page 1 of 127 - vizag steel · 2006-08-29 · page 6 of 127 5.1 security deposit: on acceptance of...

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VISAKHAPATNAM STEEL PLANT

GENERAL CONDITIONS OF CONTRACT

AND

SPECIAL CONDITIONS OF CONTRACT

FOR

TURNKEY JOBS

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GENERAL CONDITIONS OF CONTRACT

INCLUDING FORM OF TENDER

INVITATION TO TENDER AND ARTICLES OF AGREEMENT

FOR

SUPPLY, ERECTION, TESTING AND COMMISSIONING

OF

PLANT, MACHINERY & EQUIPMENT

PROJECTS DIVISION VISAKHAPATNAM STEEL PLANT

(RASHTRIYA ISPAT NIGAM LIMITED) A-BLOCK, PROJECT OFFICE VISAKHAPATNAM-530 031

(ANDHRA PRADESH) Telephone: 2518277, 2518429 Fax: 0891-2518764

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VISAKHAPATNAM STEEL PLANT (RASHTRIYA ISPAT NIGAM LIMITED)

Projects Division Project Office A-Block

VISAKHAPATNAM-530 031 (Andhra Pradesh)

NAME OF WORK ____________________________________________ ____________________________________________ ____________________________________________

General Conditions of Contract including Form of Tender, Invitation to Tender, Articles of Agreement

for Supply, Erection, Testing and Commissioning

of Plant, Machinery and Equipment

This Tender Document is issued to Name of Tenderer ____________________________________ Address of Tenderer ____________________________________ ____________________________________ ____________________________________ Issued by: _________________________ Visakhapatnam Steel Plant

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FORM OF TENDER

VISAKHAPATNAM STEEL PLANT (Rashtriya Ispat Nigam Limited)

Projects Division Project Office, A-Block

Visakhapatnam-530 031 (A.P) Ref: Visakhapatnam Steel Plant - Tender Documents and Specification No.............. ………….for............................... Dear Sirs, With reference to the tender invited by Visakhapatnam Steel Plant, I/We

have examined the General conditions of Contract, Special conditions of Contract, Articles of Agreement, Invitation to Tender, Instructions to Tenderer, Specifications, Preamble to Bill of Quantities, Bill of Quantities and the Drawings for the above work, I/We hereby offer to Supply, Erect, Test and Commission the Plant, Machinery and Equipment as per the Contract documents in conformity with the said General Conditions of Contract, Special Conditions of Contract, Articles of Agreement, Invitation to Tender, Specifications, Preamble to Bill of Quantities, Bill of Quantities and the Drawings at the respective rates mentioned in the Bill of Quantities (PRICE BID).

I/We undertake to deliver and complete the whole of the works

comprised in the Contract within ........ calendar months from the date of commencement of work.

I/We have deposited as earnest money a sum of Rs.......... which

amount is not to bear any interest and I/We do hereby agree that this sum shall be forfeited by you if I/We fail to execute the agreement when called upon to do so.

I/We hereby agree that unless and until the formal agreement is

prepared and executed in accordance with the Articles of Agreement, this tender together with your written letter of intent thereof, shall constitute a binding Contract between us.

I/We hereby understand that you are not bound to accept the lowest or

any tender you may receive. Yours faithfully, Name of Partners of the Firm Signature.............. 1............. Address................ 2............. 3............ Date. ................

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INVITATION TO TENDER

1. Sealed tenders marked "Original" and superscribed 'Tender for

....................................' should be sent to Dy General Manager (Contracts), Visakhapatnam Steel Plant, Project Office, A-Block Visakhapatnam - 530 031, Andhra Pradesh, India so as to reach not later than specified time and date.

2. Tenders received after specified time and date will be treated late and are

liable to be ignored summarily and returned “UNOPENED.” 3. Tenders will be opened at specified time and date in the Office of Dy

General Manager (Contracts), Visakhapatnam Steel Plant, Project Office A-Block, Visakhapatnam - 530 031, in the presence of the tenderers or their representatives should they choose to be present.

4. The tenderer is required to deposit a lumpsum amount of

Rs._____________ as Earnest Money Deposit in any of the following form and attach official receipt thereof, failing which the tender shall not be considered. No interest shall be allowed on the Earnest Money deposit.

(a) Deposit Receipt, Pay Order, Demand Drafts and Bank Guarantee

Bonds from any scheduled bank in India, payable at Visakhapatnam. If the Earnest money is deposited in the form of Bank Guarantee,the same shall be in the proforma attached,from any of the Indian nationalised banks or scheduled banks or any foreign banks acceptable to the Employer and which is having branches in India.

Note: 1. Fixed Deposit receipts will not be accepted for Earnest money and

the deposit receipts referred to above cover only receipts at call or receipts for the deposits of earnest money to the credit of Rashtriya Ispat Nigam Ltd, Visakhapatnam Steel Plant.

2. Earnest Money in the form of cheque will not be accepted.

(b) Deposit receipts etc. are to be drawn in favour of "Rashtriya Ispat Nigam Ltd, Visakhapatnam Steel Plant".

The Earnest Money will be refunded to the unsuccessful tenderer within

reasonable time without any interest. The earnest money deposited by the successful tenderer will be retained until the security deposit for the due fulfillment of the Contracts, but shall be forfeited if the Contractor fails to deposit the required security money, execute the agreement and/or start the work within reasonable time (to be determined by the Engineer) after written acceptance of his tender/issue of Letter of Intent.

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5.1 Security Deposit: On acceptance of the tender, the Contractor shall

furnish a security deposit in any of the forms mentioned in clause 4 above. If it is submitted in the form of a Bank Guarantee the same shall be in the proforma attached, from any of the Indian nationalised or scheduled Banks or any Foreign Bank acceptable to the Employer which is having branches in India, before conclusion of contract/agreement, for an amount equivalent to 5% (Five percent) of the total value of the Contract.

Government undertaking will not be required to submit Security Deposit or Bank Guarantee for advance but however they shall submit “Performance Guarantee Bond” in lieu of Security Deposit and Indemnity Bond in lieu of Bank Guarantee for Advance in approved formats.

5.2 In case the Security Deposit is submitted in the form of Bank Guarantee,

the same shall be for the due and faithful performance of the Contract and shall remain binding notwithstanding such variations, alterations or extensions of time as may be made, given conceded or agreed to between the Contractor and the Employer under these General Conditions or otherwise.

5.3 The Bank Guarantee for security deposit shall remain in full force and

effect during the period of the Contract and shall continue to be enforceable till the expiry of the guarantee period. The Bank guarantee shall provide for extension of validity on demand by the Employer. Such extension of validity shall be confirmed by the guarantor bank without any reference to the Contractor. On the performance and completion of the Contract in all respects, the Bank guarantee shall be returned to the Contractor as stated in clause 23.6 of GCC.

5.4 Should the extent or the object of the Contract be altered during the

execution of the Contract in such a way as to effect an increase or reduction on the Contract Price by more than 10% the amount in the Bank guarantee shall be increased or reduced correspondingly.

5.5 The Bank Guarantee and/or any amendment thereto shall be executed

on a non-judicial stamped paper of requisite money value as prescribed by the Statute.

5.6 Upon submission of Security Deposit, the Earnest Money Deposit

submitted by the successful tenderer shall be returned to him. 6.0 The tendered rates and amounts shall be written in ink and in English

both in figures and in words in the appropriate columns in the Bill of Quantities. In case of any discrepancy between the rate and amount, the rate will govern. In case of any discrepancy between the rates in words and the rates in figures, the rates in words shall prevail. All alterations or erasers shall be initialed by the tenderer with date.

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7.0 If a tenderer seeks to clarify his quotations or rates, this should only be done in a separate covering letter. Other clarifications may also be considered. The covering letter enclosing the tender should be submitted in ten copies and if the contents of the covering letter are to be considered as part of the quotations, this shall be specifically mentioned by the tenderer in his covering letter.

8.0 The tenderer shall submit along with his tender the following: (a) Photostat copy of Registration Certificate if any, from Central or

State Government, P.W.D., M.E.S., Railways, or any Public Sector undertakings.

b) Certificate from any Scheduled Bank to prove his financial ability

to undertake the work. c) Proof of technical & organisational competence to execute the

work. d) Auditor’s Report/Chartered Accountant’s Report/Balance Sheet

etc. e) Details of Registration under P.F. Act for their or his employees at

site. f) Details of jobs undertaken during the past five years with

necessary proof and completion certificate indicating performance. 9.0 Full information shall also be given by the tenderer in respect of the following: a) If individuals, 1) his full name, address and place of business,

2)his financial status, 3) his previous experience. b) In case of Partnership firms: i) the names of all partners and their

addresses, ii) the financial status of the firm and its partners, iii) previous experience of the firm and its partners, iv) Copy of Partnership deed v) A Copy of latest Annual audited profit & loss statement.

c) In case of Companies: 1) Date and place of Registration, including

date of commencement certificate in case of Public Companies. Certified copies of Memorandum and Articles of Association are also to be furnished, 2)Nature of business carried out by the Company and the provisions of its memorandum relating thereto, 3) Names and particulars, including addresses of all the Directors, 4) Previous experience, 5) its authorised, Subscribed and paid up Capital, 6) A copy of latest annual report.

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10.0 All rates and prices in the tender shall cover excise duty,customs

duty,sales tax and other taxes, octroi duties and other duties. 11.0 Tenders submitted by tenderers shall remain valid for acceptance for a

minimum period as stated in Para 9.0 of Instructions to Tenderers. In case of tenderer revoking or withdrawing/canceling his tender, varying any term in regard thereof during the validity period of the tender without the written consent of Employer, the tender submitted shall be liable for rejection and the Employer shall forfeit the earnest money paid by the tenderer along with the tender and the tenderer is liable for any other action deemed fit as per the discretion of the Employer.

12.0 Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant reserves the

right to reject any or all the tender/s, or to accept any tender wholly or in part, or drop the proposal of receiving tenders at any time without assigning any reason thereof and without being liable to refund the cost of the tender documents there upon and without liability for any loss or damage if any suffered by the tenderer in submitting his offer and /or conducting discussions etc.

13.0 The tenderers shall sign, all schedules, specifications, special conditions

etc., in token of acceptance thereof. The signature on the tender schedule alone shall also be deemed to be taken as acceptance of all these documents enclosed to the tender.

14.0 Details of works of similar type and magnitude carried out by the

tenderer shall be furnished in the proforma in Appendix-I to Invitation to Tender.

15.0 Details of construction plants and equipments available with the

tenderer for using in this work shall be furnished in proforma shown in Appendix-II to Invitation to Tender.

16.0 If the tender receiving date happens to be VSP's closed holiday or an

extra-ordinary holiday, the tender will be received upto 11.00 AM on the following working day and the same shall be opened immediately thereafter.

17.0 SMALL SCALE INDUSTRIES/PUBLIC SECTOR ENTERPRISES 17.1 Small Scale Industries who are registered with Industries Department,

Government of Andhra Pradesh or the National Small Industries Corporation Ltd.(NSIC) are exempted from submission of Earnest money deposit and Security Deposit and shall submit a copy of the permanent registration of their Small Scale Industries along with their tender. It may please be noted that only those Small Scale Industries who are registered for the particular trade/Item for which this tender is relevant, will be exempted from submission of Earnest money deposit and Security Deposit. Parties with their provisional/ temporary registration and not

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registered(Permanent) for the particular trade/Item for which tender is being invited would not be eligible for exemption.

17.2 The Public Sector Enterprises or State/Central Govt. Undertakings are

also exempted from submission of Earnest Money Deposit and Security Deposit and they shall submit a letter requesting for exemption from submission of EMD along with the offer.

18.0 INSTRUCTIONS REGARDING BANK GUARANTEE: 18.1 Bank Guarantee for EMD shall be submitted in a closed envelope as

sealed by the Bank. This sealed envelope shall be submitted by the tenderer along with the quotation. The Bank Guarantee for the EMD shall be valid for one month beyond the validity of the offer submitted.

18.2 a) All Bank Guarantees for Initial Security Deposit, Mobilisation

Advance and other payments and extensions of Bank Guarantees shall be sent in a sealed envelope directly by the Bank through Registered Post to the officers of Visakhapatnam Steel Plant.

b) Bank Guarantees / Extensions of Bank Guarantees submitted by

the Contractors directly will not be admitted. 18.3 The Non-judicial stamp paper for the Bank Guarantee should be

purchased in the name of executing Bank only. 19.0 The successful tenderers shall submit the following documents for

conclusion of the formal contract/agreement immediately after the letter of intent is issued:

1. Duplicate copy of detailed LOI duly signed on all pages as a token

of its acceptance. 2. Security Deposit as per clause 5.1 above. 3. Non-Judicial Stamp Paper of value Rs.100/- purchased in Andhra

Pradesh for the Form of Agreement. 4. Copy of Registration with PF Authorities or Clearance from CLC

Section (Personnel Department) of VSP. 5. Copy of Labour License from the Dy Commissioner of Labour,

Govt. of AP or clearance from CLC Section (Personnel Department) of VSP.

6. Permanent Account Number allotted by Income Tax Department and copy of Auditor’s Report/Chartered Accountant’s Report/Balance Sheet etc. in proof of turnover.

7. Copy of Registered Partnership Deed or an Affidavit of Sole

Proprietorship duly notarized.

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8. Copy of Power of Attorney authorising the individual to sign the

Agreement duly notarized.

9. Copy of the Registration under APGST Act if applicable.

20.0 INSURANCE POLICY: 20.1 The Contractor shall take insurance policy for payment of an exgratia

amount of Rs.1,00,000/- (Rupees One lakh only) per head in case of fatal accident to the contract labour engaged by him in addition to the Workmen's Compensation Insurance Policy. As and when a fatal accident takes place, along with the workmen's compensation, the contractor is required to pay the exgratia amount within 30 (thirty) days from the date of accident.

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APPENDIX-I

(Invitation to Tender)

Construction / Maintenance / Expansion of

Visakhapatnam Steel Plant Tenderers must fill in the under-noted columns: Sl No.

Full Particulars of similar work carried out by the Tenderer

Amount of work

Completion time as stated in tender

Actual completion time and year of execution

Name & complete postal address of authorities for whom work was carried out with Telephone no. and Fax. No. if any

A. Work executed in the Name of Tenderer: B. Work executed by tenderer not in the name of the Tenderer but in a

different name or in a different partnership or as subcontractor to a principal Contractor.

__________________________________________________________________________________

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NB: A separate sheet may, if required, be used for giving the details in the proforma mentioned above. The sheet shall be duly signed and stitched to the tender.

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APPENDIX-II

(Invitation to Tender)

Construction / Maintenance / Expansion of

Visakhapatnam Steel Plant Schedule of plant and Construction / Maintenance Equipment with details of each to be employed by the Tenderer for the contract. Sl. No

Description Details Approximate date when it will be employed at site

Period of retention at site

___________________________________________________________________________ NB: A separate sheet may, if required, be used for giving the details in the proforma mentioned above. The sheet shall be duly signed and stitched to the tender.

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INSTRUCTIONS TO THE TENDERER

1.0 SCOPE OF WORK: 1.1 Attention is invited to the tender specification No:_________________

_____________ with all the technical details, data etc. which indicates the scope of work. This tender specification is to be read in conjunction with the General Conditions of Contract, Special Conditions of Contract and the drawings and BOQ therein.

2.0 SUPPLY & ERECTION OF PLANT & EQUIPMENT: 2.1 The Tenderer shall carefully study the Tender Specification and drawings

and shall satisfy himself of the suitability of the Equipment and layouts as given in the enclosed Tender Specification, and shall take full responsibility for the efficient operation and guarantee of specified outputs of the Plant and Equipment offered.

2.2 The analysis of the raw materials, where applicable, shall be treated as

guiding figures only. The successful Tenderer shall take the samples and test them in laboratories either in India or abroad, as may be required, and satisfy himself of the suitability of the materials for the processes and the Plant and Equipment offered by him.

2.3 The Tenderer shall inspect the Site and shall satisfy himself of the Site

conditions and shall collect any other information which he may require before submitting the tender. Claims and objections due to ignorance of Site conditions will not be considered after submission of the tender.

2.4 The tenderer shall include in his tender, Plant, Machinery and

Equipment and services specified in the tender documents including complete civil, mechanical, electrical, automation, communication, handling, air conditioning and ventilation equipment, refractories, measuring and control instruments, fabricated structural steel work, platforms, all necessary piping, valves and fittings, all cables and all foundation bolts, anchoring parts etc. as required for the completeness of the work. In addition, the Tenderer shall include any additional Equipment and Materials which are not specifically mentioned in the Tender, but are required to complete the Plant offered in every respect and for safe and efficient operation and guaranteed performance and shall specifically indicate the same in his offer.

2.5 For procurement from indigenous sources, no foreign exchange or import

licences for importing Equipment, components, spares, raw materials or other services will be arranged for or provided by the Employer. In case the offered Plant and Equipment involves expenditure in foreign

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exchange, this shall be clearly indicated together with a statement as to how this is being arranged by the Tenderer.

2.6 Where importation is envisaged, the Tenderer shall offer Plant and

Equipment with maximum indigenous components, for which payments shall be made in Indian Rupees. Other things being equal, the Tenderer accepting the largest percentage of the Contract price in Indian Rupees will be given preference. The tenderer shall, however, take complete responsibility for coordination of the supplies and adhering to the Delivery and other Schedules and give performance guarantees for the composite Plant, Machinery and Equipment including the indigenous portions. The Tenderer shall have a Resident Representative in India for this purpose. The address of such representative in India shall be indicated in the tender.

2.7 It is the intention of the Employer to obtain to the maximum extent

possible Equipment and Materials from indigenous sources. These shall include various electrical equipment and controls including drives and controls as well as other equipment, components and materials such as cables, valves, pipes, refractories, insulation materials, fabricated components, etc. available from indigenous sources.

2.8 The Tenderer shall clearly indicate the items offered from indigenous

sources together with the name of the indigenous supplier/manufacturer against the respective items and their experience in the line.

2.9 The Tenderer shall clearly and separately state the item(s) not included

in his offer, though specified in the tender documents. 2.10 The offer shall be for Equipment according to the Tender Specification.

However, if the Tenderer desires, he may offer additionally a quotation for alternative design as he considers advisable and capable of meeting the specified performance giving full details and reasons thereof.

2.11 The Tenderer shall furnish in the tender an item-wise list of spare parts

for two years' normal working of the Plant. Spare parts not manufactured directly by the successful Tenderer shall be properly identified and description/catalogue etc. given in sufficient detail to enable the Employer to procure these directly from the manufacturer, if required.

2.12 The Tenderer shall include in the tender for supply of all drawings and

documents in accordance with Clause 5 of the General Conditions of Contract.

2.13 The Tenderer shall include in the tender for supply along with the Plant

and Equipment, sufficient quantity of commissioning spares necessary for commissioning of the Plant and Equipment.

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2.14 The Tenderer shall include in the tender for supply of a minimum of 4 sets of special tools for repair and maintenance of the Equipment and these shall be listed in the offer.

2.15 The Tenderer offering maximum erection materials and services from

indigenous sources and utilising the maximum Indian manpower would be given preference.

3.0 PARTICULARS TO BE FURNISHED WITH THE TENDER: 3.1 The Tenderer shall furnish in his tender the following particulars: 3.2 A detailed write up & working of the Equipment/process being offered

with full technical parameters and specifications, performance characteristics, constructional & operational features, etc.

3.3 General arrangement and layout drawings with bills of materials giving

location and clearances of various sub units, major parameters and important dimensions etc. as well as necessary elevations, sections, and plans for studying the suitability of the offered items. Along with general arrangement drawings, indicative foundation outline drawings with load data and bolt locations including excavation and civil structural drawings may be furnished. In case of standard bought out items, illustrated leaflets with make and type of items should be furnished.

3.4 Information on associated items not forming part of the quotation, but

which may be required to be ordered by the Purchaser on other agencies, shall be furnished in clear terms in the write-up and the drawings desired at par. 3.1.1 and 3.1.2 above. Details of auxiliaries which, though not a part of the quotation, are essential for the safe and efficient working of the Plant and Equipment shall also be furnished.

3.5 Requirement of raw material & consumption figures for electric power,

water, fuel, oxygen, acetylene, compressed air and other utilities and consumables for commission and for operation of the system. The figures shall indicate the average and maximum values of hourly and annual consumption rates. Discharge figures of Industrial effluents and characteristics of effluents shall be indicated.

3.6 Complete information about all consumables such as flushing oils,

lubricants, etc. required during start-up, commissioning, initial filling and yearly requirements for normal operations. The equivalent brands and specifications for all consumables shall be furnished.

3.7 Details/schematic diagram of power distribution, controls and

instrumentation giving rating, parameters and range of items offered. A layout plan of electrical items shall also be furnished.

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3.8 Details of consumption, output and performance guarantees of the Plant and Equipment.

3.9 Estimated cost of operation of the Plant and Equipment. 3.10 Itemised weights for the complete Plant and Equipment. 3.11 List of Tests proposed to be conducted both at the factory and at the Site

during commissioning. 3.12 Recommended operation and maintenance personnel, semi-skilled and

skilled, for the efficient operation and maintenance of the Plant and Equipment offered.

3.13 Types, specification, expected life and other details of refractories required. 3.14 List of commissioning and maintenance spares, special tools and tackle

for Erection, operation and maintenance. 3.15 A list of similar jobs engineered and executed by the Tenderer. The list

should indicate capacity of previous jobs with full address of user organisation.

3.16 Reply to the questionnaire included in the tender documents. 4.0 EXCEPTIONS TO THE SPECIFICATIONS OR TENDER DOCUMENTS: 4.1 Each exception to the specifications or other parts of the tender

documents shall be listed separately by the Tenderer. If exceptions are not clearly listed as such, they will not be considered by the Employer later.

5.0 CAPACITY OF THE TENDERER : 5.1 Technical capacity : 5.1.1 The tenderers are requested to furnish the full details of similar jobs

executed to ascertain their performance. Their performance will be considered during technical evaluation of their offers.

5.1.2 The tenderer shall satisfy the Employer that he possesses the necessary

technical experience and qualification and that he has at his disposal suitable modern facilities and staff of specialised employees to ensure that his contract work is of best quality and workmanship according to the latest Engineering practices. The tenderer shall furnish necessary particulars in this behalf with the tenderer.

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5.2 LEGAL CAPACITY: 5.2.1 The tenderer shall satisfy the Employer that he is competent and

authorised to submit tender and/or to enter into a legally binding Contract with the Employer. To this effect, any person giving a tender shall submit documentary evidence that his signature on the tender submitted by him, is legally binding upon himself, his firm or company, as the case may be.

5.2.2 A person signing the tender form or any document forming part of the

contract on behalf of another shall be deemed to warrant that he has authority to bind such other and if it is discovered at any time that the person so signing had no authority to do so, the Employer may, without prejudice to other legal remedies, cancel the contract and hold the tenderer liable for all costs and damages.

6.0 AFTER SALES SERVICES 6.1 The tenderer shall indicate in the tender, the scope and extent of "after-

sales service" included in his offer. 7.0 SUBMISSION AND ARRANGEMENT OF TENDER: 7.1 The tender shall be submitted in English Language. 7.2 Arrangement of Tender: 7.2.1 The tender shall be neatly arranged, plain and intelligible, type written

on white paper with consecutively numbered pages in solid binding and shall be submitted in three separate parts as detailed below. No part should contain any terms and conditions printed or otherwise, which are not applicable to the tender. Insertions, postscripts, additions and alterations shall not be recognised, unless confirmed under the Tenderer's signature.

7.3 PART I - TECHNICAL AND COMMERCIAL: 7.4 A) TECHNICAL: This part should only contain the technical particulars of the tenders in

any form. The following are to be clearly indicated in this part: 1) Details of Plant, Machinery and Equipment and services offered as

para 2.0 of Instructions to tenderers. 2) Particulars to be furnished with the tender as called for in para

3.0 of Instructions to tenderers.

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3) Exception to the specification or other parts of the tender

documents as per para 4.1 of Instructions to tenderers. 4) Detailed statement of similar plants built by the Tenderer during

the last 20 years as per para 3.15 of Instructions to tenderers. 5) A copy of the price bid format as quoted WITHOUT PRICES to

indicate that all the items as required in the tender are quoted and to indicate whether any modifications or additions are done in items or item description. PRICES shall not be indicated in this part.

B) COMMERCIAL: This part should contain all the commercial terms and conditions (but

not the price) applicable to the tender including the following: 1) Delivery schedule with details of time schedule and net work

diagram as per clause No:8.2 of GCC 2) Confirmation to the effect that prices quoted will be firm as per

clause 20.0 of SCC. 3) Confirmation to the effect that all insurances as per clause No:9 of

GCC will be arranged by the successful Tenderer. 4) Details of guarantee and performance as per clause 21.0 of GCC 5) Confirmation to the effect that the terms of payment as per clause

21.0 of SCC is acceptable if not the payment terms offered may be clearly stipulated.

6) Confirmation to the effect that all taxes, duties etc. will be met by

the successful Tenderer as per clause 20.0 of SCC 7) Documentary evidence to prove the legal capacity as called for in

para 5.0 of Instructions to tenderers. 8) Auditor’s Report/Chartered Accountant’s Report/Balance Sheet as

per para 8.0 of Invitation to tenderers. 9) Details of after-sales-service proposed as per para 6.0 of

Instructions to tenderers. 10) Validity of the tender as per para 9.0 of Instructions to tenderers. 11) Details of Earnest money deposit as per clause 4.0 of Invitation to

tenderers.

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12) Confirmation to the effect that all the terms mentioned in the

General conditions of Contract are acceptable to the Tenderer. 13) Confirmation to the effect that the prices quoted in the price bid

are for the scope of Supply and services detailed in Part-I (Technical) and comply with commercial conditions in Part-II offer.

14) Any other details (excluding price). 7.5 PART II - PRICES 7.5.1 The Tenderer shall quote in this part prices as called for in clause 20.0 of

SCC in respect of all items of plant, machinery and equipment, spares, services etc. The prices should be expressed both in figures and words and shall be quoted as per the format given in the price schedule/Bill of quantities given in the specification / tender document.

7.6 Tenders must be submitted, in three parts as mentioned above, each in

ten copies and each part in separate sealed covers superscribing the tender number and name of the work. These three sealed covers shall be kept in another cover (which shall also be sealed). The tender enquiry reference and date of opening of the tender shall be indicated on this outer cover and also on the cover containing Part-I and Part-II offers.

7.7 To facilitate identification, each envelope containing Part-I and Part-II

offers shall be superscribed with the details as below: 1) Envelope containing Part-I A offer a) Name of the work : b) Due Date & time : c) Part-IA : Technical offer 2) Envelope containing Part-I B offer a) Name of the work : b) Due Date & time : c) Part-IB : Commercial Bid 3) Envelope containing Part-II offer a) Name of the work : b) Due Date & time : c) Part-II : Price Bid The outer envelope containing above three envelopes shall be

superscribed as follows:

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a) Name of the work:- b) Due date & time :- and addressed to the Dy General Manager (Contracts), Project Office

Complex,'A' Block, Visakhapatnam Steel Plant, Visakhapatnam-530 031 (A.P). All the Envelopes shall bear the Tenderer's name, address in full on the left hand bottom corner.

The Tenderer shall superscribe properly on the respective envelopes

while submitting tender. Tender shall be sent by registered post so as to reach the office of Dy

General Manager (C)/Contracts before the due date & time or handed over personally against receipt, by the time and date and at the place specified in the Invitation to Tender.

