BPCL
BPCL
BPCL
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CONTENTS
SECTION DETAILS
I DEFINITION OF TERMS
V PERFORMANCE OF WORK
IX VARIOUS PROFORMA
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GENERAL CONDITIONS OF CONTRACT
SECTION - I
DEFINITION OF TERMS
In the contract documents as herein defined where the context so admits, the following words and expressions will have
following meanings:
1.1 “The Owner/Company/BPCL” means the Bharat Petroleum Corporation Limited, incorporated in India having its
registered office at 4 & 6, Currimbhoy Road, Ballard Estate, Mumbai - 400 038 or their successors or assigns.
1.2 “The Contractor” means the person or the persons, firm or Company whose tender has been accepted by the
Owner and includes the Contractor’s legal representative, his successor and permitted assigns.
1.3 The “Managing Director” shall mean the Chairman and Managing Director of the Bharat Petroleum Corporation
Limited or his successor in office designated by the Owner.
1.4 The “Engineer-in-Charge” shall mean the person designated as such by the Owner and shall Include those who are
expressly authorised by the Owner to act for and on his behalf for operation of this contract.
1.5 The “Work” shall mean the works to be executed in accordance with the contract or part thereof as the case may
be and shall include extra, additional, altered or substituted works as required for purpose of the contract.
1.6 The “Permanent Work” means and includes works which will be incorporated in and form a part of the work to be
handed over to the Owner by the Contractor on completion of the contract.
1.7 The “Construction Equipment” means all appliances, Tools/Tackles and equipment of whatsoever nature for the
use in or for the execution, completion, operation or maintenance of the work unless intended to form part of the
Permanent work.
1.8 The “Site” means the areas on which the permanent works are to be executed or carried out and any other places
provided by the Owner for purpose of the contract.
1.9 The “Contract Document” means collectively the Tender Document. Designs. Drawings or Specifications, agreed
variations, if any, and such other document constituting the tender and acceptance thereof.
1.10 The “Consultant” means the consulting engineers Nominated/appointed by the Owner for this Project / job.
1.11 The “Sub-Contractor” means any person or firm or Company (other than the Contractor) to whom any part of the
work has been entrusted by the Contractor, with the written consent of the Engineer-in-Charge, and the legal
personal representatives, successors and permitted assigns of such person, firm or company.
1.12 The “Contract” shall mean the Agreement between the Owner and the Contractor for the execution of the works
including therein all contract documents.
1.13 The “Specification” shall mean the various technical specifications attached and referred to in the tender
documents. It shall also include the latest editions, including all addenda/corrigenda, of relevant Indian Standard
Specification, specifications of the other country published before entering into Contract.
1.14 The “Drawings” shall include maps, plans and tracings or prints thereof with any modifications approved in writing
by the Engineer-in-Charge and such other drawings as may, from time to time, furnished or approved in writing by
the Engineer-in-Charge.
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1.15 The “Tender” means the tender submitted by the Contractor for acceptance by the Owner.
1.16 The “Alteration Order” means an order given in writing by the Engineer-in-Charge to effect additions to or deletion
from and alterations in the works.
1.17 The “Completion Certificate” shall mean the certificate to be issued by the Engineer-in-Charge to the contractor
when the works have been completed to his satisfaction.
1.18 The “Final Certificate” in relation to a work means the certificate issued by the Engineer-in-Charge after the period
of liability is over for releasing the retention money/PBG.
1.19 The “Period of Liability” in relation to a work means the specified period during which the Contractor stands
responsible for rectifying all defects that may appear in the works.
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SECTION - II
The site location is described in the Special Conditions of Contract. The intending tenderer should inspect the site
and make himself familiar with site conditions and available facilities.
Entry into the BPCL areas is restricted depending on location/site. Only pass holders as also vehicles with special
permits are permitted in such restricted areas. Inside the premises access to various work spots is also further
regulated by permits issued for each area. Non-availability of access roads or permits for entry of vehicles/
equipment to any specific area shall in no case be the cause to condone any delay in execution of works or be the
cause for any claims or extra compensations.
The scope of work is defined in the Special Conditions of Contract and specifications. The Contractor shall provide
all necessary materials, equipments / Tools and Tackles / Supervision / labour etc. for the execution and
maintenance of the work till completion unless otherwise mentioned in these tender documents. All materials that
go with the work shall be approved by Engineer-in-Charge prior to procurement and use.
The tenderer should visit the site and acquaint himself with site conditions, availability of water, electricity,
approach roads, construction materials as per specifications, shelter for his staff, etc. since these are to be
provided/arranged by the tenderer (unless otherwise specified) at his cost.
The owner will, at his discretion and convenience based on availability for the duration of the execution of the
work, make available, land for construction of contractor’s field office, go-downs, workshop and fabrication yard
required for the execution of the contract. The contractor shall at his own cost construct all these temporary
buildings and provide suitable water supply and sanitary arrangement approved by the Engineer-in-Charge.
On completion of the works undertaken by the Contractor, he shall remove all temporary works/ shed erected by
him and have the site cleaned as directed by Engineer-in-Charge if the contractor shall fail to comply with these
requirements, the Engineer-in-charge may at the expenses of the Contractor remove such surplus and rubbish
material, dispose off the same as he deems fit and get the site cleared as aforesaid; and the contractor shall
forthwith pay the amount of all expenses so incurred and shall have no claim in respect of any such surplus
materials disposed off as aforesaid. But the Owner reserves the right to ask the Contractor any time during the
pendency of the contract to vacate the land by giving seven days notice on security reasons or on material interest
otherwise.
All temporary buildings, sheds, workshops, field stations etc. shall be constructed in conformation with the safety
and security regulations of the owner as regards location and type of structure.
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SECTION - III
3 SUBMISSION OF TENDER:
3.1 The quotation should be submitted only in the manner and the form prescribed in the Request For Quotation
(RFQ)/Tender enquiry.
3.2 Addenda/Corrigenda to this tender document if issued must be signed and submitted along with the tender
document. The tenderer should consider the Addenda/Corrigenda and should price the work based on revised
quantities when amendments for quantities are issued in addenda.
Tenders should always be placed in double sealed covers, super scribing Tender No.------------------------- Tender for
-------------------------------------- (name of job), Bharat Petroleum Corporation Limited, due for opening on------------------
The full name, postal address and telegraphic address of the tenderer shall be written on the bottom left hand
corner of the sealed cover. (This will not be applicable in the case of e-tenders) Tenders received in open condition
(priced bid) are liable to be rejected.
4 DOCUMENTS:
4.1 The tenders, as submitted shall include all documents/details asked for by BPCL in the RFQ/Tender enquiry.
Wherever signed tender documents are submitted, all signatures in the documents shall be dated, as well as all the
pages of the documents shall be initialed at the lower right hand corner and signed wherever required in the tender
papers by the tenderer or by a person holding power of attorney authorizing him to sign on behalf of the tenderer
before submission of tender. Tenders without signatures as stated above are liable to be rejected.
The tenderer should quote the rates in English both in figures as well as in words. Offers received without the rates
in figures and in words are liable for rejection. In case of discrepancy exists between the rate quoted in figures and
in words, the rates quoted in words will prevail.
All corrections and alteration in the entries of tender papers will be signed in full by the tenderer with date. No
erasures or over-writings are permissible.
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In case of priced bids containing overwriting/cuttings/erasures in the quoted rates and in case these are not
attested by the signatory of the bid, such priced bids are liable to be rejected without giving any further notice.
The tender shall contain the name, residence and place of business of person or persons making the tender and
shall be signed by the tenderer with his usual signature with company stamp. Partnership firms shall furnish the full
names of all partners in the tender. It should be signed in the partnership name by all the partners or by duly
authorized representative followed by the name and designation of the person signing with company stamp.
Tender by Company or Corporation registered under the relevant companies act, shall be signed by the authorized
representative and a power of attorney in that behalf shall accompany the tender.
4.6 Transfer of tender documents issued to one intending tenderer to another is not permissible.
5 PURCHASE PREFERENCE:
Owner reserves its right to allow Public Sector Enterprises (Central/State), purchase preference as
admissible/applicable from time to time under the existing Govt. policy. Purchase preference to a PSE shall be
decided based on the price quoted by PSE as compared to L1 Vendor at the time of evaluation of the price bid.
Owner reserves its right to allow Micro and Small Enterprises (MSEs) and MSEs owned by Scheduled Caste (SC) or
the Scheduled tribe (ST) entrepreneurs, purchase preference as admissible/applicable from time to time under the
existing Govt. policy. Purchase preference to a MSE and a MSE owned by SC/ST entrepreneurs shall be decided
based on the price quoted by the said MSEs as compared to L1 Vendor at the time of evaluation of the price bid.
The tenderer must submit/ deposit earnest money, if specified in the RFQ/Tender enquiry, failing which the tender
is liable to be rejected. The earnest money can be deposited in the form of Demand Draft or Bank Guarantee in
favour of Bharat Petroleum Corporation Limited. Earnest Money deposit (EMD) is not applicable for registered
contractors of BPCL.
NOTE: The Bank Guarantee so furnished by the tenderer shall be in the proforma prescribed by the owner. No
interest shall be paid by the Owner on the earnest money deposit by the tenderer. The earnest money of the
unsuccessful tenderer will be refunded.
Unless otherwise specified in the special conditions of contract, in the case of contractors not registered with BPCL,
the earnest money deposit (EMD), of the contractor whose tender may be accepted, will be converted to security
deposit for due performance of the contract. The “performance security deposit/retention money” vide clause 18
shall also be applicable limiting to a maximum of 10% of the contract value.
7 VALIDITY:
Tender submitted by tenderers shall remain valid for acceptance for a period of four months from the date of
opening of the tender (Technical Bid in the case of two bid). The tenderer shall not be entitled during the said
period of four months, without the consent in writing of the Owner, to revoke, or cancel his tender or vary the
tender given or any term thereof. In case of tenderer revoking or canceling his tender, varying any terms in regard
thereof without the consent of Owner in writing, appropriate penal action will be taken by BPCL as deemed fit
including putting the tenderer/contractor on ‘Holiday listing’/’Delisting’ barring the tenderer/contractor from
participating in future tenders for an appropriate period from the date of revocation/cancellation/varying the
terms. Further in the case of contractors who are not registered with BPCL, the earnest money deposited by him
will be forfeited. Once the quotation is accepted the rates quoted shall be firm till the entire work is completed.
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8 ADDENDA / CORRIGENDA:
Addenda/ Corrigenda to the tender documents may be issued prior to the date of opening of the tenders to clarify
documents or to effect modification in the design or tender terms. All addenda/corrigenda issued shall become part
of tender Document.
9.1 The right to accept the tender will rest with the Owner. The Owner, however, does not bind itself to accept the
lowest tender, and reserves to itself the authority to reject any or all the tenders received without assigning any
reason whatsoever.
9.2 The whole work may be split up between two or more contractors or accepted in part and not entirely if considered
expedient.
9.3 Tenders in which any of the particulars and prescribed informations are missing or are incomplete in any respect
and/or the prescribed conditions are not fulfilled are liable to b rejected.
9.4 Canvassing in connection with tenders is strictly prohibited and tenders submitted by the tenderer who resort to
canvassing will be liable to rejection.
9.5 Tender containing uncalled remarks or any additional conditions are liable to be rejected.
Vendors are requested to sign & return our pre-signed IP document, if applicable. This document is essential &
binding. Vendor's failure to return the IP document duly signed along with Bid Document may result in the bid not
being considered for further evaluation.
The tenderer shall visit the site and acquaint himself fully of the site and no claims whatsoever will be entertained
on the plea of ignorance or difficulties involved in execution of work or carriage of materials.
The time period allowed for carrying out the job shall be as shown in tender document. Request for revision for
time schedule after tenders are opened will not be received for consideration.
No Engineer of Gazetted rank or other Gazetted Officer, employed in Engineering or Administrative duties in an
Engineering Department of the States/Central Government or of the Owner is allowed to work as a Contractor for a
period of two years after his retirement from Government service or from the employment of the Owner without
the previous permission of the Owner. The contract, if awarded, is liable to be cancelled if either the contractor or
any of his employees is found at any time to be such a person, who had not obtained the permission of the State/
Central Government, or of the Owner as aforesaid before submission of tender, or engagement in the Contractor’s
service as the case may be.
The successful tenderer shall be required to execute an agreement in the proforma attached with tender enquiry
within a period of one month of the receipt by him of the notification of acceptance of tender. The payment will not
be processed till the time the agreement is executed.
14 FIELD MANAGEMENT:
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The field management will be the responsibility of the Engineer-in-Charge, who will be nominated by the Owner.
The Engineer-in-Charge may also authorize his representatives to perform his duties and functions.
Coordination of Work - The Engineer-in-Charge shall coordinate the work of various agencies engaged at site to
ensure minimum disruption of work carried out by different agencies. It shall be the responsibility of the contractor
to plan and execute strictly in accordance with the site instructions to avoid hindrance to the works being executed
by other agencies.
This General Conditions of Contract (GCC) will be binding for Consultancy jobs only to the extent of its applicability
to the context of consultancy jobs.
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SECTION - IV
15.1 Except if and to the extent otherwise provided by the Contract, the provisions of the General Conditions of
Contract and special conditions shall prevail over those of any other documents forming part of the contract.
Several documents forming the contract are to be taken as mutually explanatory. Should there be any discrepancy,
inconsistency, error or omission in the contract or any of the matter may be referred to Engineer-in-Charge, who
shall give his decisions and issue to the Contractor instructions directing in what manner the work is to be carried
out. The decision of the Engineer-in-Charge shall be final and conclusive and the contractor shall carry out work in
accordance with this decision.
