GAIL (India) Limited MECON LIMITED

GAIL (India) Limited 

(A Govt. of India Undertaking) 

NEW DELHI, INDIA 

NATURAL GAS PIPELINE PROJECT 

FOR IPP’s INDUSTRIES IN KG BASIN 

(Looplines between K. Cheruvu J.P. to Kakinada J.P.) 

BID DOCUMENT FOR PROCUREMENT 

OF 

BARE / COATED LINE PIPES 

UNDER INTERNATIONAL 

COMPETITIVE BIDDING 

BID DOCUMENT NO. 05/51/23J8(Part-C)/GAIL/012B 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\1-Cover - Line Pipes.doc 

VOLUME –I OF II 

PREPARED AND ISSUED BY 

MECON LIMITED 


Delhi, India

MASTER TABLE OF CONTENT 

Name of Project : Natural Gas Pipeline Project for IPPs Industries in 

K.G. Basin (Looplines between K. Cheruvu J.P. to 

kakinada J.P.) 

Tender Document No. : 05/51/23J8(Part-C)/GAIL/012B 

Sl.No. Description 

1) Volume-I of II : Comprising of IFB, ITB, GCC 

2) Volume-II of II : SCC, Technical Specification, Tender Drawings, 

Bills of Quantities, Schedule of Rates (SOR) 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\2-Master Table of Content.doc

TABLE OF CONTENT (Vol-I of II) 

Name of Project : Natural Gas Pipeline Project for IPPs Industries in 

K.G. Basin (Looplines between K. Cheruvu J.P. to 

Kakinada J.P.) 

Tender Document No. : 05/51/23J8(Part-C)/GAIL/012B 


SECTION -I 

PART-A 1) Invitation for Bid (IFB) 

2) Acknowledgement-cum-consent Letter 

3) Submission of Bid 

SECTION -II 

PART-B 1) Instruction to Bidder (ITB) 

2) Annexure to ITB 

• Annexure-I : Bid Evaluation Criteria 

• Annexure-II : List of Formats 

• Annexure-III : Commercial Questionnaire 

• Annexure-IV : Check List 

SECTION -III 

PART-C 1) General Conditions of Contract (GCC) 

2) Annexure to GCC 

• Annexure-I : Proforma of Indemnity Bond for supply of 

Materials by Employer 

• Annexure-II : Proforma for Contract Agreement 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\3-Table of Content.doc


TENDER FOR 

BARE /COATED LINE PIPES 

IN IPPs IN K.G. BASIN 

Bid No. 05/51/23J8(Part-C)/GAIL/012B 

SECTION – I 

INVITATION FOR BIDS (IFB) 


BID DOCUMENT NO.: 05/51/23J8(Part-C)/GAIL/012B Date: 01.02.2007 

To, 

Dear Sir, 

M/s MECON LIMITED, who has been retained by GAIL (India) Ltd., (A Govt. of India 

Undertaking) as a consultant for “ the Project of Natural Gas Pipeline Project for IPPs 

Industries in K.G. Basin (Looplines between K. Cheruvu J.P. to Kakinada J.P.)”, 

invites sealed bids for the item(s) in complete accordance with the Bid Documents/ 

Attachments on behalf of GAIL (India) Ltd. 

The salient terms and conditions of the bid are stated below: 

I. PROJECT : 

II. TYPE OF BID : International Competitive Bidding 

III. ITEM(S) : Coated Pipes/Bare Pipes/ Coating of Pipes 

in India 

Option – I : Supply of Bare Pipes confirming to 

API 5L, PSL-2 

Option – II : 3 LPE Coating in India on Bare 

Pipes issued by GAIL, transportation to 

designated dumpyard and maintenance of 

dumpyard, coating specification conforming to 

the bid document. 

Option – III : Supply of 3 LPE Coated Pipes at 

designated Dumpyard and maintenance of 

Dumpard; bare pipes conforming to API 5L, PSL- 

2 and coating specification conforming to the bid 

document. 