8.0 OPENING OF TENDERS: 8.1 On the date and time mentioned in the Invitation to Tender, the envelope

containing Part I and Part II will be opened at the office of the Dy General Manager (Contracts), Visakhapatnam Steel Plant, Project Office Complex, 'A' Block, Visakhapatnam-530 031, Andhra Pradesh, India. The Tenderer is at liberty to be present or authorise a representative to be present at the opening of the tender.

8.1.1 The Tenderer shall be always ready to furnish clarifications

/informations and attend discussions, as called for by the Employer, at short notices. Arising out of such clarifications and discussions, if any variation in the price becomes necessary, the Tenderer may, if he so desires, submit a supplementary/revised offer so as to meet fully the requirements of the Employer indicating the variation to the price quoted earlier with reason thereof. The variation in price must be based on realistic estimate of the cost of the modifications to the original tender. This supplementary/revised offer (in respect of prices only) should also be submitted in a separate sealed cover superscribing the tender number,Name of the work and the words 'Revised Prices'. The supplementary/revised offer should not be sent piece-meal. It should be sent at the request of the Employer by the date and time specified by him.

8.2 After all the clarifications/information are received to the satisfaction of

the Employer, the envelope containing Part II - Prices, along with the supplementary/revised offer, if any, will be opened in the presence of such Tenderers/their authorised representatives, on a date to be intimataed.

8.3 Tenders of those tenderers who fail to answer all the clarifications,

informations as called for to the satisfaction of the Employer, shall not be considered further.

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9.0 PERIOD OF VALIDITY OF TENDER 9.1 The tender and the prices quoted shall be deemed to remain valid for a

period of six months from the date of opening of Part I - Technical offer and Commercial offer.

10.0 QUERIES/CLARIFICATIONS: 10.1 All technical queries / clarifications shall be furnished by the Tenderer to

Design & Engineering Dept. / Concerned Dept of Visakhapatnam Steel Plant.

10.2 All commercial queries / clarifications shall be referred by the Tenderer

to the Dy General Manager (Contracts), Visakhapatnam Steel Plant. 11.0 All Tenderers are requested to take special note of the above instructions

for strict compliance. 12.0 Successful tenderer should be in a position to produce the original

certificates in support of the attested copies of relevant documents enclosed alongwith application for tender document after opening of the price bids.

13.0 Failure to produce the original certificates at this stage in support of the

attested copies of experience/qualification etc., submitted earlier would result in disqualification and forfeiture of EMD.

14.0 After the issue of LOI, if any of the supporting documents given by the

party is found ingenuine, the party is liable to be debarred from participation in VSP tenders for a period of 5(five) years.

15.0 Failure to execute the work after LOI is given, will make the party liable

for debarring for a period of 2(two) years. 16.0 The tenderer should clearly understand and comply with Factories Act

1948 and relieve the Female Workers from their work-site within the restricted working hours prescribed therein under Section 66 (b).

17.0 If it comes to the notice of VSP at any stage right from request for enlistment / tender document that any of the certificates / documents submitted by applicants for enlistment or by bidders are found to be false / fake / doctored, the party will be debarred from participation in all VSP tenders for a period of 05 (Five) years including termination of contract, if awarded EMD / Security Deposit etc., if any, will be forfeited. The Contracting Agency in such cases shall make good to VSP any loss or damage resulting from such termination Contracts in operation any where in VSP will also be terminated with attendant fall outs like

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forfeiture of EMD / Security Deposit, if any, and recovery of risk and cost charges etc. Decision of VSP Management will be final and binding.

18.0 Furnishing Bank Account Data for e-Payment.

18.1 The successful tenderer is to submit Bank Account details for e-payment as per enclosed format at Annexure, duly certified by authorised signatory of Bank.

18.2 Tenderers are requested to sign the blank format as above for e-payment in token of acceptance of e-payment.

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ANNEXURE

FORMAT FOR E-PAYMENT

Bank Account Data for e-payment.

1. Option : EFT / Direct Credit

2. Name & Style of A/c. : (30 Characters, alpha Numeric, Space permitted) 3. Account Number : (15 characters, Alpha Numeric) 4. Account Type : (Numeric codes shown below) 10 Saving Bank SB 11 Current Account CA 13 Cash Credit CC 14 Loan Account LA 5. Bank Name : 3-Digt MICR Code: 6. Branch Name : 3-Digit MICR Code: 7. City : 3-Digit MICR Code:

Signature of the Tenderer

Name:

Design:

Seal: ______________________________________________________________________________

____

CERTIFICATE Certified that the above particulars are matching with our records in respect of the above firm. Sd/……………………….. Authorised signatory of the Bank Bank Seal.

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Note: Details of EFT / Direct Credit are at overleaf..

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DETAILS OF EFT / DIRECT CREDIT

EFT System Under this system Banks offer their customers money Transfer service from account of any bank branch to any other Bank Branch. The EFT system presently covers all the branches of about 77 banks located at 15 centers indicated below, where clearing houses are managed by RBI. I.e. 1)New Delhi, 2) Chandigarh, 3) Kanpur, 4) Jaipur, 5) Ahmedabad, 6) Mumbai, 7) Nagpur, 8) Hyderabad, 9) Bangalore, 10), Chennai, 11) Trivendrum, 12) Koltata, 13) Bhubaneswar, 14) Guwahati, 15) Patna. Direct Credit: Contractors option for this system may open Bank Accounts with any one of the following Banks.: a) State Bank of India - Steel Plant Branch. b) Canara Bank - Steel Plant Branch. c) Bank of Baroda - Steel Plant Branch. d) State Bank of Hyderabad - Steel Plant Township Branch. e) Andhra Bank - Steel Plant Township Branch. f) UCO Bank - Steel Plant Township Branch. g) IDBI - Visakhapatnam Branch.

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AGREEMENT NO: VSP/CONT/ /200 - 200 ,DATED:...........

ARTICLES OF AGREEMENT ARTICLES OF AGREEMENT made at Visakhapatnam this ............. day of .... .. 200... between Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, having its registered office at Main Administrative Building, Visakhapatnam-530 031 (hereinafter referred to as the Employer which expression shall include its successors and assigns) of the one part and M/s........................ (herein after referred to as Contractor which expression shall include its successors and assigns) of the other part WHEREAS the employer is desirous that certain works viz............................................. should be executed as envisaged in the Tender Documents and specification No..... and has accepted a Tender by the Contractor for the Supply, erection, testing & commissioning of the plant, machinery & equipment as per the specification and other documents of the contract. Now this Agreement Witness as follows: 1. In this agreement words and expressions shall have the same meanings

as are respectively assigned to them in the General Conditions of Contract here in after referred to.

2. The following documents shall be deemed to form and be read and

construed as part of this Agreement, viz., a) Invitation to tender. b) Letter of Intent or Written Acceptance of tender c) Special Conditions of Contract d) General Conditions of Contract e) Technical Documents 3. In Consideration of the payments to be made by the Employer to the

Contractor as hereinafter mentioned, the Contractor hereby covenants with the Employer to supply, erect, test & commission the plant, machinery and equipment in conformity in all respects with the provisions of the Contract.

4. The Employer hereby covenants to pay the Contractor in consideration of

the above works the Contract Price at the times and in the manner described by the Contract.

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5. No amendment to this agreement shall be valid or be of any effect unless the same is agreed to in writing by both the parties hereto and specifically stated to be an amendment to this agreement.

6. All disputes arising out of or in any way connected with this Agreement

shall be deemed to have arisen in Andhra Pradesh and only the Courts in Andhra Pradesh shall have jurisdiction to determine the same.

7. The several parts of the Contract have been read to us and fully

understood by us. As WITNESS our hands this ............ day of ........ , 200... Signed by the said in the presence of ………………………............................. .............................. Employer Signed by the said in the presence of ………………..................................... .............................. Contractor

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VISAKHAPATNAM STEEL PLANT (RASHTRIYA ISPAT NIGAM LIMITED)

INDEX TO GENERAL CONDITIONS OF CONTRACT

Clause No.

Description Page No in G.C.C

1. Definition and Interpretation 2. Engineer 3. Assignment and Subletting 4. Extent and Scope of Contract 5. Contract Documents,drawings and

specifications

6. General Obligations 7. Progress Reports 8. Commencement time and delays 9. Insurance 10. Inspection 11. Tests at site 12. Tests on completion 13. Packing,protective painting and marking

14 Access to and possession of site 15. Obligation of the Contractor for erection

of plant,machinery and equipment

16. Statutory & other obligations 17. Work,materials and plant 18. Preliminary acceptance and taking over 19. Performance tests and provisional

acceptance

20. Final acceptance 21. Guarantee and Guarantee period 22. Work & services to be provided by the

Employer

23. Certificate of payment 24. Liquidated damages for late delivery and

delay in erection

25. Remedies & powers 26. Force-Majeure 27. Rights of Employer to vary,suspend or cancel

the Contract

28. Settlement of disputes 29. Training of Employees personnel 30. Non waival of defaults 31. General direction of work 32. General

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GENERAL CONDITIONS OF CONTRACT 1. DEFINITIONS & INTERPRETATIONS 1.1 Definitions: In the Contract(as hereinafter defined) the following words

and expressions shall have the meaning here by assigned to them except where in the context otherwise requires.

1.1.1 "Employer" means Visakhapatnam Steel Plant, Rashtriya Ispat Nigam

Limited, Visakhapatnam having its Registered Office at Administrative building, Visakhapatnam Steel Plant, Visakhapatnam-530 031 (Andhra Pradesh) and includes Employer's representative or successors or assigns. Employer's representative includes "Engineer".

1.1.2 "Tenderer" shall mean person or persons, firms or Company/corporation

submitting a tender against the invitation to Tender and shall include his/its/their heirs, executors, administrators, legal representatives, successors and his/their Indian Agents.

1.1.3 "Engineer" means an engineer appointed from time to time by the

Employer. 1.1.4 "Engineer's Representative" means any assistant of the engineer or any

clerk of works or any other employee or agent appointed from time to time by the employer or the engineer to perform the duties set forth in clause-2 hereof.

1.1.5 "Works" shall mean and include all works specified or set forth and

required in and by the specifications, drawings and schedule here to annexed or to be implied there from or incidental there to or to be here after specified or required in such explanatory instructions and drawings (being in conformity with the original specifications, Drawings and schedule) and also such additional instructions and drawings not in conformity as aforesaid as shall from time to time be supplied by the Employer during the progress of the work here by contracted for.

1.1.6 "Contract" means invitation to tender, instructions to tenderers, tender

with all the enclosures thereto, articles of agreement, General conditions of Contract, Special conditions of Contract, Specifications, Preamble to Bill of Quantities, priced bill of quantities, schedule of rates and prices (if any), drawings together with the letter of intent and other documents specifically indicated therein.

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1.1.7 "Tender specification" shall mean the design data, drawings, schedules, broad equipment characteristics and other technical details furnished with the Invitation to Tender and subsequent clarifications, if any, furnished by the Employer for the purpose of submitting the offer by the Tenderer.

1.1.8 "Contract Specification" shall include the scope of supply, the schedules,

detailed designs, technical specifications and data, performance characteristics and all such particulars mentioned as such in the Contract and such other modifications required by the Purchaser during the execution of the Contract.

1.1.9 "Contract Price" means the sum named in the tender subject to such

additions thereto or deductions therefrom as may be made under the Provisions hereinafter contained.

1.1.10 "Constructional Plant" means all appliances or things of what so ever

nature required in or about the execution, completion or maintenance of the works or temporary works(as hereinafter defined) but does not include materials or other things intended to form or forming part of the permanent work.

1.1.11 "Temporary Works" means all temporary works of every kind required in

or about the execution, completion or maintenance of the works. 1.1.12 "Tender drawings" shall mean such drawings, plans, sketches and details

as are issued together with the VSP"s Tender Specification for the purpose of submission of tenders.

1.1.13 "Contract Drawings" shall mean the designs,plans, drawings, sketches

and details which have been supplied by the Contractor for the execution of the Contract and approved by the Employer.

1.1.14 "Site" means the lands and other places envisaged by the Employer on,

under, in or through which the works and/or services to be performed are to be executed or carried out and any other lands or places provided by the Employer for the purpose of the contract.

1.1.15 "Notice in Writing" or "Written notice" means a notice in written, typed or

printed characters sent (unless delivered personally or otherwise proved to have been received) by registered post to the last known private or business address or registered office of the Contractor and shall be deemed to have been received when in the ordinary course of post it would have been delivered.

1.1.16 "Supervision"shall mean the successive control and directions given by

the Employer or his representative in relation to Contract Work, either during the manufacture in the Contractor's and/or his sub-Contractor's works and/or at site.

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1.1.17 "Tests" shall include all tests made and material tests in particular without releasing the Contractor of his liability, as may be considered necessary by the Employer or his representative, in order to ascertain the quality and efficiency of the Contract Work or parts thereof and performance of the Plant, Equipment and Machinery.

1.1.18 "Delivery" shall mean delivery by the dates specified in the Contract of

work or of materials which are found acceptable by the Employer and not the forwarding or delivery of Materials which are not to the required standard or which are not delivered by due dates and in case of Erection Work the delivery shall mean the approval by the Employer of the said Erection Work within the period prescribed for its completion.

1.1.19 "The Inspector" shall mean any person or agency nominated by or on

behalf of the Employer to inspect supplies, Materials or work under the Contract.

1.1.20 "Work, Plant, Machinery, Equipment, Facility, Materials or Stores" shall

severally or jointly mean all or any part of the materials, equipment, drawings, supervision of erection and other services required for the design, supply and installation, testing and commissioning of the work which is either specifically required by the Contract or is required in connection with such services and such materials or which is within the scope of the Contract and not specifically excluded by the Contract from the material and services which the Contractor is obliged to furnish under the Contract or implied from Tender Specification, drawings and Schedules annexed to the Contract or incidental thereto.

1.1.21 "Schedule, Work Schedule" shall mean the accepted schedules between

the Contractor and the Employer forming a part of the Contract. 1.1.22 "Letter of Intent" means an intimation from the Employer by a

letter/telex/cable to the Tenderer that his tender has been accepted in accordance with the provisions contained in that letter/telex/cable.

1.1.23 "Date of Award of Contract" shall mean the date of issue of Letter of

Intent or the date of issue of acceptance of tender or date of Contract whichever is earlier.

1.1.24 "Approved" means approved in writing including the subsequent written

confirmation of previous verbal approval and 'Approval' means approval in writing including as aforesaid.

1.1.25 "Month" means a Calendar month according to the Gregorian Calendar. 1.1.26 "Purchaser" shall have the meaning and import as that of the "Employer

" defined above. 1.1.27 "Contractor" shall mean the Tenderer whose tender has been accepted

and shall include his/its/their heirs, executors, administrators, legal

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representatives, successors/assigns and his/their Indian Agents approved by the Purchaser.

1.1.28 "Approval of the Employer" shall mean the written approval by the

Employer or his authorised representative of a document, a drawing or other particulars of matters in relation to the Contract.

1.1.29 "Project" means the project or scheme of the Employer. 1.2 "Singular and Plural" Words importing the singular only also include the

plural and vice versa where the context requires. Words importing persons include firms and corporations and vice versa where the context requires. Words importing masculine gender include the feminine gender and vice versa where the context so requires or permits.

1.3 Words importing persons shall include firms, companies, corporations,

associations or body of individuals whether incorporated or not. Words importing masculine gender or singular number shall also include the feminine gender and plural number and vice-versa where the Contract so requires or permits.

1.4 The Contract and all correspondence between the Purchaser and the

Contractor shall be in English language. 1.5 The headings in the General Conditions of Contract shall not be deemed

to be part thereof or be taken into consideration in the interpretation or construction thereof of the contract.

2.0 ENGINEER 2.1 Duties and powers of Engineer: The Engineer shall have the right of

general supervision and direction of the Contract including the authority to intervene and stop the supply of plant, machinery and materials or to stop the work of execution whenever such stoppage may be necessary, to ensure the proper execution of the contract, to reject all work and materials plant and equipment or any or all work which do not confirm to the contract, to direct or amend the sequence of deliveries of plant and equipment, to direct the application of Contractor's labour and machinery forces to any portion of the work as in his judgment is required, to order the labour and machinery forces increase or diminish and to decide questions which arise in the execution of the Contract unless otherwise provided for in this contract.

2.2 The duties of Engineer's representative are to inspect the plant,

equipment and materials, to follow up and monitor proper delivery of the plant, equipment and materials to site as per the specifications and drawings and as per the sequence required and to watch and supervise the works and to inspect and test any materials to be used or workmanship employed in connection with the works. Any instructions or approvals given by the Engineer's representative to the Contractor in

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connection with the Contract shall bind the Contractor as though it had been given by the Engineer provided always as follows:

2.2.1 The Engineer's Representative shall have no authority to relieve the

Contractor of any of his duties or obligations under the Contract except as expressly provided hereunder or elsewhere in the Contract to order any work involving delay or any extra payment by the Employer or to make any variation or in the works.

2.2.2 Failure of the Engineer to reject any plant equipment materials or to

disapprove any work or materials shall not prejudice the Employer to reject such plant equipment materials or to disapprove such work or materials and to order re-supply of such plant equipment materials or to pull down, remove or break up such disapproved work at the cost of the Contractor .

The decision, opinion, certificates or valuation of the Employer in respect

of any matter under this Clause shall be final binding and conclusive. 2.2.3 If the Contractor shall be dissatisfied by reason of any decision of the

Engineer he shall be entitled to refer the matter to the Employer who shall thereupon confirm, reverse or vary such decision.

3.0 ASSIGNMENT AND SUB-LETTING 3.1 Assignment: The Contractor shall not transfer or assign the Contractor

any part thereof or any benefit or interest therein or there under without the written consent of the Employer. In the event of the Contractor contravening this condition, the Employer shall be entitled to place the Contract else where on the Contractor's account and at his risk and then the Contractor shall be liable for any loss or damage which the Employer may sustain in consequence or arising out of such replacing of contract.

3.2 Sub-letting: The Contractor shall not sub-let the whole or any part of the

works without the written consent of the Employer and such consent if given shall not establish any contractual relationship between the sub-Contractor and the Employer and shall not relieve the Contractor of any responsibility, liability or obligation under the Contract and the Contractor shall be responsible for the acts, defaults and neglects of any sub-Contractor or his agents, servants or workmen as fully as if they were the acts, defaults or neglects of the Contractor or his agents, servants or workmen, provided always the execution of the details of works by petty Contract under the direct and personal supervision of the Contractor or his agent shall not be deemed to be subletting under this clause.

3.3 Notwithstanding the consent given by the Employer for subletting, it

shall be obligatory on the part of the Contractor to provide to the

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Employer all drawings, specifications, technical data, detailed design, performance characteristics etc. from his sub-Contractors.

3.4 In the event of the Employer agreeing to the selection of the sub-

Contractors proposed by the Contractor, it shall be obligatory on the part of the Contractor to post on full time basis their senior technical experts in the works of the sub-Contractors to direct and exercise control over quality of raw materials and workmanship during the manufacture.

3.5 The Employer shall have the right to specify the brand name/s of the

standard bought out items required in connection with the Contract and the Contractor shall procure only such branded items. This shall, however, not relieve the Contractor of his other obligations under the Contract.

4.0 EXTENT AND SCOPE OF CONTRACT 4.1 Extent of Contract: The work comprises the supply of the

plant,machinery and equipment,Erection, testing and commissioning of the same including guarantee thereof and the provision of all construction facilities including but not limited to water, power, transport and facilities, shifting and handling labour, materials constructional plant, tools and tackles temporary works and everything whether of a temporary or permanent nature required in and for such supply, erection, testing, commissioning, completion and maintenance.

4.2 The Contractor shall carry out and complete the Contract in every

respect in accordance with the Contract and in accordance with the directions of and to the satisfaction of the Employer/Engineer. The Employer/Engineer may in his absolute discretion from time to time issue any amendments to the specification, approved drawings or issue further drawings and or written instructions, details, directions and explanations which are hereafter collectively referred to as the "Employer's Instructions" in regard to.

4.2.1 The variations or modifications, corrigendum, revisions to the

specifications and or drawings. 4.2.2 Revisions and modifications in the order of the delivery of the

materials/plant equipment, changes in the place of inspection or additions and modifications of the tests to be conducted.

4.2.3 Changes in the number of copies in the drawings or reproducible prints to be submitted.

4.2.4 Intimating the method or form of payment of bills or intimating any

changes thereof. 4.2.5 The variation or modification of the design, quality or quantity of works

or of the addition or commission or substitution of any works.

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4.2.6 Any discrepancy in the drawings or between the Schedule or Quantities and/or Drawings an/or specification.

4.2.7 The removal from the site of any materials brought thereon by the

Contractor and the substitution of any other materials therefor. 4.2.8 The removal and / or re-execution of any work executed by the

Contractor. 4.2.9 The dismissal from the works of any person employed thereupon. 4.2.10 The opening up for inspection any work covered up. 4.2.11The amending and making good of any defects under Clause-10 herein

below. 4.2.12 The inspection and carrying out of tests of materials,plant and finished

work on site. 4.2.13 Deducting and recovering any amounts, in respect of defective plant,

materials, labour and finished work for which advance payments had been made, from any amounts due to the Contractor.

4.3 The Contractor shall forthwith comply with and duly execute any work

comprised in such Engineers' instructions, provided always that verbal directions and explanations given to the Contractor or his foreman/representative upon the work by the Engineer shall if involving a variation, be confirmed in writing by the Contractor within seven days and if not dissented by the Engineer in writing within a period of seven days from the date of receipt of such confirmation in writing, such instructions shall be deemed to be the Engineer's instructions within the scope of the Contract.

4.4 If compliance with the Engineer's instructions as aforesaid involves work

and/or loss beyond that contemplated by the Contract then, unless the same were issued owing to some breach of this Contract by the Contractor, the Employer shall pay to the Contractor the price of the said work as an extra to be valued as herein after provided in Clause-27.0

4.5 If a work is transferred from the jurisdiction of the Employer to another

Company or a Project Authority or vice versa, while the Contract is in subsistence, the Contract shall be binding on the Contractor and the Successor company/Project Authority in the same manner and take effect in all respects as if the Contractor and the Successor Company/ Project Authority were parties there to from the inception and then corresponding office or the competent authority in the Successor Company / Project Authority will exercise the same powers and enjoy the same authority as conferred to the Predecessor Company/ Project Authority under the original Contract / Agreement entered into and the

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Engineer so appointed shall have the same power, as envisaged in the contract.

4.6 If for any reason the Contract is transferred to the Successor Company/

Project Authority, the Contract shall, not withstanding anything contained herein contrary thereto, be binding on the Contractor and the Successor Company/Project Authority of the Employer and shall take effect in all respects as if the Contractor and the Successor Company/Project Authority of the Employer had been parties thereto from the date of this Contract.

4.7 The Contract shall be governed by the law for the time being in force in

the Republic of India. 4.8 If the Contractor shall die, dissolve or become bankrupt or insolvent or

cause or suffer any receiver to be appointed of his business or any assets thereof or compound with his creditors, or being a corporation commence to be wound up, not being a member's voluntary winding up for the purpose of amalgamation or reconstruction, or carry on its business under a receiver for the benefits of its creditors or any of them, the Employer shall be at liberty:

- to terminate the Contract forthwith upon coming to know of the

happening of any such event as aforesaid by notice in writing to the Contractor or to the receiver or liquidator or to any person, in whom the Contract may become vested.

or

- to give such receiver, liquidator or other person the option of

carrying out the Contract subject to his providing a guarantee upto an amount to be agreed for the due and faithful performance of the Contract.

5.0 CONTRACT DOCUMENTS DRAWINGS AND SPECIFICATION 5.1 Documents mutually explanatory : The Several documents forming the

Contract are to be taken as mutually explanatory of one another and in case of ambiguities or discrepancies the same shall be explained and adjusted by the Engineer who shall there upon issue to the Contractor instructions directing in what manner the work is to be carried out.

5.2 SCOPE 5.2.1 In as much as the Contractor is required to supply drawings, documents

and manuals, he shall furnish the same free of charge to the Employer in requisite number of copies as a part of the Contract. These shall include, but not be restricted to, all necessary calculations, design drawings, details and construction drawings, specifications, bill of materials, manuals etc. unless otherwise defined in context.

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5.2.2 The Contractor shall be liable for any discrepancies, errors or omissions

in the drawings and other information supplied by him, irrespective of whether these have been approved by the Employer or not, provided that such discrepancies, errors or omissions be not due to incorrect information or Particulars furnished in writing to the Contractor by the Employer, unless the Contractor as designer and manufacturer of such Equipment could have known or discovered the said discrepancies, errors and omissions. The Contractor shall pay for any extra cost incurred or to be incurred by the Employer due to any alterations necessitated by reasons of any discrepancies, errors or omissions in the drawings and Particulars supplied by the Contractor.

5.2.3 Contract Specifications and drawings shall be coordinated by the

Contractor in such a manner that any work shown in the drawings and not specified, or specified and not shown in the drawings, is to be done without extra charge; unless such work is specifically exempted, it is to be executed in accordance with the Contract and in the same manner as fully specified and shown in detail.

5.2.4 Drawings furnished by the Contractor shall be certified as correct for use

and shall bear the signatures of responsible/authorised persons of the Contractor whose names shall have previously been notified to the Employer by the Contractor in writing.

5.2.5 Drawings, documents, manuals, spare parts list etc. shall be supplied in

neat substantially bound volumes. All reproducibles/linen transparencies/CDs shall be sent in mailing tubes and microfilms in metallic containers. The quality of reproducible linen/polythene films/CDs to be used for supply of reproducible prints will have to be approved by the Employer. The drawings, documents etc. shall be mailed to the addresses of parties designated by the Employer. The Contractor will be informed of these in time by the Employer.

5.2.6 Within 3 weeks of award of the Contract, the Contractor, shall submit 10

copies of specification giving details of Plant and Equipment ordered which shall be based on the tender documents, the tender and all exchanges in letters, telexes and notes of meetings made during negotiations prior to award of Contract. The specification will serve as a working document. The details furnished shall include information on associated items not forming part of the Contractor's supply, but which may be required to be ordered by the Employer on other agencies. This specification shall also indicate details of auxiliaries which, though not a part of the Contract, are essential for safe and efficient working of the Plant and Equipment in terms of the Contract.

5.3 DRAWING FORMAT:

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5.3.1 All drawings shall be dimensioned in the metric system and titles and written notations shall be in English language. While preparing the drawings, the drafting standards adopted shall be such that good, clean and legible microfilms of the drawings can be obtained.

5.3.2 All drawings submitted by the Contractor shall be as per the latest

revision of IS:696 in general, it is desired to keep the same size for all drawings for ease of filing and reference. All layout drawings shall be oriented to match the Plant arrangement drawings and shall have a key plan identifying the Plant area to which they apply and marked with an arrow pointing to the north at the top of the sheet. There shall be sufficient reference notes on the drawings to permit identification of all related drawings and documents which are required for proper understanding. Drawings and bills of materials shall give broad specifications and quantities of all materials required for the work and shall be cross-referred for easy identification. Wherever applicable, the DPR item no. shall be marked on the respective drawings of the Plant and Equipment.

5.3.3 The Contractor's standard drawings used for the Contract shall have

information pertaining to the specific item under consideration properly identified to distinguish it from information pertaining to other items which may be contained on the same drawings.

5.3.4 When a drawing is revised by the Contractor, every change made shall be

identified on the drawing by circling the changes made and placing the revision number in a small triangle so as to be easily recognizable. When a subsequent revision is made the circles made for the previous revision shall be erased and the current changes circled. However, all revision numbers in the small triangle should be retained. In addition, a record of revisions along with the coordinates showing the location of revisions shall be indicated at the left hand bottom corner of the drawings as per standard practice. In case of revision of a drawing, for which a different number is allotted the new drawing shall clearly indicate the number of the drawing, which it supersedes.