15.2 Works shown upon the drawing but not mentioned in the specifications or described in the specification without
being shown on the drawings shall nevertheless be held to be included in the same manner as if they had been
specifically shown upon the drawings and described in the specifications.
15.3 Headings and marginal notes to the clauses of these General Conditions of Contract or to specifications or to any
other tender document are solely for the purpose of giving a concise indication and not a summary of the content
thereof, and they shall never be deemed to be part thereof or be used in the interpretation or construction thereof
of the Contract.
16.1 Special Conditions of contract shall be read in conjunction with the General Conditions of Contracts, specification
of work, Drawings and any other documents forming part of this contract wherever the context so requires.
16.2 Notwithstanding the sub-division of the documents into these separate sections and volumes every part of each
shall be deemed to be supplementary to and complementary of every other part and shall be read with and into
the contract so far as it may be practicable to do so.
16.3 Where any portion of the General Conditions of Contract is repugnant to or at variance with any provisions of the
Special Conditions of Contract then, unless a different intention appears the provisions of the Special Conditions
of Contract shall be deemed to over-ride the provision of the General Conditions of Contract and shall to the
extent of such repugnance or variations, prevail.
16.4 Wherever it is mentioned in the specifications that the Contractor shall perform certain work or provide certain
facilities, it is understood that the contractor shall do so at his own cost.
16.5 The materials, designs and workmanship shall satisfy the relevant Indian Standards, the Job specifications
contained herein and codes referred to. Where the job specifications stipulate requirements in addition to those
contained in the standard codes and specifications, these additional requirements shall also be satisfied.
The contractor in fixing rate shall for all purposes whatsoever be deemed to have himself independently obtained
all necessary information for the purpose of preparing his tender. The contractor shall be deemed to have
examined the Contract Documents, to have generally obtained his own information in all matters whatsoever that
might affect the carrying out the works at the scheduled rates and to have satisfied himself to the sufficiency to his
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tender. Any error description of quantity or omission there from shall not vitiate the contract or release the
Contractor from executing the work comprised in the contract according to drawing and specifications at the
scheduled rates. He is deemed to have known the scope, nature and magnitude of the works and the requirements
of materials and labour involved etc. and as to what all works he has to complete in accordance with the contract
documents whatever be the defects, omissions or errors that may be found in the Contract Documents. The
Contractor shall be deemed to have visited surrounding to have satisfied himself to the nature of all existing
structures, if any, and also as to the nature and the conditions of the Railways, roads, bridges and culverts means
of transport and communications, whether by land, water or air, and as to possible interruptions thereto and the
access to and regress from the site, to have made enquiries, examined and satisfied himself as to the sites for
obtaining sand, stones, bricks and other materials, the sites for disposal of surplus materials the available
accommodation as to whatever required, depots and such other building as may be necessary for executing and
completing the works, to have made local independent enquiries as to the sub-soil water and variations thereof,
storms, prevailing winds, climate conditions and all other similar matters affecting these works. He is deemed to
have acquainted himself as to his liability for payment of Government taxes, customs duty and other charges.
Any neglect or failure on the part of the Contractor in obtaining necessary and reliable information upon the
foregoing or any other matters affecting the contract shall not relieve him from any risk or liabilities or the entire
responsibility from completion of the works at the scheduled rates and time in strict accordance with the contract
documents.
No verbal agreement or inference from conversation with any officer or employee of the owner either before or
after the execution of the contract agreement shall in any way affect or modify any of the terms or obligations
herein contained.
18.1 To ensure performance of the contract and due discharge of the contractual obligations, the successful contractor
will have to provide security deposit of 10% of the contract value unless otherwise specified in the Special
Conditions of Contract.
This Security deposit may be furnished in the form of an Account payee Demand Draft payable to BPCL or Bank
Guarantee in the prescribed format. The contractor shall have the option to adjust any Earnest Money Deposit-
(EMD) if paid by demand draft towards security deposit if he so desires or otherwise if submitted by way of bank
guarantee the validity of the same to be extended suitably as advised by BPCL.
In the case of security deposit submitted in the form of Bank guarantee, the Bank Guarantee shall be valid and
remain in force till the contractual completion period (expiry of the defect liability period- refer clause-74, if
applicable) and with a claim period of six months thereafter. The Bank Guarantee shall be in the form prescribed.
In case the successful contractor is not furnishing the performance security deposit as referred above on award of
the job, the same shall be deducted from each running account bills at the rate of 10% of bill value till overall
security deposit of 10% as mentioned above is collected.
The security deposit will be retained till the successful completion of the work and thereafter till the expiry of the
defect liability period (refer clause-74), if applicable. This retention money/Bank guarantee held shall be released
after the expiry of the defect liability period provided that any defects appearing during that period are corrected
by the contractor and subject to Clause 18.2 below.
In the case of value/rate/quantity contracts, the security deposit shall be based on individual release orders issued.
In case of LSTK (Lump Sum Turnkey Contracts) / EPC: PBG @ 10% within 15 days of notification of award. In case of
Annual Rate Contracts (ARCs): Submission of PBG @ 10% of total Contract Value (TCV) or submission of initial
security deposit @ 2.5% of TCV within 15 days of notification of award. In cases where only 2.5% of TCV has been
submitted, 7.5% of individual release order shall be subsequently deducted from RA bills.
Vendors/contractors shall be asked to submit the SD within 15 days from the date of notification of award and in
the event of delay in submission of SD, the contract can be terminated. However, if termination of contract is not
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in the interest of the work/ BPCL, an additional time up to 30 days can be allowed for submission of SD with the
approval of the concerned GM/CGM, beyond which the contract may be terminated with subsequent actions
following termination as per tender/procedure.
18.2 If the contractor/ sub-contractor or their employees shall break, deface or destroy any property belonging to the
Owner or other agency during the execution of the contract, the same shall be made good by the Contractor at his
own expenses and in default thereof, the Engineer-in-Charge may cause the same to be made good by other
agencies and recover expenses from the contractor (for which the certificate of the Engineer-in-Charge shall be
final). These expenses can be recovered from the security deposit/retention money if recovery from other sources
is not possible.
18.3 All compensation or other sums of money payable by the contractor to the Owner under terms of this contract
may be deducted from his security deposit/retention money or from any sums which may be or may become due
to the contractor by the Owner on any account whatsoever and in the event of his security deposit/retention
money being reduced by reasons of any such deductions. The contractor shall within ten days thereafter make
good any sum or sums, which may have been deducted from his security Deposit/retention money. No interest
shall be payable by the Owner from sum deposited as security deposit/retention money.
18.4 The security deposit shall be held by the Owner, as security for the due performance of the Contractor’s
obligations under the contract, provided that nothing herein stated shall make it incumbent upon the Owner to
utilize the security deposit/retention money in preference to any other remedy which the Owner may have, nor
shall be construed as confining the claims of the Owner against the contractor to the quantum of the Security
Deposit/retention money.
18.5 The Bank guarantee if submitted shall be from any Indian scheduled bank or an international bank of repute having
a branch in India or a corresponding banking relationship with an Indian scheduled bank. The security deposit/
retention money shall be in Indian Rupee in the case of domestic bidders and in US Dollars in the case of foreign
bidders.
19 TIME OF PERFORMANCE:
19.1 The work covered by this contract shall be commenced as detailed in the purchase order or as per the instructions
of the Engineer in charge and be completed in stages on or before the dates as mentioned in the time schedule of
completion of work. The contractor should bear in mind that time is the essence of this agreement unless such
time be extended pursuant to the provision of clause No. 21. Request for revision of Completion time after tenders
are opened will not receive consideration.
19.2 Time Schedule of Completion: The general time schedule of completion is given in the tender document.
Contractor should prepare a detailed monthly and weekly execution programme, jointly with the Engineer-in-
Charge within two weeks of receipt of Letter of Intent or acceptance of tender. The work shall be executed strictly
as per the time schedule given in this document. The period of completion given includes the time required for
testing, rectifications, if any, retesting and completion in all respects to the entire satisfaction of the Engineer-in-
Charge.
20 FORCE MAJEURE
a) Act of terrorism;
b) Riot, war, invasion, act of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion,
revolution, insurrection of military or usurped power;
c) Ionizing radiation or contamination, radio activity from any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel, radioactive toxic explosive or other hazardous properties of any explosive
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assembly or nuclear component;
d) epidemics, earthquakes, flood, fire, hurricanes, typhoons or other physical natural disaster, but excluding
weather conditions regardless of severity; and
e) freight embargoes, strikes at national or state-wide level or industrial disputes at a national or state-wide level
in any country where Works are performed, and which affect an essential portion of the Works but excluding
any industrial dispute which is specific to the performance of the Works or the Contract.
For the avoidance of doubt, inclement weather, third party breach, delay in supply of materials (other than
due to a nationwide transporters’ strike) or commercial hardship shall not constitute a Force Majeure event.
Contractor shall notify within [10(ten)] days of becoming aware of or the date it ought to have become aware
of the occurrence of an event of Force Majeure giving full particulars of the event of Force Majeure and the
reasons for the event of Force Majeure preventing the Affected Party from, or delaying the Affected Party in
performing its obligations under the Contract.
If an event of Force Majeure occurs and its effect continues for a period of 180 (one hundred eighty days) or
more in a continuous period of 365 (three hundred sixty five) days after notice has been given under this
clause, either Party may terminate the Contract by issuing a written notice of 30 (thirty) days to the other
Party.
The Contract Price attributable to the Works performed as at the date of the commencement of the relevant
event of Force Majeure.
a) Any costs, losses, expenses, damages or the payment of any part of the Contract Price during an event of
Force Majeure; and
b) Any delay costs in any way incurred by the Contractor due to an event of Force Majeure. Time extension
for such cases will be worked out appropriately.
21 EXTENSION OF TIME:
If the contractor shall desire an extension of the time for completion of the work on the grounds of his having
been unavoidably hindered in its execution or on any other grounds, he shall apply in writing to the Engineer-in-
Charge within two weeks of the date of hindrance on account of which he desires such extension as aforesaid,
and the Engineer-in-Charge shall if in his opinion (which shall be final), reasonable grounds have been shown
thereof, authorize such extension of time as may in his opinion be necessary or proper.
In the event of extension of Time of the contract, if granted, the contractor shall be required to suitably extend
the period of Bank Guarantee if submitted, towards security Deposit/ retention money suitably.
22.1 Time is the essence of the contract. In case the contractor fails to complete the whole work within the stipulated
period, he shall be liable to pay liquidated damages of 0.5% of the value of contract per week and or part thereof
of the delay subject to a maximum of 5% of the value of the contract. The parties agree that this is a genuine
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pre- estimate of the loss/damage which will be suffered by the owner on account of delay on the part of the
contractor and the said amount will be payable on demand without there being any proof of the actual loss or
damages having been caused by such delay/breach. The owner shall be at liberty to adjust or deduct the said
amount of liquidated damages from any amount due to the contractor including Security Deposit.
22.2 The owner shall be at liberty to deduct or retain from any amount payable to the contractor periodically, the
proportionate or full amount of liquidated damages as the case may be for the delay periodically caused by the
contractor.
All sums payable by way of compensation under any of the conditions shall be considered as reasonable
compensation without reference to the actual loss or damage, which shall have been sustained by the Owner.
24 TERMINATION/OFFLOADING:
24.1 The contractor fully understands that timely completion of the work as per the schedule is of paramount
necessity as otherwise it would lead to adversely affecting the schedules of other works/ project with resultant
financial and other losses to the Company/ owner. In view of this, the contractor unconditionally agrees and
binds himself to be liable for all the consequences for non-completion of the work within the stipulated time.
24.2 In case a situation is brought about by the contractor warranting termination/ off-loading of the whole or any
part of the work for any reason whatsoever, the Company/owner shall have the liberty and right to entrust/
engage/ award the work so terminated/off loaded at the risk and cost of the contractor to any other
agency/contractor by adopting any mode of inviting tenders, i.e. open/limited/single party/negotiation basis etc.
in order to ensure completion of the work as per the schedule or at the quickest possible time.
Whenever any claim against the Contractor for the payment of a sum of money arises out of or under the
contract, the Owner shall be entitled to recover such sum by appropriating in part or whole, security deposit of
the contractor, forming whole or part of such security being insufficient or if no security has been taken from the
Contractor then the balance or the total sum recoverable, as the case may be, shall be deducted from any sum
then due or which at any time thereafter may become due to the Contractor. The contractor shall pay to the
owner on demand any balance remaining due.
In any case in which, under any clause or clauses of this contract, the contractor shall have forfeited the whole of
his security deposit (whether paid in one sum or deducted by installment) or have committed a breach of any of
the terms contained in this contract the owner shall have power to adopt any of the following courses as he may
deem best suited to his interest.
a) To rescind the contract (of which rescission notice in writing to the contractor under the hand of the owner shall
be conclusive evidence) in which case the security deposit of the contractor shall stand forfeited and be
absolutely at the disposal of the Owner.
b) To employ labour paid by the owner and to supply materials to carry out the work any part of the work, debiting
contractor with the labour cost of tools and plants and equipment charges, the cost of the materials for which a
certificate of the Engineer-in-Charge shall be final and conclusive against the Contractor and 10% of costs as
above to cover all departmental charges and crediting him with the value of the work done in all respects in the
manner and at the same rates as if it had been carried out by the Contractor under the term of his contract. The
certificate of Engineer-in-Charge as to the value of the work done shall be final and conclusive against the
contractor.
