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Procurement of amc(annual maintenance contract) for hvac ... - GAIL

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40. Contract<br />

Per<strong>for</strong>mance<br />

Security<br />

41. Corrupt or<br />

Fraudulent<br />

Practices<br />

document on non-judicial paper <strong>of</strong> appropriate value (the cost <strong>of</strong><br />

stamp paper shall be borne by the Contractor), within 15 days <strong>of</strong> the<br />

receipt by him <strong>of</strong> the Notification <strong>of</strong> Acceptance <strong>of</strong> Tender. In the<br />

event <strong>of</strong> failure on the part <strong>of</strong> the successful bidder to sign the<br />

AGREEMENT within the above stipulated period, the Bid Security<br />

shall be <strong>for</strong>feited and the acceptance <strong>of</strong> the tender shall be<br />

considered as cancelled.<br />

40.1 Within 15 days <strong>of</strong> the receipt <strong>of</strong> the notification <strong>of</strong> award / Fax <strong>of</strong> Intent<br />

from <strong>GAIL</strong>, the successful bidder shall furnish the <strong>contract</strong><br />

per<strong>for</strong>mance security in accordance with Article 24 <strong>of</strong> General<br />

Conditions <strong>of</strong> The Contract in the <strong>for</strong>m provided in the bidding<br />

documents. The Contract Per<strong>for</strong>mance Security shall be in the<br />

<strong>for</strong>m <strong>of</strong> either Banker’s Cheque or Demand Draft or Bank<br />

Guarantee or Letter <strong>of</strong> Credit and shall be in the currency <strong>of</strong> the<br />

Contract.<br />

40.2 The <strong>contract</strong> per<strong>for</strong>mance security shall be <strong>for</strong> an amount equal to<br />

10% <strong>of</strong> the value <strong>of</strong> the <strong>contract</strong> towards faithful per<strong>for</strong>mance <strong>of</strong><br />

the <strong>contract</strong>ual obligations and per<strong>for</strong>mance <strong>of</strong> equipment. This<br />

Bank Guarantee/DD/Letter <strong>of</strong> Credit shall be from any Indian<br />

scheduled bank or a branch <strong>of</strong> an International bank situated in<br />

India and registered with Reserve bank <strong>of</strong> India as scheduled<br />

<strong>for</strong>eign bank. However, in case <strong>of</strong> bank guarantees from banks<br />

other than the Nationalized Indian banks, the bank must be a<br />

commercial bank having net worth in excess <strong>of</strong> Rs 100 crores and a<br />

declaration to this effect should be made by such commercial bank<br />

either in the Bank Guarantee itself or separately on its letterhead.<br />

This bank guarantee shall be valid <strong>for</strong> a period as stated in Article-<br />

24 <strong>of</strong> General Conditions <strong>of</strong> The Contract.<br />

40.3 Failure <strong>of</strong> the successful bidder to comply with the requirements <strong>of</strong> this<br />

article shall constitute sufficient grounds <strong>for</strong> the annulment <strong>of</strong> the<br />

award and <strong>for</strong>feiture <strong>of</strong> the bid security, in which event <strong>GAIL</strong> may<br />

award the order to the next lowest evaluated bidder or call <strong>for</strong> new<br />

bids.<br />

41.1 <strong>GAIL</strong> requires that bidders/<strong>contract</strong>ors observe the highest standard<br />

<strong>of</strong> ethics during the execution <strong>of</strong> <strong>contract</strong>s. In pursuance <strong>of</strong> this<br />

policy, the Employer :<br />

a) defines, <strong>for</strong> the purposes <strong>of</strong> this provision, the terms<br />

set <strong>for</strong>th below as follows :<br />

i) “corrupt practice” means the <strong>of</strong>fering, giving or<br />

soliciting <strong>of</strong> anything <strong>of</strong> value to influence the<br />

action <strong>of</strong> a public <strong>of</strong>ficial in the procurement<br />

process or in <strong>contract</strong> execution; and<br />

ii) “fraudulent practice” means a misrepresentation <strong>of</strong><br />

facts in order to influence a procurement process or<br />

the execution <strong>of</strong> a <strong>contract</strong> to the detriment <strong>of</strong> the<br />

Employer, and includes collusive practice among<br />

bidders (prior to or after bid submission) designed<br />

to establish bid prices at artificial non-competitive<br />

Page 31 <strong>of</strong> 158

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