
shall continue to be enforceable till this sum due to the PURCHASER is fully paid and
claims satisfied or till the PURCHASER discharges this Guarantee.

3.0

The Bank further irrevocably guarantees and undertakes to pay on mere demand, without
any demur, reservation, contest, recourse or protest any and all monies due and payable
by the CONTRACTOR by reasons of nonfulfillment of any of the following obligations.

3.1

For the successful and satisfactory performance of the Work/Plant/System/ equipment

furnished and erected/constructed under the said Contract as per the specifications and
documents.

3.2

That the work/system/ equipment installed/constructed under the said Contract shall be
new and in accordance with Contract Documents and be free from all defects in design,
material workmanship and performance including modifications, improvements and
replacements for a period of 12 calendar months, from successful completion of take
over test of the work / system / equipment and that immediately upon intimation / written
notice from the PURCHASER, the CONTRACTOR shall remedy free of expenses to the
PURCHASER such defects as noticed and developed under the normal use of the said
work / system / equipment, within the said guarantee period.

67

4.0

The PURCHASER shall have the fullest liberty without affecting in any way the liability
of the Bank under this guarantee, from time to time, to extend the time of performance
by the CONTRACTOR. The Bank shall not be released from its liabilities under these
presents by any exercise of the PURCHASER of the liberty with reference to the matter
aforesaid.

5.0

The PURCHASER shall have the fullest liberty, without affecting this guarantee to
postpone from time to time the exercise of any Powers vested in them or of any right
which they might have against the CONTRACTOR and to exercise the same at any time
in any manner, and either to enforce or to forbear to enforce any covenants, contained or
implied in the CONTRACT between the PURCHASER and the CONTRACTOR or any
other course or remedy or security available to the PURCHASER and the BANK shall
not be released of its obligations/ liabilities under these presents by any exercise by the
PURCHASER of his liberty with reference to the matters aforesaid or any of them or by
reasons of any other act or forbearance or other acts of omission or commission on part
of the PURCHASER or any other indulgence shown by the PURCHASER or by any
other matter or thing whatsoever which under law would, but for this provision, have the
effect of relieving the Bank Guarantee. The Bank further undertakes not to revoke this
guarantee during its currency without the previous consent of the PURCHASER.

6.0

The Purchaser shall have the fullest liberty to lodge their claims for encashment of the
guaranteed sum in full or in part, in the manner suitable to them. However payment made
for a sum lesser than the guaranteed amount shall not relieve or discharge the bank from
their obligations guaranteed hereunder till the contractual obligations are fully performed
by the Contractor or the Bank guarantee is discharged by the Purchaser as the case may
be and the Bank Guarantee shall continue to be in force till such time.

6.1

The Bank further agrees that the decision of the PURCHASER as to the failure on the
part of the CONTRACTOR to fulfil their obligations as aforesaid and/or as to the amount
payable by the BANK to the PURCHASER hereunder shall be final, conclusive and
binding on the BANK.

7.0

The Bank also agrees that the PURCHASER shall be entitled at his option to enforce this
guarantee against the BANK as a principal debtor, in the first instance notwithstanding
any other Security or guarantee that it may have in relation to the CONTRACTOR`s
liabilities.

68

8.0

This guarantee will not be discharged due to the change in the constitution of the
BANK or the CONTRACTOR(S).

9.0

Notwithstanding anything contained herein:

a.

our liability under this bank guarantee shall not exceed

(in words)

b.

this bank guarantee shall be valid upto ..; and

c.

we are liable to pay the guaranteed amount or any part thereof under this bank
guarantee only and only if you serve upon us a written claim or demand on or
before
Signature

Witnesses:

Name in Block Letters

1. Signature

Designation:

Name in Block Letters

Staff Code No.

Occupation and Address

Bankers Seal

Attorney as per power of

Attorney No..dt.

2. Signature
Name in Block Letters

Occupation and Address

69

BANK GUARANTEE FOR ADVANCE PAYMENT

Note:
1.

This Guarantee should be furnished by a Scheduled commercial Bank authorised by RBI,

other than Bank of China
The Bank Guarantee should be furnished on Stamp paper of value of Rs 80/- as per
Stamp Act.
The stamp paper should have been purchased in the name of the Bank executing the
Guarantee.
Advance Payment Guarantee No.----------------

2.
3.