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c) To measure up the work of the contractor and to take such part thereof as shall be unexecuted out of his hand
to give it to another contractor to complete in which case any expenses which may be incurred in excess of the
sum which would have been paid to the original contractor, if the whole work had been executed by him (of the
amount of which excess, the certificate in writing of the Engineer-in-Charge shall be final and conclusive) shall be
borne and paid by the original contractor and may be deducted from any money due to him by the Owner under
the contract or otherwise or from his security deposit or from the proceeds of sale thereof, of a sufficient part
thereof.
In the event of any of the above course being adopted by the Owner, the contractor shall have no claim to
compensation for any loss sustained by him by reason of his having purchased or procured any materials or
entered into any agreements or made any advances on account of or with a view to the execution of the work of
the performance of the contract. In case the Contractor shall not be entitled to recover or be paid any sum for
any work actually performed under this contract unless the Engineer-in- Charge will certify in writing the
performance of such work and the value payable in respect thereof and he shall only be entitled to be paid the
value so certified.
27 CONTRACTOR REMAINS LIABLE TO PAY COMPENSATION IF ACTION NOT TAKEN UNDER CLAUSE 26:
In any case in which any of the powers conferred upon the owner by clause 26 thereof shall have become
exercisable and the same had not been exercised, the non exercise thereof shall not constitute a waiver of any
of the conditions hereof and such powers shall notwithstanding be exercised in the event of any further case of
default by the contractor for which any clause of hereof he is declared liable to pay compensation amounting to
the whole of his security deposit and the liability of the contractor for past and future compensation shall
remain unaffected. In the event of the Owner putting in force the power under sub-clause (a), (b) or (c) vested in
him under the proceeding clause he may, if he so desires takes possession of all or any tools and plants materials
and stores in or upon the works or the site thereof belonging to the contractor or procured by him and intended
to be used for the execution of the work or any part thereof paying or allowing for the same in account at the
contract rates or in case of these not being applicable at current market rates to be certified by the Engineer-in-
Charge whose certificate thereof shall be final otherwise the Engineer-in-Charge may give notice in writing to the
contractor or his clerk of the works, supervisor or other authorized agent, requiring him to remove such tools,
plant, materials or stores from the premises (within a time to be specified in such notice) and in the event of the
contractor failing to comply with any such requisition, the Engineer-in-Charge may remove them at the
contractors expense or sell them by auction or private sale on account of the contractor and at his risk in, all
respects without any further notice as to the date, time or place of sale and the certificate of the Engineer-in-
Charge as to the expense of any such removal and the amount of proceeds and any expenses of any such sale
shall be final and conclusive against the contractor.
If at any time from the commencement of the work the owner shall for any reasons whatsoever, not require the
whole or part thereof as specified in the tender to be carried out, the Engineer-in-Charge shall give notice in
writing of the fact to the contractor, who shall have no claim to any payment or compensation whatsoever on
account of any profit or advantage which he might have derived from the execution of the work in full, but
which he did not derive in consequence of the full amount of the work not having been carried out, neither shall
he have any claim for compensation by reason of any alterations having been made in the original specifications,
drawings, designs and instructions which shall involve any curtailment of the work as originally contemplated.
29 CHANGES IN CONSTITUTION:
Where the contractor is a partnership firm, the prior approval, in writing, of the Owner shall be obtained before
any change is made in the constitution of the firm, where the contractor is an individual or a Hindu undivided
family business concern, such approval as aforesaid shall likewise be obtained before sub-contractor enters into
any agreement with other parties, where under the reconstituted firm would have the right to carry out the
work hereby undertaken by the contractor. In either case if prior approval as aforesaid is not obtained, the
contract shall be deemed to have been allotted in contravention of clauses 35 hereof and the same action may
be taken and, the same consequence shall ensure as provided in the said clause.
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30 IF THE CONTRACTOR DIES:
Without prejudice to any of the rights or remedies under his contract, if the contractor dies, the Owner shall
have the option of terminating the contract without compensation to the contractor.
No director or official or employee of the Owner shall in any way be personally bound or liable for the acts or
obligations of the Owner under the contract or answerable for any default or omission in the observance or
performance of any of the acts, matters or things which are herein contained.
The contractor shall not be entitled to any increase on the item rates of the contract or any other right or claim
whatsoever by reason of representation, explanation or statement or alleged representation, promise or
guarantees given or alleged to have been given to him by any person.
The contractor shall provide and maintain an office at the site, if space provided by the owner, for the
accommodation of his agent and staff and such office shall be open at all reasonable hours to receive
instruction, notices, or other communications.
34.1 The contractor, on or after award of the work shall name and depute a qualified personnel having sufficient
experience in carrying out work of similar nature to whom the equipments materials, if any, shall be issued and
instructions for works given. The contractor shall also provide to the satisfaction of the Engineer-in-Charge
sufficient and qualified staff to supervise the execution of the-works, competent sub-agents, supervisor and
leading hands including those specially qualified by previous experience to supervise the type of works
comprised in the contract in such manner as will ensure work of the best quality, expeditious working.
Whenever in the opinion of the Engineer-in-Charge, additional properly qualified supervision staff is considered
necessary, they shall be employed by the contractor without additional charges on account thereof. The
Contractor shall ensure to the satisfaction of the Engineer-in- Charge that sub-contractors, if any shall provide
competent and efficient supervision over the work entrusted to them.
34.2 If and whenever any of the Contractor’s or sub-contractor’s agents, sub-agents, assistants supervisor or other
employees shall in the opinion of Engineer-in-Charge be guilty of any misconduct or be incompetent or
insufficiently qualified or negligent in the performance of their duties or that in the opinion of the owner or
Engineer-in-Charge, it is undesirable for administrative or any other reason for such person or persons to be
employed in the works, the contractor, if so directed by the Engineer-in- Charge, shall at once remove such
person or persons from employment thereon. Any person or persons so removed from the works shall not again
be employed in connection with the works without the written permission of the Engineer-in-Charge. Any
person so removed from the works shall be immediately replaced at the expense of the contractor by a qualified
and competent substitute. Should the contractor be requested to repatriate any person removed from the
works he shall do so and shall bear all costs in connection herewith.
34.3 The contractor shall be responsible for the proper behavior of all the staff, supervisor, workmen and others and
shall exercise a proper degree of control over them and in particular, and without prejudice to the said
generality, the contractor shall be bound to prohibit and prevent any employees from trespassing or acting in
any way detrimental or prejudicial to the interest of the community or of the properties or occupiers of land and
properties in the neighborhood and in the event of such employee so trespassing, the contractor shall be
responsible therefore and relieve the Owner of all consequent claims or actions for damages or injury or any
other grounds whatsoever. The decision of the Engineer-in-Charge upon any matter arising under this clause
shall be final. Contractor shall ensure that none of their employees are ever engaged in any anti-national
activities.
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34.4 All contractors’ personnel entering upon the Owner’s premises shall be properly identified by badges issued by
owner which must be worn all times on Owner’s premises.
35 SUB-LETTING OF WORK:
Sub letting of contracts shall not be generally permitted. However owner may permit sub letting of work on
specific cases subject to the following:
a) Neither part of the contract nor any share of interest there shall in any manner or degree be transferred
assigned sublet by the contractor directly or indirectly to any firm or corporation whosoever except as
provided for in the succeeding sub-clause, without the consent in writing of the Owner.
b) Sub Contractors for Temporary Works Etc.:- The Owner may give written consent to sub-contract for
execution of any part of the works at the site, being entered into by the contractor provided each individual
sub-contract is submitted to the Engineer-in-Charge before being entered into and is approved by him.
c) List of Sub-Contractors to be supplied: - At the commencement of every month the contractor shall furnish
to the Engineer-in-Charge list of all sub-contractors or firms engaged by the contractor and working at the
site during the previous month with particulars of the general nature of the sub-contract or works.
d) Contractor’s Liability Not Limited By Sub-Contractors:- Notwithstanding any sub-letting with such approval
as aforesaid and notwithstanding that the Engineer-in-Charge shall have received copies of any sub-
contracts, the contractor shall be and shall remain solely responsible for the quality and proper and
expeditious execution of the works and the performance of all the conditions of the contract in all respects
as if such sub-letting or sub-contracting had not taken place and as if such work had been done directly by
the Contractor.
e) Owner may Terminate Sub-Contracts:- If any sub-contractor engaged upon the works at the site executes
any work which in the opinion of the Engineer-in-Charge is not in accordance with the Contract documents,
the owner may by written notice to the contractor request him to terminate such sub-contract and the
contractor upon the receipt of such notice shall terminate such sub contract and the latter shall forthwith
leave the works, failing which the owner shall have right to remove such sub-contractors from the Site.
f) No Remedy For Action Taken Under This Clause:- No action taken by the owner under the clause shall
relieve the contractor of any of his liabilities under the contract or give rise to any right to compensation,
extension of time or otherwise failing which, the owner shall have right to remove such sub-contractors
from the Site.
36 POWER OF ENTRY:
If the contractor shall not commence the work in the manner previously described in the contract document or if
he shall, at any time in the opinion of the Engineer-in-Charge.
a) Fail to carry out the works in conformity with the contract documents, or
b) Fail to carry out the works in accordance with the time schedule, or
c) Substantially suspend work or the works for a period of Fourteen days without authority from the Engineer-
in-Charge, or
d) Fail to carryout and execute the works to the satisfactions of the Engineer-in-Charge, or
e) Fail to supply sufficient or suitable constructional equipments, temporary works, labour materials or things,
or
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f) Commit or suffer or permit any other breach of any of the provisions of the contract on his part to be
performed or observed or persist in any of the above mentioned breaches of the contract for the fourteen
days, after notice in writing shall have been given to the Contractor by the Engineer-in-Charge requiring
such breach to be remedied, or
h) During the continuance of the contract, become bankrupt, make any arrangement or composition with his
creditors, or permit any execution to be levied or go into liquidation whether compulsory or voluntary not
being merely a voluntary liquidation for the purpose of amalgamation or reconstruction.
Then in any such case, the Owner shall have the power to enter upon the works and take possession thereof and
of the materials, temporary works, constructional equipment, and stock thereon, and to revoke the contractor’s
license to use the same, and to complete the works, by his agents, other contractor or workmen, or to re-let the
same upon any terms and to such other person firm or corporation as the Owner in his absolute discretion may
think proper to employ and for the purpose aforesaid to use or authorize the use of any materials, temporary
works constructional equipment, and stock as aforesaid without making payment or allowances to the
contractor for the said materials other than such as may be certified in writing by the Engineer-in-Charge to be
reasonable, and without making any payment or allowance to the contractor for the use of the temporary said
works, constructional equipments and stock or being liable for any loss of damage thereto, and if the Owner
shall by reason of his taking possession of the works or of the works being completed by other contractors (due
account being taken of any such extra work or works which may be omitted) then the amount of such excess as
certified by the Engineer-in- Charge shall be deducted from any money which may be due for work done by the
contractor under the contract and not paid for. Any deficiency shall forthwith be made good and paid to the
Owner by the contractor and the Owner shall have power to sell in such manner and for such price as he may
think fit all or any of the constructional equipment, materials etc. belonging to and to recoup and retain the said
deficiency or any part thereof out of the proceeds of the sale.
Without repugnance to any other condition, it shall be the responsibility of the contractor executing the work of
civil construction, to work in close co-operation and co-ordinate the works with other contractors or their
authorized representatives and the contractor will put up a joint scheme, showing the arrangements, with other
contractors / agencies for carrying his portion of work to the Engineer-in-Charge, and get the approval. The
contractor before finally submitting the schemes to the Engineer-in-Charge shall have the written agreement of
the other agencies. The Engineer-in-Charge before communicating his approval of the scheme, with any required
modifications shall get the final agreement of all the agencies, which shall be binding. No claim shall be
entertained on account of the above.
The contractor shall conform in all respects with the provisions of any statutory regulations, ordinances or by
laws of any local or duly constituted authorities or public bodies which may be applicable from time to time to
the works or any temporary works. The contractor shall keep the Owner Indemnified against all penalties and
liabilities of every kind arising out of non-adherence to such statutes ordinances, laws, rules, regulations, etc.
The contractor shall have to execute the work in such place and condition where other agencies might also be
engaged for other works such as site grading, filling and leveling, electrical and mechanical engineering works
etc. No claim shall be entertained to works being executed in the above circumstances.
39 NOTICES:
Any notice hereunder may be served on the contractor or his duly authorized representative at the job site or
may be served by registered mail direct to the address furnished by the Contractor. Proof of issue of any such
notice could be conclusive of the contractor having been duly informed of all contents therein.
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40 RIGHTS OF VARIOUS INTERESTS:
a) The Owner reserves the right to distribute the work between more than one contractor. The contractor
shall co- operate and afford other contractors reasonable opportunity for access to the works for the
carriage and storage of materials and execution of their works.
b) Whenever the work is being done by any department of the Owner or by other contractors employed by the
Owner is contingent upon work covered by the contract, the respective rights of the various interests
involved shall be determined by the Engineer-in-Charge to secure the completion of the various portions of
the work in general harmony.
a) Owner shall, at any time be entitled to determine and terminate the contract, if in the opinion of the Owner
the cessation of the work becomes necessary owing to paucity of funds or for any other cause whatsoever,
in which case, the cost of approved materials at the site at current market rates as verified and approved by
Engineer-in- Charge and of the value of the work done to date by the contractor shall be paid for in full at
the rates specified in the contract. A notice in writing from the Owner to the contractor of such
determination and termination and the reason thereof, shall be the conclusive proof of the fact that the
contract has been so determined and terminated by the Owner.
b) Should the contract be determined under sub-clause (i) of this clause and the contractor claims payments to
compensate expenditure incurred by him in the expectation of completing the whole of the work, the
Owner shall consider and admit such claim as are deemed fair and reasonable and are supported by
vouchers to the satisfaction of the Engineer-in-Charge. The Owner’s decision on the necessity and propriety
of any such expenditure shall be final and conclusive and binding on the contractor.
