GAIL (India) Limited PATA

due to Force Majeure as defined in Clause 26 of GCC or due to EMPLOYER’s
defaults, the Total Contract price shall be reduced by ½% of the total
Contract Price per complete week of delay or part thereof subject to a
maximum of 5% of the Total Contract Price, by way of reduction in price for
delay and not as penalty. The said amount will be recovered from amount
due to the Contractor/Contractor’s Contract Performance Security payable on
demand.
The decision of the ENGINEER-IN-CHARGE in regard to applicability of Price
Reduction Schedule shall be final and binding on the CONTRACTOR.
10.2 All sums payable under this clause is the reduction in price due to delay in
completion period at the above agreed rate.
11. DEFECT LIABILITY PERIOD
The tenderer shall guarantee all the work executed by him for a period of 12
months from the date of completion of work(s)/Part(s) . If during this period
any defect occur, the same shall be made good by the contractor at his own
cost. Failure to comply with this requirement may result in the forfeiture of
security deposit.
However, in case of critical items, if the guarantee period is beyond defect
liability period, then guarantee shall applicable for that period also.
12. SECURITY DEPOSIT
12.1 A sum of 10% of the accepted value of the tender or the actual value of work
done whichever is applicable due to any additional work or any other reasons
shall be deposited by the person/person (here after called the CONTRACTOR)
as Security Deposit with the GAIL which will be refunded as per details
contained in clause 12.6.
12.2 Security deposit may be deposited initially at 2-1/2% of the VALUE OF
CONTRACT (referred as INITIAL SECURITY DEPOSIT) within 10 days of
receipt by him of the Notification of Acceptance of Tender and the balance 7-
1/2% will be recovered in installments through deductions at the rate of 10%
of the value of each running account bill till the total Security Deposit amount
10% of value of CONTRACT/actual value of work done is collected. After
which no further deductions from bills will be made on this account, subject
to Clause 12.4 below.
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