Volume-II - GAIL

6.24 Insurance (For option – II & III)
6.24.1 Contractor shall, at his own expense arrange, secure and maintain insurance as may be
necessary with reputable insurance company to the satisfaction of the employer. Bidder’s
failure in this regard shall not relieve him of any of this responsibilities and obligation under
contract. The contractor will insure the goods for its full replacement value till the coated
pipes are handed over to pipeline laying contractor.
6.24.2 Employer will be co – insured in the policy.
6.24.3 Any damage or loss or short receipt noted by the Employer on receipt of material at
warehouse or at the time of taking delivery at warehouse, as the case may be, the employer
might immediately inform the contractor through e- mail / fax / letter .The documentary
evidence shall be forwarded to contractor in due course.
6.24.4 The contractor shall take immediate step to lodge claims with its insurer and arrange to make
good available or immediate replacement of damaged / lost / short receipt material without
waiting for insurance claim settlement.
6.24.5 In case the damage is repairable and carried out by the employer to save time the contractor
will reimburse the cost of repair, immediately on demand.
6.25 Governing Law
Laws of India will govern the contract and Delhi courts will have exclusive jurisdiction on all
matters related to contract.
6.26 Bonus Clause
The bonus clause 27.3 of GCC (procurement of work) is not applicable in the intstant tender.
6.27 Quality Assurance / Quality control
6.27.1 The contractor shall prepare a detailed quality assurance plan for the execution of contract
for various facilities, which will be mutually discussed and agreed to .
6.27.2 The contractor shall establish document and maintain an effective quality assurance system
outlined in recognized codes.
6.27.3 the purchaser / consultant while agreeing to a quality assurance plan shall mark the stages
where they would like to witness the tests; review any or all stages of work at shop / sites as
deemed necessary for quality assurance.
6.28 Performance Evaluation
The performance of contractor to whom the award is placed shall be evaluated right from
submission of bid till the final completion, as per enclosed attachment –I.
GAIL (INDIA) LIMITED
New Delhi
Special Conditions of Contract
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