IV. COMPLETION PERIOD : As per Special Conditions of Contract 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\4-IFB - Line Pipes - BEC.doc 

Natural Gas Pipeline Project for IPPs 

Industries in K.G. Basin (Looplines 

between K. Cheruvu J.P. to Kakinada J.P.) 


Page 1 of 5


V-A. EARNEST MONEY/ BID : 

TENDER FOR 





Option Indian Bidder Foreign Bidder 

(Rs.) 

(US$) 

I 20,00,000/- 45000 

II 15,00,000/- 35000 

III 24,00,000/- 55000 

I & II 24,00,000/- 55000 

II & III 24,00,000/- 55000 

I, II & III 24,00,000/- 55000 

Through either demand draft or in the form of 

Bank Guarantee in favour of GAIL (India) Limited 

and payable at Delhi 

V-B. BID SECURITY VALIDITY : 6(SIX) months from final bid due date 

VI. SALE PERIOD OF BID : 01.02.2007 TO 05.03.2007 from 1000 Hrs. to 

DOCUMENT 1700 Hrs (IST). (Excluding closed day) 

VII. DATE & PLACE OF PRE-BID: 20.02.2007 at 1500 Hrs. 

CONFERENCE Venue : - 


GAIL Bhawan 

16, Bhikaji Cama Place, R. K Puram, 

New Delhi – 110 066 

VIIIA. DUE DATE OF SUBMISSION: 06.03.2007 at 15.00 hrs. (IST) 

OF BID 

VIIIB. BID VALIDITY : 4(four) months from the final due date 

IX. TECHNO-COMMERCIAL BID: At 1600 Hrs. on the final due date (in presence 

OPENING DUE DATE & TIME of representative of bidders). 

X. VENUE : Address & Contact Nos. given below. 

XI. TENDER FEE (non : Rs. 45,000/- (Rupees forty five thousand Only) 

Refundable) USD 1000 (US Dollar one thousand Only) in 

favour of “GAIL (India) LIMITED”, payable at 

New Delhi 



Page 2 of 5


TENDER FOR 



Bid No. 

05/51/23J8(Part-C)/GAIL/012B 

XII. BID EVALUATION : Refer Annexure-I to ITB 

CRITERIA 


XIII. ADDRESS FOR : A.K. Sharma, DGM I/c ( Contracts) 

CORRESPONDENCE MECON LIMITED 

& SALE OF BID DOCUMENT 15 th Floor, Scope Minar North Tower 

Laxmi Nagar Distt. Centre 

Delhi – 110 092 

Ph. No. 91-11-2204 1468 

Fax No. 91-11-22041214 

XV. BIDDER ELIGIBILITY : Annexure – I to IFB 

CRITERIA 

XVI. OTHERS: 

1.0 Bid Document can be purchased from [Name & Address detailed at XIII above] on any working 

day from 1000 hours to 1700 hours against a written request and payment of requisite tender 

fee as specified in Clause XI of IFB by crossed bank draft from a first class International Bank 

or an Indian Scheduled Bank, in favour of GAIL (India) Limited, payable at Delhi No extension 

in the bid due date shall be considered on account of delay in receipt of bid document by mail. 

In case the bidder wishes to download the Bidding Document from GAIL's/MECON 

web-site, then the requisite amount of Tender Fee in the form of Demand Draft, in 

favour of GAIL (India) Limited, New Delhi shall be payable by the bidder on or 

before the due date of submission of the bid without which offer may not be 

considered for evaluation. 

If such bidders are interested in attending Pre-bid meeting, they shall be required 

to pay tender fee before the pre-bid meeting. 

An undertaking that the contents of the Bidding Document have not been altered or 

modified shall be furnished alongwith the offer. 

2.0 Accredited representatives of foreign bidders in India are also permitted to purchase the bid 

document on behalf of foreign bidder on payment of requisite document fee in Indian Rupees. 