5.3.5 The Contractor shall prepare and furnish drawings exclusively against

the Contract. Even standard drawings of the Contractor shall bear a reference in the drawings to the present Contract only. References pertaining to other contracts entered into with other parties shall not appear in the drawings submitted to the Employer.

5.4 Submission of Drawings: 5.4.1 Numbering system: 5.4.1.1Identification numbers or symbols that the Contractor selects to use for

his own purposes are permissible. Bills of materials must be such that the Employer will be able to identify and purchase any needed replacement and spares. The method of numbering drawings,

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specifications and bill of materials used by the Contractor shall be submitted to the Employer to enable the Employer to plan their archives. The above information shall be submitted along with the drawings submission schedule within 3 weeks of award of the Contract.

5.4.2 List of drawings: 5.4.2.1Within 3 weeks of the date of award of the Contract, the Contractor shall

supply to the Employer 5 copies of a complete list of all drawings by title, which the Contractor expects to supply against the Contract together with a detailed schedule for submission of the drawings. The detailed schedule shall take into account the schedule for submission of the different types of drawings as outlined in clause No.5.4.3 and shall be in conformity with the overall time schedule established by the Contractor in his proposal with subsequent modifications, if any, which has been made part of the Contract.

5.4.3 Schedule: 5.4.3.1The Contractor shall submit the various drawings and documents as per

the following schedule: _________________________________________________________________________________ Sl Clause Type of drawings/ No. of Time of submission No. No. documents copies _________________________________________________________________________________ 1. 5.4 Numbering system,drawings 5 Within 3 weeks of list & schedules. award of contract 2. 5.5 Drawings for approval 10 Within one month of award of contract 3. 5.6 Feed back data 10 Within 3 months of award of Contract 4. 5.7 Assembly & Erection 10 3 months prior to drawings shipment or 3/4th of the delivery period, whichever is earlier. 5. 5.8 Final drawings 10 Along with supply of equipment or along with assembly and erection drawings covered under clause 5.8 except clause 5.8.1.9 & 5.8.1.10

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6. 5.8.1.9 Spare Parts Within 6 months of & drawings award of Contract or 5.8.1.10 one half of the Delivery

period whichever is earlier. ___________________________________________________________________________

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5.5 Drawings for Approval: 5.5.1 Within one month of award of contract, the Contractor shall submit

general arrangement and layout drawings including cross sections for approval prior to commencement of detailing and manufacture. In the layout drawings, the scope of supply of the Contractor shall be indicated in darker outlines to distinguish from those items not in the Contractor's scope. The general arrangement and layout drawings referred to herein shall include the following:

5.5.1.1For Equipment, this category shall include equipment general

arrangement with adequate cross sections, overall dimensions, locations of equipment centerlines and working point elevations, functional and clearance requirements, performance characteristics and graphs and important clearance dimensions. The particulars of refractory and other lining work, if any, and of all auxiliaries shall also be included.

5.5.1.2For piping, this category shall include flow diagram of all utilities and

process fluids showing flow quantities, temperatures and pressures, all equipment like fans, filters, pumps, valves and instrumentation. The general arrangement and layout drawings for piping and duct work shall include physical location of Equipment and general pipeline/duct routings to avoid equipment and electrical interferences and to make units requiring servicing and maintenance accessible. Both the flow sheets and pipe/duct routing drawings shall show interconnecting pipelines/ducts, and terminal points of the Contractor's piping/ducting. This category shall also include diagrams of hydraulic, pneumatic, lubricating, ventilation and air conditioning systems. Where necessary, the Contractor shall also give diagrams and drawings showing waste disposal systems.

5.5.1.3For electrical, this category shall include layout drawings showing

locations of all electrical Equipment including motors, controls, limitswitches, solenoid valves etc. motor list, list of electromagnetic valves, single line inter-locking and sequence diagrams for control, signaling and communication systems, location of devices on switch-gear, control panels, desks etc. including sectional views. The details furnished shall include complete cabling drawings giving details of power and control cables,terminal details layout of trenches and cable racks/tunnels, conduits,cross-sections of cable layouts at all important and necessary locations etc.

5.5.1.4For Instrumentation, this category shall include the control scheme and

instrumentation flow diagram and general arrangement drawings of instrument and control panels.

5.5.1.5 Drawings for approval of statutory authorities such as the Indian Boiler

Inspectorate, Inspectorate of Explosives, electrical inspectorate, factory Inspectorate, environmental clearance etc.

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5.5.1.6 Preliminary foundation outline drawings including excavation drawings, load data and bolt locations as well as any specific design criteria such as thermal protection, acid/alkali resistance measures etc. that may be required.

5.5.2 The details furnished shall include necessary calculations and data

required for demonstrating that all parts of the Plant and Equipment to be furnished shall conform to the provisions of the Contract.

5.5.3 Approval of the Contractor's drawings will generally be accorded within 4

weeks of receipt. Approval of the Contractor's drawings means that these will be checked for conformity with applicable specifications and general conformity with the engineering requirements for the area covered in the Contract. It is understood that approval by the Employer does not include checking for drafting and other errors, but monthly review of basic concepts and general principles involved.

5.5.4 The Contractor shall make any changes in the design, with prior

approval of the Employer, which are necessary to make the Equipment conform to the provisions and intents of the Contract, without additional cost to the Employer. Approval of the Contractor's drawings or any design changes shall not relieve the Contractor of his responsibility to comply with the intent of the Contract. Manufacture/fabrication or procurement prior to approval of drawings shall be at the Contractor's risk.

5.5.5 The Contractor shall submit drawings for approval in ten (10) prints. If

the drawing is approved, one print will be returned to the Contractor. If the drawing is "Not Approved" or "Approved as Noted", one marked-up print with appropriate comments will be returned to the Contractor for correction and re-submission. The Contractor shall re-submit the revised drawings incorporating all the changes within 2 weeks after receipt of drawings with the Employer's comments. The revised drawings shall be re-submitted in Ten (10) prints. One print of finally approved drawing will be furnished to the Contractor.

5.5.6 Upon approval by the Employer, the drawings shall become Contract

drawings and thereafter the Contractor shall not depart from them in any way whatsoever except with the written prior permission of the Employer.

5.6 FEED BACK DATA: 5.6.1 On finalisation of designs, the Contractor shall furnish sufficient

drawings and data covering the Plant and Equipment in his supply to enable design and construction necessary concrete and building work and to install necessary electrical and utility connections at Site, including necessary electrical cabling, piping, ducting, refractory and other lining works. The feed back data shall include the following:

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5.6.1.1Certified Civil foundation assignment drawings including locations and dimensions of foundation bolts, sleeves, inserts, supports etc., load data,(static & dynamic loads, critical speeds, allowable vibrations, movements etc) requirement of tunnels and trenches, flue ducts, any specific design criteria such as thermal protection, acid/alkali resistance measures etc. Specifications for sleeves, foundation bolts and other materials shall be included.

5.6.1.2Certified dimension drawings showing plan,front, rear and sectional

views indicating location of each individual equipment including, where necessary, its auxiliaries and control panels being supplied under the Contract, and also space requirement for operation and maintenance, position of power and control entries and utilities connecting points and end connection details.

5.6.1.3Assignment/arrangement for underground and overground utilities

including those to be embedded in the concrete, consumption, rate of flow, pressure, temperature of utility services including connecting dimensions with outside pipelines.

5.6.1.4Electrical power, control and instrumentation schematic and erection

diagrams giving power load, cable dimensions etc. 5.6.1.5Drawing showing refractory and lining work with details of types and

grades of refractories, sizes and shapes of bricks, complete bill of materials for all refractories, specifications including chemical and physical properties of all types of refractory materials and details and specifications of slagwool, rackwool and lagging materials.

5.6.2 The above documents shall be furnished in Ten(10) sets within 3 months

of award of Contract. 5.6.3 Other drawings, specifications and data including those not described

above but required by other agencies to perform their work related with Equipment being supplied by the Contractor. These shall be furnished as and when required by the Employer during the execution of the Contract.

5.7 ASSEMBLY AND ERECTION INSTRUCTIONS AND DRAWINGS 5.7.1 The Contractor shall furnish Ten (10) copies of the following: 5.7.1.1Descriptive literature and drawings to illustrate the working principles,

method of assembly and dismantling. 5.7.1.2Instruction books for proper Erection, assembly of all Equipment and

necessary instructions for checking and recording proper assembly of the Plant.

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5.7.1.3Instruction sheets for proper balancing, alignment, checking and calibration as may be necessary.

5.7.1.4Erection drawings showing all details and particulars, in sequence,

required for Erection and installation of the plant. In addition, the Contractor's recommended time schedule and a chart showing the sequence of erection of Equipment may also be furnished.

5.7.1.5Instructions for reconservation during storage of individual Equipment

for varying periods, say 6 months, 12 months and 18 months. Details about the manufacturer's recommended period till which no reconservation, preservation need be taken by the Employer for each unit shall also be indicated.

5.7.1.6The documents, drawings etc. referred to in clause 5.7.1 shall be

submitted in time so as to to be available at Site prior to shipment of Equipment,but in any case at least 3 months before the first shipment of Plant and Equipment or three-fourth of the Delivery period, whichever is earlier.

5.8 FINAL DRAWINGS 5.8.1 Along with the supply of Equipment or along with assembly and erection

instructions and drawings covered under clause 5.7 above and Ten (10) sets of print's shall be furnished for each of original drawings, specifications, bills of materials, calculation sheets etc.made by the Contractor and his sub-Contractors under clause 5.0, incorporating all changes made during the execution of the Work, including those made at Site during Erection, assembly and start-up indicating the authorities who made the changes. This shall include but not be restricted to the following:

5.8.1.1General arrangement, assembly, sub-assembly and section drawings as

well as detailed drawings showing details of components required for assembly complete with bills of materials and schedule of parts of each complete Equipment giving part numbers with reference to the assembly drawings and the total number of each part. These drawings shall be suitably cross referred to other drawings as required. The drawings shall be sufficiently detailed such that, if the Employer so desires, he can procure spares and replacement from any competent manufacturer in India and abroad.

5.8.1.2Performance data including graphs, efficiency and characteristic curves

and other pertinent information of the individual/composite items of Plant and Equipment.

5.8.1.3Operation manual for the Plant and Equipment. This should include

complete operating instructions for each Equipment and work procedure for each work station giving all details necessary to ensure proper sequence of operation and safety of men and machinery.

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5.8.1.4Maintenance manuals covering all phases of both preventive and repair

maintenance giving clear instructions regarding expected faults, method of detection and elimination, lubricating charts showing every point requiring lubrication, grade of lubricant, schedule for lubrication, and where required, the correct amount and grade of oil or grease necessary for refill after drainage.

5.8.1.5Flow diagrams and layouts of instrumentation hydraulic, pneumatic,

lubrication systems and utilities with all necessary dimensions and specifications.

5.8.1.6Complete electrical, schematic and erection and inter connecting wiring

diagrams for power distribution,control and instrumentation and logic circuits for the Plant and Equipment. The drawings should give ratings, characteristics, make,type and range of items being supplied. Dimensional drawings for control panels, desks etc. shall also be furnished.

5.8.1.7In case of furnaces, drawings showing refractory/insulation of various

types of bricks, type and grade of refractories, expansion joints, mortar joints, complete bills of refractories/insulating materials and physicochemical properties of all types of refractories/insulations.

5.8.1.8All the Test charts and Test Certificates. 5.8.1.9The Contractor shall supply spare parts list giving the complete list of all

parts required as commissioning spares. In addition, the Contractor shall supply spares list giving complete list of replaceable parts for two years normal operation indicating clearly operational, consumable, maintenance, replacement spares etc. In the maintenance spares, fast wearing and insurance spares shall be clearly identified. The spare parts lists shall include necessary catalogues and manufacturing drawings and shall be supplied in the form of a table giving item designation and application, name of manufacturer, manufacturer's specification, type and form, reference drawing number, standards used, quantity installed, quantity recommended for two years normal operation, expected useful life, unit price, and in addition, for electrical Equipment the item designation shall show the entire module to be replaced in case of defect in any component. Detailed instructions both for original installation and future replacements shall be furnished.Manufacturing drawings for wearing parts shall be supplied.

5.8.1.10Manufacturing drawings for the items in the spare parts lists including

for wearing parts which require replacements due to wear in normal operation. The information furnished shall include complete specifications giving materials of construction, heat treatment, grade of finish, tolerance etc. for mechanical items and coil dimensions, size and section of conductors, type and size of insulation, process of impregnation etc. for electrical items. Further drawings of components

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of proprietary items of the Contractor and his sub-Contractor which can be manufactured by general engineering practice shall be furnished. If required, the Employer will give an undertaking that such items of proprietary nature will not be used for commercial purposes but will be exclusively used only for maintenance of the Plant.

5.8.2 Until such time as the supply of drawings, documents and information

required as per clause 5.0 are completed, the Employer will not finally accept the Plant as supplied and erected by the Contractor.

5.8.3 Further drawings, specifications, data not mentioned specifically but

required by the Employer in connection with the Contract and possible alterations and extensions of the Plant shall also be supplied by the Contractor as and when required.

5.9 The time of submission and approval of drawings shall not have any

bearing on the Delivery Schedule mentioned in the Contract. 5.10 All drawings, specifications, materials and designs furnished by the

Employer or his authorised representatives shall be treated as strictly confidential and as property of the Employer. All such drawings, specifications, manuals and other materials shall be returned to the Employer upon completion of the Work under this Contract or on termination of the contract. No copies duplications or photostats shall be retained by the Contractor without the consent of the Employer. All drawings, specifications and manuals and all specific designs furnished by or through the Contractor shall be fully owned by the Employer who is entitled to use them for all purposes.

5.11 In case of Equipment being manufactured as per the Employer's

drawings, the Contractor shall undertake that the Employer's drawings shall not be used for any purpose other than the supply of Equipment to the Employer and shall not be transferred to any party in or outside India.

5.12 In respect of the drawings issued by the Employer for facility of execution

of the Contract by the Contractor, the Contractor shall keep safe custody of such drawings. If any additional drawings are required, the Contractor shall give adequate notice in writing to the Engineer of any further drawings or specification that can be required for the execution of the works or otherwise under the contract. One copy of the drawings furnished to the Contractor as aforesaid shall be kept by the Contractor at the site and the same shall at all reasonable time be available for inspection or use by the Engineer's representative or any other person authorised by the Engineer.

All the drawings and specifications and copies there of furnished by the

Employer/Engineer to the Contractor are deemed to be the property of the Employer, they shall not be used on other works and with the exception of the signed contract set, these shall be returned by the

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Contractor to the Employer/Engineer on completion of the works or termination of the contract.

5.13 At the completion of the contract, the Contractor shall furnish to the

Engineer 1(one) set of all "as built" drawings, RTFS, CDs and documents showing the agreed modifications, alterations or changes made during execution at site at no extra cost to the Employer. Further one set of aperture cards in the approved format shall be submitted by the Contractor on the completion of the Contract.

6.0 GENERAL OBLIGATIONS; 6.1 Contract Agreement: The Contractor shall enter into and execute a Contract / Agreement in

the prescribed form within the time specified in the Letter of Intent and in default thereof, the Earnest Money Deposit paid by the Contractor or the Security Deposit amount furnished by the Contractor shall be forfeited and the acceptance of the tender shall be considered as withdrawn at the cost of the Contractor.

6.2 Inspection of Site: The Contractor shall visit, inspect and examine the

site and its surroundings and shall satisfy himself before submitting the tender as to the various facilities available at the site for the receipt, storage and custody of the materials as to the nature of the ground and sub-soils (as far as it is practicable) the form and nature of the site, the conditions, the quantities and nature of the work and materials facilities necessary for transportation, erection, testing and commissioning of the works and the means of access to the site, the accommodation and other facilities that may be required and, in general, shall himself obtain all necessary information as to the working conditions, risk contingencies and other circumstances which may influence or affect his tender.

6.3 Sufficiency of Tender: The Contractor shall be deemed to have satisfied

himself before tendering as to the correctness and sufficiency of his tender for the works and of the rates and prices stated in the Priced Bill of Quantities and that the schedule of rates and Prices cover all his obligations under the Contract and all matters and things necessary for the proper supply, erection, testing & commissioning of the plant, equipment and machinery.

6.4 The Contractor is entirely responsible for the due performance of the

Contract in all respects according to the spirit, intent and meaning of the drawings, specifications and all other documents referred to in the contract. Any approval which Engineer or Inspector may have given in respect of the Plant, Equipment & Materials or other particulars and the work of the workmanship involved in the Contract (whether with or without tests carried out by the Contractor or the Employer) shall not bind the Employer and not withstanding any approval or acceptance given by the Employer,it shall be lawful for the Employer to reject

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material on arrival at site, if it is found that the material supplied and or erection work carried out by the Contractor are not in conformity with the terms and conditions of the Contract in all respects.

6.5 Responsibility for completeness: Any equipment, fittings, materials or

supplies which may not be specifically mentioned in the specification or drawings, but which are useful or necessary for carrying out the Contract work under the Contract within the scope of the Project are to be provided for and rendered by the Contractor without extra charge and the Plant, Equipment and Materials must be complete in all details.

6.6 TYPE, QUALITY OF MATERIALS AND WORKMANSHIP: 6.6.1 The Contractor shall be deemed to have carefully examined and to have

knowledge of the general and other conditions, specifications, schedules, drawings, etc. forming part of the Contract and also to have satisfied himself as to the nature and character of the Work to be executed and, where necessary, of the Site conditions and other relevant matters and details. Any information thus had or other wise obtained from the Employer shall not in any way relieve the Contractor from his responsibility for supplying the Plant and Equipment and executing the Work in terms of the Contract including all details and incidental works and supply of all accessories or apparatus not specifically mentioned in the Contract but necessary for ensuring complete Erection and efficient working of the Plant and Equipment. If he shall have any doubt as to the meaning of any portion of the Contract , he shall, before signing it set forth the particulars thereof and submit them to the Employer in writing in order that such doubt may be removed/clarified.

6.6.2 The Contract Work shall be of the best quality and workmanship

according to the latest engineering practice at the time of award of Contract .The Equipment, Plant and Machinery shall be manufactured from materials of the best quality or highest class intended for this purpose. They shall be designed, manufactured, supplied and, if required, erected and maintained until their acceptance in accordance with the requirements of the Contract .

6.6.3 The Contractor shall be deemed to be aware of the fact that the supplies

and services under the Contract are required for the Project and he shall, therefore,make provisions for his supplies and/or services to be so adjusted that they fit into the Employer's general scheme in respect of the Project or expansion thereof and will not interfere with the interaction of the combined operation.The Contractor shall make necessary reference and enquiries at appropriate stages.

6.6.4 The Contractor shall also be deemed to have ascertained all special, local

and national conditions, regulations, customs etc. which may affect his design,schedule,choice of supervisory personnel etc. prior to the preparation of his tender. Typical of such information would be the average Indian height of eye (for design of control desks and pulpits)

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special restrictions or consideration, details of facilities to be expanded, modified or duplicated,equipment and details of materials available in India etc. No claim for extra payment shall be permitted on this account.

6.6.5 The Contractor shall procure and/or fabricate and erect all materials

and Equipment as provided in the Contract, in accordance with all requirements of Central and State Government enactments, rules and regulations governing such work and codes and standards listed in the Contract documents and normal considerations of quality and good workmanship. This shall not be construed as relieving the Contractor from complying with any requirements of the drawings and Contract Specifications which may be more rigid than and not contrary to the above mentioned rules nor from providing such construction as may be required by the above mentioned rules and regulations, even though it may not be shown on the drawings or in the specifications. In case of variance of the drawings and/or Contract Specifications from the laws,ordinances , rules and regulations governing the Work, the Contractor shall immediately notify the Employer. It is the sole responsibility of the Contractor, however, to determine that such variance exists. Wherever required by regulation, the Contractor shall also obtain relevant statutory authorities approval (e.g. Boiler Inspector, Factory Inspector etc.) for the Plant, Machinery and Equipment supplied by the Contractor.

6.6.6 Codes and Standards referred to in the Contract documents shall be

followed. In general, the Equipment shall be designed and manufactured conforming to the relevant Bureau of Indian Standard Specifications (BIS) and Interplant Standards in Steel Industry (IPSS) issued by Indian Standards Institution, New Delhi. In the absence of suitable Indian Standards, codes and standards of other countries and International Organisation for Standardisation(ISO) can be followed, with prior approval of the Employer, provided Materials and Equipment according to these standards are equal to or better than corresponding standards specified in the Contract. The standards followed shall be clearly indicated in the tender.

6.6.7 In general, the materials and workmanship shall meet the requirements

of standards as noted in the Contract documents.In any case, Materials shall be of the best grade obtainable and the most suitable for the purpose in tender, in accordance with modern steel plant practice. All materials shall be new. Substitution for specified materials or variations from designed processes or methods of fabrications will be permitted only if approved by the Employer. Such approval may be granted only if a compelling reason exists for making a substitution. Before any defect in Materials or workmanship is repaired, the Contractor shall outline the procedure proposed for rectification of the defect and obtain approval of the Employer.

6.6.8 Only metric system of weights and measures shall be followed. All

components like fasteners, bearings etc shall be as per metric system. All

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meters, gauges,recorders and other types of indicating, integrating or recording devices shall be calibrated in the metric system and degree Celsius. Where vernier attachments are related to the English system, gearing must be changed to produce results on a true decimal (Metric) basis Functional and instruction plates shall be in English language.

6.7 Commissioning spares: 6.7.1 The Contractor shall supply with the Plant, Machinery and Equipment

sufficient quantity of commissioning spares that may be required for commissioning and for its efficient operation until Provisional Acceptance of the Plant. The prices for the same shall be included in the supply price of equipment. The list of commissioning spares included, with quantities, shall be indicated in the offer. If the quantities supplied are found to be inadequate, further quantity as required shall be supplied immediately without any extra cost. Left out spares, if any, after Provisional Acceptance, out of those indicated in the list, shall become the property of the Employer.

6.8 Maintenance Spares: 6.8.1 The Contractor shall submit with the tender an itemised list showing the

unit cost and recommended number of spare parts for the first two years of operation. The Contractor shall also submit the required drawings within 6 months from the Date of Award of the Contract or one half of the Delivery period, whichever is earlier, to enable the Employer to scrutinise the spare parts list.

6.8.2 The Contractor shall also undertake that supplies of necessary spare

parts will be made available at any time later during the life of the Plant at reasonable price. In case the Contractor is unable or unwilling to supply these spares, complete manufacturing drawings shall be supplied free of charge.

6.8.3 Spare parts not manufactured directly by the Contractor shall be

properly identified and description/catalogue etc. given in sufficient detail to enable the Employer to procure these directly from the manufacturers, if he so desires.

6.9 Special Operation & Maintenance Tools: 6.9.1 The Contractor shall submit with the tender an itemised list of special

operation & maintenance tools and supply free of charge special tools required for the operation and maintenance of the Plant and Equipment supplied by him.n The Contractor shall also undertake that supplies of necessary operation maintenance tools will be made available at any time later during the life of the Plant at reasonable price. In case the Contractor is unable or unwilling to supply these tools, complete manufacturing drawings shall be supplied free of charge.

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6.9.2 If special tools are required for Erection of the Equipment, the Contractor shall furnish an itemised list along with sources of supply.

6.10 Consumables: 6.10.1 The Contractor shall inform the Employer of the specifications including

equivalent brand names and quantities of all consumable materials, such as lubricants, flushing oil, hydraulic fluids, chemicals, lumber, paper etc. required during the start up, commissioning, initial filling and yearly requirement for normal operation. Binding information on these shall be furnished sufficiently in advance of the start-up date of any Equipment to plan procurement of these Materials in time to meet all needs, but not later than 6 months after the award of Contract or one half of the Delivery period, whichever is earlier. Should the Contractor feel necessary to modify any of the data furnished by him, this should in any case be furnished at least 6 months before the shipment of the Plant/Equipment or three-fourth of the Delivery period, whichever is earlier. The Contractor shall supply such Materials required for start-up, commissioning and initial filling within the Contract Price.

6.11 Patent Infringement: 6.11.1.1 The Contractor shall protect, indemnify and save harmless the

Employer, his customers and users of his products, against all liability, including cost, expenses, claims, suits or proceedings at law in equity or otherwise, growing out of or in connection with any actual or alleged patent infringement ( including process patents, if any ) or violation of any licence with respect thereto, by reason of the manufacture and/or sale by, or on behalf of the Contractor of the Plant or any part thereof, or the employer thereof by Employer or the use thereof in India for the purpose for which it is furnished or the sale by the Employer of his products made, manufactured, fabricated, processed or produced with said Plant or any part thereof, and will defend or settle at the Contractor's own expense any such claims, suits or proceedings.

6.11.1.2 The Employer will notify the Contractor in writing of any such claim,

suit, action or proceeding coming to his attention, giving authority and all available information and assistance for the Contractor's defense of the same. If at any time the installation of the Plant, or any part thereof, or the use thereof in India for the purpose for which it is supplied or the sale of products produced therewith, is prevented or enjoined because of patent infringement or alleged infringement the Contractor shall promptly, at his own expense, either procure for the Employer the right to use such Plant or replace the same at his own expense with equally efficient non-infringing Plant satisfactory under all requirements of the Contract so that the operation of the Employer's Plant will not be unduly delayed or interrupted. If shipment of the Plant, or any part thereof is prevented by attachment, injunction or otherwise, at or in the course of transit from the Contractor's factory or other point of origin to Site of the Employer's Plant, as result of any claim of patent infringement, the

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Contractor shall, at his own cost and expense, promptly furnish and provide the necessary bond or take such other steps as may be necessary to enable shipment to be made without delay. The Employer will have the right at his own expense to retain counsel of his own choice to collaborate in the defense of any such claim, suit, action or proceeding.

6.11.2 Indemnity: 6.11.2.1The Contractor assumes responsibility for and shall indemnify and save

harmless the Employer, from all liability, claims, costs, expenses, taxes and assessments including penalties, punitive damages, attorney's fees and court cost which are, or may be required with respect to any breach of the Contractor's obligations under the Contract, or for which the Contractor has assumed responsibility under the Contract, including those imposed under any contract, local or national law or laws, or in respect of all salaries, wages or other compensation of all persons employed by the Contractor or his sub-Contractors or suppliers in connection with performance of any work covered by the Contract. The Contractor shall execute and deliver, and shall cause his sub-Contractors and suppliers to execute and deliver, such other further instruments and to comply with all the requirements of such laws and regulations as may be necessary thereunder to confirm and effectuate the Contract and to protect the Employer.

6.12 The Employer shall not be in any way held responsible for any accident

or damages incurred or claims arising therefrom during the period of Erection and putting into operation of the Plant under the responsibility of the Contractor.

6.13 The Contractor shall be responsible for the proper fencing, lighting,

guarding and watching of all the works at the Site until they are taken over and for the proper provision for a like period of temporary roadways, footways, guards and fences as far as may be rendered necessary by reason of the works for the accommodation and protection of the owners and occupiers of adjacent property, the public and others. No naked light shall be used by the Contractor on the Site otherwise than in the open air without the special permission in writing from the Employer.

7.0 PROGRESS REPORTS 7.1 Within two weeks of the issue of the Letter of Intent, the Contractor shall

submit his detailed proposals along with critical path network and an estimated completion time which should show starting and completion dates of all categories of engineering, purchasing,procurement of Materials, manufacture, inspection, despatch, erection, testing and putting into operation along with the expected date of completion for each of the above. The Contractor thereafter shall submit monthly progress reports on or around the 20th day of every month giving the status of the Contract Work as a whole and also indicating the progress made under various heads against the plans indicated as above.