BPCL shall, in addition to any other right enabling it to terminate the contract, have the right to terminate the
contract at any time by giving prior written notice of at least 14 days to the contractor. Such termination shall be
without prejudice to the rights of the parties that have accrued on or before the date of termination of the
contract.
If the contract is terminated under this provision, the contractor is entitled to be compensated as under:-
(a) the contract price attributable to the works performed as at the date of termination
And
(b) the reasonable costs incurred by the contractor for termination of subcontractors or the repatriation of the
contractors’ and subcontractors’ employees
Less
The aggregate of all previous payments allocated to the works.
Any sums due to BPCL from the contractor accruing prior to the date of termination will be deducted from the
amount to be paid to the contractor under the contract.
If, as a result of any such deductions, there is a negative amount payable to the contractor, then the contractor
must pay an amount equal to such negative sum to BPCL within 15 days of BPCL intimating the contractor.
43.1 The contractor, if licensed under any patent covering equipment, machinery, materials or compositions of
matter to be used or supplied or methods and process to be practiced or employed in the performance of this
contract, agrees to pay all royalties and license fees which may be due with respect thereto. If any equipment,
machinery, materials or composition matters, to be used or supplied or methods and process to be practiced or
employed in the performance of this contract, is covered by a patent under which contractor is not licensed then
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the contractor before supplying or using the equipment, machinery, materials, compositions method or
processes shall obtain such licenses, and pay such royalties and license fees as may be necessary for
performance of the contract. In the event, the contractor fails to pay any such royalties or obtain any such
license, any suit for infringement of such patents which is brought against the contractor or the Owner as a
result of such failure will be defended by the contractor at his own expenses and the contractor will pay any
damages and costs awarded in such suit. The contractor shall promptly notify the owner if the contractor has
acquired knowledge of any patent under which a suit for infringement could be reasonably brought because of
the use by the Owner of any equipment, machinery, materials, and process methods to be supplied hereunder.
The contractor agrees to and does hereby grant to Owner, together with the right to extend the same to any of
the subsidiaries of the Owner as irrevocable, royalty- free license to use in any country, any invention made by
the contractor or his employee in or as a result of the performance of the work under the contract.
The Owner shall indemnify and save harmless the contractor from any loss on account of claims on contractor
for the contributory infringement of patent rights arising out and based upon the claim that the use by the
Owner of the process included in the design prepared by the Owner and used in the operation of the plant
infringes on any patent right with respect to any sub-contract entered into by contractor pursuant to the
provisions of sub-contractor an undertaking to provide the Owner with the same patent protection that
contractor is required to provide under the provisions of this clause.
43.2 All drawings, blue prints, tracings, reproducible, models, plans, specification and copies thereof, furnished by the
Owner as well as drawings, tracings, reproducible, plans specifications, design, calculations etc. prepared by the
contractor for the purpose of execution of works covered in or connected with this contract shall be the
property of Owner and shall not be used for any other work but are to be delivered to the Owner at the
completion of the contract.
43.3 Where so desired by Engineer-in-Charge, the contractor agrees to respect the secrecy of any document,
drawings etc. issued to him for the execution of this contract, and restrict access to such documents, drawing
etc. to the minimum and further, the contractor agrees to execute an individual SECRECY agreement from each
or any person employed by contractor having access to such documents, drawings and to any other agency or
individual, without the written approval by Engineer-in-Charge.
44 LIENS:
44.1 If, at any time, there should be evidence or any lien or claim for which the Owner might have become liable and
which is chargeable to the contractor, the Owner shall have the right to retain out of any payment then due or
thereafter to become due an amount sufficient to completely indemnify the owner against such lien or claim
and if such lien or claim be valid the Owner may pay and discharge the same and deduct the amount so paid
from any money which may be or may become due and payable to the Contractor. If any lien or claim remain
unsettled after all payments are made, the contractor shall refund or pay to the Owner all moneys that the latter
may be compelled to pay in discharging such lien or claim including all costs and reasonable expenses.
44.2 Contractor will not disclose details of the work to any person or persons except those engaged in its
performance, and only to the extent required for the particular portion of the work being done.
Contractor will not give any items concerning details of the work to the press or a news disseminating agency
without prior written approval from Engineer-in-Charge. Contractor shall not take any pictures on site without
written approval of Engineer-in-Charge
45 OPERATION OF CONTRACT:
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SECTION - V
PERFORMANCE OF WORK
46 EXECUTION OF WORKS:
46.1 All the works shall be executed in strict conformity with the provisions of the contract documents and with such
explanatory detailed drawings, specifications, and instructions as may be furnished from time to time to the
contractor by the Engineer-in-Charge whether mentioned in the contract or not. The contractor shall be
responsible for ensuring that works throughout are executed in the most substantial, proper and workman like
manner with the quality of material and workmanship in strict accordance with the specifications following all
safety requirements of BPCL and as stipulated in work permits as per the directions and to the entire satisfaction
of the Engineer-in- Charge.
46.2 Wherever it is mentioned in the specifications that the Contractor shall perform certain work or provide certain
facilities/materials, it is understood that the contractor shall do, so at his cost unless otherwise specified.
46.3 The materials, design and workmanship shall satisfy the relevant Indian Standards, the Job specification
contained herein and codes referred to. Where the job specification stipulate requirements in addition to those
contained in the standards codes and specifications, these additional requirements shall also be satisfied.
47.1 The coordination and inspection of the day-to-day work under the contract shall be the responsibility of the
Engineer-in-Charge. The written instructions regarding any particular job will be normally be passed by the
Engineer-in-Charge or his authorized representative. A work order book / logbook will be maintained by the
Contractor for each job in which the aforesaid written instructions will be entered. These will be signed by the
contractor or his authorized representative by way of acknowledgment within 12 hours. The none maintaining of
the order book or none signing by the contractor shall not preclude the contractor from complying with the
instructions.
48.1 The completion of the work may entail working in the monsoon also. The contractor must maintain a minimum
labour force as may be required for the job and plan and execute the construction and erection according to the
prescribed schedule. No extra rate will be considered for such work in monsoon.
48.2 During monsoon and other period, it shall be the responsibility of the contractor to keep the construction work
site free from water at his own cost.
For carrying out work on Sundays and Holidays if needed, the contractor will approach the Engineer-in-Charge or
his representative at least two days in advance and obtain permission in writing. No special compensation on
this account will be payable.
The safety regulations to be complied with, by the contractor will also be provided along with the tender. No idle
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time wages or compensation for temporary stoppage of work or restrictions would be paid, and the rate quoted
for the various items of work should cover the cost of all such contingencies and eventualities. Substantial
structures and utilities exist both above ground and underground, adjacent to the work site. (The construction
activity gets restrained by the existence of such structures and utilities). Special care is necessary in
transportation, storage, working on equipments and other construction activities to protect the existing features
and prevent damage to any facility. Necessary protective structures barricades etc. have to be erected at various
places as directed by Engineer-in-Charge. No extra payment of such protective works will be made unless
specially provided in the tender.
50.2 The working time or the time of work is 48 hours per week normally. Overtime work is permitted in cases of
need and the Owner will not compensate the same. Shift working at 2 or 3 shifts per day may become necessary
and the contractor should take this aspect into consideration for formulating his rates for quotation. No extra
claims will be entertained by the Owner on this account.
50.3 The contractor must arrange for the placement of workers in such a way that the delayed completing of the
work or any part thereof for any reasons whatsoever will not affect their proper employment. The Owner will
not entertain any claim for idle time payment whatsoever.
50.4 The contractor shall submit to the Owner reports at regular intervals regarding the state and progress of work.
The details and Performa of the report will mutually be agreed after the award of contract.
51.1 Where drawings are attached with tender, these shall be for the general guidance of the contractor to enable
him to visualize the type of work contemplated and scope of work involved. The contractor will be deemed to
have studied the drawings and formed an idea about the work involved.
51.2 Detailed working drawings on the basis of which actual execution of the work is to proceed will be furnished
from time to time during the progress of the work. The contractor shall be deemed to have gone through the
drawings supplied to him thoroughly and carefully and in conjunction with all other connected drawings and
bring to the notice of the Engineer-in-Charge, discrepancies, if any, therein before actually carrying out the work.
51.3 Copies of all detailed working drawings relating to the works shall be kept at the contractor’s office of the site
and shall be made available to the Engineer-in-Charge at any time during the contract. The drawings and other
documents issued by the Owner shall be returned to the Owner on completion of the works. Reference is also
invited to clause 43.2 and 43.3 above regarding drawings and other documents.
52.1 Where drawings/data are to be furnished by the contractor, they shall be as enumerated in the special
conditions of contract, and shall be furnished within the specified time.
52.2 Where approval of drawings before manufacture / construction / fabrication has been specified, it shall be
contractor’s responsibility to have these drawings prepared as per the directions of Engineer-in-Charge and got
approved before proceeding with manufacture construction / fabrication, as the case may be. Any changes that
may have become necessary in these drawings during the execution of the work shall have to be carried out by
the contractor to the satisfaction of Engineer-in-Charge at no extra cost. All final drawings shall bear the
certification stamps duly signed by both the contractor and the Engineer-in-Charge.
52.3 A period of 3 weeks from the date of receipt shall be required normally for approval of drawings by the
Engineer-in- Charge.
53.1 The Engineer-in-Charge shall furnish the contractor with only the four corners of the work site and a level bench
mark and the contractor shall set out the works and shall provide efficient staff for the purpose and shall be
23
solely responsible for the accuracy of such setting out.
53.2 The contractor shall provide, fix and be responsible for the maintenance of all stacks, templates, level marks,
profiles and other similar things and shall take all necessary precaution to prevent their removal or disturbance
and shall be responsible for the consequence of such removal or disturbance should the same take place and for
their efficient and timely reinstatement. The contractor shall also be responsible for the maintenance of all
existing survey marks, boundary marks, distance marks and centre line marks, either existing or supplied and
fixed by the contractor. The, work shall be set out to the satisfaction of the Engineer-in-Charge. The approval
thereof or joining in setting out the work shall not relieve the contractor of any of his responsibilities.
53.3 Before beginning the works, the contractor shall at his own cost, provide all necessary reference and level posts,
pegs, bamboos, flags, ranging rods, strings and other materials for proper layout of the work in accordance with
the scheme, for bearing marks acceptable to the Engineer-in-Charge. The centre, longitudinal or face lines and
cross lines shall be marked by means of small masonry pillars. Each pillar shall have distinct marks at the centre
to enable theodolite to be set over it. No work shall be started until all these points are checked and approved
by the Engineer-in-Charge in writing but such approval shall not relieve the contractor of any of his
responsibilities. The contractor shall also provide all labour, material and other facilities, as necessary, for the
proper checking of layout and inspection of the points during construction.
53.4 Pillars bearing geodetic marks located at the site of work under construction should be protected and fenced by
the contractor.
53.5 On completion of works, the contractor must submit the geodetic documents according to which the work was
carried out.
The contractor shall be entirely and exclusively responsible for the horizontal and vertical alignment, the levels
and correctness of every part of the work and shall rectify effectually any errors or imperfections therein. Such
rectifications shall be carried out by the contractor, at his own cost, when instructions are issued to that effect
by the Engineer-in-Charge.
55.1 The contractor shall procure and provide the whole of the materials required for construction including tools,
tackles, construction plant and equipment for the completion and maintenance of the works except the
materials which will be issued by Owner and shall make his own arrangement for procuring such materials and
for the transport thereof. The materials procured by the contractor shall be BPCL approved/specified quality.
55.2 All materials procured should meet the specifications given in the tender document. The Engineer-in-Charge
may, at his discretion, ask for samples and test certificates for any batch of any material procured. Before
procuring, the contractor should get the approval of Engineer-in-Charge for any material to be used for the
works.
55.3 Manufacturer’s certificate shall be submitted for all materials supplied by the contractor. If, however, in the
opinion of the Engineer-in-Charge any tests are required to be conducted on the materials supplied by the
contractor, these will be arranged by the contractor promptly at his own cost.
56.1 If the specifications of the work provides for the use of any materials of special description to be supplied from
the Owner’s stores, price for such material to be charged therefore as herein after mentioned being so far as
practicable for the convenience of the contractor but not so as in any way to control the meaning or effect of the
contract. The contractor shall be bound to purchase and shall be supplied such materials as are from time to
time required to be used by him for the purpose of the contract only. The sums due from the contractor for the
value of the actual materials supplied by the Owner will be recovered from the running account bill on the basis
24
of the actual consumption of materials in the work covered and for which the running account bill has been
prepared. After the completion of the works, however, the contractor has to account for the full quantity of
materials supplied to him as per relevant clauses in this document.
56.2 The value of the materials as may be supplied to the contractor by the Owner will be debited to the contractor’s
account at the rates shown in the schedule of chargeable materials and if they are not entered in the schedule,
they will be debited at cost price, which for the purpose of the contract shall include the cost of carriage and all
other expenses whatsoever such as normal storage supervision charges which shall have been incurred in
obtaining the same at the Owner’s stores. All materials so supplied to the contractor shall remain the absolute
property of the Owner and shall not be removed on any account from the site of the work, and shall be at all
times open for inspection to the Engineer-in-Charge. Any such materials remaining unused at the time of
completion or termination of the contract shall be returned to the Owner’s stores or at a place as directed by
the Engineer-in- Charge in perfectly good condition, at contractor’s cost.