Place-------------------Date--------------------To
M/s. NLC Tamil Nadu Power Limited,
Tuticorin,
Tamil Nadu,
India.
Dear Sirs,
1.0

Pursuant to the contract, hereinafter referred to as The CONTRACT which M/s._ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ hereinafter referred to as the CONTRACTOR, which
expression shall, unless repugnant to the context or meaning thereof, include its successors,
administrators, representatives and assignees, have concluded with NLC TAMIL NADU
POWER LIMITED hereinafter referred to as the PURCHASER, which expression shall,
unless repugnant to the context or meaning thereof, include its successors, administrators,
representatives and assignees, on _ _ _ _ _ _vide Letter of Award/Contract No. _ _ _ _ _ _ _
dated_ _ _ _ _ _ _ _ _ _ the Contractor have undertaken to _ _ _ _ _ _ _ _ _ _ _ of the
contract as per the prices indicated hereunder against each:

a. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
b. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
c. _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _
2.0 According to the said contract, the PURCHASER has undertaken to make an advance
payment of Rs._ _ _ _ __ _ _ (Rupees__ _ _ _ _ _ _only) being the payment of _ _ _ % of the
Contract value for _ _ _ _ _ _ against issuance of an advance payment guarantee by a Bank
for 110% of the advance amount.

70

3.0 For this advance payment, we, the undersigned_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Name

... (address), hereinafter referred to as the Bank, which expression
shall unless repugnant to the context or meaning thereof, include its successors,
administrators, representatives and assignees, hereby guarantee to the effect that we
irrevocably undertake to pay the PURCHASER merely on demand without any previous
notice and without any demur, reservation, contest, protest and without recourse to the
Contractor and without referring to any other source, any and all monies payable by the
Contractor towards the advance or part thereof paid by the PURCHASER, but not exceeding
Rs. _ _ _ _ _ _ _ _ _ (Rupees_ _ _ _ _ _ _ _ _only) provided the PURCHASER advises us
that the Contractor has failed to fulfill his contractual obligations stipulated in the said
Contract. Any such demand made by the PURCHASER on the Bank shall be conclusive and
binding, absolute and unequivocal notwithstanding any difference between the
PURCHASER and the CONTRACTOR or any dispute or disputes raised/pending before any
court, Tribunal, Arbitrator or any other authority.

3.1

The value of the Advance Payment Guarantee shall stand progressively diminished based
on the supplies/ erection made on quarterly basis on the advise of the Purchaser.

4.0
5.0

This Guarantee will not be discharged due to the change in the constitution of the Bank
or the CONTRACTOR(S).
This guarantee will become invalid after_ _ _ _ _ _ _ _ _ _ _ from the date of LOA or as
soon as this letter of guarantee has been returned to us, at the latest, however, on __ _ _ _
_ _ _ unless a claim has been lodged with us under this guarantee before that date.

6.0

The PURCHASER shall have the fullest liberty without affecting in any way the liability
of the Bank under this guarantee from time to time to extend the time of performance by
the CONTRACTOR. The Bank shall not be released from its liability under these
presents by any exercise of the PURCHASER of the liberty with reference to the matter
aforesaid.

7.0

The Bank also agrees that the PURCHASER shall be entitled at his option to enforce this
guarantee against the Bank as a Principal Debtor, in the first instance not withstanding
any other Security or guarantee that it may have in relation to the Contractors liabilities.

8.0

This guarantee shall remain in force upto and including _ _ _ _ _ and shall be extended
from time to time for such period as may be desired by M/s._ __ _ _ _ _ _ _ _ _ _ _ on
whose behalf this guarantee has been given.

71

9.0

The Bank further agrees that the decision of the PURCHASER as to the failure on the
part of the CONTRACTOR to fulfill the contractual obligations stipulated in the said
contract and/or to the amount payable by the Bank to the Purchaser shall be final,
conclusive and binding.

10.0

This guarantee is revocable only with the written consent of the PURCHASER.

11.0

This guarantee deed must be returned to us upon the expiration, of the guarantee.

12.0

Notwithstanding anything contained herein:

a. Our liability under this bank guarantee shall not exceed ..(in words)
b. This bank guarantee shall be valid upto . and
c. We are liable to pay the guaranteed amount or any part thereof under this bank
guarantee only if you serve upon us a written claim or demand on or
before..

Dated this _ _ __day of _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _20 _ _

Signature

Witnesses:

Name in Block Letters

1. Signature

Designation:

Name in Block Letters

Staff Code No.

Occupation and Address

Bankers Seal

Attorney as per power of

Attorney No..dt.

2. Signature

Name in Block Letters

Occupation and Address

72

BANK GUARANTEE FOR RELEASE OF LIQUIDATED DAMAGES AMOUNT

Note:
1
2.
3.

This Guarantee should be furnished by a Scheduled commercial Bank authorised by

RBI, other than Bank of China
The Bank Guarantee should be furnished on Stamp paper of value of not less then Rs.80/
The stamp paper should have been purchased in the name of the Bank executing the
Guarantee.
B.G. No.
Date ..