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7.2 The Employer/Engineer may call the representatives of the Contractor

for progress review meetings to be held at periodical intervals.For this purpose the Contractor shall depute his and his sub-Contractor's senior commercial and technical representatives so that the exact state of progress of Work could be reviewed with the Employer/Engineer

7.3 The progress report shall include the following: 7.3.1 A drawings status report preferably in computer run out containing a

listing of all drawings and documents as detailed in clause 5.4.3 together with the related reference number and titles and giving the scheduled completion dates, dates when the drawings and documents have been/will be submitted and date of receipt of approval etc.

7.3.2 A manufacturing status report preferably in computer run out detailing

the progress of procurement of raw materials, manufacture, when the particular item or sub-assembly is expected to be ready for inspection, status of inspection, delivery etc. both for his work and that of his sub-Contractors.

7.3.3 A report detailing Materials and Equipment received at Site. 7.3.4 An Erection status report indicating the progress of Erection, giving

equipment, tools and tackle deployed by them for the purpose of Erection and the number of personnel employed on the Work. The list of personnel shall be given under the engineering supervisory, skilled and unskilled categories.

7.3.5 A floppy disk containing the various progress reports in this clause may

be submitted with computer print outs. 7.4 The proforma for the above progress reports will be indicated by the

Employer/engineer. The Contractor shall submit 10 copies of such reports to the Employer/engineer and his authorised representatives.The Employer/engineer will have the right to depute his representatives to ascertain the progress of work at the premises or works of the Contractor or to any of his sub-Contractors.

7.5 The Contractor shall submit the programmes and the order in which he

proposes to carry out the erection, testing and commissioning work with the dates and estimated completion times for various parts of work. The Contractor shall submit critical path network diagrams for the work. Such schedules and networks shall be within the overall schedule of completion of erection of plant and equipment supplied by Contractor. The Employer may not allow the Contractor to start the work for non-submission of the above charts.

7.6 During the progress of the work, the Contractor shall furnish the

Engineer with regular progress reports and such other reports on the

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erection of work and organisation including feed back information for updating/revising the critical path networks as may be required by the Engineer or his authorised representative.

7.7 The submission, receipt and acceptance of such progress reports shall

not prejudice the rights of the Employer under the Contract nor shall operate as estoppel against the Employer merely by reason of the fact that he has not taken notice of or subjected to test any information contained in such reports.

8.0 COMMENCEMENT TIME AND DELAYS; 8.1 Commencement of Contract: The Contract shall be deemed to

commence from the date of issue of FAX Order. The Contractor shall proceed with the due expedition and without any delay for the fulfillment of the contract. The detailed LOI shall be issued by the Employer within a reasonable time from the date of award of Contract and the Contractor is required to execute the agreement as per clause no: 6.1

8.2 Contractual schedules: 8.2.1 The delivery schedule for supply, erection, start up trial runs and

commissioning of the equipment as indicated in the specifications shall be followed.

8.2.2 The Contractor along with his offer shall submit a time schedule showing

the individual time periods required for submission of drawings, procurement, manufacture, fabrication, delivery, Erection, start-up and commissioning etc. The schedule shall also show the estimated erection time based on normal site work, 6(Six) days a week and 8(Eight) hours a day, as well as the time for preliminary acceptance. The schedule shall be accompanied by a network diagram incorporating all important activities and their estimated duration from the date of award of Contract to its completion indicating clearly the critical path. This schedule and network as modified and approved by Employer shall be followed strictly.

8.2.3 The Contractor shall be responsible for coordinated delivery of all Plant,

Machinery and Equipment, both from abroad and India, and shall ensure deliveries in the sequence in which they will be required at Site for Erection. He shall effect delivery of Plant, Machinery,Equipment, Materials etc. generally as under:

8.2.3.1 Plant, Machinery and Equipment Shall be delivered in

refractory and lining materials the sequence in which they will be required at Site for Erection. 8.2.3.2 Foundation bolts of special Shall be delivered well in

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design, special embedments etc. advance of the Equipment so as to be available at site

during construction of the related foundation

8.2.3.3 Spare parts for 2 years' Shall be delivered along normal working of the with the Plant and

Equipment plant as per para 1.1.12 8.2.3.4 Commissioning spares as Shall be delivered along per para 1.1.14 with the plant and

Equipment 8.2.3.5 Special tools for repair Shall be delivered along with and maintenance as per with the Plant and Equipment para 1.1.15 8.2.3.6 Specialised erection tools Shall be delivered alongwith the

instruments and Plant and Equipment. appliances as per 1.2.7

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8.2.3.7 Consumables as per Shall be delivered prior to para 1.4.1.5 Preliminary Acceptance of Plant

and Equipment as per Article 25 of the General conditions of Contract.

8.2.3.8 Drawings and documents Shall be delivered in the sequence outlined in Article

11.3.3 of the General Conditions of Contract.

8.3 TRANSPORTATION 8.3.1 The Contractor shall arrange to despatch the Plant and Equipment by

rail or road, to the site as the case may be, the Engineer being the consignee.

8.3.2 Copies of DA/LR/RR along with the details of packing lists shall be sent

to the following: a) DGM (D&E) b) Engineer 8.3.3 On receipt of Delivery Advice/LR/RR, the Engineer shall endorse the

same to the Contractor for taking delivery of the goods and to store them in his site office and to take custody of them until they are erected and handed over to the Employer.

8.3.4 The title and risk to all materials sold by the Contractor in terms of this

agreement shall pass on to the Employer on despatch of the Plant & Equipment/Ex-works. The Contractor shall arrange to get the necessary comprehensive transit insurance at his own cost for the safe transit of the material to site. All such insurance shall be tripartite, Employer being the beneficiary. The Contractor shall extend all necessary assistance in liaisoning with the Insurance Company in regard to raising of any claim and realising the claim moneys due.

Any loss which the Plant/Equipment might have suffered during the

transit shall be made good by the Contractor at his cost. After making good this loss, the moneys realised from the Insurance Company by the Employer shall be payable to the Contractor.

8.3.5 The delivery of initial fill of lubricants and oils shall be made as per the

mutually agreed schedules, to suit the delivery of plant and equipment and commissioning of the same. The Contractor shall co-ordinate all the deliveries in the sequence in which they will be required at site for erection.

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8.4 Possession of site : Save in so far as the Contract may prescribe the extent of portions of the Site of which the Contractor is to be given possession from time to time and the order in which such portions shall be made available to him and Subject to any requirement in the Contract as to the order in which the work shall be executed the Employer will, with the Engineers' written order to commence the works, give to the Contractor, possession so much of the site as may be required to enable the Contractor to commence and proceed with the construction of the works in accordance with the approved programme referred to in Clause 8.2.2 hereof. The Engineer will, from time to time as the works proceed, give to the Contractor possession of such further portions of the Site as may be required to enable the Contractor to proceed with the Construction of the works with due despatch in accordance with such approved programme or approved proposals (as the case may be). If there is delay in handing over the possession of the site to the Contractor, in accordance with the terms of this clause, the Engineer shall grant suitable extension of time for the completion, of the works.

8.4.1 Way-leaves etc. : The Contractor shall bear all expenses and charges for

special or temporary way-leaves required by him in connection with the access to the site. The Contractor shall also provide at his own cost any additional accommodation outside the Site required by him for the purpose of the work.

8.5 Time of Completion : Subject to any requirement in the contract as to

completion of any portion of the works, before completion of the whole of the Works. The whole of the works shall be completed within the time stated in the agreed time schedule calculated from the date of the Employers' issue of FAX order or such extended time as may be allowed under Clause 8.4 or 8.6 hereof.

8.6 Extension of time for Completion: Should the quantum extra or

additional work of any kind or other special circumstances of any kind whatsoever which may occur be such as fairly to entitle the Contractor to an extension of time for the completion of the work the Engineer shall determine the period of such extension, provided that the Engineer is not bound to take into account any extra or additional work or other special circumstances unless the Contractor has within 30 days after such work has been commenced or such circumstances have arisen or as soon thereafter as is practicable but not latter than 30 days delivered to the Engineer full and detailed particulars of any request for extension of time to which he may consider himself entitled in order that such request may be investigated at the time. However, the Contractor is prohibited for making any claim for Revision of Rate, Compensation etc. on account of such extension of completion period.

8.7 No night or Sunday work : Subject to any provision contained in the

Contract none of the permanent work shall, as hereinafter provided be carried on during the night or on Sundays or on holidays without the permission in writing of the Engineer, save when the work is unavoidable

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or absolutely necessary, for the saving of life or property or for the works in which case the Contractor shall immediately advise the Engineer. Provided always that the provision of this Clause shall not be applicable in the case of any work which it is customary to carry out by rotary or double shifts and the Employer has been advised in writing about the same by the Contractor prior to its commencement.

8.8 Rate of Progress : The whole of the materials, plant and labour to be

provided by the Contractor under Clause 4 here of and mode, manner and speed of execution and maintenance of the Works are to be of a kind and conducted in manner approved by the Engineer. Should the rate of progress of the works or any part thereof be at any time in the opinion of the Engineer too slow to ensure the completion of the works by the prescribed time or extended time for completion, the Engineer shall so notify the Contractor in writing and the Contractor shall thereupon take such steps as he may think necessary to expedite the progress so as to complete the works by the prescribed time or extended time for completion. If the work is not being carried on by day and the Contractor shall request permission to work by night as well as by day then if the Engineer shall grant such permission, the Contractor shall not be entitled to any additional payment but if such permission shall be refused and there shall be no equivalent practicable method of expediting the progress of the work the time for completion of the Works shall be extended by the Engineer by such period as is solely attributable to such refusal subject, however, to the provisions under Clause 24.0 hereof. All works at night shall be carried out without unreasonable noise and disturbance. The Contractor shall indemnify the Employer from and against any liability for damages on account of noise or other disturbance created while carrying out the work and from and against all claims, demands, proceedings, damages, costs, charges and expenses whatsoever in regard or in relation to such liability.

9.0 INSURANCE: 9.1 The entire property and interest (including plant, machinery and

materials and equipment both indigenous and imported) contemplated in the Contract for execution of the Contract work shall be covered by comprehensive insurance by the Contractor (with the Employer as the principal holder) from ex-manufacturer's works stage until the Plant is commissioned and guarantee tests completed successfully for full value against loss, damage or destruction by fire, lighting, earth quake, theft, pilferage, non-delivery of package/packages and all other risks including strikes, riots and civil commotions during transit, storage, erection, testing and commissioning to protect the Employer and the Contractor (including sub-contractors). The insurance policy shall be tripartite, Employer being the beneficiary. The insurance cover shall remain in full force upto the time the Plant is accepted and taken over by the Employer. The Contractor shall produce the insurance policy and receipts for the premium. All money received under any such policy shall be applied in or towards the replacement and repair of the Plant damaged or destroyed

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but this provision shall not affect the Contractor's liabilities under the Contract. The Employer, however, shall have the right to direct that the insurance policy should be taken out with an Indian Insurance Company of his choice and if so directed, the Contractor shall take out insurance policy with the Insurance Company indicated by the Employer.

9.1.1 The Contractor shall maintain and shall require his sub-Contractor to

maintain in full force and effect all such insurances as above and required by the law for the purpose of the Contract at the cost of the Contractor. Any additional insurance required specifically by the Employer/Engineer shall also be taken up by the Contractor at the cost of the Employer.

9.1.2 Contractor shall ensure that the insurer shall furnish to the Engineer

and Employer with evidence of such insurance, a copy of the issued policy and any cancellation or termination thereof. Should the Contractor default in paying any premium when due, Engineer or Employer, without prejudice to other remedies set forth in this Agreement shall be at liberty to pay such premium and recover the same from Contractor.

9.1.3 The provisions contained within this clause are not intended and do not

impair or in any manner limit the liabilities or obligation assumed by Contractor as may be set forth more fully elsewhere in this Agreement.

9.1.4 The Contractor's services shall include the filing and pursuance of all

insurance claims on behalf of the Employer and all work incidental thereto.

9.1.5 The Contractor shall be responsible for effecting insurance under the

Indian Workmen's Compensation Act,Third Party Liability Insurance and any other insurance in accordance with the Indian laws and regulations at his own cost.

9.1.6 If any Contract work including supplies and services perishes or becomes

unserviceable from any cause whatsoever, including loss or damage in transit from the Contractor's works to the Erection Site and during storage and Erection of the Plant and Equipment, the Contractor shall on demand by the Employer make replacement at his own cost and in such a way as to avoid disturbances in the general progress of the Erection of the work. This shall apply irrespective of the question whether or not the risk has passed to the Employer or who shall be responsible for the unserviceableness as aforesaid.

9.2 CUSTODY, INTIMATION OF SHORTAGE AND DAMAGES ETC. 9.2.1 Upon arrival at the Plant Site of all Plant, Machinery, Equipment and

Materials, the Contractor shall assume custody thereof and remain responsible therefor, until the Plant is preliminarily accepted and taken over by the Employer in terms of the Contract.

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9.3 The Contractor shall, whether acting as the Employer's agent or as custodian, be responsible for communicating to the Employer any shortages, breakages or damages, etc. as soon as they come to his notice without prejudice to his obligation under the clause No.9.1.1 to 9.1.6 above.

10.0 INSPECTION: 10.1 Within four weeks of the date of award of the Contract, the Contractor

shall submit to the Employer a detailed inspection procedure that will inter-alia furnish the list of various components, sub-assemblies and assemblies which the Contractor proposes to put up for inspection and the details of the Tests to be conducted for each one of these components, sub-assemblies, assemblies etc. for Employer's approval. The Employer has a right to do any modification to these procedure to ensure that minimum amount of assembly work is done at Site.

10.2 The Contractor shall give the Employer a minimum of 3 week's notice of

any Material being ready for testing, specifying the period likely to be required for such testing and the Employer or his said representative shall (unless the inspection or Test is voluntarily waived) on giving 24 hours previous notice in writing to the Contractor attend at the Contractor's or sub-Contractor's premises (as the case may be) and complete the testing as soon as possible in a period, normally of not more than 8 days, from the date on which the Material is notified as being ready for testing or inspection, failing which, the Contractor may proceed with the Tests which shall be deemed to have been made in the Employer's presence and shall forthwith forward to the Employer duly certified copies of the Test reports. In cases where the Employer is requested to carry out inspection when in fact the Equipment is not ready for testing, the cost of such visits including incidental expenses shall be to the Contractor's account.

10.3 The Employer shall have the right of inspection and testing the Contract

Work or any part thereof at any time during the manufacture, and the Contractor on demand from the Employer shall carry out such Tests in appropriate manner in the presence of and free of charge to the Employer. Should the Contractor himself not be in a position to carry out the Tests, he shall on the Employer's demand, prepare specimens or samples and send them at his own cost, to such testing stations as the Employer may specify and the cost for the Test so effected shall be to the Contractor's account. Should a part of the Plant be manufactured not on the Contractor's own premises but on other premises, the Contractor shall likewise obtain permission from the Employer to inspect and test the Work as if the said Plant were being manufactured on the Contractor's premises. The inspection, examination or testing carried out by the Employer shall not release the Contractor from any of the obligations under the Contract.

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10.4 The Employer shall have the right to be present at all Tests carried out by the Contractor. The Contractor on being requested so to act, shall present sufficient documentary evidence that the Materials used will meet the requirements of good engineering practice. With respect to Materials used for construction of the Plant and Equipment, such as structural steel, mild steel, cast iron, cast steel etc., the Contractor shall produce the requisite test certificates along with specimen and test pieces on which Tests were carried out by the manufacturer at the time of examination.Wherever necessary, the Contractor shall arrange for necessary X-Ray and ultrasonic tests to be carried out at his own cost,if called for. Samples and specimen shall become the Employer's property. The Contractor shall notify the Employer in an appropriate manner as to the progress of the Contract Work-particularly before any assembly in order that the inspection or Tests can be carried out as may be required to ascertain without prejudice to the Contractor's liability whether the Materials and/or services are in conformity with the requirements of the contract.

10.5 The Employer shall, on giving reasonable notice in writing to the

Contractor, setting out any grounds of objection which he may have in respect of the Work, be at liberty to reject all or any Plant or Workmanship, the subject of any of the said grounds of objection, which are not in accordance with the Contract or do not fulfill the requirements of the Contract.

10.6 The Inspection and Tests shall be so conducted as not to unreasonably

impede the progress of manufacture. 10.7 The Contractor shall be responsible to perform or to have performed by

others any and all Tests and inspections requested by the Employer or his authorised representative, as part of his duties under the Contract. The Contractor shall inspect the Work for which he is responsible to ensure proper performance. To this end, he shall prepare and submit all pre-inspection forms, releases, post-inspection reports, test reports and such other documentation in such details and at such intervals as the Employer or his authorised representative may request.

10.8 If the Employer has reasons to suspect the existence of hidden defects

due to faulty materials and workmanship, he will have the right to order the removal and rebuilding of the doubtful parts of the Work or carrying out additional Tests as required. The costs involved in such operation shall be to the account of the Contractor.

10.9 On completion of shop fabrication, the Contractor shall assemble in his

shop all fabricated and procured parts into sub-assemblies and complete assemblies as stated in clause 10.1 to ensure proper field Erection or as directed by the Employer. All parts shall be match-marked by the Contractor to facilitate reassembly at Site.

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10.10 In all cases whether at the premises or works of the Contractor or/of any sub-Contractor, the Contractor except where otherwise specified, shall provide free of charge to the Employer, such labour, materials, electricity, fuel, water, stores, apparatus, instruments, shop drawings and performance data including graphs, efficiency and characteristic curves and other pertinent information as may reasonably be demanded to carry out efficiently such tests of the Plant in accordance with the Contract and shall give facilities to the Employer or his representative to accomplish such testing.

10.11 When the Tests have been satisfactorily completed at the Contractor's or

sub-Contractor's works in the presence of the Employer or his representative, a certificate to that effect shall be issued. If a final certificate cannot be issued, a preliminary or provisional certificate shall be issued. No Plant shall be railed or otherwise dispatched before certificate of acceptance for despatch has been issued. The Employer has a right to with-hold such certificate if the sub-assemblies and assemblies covered in the list are not as per the approved list in clause 10.1. The satisfactory completion of these Tests or the issue of the certificate shall not bind the Employer to accept the Plant, should it, on further tests,either before or after erection be found not to comply with the Contract.

10.12 In case where the Contract is concluded for supply of main Equipment as

well as for spare parts, the Contractor shall tender for inspection the spare parts only after the main equipment has been tendered for inspection and accepted.

11.0 TESTS AT SITE: 11.1 In all cases for Tests at the Site, the Contractor, except where otherwise

specified, shall provide free of charge, such labour, materials, stores, all apparatus and instruments as may be required from time to time as may reasonably be demanded to carry out such Tests of the Plant, Material or workmanship in accordance with the Contract. Special apparatus and instrument's, if any required, shall be provided by the Contractor.

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12.0 TESTS ON COMPLETION: 12.1 Wherever possible, all Tests shall be carried out before shipment,

railment or despatch by any other means. Should however, it becomes necessary for the final Tests as to performance and guarantees to be held over until the Plant is erected at Site, they shall be carried out in the presence of the Employer's representative within 1 month or such time as may be considered reasonable by the Employer from the date of completion of Erection or from the date on which the Plant is put into commission. Should the result of these Tests not come within the margin specified, the Tests shall, if required, be repeated within 1 month from the date Plant is ready for re-test. All tests will be conducted by the Contractor in the presence of the Employer's representatives. If the results are not still satisfactory, further tests shall be conducted by the Contractor in the presence of Employers representative,after executing the necessary adjustments, repairs, rectification & modifications etc,the cost of which shall be born by the Contractor. Further the Contractor shall repay to the Employer all expenses which the Employer may be put to by such retests.

13.0 PACKING, PROTECTIVE PAINTING AND MARKING: 13.1 Packing and Protective painting: 13.1.1 The Contractor shall include and provide for securely protecting and

packing the Equipment in accordance with the best established practices so as to protect the contents from damage during transit from point of manufacture until after arrival at Erection Site under conditions which may involve multiple handling, transport by ship, rail and road, reshipment, storage, exposure to heat, moisture, rain etc. and possibility of pilferage. The packing standards will have to be approved by the Employer or his representative and wherever considered necessary, the Employer or his representative may check the packing before despatch and may ask for modifications to the extent considered necessary to be carried out in the packing and Contractor shall carry out the same free of charge. All packing shall allow for easy removal and checking at Site.

13.1.2 The Contractor shall properly clean the surface of the Equipment and

apply complete system of painting as per the Contract. All primer and paints and colours shall be of best quality and the Employer shall have the option to approve the same. The Contractor will bring to the notice of the Employer/Engineer well in advance, cases where for technical reasons, final painting is to be done during/after Erection. The Contractor shall assess and intimate to the Employer/Engineer the requirement of such paint along with the erection documents to be supplied as per clause No: 5.7

13.1.3 Heavy machinery shall be mounted and bolted to skids which shall have

sufficient strength to support and prevent distortion to the machine. All

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openings of pipes, large valves and Machinery must be protected by wooden covers or plugs and machined threads must be covered by caps to protect against damage in transit.

13.1.4 All Equipment and parts susceptible to corrosion by exposure to

moisture and all electrical Equipment shall be thoroughly protected against damage during transit and storage. Machine finished surfaces shall be coated with approved anti-rust compound and all unfinished surfaces shall be coated with approved anti-rust compound and all unfinished surfaces of machinery are to be given one coat of rust protective paint. In addition to normal packing, all electrical Equipment shall be wrapped in polythene or polyprophlene plastic sheet and openings in electrical Equipment shall be sealed with water proof tapes. De-humidifying agents shall be included within such wrapper. A protective grease proof paper shall be inserted between the brushes and armatures of motors and generators.

13.1.5 The Contractor shall deliver the following Stores in individual separate

package having marking corresponding to the Equipment: 13.1.5.1 Foundation bolts, embedments etc. 13.1.5.2 Commissioning spares 13.1.5.3 Special tools for repair and maintenance 13.1.5.4 Refractory and lining Materials 13.1.5.5 Specialised erection tools, tackle, instruments and appliances. 13.1.5.6 Consumables 13.1.5.7 Spare parts and accessories. 13.1.6 Fragile items shall be wrapped in crepe cellulose wadding or some

equally efficient cushioning materials and floated in excelsior and packed in substantial wooden covers with special precaution against risk or breakage.

13.1.7 The shipment dimensions of each package shall not exceed the

maximum dimension of packings which can be accepted for transport over the broad gauge system of the Indian Railways. If,however, over size consignments are unavoidable, the Contractor shall keep informed the Engineer before transporting such consignments. However the transportation of consignments is the responsibility of the Contractor.

13.1.8 Each Equipment or parts of Equipment shall, when shipped or railed or

otherwise despatched,be tagged with reference to the assembly drawings and corresponding part numbers.

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13.2 MARKING: 13.2.1 All packages shall be clearly and properly marked in English language

with indelible paint stenciling. All previous irrelevant markings shall be carefully obliterated. The Contractor shall ensure that the following are clearly stenciled with good quality non-fading paint on the packages in characters of 150 mm high or so depending upon size of the packages).

a) Name and address of the : Engineer(designation & address Consignee to be given in the detailed letter of intent.) Visakhapatnam Steel Plant Rashtriya Ispat Nigam Ltd Visakhapatnam-530 031 Andhra Pradesh-India b) Name of the Contractor/ : Sub-Contractor(as the case may be) c) Agreement Number : d) Description : e) Quantity : f) Package Number : g) Gross and Net Weights : h) Outer dimensions : i) Port of loading and : unloading(for imported Equipment) j) Place of loading and : unloading (for indigenous Equipment) 13.2.1.1 To avail CENVAT credit on ACD (Additional Customs Duty) portion,

Bill of Entry shall indicate the import is made for RINL & shall mention “IN ACCOUNT WITH RINL” in BOE.

13.2.2 Wherever necessary the packages shall be marked with special markings

such as "TOP, "BOTTOM", "DO NOT OVERTURN", "FRAGILE", "HANDLE WITH CARE", "KEEP DRY", etc. as well as a special symbol indicating the top.

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13.2.3 The position of center of gravity shall be marked with a vertical red line. The position of sling or chain shall be indicated on the packing case for facilitating the use of crane if necessary.

13.2.4. The Contractor shall furnish along with the respective packing

lists, identification of the packages for the following categories

a) to be stored in covered area.

b) to be stored in outer yard with covered tarpaulin c) to be stored in outer yard without cover d) to be stored in air conditioned stores e) any special precaution to be taken during storage. However the storage is the responsibility of the contractor. 13.2.5 For identification of packages at site, colour bands shall be painted in all

packages of specified colour of at least 150mm width throughout the breadth of the package on all four sides, at a depth of 300mm below the top of the package.

13.2.6 In addition to the above, the packages containing commissioning spares,

tools & tackle, operating supplies and spares for operation and maintenance shall be painted in black non-fading paint with the following letter in capital 'C,'T','O' or 'S' respectively in characters of 250mm high or so at the right and top corner.

13.2.7 In the case of bundles or metal base, the markings, as herein designated,

are to be placed on metal tags which shall be securely attached to the bundle or base as conspicuously as possible.

13.3 Packing lists: 13.3.1 Each package shall have a detailed packing list quoting specifically the

name of the Contractor, number and date of the Contract, the name of the Employer and the detailed list of, contents packed within the package indicating the nomenclature of the Stores and a schedule of parts of each complete Equipment giving the part numbers with reference to the assembly drawings and the quantity of each part, drawing numbers and tag numbers. A duplicate copy of the packing list shall be put in a water proof envelope and fastened securely to the outside of the package as well as to unpacked pieces or bundles.

13.4 Detailed marking instructions and further particulars for identification

shall be furnished to the Contractor by the Employer after award of the Contract.

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13.5 Notwithstanding anything stated in the clause, the Contractor shall be entirely responsible for loss, damage or depreciation to the Materials occasioned by faulty, defective or insecure packing or due to improper or insufficient protective measures.

13.6 Bill of materials 13.6.1 Bill of materials shall be submitted along with the drawings to which

they pertain and shall include listing of materials being supplied showing piece marks,description and reference drawing numbers.Packing lists described in the marking and shipping instructions covered in these General Conditions must have the same identification as shown on the applicable bill of materials.

14.0 ACCESS TO AND POSSESSION OF SITE: 14.1 Subject to clause No:14.3, access to and possession of the Site shall be

afforded to the Contractor by the Employer in reasonable time to start the Contract Work.

14.2 In the execution of the Work no person other than the Contractor,

permitted sub-Contractor and his or their employees shall be allowed on the Site except with the written permission of the Employer but facilities to inspect the Work at all times shall be afforded to the Employer and his representatives and other authorised officials.

14.3 The access to and possession of the Site referred to in clause No.14.1

above shall not be exclusive to the Contractor but only such as shall enable him to execute the Work. The Contractor shall afford to the Employer, and to the other Contractors, whose names shall have been previously communicated in writing to the Contractor by the Employer, reasonable facilities for the execution of work concurrently with his own.

14.4 Unless otherwise provided in the Contract, the Employer shall give the

Contractor, facilities as per clause No.22.0 for carrying out the Work on the Site continuously during the normal working hours. The Contractor may in agreement with the Employer arrange that Work may also be done at other times, in which case the Employer will provide the above facilities in those other times also.