57.1 Materials specified to be issued by the Owner will be supplied to the contractor by the Owner from his
stores/location. It shall be the responsibility of the contractor to take delivery of the materials and arrange for its
loading, transport and unloading at the site of work at his own cost. The materials shall be issued between the
working hours and as per the rules of the Owner framed from time to time.
57.2 The contractor shall bear all incidental charges for the storage and safe custody of materials at site after these
have been issued to him.
57.3 Materials specified to be issued by the Owner shall be issued in standard sizes as obtained from the
manufacturer.
57.4 The contractor shall construct suitable godown at the site of work for storing the materials safe against damage
by rain, dampness, fire, theft etc. He shall also employ necessary watch and ward establishment for the purpose.
57.5 It shall be duty of the contractor to inspect the material supplied to him at the time of taking delivery and satisfy
himself that they are in good condition. After the materials have been delivered by the Owner, it shall be the
responsibility of the contractor to keep them in good condition and if the materials are damaged or lost, at any
time, they shall be repaired and/ or replaced by him at his own cost, according to the directions of the Engineer-
in-Charge.
57.6 The Owner shall not be liable for delay in supply or non-supply of any materials which the Owner has
undertaken to supply where such failure or delay is due to natural calamities, act of enemies, transport and
procurement difficulties and any circumstances beyond the control of the Owner. In no case, the contractor shall
be entitled to claim any compensation or loss suffered by him on this account.
57.7 It shall be the responsibility of the contractor to arrange in time all materials required for the works other than
those to be supplied by the Owner. If, however, in the opinion of the Engineer-in-Charge the execution of the
work is likely to be delayed due to the contractor’s inability to make arrangements for supply of materials which
normally he has to arrange for, the Engineer-in-Charge shall have the right, at his own discretion, to Issue such
materials If available with the Owner or procure the materials from the market or elsewhere and the contractor
will be bound to take such materials at the rates decided by the Engineer-in-Charge. This, however, does not in
any way absolve the contractor from responsibility of making arrangements for the supply of such materials in
part or in full, should such a situation occur, nor shall this, constitute a reason for the delay in the execution of
the work.
57.8 None of the materials supplied to the contractor will be utilized by the contractor for manufacturing item, which
can be obtained from standard manufacturer in finished form.
57.9 The contractor shall, if desired by the Engineer-in-Charge, be required to execute an indemnity bond for safe
custody and accounting of all materials issued by the Owner.
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57.10 The contractor shall furnish to the Engineer-in-Charge sufficiently in advance a statement showing his
requirements of the quantities of the materials to be supplied by the Owner and the time when the same will be
required by him for the works, so as to enable the Engineer-in-Charge to make necessary arrangement for
procurement and supply of the material.
57.11 A daily account of the materials issued by the Owner shall be maintained by the contractor indicating the daily
receipt, consumption and balance in hand. This account shall be maintained in a manner prescribed by the
Engineer-in-Charge along with all connected papers viz. requisition, issues etc. and shall be always available for
inspection in the contractor’s office at site.
57.12 The contractor should see that only the required quantities of materials are got issued. The contractor shall not
be entitled to cartage and incidental charges for returning the surplus materials, if any, to the stores/location
where from they were issued or to the place as directed by the Engineer-in-Charge.
57.13 Materials/ Equipment supplied by Owner shall not be utilized for any other purpose(s) than issued for.
Notwithstanding anything contained to the contrary in any or all the clause of this document where any
materials for the execution of the contract are procured with the assistance of Owner either by issue from
Owner’s stock or purchase made under orders or permits or licenses issued by Government, the contractor shall
hold the said materials as trustee for the Owner and use such materials economically and solely for the purpose
of the contract and not dispose them off without the permission of the owner and return, if required by the
Engineer-in-Charge, all surplus or unserviceable materials that may be left with him after the completion of the
contract or at its termination for any reason, whatsoever on his being paid or credited such prices as the
Engineer in-Charge shall determine having due regard to the condition of the materials. The price allowed to the
contractor however, shall not exceed the amount charged to him excluding the storage charges if any. The
decision of the Engineer-in- Charge shall be final and conclusive in such matters. In the event of breach of the
aforesaid condition, the contractor shall in terms of the licenses or permits, and/or for criminal breach of trust,
be liable to compensate the Owner a double rate or high rate, in the event of those materials at that time having
higher rate or not being available in the market, then any other rate to be determined by the Engineer-in-Charge
and his decision shall be final and conclusive.
If the contractor in the course of execution of the work is called upon to dismantle any part for reasons other
than those stipulated in clauses 66 & 70 hereunder, the materials obtained in the work of dismantling etc. will
be considered as the Owner’s property and will be disposed off to the best advantage of the Owner.
All gold, silver and other materials, of any description and all precious stones, coins, treasure relies, antiquities
and other similar things which shall be found in, under or upon the site, shall be property of the Owner and the
contractor shall duly preserve the same to the satisfaction of the Engineer-in-Charge and shall from time to time
deliver the same to such person or person indicated by the Owner.
Should any discrepancy occur between the various instructions furnished to the contractor, his agents or staff or
any doubt, arise as to the meaning of any such instructions or should there be any misunderstanding between
the contractor’s staff and the Engineer-in-Charge’s staff, the contractor shall refer the matter immediately in
writing to the Engineer-in-Charge whose decision thereon shall be final and conclusive and no claim for losses
alleged to have been caused by such discrepancies between instructions, or doubts, or misunderstanding shall in
any event be admissible.
62.1.1 If the rates for the additional, altered or substituted work are specified in the contract for the work, the
contractor is bound to carry out the additional, altered or substituted work at the same rates as are specified in
the contract.
62.1.2 If the rates for the additional, altered or substituted work are not specifically provided in the contract for the
work, the rates will be derived from the rates for similar class of works as specified in the contract for the Work.
The opinion of the Engineer-in-Charge as to whether the rates can be reasonably so derived from items in the
contracts will be final and binding on the contractor.
62.1.3 If the rates for the altered, additional or substituted work cannot be determined in the manner specified in sub-
clause (a) and (b) above, then the contractor shall inform the Engineer-in-Charge of the rate which is his
intension to charge for such class of work supported by analysis of the rate or rates claimed, and the Engineer-
in-Charge shall determine the rates on the basis of the prevailing market rates of materials, labour cost at
schedule of labour plus 10% to cover contractor’s supervision, overheads and profit and pay the contractor
accordingly. The opinion of the Engineer-in-Charge as to the current market rates of materials and the quantum
of labour involved per unit of measurement will be final and binding on the contractor.
62.1.4 Provisions, contained in sub-clause (a) to (c) above shall not, however, apply:
Where the value of alterations / additions / deletions or substitutions exceeds beyond plus or minus 25% of the
estimated contract value (i.e. quoted item rates of contractor shall hold good for variations etc. within plus or
minus 25% of estimated contract value)
62.2 In the event and as a result of such alternatives / additions / substitutions / deletion, the scope of contract work
exceed the value stipulated in the contract by more than the limits given in clause (d) above, the Contractor shall
claim revision of the rates supported by the proper analysis in respect of such items for quantities in excess of
the above limits, notwithstanding the fact that the rates for such items exist in the tender for the main work or
can be derived in accordance with the provision of sub-clause (b) of Clause 62 A, and the Engineer-in-Charge
may revise their rates having regard to the prevailing market rates, and the contractor shall be paid in
accordance with the rates so fixed. But, under no circumstances the contractor shall suspend / stop / slowdown
the work on the plea of non-settlement of rates of items falling under this clause.
Upto & inclusive of (-) 25% of Total Contract Value (TCV): No cost compensation.
Beyond (-) 25% of TCV: Cost compensation @ 10% of reduction in the contract value from (-) 25% of TCV
(i.e. 75% of TCV).
In case of any class of work for which there is no such specification given by the Owner in the tender documents,
such work shall be carried out in accordance with Indian Standard Specifications and if the Indian Standard
Specifications do not cover the same the work should be carried out as per standard Engineering Practice subject
to the approval of the Engineer-in-Charge.
65 ABNORMAL RATES:
The contractor is expected to quote rate for each item after analysis of cost involved for the completion of
item/work, considering all specifications and conditions of contract. This will avoid loss of profit or gain, in case
of curtailment or change of specification for any item. In case it is noticed that the rates for any item, quoted by
the tenderer unusually are high or unusually low it will be sufficient cause for the rejection of the tender unless
the Owner is convinced about the reasonableness of the rates on scrutiny of the analysis for such rate to be
furnished by the tenderer on demand.
66 INSPECTION OF WORK:
66.1 The Engineer-in-Charge will have full power and authority to inspect the works at any time wherever in progress
either on the Site or at the contractor’s premises / workshop where situated premises /workshops of any
person, firm or corporation where work in connect with the contract may be in hand or where materials are
being or are to be supplied, and the contractor shall afford or procure for the Engineer-in-Charge every facility
and assistance to carry out such Inspection. The contractor shall at all time during the usual working hours and
at all other time for which reasonable notice of the intention of the Engineer in-Charge or his representative to
visit the works have been given to the contractor, either himself be present to receive order and instructions or
post a responsible agent duly accredited in writing for the purpose. Orders given to the contractor’s agent shall
be considered to have the same force as if they had been given to the contractor himself. The contractor shall
give not less than seven days, notice in writing to the Engineer-in-Charge before covering up or placing any work
beyond reach of inspection and measurement any work in order that the same may be inspected and measured.
In the event of breach of above the same shall be uncovered at contractor’s expense carrying out such
measurement or inspection.
66.2 No materials shall be dispatched by the contractor before obtaining the approval of Engineer-in-Charge in
writing. The contractor is to provide at all times during the progress of the work and the maintenance period,
proper means of access with ladders, gangways, etc. and the necessary attendance to move and adopt as
directed for inspection or measurement of the works by the Engine in-Charge.
The contractor shall make available to the Engineer-in-Charge, free of cost necessary instruments and assistance
in checking of setting out of works and taking measurement of work.
68.1 All workmanship shall be of the respective kinds described in the contract documents and in accordance with
the instructions of the Engineer-in-Charge and shall be subjected from time to time to such test at contractor’s
cost as the Engineer-in-Charge may direct at place of manufacture or fabrication or on the site or at all or any
such places. The contractor shall provide assistance, instruments, labour and materials as are normally required
for examining, measuring and testing any workmanship as may be selected and required the Engineer-in-Charge.
68.2 All the tests necessary in connection with the execution of the work as decided by Engineer-in-Charge shall be
carried out at the field testing laboratory of the Owner by paying the charges as decided by the Owner from time
to time. In case of non-availability of test facility with the Owner, the required test shall be carried out at the
cost of contractor at government or any other testing laboratory as directed by Engineer-in-Charge.
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68.3 If any tests are required to be carried out in connection with the work or materials workmanship not supplied by
the contractor, such tests shall be carried out by the contractor as per the instructions of Engineer-in-Charge and
cost of such tests shall be reimbursed by the Owner.
69 SAMPLES:
The contractor shall furnish to the Engineer-in-Charge for approval when requested or if required by the
specifications, adequate samples of all materials and finishes to be used in the work. Such samples shall be
submitted before the work is commenced and in ample time to permit tests and examinations thereof. All
materials furnished and finishing applied in actual work shall be fully identical to the approval samples.
If it shall appear to the Engineer-in-Charge that any work has been executed with unsound, imperfect or
unskilled workmanship or with materials of any inferior description, or that any materials or articles provided by
the contractor for the execution of the work are unsound or of a quality inferior to that contracted for, or
otherwise not in accordance with the contract, the contractor shall on demand in writing from the Engineer-in-
Charge or his authorised representative, specifying the work, materials or articles complained of,
notwithstanding that the same have been inadvertently passed, certified and paid for forthwith shall rectify or
remove and reconstruct the works specified and provide other proper and suitable materials or articles at his
own charge and cost, and in the event of failure to do so within a period to be specified by the Engineer-in-
Charge in his demand aforesaid, the contractor shall be liable to pay compensation at the rate of one percentage
of the estimated cost of the whole work, for every week limited to a maximum of 10 per cent of the estimated
cost of the whole work, while his failure to do so shall continue and in the case of any such failure the Engineer-
in-Charge may on expiry of notice period rectify or remove and re-execute the work or remove and replace with
others, the materials or articles complained of as the case may be at the risk and expenses of the contractors in
all respects. The decision of the Engineer-in-Charge as to any question arising under this clause shall be final and
conclusive.
71 SUSPENSION OF WORKS:
The contractor shall, if ordered in writing by the Engineer-in-Charge or his representative, temporarily suspend
the works or any part thereof for such period and such time as so ordered and shall not, after receiving such
written order, proceed with the work therein ordered to be suspended, until he shall have received a written
order to proceed therewith. The contractor shall not be entitled to claim/ compensation for any loss or damage
sustained by him by reason of temporary suspension of the works aforesaid. An extension of time for
completion, corresponding with the delay caused by any such suspension of the works as aforesaid will be
granted to the contractor, should he apply for the same, provided that suspension was not consequent to any
default or failure on the part of the contractor.
Upon failure of the contractor to comply with any instructions given in accordance with the provisions of the
contract, the owner has the alternative right, instead of assuming charge for entire work to place additional
labour force, tools, equipments and materials on such parts of the work, as the owner may designate or also
engage another contractor to carry out the work. In such cases, the owner shall deduct from the amount which
otherwise might become due to the contractor, the cost of such work and materials with ten percent added to
cover all departmental charges and should the total amount thereof exceed the amount due to the contractor,
the contractor shall pay the difference to the owner.