To
M/s. NLC Tamilnadu Power Ltd.
Tuticorin
Tamilnadu, India.
1.0

Pursuant to the contract Nodated hereinafter referred to as

The CONTRACT with M/s .. hereinafter
referred to as The CONTRACTOR which expression shall unless repugnant to the
context or meaning thereof, include its successors, administrators, representatives and
assignees have concluded with M/s. NLC Tamil Nadu Power Ltd., hereinafter referred to
as PURCHASER which expression shall unless repugnant to the context or meaning
thereof, include its successors, administrators, representatives and assignees vide
Contract No.
Contractor

.. ..and the subsequent amendments thereto the

has

undertaken

to

execute

the

work

of

for a total contract value of Rs.(Rupees only.)

2.0

Whereas as per Clause of the Contract the CONTRACTOR should have

completed the work of .by ...and as per the
Clause .of the Contract, the PURCHASER is entitled to levy Liquidated damages
for delays.

3.0

Whereas the CONTRACTOR failed to adhere to the Time schedule or, stipulated in the
Contract

for

which,

the

PURCHASER

has

recovered

sum

of

Rs.(Rupees.only) towards Liquidated Damages for the

delays in the execution of Works in accordance with the clause . of the
contract.

73

4.0

Whereas the Contractor has requested the PURCHASER for the release of the said
amount withheld towards Liquidated Damages for the delay in execution of work to
enable him to overcome the Liquidity problems. In consideration of the above request,
the Purchaser has agreed to withhold 10 % of the amount recoverable and to release
90 % of the amount recovered towards Liquidated Damages subject to the condition that
the Contractor furnishes a Bank guarantee for the 100% of amount withheld towards
Liquidated Damages.

5.0

We, ..(bank) .. ..(address) having our head

office at , hereinafter referred to as Bank which expression shall include
its successors, representatives, administrators and assignees, do hereby irrevocably
undertake that in the event of the PURCHASER deciding not to waive the Liquidated
Damages recovered from the CONTRACTOR and thereby deciding to finally confirm
the levy and recover the amount of Liquidated Damages provisionally released, to pay
the amount of Rs. (Rupees only) due and payable under this
guarantee to the PURCHASER without any demur, merely on demand from the
PURCHASER. Any such demand made by the PURCHASER on the Bank shall be
conclusive and binding, absolute and unequivocal as regards the amount due and payable
by the Bank under this guarantee, notwithstanding any difference between the
PURCHASER and the CONTRACTOR or any dispute or disputes raised/pending before
any Court, Tribunal, Arbitrator or any other authority.

6.0

This Guarantee will not be discharged due to the change in the constitution of the Bank
or the CONTRACTOR (S).

7.0

The PURCHASER shall have the fullest liberty without affecting in any way the
liabilities of the Bank under this guarantee from time to time to extend the time of
performance by the CONTRACTOR. The Bank shall not be released from its liability
under these presents by any exercise of the PURCHASER of the liberty with reference to
the matter aforesaid.

8.0

We, the Bank also agree that the PURCHASER shall be entitled at his option to enforce
this bank guarantee against the Bank as a Principal Debtor in the first instance
notwithstanding any other security or guarantee that it may have in relation to the
CONTRACTORS liabilities.

74

9.0

In any case our liability under this guarantee shall not exceed Rs. .(Rupees
.only) This guarantee will be valid up to . (Scheduled date of
completion of contract) and shall be extended for such period as may be desired by
M/s on whose behalf this guarantee has been given.

10.0

The Bank further agrees that the decision of the PURCHASER as to the failure on the
part of the CONTRACTOR to fulfil the contractual obligations stipulated in the said
contract and/or to the amount payable by the bank to the PURCHASER shall be final,
conclusive and binding.

11.0

This guarantee is revocable only with the written consent of the PURCHASER.

12.0

This guarantee deed must be returned to us upon the expiration of the guarantee or after
fulfillment of the obligations specified in the guarantee.

13.0

Notwithstanding anything contained herein:

a. Our liability under this bank guarantee shall not exceed ..(in words)
b. This bank guarantee shall be valid upto . and
c. We are liable to pay the guaranteed amount or any part thereof under this bank
guarantee only and only if you serve upon us a written claim or demand on or
before..
Dated this day of .. 20
(Signature)
Name in Block Letters
Designation
Staff Code No.
(Bankers seal)
Attorney as per power of
Attorney No..
Dated:..

Witness:
1.
(Signature)
Name in Block letters
Occupation:
Address:
2.
(Signature)
Name in Block letters
Occupation:
Address:

75