15.0 OBLIGATIONS OF THE CONTRACTOR FOR ERECTION OF PLANT MACHINERY AND EQUIPMENT: 15.1. The Erection of the Plant and equipment supplied under the Contract

shall be carried out by the Contractor. The Contractor shall be solely responsible for the satisfactory Erection, testing and commissioning of the Plant and Equipment including demonstration of performance guarantee notwithstanding that the Contractor may have been assisted by the Employer or his authorised representative in doing so. Unless otherwise agreed upon, the responsibilities of the Contractor shall

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include, but not be limited to providing at his own cost, the following work and services.

15.1.1 Ensuring coordinated delivery of all Equipment and Materials, so as to

ensure that these will be available at Site in the order in which they will be required for proper sequence of Erection.

15.1.2 Ensuring that adequate quantities of correct commissioning spares and

consumables are available at Site for purposes of start-up of the Plant and Equipment.

15.1.3 Unloading the Equipment from rail or road transport and move them to

the storage area and/or Erection site securely and safely. 15.1.4 Erecting and maintain necessary Site offices and covered storages as

required and arranging for maintaining in a neat manner including drainage of the area placed at Contractor's disposal. The Contractor shall at all times provide sufficient fencing, notice boards and lights to protect and warn others as may be considered necessary by the Employer. All irremovable property including fixtures erected or acquired by the Contractor for carrying out the Erection of the Plant or in connection thereof shall become the property of the Employer without any further payment as soon as the Contractor has completed his Work.

15.1.5 Opening of packing cases, inspecting and checking of Materials and

repair and replacement of Contract Materials damaged or lost in transit or at Site and proper storage of the materials /equipment.

15.1.6 Final adjustment of foundation levels by chipping and dressing, checking

locations, elevations etc. of anchor blots, certifying for grouting of anchor bolts and base-plates and carrying out minor civil works as may be required in connection with the Erection Work.

15.1.7 Applying approved final painting to all Equipment, piping hangers,

structures etc. supplied and erected under the Contract and any touching up of painting wherever required.

15.1.8 Providing all consumable materials and stores required for the Work,

unless otherwise specifically excluded in the Contract. 15.1.9 Providing all ladders, platforms, supports and other necessary facilities

required for handling, Erection and inspection in stages of the Equipment supplied under the Contract.

15.1.10 Unless otherwise provided in the Contract, providing all construction

equipment, welding equipment, erection tools, lifting tackle, instruments and appliances required for the Work. The Contractor shall submit to the Employer a list of such equipment including tool's, tackle and instruments that he will use for the Work. The tools, tackle and other items provided by the Contractor shall be solely used for the purpose of

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the Contract Work and shall not be taken away while they are required at the Site for the Erection Work, without the explicit written permission of the Engineer.

15.1.11 Providing watch and ward to ensure security and safety of Materials

under the Contractor's custody till Plant is taken over by the Employer. 15.1.12 Providing necessary supervisory personnel, staff, skilled and unskilled

labour including electrical personnel with approved licence as per Indian Electricity Rules, 1956 as amended from time to time. The Contractor shall employ only competent personnel fully experienced and capable of performing the duties assigned to them. The Contractor shall ensure that when local laws require, the concerned employees obtain and hold certificates of competency for their work from the competent authority. If the Contractor uses his own cranes and transport equipment, these must be manned by skilled operators. The Contractor shall take all safety precautions during work and ensure that his personnel use shoes, safety belts, gloves, helmets, masks etc. as are necessary for their safety. The Contractor shall provide identity badges for all his personnel which must be properly displayed during working hours at site. The Contractor shall on demand by the Employer,,for adequate reasons, discharge any personnel not acceptable to the employer and engage fresh labour in replacement.

15.1.13 Complying with such instructions of the Employer as he may

consider necessary in the interest of satisfactory progress and completion of the general work according to the Schedule.

15.1.14 Making all arrangements to ensure that other's work is not

impeded or workmen are not endangered. 15.1.15 Affording the Employer/Engineer access at any time to the

Erection Site, giving any information desired by him about the progress of Work and affording him all facilities for inspection and Tests provided under the Contract, and submitting reports as to the progress of Contract Work in such form as may be called for by the Employer/Engineer.

15.1.16 If the Employer so desires, the Contractor within the framework

of the Erection Contract, has to take care of the maintenance of all units of the Plant upto a period of two months after preliminary acceptance. The number of personnel to be retained during this period and the time for which they may have to stay on will be settled by mutual Consultation between the Employer and the Contractor and the cost of such personnel shall be paid according to the tariff rates and allowances to be mutually agreed upon. During this period also, the Contractor's personnel will train the Employer's personnel in proper operation and maintenance work.

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15.1.17 After the expiry of the two months period, the Contractor undertakes to give the necessary instructions and supervise to the best of his ability the carrying out of the operation and maintenance by the Employer to ensure that the Plant is properly maintained.

15.2 Watching and Lighting: The Contractor shall in connection with the

erection, testing and commissioning of the works provide and maintain at his own cost proper fencing, lighting, guarding and watching of all the works at the site and when and where necessary as required by the Engineer or any competent, statutory or other authority for the protection of the works or for the safety and convenience to the public or others, until the works are taken over by the Employer.

The lighting in and around the work spots shall be so arranged that there is sufficient illumination available in minimum area of 15 Mtrs radius around the workspot.

15.3 Safety: The Contractor shall take all necessary safety precautions and

confirm to the general safety guidelines of Employer and shall ensure that the workmen employed by him follow all safety procedures and adopt all safety precautions. The Employer shall not be in any way held responsible for any accident or damages incurred and claims arising there from during the period of erection, testing & commissioning putting the plant into operation.

15.4 Damages to persons & Property: The Contractor shall (except in so far as

the Contract otherwise provides) indemnify and keep indemnified the Employer against all losses and claims for injuries or damages to any person or property whatsoever (including surface or others damage to land or trees or crops being on the site suffered by tenants or occupiers) which may arise out of or in consequence of the construction and maintenance of the works and against all claims, demands, proceedings damages, costs charges and expenses whatsoever in respect thereof or in relation thereto, provided always that nothing herein contained shall be deemed to render the Contractor liable for or in respect of or to indemnify the Employer against any compensation of damages for or with respect to

a) The permanent use or occupation of land by the works or any part

thereof(save in respect-of damages to crops as aforesaid).

b) The right of the Employer to Construct the Works or any part thereof on, over, under, in or through any land.

c) Interference whether temporary or permanent resulting any right

of light, air, way or other easement or quasieasement which is the unavoidable result of the construction of the works in accordance with the Contract.

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d) Injuries or damages to person or property resulting from any act or neglect done or committed during the currency of the Contract by the Employer ,his agents, servants other Contractors (not being employed by the Contractor) or for or in respect of any claim demands, proceedings, damages, costs, charges and expenses in respect thereof or in relation thereto.

15.4.1 Third party Insurance: Before commencing the execution of the Works

the Contractor (but without limiting his obligations and responsibilities under Clause 15.4 hereof) shall insure against any damages, loss or injury which may occur to any property (including that of the Employer) or to any person (including any employee of the Employer) by or arising out of the execution of the Works of Temporary works or in the carrying out of the Contract otherwise than due to the matters referred to in the Provision of Clause 15.4 hereof.

15.4.2 Minimum amount of third party insurance : Such Insurance shall be

effected with an insurer and in terms, approved by the Employer and for an amount not less than Rs One lakh and the Contractor shall whenever required produce to the Engineer the valid policy or policies of insurance and the receipts for payment of the current premium.

15.4.3 Accident or injury to Workmen: The employer shall not be liable for or in

respect of any damages or compensation payable at Law in respect of or in consequences of any accident or injury to any workman or other person in the employment of the Contractor or any sub Contractor save and except an accident or injury resulting from any act or default of the Employer, his agents or servants and the Contractor shall indemnify and keep indemnified the Employer against all such damages and compensation (save and except as aforesaid) and against all claims, demands, proceedings, costs, charges and expenses whatsoever in respect or in relation thereto.

15.5 Delay in obtaining materials by the Employer: If the Employer has

undertaken to supply materials specified in the Special conditions at rates stated therein the Contractor shall keep himself in touch with the day-to-day position regarding the supply of materials from the Engineer and to so adjust the progress of the work that their labour may not remain idle nor may there be any other claim due to or arising from delay in obtaining the materials. No claim whatsoever shall be admitted by the Employer on account of delay in supplying materials.

15.6 Return of Surplus materials : Notwithstanding anything contained to the

contrary any where in this Contract wherever any materials for the execution of the Contract are procured with the assistance of the Employer either by issue from Employer's stock or purchase made under orders or permits or licenses issued by the Employer, the Contractor shall use the said materials economically and solely for the purpose of the Contract and not dispose them of without the permission of the Employer and if required by the Engineer shall return to the Employer all

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surplus or unserviceable materials that may be left with the Contractor after the completion of the Contract or at its termination for any reason whatsoever on being paid or credited such price as the Engineer shall determine, having due regard to the initial cost and the present condition of the materials at the time of such return thereof. The credit to be allowed to the Contractor shall not exceed the amount charged to him excluding the departmental and storage charges etc., if any. In the event of breach of the aforesaid condition, the Contractor shall (in addition to making himself liable for action for contravention of the terms of the licenses or permit and/or for criminal breach of trust) be liable to the Employer for all moneys, advantages of profits accrued or which in the usual course would have accrued to the Contractor by reason of such breach.

15.7 Vesting of constructional Plant : All constructional plant, temporary

works and materials owned by the Contractor or by any company in which the Contractor has controlling interest shall when brought on to the site immediately be deemed to be vested with the Employer till the completion of work.

15.8 Immovability of constructional Plant etc. : No constructional plant,

Temporary Works materials of any part thereof shall be removed from the site without the written consent of the Engineer, which consent shall not be unreasonably withheld where the same is no longer immediately required for the purpose of completion of the works but, the Employer will permit the Contractor the exclusive use of all such Constructional plant, temporary Works and materials in and for the completion of the works until the occurrence of any event which gives the Employer the right to exclude the Contractor from the Site and proceed with the completion of the Works.

15.9 Liability of loss or injury to Plant : The Employer shall not at any time be

liable for the loss or of injury to any of the Constructional plant, temporary works or materials which have been deemed to be vested with the Employer under sub-clause 15.7 above save as mentioned in clause 28 hereof.

15.10 On completion of the Erection Work and connecting up of electric power

supply and utilities, the Contractor shall promptly notify the Employer/Engineer of the proposed date of preliminary acceptance, commencement of operation, start-up commissioning and performance Tests to demonstrate for guarantees and the probable duration. The Employer/Engineer will provide facilities as are agreed upon in the Contract for operating the Plant during the period when the Plant will be operated under the supervision of the Contract. Should the above period extend beyond a reasonable time due to either difficulties encountered with the Contractor's Plant and Equipment or inadequacy of the Contractor's staff, the Employer/Engineer will have the right to charge such amount as may be deemed reasonable by the Employer/Engineer for the materials and services provided by the Employer/Engineer as

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mentioned in clause 19. The duration of the start-up, commissioning and performance periods shall be established in the Erection Schedule forming part of the Contract.

15.11 CONTRACTOR'S REPRESENTATIVE: 15.11.1 In order to carry out his responsibilities under the contract, the

Contractor shall employ competent representative/s whose names shall previously have been communicated in writing by the Contractor to the Employer/Engineer to superintend the Erection work. The said representative/s shall be present at Site during working hours and any written instructions that the Employer/Engineer or his authorised representative(s) may give to the said representative/s of the Contractor shall be deemed to have been given to the Contractor.

15.11.2 The Contractor shall ensure that each individual of the

Contractor's personnel at Site shall cooperate with Engineer and any and all other agencies engaged in the Work to avoid difficulties in carrying out the Work. Failure to extend such cooperation or misconduct or incompetence or negligence shall be sufficient cause for removal of such individual by the Contractor forthwith upon request by the Engineer. In such cases, the Contractor shall provide immediately competent personnel to replace such individuals at the Contractor's own cost and such personnel shall not be again employed. In case of disagreement as to the cause of such removal, the decision of the Employer shall be final.

15.11.3 The Contractor's representatives shall be available for such

periods as the Employer may require and they shall work at all reasonable times as may be necessary to complete the Work within the time specified in the Contract.

15.12 During the execution of the work, no personnel other than the

Contractor or his duly appointed representatives, sub-Contractors and workmen, shall be allowed to do work at Site except by the special permission in writing of Employer/Engineer or his authorised representatives. The Contractor shall not object to the execution of the work by other agencies and shall afford them every facility for the execution of their several works simultaneously with his own.

The Work so far as it is carried out in the Employer's premises, shall be carried out at such time as the Employer may approve and so as not to interfere unnecessarily with the conduct of the Employer's business. The Employer shall give the Contractor all reasonable facilities for carrying out his Work. The Contractor shall be liable for such accidents as may be due to the negligence on his part in accordance with Indian laws and regulations.

15.13 GENERAL SUPERVISION BY THE EMPLOYER AND COORDINATION:

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15.13.1 All the Work shall be carried out under the general supervision of and to the satisfaction of the Engineer or his authorised representatives. The Contractor shall be responsible for the correctness of the positions, levels and dimensions of the Work according to the drawings etc. notwithstanding that he may have been assisted by the Engineer or his authorised representatives in setting out the same.

15.13.2 The Contractor shall at all times work in coordination with the

Engineer and his authorised representatives and shall afford opportunities for the Employer's representatives to become familiar with the Erection, maintenance and operation of the Equipment supplied under the Contract. In respect of observance of local rules, administrative matters, coordination with other Contractors and similar matters, the Contractor and his personnel shall work under the coordination of the Engineer.

15.14 PAYMENT OF TAXES: 15.14.1 The Contractor shall pay all taxes due in India for the personnel

employed by the Contractor for Work arising out of their services in connection with the Contract.

15.14.2 The Contractor shall be responsible for arranging and obtaining at

his own cost necessary work permits, passports, visas, police permits and expenses for customs duty related to personal effects of any foreign personnel, employed by him for the Erection, Start-up, Testing and Commissioning the work.

15.15 EXECUTION OF CONTRACTS FOR ERECTION: 15.15.1 The Erection of Plant and Equipment supplied under the Contract shall

be carried out by the Contractor. The Contractor shall be solely responsible for the satisfactory Erection, start-up, testing and commissioning of the Plant and Equipment, including demonstration of performance guarantees, notwithstanding that the Contractor may have been assisted by the Employer or his authorised representatives in doing so. This shall include ensuring correctness of Erection of all Plant and Equipment supplied by the Contractor and handing over the Plant and Equipment to the Employer on issue of provisional acceptance certificate.

15.15.2 The Contractor shall so arrange his work that the Contract Work

erected by him shall be in satisfactory working order and ready for commissioning at the stipulated time and shall be coordinated in every respect with the work of other Contractors in consultation with the Employer so that a continuous progress of the general Contract Work is ensured.

15.16 WAGES, MEDICAL SUPERVISION ETC.

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15.16.1 The Contractor shall not employ for the purpose of the Work, any person below the age of 18 years. The Employer shall have the right to decide whether any labour employed by the Contractor is below the age limit, and to refuse to allow any labourer, whom he considers to be under-aged to be employed by the Contractor.

15.16.2 The Contractor shall in respect of all persons employed by him in the

execution of the work pay wages and observe hours and conditions of labour not less favourable than those established for similar work, trade or industry in the neighbourhood or established by machinery of arbitration to which the parties are employees and recognised organisations of workers engaged in trade or industry in the neighbourhood, or prescribed by the state or local authorities. In the absence of any rates of wages, hours or conditions of labour so established, the Contractor shall observe conditions which are not less favourable than the general level obtained by other employees whose general circumstances in trade or industry in which the Contractor is engaged are similar.

15.16.3 The Contractor shall make regular and prompt payment of wages to the

labourers engaged in the work and in no case shall the payment be delayed by more than seven days following the period for which the wages are due. If it is found that workers are not paid regularly, the Contract is liable to be terminated or the Employer will pay and recover from Contractor’s dues including penalty as per Law.

15.16.4 The Employer shall have the right to enquire into and decide any

complaint alleging that the wages paid by the Contractor to any labourer for the work done by such labourer is less than the wages paid for similar work in the neighbourhood.

15.16.5 As a number of Contractors may be working at the same time in the

erection of different parts of the Project, there is need for pursuance of a co-ordinated policy with regard to employment, wages and other conditions of work. The Contractor agrees to consult the Employer on all such matters to arrive at mutually agreed settlement.

15.16.6 The Contractor shall employ such persons as are found to be free from

contagious diseases and shall produce, if required by the Employer, certificate of fitness of all his employees working at Site. Whenever in the opinion of the Employer, it is necessary to do so, for the protection of other employees or their families, the Contractor shall arrange to remove any of his employees found to be suffering from contagious diseases to a hospital. The Contractor shall, if required by the Employer, subject all his employees to regular medical check up and produce satisfactory evidence of their being free from any contagious disease.

15.16.7The Contractor shall also be responsible for observance of the above

clauses by his sub-Contractors.

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15.17 WITHHOLDING PAYMENT: 15.17.1 The time allowed for completion of Erection as stated in the

Contract shall be reckoned from the day on which the site (a reasonable portion) is ready for taking possession by the Contractor which will be intimated to him in writing by the Engineer. The work shall not be considered finished until the Engineer has issued a certificate to that effect. In the event of the Contractor failing to complete the work within the Contract period, he shall be liable for liquidated damages as per clause 24.0 of the General conditions of Contract.

15.17.2 The Employer may with-hold the whole or part payment for

Erection claimed by the Contractor, which in the opinion of the Employer, is necessary to protect himself from loss on account of defective work not remedied or guarantees not met, claims filed against the Contractor, failure by the Contractor to make due payments for materials, labour employed by him, damage to another Contractor and so on. When grounds for with holding payments are removed to the satisfaction of the Employer, payments of the amount due to the Contractor shall be made by the Employer without interest.

15.17.3 Final payment to the Contractor shall not be made until the

Contractor delivers to the Employer a complete release of all liens arising out of the Contract or receipts in full satisfaction thereof, and either case, an affidavit that so far as he has knowledge or information, the release and receipts include all materials and labour for which a lien could be filed. If any lien remains after all payments are made, the Contractor shall refund to the Employer all money that the latter may be compelled to pay in discharging such lien including all costs and a reasonable attorney's fee.

15.18 POSSESSION PRIOR TO COMPLETION: 15.18.1 The Employer shall have the right to take possession or use any

completed or partially completed part of the Work. Such possession or use shall not be deemed to be an acceptance of any Work in accordance with the Contract.

15.19 As the erection work of the Plant & equipment or a part of Plant &

Equipment nears completion for subsequent testings trial runs, the Contractor shall intimate in writing to the Engineer, the various inputs (type and quantity) required for trial runs and commissioning affording sufficient time to the Engineer for arranging such inputs.

16.0 STATUTORY AND OTHER OBLIGATION: 16.1 Labour Rules etc. : In respect of all labour directly or indirectly employed

in the Works, the Contractor shall comply with all legislations and rules of State and/or Central Government or other local authority governing the protection of health, sanitary arrangements, wages, welfare and

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safety applicable for labour employed on building and construction works. The Minimum Wages Act, 1948, Workmen's Compensation Act,1923. Contract Labour (Regulation Abolition) Act.1970 and other statutory obligations with regard to fair wages , welfare amenities and safety measures, maintenance of register etc.will be deemed to be part of the contract. The Contractor shall take out necessary License under the Contract Labour (Regulation & abolition) Act,1970 within the time limit allowed by the appropriate Government

16.1.1 The Contractor has to comply with all statutory requirements in respect

of labour employed during the period of the contract. The Contractor has to obtain licence from Dy Commissioner of Labour, Govt of AP, Visakhapatnam and should maintain the documents/registers prescribed under the Contract Labour (R&A) Act, 1970 and follow the rules made thereunder and as amended from time to time.

16.1.2 Payment of Minimum Wages:

Wages paid to the workmen by the Contractor should not be less than the rates notified by Commissioner of Labour, Andhra Pradesh, Hyderabad published in the Andhra Pradesh Gazette from time to time with regard to the minimum wages applicable to the respective category of workmen. Wages to the workmen should be paid on or before the 7th of the subsequent month. If 7th falls on a holiday or weekly off day the payment should be made one day prior to that. Payment of PF for the month both the Employer's (in this case Contractor) and Employee's (in this case workmen employed by the Contractor) contributions should be deposited in the bank in the permanent PF code numbers and challan obtained before the 15th of the subsequent month and forwarded to the "Engineer".

In case of failure of the Contractor to comply with any of the above, the following action will be taken by Employer.

LAPSE ACTION BY THE EMPLOYER: 1. Payment of wages at

rates less than those notified under the minimum wages notification

An amount equivalent to the differential amount between wages to be paid under the minimum wages notification of the Government applicable for the period less actual wages paid shall be recovered from the bills as certified by the Engineer.

2. Non-payment of wages An amount equivalent to wages payable by the Contractor applicable for the relevant period shall be recovered from the bills as certified by Engineer.

3. Non-payment of PF Recovery of the PF amount and an amount equivalent to maximum penalty leviable by Regional Provident Fund Commissioner for the delayed period under the provisions of EPF & MP Act and Rules for delayed remittance of PF contributions (both the Employee's and Employer's contributions), shall be recovered from the bills of the Contractor as certified by

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Regional Provident Fund Commissioner for the delayed period under the provisions of EPF & MP Act and Rules for delayed remittance of PF contributions (both the Employee's and Employer's contributions), shall be recovered from the bills of the Contractor as certified by Engineer.

4. Delayed payment of PF An amount equivalent to maximum penalty leviable by Regional Provident Fund Commissioner for the delayed period under the provisions of EPF & MP Act and Rules for delayed remittance of PF contributions (both the Employee's and Employer's contributions), shall be recovered from the bills of Contractor as certified by Engineer.

16.2 Reporting of accidents to labour: The Contractor shall be responsible for

the safety of all employees and/or workmen employed or engaged by him on and in connection with the work and shall report to the Employer and other local authorities concerned all cases of serious accidents howsoever caused and wherever occurring on the works and shall make adequate arrangements for rendering immediately all possible aid to the victims of the accidents.

16.3 Workman's Compensation : The Contractors shall at all times indemnify

the Employer against all claims for compensation under the provision of the Workmen's Compensation Act, 1923 or any other Law for the time being in carrying out the Contract and against all costs and expenses incurred by the Employer in connection there with and (without prejudice to and other means of recovery). The Employer shall be entitled to deduct from any money due or to become due to the Contractor all moneys paid or payable by the Employer by way of compensation aforesaid or for costs or expenses in connection with any claim thereto and the Contractor shall abide by the decision of the Employer as to the sum payable by the Contractor under the provision of this clause.

16.4 Explosives shall not be used on the work by the Contractor except with

the permission in writing of the Employer and in the manner and to the extent to which he has prescribed. Where explosives are used, the same shall be stored in a special magazine to be provided at the cost of the Contractor and shall be responsible for complying with all statutory obligations in these respects.The Contractor is liable for any damages loss or injury to any person or property that may occur as a result of the explosion of the explosives.

16.5 The Contractor shall give all notices and pay all fees required to be given

or paid under any Central or State statute, ordinance or other law or any regulation or bye-law of any local or other duly constituted authority in

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relation to the execution of the Work or of any temporary work and by the rules and regulations of all public bodies whose property or rights are affected or may be affected in way by the Work or any temporary work.

16.6 The Contractor shall conform in all respects with the provisions of any

statute, ordinance or laws as aforesaid and the rules, regulations or bye-laws of any local or other duly constituted authority which may be applicable to the Work or to any temporary work and with such rules and regulations of public bodies as aforesaid and shall keep the Employer indemnified against all penalties and liabilities of every kind for breach of any such statute, ordinance, law, rule, regulation or bye-law.

16.7 All fossils, coins, articles of value of antiquity and structures and other

remains or things of geological or archaeological interest discovered on the Site of the work shall, as between the Employer and the Contractor, be deemed to be absolute property of the Employer and the Contractor shall take reasonable precautions to prevent his workmen or any other persons from removing or damaging any such article or thing and shall immediately upon discovery thereof and before removal, acquaint the employer's representative of such discovery and carry out at the expense of the employer the disposal, removal or otherwise of the same.

16.8 Except where otherwise specified, the Contractor shall pay all tollage and

other royalties, rent and other payments or compensation (if any ) for getting stone, sand, gravel, clay or other materials required for the work or temporary work or any of them.

16.9 The Contractor shall, if required by the Employer, deliver to the

Employer, a return in detail in such form and at such intervals as the Employer may prescribe showing the numbers of the several classes of labour from time to time employed by the Contractor on the Site.

16.10 All operations necessary for the execution of the Work and for the

construction of any temporary work shall, so far as compliance with the requirements of the Contract permits, be carried out so as not to interfere unnecessarily or improperly with the public convenience or the access to use and occupation of public or private roads and foot paths or of properties whether in the possession of the Employer or of any other person and the Contractor shall save harmless and indemnify the Employer in respect of all claims, demands, proceedings, damages, costs, charges and expenses whatsoever arising out of or in relation to any such matters.

16.11 The Contractor shall use every reasonable means to prevent any of the

highway and bridges communicating with or on the routes to the Site from being damaged or injured by any traffic of the Contractor or any of his sub-Contractors and in particular shall select routes, choose and use vehicles and restrict and distribute loads so that any such extraordinary traffic as will inevitably arise from the moving of the Plant and Materials from and to the Site shall be limited as far as reasonably possible so that

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no unnecessary damage or injury may be occasioned to such high ways and bridges. For any damage caused to the bridges hereof, the Contractor shall be solely responsible.

16.12 Where the nature of the work is such as to require the use by the

Contractor of water-borne transport, the foregoing provisions of this clause shall be construed as though "highways" included a lock, dock, sea-wall or other structure related to a water way and "vehicles" included craft and shall have effect accordingly.

16.13 On the completion of the Work, all rubbish, debris,kilns, vats, tanks,

materials and temporary structures of any sort or kind used for the purpose of or connected with its construction are to be removed by the Contractor and all pits and excavations filled up and the Site handed over in a tidy and workmanlike conditions and no final payments in settlement of the accounts for the said work shall be held to be due or shall be made to the Contractor till such site clearance shall have been effected by him held to be due or shall be made to the Contractor till such site clearance shall have been effected by him and such clearance may be made by the Employer at the expense of the Contractor in the event of his failure to comply with this provision within seven days after receiving notice in writing from the Employer to that effect. If it becomes necessary for the Employer to have the Site cleared as indicated above, at the expense of the Contractor, the Employer shall under no circumstances be held liable for any losses or damages to such of the Contractor's property as may be on such Site due to such removal therefrom, which removal may be affected by means of public sale of such materials and property or in such way as seems fit and most convenient to the Employer.

16.14 The Contractor shall be responsible for the safety of his workmen and

employees. All accidents to them on construction are to be immediately reported to the required authorities. The Contractor shall be responsible that all such accidents however and wherever occurring on his works are reported without delay to the Employer and the Employer will provide necessary assistance that may be required to the best of his ability.

16.15 The Contractor shall comply with the provisions of the Payment of Wages

Act 1936 and the rules made thereunder in respect of all employees employed by him in carrying out this Contract as he himself and not the Employer is responsible under the said Act for the compliance thereof.

16.16 The use or sale of ardent spirits or other intoxicating beverages upon the

Work, or in any of the buildings, boarding houses, encampments, or other tenements owned, occupied by or within the control of the Contractor or any of his employees, is strictly forbidden and shall exercise his influence and authority to the utmost extent to comply with these conditions.

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16.17 The Contractor must take sufficient care in moving construction Plant and equipment from one place to another so that they may not cause any damage to the property of the Employer, particularly to the overhead and under-ground cables and in the event of his failure to do so, the cost of such damage including eventual loss of working hours in any plant as estimated by the Employer is to be borne by the Contractor.