The Engineer-in-Charge shall have the right to take possession of or use any completed or partially completed
work or part of the work. Such possessions or use shall not be deemed to be an acceptance of any work
completed in accordance with the contract agreement. If such prior possession or use by the Engineer-in-Charge
29
delays the progress of work, suitable adjustment in the time of completion will made and contract agreement
shall be deemed to be modified accordingly.
74.1 The contractor shall guarantee the installation/site work for a period of 06 (six) Months from the date of
completion of work, unless otherwise specified. Any damage that may lie undiscovered at the time of issue of
completion certificate, connected in any way with the equipment or materials supplied by him or in the
workmanship shall be rectified or replaced by the contractor at his own expense as deemed necessary by the
Engineer-in-Charge or in default, the Engineer-in-Charge may cause the same made good by other workmen and
deduct expenses (for which the certificate of Engineer-in-Charge shall be final) from any sums that may be then
or at any time thereafter, become due to the contractor or from his security deposit. In case the defect arises
within the abovementioned Defect Liability Period (DLP) and the same is repaired/replaced, the DLP for the
repaired/replaced job/item will be extended suitably so as to cover the original DLP. However, in no case, such
extension will exceed 24 months from date of start of initial DLP.
74.2 If the contractor feels that any variation in work or in quality of materials or proportions would be beneficial or
necessary to fulfill the guarantee called for, he shall bring this to the notice of the Engineer-in-Charge in writing.
The work will not be considered as complete and taken over by the Owner until all the temporary works etc.,
constructed by the contractor is removed and work site cleaned to the satisfaction of Engineer-in-Charge.
74.4.1 Decide that any work done or materials used by the contractor or any sub-contractor is defective or not in
accordance with the contract or that the works or any portion thereof are defective or do not fulfill the
requirements of contract (all such matters being herein after called ‘Defects’ in this clause) and
74.4.2 As soon as reasonably practicable, notice given to the contractor in writing of the said decisions specifying
particulars of the defects alleged to exist or to have occurred, then the contractor shall at his own expenses and
with all speed make good the defects so specified.
In the case contractor shall fail to do so, the Owner may take, at the cost of the contractor, such steps as may in
all circumstances, be reasonable to make good such defects. The expenditure, so incurred by the Owner shall be
recovered from the amount due to the contractor. The decision of the Engineer-in-Charge with regard to the
amount be recovered from the contractor will be final and binding on the contractor. As soon as the works have
been completed in accordance with the contract (except in minor respects that do not affect their use for the
purpose for which they are intended and except for maintenance thereof provided in clause 74.1) and have
passed the tests on completion, the Engineer-in-Charge shall issue a certificate (hereinafter called completion
certificate) in which he shall certify the date on which the work have been so completed and have passed the
said tests and the Owner shall be deemed to have taken over the works on the date so certified. If the works
have been divided into various groups in the contract, the Owner shall be entitled to take over any group or
groups before the other or others and thereupon the Engineer-in-Charge shall issue a completion certificate
which will however, be for such group or groups as taken over only.
74.5 The Security Deposit/retention money deducted / furnished as per clause 18 of GCC shall be retained for the
period of liability as given in clause 74.1 above. This Retention amount or Bank Guarantee furnished against
Security Deposit/retention money shall be released only on expiry of the period of liability and also based on the
certification of the Engineer-in-charge that no defect/damage has been reported / observed during the
stipulated period of liability for the contract.
74.6 Performance of contractor shall be evaluated on each job by Engineer-in-Charge and recorded. Review of
performance will be carried out at appropriate intervals by BPCL.
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SECTION - VI
Generality of this present provision shall not be deemed to cut down or limit in any way because in certain cases
it may and in other cases it may not be expressly stated that the contractor shall do or perform a work or supply
articles or perform services at his own cost or without addition of payment or without extra charges or words to
the same effect or that it may be stated or not stated that the same are included in and covered by the schedule
of rates.
Without in any way limiting the provisions of the preceding sub-clause the schedule of rates shall be deemed to
include and cover the cost of all constructional equipment, temporary work (except as provided for herein),
pumps, materials, labour, the insurance, fuel, stores and appliances to be supplied by the contractor and other
matters in connection with each item in the schedule of rates and the execution of the works or any portion
thereof, finished, complete in every respect and maintained as shown or described in the contract documents or
may be ordered in writing during the continuance of this contract.
The Schedule of Rates shall be deemed to include and cover the cost of all royalties and fees for the articles and
processes, protected by letters, or otherwise incorporated in or used in connection with the works, also all
royalties, rents and other payments in connection with obtaining materials of whatsoever kind for the works and
shall include an indemnity to the Owner which the contractor hereby gives against all actions, proceedings,
claims damages, costs and expenses arising from the incorporation in or use on the works of a such articles,
processes or materials, Octroi or other municipal or local Board charges levied on materials, equipment or
machineries to be brought to site for use on work shall be borne by the contractor.
32
No claim or exemption or reduction of customs duties, excise duties, sales tax, quarry or any port dues,
transport charges, stamp duties or Central or States Government or Local Body or Municipal Taxes or duties,
taxes or charges (from or of any other body), whatsoever, will be granted or obtained, all of which expenses
shall be deemed to be included in and covered by the Schedule of Rates. Contractor shall also obtain and pay for
all permits, or other privileges necessary to complete work.
The schedule of Rates shall be deemed to include and cover the risk of all possibilities of delay and interference
with the contractors conduct of work which occur from any cause including orders of owner in the exercises of
his powers and on account of extension of time granted due to various reasons and for all other possible or
probable cause of delay.
For work under unit rate basis, no alteration will be allowed in the schedule of Rates by reason of work or any
part of them being modified, altered, extended, diminished or omitted. The schedule of Rates are fully Inclusive
rates which have been fixed by the contractor and agreed to the Owner and cannot be altered.
For lumpsum contract, the payment will be made according to the work actually carried out for which purpose
an item wise or work wise, Schedule of rates shall be furnished, suitable for evaluating the value of work done
and preparing running account bills.
76.1 Measurements:
All measurements shall be in metric system. All the works in progress will be jointly measured by the
representative of the Engineer-in-Charge and the Contractor’s authorize agent progressively. Such measurement
will be got recorded in the measurement book by the Engineer-in-Charge or his authorised representative and
signed in token of accepted by the contractor or his authorised representative.
For the purpose of taking joint measurement the contractor’s representative shall be bound to be present
whenever required by the Engineer-in-Charge. If, however, he absents for any reason whatsoever the
measurement will be taken by the Engineer-in-Charge or his representative and this will be deemed to be
correct and binding on the contractor.
76.2 Billing:
The contractor will submit a bill to the Engineer-in-Charge of the work giving abstract and detailed
measurements for the various items executed during a month, before the expiry of the 1st week of the
succeeding month. The Engineer-in-Charge shall take or cause to be taken the requisite measurements for the
purpose of having the same verified and the claim, as far as admissible, adjusted, if possible, before the expiry of
10 days from presentation of the bill.
77 LUMPSUMS IN TENDER:
For the items in tender where it includes lumpsum in respect of parts of work, the contractor shall be entitled to
payment in respect of the items at the same rates as are payable under this contract for such items, or if part of
the work in question is not In the opinion of the Engineer-in-Charge capable of measurement of determination,
the owner may at his discretion pay the lumpsum amount entered In the tender or a percentage thereof and the
certificate In writing of the Engineer-in-Charge shall be final and conclusive against the contractor with regards
to any sum or sums payable to him under the provisions of the clause.
The final bill shall be submitted by the contractor within one month of the date of physical completion of the
work, and settled immediately but not later than 60 days otherwise the Engineer-in charge’s certificate of the
measurement and of total amount payable for the work accordingly shall be final and binding on all parties. The
final bill shall be presented by the contractor along with ‘No claim certificate’ in a format acceptable to the
owner or such other documents as directed by the owner.
79 EXTRA WORK:
Should the contractor consider that he is entitled to any extra payment for extra job carried out whatsoever in
respect of the works, he shall forthwith give notice in writing to the Engineer-in-Charge that he claims extra
payment for the extra work. Such notice shall be given to the Engineer-in-Charge within one week from the
ordering of any extra work or happening of any event, upon which the contractor bases such claims, and such
notice shall contain full particulars of the nature of such claim with full details and amount claimed. Failure on
part of the contractor to put forward any claim with the necessary particulars as above within the time above
specified shall be an absolute waiver thereof. No omission by the owner to reject any such claim and no delay in
dealing therewith shall be waiver by the owner of any rights in respect thereof.
Generally no payment shall be made for works estimated to cost less than Rs. 50,000/- till the whole of the work
shall have been completed. But in case of works estimate to cost more than Rs. 50,000/- the contractor on
submitting the bill thereof be entitled to receive a monthly payment proportion to the part thereof approved
and passed by the Engineer-in-Charge, whose certificate of such approval and passing of the sum so payable
shall be final and conclusive against the contractor. This payment will be made after making necessary
deductions as stipulated elsewhere in the contract document for materials, security deposit or any moneys due
to the Owner etc. 75% payment of the Running Account bill (RA bill) shall be released within 15 calendar days of
receipt of RA bill duly certified by Engineer-in-charge (EIC) and the balance payment shall be released within 30
days of receipt of RA bill by EIC after detailed scrutiny.
81 MODE OF PAYMENT:
82 COMPLETION CERTIFICATE:
The Engineer-in-Charge shall normally issue to the contractor the completion certificate within one month after
receiving an application therefore from the contractor after verifying from the completion documents and
satisfying himself that the work has been completed in accordance with and as set out in the construction and
erection drawings and the contract documents.
The contractor, after obtaining the completion certificate is eligible to present the final bill for the work
executed by him under the terms of contract.
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82.2 Completion Certificate:
The contractor shall be furnished with a certificate by the Engineer-in-Charge of such completion, but no
certificate shall be given nor shall the work be deemed to have been executed until all scaffolding surplus
materials and rubbish is cleared off the site completely or until the work shall have been measured by the
Engineer-in-Charge whose measurement shall be binding and conclusive. The work will not be considered
complete and taken over by the Owner, until all the temporary works, labour and staff colonies etc. constructed
are removed and the work site cleaned of all debris etc., as described in clause in 82.3 below and to the
satisfaction of the Engineer-in-Charge.
If the contractor shall fail to comply with the requirements of this clause on or before the date fixed for the
completion of the work, the Engineer-in-Charge may at the expenses of the contractor remove such scaffolding,
surplus materials and rubbish and dispose off the same as he thinks fit and clean off such dirt as aforesaid, and
the contractor shall forthwith pay the amount of all expenses so incurred and shall have no claim in respect of
any such scaffolding or surplus materials as aforesaid except for any sum actually realised by the sale thereof.
82.3.1 All unused scrap steel bar/ structural steel sections/pipe materials etc., (Free issue by owner) shall be the
property of the owner and the same shall be returned by the contractor category-wise at their own cost to
Owner’s store. The weighment slip issued by the Warehouse (in original) is required to be attached along with
the final bill/ material reconciliation statement. In case, the material is supplied by the contractor, as per their
scope of work, the scrap material generated out of the same should be taken out at their own cost before the
settlement of the final bill.
82.3.2 Insulation material (either issued by owner to the contractor or supplied by contractor) shall be kept in the area
allocated by owner. During the insulation activities, the contractor should keep the work area clean on day-to-
day basis. On completion of insulation job, all debris/packing should be taken out to the designated location or
as directed by the Engineer in charge for disposal at their own cost before the settlement of the final bill.
82.4 The financial implication of above, if any, should be taken care of in the quoted rates; and no separate claim
shall be entertained on this account. The final bill of the contractor shall be linked with the area cleaning in all
respects, including removal of shuttering material, disposal of debris/scrap etc. to the entire satisfaction of
Engineer-in- Charge.
Upon Expiry of the period of liability and subject to the Engineer-in-Charge being satisfied that the works have
been duly maintained by the contractor during monsoon or such period as herein before provided in clause 74
and that the contractor has in all respect duly made up any subsidence and performed all his obligations under
the contract, the Engineer-in-Charge shall (without prejudice to the rights of the Owner to retain the provisions
of relevant clause hereof) give a certificate herein referred to as the final certificate to that effect. The
contractor shall not be considered to have fulfilled the whole of his obligations under the contract until Final
Certificate have been given by the Engineer-in-Charge notwithstanding any previous entry upon the work and
taking possession, working or using of the same or any part thereof by the owner.
Except the final certificate, no other certificate or payments against a certificate or on general account shall be
taken to be an admission by the Owner of the due performance of the contract or any part thereof or occupancy
or validity of any claim by the contractor.
35
SECTION - VII
The contractor agrees to and does hereby accept full and exclusive liability for the payment of any and all
taxes, duties, octroi etc. now in force or hereafter Imposed, increased or modified, from time to time in
respect of work and materials and all contributions and taxes for unemployment compensation, insurance
and old age pensions or annuities now or hereafter imposed by any Central or State Government authorities
which are imposed with respect to or covered by the wages, salaries, or other compensations paid to the
persons employed by the contractor and the contractor shall be responsible for the compliance with all
obligations and restrictions imposed by the Labour Law or any other law affecting employer - employee
relationship and the contractor further agrees to comply and secure the compliance by all sub-contractors,
with all applicable Central, State, Municipal and local laws and regulations and requirements of any Central,
State or Local Government agency or authority. Contractor further agrees to defend, indemnify and hold
harmless from any liability or penalty which may be Imposed by the Central, State of Local Authority by
reason of any violation by contractor or sub-contractor of such laws, regulations or requirements and also
from all claims, suits or proceeding that may be brought against the Owner arising under, growing out of, or
by reason of the work provided for by this contract by third parties, or by Central or State Government
authority or any administrative sub-division thereof.
