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Volume-II - GAIL

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8 Whether road permit is<br />

applicable<br />

5.0 Recovery On Failure Of Pipe Under Field Hydro Test<br />

: Will be provided if required<br />

Price reduction schedule on failure of pipe under field hydro test and /or during<br />

guarantee/warranty period and /or defect liability period as applicable shall be as follows ( for<br />

pipe supplier)<br />

Pursuant to Clause 14 of Technical specification ( <strong>GAIL</strong>-TS-LINEPIES-CS) , owner shall be<br />

reimbursed by the successful bidders for any pipe supplied against this order that fails under<br />

field hydrostatic test and /or during guarantee/warranty period and /or defect liability period<br />

as applicable , if such failure is caused by a defect in pipes which is outside the acceptance<br />

limit of the specifications. The reimbursement cost will be the landed cost of the defective<br />

pipes including all cost incurred upto delivery thereof at site and shall also include but not<br />

limited to cost of all duties , freight , insurance ,labour, material, charges for cutting ,<br />

removing recoating ,replacement and relaying of defective pipeline including cost of incidental<br />

activities as well as losses suffered by <strong>GAIL</strong>. The recovery cost shall be calculated at actual<br />

but will be subject to minimum values given below .Recovery shall be applied on the actual or<br />

minimum predetermined rate , whichever is higher .The minimum pre-determined<br />

reimbursement cost of each pipe shall be as under :-<br />

(i) USD 50,000 (fifty thousand US Dollars ) for bidder quoting in Foreign currency<br />

(ii) Rs 23,50,000/- (Rs twenty three lacs fifty thousand only ) for bidder quoting in In<br />

Indian Currecny<br />

The above cost shall be for each pipe , payable by the vendor to the owner on demand<br />

without necessity of any proof of replacement /reimbursement cost. Further , in case , the<br />

amount payable by the vendor to <strong>GAIL</strong> become more than what can be adjusted through<br />

price reduction , <strong>GAIL</strong> may recover at its discretion through deduction from any payment due<br />

or becomes due to the contractor or by enchasing the Bank Guarantee (s) furnished by<br />

contractor, the unrecovered part of such payment will be paid by the contractor to <strong>GAIL</strong> with<br />

in 15 days of date of notification by <strong>GAIL</strong> to him.<br />

In the event of conflict between the stipulations of this article and anything contained in the<br />

Technical Specification ,the stipulations of this article shall govern.<br />

Necessary tests to establish cause of failure of pipes, if the pipe supplier so desires shall be<br />

carried out at Welding Research Institute ,Trichi India. All cost towards the same is to be<br />

borne by the pipe supplier.<br />

6 Miscellaneous<br />

6.1 Where any portion of the General Conditions of Contract is repugnant to or at variance with<br />

any provisions of the Special Conditions of Contract, unless a different intention appears, the<br />

provisions of the Special Conditions of Contract shall be deemed to over-ride the provisions of<br />

the General Conditions of Contract and shall be the extent of such repugnancy, or variations,<br />

prevail.<br />

6.2 Wherever it is mentioned in the specification that the Contractor shall perform certain work or<br />

provide certain facilities, it is understood that the Contractor shall do so at his cost and the<br />

Value of Contract shall be deemed to have include cost of such performance and<br />

provisions, so mentioned.<br />

<strong>GAIL</strong> (INDIA) LIMITED<br />

New Delhi<br />

Special Conditions of Contract<br />

5 of 10

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