16.18 The Contractor shall not, in the performance of Contract Work,in any

manner endanger the safety or unlawfully interfere with the convenience of the public.

17.0 WORK MATERIALS AND PLANT: 17.1 Quality of materials & Workmanship and tests : All materials and

workmanship shall be of the respective kinds described in the Contract and in accordance with the Engineer's instructions and shall be subject from time to time to such tests as the Engineer may direct at the place of manufacture of fabrication or on the Site or at all or any of such places. The Contractor shall provide such assistance, instruments, machines, labour and materials as are normally required for examining, measuring and testing any work and the quality, weight or quantity of any material used and shall supply samples of materials before incorporation in the works for testing as may be selected and required by the Engineer.

17.2 Cost of Samples : All samples shall be supplied by the Contractor at his

own cost of the supply thereof clearly intended or provided for in the Contract.

17.3 Cost of test: The cost of making any test shall be borne by the Contractor

if such test is clearly intended by or provided for in the Contract. 17.3.1 Cost of tests not provided for etc. : If any test is ordered by the Engineer

which is either not so intended by or provided for or (in the cases above mentioned) is not so particularised or though so intended or provided for is ordered by the Engineer to be carried out by an independent person at any place other than the Site or the place of manufacture or fabrication of the material tested, then the cost of such test shall be borne by the Contractor if the test shows the workmanship or materials not to be in accordance with the provisions of the Contract or the Engineers instructions but otherwise the cost of such test shall be borne by the Employer.

17.4 Access to Site : The Engineer and any person authorised by him shall at

all times have access to the Works and to the Site and to all workshops and places where work is being prepared or where materials manufactured, articles and machinery are being obtained for the works and the Contractor shall afford every assistance in obtaining the right to such access.

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17.5 Examination of work before covering up: No work shall be covered up or put out of view without the approval of the Engineer. The Contractor shall afford full opportunity for the Engineer to examine and measure any work which is about to be covered up or put out of view. The Contractor shall give due notice to the Engineer whenever any such work/works is/are ready or about to be ready for examination and the Engineer, shall without unreasonable delay,,unless he considers it unnecessary and advises the Contractor accordingly, attend for the purpose of examining and measuring such work/works.

17.5.1 Uncovering & Making Openings : The Contractor shall uncover any part

or parts of the Works or make openings in or though the same as the Engineer may from time to time direct and shall reinstate and make good such part or parts to the satisfaction of the Engineer. If any such part or parts have been covered up or put out of view after compliance with the requirements of Clause 17.5 and or found to be executed in accordance with the Contract the expenses of uncovering, making openings in or through, reinstating and making good the same shall be borne by the employer but in any other case all such expenses shall be borne by the Contractor and shall be recoverable from him by the Employer or may be deducted by the Employer from any moneys due or which may become due to the Contractor under the Contract or any other Contract between the Contractor and the Employer or Employer's Subsidiary units/Companies.

17.6 Removal of improper work and materials : The Engineer shall, during the

progress of the works have the right to order in writing from time to time.

a) The removal from the site within such time or times as may be specified in the order of any materials which, in the opinion of the Engineer, are not in accordance with the contract.

b) The substitution of proper and suitable materials and

c) The removal and proper re-execution (not with standing any previous tests thereof or interim payment therefor) of any work which in respect of materials or workmanship is not in the opinion of the Engineer in accordance with the Contract.

17.7 Default of Contractor in compliance : In case of default on the part of

Contractor in carrying out the order/orders mentioned under clause 17.6 above the Employer shall be entitled to employ and pay other persons to carry out the same and all expenses consequent there on or incidental thereto shall be borne by the Contractor and shall be recoverable from him by the Employer for or may be deducted by the Employer under this Contract or any other Contract between the Contractor and the Employer or Employer's subsidiary units/Companies from any money due or which may become due to the Contractor.

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17.8 Suspension of work : The Contractor shall on the written order of the Engineer suspend the progress of the works or any part thereof for such time or times and such manner as the Engineer may consider necessary and shall during such suspension properly protect and secure the work so far as is necessary in the opinion of the Engineer. The extra cost (if any) incurred by the Contractor in giving effect to the Engineer's instructions under this Clause shall be borne and be paid by the Employer unless such suspension is

a) Otherwise provided for in the Contract

b) Necessary for proper execution of the work or by reason of weather or other force-majeure conditions or by some Default on the part of the Contractor or

c) Necessary for safety of works or any part thereof provided that the

Contractor shall not be entitled to recover any such extra cost unless he gives notice in writing of his intention to claim to the Engineer within 30 days of the Engineer's order. The Engineer shall settle and determine the extra payment to be made to the Contractor in respect of such claims as the Engineer shall consider fair and reasonable.

17.9 Suspension lasting more than three months : If the progress of the works

or any part thereof is suspended on the written order of the Engineer for more than three months, the Contractor may serve a written notice on the Engineer requiring permission within 30 days from the receipt thereof to proceed with the works or that part thereof in regard to which the progress is suspended and if such permission is not granted within that time the Contractor by a further written notice so served may (but is not bound to) elect to treat the suspension, where it affects part only of the works as an omission of such part under Clause-27.0 here or where it affects the whole works as an abandonment of the Contract by the Employer, without attaching any liability therefor on the Employer.

18.0 PRELIMINARY ACCEPTANCE 18.1 Preliminary Acceptance: 18.1.1 As soon as the Erection of the Plant along with auxiliary facilities is

completed, the Contractor shall notify the Employer in writing of the proposed date of commencement of preliminary tests. The Employer then jointly with the Contractor's representative will proceed with the preliminary tests to prove that the plant has been completely delivered, properly erected and is fit to be operated. As soon as the tests have been carried out and results are found to the satisfaction of the Employer, start up operation and trial runs shall be commenced.

18.1.2 Rejection of Defective Plant, Materials and Workmanship: If the

completed Plant, or any portion thereof at any time before it is accepted

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or taken over, be defective or fails to fulfill the requirements of the Contract, the Employer shall be at liberty to reject any Work done or Plant supplied or Materials used by the Contractor or sub-Contractor. The Employer shall give the Contractor notice as soon as reasonably be practicable, setting forth particulars of such defects or failure, and in so far as may be necessary, place the Plant at the Contractor's disposal. The Contractor shall with all speed and at his own expenses make it comply with the requirements of the Contract. Should he fail to do so within a reasonable time, the Employer may reject and replace at the cost of the Contractor, the whole or any portion of the Plant, as the case may be, which is defective or fails to fulfill the requirements of the Contract. The Contractor's liability under this clause shall be satisfied by the payment to the Employer of all money paid by the Employer to the Contractor in respect of such Plant plus the ascertained difference, if any, between the replacement price of the Equipment including charges for Erection and or supervision of erection and the original Contract price including charges for Erection and or supervision of erection in respect of such defective Plant. Should the Employer not get the rejected Plant so replaced within a reasonable time, the Contractor's liability under this clause will be satisfied by the repayment of all money paid by the Employer to him in respect of such plant.

18.1.3 In the event of such rejection, the Employer shall be entitled to the use of

the Plant in a reasonable and proper manner for a time reasonably sufficient to enable him to obtain other replacement Plant.

18.1.4 The Contractor shall be entitled to remove and retain all Plant which the

Employer may have replaced at the Contractor's cost. 18.1.5 On completion of satisfactory start up operation, the Contractor shall

notify to the employer in writing of the proposed date of commencing of the trial runs. On satisfactory trial runs, integrated operation of all the units of the plant under his scope of work shall be conducted for a period mutually agreed to between the Engineer and Contractor. During the trial runs, unless otherwise agreed to in the contract, the Employer shall provide inputs like fuel, power, utilities, operating personnel and supplies required for the operations. The Employer shall provide necessary facilities for receiving the output. The Contractor shall provide the required personnel for start up & trail runs and integrated trial operation. In these operations ,the Contractor shall also associate the Employers personnel with a view to get them acquainted with and to train them on the equipment,the precautions to be taken , method of operation & maintenance and corrective steps to be taken in case of necessities.The presence of Employer's personnel does not relieve the Contractor of his responsibility & obligation for proper running of the equipment.Supervision of the total operations in these startup operation ,trial runs and integrated operation is the responsibility of the Contractor. As soon as the integrated trial runs are completed and results are found to the satisfaction of the Employer, Preliminary acceptance test shall be conducted and the Employer shall issue a

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certificate of preliminary acceptance. In special circumstances and at the employers sole discretion, preliminary acceptance may be issued for a part of the plant.While issuing the preliminary acceptance certificate,the Engineer shall list out the various points & defects to be attended to by the Contractor within the specified time as decided by the Engineer. The Contractor shall attend to the defects & points with due diligence & speed and get the defects liquidated to the satisfaction of the Engineer within the time to be specified by the Engineer while issuing the Preliminary acceptance certificate.

18.2 TAKING OVER: 18.2.1 Various units of the plant shall be deemed to be takenover by the

Employer after trial runs and preliminary acceptance. Taking over in no way relieves the Contractor of his obligation under this contract. Taking over means taking over physical possession.

19.0 PERFORMANCE TESTS AND PROVISIONAL ACCEPTANCE: 19.1 On completion of satisfactory start-up operation and preliminary

acceptance and after liquidating the defects listed along with the issue of Preliminary acceptance certificate, the Contractor shall notify the Employer in writing of the proposed date of commencement of performance Tests. Every item of Plant and Equipment as well as the Plant as a whole shall undergo a performance Test unless otherwise decided by the Employer. The duration of the performance test shall be for a period agreed to in the Contract. The man-power utilisation for demonstration of performance guarantees shall not be more than the strength of normal operation recommended by the Contractor and accepted by the Employer.

19.2 During the performance Test, the Plant will be under the supervision of

the Contractor. Unless otherwise agreed to in the Contract, the Employer will provide labour, fuel, power, utilities and supplies.

19.3 Should the continuous operation of the Plant during the performance

Test be interrupted due to either difficulties with Plant and Equipment supplied by the Contractor or inadequacy of his staff, then the performance Test shall be restarted and run again for a continuous agreed period as mentioned in the Contract.

19.4 The Employer shall have the right to charge to the Contractor all

expenses incurred by him, in case performance Tests continue for an unreasonably long period due to interruptions as defined in the Contract.

19.5 The Plant shall be deemed to have concluded the performance Test

satisfactorily, if during the entire duration of the Test, the Plant shall have delivered the guaranteed specified output or operated at guaranteed

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specified capacity utilising specified quantity and quality of raw materials, utilities, fuel and supplies as guaranteed by the Contractor.

19.6 On satisfactory completion of the performance test of the Plant, the

Employer will normally issue a provisional acceptance certificate, provided that the Contractor undertakes to rectify defects, if any, which do not influence normal operation but which are nevertheless present in the Plant and which are indicated in writing by the Employer at the earliest possible moment. Such certificate, however, shall be deemed to be on account and shall in no way release the Contractor from his liabilities and responsibilities in respect of the Contract Plant as a whole. In special circumstances and at the Employer's sole discretion, provisional acceptance certificate may be issued for a part of the Plant.

20.0 FINAL ACCEPTANCE: 20.1 Final acceptance certificate of the Contract Plant as a whole will not be

issued until proof is rendered of satisfactory integrated operation, that is to say, that the Contract Plant is capable of giving the guaranteed performance and output.

20.1.1 Until such time as the supply of drawings, documents and information

required as per clause no.5 above are completed, the Employer will not issue the final acceptance certificate.

20.1.2 In special circumstances and at the Employer's sole discretion, final

acceptance certificate may be issued for a part of the plant. 21.0 GUARANTEE AND GUARANTEE PERIOD: 21.1 The Contractor shall be liable for a period of twelve(12) calendar months

of reliable and regular working of the Plant commencing form the date of final acceptance as per Clause No. 20.0 above to replace any parts that may fail or show signs of defects whether of his own manufacture or those of his sub-Contractors under the conditions provided for in the Contract and proper use and arising from faulty designs, materials or workmanship or erection or from any act or omission of the Contractor. If the Final acceptance of the plant is given in parts, the guarantee period of 12 moths shall be counted from the date of issue of last final acceptance certificate.

21.2 All such replacements of defective parts mentioned above shall be made

free of cost at Site by the Contractor and the return of the defective parts to the Contractor's works shall be the Contractor's responsibility and shall be made at his expenses. All expenses such as freight, insurance, customs duty, handling charges, erection charges etc. incurred by the Employer, if any, shall be to the Contractor's account. The Employer will, however, render such assistance in this matter as will expedite the same. In the case of defective parts not repairable at Site but essential in the meantime for the commercial use of the Plant, the Contractor shall

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replace at Site free of cost to the Employer the said defective parts, before the defective parts are removed to his works.

21.3 If it becomes necessary for the Contractor to replace or renew any

defective portions of the Plant under this clause, the provisions of this clause shall apply to the portions of the Plant so replaced or renewed until the expiration of 12 months from the date of such replacement or renewal or until the end of the above mentioned period of 12 months whichever may be the later. If any defect be not satisfactorily remedied within a reasonable time, the Employer may proceed to do the work at the Contractor's risk and expense but without prejudice to any other contractual rights which the Employer may have against the Contractor in respect of any such defects.

21.4 If the replacement or renewals are of such character as may affect the

efficiency of the Plant, the Contractor shall, if asked by the Employer, repeat the performance Tests mentioned in clause 19.0 above to re-establish the performance of the Plant as per requirement of the Contract. Such Tests should be carried out without any extra cost to the Employer. However, the Employer shall have the right to recover from the Contractor all extra expenses incurred by the former in carrying out such Tests.

21.5 Until the end of the guarantee period, the Contractor shall have the right

of entry at his own risk and expense, by himself or his duly authorised representative, whose name shall previously have been communicated in writing to the Employer, at all reasonable working hours, upon all necessary parts of the works for the purpose of inspecting the working and the records of the Plant and taking notes there-from and, if he desires, at his own expense, making any tests subject to the approval of the Employer, which shall not be unreasonably withheld.

21.6 The issue of the Inspection certificate/Clearance certificate shall in no

way exempt the Contractor from the provisions of this Article. 22.0 WORK AND SERVICES TO BE PROVIDED BY THE EMPLOYER: 22.1 For the due performance and completion of the contract, unless and

otherwise agreed upon, the following services will be made available free of cost to the Contractor by the Employer to the extent available for carrying out the complete erection of the plant and equipment supplied under the contract. The Contractor shall not however take a plea under any circumstances that the absence of the facilities have hampered the progress of the work entrusted to the Contractor and the Contractor will not be entitled for any compensation.

22.1.1 Water supply and power supply for construction purposes as detailed in

the Special Conditions of the Contract.

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22.1.2 Open land for the construction of the Contractor's field offices,stores, workshops, assembly yards etc. required for the execution of the contract, as detailed in the Special Conditions of the Contract.

22.1.3 A Railway approach track or road upto the respective erection site as

considered practicable by the Employer if found necessary at the discretion of the Employer.

23.0 CERTIFICATE OF PAYMENT: 23.1 Monthly payments: The Contractor shall submit to the Engineer at the

end of each month an on account bill showing the value of the supplies made up to the end of the month, accompanied by supporting documents like invoices, delivery challans, LR,RR, Inspection Certificates and Stores Receipt and Acceptance Notes etc. The Contractor will be paid monthly on the certificate of the Engineer the amount due to him on account of the value of the supplies made. Similarly the Contractor shall submit to the Engineer at the end of each month an on account bill showing the value of the work of erection, testing and commissioning executed upto the end of the month . The Contractor will be paid monthly on the certificate of the Engineer the amount due to him on account of the value of the erection work done.

23.2 Payment in terms of the Contract shall be due and payable by the

Employer within a reasonable period which will not normally exceed one month from the date of receipt of each bill by him supported by requisite documents as per the contract. In case of delay, no interest is payable.

23.3 DEDUCTION FROM CONTRACT PRICE:

The Employer shall be entitled to recover all costs, charges, damages or expenses which the Employer may have paid and for which the Contractor is liable under the Contract, by appropriating in part or whole, the security deposit furnished by the Contractor. In the event of the security deposit being insufficient, the balance shall be deducted from any sum then due or which at any time thereafter may become due to the Contractor under this or any other Contract with the Employer. Should this sum be not sufficient to cover the full amount recoverable, the Contractor shall pay to the Employer, on demand, the remaining balance due by means of a demand draft drawn in favour of the Employer.

23.4 The Engineer may by any certificate make any correction or modification

to any previous bills certified by him. 23.5 RETURN OF SECURITY DEPOSIT: After the issue of Final Acceptance

Certificate as stated in Clause 20.0, one half of the Security Deposit shall become due and shall be payable to the Contractor and the other half shall become due to the Contractor 30 days after the expiry of the period of Guarantee and after the issue of Contract Completion Certificate by

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the Employer as per Clause 23.9. Provided always that if at such time there shall remain to be executed by the Contractor any works ordered during such period pursuing to Clause 21.0, the Employer shall be entitled to withhold payment of the second half of the Security Deposit until the completion of such works.

23.6 The Contract shall not be considered as completed until the Contract

completion certificate as stated in Clause no: 23.8 have been signed by the Engineer and delivered to the Employer stating that the Contract work has been completed and maintained to his satisfaction. The maintenance certificate (guarantee completion certificate) shall be given by the Engineer 14 days from the expiry of the period of guarantee or as seen thereafter as any works ordered during such period pursuing the Clause no: 21.0 here of shall have been completed to the satisfaction of the Engineer and full effect shall be given to this clause not withstanding any previous entry of the works or the taking possession, working or using there of or any part there of by the Employer.

23.7 The Employer shall not be liable to the Contractor for any matter or thing

arising out of or in connection with the Contract or the execution of the Works unless the Contractor shall have made a claim in writing in respect there of before issue of the Contract completion certificate under this clause.

23.8 At the end of the Guarantee period the Employer shall issue a Contract

completion certificate after having satisfied that the Contract work is completed by the Contractor in all respects including the guarantee of the equipment.

24.0 LIQUIDATED DAMAGES FOR LATE DELIVERY AND DELAY IN ERECTION: 24.1 If the Contractor fails in the due performance of the contract to deliver

any part of the equipment within the time fixed by the contract or any extension thereof and/or to fulfil his obligations in time under the contract or any extension thereof, he shall be liable to pay as agreed liquidated damages and not by way of penalty, a sum of two percent of the supply order per month or part thereof by which the Delivery has been delayed. The Contractor's liability for the delay in delivery shall not in any case exceed five percent of supply order.

If the Contractor fails in the due performance of the contract to complete the erection within the time fixed by the Contract or any extension thereof and/or to fulfil his obligations in time under the contract or any extension thereof, he shall be liable to pay as agreed liquidated damages and not by way of penalty, a sum of two percent of the Installation Order per month or part thereof by which the erection has been delayed. The Contractor's liability for the delay in Erection shall not in any case exceed five percent of the Installation Order.

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24.2 The Employer may without prejudice to any other method of recovery deduct the amount of his damages from any means, in his hands due or which may become due to the Contractor under the Contract or any other Contract between the Contractor and the Employer or Employer's subsidiary units/companies. The payment or deduction of such damages shall not relieve the Contractor from his obligation to complete the works or from any other of his obligation and liabilities under the Contract.

25.0 REMEDIES AND POWERS: 25.1 Termination of Contract by the Employer: If the Contractor shall assign

the Contract without the consent in writing of the Employer first obtained or shall have an execution levied on his goods or if the Engineer shall certify in writing to the Employer that in his opinion the Contractor;

a) Has abandoned the Contract. b) Has failed to execute the work with due diligence or expedition.

c) Refuses or neglects to comply with any reasonable orders given to him in writing by the Engineer in connection with the work.

d) Has contravened the provisions in the Contract including timely

delivery and erection, testing and commissioning.

e) Has failed to remove the materials from the site or to pull down and replace the work for 14 days after receiving from the Engineer written notice that the said materials or work have been condemned and rejected by the Engineer.

f) Is not executing the works in accordance with the Contract or is

persistently or flagrantly neglecting to carryout his obligations under the Contract.

g) Has to the detriment of good workmanship or in defiance of the

Engineer's instructions to the contrary sublet any part of the Contract.

Then the Employer may after giving 15(Fifteen) days notice in writing to the Contractor may terminate the Contract at the risk and cost of the Contractor in every way without avoiding the Contract or releasing the Contractor from any of his obligations or liabilities under the Contract or affecting the rights and powers conferred on the Employer or the Engineer by the Contract.

25.2 The termination of the Contract as stated above may be either for whole

or part of the contract at the Employer's option. In the event of the Employer's terminating the Contract in the whole or in part, he may procure, on such terms and in such manner as he deems appropriate,

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materials similar to those mentioned in the Contract to the extent possible or get the remaining erection, testing and commissioning of the work of the Contract so terminated executed by any other Contractor. The Contractor shall be liable to pay to the Employer any extra amount incurred or to be incurred by the Employer for procurement from alternative sources for erection, testing and commissioning of the work by other agencies. Such recovery however shall not absolve the Contractor from his obligations under the Contract,to the extent it is not terminated.

The Employer or such other Contractor may use for such completion so much of the constructional plant, temporary works and materials which have been deemed to become the property of the Employer under Clause no: 15.7 hereof on the site as he or they may think proper and Employer may at any time sell any of the said constructional plant, temporary works and unused materials and apply the proceeds of the sale in or towards the satisfaction of any sum due or which may become due to him from the Contractor under the Contract.

25.3 Valuation at the date of termination of Contract: The engineer shall as

soon as may be practicable after any such entry and expulsion by the Employer fix and determine ex-parte or by or after reference to the parties or after such investigation or enquiries as he may think fit to make or institute and shall certify what amount (if any) had at the time of such entry and expulsion been reasonably earned by or would reasonably accrue to the Contractor in respect of work then actually done by him under the Contract and what was the value of any unused or partially used materials, any Constructional plant and Temporary works which have been deemed to become the property of the Employer Under clause 15.7 hereof upon the Site.

25.4 Payment after termination of Contract: If the Employer shall enter and

expel the Contractor under this clause, he shall not be liable to pay to the Contractor any money on account of the Contract until the expiration of the Guarantee period and thereafter until the costs of completion and maintenance damages for delays in completion (if any) and all other expenses incurred by the Employer have been ascertained and the amount there of certified by the Engineer. The Contractor shall then be entitled to receive only such sum or sums (if any) as the Engineer may certify would have been due to him upon due completion by him after deducting the said amount. But if such amount shall exceed the sum which would have been payable to the Contractor the Contractor shall upon demand pay to the employer the amount of such excess and it shall be deemed a debt due by the Contractor to the Employer and shall be recoverable accordingly.

25.5 Urgent repairs: If by reason of any accident or failure or other event

occurring to in or in connection with the works or any part thereof, either during the execution of the works or during the period of maintenance or Guarantee period any remedial or other work or repair shall in the

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opinion of the Engineer, be urgently necessary for security and the Contractor is unable, unwilling at once to do such work or repair, the Employer may by own or other workmen do such work or repair as the Engineer may consider necessary.If the work or repair so done by the Employer is work which in the opinion of the engineer the Contractor was liable to do at his own expense under the Contract, all costs and charges properly incurred by the Employer in so doing shall on demand be paid by the Contractor to the Employer or may be deducted by the Employer from any moneys due or which may become due to the Contractor under this Contract or any other Contract between the Contractor and the Employer or Employer's subsidiary units, companies. Provided always that the Engineer shall as soon after the occurrence of any such emergency as may be reasonably practicable notify the Contractor thereof in writing.

25.6 Termination of Contact by Contractor: If the Employer commits any act

of Insolvency or if the Employer shall be adjudged an insolvent or shall make an assignment or composition for the benefit of the greater part in number or amount of his creditors or shall have an order made against him or pass an effective resolution of winding up either compulsory or subject to the supervision of the court or voluntarily or if the official assignee of the Employer shall repudiate the Contract or if the official assignee or the liquidator in any such winding up shall be unable within 14 days after notice to him requiring him to do to show to the reasonable satisfaction of the Contractor that he is able to carry out and fulfill the Contract and to make all payments due and to become due there under and if the work be stopped for three months or more at a stretch under the order of the Engineer or by an injunction or other order of any court of law for reasons not attributable to the Contractor then and in any of the said cases the Contractor subject to provision contained in clause 17.9 hereof shall be at liberty to determine the Contract by notice in writing to the Employer through the engineer and he shall be entitled to recover from the employer payment for all works executed and for any loss he may sustain upon any plant or materials supplied or purchased or prepared for the purpose of the contract.

In arriving at the amount of such payment, the net rates contained in the Contractors original tender shall be followed or where the same may not apply valuation shall be made in accordance with clause 27.0 hereof.

Provided always the Employer shall not be liable for payment of any claims or losses arising on account of suspension or stoppage of work under force majeure circumstances beyond the sum payable for the work already executed.

26.0 FORCE MAJEURE: 26.1 If at any time during the continuance of the Contract, the performance in

whole or in part by either party or any obligations under the Contract shall be prevented or delayed by reason of any war, hostilities, act of

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public enemy, civil commotion, sabotage, fire, floods, explosions, epidemics, quarantine restrictions and Acts of God (hereinafter referred to as 'Events') and provided notice of the happening of any of the above mentioned Event duly certified by Indian Chamber of Commerce in case of Indian Parties or International Chamber of Commerce, Paris, France in case of foreign parties) is given by either party to the other within 21 days from the date of occurrence thereof, the Employer shall have the right by reason of such Event to terminate the Contract without however affecting the right to any claim for damages on the Contractor in respect of such non-performance or delay in performance. However, in the event of the Employer having agreed, the deliveries under the Contract shall be resumed after such Event has come to an end/ceases to exist. Should one or both the parties be prevented from fulfilling their contractual obligations by a state of force majeure lasting continuously for a period of atleast 6 months and the Employer not having terminated the Contract by that time, the two parties should consult each other regarding the further implementation of the Contract with the provision that if no mutually satisfactory arrangement is arrived at within a period of 3 months from the expiry of 6 months referred to above, the Contract shall be deemed to have expired at the end of the 3 months referred to above. The above mentioned expiry of the Contract will imply that both the parties have obligations to reach an agreement regarding the winding up and financial settlement of the Contract.

26.2 The above mentioned force majeure events shall not include constraints

which could prudently be foreseen like shortage of power, non-availability of raw materials, difficulties in making transport arrangements etc.

26.3 The above mentioned force majeure Events shall not also include similar

Events happening in the works of the sub-Contractors / suppliers etc of the Contractor.

27.0 RIGHTS OF EMPLOYER TO VARY, SUSPEND OR CANCEL THE CONTRACT: 27.1 The Employer shall have power to vary or alter the extent, scope and/or

technical character of the Work under the Contract and the Contractor shall be bound hereby as if the same occurred in the Contract Specification.

27.2 Any amount to be allowed in respect of any variation or alteration of the

Contract work effected by the Employer under this Article shall be added to or deducted from the Contract Price as the case may be. The Employer shall fix up the value of such works after considering all possible facts before him. In so doing the Employer may call for documents,vouchers,analysis etc of such works and the Contractor shall forthwith furnish the same to enable the Employer to fix up the value of such works.

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27.3 The Employer may at any time temporarily stop the Work under the Contract or any part thereof by notice in writing to the Contractor. All Work so stopped shall be resumed by the Contractor based on a schedule to be mutually agreed upon between the Employer and the Contractor.

27.4 The Employer will not pay the Contractor for any work covered by the

suspension which is performed during such interval of suspension, and the Employer will not be liable to the Contractor for any damages or loss caused by such suspension of work.