86 INSURANCE:
Contractor shall at his own expenses carry and maintain insurance with reputable insurance companies to
the satisfaction of the Owner as follows:
The contractor agrees to filing, with the Employees State Insurance Corporation, the Declaration Forms and
all forms which may be required in respect of the contractor’s or sub-contractor’s employees whose
aggregate remuneration as fixed by the concerned authorities and who are employed in the work provided
for or those covered by ESI Act under any amendment to the Act from time to time. The contractor shall
deduct and secure the agreement of the sub-contractor to deduct the employee’s contribution as per the
first schedule of the Employee State Insurance Act from wages and affix the Employee’s contribution Cards
at Wages payment intervals. The contractor shall remit and secure the agreement of the sub-contractor to
remit to the authorized bank, Employee’s State Insurance Corporation Account, the Employee’s contribution
as required by the Act. The contractor agrees to maintain all Cards and records as required under the Act in
respect of employees and the payments and the contractor shall secure the agreement of the subcontractor
to maintain such records. Any expenses incurred for the contribution, making contribution or maintaining
records shall be to the contractor’s or sub-contractor’s account.
The Owner shall retain such sum as may necessary, from the total contract value until contractor shall
furnish satisfactory proof that all contributions as required by the Employees State Insurance Act, 1948, have
been paid.
Insurance shall be effected for all the Contractor’s employees engaged in the performs of this contract, if any
of the work is sublet, the contractor shall require the sub-contractor to provide workman’s compensation
and employer’s liability Insurance for the latter’s employees if such employees are not covered under the
contractors insurance.
87 DAMAGE TO PROPERTY:
87.1 Contractor shall be responsible for making good, to the satisfaction of the Owner any loss of and any damage
to all structures and properties belonging to the Owner or being executed or procured or being procured by
the Owner or of other agencies within the premise all the work of the Owner, if such loss or damage is due to
fault and/or the negligence willful acts or omission of contractor, his employees, agents, representative or \
sub-contractor.
87.2 The contractor shall indemnify and keeps the Owner harmless of all claims for damage to property other
than Owner’s property arising under or by reason of this agreement if such claims results from the fault
and/or negligence or willful acts or omission of contractor, his employees, agents, representatives or sub-
contractors.
SECTION - VIII
88 LABOUR LAWS:
88.1 No labour below the age of eighteen years shall be employed on the work.
88.2 The contractor shall not pay less than what is provided under the Minimum Wages Act for the applicable
trade or category of workman to the worker engaged by him on the work and also ensure that any sub-
contractors engaged by him also pay not below the applicable minimum wages under the Act and hold the
company, indemnified in respect of any claims that may arise in respect or non-compliance with this
requirements.
88.3 The contractor shall observe all the formalities required under the provisions of the contract labour
(Regulation and abolition) Act 1970 and the rules made thereunder and as may be amended from time to
time. He shall pay the required deposit under the Act Appropriate to the number of workmen to be
employed by him or through sub-contractor and get himself registered under the Act. He shall produce the
certificate of registration granted by the Govt. authority under the Act to the company before
commencement of work. The company recognizes only the contractor and not his sub-contractors under the
provisions of the Act. The contractor will have to submit daily a list of his employees, who will be entering
the Company’s premises for the work awarded. He will also keep his wage register available at all times as
close to the work site as possible and produce the same for inspection whenever required by designated
Company officials. If the company so desires, a deposit may be taken from the Contractor to be refunded
only after the Company is satisfied that all the workmen employed by the contractor have been fully paid for
the period of work in Company’s premises at least at rates equal to or better than wages provided for under
the Minimum Wages Act.
88.4 The Contractor will comply with the provisions of the employee’s Provident Fund Act and the Family Pension
Fund Act as may be applicable and as amended from time to time. Contractor shall obtain their own
provident fund account number. Offer of the contractor who does not have provident fund account will be
liable for rejection.
88.5 The Contractor will comply with the provisions of the Payment of Gratuity Act 1972 as may be applicable and
as amended from time to time.
The Contractor shall comply with provisions of the Apprentices Act 1961 and the Rules/orders issued
thereunder from time to time. If he fails to do so, his failure will be breach of the contract and the Engineer-
in-Charge may, at his discretion, cancel the contract. The contractor shall also be liable for any pecuniary
liability arising on account of any violation by him of the provision of the act.
90.1 The contractor shall indemnity the owner and every member, officer and employee of the Owner, also the
Engineer-in-Charge and his staff against all actions, proceedings, claims, demands, costs, and expenses
whatsoever arising out of or in connection with the matters referred to in clause 86 and all actions/
proceedings, claims, demands, costs and expenses which may be made against the Owner for or in respect of
or arising out of any failure by the contractor in the performance of his obligations under the contract
documents. The Owner shall not be liable for or in respect of any demand or compensation payable by law in
respect of or in consequence of any accident or injury to any workmen or other person in the employment of
the contractor or his sub-contractor and contractor shall indemnify and keep indemnified the Owner against
all such damages and compensations and against all claims, damage, proceedings, costs, charges and
expenses whatsoever, thereof or in relation thereto.
In every case to which by virtue of the provisions of Section 12, sub-section (I) of workmen’s compensation
Act 1923 or other applicable provisions of workmen’s Compensation Act any other Act, the Owner is obliged
to pay compensation to a workmen employed by contractor in execution of the works, the Owner will recover
from the contractor the amount of compensation so paid and without prejudice to the rights of Owner under
Section 12 sub-section (2) of the said Act. Owner shall be at liberty to recover such amount or any part thereof
by deducting it from the security deposit or from any sum due to the contractor whether under the contract
or otherwise. The Owner shall not be bound to contest any clime made under Section 12, sub-section (I) of
the said Act except on the written request of contractor and upon his giving to the Owner full security for all
costs for which the Owner might become liable on consequence of contesting such claims.
90.3.1 The contractor shall be solely and exclusively responsible for engaging or employing persons for the execution
of work. All employees engaged by the contractor shall be on his/ their payroll and paid by him/ them. All
disputes or differences between the contractor and his/ their employees shall be settled by him/ them. Owner
has absolutely no liability whatsoever concerning the employees of the contractor. The contractor shall
indemnify owner against all loss or damage or liability arising out of or in the course of his/ their employees.
The contractor shall make regular and full payment of wages without giving any complaint by any employee of
the contractor or his sub-contractor regarding non-payment of wages/ salaries or other dues. Owner reserves
the right to make such payments directly, to such employee or sub-contractor of the contractor and recover
the amount in full from the bills of Contractor, and the contractor shall not claim any compensation or
reimbursement thereof. The Contractor shall comply with the Minimum Wages Act applicable to the area with
regard to payment of wages of his employees and also of employees of his sub-contractor.
90.3.2 The Contractor shall advise in writing to all of his employees and the employees of his sub- contractor as
follows:
It is fully understood that your appointment and/ or deployment is only in connection with the owner and it
does not give you any right of claim for employment by owner.
In respect of all labour directly employed in the works for performance of the contractor’s par this agreement,
the contractor shall comply with or cause to be complied with all the rules and regulations of the local sanitary
and other authorities or as framed by the Owner from time to time for the protection of health and sanitary
arrangements for all workers.
92 SAFETY REGULATIONS:
92.1 In respect of all labour, directly or indirectly employed In the work for the performance of contractor’s part of
this agreement, the contractor shall at his own expenses arrange for all safety provisions as per safety codes
of C.P.W.D. Indian Standard Institution, the Electricity Act, The Mines Act and any such other acts as
applicable.
92.2 The Contractor shall ensure that he, his sub-contractor and his, or their personnel or representatives shall
comply with all Fire / Safety regulations issued from time to time by the Company or otherwise howsoever
and should any injury resulting in death or not or loss / or damage due to Fire to any property or a portion
thereof, occurred as a result of failure to comply with such regulations, the contractor shall be held
responsible for the consequences thereof and shall keep the company harmless and indemnified.
93 ARBITRATION: Any dispute or difference whatsoever arising out of or in connection with this Agreement
including any question regarding its existence, validity, construction, interpretation, application, meaning,
scope, operation or effect of this contract or termination thereof shall be referred to and finally resolved
through arbitration as per the procedure mentioned herein below :
(a) The dispute or difference shall, in any event, be referred only to a Sole Arbitrator
(b) The appointment and arbitration proceedings shall be conducted in accordance with SCOPE Forum of
Arbitration Rules for the time being in force or as amended from time to time
(e) The cost of the proceedings shall be equally borne by the parties, unless otherwise directed by the Sole
Arbitrator.
94 JURISDICTION:
The contractor shall be governed by the Laws in force in INDIA. The contractor hereby submits to the
jurisdiction of the Courts situated at Mumbai/ (Ernakulam-in the case of Kochi Refinery), for the purpose of
actions and proceedings arising out of the contract and the courts at Mumbai/ (Ernakulam-in the case of Kochi
Refinery), only will have jurisdiction to hear and decide such actions and proceedings.
Additionally, any variation or amendment / change order issued after signing of formal contract shall take
precedence over respective clauses of the formal contract and its Annexures.
96 LIMITATION OF LIABILITY
The aggregate total liability of the Contractor to Owner under the Contract shall not exceed the total Contract
Price, except that this Clause shall not limit the liability of the Contractor for following:
MEMORANDUM OF AGREEMENT
An agreement made this day___ of ______ 20___ between BHARAT PETROLEUM CORPORATION LIMITED a
Company Incorporated in India and having its registered office at Ballard Estate, Mumbai, (herein after referred to as
‘the Company’ which expression shall include its heirs, legal representatives, successors and permitted assignees) of
the one part, and ___________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
(Herein after referred to as “The Contractor” which expression shall include its heirs, legal representatives, successors
and permitted assignees) of the other part, whereby it is agreed:
1. The Contractor shall carry out and complete the work as mentioned in the Purchase order/ Contract No.
________ dated _______, (hereinafter referred to as “the work”) for the Company at its specified site to its
complete satisfaction in accordance with the specifications, schedule of rates and plans attached as per Purchase
order/Contract and with the instructions given from time to time, by the Company’s authorized engineer under
whose supervision the work shall be-executed. The parties hereto agree that this agreement shall be effective
from the date of the aforesaid Purchase Order/Contract.
2. Inspection of site: The Contractor has been given an opportunity before or at the time of the entrusting of the
work to him of making an inspection of the site to set at rest any doubt he may have had about the difficulties
attending his offer, and any difficulties which may be met with by him in the course of the execution of the work
shall neither relieve him from fulfilling the terms of this Agreement, nor entitled him to claim extra payment or
an extension of the period stipulated for the completion of the work, except where it will be agreed by the
Company’s authorized Engineer that such difficulties could not have been foreseen.
3. Supply of Labour and Materials: The Contractor shall furnish all labour, materials, equipment or tools necessary
for the construction of the work, except such materials, equipment or tools as will be supplied by the Company
and are detailed in Purchase order/Contract. The contractor will assume full responsibility for the protection and
safety of the work during its construction. The details and dimensions shown on the said plans referred to in the
Purchase order/Contract shall be strictly adhered to by the contractor and no alterations shall be made therein
unless previous sanction thereto has been given in writing by the Company.
(a) The Contractor shall prepare detailed and shop drawings and any other data required.
(b) All materials supplied by the Contractor shall be of the best quality. The Contractor shall at his own cost
arrange for and/or carry out any test of materials, which the Company’s authorized Engineer may require.
(c) The Contractor shall at the request of the Company’s authorized Engineer immediately dismiss from the
work any person employed thereon who, in the opinion of the Company’s authorized Engineer, is unsuitable
or incompetent or who, has been guilty of misconduct, and such person shall not again be employed or
allowed on the works without the permission of the Company, in writing.
4. E. & O. E. No advantage is to be taken either by the Company or the Contractor of any clerical error or mistake,
which may occur in the specification, schedule of rates, plans, tender or any other papers supplied to or by the
contractor in connection with the work.
5. Damage on account of Incomplete work: The Contractor shall commence the work and shall complete the work
as mentioned in Purchase order/Contract failing which the Contractor shall pay or allow to the Company to
recover as liquidated damages, at the rate of minimum 0.5% per week of delay or part there of up to a maximum
of 5% of the total contract value, if Liquidated damages clause is made applicable in the contract. Such damages
may be deducted by the Company from any amount due to the contractor; otherwise they shall be recoverable
by lawful means.
6.a Determination of the Agreement: The company shall, at any time, be entitled to determine and terminate the
contract, if in the opinion of the company; the cessation of the work becomes necessary owing to paucity of
funds or for any other cause whatsoever. On such determination / termination, the cost of approved materials,
brought by the contractor and lying at the site, at current market rates as verified and approved by company’s
engineer and of the value of the work done to date by the contractor shall be paid for in full at the rate specified
in the contract. A notice in writing from the company to the contractor of such determination and termination
and reasons therefore shall be the conclusive proof of the fact that the contract has been so determined and
terminated by the company.
Should the contract be determined as above and the contractor claims payment to compensate expenditure
incurred by him in the expectation of completing the work, the company shall consider and admit such claim as
are deemed fair and reasonable and are supported by the vouchers to satisfaction of the engineer-in-charge. The
company’s decision on the necessity and propriety of such expenditure shall be final and conclusive and binding
on the contractor.
The contractor shall not be entitled to get any possible loss of profit that he could have earned had the contract
been not determined / terminated under the above clauses of this article.
6.b Termination/Offloading: The contractor fully understands that timely completion of the work as per the schedule
is of paramount necessity as otherwise it would lead to adversely affecting the schedules of other works/project
with resultant financial and other losses to the Company. In view of this, the contractor unconditionally agrees
and binds himself to be liable for all the consequences for non-completion of the work within the stipulated time.