28.0 SETTLEMENT OF DISPUTES: 28.1 Disputes to be finally determined by the Engineer:

The decisions, opinions, directions, Certificates or Valuation of the Engineer with respect to all or any part of the matters under Clauses 2.2.2, 4.5, 7.0, 8.4, 8.6, 8.8, 15.2, 15.3, 15.11, 16.13, 17.0, 21.0, 23.6, 23.8, 24.0, 25.1, 27.0 & Special Conditions of Contract for the decision of which specific provisions have been made hereof (Which matters herein referred to as 'Excepted matters') shall be final and conclusive and binding on the parties hereto and shall be without appeal.

28.2 Settlement of Disputes by Arbitration:

Except the matters covered under 28.1 above, all disputes and differences whatsoever arising between the parties out of or relating to the construction, meaning and operation or effect of this contract or the breach thereof shall be settled by Arbitration in accordance with the Rules of Arbitration of the Indian Council of Arbitration and the award made in pursuance thereof shall be binding on the parties. Provided that withholding of any of the certificate, decision, opinion, direction, valuation etc. by the Engineer for a period of more than six months shall be referable to Arbitration and shall not be barred as Excepted matter.

The further progress of any work under the contract shall unless otherwise directed by the Engineer continue during the Arbitration proceeding and no payment due or payable by the employer shall be withheld on account of such proceedings. It shall not be open to Arbitrators to consider and decide whether or not such work shall continue during the Arbitration proceedings.

Provided further that no reference to Arbitration whether the final bill for the work has been passed or not shall be made later than 6 months from the date of satisfactory completion of the work under the contract.

The Arbitration bench shall make a reasoned award.

The venue of Arbitration shall be at Visakhapatnam, Andhra Pradesh, India.

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29.0 TRAINING OF EMPLOYER'S PERSONNEL: 29.1 The Contractor shall arrange for the training of a reasonable number of

Employer's personnel to be specified by the Employer. Such training will include training in the Contractor's design and Engineering departments and/or in the manufacturer's shop and for operation and maintenance in working installations. The terms of training such as period, category, number, cost, if any etc. shall be mutually agreed upon. The travelling and living expenses of the trainees will be borne by the Employer.

29.2 The Contractor shall supply all training manuals/instructions, and other

connected literature to the Employer's trainees in English language. The Contractor shall also arrange for an orientation course to be imparted in English language to the Employer's trainees and arrange for necessary English speaking personnel to explain the operation, maintenance and design features to the Employer's trainees.

30.0 NON-WAIVAL OF DEFAULTS: 30.1 Failure of the Employer to insist upon strict performance of any terms

and conditions of the Contract will not be deemed a waiver of any rights or remedies that the Employer may have and will not be deemed a waiver of any subsequent default under the terms and conditions of the Contract. No right or remedy of the Employer will be exclusive of any other right or remedy and Employer will have all rights and remedies given under the Contract and now or hereafter existing in law or by statute. The shipping or delivery by the Contractor or receiving of or payment by the Employer for the Plant under this Contract, will not be deemed a waiver of any rights for any prior failure by the Contractor to comply with any of the provisions of the Contract.

31.0 GENERAL DIRECTION OF WORK: 31.1 The Contractor shall normally obtain instructions for carrying out the

Work pertaining to the Contract from the Engineer. 32.0 GENERAL: 32.1 Should any conditions in the General Conditions of Contract be contrary

to the Special Conditions of the Contract, such Special Conditions of Contract shall prevail.

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TO BE EXECUTED ON A STAMP PAPER OF VALUE NOT LESS THAN

Rs.100.00 BOUGHT IN THE NAME OF THE EXECUTING BANK.

FORM OF GUARANTEE BOND 1. Name and address of the Bank: (Full Postal Add. & PIN code to be given) 2. Guarantee No._ _ _ _ _ _ _ _ _ _ _ _ _ _ Date _ _ _ _ _ _ _ _ _ _ 3. Limit of Liability _ _ _ _ _ _ _ _ _ _ _ Expiry Date _ _ _ _ _ _ _ 4. * Tender Notice No. _ _ _ _ _ _ _ _ _ _ _ _Date _ _ _ _ _ _ _ _ _ _ 5. ** Name of the work as given in the Tender _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________________________________________________ To, Rashtriya Ispat Nigam Ltd. Visakhapatnam Steel Plant Visakhapatnam- 530 031 (AP)

Sub: Earnest Money Deposit In consideration of M/s Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant having its registered office at Administrative Building, Visakhapatnam 530 031 (hereinafter called "the company") which expression shall unless repugnant to the subject or context includes his successors and assigns having agreed to exempt M/s. . . . . . . . . . . . . . . . . . . . . . . (hereinafter called "the Contractor/Supplier") from demand under the terms and conditions of the tender No.(*) ……….. Dt.. . . . . . . . issued by the Company for the work (**) . . . . . . . . . . . . . . .(hereinafter called the said "Document") from deposit of Earnest Money for the due fulfillment of the Contractor/Supplier of terms and Conditions contained in the said documents on production of a Bank Guarantee for Rs. . . . . . . .(Rupees . . . . . . Only). 1. We, the . . . . . . .Bank ( herein after referred to as "the said Bank")a

Company under the Companies Act, 1956 and having our Registered Office at . . . . do hereby undertake and agree to indemnify and keep indemnified the Company to the extent of Rs. . . . . . (Rupees . . . . . . .. .Only) against any loss or damage costs, charges and expenses caused to or suffered by or that may be caused or suffered by the Company by reasons of any breach or breaches by the Contractor/Supplier of any of the terms and conditions contained in the said documents and unconditionally pay the amount claimed by the company on demand and without demur to the extent aforesaid.

2. We, the .. .. .. .. Bank further agree that if the contractor/Supplier

commits any breach of the terms and conditions of the said documents in respect of which the contract or Supplier has been exempted from depositing the Earnest Money because of the guarantee furnished by the Bank to the Company and the Company has become entitled to forfeit

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the Earnest Money or any part thereof, the Bank hereby unconditionally and irrevocably agrees and undertakes to pay to the Company on demand and without demur the amount of the Earnest Money required to be furnished by the contractor/Supplier under the conditions of the said documents in respect of which the breach is committed to the extent of Rs. . . . . . . .(Rupees . . . . . . . . . . . . . . .Only).

3. We, the . . . . .. Bank further agree that the company shall be the sole

judge of and as to whether the Contractor/Supplier has committed any breach or breaches or any of the terms and conditions of the said documents and the extent of loss, damage, costs, charges and expenses caused to or suffered by or that may be caused to or suffered by the Company on account thereof to the extent of the Earnest Money required to be deposited by the Contractor/Supplier in respect of the said document and the decision of the company that the Contractor/Supplier has committed such breach and as to the amount or amounts of loss, damage, costs, charges and expenses caused to or suffered by or that may be caused to or suffered by the Company shall be final and binding on us.

4. We, the said Bank further, agree that the guarantee herein contained

shall remain in full force and effect, until it is released by the Company provided always this guarantee shall in no event remain in force after the . . . . . .day of . . . . . without prejudice to the claims of the company arisen and demanded from or otherwise notified to us in writing on or before the said date which will be enforceable against us not withstanding that the same are enforced after the said date.

5. The Company shall have the fullest liberty without affecting in any way

the liability of the Bank under this guarantee or indemnity, from time to time to vary any of the terms and conditions of the said contract supply or to extend time of performance by the contractor/Supplier or to postpone for any time and from time to time any of the powers exercisable by it against the Contractor/Supplier and either to enforce or forbear from enforcing any of the terms and conditions governing the said document or securities available to the company and the said Bank shall not be realised from its liability under these presents by any exercise of the company of the liberty with reference to the matters aforesaid or by reason of time being given to the Contractor/Supplier or any other forbearance act or omission on the part of the company or any indulgence by the Company to the contractor/supplier or of any other matter or thing whatsoever which under the law relating to sureties would but for these provision have the effect or so releasing the Bank from its liability.

6. It shall not be necessary for the company to proceed against the

contractor/supplier before proceeding against the Bank and the guarantee herein contained shall be enforceable against the Bank not withstanding any security which the company may have obtained or

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obtain from the contractor/supplier shall at the time when proceeding as are taken against the Bank hereunder be outstanding or unrealised.

7. We, the said bank lastly undertake not to revoke this guarantee during

its currency except with the previous consent of the company in writing and agree that any change in the constitution of the company or the Contractor/ Supplier of the Bank shall not discharge our liability hereunder.

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8. All claims arising out of this Bank Guarantee may be filed with us in

writing within six months of the expiry of the validity period of the Bank Guarantee.

Place: . . . . . . . .. . Date: . . . . . . . . . . Note: Instructions to the Bank: Not to be reproduced in the Bond Paper 1. The following are to be filled up in the blank space indicated thus: (*) Tender No. of the tender (i.e.) No. of the covering letter of the tender of contractor. (**) Name of the work as given in the Tender Notice. 2. All pages of bank guarantees shall have the rubber stamp and signature of the officer of the Bank. 3. All corrections shall be attested by Rubber Stamp and Stamp of the officer of Bank.

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ON NON-JUDICIAL STAMP PAPER OF VALUING Rs.100/-

GUARANTEE BOND FROM A SCHEDULED BANK

(NON-JUDICIAL STAMP PAPER TO BE PURCHASED ON THE NAME OF ISSUING BANK ONLY)

To M/s Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant VISAKHAPATNAM - 530 031 1. Name and Address of the Bank : 2. Bank Guarantee No. : 3. Date of Issue/with effect : 4. Date of Expiry : 5. Claim Period : 6. Limit of Liability : 7. Ref. Letter of Intent/W.O. No.: and Date 8. For (Name of work) : SUB: INITIAL SECURITY DEPOSIT/SECURITY DEPOSIT In consideration of Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, A Government Company incorporated under the Companies Act, 1956 having its registered Office at Administrative Building, Visakhapatnam - 530 031 (hereinafter called the Company) having agreed to accept the Initial Security Deposit/Security Deposit of Rs.____________________ (Rupees in words ______________________________________________________________________________________ ____________________) M/s ________________________________ (hereinafter called the Contractor) under the terms and conditions of the Letter of Intent No:_________________________________________________ dated _____________ for (Name of the work)_____ _____________________________________________________________________________in a comprehensive job basis and as per your Letter of Intent dated ____________ (hereinafter referred to as "the said Contract" which expression shall in case of execution of any formal agreement between you and the Contractor shall and include the said agreement) covered under the said agreement as a Guarantee for the security of materials under the custody of the Contractor in terms of the said tender as also for the due fulfilment of all the terms and conditions contained in the said agreement on furnishing of a Bank

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Guarantee for Rs.________________(Rupees in words __________________________ ________________________________________________). We, __________________________________ _________________________________ (Name of the Bank) (hereinafter referred as the said Bank) hereby covenant and agree with you as under: 1. We undertake to indemnify you and keep you indemnified from any loss

or damage from time to time to the extent of Rs._____________ (Rupees in words ________________________ _____________________________) caused to or suffered by you or that may be caused to or suffered by you by reason of any breach or breaches on the part of the Contractor of any of the terms and conditions contained in the said agreement and in the event the Contractor shall make any defaults in carrying out any of the works under the said agreement or otherwise in the observance and performance of any of the terms and conditions relating thereto, we shall forthwith without any protest or demur pay to you such sum or sums not exceeding in total the said sum of Rs._____________________ (Rupees in words _________________________________ ______________________________________) as may be claimed by you as your losses and/or damages, costs, charges, or expenses by reason of such default/defaults on the part of the contractor.

2. Not withstanding anything to the contrary, your decision as to whether

the Contractor has made any such default or defaults and the amount or amounts to which you are entitled by reason thereof will be binding on us and we shall not be entitled to ask you to establish your claim under this Guarantee but will pay the same on demand without any objection.

3. The Company shall have the fullest liberty to claim payment of the

amount or amounts from time to time under this Guarantee, subject to a ceiling limit of Rs.___________________ (Rupees in words __________________________________________) as referred to above and this Guarantee shall not become invalid or infructuous because of the partial demand made by the Company upon us for payment under the circumstances stipulated hereinabove and this guarantee shall hold good in favour of the Company to the extent of the balance amount covered under this Guarantee.

4. This Guarantee shall continue and hold good until it is released by you

on the application by the Contractor after expiry of the relative Guarantee period of the said contract and after the Contractor had discharged all its obligations under the said contract and produced a certificate of the due completion of the work under the said contract and submitted a No Demand Certificate.

5. You will have the fullest liberty without our consent and without

affecting this guarantee from time to time to vary any of the terms and conditions of the said agreement or extend time of performance of the Contractor or to postpone for any time or from to time any of your rights or powers against the Contractor and either to enforce of forebear to

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enforce any of the terms and conditions of the said contract and we shall not be released from our liability under this Guarantee by the exercise of your liberty with reference to matters aforesaid or by reason of any time being given to the Contractor or any other forbearance, act or omission on your part, or any indulgence by you to the Contractor or by any variation or modification of the said contract/or any other act, matter or thing whatsoever which under law relating to sureties would but for the provisions hereto have the effect of so releasing us from our liability herein PROVIDED ALWAYS NOTHING herein contained will enlarge our liability beyond the limit of Rs____________________ (Rupees in words _____________________________________________________________________________) as aforesaid or extended the period of the Guarantee beyond the said day of _______________ unless expressly agreed to by us in writing.

6. This Guarantee shall not in any way be affected by your taking or varying

or giving up any securities from the Contractor or any other person, firm or company on its behalf or by the winding up, dissolution, insolvency, re-construction or death as the case may be of the Contractor.

7. In order to give full effect to the guarantee herein contained you shall be

entitled to act as if we were your principal debtors in respect of all your claims against the Contractor hereby guaranteed by us as aforesaid and we hereby expressly waive all our rights of suretyship and other rights, if any, which are in any way inconsistent with the above or any other provisions of this guarantee.

8. Subject to the maximum limit of our liability as aforesaid this Guarantee

will cover all your claim or claims against the Contractor from time to time arising out of or in relation to the said contract and in respect of which your demand or notice in writing is received by us.

9. This Guarantee and the powers and provisions herein contained are in

addition to and not by way of limitation of or substitution of any other guarantee or guarantees thereto given to you by us (whether jointly with other or alone) and now existing uncancelled and that this guarantee is not intended to and shall not revoke or limit such guarantee or guarantees.

10. This guarantee shall not be affected by any change in the constitution of

the Contractor or us nor shall it be affected by any change in your constitution or by any amalgamation or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated, reconstructed company or concerned.

11. This guarantee during its currency shall not be revocable by us except

with your previous consent in writing. 12. It shall not be necessary for you to proceed against the contractor before

proceeding against us and the guarantee herein contained shall be

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enforceable against us, notwithstanding any security which you may have obtained or obtain from contractor at any time or when proceedings are taken against us hereunder be outstanding or realised.

DATED THE _______________________DAY OF __________________ TWO THOUSAND ………….

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SPECIAL CONDITIONS OF CONTRACT

FOR

SUPPLY, ERECTION, TESTING AND COMMISSIONING

OF

PLANT, MACHINERY AND EQUIPMENT

PROJECTS DIVISION VISAKHAPATNAM STEEL PLANT

(RASHTRIYA ISPAT NIGAM LIMITED) A-BLOCK, PROJECT OFFICE VISAKHAPATNAM-530 031

TELEPHONES: 2518277 & 2518429 FAX No. : (0891) 2518764

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1.0 GENERAL 1.1 The Special conditions of the contract shall be read in conjunction with

the Invitation to Tender, Instructions to Tenderer, General conditions of the contract, Specifications, preamble to bill of quantities, bill of quantities, drawings and/or other documents detailing the work.

1.2 In case of any conflict of meaning between the 'Special conditions of

contract' and 'General conditions of contract' and other documents, the documents shall prevail as given below:

1.2.1 Special conditions shall prevail over General conditions. 1.2.2 Specifications shall prevail over contract drawings. 1.2.3 Between two issues of same document, the document revised or reissued

as of the later date shall prevail. 1.2.4 All specifications, contract drawings and other documents shall be

interpreted in conformity with the General conditions of contract as supplemented and/or modified by Special conditions.

1.2.5 Whenever a lumpsum price for the work is stipulated in the contract, the

break-up of the units and quantities of sub-assemblies/ accessories/auxiliaries/other items of such lumpsum work shall be considered only as indicative and the Contractor shall perform all works as envisaged in this agreement including the specifications and Contract drawings and the Contractor shall be paid only the amount of such lumpsum price in consideration thereof. Any variation in quantities of sub-assemblies etc., referred above shall not alter the total value of the lumpsum work unless otherwise agreed.

2.0 SCOPE OF WORK 2.1 Supply of Plant and Equipment: 2.1.1 Attention is invited to the Tender Specification

No:………………………………………, with all technical data etc. referred to in the Invitation to Tender, which indicates the scope of work.

2.2 Erection of Plant, Equipment, start up 2.2.1 The Erection of the Plant and Equipment including those that may be

arranged by the Employer, start-up and commissioning shall be done by the Contractor and shall inter-alia include final painting, testing, putting into commission and performance Tests.

2.2.2 In case of despatches by rail, contractor shall arrange to place the

railway wagons carrying Plant, Machinery, Equipment, Stores and

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Materials by the siding available nearest to the Contractor's storage/Erection Site. It will be the responsibility of the Contractor to unload, transport and store them, whether that happen on week days, or Sundays or holidays. The Employer will not be responsible for payment for any overtime work. If the contractor fails to unload the Materials on any day, he will be liable to pay the demurrage charges on the wagons detained at the siding as per prevailing rules.

2.2.3 For all Materials the Contractor shall be responsible for their safe storage

and custody till they are handed over to the Employer after completion of Erection. Any damage, breakage and loss during this period will be to the account of the Contractor and he shall make necessary arrangement for proper replacement/ repair in time.

2.2.4 The Contractor shall, for the information of the Employer/Engineer

indicate the number and category of erection/operation specialists with their experience and their estimated duration of stay in India, necessary to supervise and undertake Erection to ensure that the Work is done in accordance with the standards required by the Tender and for putting the Plant into commission and fulfilling the guarantee conditions.

2.2.5 The Employer will place his own personnel at the disposal of these

erection operation specialists during the period of commissioning and the guarantee performance Test for getting the necessary training and/or knowledge of the equipment and/or operation & maintenance of the same. The Contractor shall arrange and extend all necessary assistance in this regard.

2.2.6 Necessary erection tools, tackle, instruments and appliances required for

Erection of the Plant and Equipment should be arranged by the Contractor. All testing measuring, recording equipments as necessary for tests, measurements & recording at site either during erection or after erection and for commissioning & performance tests shall be arranged by the Contractor at his cost. A list of such tools, tackle etc. with broad specifications shall be furnished by the Tenderer. He shall also be required to provide without any extra cost, additional erection tools, tackle, equipment etc. if considered necessary by the Employer, for efficient working and completion of Erection in time. All charges in connection with the erection tools and tackle, such as transportation from the Contractor's works to Erection Site and back on completion of Erection and clearance by Engineer after final taking over, shall be borne by the Contractor.

2.2.7 The Contractor shall submit at such times as may be required by the

Engineer detailed schedules showing the programme and order in which the Contractor proposes to carry out the Work. Such schedules shall be subject to the approval of the Employer and such schedules shall be binding on the Contractor.

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2.2.8 The Contractor shall provide all facilities to the Employer's personnel to get fully conversant with the Equipment during Erection, commissioning, testing etc.

3.0 TIME FOR COMPLETION: 3.1 The Completion period for the entire work including supply of the

Equipment to site and Erection, Testing and Commissioning and Trial runs upto Preliminary Acceptance shall be . . . . . . . . . . . . . months) from the date of issue of Fax/Letters Of Intent. However the Contractor is required to fulfill his obligations for Performance tests and other activities as per General Conditions of Contract and specifications upto Final acceptance and end of Guarantee period at no extra cost to the Employer.

4.0 TEMPORARY ROADS:

The contractor shall make his own arrangements to construct suitable approach roads to the work site as required and maintain them at his cost.

5.0 LIGHTING IN AND AROUND THE WORKSPOTS:

The contractor if necessary shall make his own arrangement in arranging the required Lighting in and around the work spots, for the purpose of construction activities including movement of persons & inspection by Engineers and his authorised representatives.

6.0 CONSTRUCTION MACHINERY: 6.1 The contractor shall make his own arrangements for all constructional

plant, equipment, tools etc., for all the works including Testing and commissioning covered in the contract. He shall indicate the type and number of different equipment in good working conditions, with their capacities etc. which he will use for the works to ensure the completion of the works in the specified time.

6.2 All constructional plant and equipment once brought by the contractor to

the site are not to be removed from there without the written permission of the Engineer. Also, the contractor shall promptly arrange spare parts, consumables, fuel, lubricants etc. for the equipment on the site as and when necessary at his own cost.

6.3 If in the opinion of the Engineer, the tools, tackles, plant and equipment

etc., brought to site or arranged by the contractor, are not sufficient and/or inadequate, the Engineer shall have the right to direct the contractor and the contractor shall comply with the directions, and arrange to bring such additional tools, tackles, plant and equipment, instruments etc., to the site and employ the same for the work at his own cost.

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6.4 Subject to availability, the Employer may provide some of the heavy

equipment on hire basis to the contractor as per terms and conditions given in Annexure-I. However, it shall be understood that the Employer is neither bound to provide with such equipment nor liable for any delays losses for not providing or delay in providing such equipment.

6.5 The Employer hire out to the contractor the available equipment on the

basis that the contractor shall be responsible for the safe custody of the equipment hired out to him during the period of hire and the contractor shall make good any loss or damages to the equipment caused due to negligence, inadequate watch and ward etc.

6.6 Hire charges for the equipment shall be levied on composite hourly basis

for the period of actual hours on use including the marching within the zone at rates stated in the enclosed list at Annexure-I giving the hire charges for the various equipment .

A joint record shall be maintained indicating the period for which equipment is requisitioned and actual use on the work. The levy of hire charges shall be based on such joint records. The rate of recovery will be at a composite per hour rate.

7.0 CONSTRUCTION WATER: 7.1 Water required for construction purpose for the work covered under the

scope of the contract as well as for drinking purposes at the construction site will be supplied free of cost by the Employer from the existing construction water main at one or two points as decided by the employer on a written request from the contractor indicating his requirements.

7.2 The contractor shall at his own expenses, lay and maintain the pipelines

from the point of supply to his work site with suitable connections storage reservoir etc. as may be necessary. The contractor shall ensure avoidance of misuse or wastage of water, make adequate arrangements for storage and regulate supply and if necessary install supplementary arrangements for supply of water. The Employer will endeavour to maintain a regular supply of water to meet the construction requirements. However, no claim for compensation for any failure or short supply of water will be entertained by the Employer.

8.0 CONSTRUCTION POWER: 8.1 The Employer will supply electric power 220/440V, 3 phase/single

phase, 50 cycles from the nearest established substation free of cost, for the construction of site works and approved site offices and godowns

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coming in the work site inside the plant areas. Only one outlet will be provided from the point of supply.

8.2 The contractor shall make his own arrangements from the supply point

to lay and maintain further distribution lines and wiring necessary for the work at his own cost and in accordance with latest Indian Electricity Rules. The distribution diagram with loadings and specifications shall be submitted to the Engineer for his approval before the system is installed.

8.3 The Contractor shall arrange to get all his installations approved by the

Electrical Inspector,Andhra Pradesh before power can be supplied by the Employer. The contractor shall intimate in writing as soon as possible his demand for power indicating the phased requirements. The contractor shall ensure that the Electrical equipment employed by him are such that the aggregate power factor does not fall below 0.85 at the Employer's terminal point and install power factor improving equipments whenever and wherever necessary to maintain the P.F. not below 0.85 at his own cost.

8.4 In case power is made available by the Employer for workshops,

fabricating units, manufacturing units and labour camps the same will be metered and the contractor shall pay the charges at the rates as decided by the Employer. The contractor shall also arrange to procure the meter duly tested by recognised Government Laboratory and approved by the Employer and shall install and maintain the same at his own cost.

8.5 Though efforts will be made by the Employer to maintain regular power

supply, the Employer shall not be responsible for any failure in power supply and any consequences arising therefrom. The contractor shall obtain the permission of the Engineer for installation of machinery, construction of buildings and electric power supply connection to them. The contractor shall be responsible for any defect therein. Any defects pointed out by the Engineer in the distribution system shall be rectified forthwith to the satisfaction of Engineers by the Contractor,failing which the power supply may be cut off by the Employer/Engineer.

9.0 LAND: 9.1 Area for yards, offices etc.

The employer will at his discretion and for the duration of the contract make available land, free of charge, within and/or near the employer's works site for the contractor to put up the stores site fabrication yard, office etc., as required for the execution of the contract. Any clearing and leveling of ground, services, roads etc., has required shall be done by the contractor at his own cost confirming various stipulations of the employer. The area required for the above purpose shall be indicated by

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the contractor in the Appendix-I herein attached for the consideration of the employer.

9.2 Accommodation for labour and supervisory staff:

The contractor shall make his own arrangements for the accommodation of his labour and supervisory personnel for which no land shall be provided by the employer.

9.3 On completion of works and/or on termination of contract, field office,

construction stores, fabrication yard and any other temporary works shall be dismantled and removed from the site by the contractor and the site and works shall be left clear and clean of all obstruction. In the event of contractor's failure to do so, the employer reserves the right to clear the site in the manner as he may deem necessary and the cost and expenses for all such clearances incurred by the employer shall be recovered from the contractor's bills or from any money due to the contractor from the employer without prejudice to any other measures the employer is empowered to take under the contract. The employer also reserves the right to take over any or all such temporary structures put up by the contractor on completion of the works at the mutually agreed terms.

10.0 SAFETY AND GUARDING OF WORKS: 10.1 The contractor shall abide by the safety regulations of the Employer, or

as required by the Engineer, in respect of all labour engaged for the performance of the works and shall provide all the facilities in connection therewith. The Contractor shall be responsible for following the provisions of all labour laws and rules made thereunder and other statutory requirements. The contractor shall ensure that necessary safety appliances are being used by his employees and workers working at site, particularly those engaged in erection work, without which the employees and workers shall not be permitted to be engaged on the work.

10.2 The contractor shall be responsible for the safety of his men and

employees. The contractor shall be responsible for making all safety arrangements in the execution of work and shall employ trained workmen conversant with safety regulations. The contractor shall use only tested equipment and tools and shall periodically conduct tests according to standard procedures laid and such certificates shall be readily available for inspection at the site of work. He shall replace any tools, if so asked by the Engineer. The contractor shall be responsible for following all safety regulations and report all accidents to the prescribed statutory authorities and the Engineer. The Employer reserves the right to issue directions regarding safety and such directions shall be immediately implemented by the contractor. The contractor shall be responsible for obtaining work permit for execution of work in the vicinity of operational area at no extra cost.

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10.3 The contractor shall promptly submit reports of accidents and state the measures taken by him to prevent their recurrence and also keep the Employer indemnified of all claims arising out of such accidents.

10.4 The contractor shall at all times provide sufficient fencing, Notice Boards,

lights, watchmen to protect and warn the public and guard the works and provide all facilities and observe all the rules mentioned in the General conditions of contract.

11.0 TESTING AND COMMISSIONING FACILITIES:

At present there are no testing and commissioning facilities available with the Employer for testing and commissioning the installation. The contractor has to make his own arrangements for the same at his cost to the satisfaction of the Engineer.

12.0 CONTRACTOR'S OBLIGATION & SUPERVISION: 12.1 Except where it is expressly provided that the cost will be borne by the

employer, the various obligations of the contractor under the contract shall be at the cost of the contractor.