In case a situation is brought about by the contractor warranting termination/off-loading of the whole or any part
of the work for any reason whatsoever, the Company shall have the liberty and right to entrust/engage/award
the work so terminated off loaded at the risk and cost of the contractor to any other agency/contractor by
adopting any mode of inviting tenders, i.e. open/limited/single party/negotiation basis etc. in order to ensure
completion of the work as per the schedule or at the quickest possible time.
7. Defective Work / Materials: If the work done by the Contractor or any part there of shall be found defective in
workmanship or by reason of bad or inferior materials used, then in such case he shall at his own risk and cost
without delay, demolish all such defective work and rebuild or replace the same in a satisfactory manner. The
Company may, if necessary, at the cost and risk of the Contractor, temporarily stop all other activities by the
Contractor in connection with the work until such time as the defective work has been rebuilt or replaced at the
Contractor’s cost. In case of default on the part of the contractor to remove defectives work and rebuild or
replace the same without delay and in a manner satisfactory to the Company, the Company shall be entitled to
employ another Contractor or its own workman to carry out the removal and rebuilding or replacing at the risk
and cost of the contractor.
8. Substitution of Contractor : If the Company finds it necessary to employ a person or persons for the purposes
provided in clauses 6 (b) and 7 above, then the Company may deduct and retain from out of the sums due to the
contractor all such amounts as they may require to pay or to reimburse themselves there from in respect of the
costs and expenses which they have incurred in completing the work and or in removing defective work and
rebuilding or replacing the same in a manner satisfactory to the Company and if such amounts be more than the
sums due or thereafter becoming due to the Contractor, than the balance, shall be a debt recoverable from the
Contractor by the Company. The Contractor shall not in any manner do or cause to be done any act, matter or
things whatsoever to prevent the person or persons so employed by the Company from removing defective work
and re-building or replacing the same in a manner satisfactory to the Company and/or from, completing the work
in the manner aforesaid.
9. Removal of Material: On the Determination of the Agreement as referred to in Clause 6, the Contractor shall at
his own risk and cost remove from site within Seven days all his materials, equipment and tools. It is agreed that
in case of such determination the company shall be entitled to purchase from the Contractor such materials as
will be approved by the Authorized Engineer of the Company at the prices then current. If the Contractor does
not remove the other materials, equipment and tools which he has been asked to remove within the time
prescribed as aforesaid, the Company may remove and sell the same holding the proceeds less the cost of
storage, removal and sale to the credit of the Contractor. Should Company incur any loss in respect of the sale, it
shall be entitled to recover same from the Contractor.
10. Inspection of work: Inspection will be made periodically during the progress of the work by the authorized
Engineer of the Company and all work performed must be of acceptable quality of which the said Engineer-in-
Charge will be the sole judge.
11. Supervision: The Contractor shall during the whole time the work is in progress, employ one or more competent
and technical English speaking Supervisors acceptable to the Company’s authorized Engineer, one of whom at
least shall be in constant attendance at the site while persons are at work there. Any directions, explanations,
instructions, or notices in connection with the work given by the Company’s authorized Engineer to these
Supervisors shall be deemed to have been given to the Contractor.
12. Payment: The Company, in consideration of the contractor carrying out and completing the said work at the
Company’s said site, to the satisfaction of the Company, shall pay the contractor as per the said schedule of
Rates, subject to deductions, retentions and abatements, if any to be made therefrom in accordance with the
provisions of this Agreement. During the progress of the work and provided the work is progressing according to
the time-table laid down to the contractor, the contractor shall be entitled once a month to receive advance
payment on the above mentioned sum proportionate to such part of the work as shall have been executed during
the preceding month but only after such part of the work as has been executed has been inspected and approved
by the Company’s authorized Engineer. From such interim payments each time 10% will be withheld as Security
deposit and this 10% will be paid to the Contractor after the defect liability period, provided that any defects
appearing during that period are corrected by him. OR
100% payment will be made on the basis of actual executed quantities after satisfactory completion and due
certification by BPCL Engineer-in-charge. In lieu of 10% Retention money towards Security deposit, contractor
shall submit bank guarantee of equivalent amount of retention money (10% of contract value) before submission
of 1st Running Account (RA) bill valid for defects liability period specified. Further, the Bank Guarantee shall have
a claim period of six months beyond the date of expiry, and the same shall be mentioned clearly in the Bank
Guarantee.
13. Defects after Completion: Any defects which may appear within the defect liability period specified shall, upon
the directions in writing of the Company and within such reasonable time as shall be specified therein be
amended and made good by the Contractor, at his own cost unless the Company shall decide that the Contractor
will be paid for such amending and making good, and in case of default on the Contractor’s part, the Company
may amend and make good or have amended and made good such defects and all damages, losses and expenses
consequent thereon, incidental to those shall be borne by the Contractor and such damages, losses and expenses
shall be recoverable from him by the Company or may be deducted by the Company from any moneys due to or
thereafter becoming due to the Contractor. Alternatively, the Company may, in lieu of such amending and
making good by the Contractor elect to deduct from any moneys due or thereafter becoming due to the
Contractor a sum to be determined by the Company sufficient to cover the cost of amending and making good
such defects, and in the event of the amount withheld in accordance with Clause 12 being insufficient, recover
the balance from the Contractor together with any expenses the Company may have incurred in connection with
such recovery. Should any defective work have been done or bad inferior materials supplied by any Sub-
Contractor employed on the work, has been approved by the Company as provided in Clause 15, the Contractor
shall be liable to amend and make good in the same manner as if such work or materials had been done or
supplied by the Contractor. The Contractor shall remain liable under this Clause notwithstanding the signing by
the Company’s authorized Engineer of any certificate or the passing of any account.
14. Alterations: The Company reserves the right at any time to alter any quantities of any item indicated in the
Purchase order/Contract, in which case the total amount payable to the Contractor shall be less or higher,
proportionate with the reduction or increase in quantity of such item, allowance for which will be made at the
Contractor’s agreed rates.
15. Subletting Agreement: The Contractor shall not sublet or assign the work or any part thereof to another party
without the written consent of the company and no such subletting or assignment shall relieve the contractor
from the full and entire responsibility of his obligation under this Agreement.
16. Cancellation: The Company shall at any and all times during the period stipulated for the work, has the right
forthwith to cancel this agreement by giving written notice thereof to the Contractor and in such case the
Contractor shall be paid for such part of the work as has been executed by him up to the date of cancellation, on
the basis of schedule of rates as per Purchase order/Contract and shall be reimbursed by the Company for the
cost and expenses incurred by him but which would now be wasted as a direct consequence of the cancellation
of the Agreement.
17. Workmen’s Compensation Liability: The Contractor shall hold the Company harmless and indemnified from and
against all claims, costs and charges for which the Company shall be liable under the Workmen’s Compensation
Act, 1923 and any amendments thereof and the expenses to which it shall be put thereunder, both in respect of
personal injuries (within the meaning of the said Act) to the employees and servants of the Contractor or Sub-
Contractors, (if any), arising out of, or occasioned during the currency of this agreement through the acts or
omissions, whether due to negligence or not of the Contractor, Sub-Contractor and/or Company and/or their
respective servants and employees and also in respect of the personal injuries (within the meaning of the said
Act) to the servants and employees of the Company arising out of, or occasioned through the acts and omissions
whether due to negligence or not of the Contractor, Sub-Contractor and or their servants and employees in
carrying out any of the provisions of this Agreement. This indemnity shall be in addition to and not in lieu of any
indemnity to which the Company shall be entitled in law. The Contractor shall at his own expense effect and
maintain, until the completion of the work, with an approved office a Policy of Insurance in the joint names of the
Company and the Contractor, against such risks and deposit such Policy or policies with the Company from time
to time during the currency of this Agreement. The Contractor shall be responsible for anything not included in
the Insurance Policies above referred to and also for all other damage to person or property arising out of or
incidental to the negligent or defective carrying out of this agreement and shall keep the Company harmless and
indemnified. He shall also indemnify the Company in respect of any costs, charges or expenses arising out of any
claim or proceedings and also in respect of any award of compensation or damages arising therefrom. The
Company shall be entitled to deduct the amount of any damages compensation costs, charges and expenses
arising or accruing from or in respect of any such claim or damages from any sum or sums due or thereafter
becoming due to the Contractor.
18. Safety Regulation: The Contractor shall ensure that he/his Sub-Contractor and his, or their personnel or
representatives shall comply with all safety regulations issued from time to time by the Company or otherwise
howsoever and should any injury resulting in death or not or damage to any property occur as result of failure to
comply with such regulations the Contractor shall be held responsible for the consequences thereof, shall keep
the Company harmless and indemnified.
19. Arbitration: Any dispute or difference whatsoever arising out of or in connection with this Agreement including
any question regarding its existence, validity, construction, interpretation, application, meaning, scope, operation
or effect of this contract or termination thereof shall be referred to and finally resolved through arbitration as per
the procedure mentioned herein below :
(a) The dispute or difference shall, in any event, be referred only to a Sole Arbitrator
(b) The appointment and arbitration proceedings shall be conducted in accordance with SCOPE Forum of Arbitration
Rules for the time being in force or as amended from time to time
(e) The cost of the proceedings shall be equally borne by the parties, unless otherwise directed by the Sole Arbitrator.
20. Jurisdiction:
The contractor shall be governed by the Laws in force in INDIA. The contractor hereby submits to the jurisdiction
of the Courts situated at Mumbai/ (Ernakulam-in the case of Kochi Refinery), for the purpose of actions and
proceedings arising out of the contract and the courts at Mumbai/ (Ernakulam-in the case of Kochi Refinery), only
will have jurisdiction to hear and decide such actions and proceedings.
21 Minimum Wages:
The Contractor, his executors and administrators (and in the case of a Limited Company, its successors and
assigns) shall hold the Company harmless and indemnified from and against all claims, costs and charges, for
which the Company shall be liable under the Minimum Wages Act, 1948, the Contract Labour (Regulation and
Abolition) Act, 1970 and any amendments or modifications thereof, and all expenses it shall be put thereunder
through the acts or omissions whether willful or not on the part of the Contractor. This indemnity shall be in
addition to and not in lieu of, any indemnity to which the Company shall be entitled in law.
22. Employees State Insurance: This Contractor hereby admits that he is fully aware of his responsibilities under the
Employees State Insurance Act, 1948, as an immediate employer of the employees engaged by him for the
execution of this contract which he agrees to discharge. The Contractor acknowledge the statutory right of the
company (as a Principle Employer) to recover the amount of the contributions, paid by it in the first instance in
respect of the employees employed by or through him (the Contractor), as well as the employee’s contribution, if
any, either by deduction from any amount payable to him by the Company under any contract or as debt payable
by him to the Company.
In witness where of the said contracting parties have set their hands.
To,
Bharat Petroleum Corporation Limited
Dear Sirs,
The tender Conditions of Contract provide that the Contractor shall pay a sum of Rs. ________
(Rupees __________________________________________________ ) as earnest money/ security deposit in the
form therein mentioned. The form of payment of earnest money/ security deposit includes guarantee executed by
Scheduled Bank, undertaking full responsibility to indemnify Bharat Petroleum Corporation Ltd. in case of default.
The said _____________________________________ have approached us and at their request and in consideration
of the premises we _________________________________ having our office at ______________________ have
agreed to give such guarantee as hereinafter mentioned.
1. We _______________________________________________________________________________ hereby
undertake and agree with you that if default shall be made by M/s. _____________________________________
in performing any of the terms and conditions of the tender or in payment of any money payable to Bharat
Petroleum Corporation Limited. We shall on demand pay to you in such matter as to you may direct the said
amount of Rupees _____________________________________________________________ only or such
portion thereof not exceeding the said sum as you may from time to time require.
2. You will have the full liberty without reference to us and without effecting this guarantee postpones for any time
or from time to time the exercise of any of the powers and rights conferred on you under the contract with the
said ______________ and to enforce or to for bear from endorsing any power of rights or by reason of time being
given to the said which under law relating to the sureties would but for provision have the effect of releasing us.
3. Your right to recover the said sum of Rs. ________ (Rupees ___________________________________________ )
from us in manner aforesaid will not be affected or suspended by reason of the fact that any dispute or disputes
have been raised by the said M/s. ___________________________________________ and/or that any dispute
or disputes are pending before any officer, tribunal or court.
4. The guarantee herein contained shall not be determined or affected by the liquidation or winding up, dissolution
or change of constitution or insolvency of the said __________________________________ but shall in all
respects and for all purposes be binding operative units payment of all money due to you in respect of such
liabilities is paid.
Our liability under this guarantee is restricted to Rupees ____________________________________ Our guarantees
shall remain in force until ____________________________________ unless a suit or action to enforce a
claim under ______________________________ Guarantee is filed against us within six months from
_________________________________ (which is date of expiry of guarantee) all our rights under the said guarantee
shall be forfeited and shall be relieved and discharged from all liabilities thereunder.
We have power to issue this guarantee in your favour under Memorandum and Articles of Association and the
undersigned has full power to do under the Power of Attorney dated granted to him by the Bank.
Yours faithfully,
________________ Bank by its Constituted Attorney Signature of a person duly authorized to sign on behalf of the
bank.
BHARAT PETROLEUM CORPORATION LTD ACKNOWLEDGEMENT
OF CONTRACT and confirm our acceptance to all the terms and conditions as mentioned herein in this General
Conditions of Contract and we are hereby returning this copy of Acknowledgement duly signed.
Signature: _________________________________________
Name: ____________________________________________
Designation: _______________________________________
(Seal / Stamp)
Place: ________________
Date: ________________