12.2 The contractor shall keep competent and qualified Engineers constantly

on the work who will be responsible for carrying out the work to the satisfaction of the Engineer-in-charge. Any directions or instructions given to him/them in writing shall be held to have been given to the contractor.

13.0 AUTHORISED AGENT: 13.1 The contractor shall have a duly authorised agent at site from the

commencement to the completion of the work. Such agent shall be authorised to act on behalf of the contractor, to accept notices under the contract and to agree to extra, commissions and varied items of works and rates for the same. Such agent shall maintain on his staff qualified engineers and such other personnel as may be required for efficient execution of the works. Any notice under the contract shall be deemed to have been served on the contractor if served upon such agent or sent by registered letter to his address at site. Such agent shall not be changed (unless required by the Engineer) and shall not leave the site during the duration of the contract unless the consent of the engineer shall have been previously obtained.

13.2 The contractor shall send a duly authorised competent representative to

meet the Employer at his office at Visakhapatnam or at any other place within the country in connection with his works whenever called upon to do so by the Employer or Engineer at his own cost and any instructions, directions or explanations given by the Employer or by the Engineer to such representatives shall be deemed to have been given to the contractor.

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14.0 COOPERATION WITH OTHER CONTRACTORS AND EMPLOYERS'

OPERATION DEPARTMENT:

The contractor shall plan and execute his work in phased manner as directed by the Engineer from time to time and shall fully cooperate with other agencies working at site simultaneously as well as with the employer's operation department so as not to obstruct or retard the work simultaneously being executed by other agencies and the plant operation in any way. The decision of the Engineer on any point of dispute between the various contractors shall be final and binding on all the parties concerned.

15.0 COMPLIANCE WITH THE STATUTORY RULES AND REGULATIONS: 15.1 The Contractor shall ensure the implementation of all the relevant

provisions of the various Labour Laws and regulations and shall be deemed to be the principal Employer for the purpose. Accordingly, they will get themselves registered with the concerned statutory authority as provided under the different Acts and shall be directly responsible to the authorities thereunder for compliance with the provisions thereof.

15.2 The Contractor shall ensure that the provisions of relevant Statutory

Rules and Regulations are implemented by him, his employees and sub-contractors as detailed in the GCC.

15.3 No child who has not completed his 14 years shall be employed or

permitted to work in any works of Visakhapatnam Steel Plant and child who has completed his 14th year or a young person below the age of 18 years shall not be employed unless a certificate of fitness has been obtained from the authorised Medical Practitioner. For such persons the working hours shall not exceed four and half hours and the period of work shall not be between 10.00 PM to 6.00 AM.

15.4 Factories act:

The contractor shall follow the provisions of Indian Factories Act and all rules made thereunder from time to time if applicable, and shall indemnify the Engineer against all claims of compensations under the provisions of the Act in respect of any workmen, employed by the contractor in carrying out the works and against all costs and expenses or penalties that may be incurred by the Employer in connection therewith.

15.5 Employees Provident Fund Act:

The contractor shall ensure strict compliance of provisions of the Employees Provident Fund Act 1952 and the scheme framed thereunder in so far as they are applicable to their establishments and agencies

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engaged by them. The contractor is also required to indemnify the Employer against any lose or claims or penalties or damages whatsoever resulting out of non-compliance on the part of the contractor with the provisions of the aforesaid act and the schemes framed thereunder.

15.6 Electrical Licence For Installation Work:

The installation work shall be carried out only by an electrical contractor holding a valid licence issued by the Government of Andhra Pradesh for carrying out installation work of the voltage class involved, under the direct supervision of a person holding a certificate of competency for the same voltage classes, issued or recognised by the State Government. The tenderer shall furnish with his tender the particulars of the licence held by him for executing the electrical works.

16.0 RESTRICTION OF VISITORS:

The contractor shall not allow any visitors on the works except with the approval of the Employer.

17.0 SECURITY REGULATIONS: 17.1 The contractor shall abide by all the security regulations of the Employer

in force and promulgated from time to time and other statutory requirements.

17.2 As and when introduced by the Employer, the contractor shall arrange to

obtain from the Employer the required gate pass for entry to the Employer's Steel Plant site and other protected areas for each one of his workmen and staff as per the Employer's prescribed procedure and format. Each gate pass shall contain the photograph of the person concerned, if required. In the event of loss and or damage to the gate passes the contractor shall pay to the Employer the prescribed penalty before a new gate pass can be issued. The contract shall be governed by the following provisions for enforcing safe custody and proper use of gate passes.

17.3 All representatives and workers of the contractor shall posses the admit

pass issued from the security department on the recommendation of the concerned officer / Engineer. Security department and the concerned officer/ Engineer shall have the right to refuse the admit passes to any worker or representatives of the contractor without assigning any reason.

17.4 Permission to enter the Visakhapatnam Steel Plant site to any

representative or the worker of the contractor may be suspended or withdrawn at any time by the Security Department or the concerned officer/engineer without assigning any reason.

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17.5 The contractor shall ensure that any gate pass issued to their workers or representatives by the Employer is not misused by unauthorized persons for entry into plant area or in specified areas inside the plant.

17.6 It shall amount to breach of rules and regulations regarding entry into

the prohibited area by the contractor in case admit passes issued on their demand are found to be misused by any unauthorised persons.The contractor and their defaulting employees shall be liable for legal action against them for breach of rules regarding entry into the plant area.

17.7 Final payment would be made to the contractor only after all the passes

issued by the security department are surrendered for cancellation for which 'No demand certificate' should be obtained. In case of passes lost/not surrendered for any reason an amount of Rs.25/- (Rupees twenty five only) for photo passes and Rs.15/- (Rupees fifteen only) for wage card pass will have to be paid as penalty before final payments are cleared by Employer.

17.8 Entry into construction areas fenced out and segregated from operating

units shall be regulated by a separate procedure to be laid by the Employer from time to time.

17.9 The contractor shall register all equipment and all other materials, tools

etc., that may be taken inside the 'protected area' in order to facilitate the issue of exit gate permits for materials and equipment to be taken out after the completion of work.

18.0 RECRUITMENT OF LABOUR: 18.1 While recruiting the labour and supervisory staff for his works, the

contractor has to notify the vacancies to the concerned Employment Exchange and recruit the staff in accordance with the rules and regulations in force. The Contractor shall also engage Displaced Persons as far as possible.

18.2 LABOUR RETURNS

Periodical statements of labour employed by the Contractor shall be submitted in the proforma prescribed by the Engineer. The statement shall indicate the details of Displaced Persons,S.C, S.T engaged. Displaced Persons shall be given preference in employment in the work.

19.0 GUARANTEE AND PERFORMANCE 19.1 The tenderer shall guarantee for a period of 12 months from the date of

Final acceptance the workmanship and materials and satisfactory operation of all items of Plant,Machinery and Equipment offered by him with respect to all individual items and collective items comprising a group of Equipment and for the whole Plant and Equipment in accordance with the performance requirements indicated in the tender

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documents.In this respect, the offer shall include in clear detail the various output, consumption and performance guarantees for the Plant and Equipment offered and the penalties payable if the actual results fall short of the guarantees.

20.0 PRICES: 20.1 The prices to be quoted are intended to provide for all works duly and

properly completed in accordance with the general and special conditions of contract, specifications and drawings together with such alterations and/or additions as may be approved/ordered and without prejudice to the generality thereof and shall include such details which are obviously and fairly intended and which may not have been specifically referred to in these documents and working drawings, but are essential for execution and satisfactory completion of work/performance of equipment including those of minor nature and shall be deemed to include and cover but not limited to inter-alia the following:

i) The contractor's prices shall include cost of delivery of the whole

of the equipment inclusive of seaworthy or otherwise proper packing and painting as per clause No: 13.0 of General Conditions of Contract.

ii) Firm price F.O.R. Erection site for the equipment to be supplied

iii) The cost of all superintendence of labour, materials, tools,plant drawings, equipments, mobilising and demobilising equipment, fuel, lubricants, fixtures, transport charges, insurance charges, BG charges, temporary and permanent works, testing, screening, washing, processing and handling of materials, stocking and removal charges of any rejected materials, water and power arrangement and satisfactory maintenance of the same for the full and satisfactory completion of the works intended. The prices should also include complete requirement of all consumables materials, lubricants, flushing oils, hydraulic fluids, chemicals, lumber, paper etc. required upto the stage of successful completion of performance tests.

iv) All fees, duties, royalties, rent and compensation to owner for

surface damage or taxes and impositions payable to local authorities in respect of land and structures, for all materials supplied for the work or other duties or expenses for which the contractor may become liable or may be put to under any provision of the law for the purpose of or in connection with the execution of the contract including levies payable on all transactions.

v) Supply of samples, mould, cost of testing of materials, works etc.

and cost of conducting pre-commissioning, commissioning tests and assistance during hot run and till the production gets

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stabilised to consistent satisfactory level as specified in the contract.

vi) Working in all conditions including in/under water, liquid, mud,

foul conditions etc. and shall also include bailing or pumping out water from the foundations, basement or any other place of construction, collected from rains or any other source whatsoever, de-sludging and allied operation, at any state of work and at any time till completion of work including all suspension period and delays whatsoever, cost of curing including pumping curing water, wherever necessary.

vii) Work at all depths in foundation below the ground level and in

superstructure upto all the heights above ground level including all lifts and descents, work involved at any other place of work.

viii) Unless otherwise specified in the specification schedule, cost of all

leads. ix) Provision of centering, scaffolding, strutting, props shoring etc.

x) All materials and labour required for fencing in and protection against risk of accidents and fire and providing necessary planking, strutting, gangway with handrails, gumboots, helmets, safety belts etc. during the progress of work.

xi) Clearing the site after completion of work of all debris left out,

construction materials, labour colonies including micro dressing the area in neat and clean shape.

xii) Providing final painting as specified in the contract. xiii) Working in day and night or continuously for long hours/day.

xiv) And any other activity necessary for the completion of the supply, installation , tests & commissioning of the plant upto guarantee period as per General conditions of Contract, Special conditions of Contract and Specifications.

20.2 The supply prices of the equipment and spares shall be FOR erection site

and shall be inclusive of all applicable taxes and duties including sales tax / works contract tax and other levies, if any and shall be firm except for variation in taxes & duties as per Clause no: 20.5 and 20.6.

20.3 The prices for Erection, Testing and Commissioning shall include all

applicable taxes and duties including sales tax / works contract tax and other levies payable by the Contractor and shall be firm except for variation in taxes & duties as per Clause no: 20.5 and 20.6.

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20.4 The contract shall be awarded on divisible basis. Two orders will be issued - one for supplies and other for services including erection, commissioning etc. The property in the goods shall pass on to VSP after receipt of material at site. The consignee shall be the Engineer of VSP (Pl. Refer Clause no: 8.3 of GCC). As the award is on divisible basis, 'C'Form shall be issued at the request of the Contractor and the tenderer is required to indicate the items for which 'C' form is to be issued by Employer.

20.5 Variation in excise duty and sales taxes after opening the price bid

and/or revised price bid as the case may be (based on which the order on contract shall be placed) shall be reimbursed by VSP subject to production of necessary documents by the contractor at the time of submission of bill. Similarly withdrawal/ downward revision in excise duty and sales tax shall be adjusted in the price quoted and benefit shall be passed to Employer. For the purpose of reimbursement under this clause any taxes payable arising out of interpretation of the contract at a later date as works contract shall not be considered as variation in sales tax. Implication of such interpretation shall be to the account of the Contractor.

20.5.1 The Tenderer has to indicate the excise duties, taxes, customs duties and

exchange rate(if applicable) considered on various items included in his offer. Omission on the part of the Tenderer in including duties or taxes on any items as may be applicable at the time of submission of price bid/revised price bid shall not be a reason for reimbursement of the difference in excise duty, taxes,customs duty and exchange rate at the time of raising of the bill. For the purpose of reimbursement of variation in duties or taxes, the difference between the duties, taxes and exchange rates as prevailing at the time of raising the bill and those prevailing at the time of submission of price bid/revised price bid only shall be considered.

20.6 Fresh taxes and levies, if any, as may be applicable on this contract,

shall be reimbursable against documentary proof to be submitted by the Contractor. However, Works Contract Tax, shall not be considered as a fresh levy or tax for the purpose of reimbursement.

The Tenderer has to consider all taxes and duties applicable on this contract and no omission, or non-inclusion, either declared or not declared, of any taxes and duties that are applicable at the time of submission of price bid/revised price bid shall be considered as a reason for reimbursement of such taxes and duties at a later date.

20.7 All formalities required under statutes, for availing any concessions

under relevant tax laws shall be adhered to by the contractor. 20.8 The amounted quoted by the tenderer for 2-years normal operational and

maintenance spares shall not be considered for the purpose of tender evaluation.

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20.9 In case the tenderer quoted the prices in other than Indian Rupees, the same shall be evaluated with BC rates on the date of opening the price bids.

21.0 TERMS OF PAYMENT: 21.1 Supply: 21.1.1 Based on the Inspection Certificates and Despatch Details ( RRs,

Challans and Invoices etc.) 85% of the value of the material as per the billing schedule shall be payable for the materials received at site in good condition and on submission of Bailment bond in VSP's proforma.

21.1.2 Another 5% of the value of the materials shall be released after

Preliminary Acceptance of the Plant. 21.1.3 Another 5% of the value of the materials shall be released after

provisional acceptance of the plant and after delivery of the drawings as per Cl. No.5.7 of General conditions of Contract.

21.1.4 The last 5% of the value of the materials shall be released after 6 months

of regular and reliable working of the plant consistent with normal start up operation and final acceptance. This payment shall not relieve the Contractor of his obligations as regards performance or output guarantee of the plant according to the Terms of the Contract.

21.2 Erection, Testing and Commissioning: 21.2.1 90% of the payment on pro-rata basis to the progress of work on

certification by the Engineer shall be payable. 21.2.2 5% of the Erection Price shall be payable after preliminary acceptance of

the plant. 21.2.3 5% of the erection price shall be payable after 6 months of regular and

reliable working of the plant consistent with normal start up of the operation and Final Acceptance.

21.3 Spares: 22.3.1 100% of the value of the materials on receipt and acceptance by the

stores. The bills shall be presented to the Engineer along with the Goods Acceptance Note issued by the stores.

21.4 Training: 21.4.1 100% of the amount shall be released after completion of the training.

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21.5 All payments at 21.1,21.2 & 21.3 above shall be regarded as payment by way of advance against the final payment only and not as payment for actual work done and completed and this shall not prejudice the power of the Engineer/Employer to disapprove bad, unsound, imperfect or unskilled work and order pulling down removal, re-erection or reconstruction thereof nor these shall be considered as admission of the due performance of the contract or any part thereof. All the payments as above are subject to deductions/recovery towards Security Deposit/Retention Money, advances etc.

21.6 The hire charges for the materials, machine, equipment tools and plants

and materials supplied (if any) by Engineer Statutory deductions,and any other charges due from the Contractor will be recovered from the running bills.

21.7 All the bills (both for supply & erection) submitted by the Contractor

shall be submitted to the Engineer for his scrutiny & certification . 21.8 The Employer may withhold the whole or part of any payment claimed by

the Contractor, to protect himself on account of various acts of commissions and omissions of contractor including but not limited to the following:

a) Defective work not remedied or guarantee not met b) Claim filed against the Contractor

c) Failure by contractor to make due payments for materials, labour etc.

d) Damage to another contractor's work etc.

However, when the grounds for withholding the payment are removed, payments of the amount due to the Contractor shall be made by the Employer/Engineer.

21.9 Any sum of money due and payable to the Contractor under this contract

may be appropriated and/or withheld by the Engineer and set off against any claim of the Employer for payment of a sum of money arising out of or under any other contract made by the Contractor with the employer/engineer or with the Government.

22.0 DEDUCTION OF INCOME TAX AT SOURCE:

Recovery at source towards income tax calculated at the rate prescribed from time to time under the Income Tax Act 1961 and other relevant sections of Income Tax Act shall be made from the bills of the contractor and the amount so recovered shall be deposited with the Income Tax Department. Necessary receipt to this effect will be issued to the contractor in the prescribed proforma.

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23.0 EXECUTION OF WORKS TO THE SATISFACTION OF THE ENGINEER:

The contractor shall execute the work to the satisfaction of the Engineer strictly in accordance with the time schedule. Any addition, alteration or modifications in the time schedule or specifications given in writing by the Engineer will be binding on the contractor. If at any time the Employer finds that any particular work or part of the work/works is/are not progressing properly according to the approved detailed programme, the Employer shall have the right to take over the particular work/works for execution by himself or through any other agency at the risk and cost of the contractor provided such delays are solely due to the lapses on the part of the contractor.

24.0 WITHHOLDING OF PAYMENT FOR NON SUBMISSION OF "AS BUILT

DRAWINGS":

If the "As built" drawings, final drawings and material reconciliation statements are not submitted by the contractor before the issue of preliminary acceptance certificate, then the Engineer at his discretion can withhold the amount to the extent of 25% of the amount payable at the PAT stage. The amount thus withheld will be released only after the "As built" drawings,Final drawings and material reconciliation statements are submitted by the contractor correctly and certified by the Engineer.

25.0 NATURE OF CONTRACT: 25.1 The contract shall be on divisible basis. The property of the plant,

machinery and equipment shall pass on to the Employer on despatch from the manufacturer's works/godowns etc. The Contractor, however, has to take the responsibility of safe transport, delivery to site and take over the materials from the Engineer after the materials are received at site and after executing the bailment bond in approved proforma. The Contractor shall be released from the bailment bond only after issue of Preliminary acceptance certificate as per Clause 18.0 of General Conditions of Contract.

25.2 The Contractor will remain responsible for the quality and workmanship

of the plant, machinery and equipment and these materials shall suit the purpose for which they are intended. The Contractor will remain responsible for the safe custody of these materials supplied till the same are installed and handed over to VSP. The Contractor shall keep the Employer indemnified in full against any loss or damage to these plant, machinery and equipment.

25.3 "C" form will be issued for the materials brought to the site as per the approved drawings.

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25.4 Orders for Supply (design, manufacture and supply to the site) and Installation (storage, erection, testing and commissioning) shall be issued separately.

The Contractor is required to quote lumpsum prices for supply and installation separately unless and otherwise specified in the BOQ or elsewhere in the specification.

25.5 Any price break-ups asked for in the BOQ is only indicative . Mutually

agreed price break-up for individual items shall be submitted by the Contractor for progress payments after award of the Contract.

26.0 BILLING: 26.1 The Employer has introduced computerised bill payment system. If

required by the Employer the Contractor has to submit bills in the prescribed format for this purpose at Contractor's own cost. The Contractor shall also arrange for data entry to meet the requirements of Employer's computer system at Contractor's cost. The Contractor shall extend all necessary cooperation to the Employer for the successful implementation of the computerised bill payment.

27.0 MILESTONES - ACHIEVEMENTS: 27.1 Various Milestones as indicated in the enclosure are required to be

achieved during execution of work. Non-achievement of Milestone within the specified time shall attract penalties as indicated against each activity of works. The penalties shall be non-refunded and not in any way connected with liquidated damages which shall be imposed as per terms of contract. These penalties shall also be an "Excepted Matter as defined under Clause-28.0 of General conditions of Contract.

27.2 In the event of non-fulfillment of Milestones during the specified period,

the penalty as indicated against each shall be levied/ recovered from the next R.A.Bill which shall not be refunded to the contractor irrespective of completion of the overall work.

27.3 However, due to any reason attributable to the Employer, if it is not

possible to achieve a particular Milestone/Milestones within the specified period, a suitable amendment in the period of affected/ related Milestones shall be made as deemed fit by the Engineer whose decision shall be final, binding and conclusive and shall be an Excepted Matter as defined in G.C.C. In such cases, the Levy of Penalty shall be linked with the fulfillment of the amended Milestone(s). The contractor shall not have any claim on account of such changes/postponement of Milestones.

27.4 Contractor to note that Three (3) successive failures of fulfilling

Milestones may entail cancellation of contract and getting the work done at his Risk and Cost. This is also an Excepted matter as per Clause No.28.0 of General conditions of contract.

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28.0 MODVAT SCHEME: 28.1 The tenderers shall specify the amount of excise duty, countervailing

duty and customs duty incorporated by them in the price bid and for which they will be able to furnish the duty paying documents in terms of notification No: 97/94, 25.07.94 of Office of the Collector of Customs and Central Excise, Visakhapatnam containing GOI Notification nos: 32/94-CE(NT) and 33/94-CE (NT) both dtd: 04.07.94.(Copy enclosed for reference). In addition to the above the tenderer shall also submit all necessary documentary evidence, particulars and comply with the procedure and conditions as prescribed by the Central Excise and Customs Authorities from time to time, on the basis of which VSP can avail MODVAT credit.

28.2 The amount of excise duty and CVD so incorporated in the relevant

columns as quoted by the Tenderer shall be deducted from their total price for the purpose of tender evaluation.

28.3 The tenderer/contractor shall furnish all necessary documents/

particulars to VSP which may be required by VSP for claiming the MODVAT credit. The tenderer/contractor shall also comply with the procedure, conditions etc. as prescribed by the Central Excise and Customs Authorities from time to time.

28.4 They shall co-operate with VSP in fulfilling the conditions that may be

stipulated by the Central Excise & Customs Authorities. 28.5 The description in the duty paying documents shall exactly tally with the

description in the billing schedule. 28.6 For the purpose of payment the supplier/contractor shall ensure that

duty paying documents shall be furnished for the total amount of Excise duty & CVD specified as included in the tender value. In case the value of the duty paying documents, duly complying with the procedure and conditions stipulated by the Central Excise Authorities, submitted by the supplier/contractor falls short of the amount specified in the tender, the payment will be restricted to such short amount. For this purpose, the total amount of duty on various items forming part of the contract will be taken as one instead of individual item-wise.

28.7 In case the value of duty paying documents duly complied with the

procedure and conditions stipulated by Central Excise and Customs Authorities is more than the amount specified and incorporated in the price bid, the payment will be restricted to the agreed value i.e., tender awarded value. However, VSP will claim the MODVAT for the actual amount for which duty paying documents are made available. The supplier/contractor shall submit the necessary duty paying documents for all the items of equipment involved in the contract.

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28.8 VSP would apply for concessional rate of customs duty applicable to the Exporters. The concessions available shall be to VSP's account. Where the rate agreed is exclusive of Customs duty and CVD is payable at actuals by VSP, Customs duty would be reimbursed to the supplier/contractor at concessional rate in cases where VSP obtains permission for import of the equipment at concessional rate of duty. Wherever the rate agreed is inclusive of Customs duty at normal rates and where VSP furnishes EPCG Licence the price shall be subject to adjustment to the extent of concessions in Customs Duty and consequential reduction in other applicable taxes and duties.

28.9 However, price adjustment due to variation in taxes and duties shall be

governed by Clause no: 20 of Special Conditions of Contract. 29.0 The following deductions shall be made from the Bills/Amounts due to

the contractor as applicable for the work done and such deducted amounts shall be released as mentioned below:

Sl.No Item To be

deducted from the BOQ rate

To be released when

1. Retrenchment compensation (Terminal benefit to workers.)

2.946% of labour component

After the contractor makes payment to the workers and produces satisfactory proof and CLC Clearance regarding the same (to be paid along with final bill).

2. Bonus to workers 3.755% of labour component

After the contractor makes payments to the workers and on certification from the Engineer and representative of CLC (to be released along with RA bill/final bill as and when paid by the contractor).

3. Notice pay to workers 5.06% of labour component

After/if the contractor makes payment of such notice pay to the workers and on producing proof and CLC clearance (to be paid along with final bill).

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ESCALATION The following clause relating to variation in wages. No other claim on account of any other variation either statutory or otherwise shall be applicable: PRICE VARIATION DUE TO CHANGE IN LABOUR WAGES FOR INSTALLATION, TESTING & COMMISSIONING OF EQUIPMENT CONTRACT ONLY: Price variation due to change in Labour Wages shall be applicable as per formula given below: V = 0.60 x W x ( X – XO ) XO Where; V = Escalation or De-escalation payable or deductable. W = Gross value of work done on the basis of Contract Rates for the

period for which variation is applicable.

X = Average of revised minimum rates of wages of the skilled, semi-skilled and un-skilled workers applicable for the area of site of work as per minimum rates of wages as notified by the Commissioner of Labour, Andhra Pradesh, Hyderabad, published in Andhra Pradesh Gazette for the period under consideration.

XO = Average of minimum rates of wages of the skilled, semi-skilled and un-skilled workers on the base date (i.e. date of opening of price bid) applicable for the area of site of work as per minimum rates of wages as notified by Commissioner of Labour, Andhra Pradesh, Hyderabad, published in Andhra Pradesh Gazette.

CLARIFICATION:

In case of revision of wages with effect from any date in a month say June 2004, the work done with effect from the first day of subsequent month (i.e. 1st July 2004) only will qualify for price variation as per the above formula.

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ESCALATION The following clause relating to variation in wages. No other claim on account of any other variation either statutory or otherwise shall be applicable: PRICE VARIATION DUE TO CHANGE IN LABOUR WAGES FOR INSTALLATION, TESTING & COMMISSIONING OF EQUIPMENT CONTRACT ONLY: Price variation due to change in Labour Wages shall be applicable as per formula given below: V = 0.40 x W x ( X – XO ) XO Where; V = Escalation or De-escalation payable or deductable. W = Gross value of work done on the basis of Contract Rates for the

period for which variation is applicable.

X = Average of revised minimum rates of wages of the skilled, semi-skilled and un-skilled workers applicable for the area of site of work as per minimum rates of wages as notified by the Commissioner of Labour, Andhra Pradesh, Hyderabad, published in Andhra Pradesh Gazette for the period under consideration.

XO = Average of minimum rates of wages of the skilled, semi-skilled and un-skilled workers on the base date (i.e. date of opening of price bid) applicable for the area of site of work as per minimum rates of wages as notified by Commissioner of Labour, Andhra Pradesh, Hyderabad, published in Andhra Pradesh Gazette.

CLARIFICATION:

In case of revision of wages with effect from any date in a month say June 2004, the work done with effect from the first day of subsequent month (i.e. 1st July 2004) only will qualify for price variation as per the above formula.

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ANNEXURE TO TERMS AND CONDITIONS FOR HIRING AND THE HIRING CHARGES OF THE CONSTRUCTION EQUIPMENT.

(REFER CLAUSE NO.6.4 OF SPECIAL CONDITIONS OF CONTRACT.)

Sl.No.

DESCRIPTION OF THE EQUIPMENT

HIRE CHANGES

1. TATA 955 Crane 1,446/- hour 2. TATA 655 Crane 1,182/- hour 3. TATA 320 Crane 839/- hour 4. Demag V-72 803/- hour 5. Ack Lift 342/- hour 6 D-80 Dozer 1,034/- hour 7. CC 2000 Crane 6,643/- hour 8. BK-300T Crane 1,745/- hour 9. Boom Extension / Reduction:

TATA 320 TATA 655 TATA 955

1,979/- 3,155/- 3,956/-

10. 35t Haulpak Dumper 1,216/- hour 11. L & T 90-CK Poclain 943/- hour 12. WA/200 Loader 460/- hour 13. HM-2071 Loader 1,543/- hour 14. BEML PC-220 Excavator 699/- hour 15. Escorts C-8000 Hydra Crane 334/- hour 16. Ashok Leyland Tusker Turbo

20Ton. Tractor – Trailor 286/- hour

17. BEML D-155 Dozer 2,688/- hour 18. Husky 30T crane 2,307/- hour 19. Groove 40T crane 2,996/- hour

Note: All the rates are indicative only. The Hire Charges shall be recovered as

per the prevailing rates at the time of actual use/hiring of equipment.