The bid of foreign bidder shall be evaluated only if the bid is accompanied by the prescribed 

bid document fee in the form of demand draft in US Dollars after which the fee deposited by 

Indian representative shall be refunded. Bid submitted by bidders, who have not purchased the 

bid document either directly or through their authorised representative will be rejected. 

3.0 The Governments Departments are exempted from payment of tender fee. In the event a 

particular tender is cancelled, the tender fee will be refunded to the concerned Bidders. 

4.0 Bid Document is non-transferable. 

4.1 Bidder must buy the bid document in his own name and submit the bid directly. 

Bids received from bidders in whose name bid document has been purchased shall only be 

considered. 

5.0 Bids complete in all respects should reach on or before the BID DUE DATE AND TIME. Bids 

through Fax/ E-mail shall not be considered. 


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TENDER FOR 





Bidder may depute their representative with proper authorisation letter to attend of technocommercial 

opening of bids. 

6.0 The Bid Document calls for offers on single point "Sole Bidder" responsibility basis. 

Order will be placed on the "Sole Bidder" alone (in whose name the bid document has been 

issued) who will be responsible for all contractual purposes. 

Further the bidders are advised to ensure that their offer is on single bidder responsibility basis 

and in total compliance of scope of supply as specified in Bid Document. 

7.0 The bid should be prepared by the "Sole Bidder" and should be sent to MECON directly. 

MECON / GAIL reserve the right to reject offers made by intermediaries representatives. 

8.0 Bidder shall ensure that Bid Security having a validity of 6(SIX) months from the bid due date, 

must accompany the offer in the format made available in the Bid Document. 

9.0 This Invitation for Bids (IFB) is an integral and inseparable part of the enclosed Bid Document. 

10.0 MECON / GAIL reserves the right to accept or reject any or all offers without assigning any 

reason, whatsoever. 

11.0 MECON / GAIL reserves the right to allow Purchase preference to Public Sector Undertakings as 

admissible under the prevailing policy. 

12.0 Copy of Bidding Document for reference is available at MECON, at the address given 

hereinabove. 

The complete Bidding Document is also available on the web site of MECON Limited 

(www.meconlimited.com) and GAIL’s website www.gailonline.com 

13.0 SEALING & MARKING OF BIDS 

Bids should be submitted in complete accordance with the bid documents / attachments 

separately in three parts in sealed envelopes super-scribed with the Bid Document Number, 

due date, item and nature of bid (un-priced, priced), as follows : 

Part- I : UNPRICED BID 

Part- II : PRICED BID 

Part- III : BID SECURITY 

The three envelopes, containing Part-I, Part-II and Part-III of offer, shall be duly sealed and 

respective cut-out slip enclosed with this letter as Appendix-A shall be pasted on each envelop. 

Name & address of the bidder shall be mentioned on each cut-out slip. These three sealed 

envelopes shall be further kept in a larger envelope & which shall also be duly sealed. Cut-out 

slip meant for complete offer shall be pasted on it with name and complete address & contact 

number of the bidder. 

14.0 In case you download the tender document and interested to quote, please 

intimate to us showing your interest immediately alongwith complete contract 

address, phone no., fax no., e-mail etc. for correspondence. Owner will inform 

about Addendum, if any to those who have furnished above information. However, 

information about Addendum shall also be available on MECON’s and GAIL’s 

websites as an when these are issued 



Page 4 of 5


TENDER FOR 





15.0 ZERO DEVIATION TENDER 

Bidder’s Bid shall be considered non-responsive and rejected, if deviations are taken to the 

under mentioned provisions of Bid Documents by the Bidder:- 

i) Do not meet BEC Criteria 

ii) Bid Security 

iii) Performance Security (Contract Performance Bank Guarantee), 10% of Contract/Order 

value 

iv) Delivery Period 

v) Terms of Payment 

vi) Period of validity of bids 

vii) Force Majeure 

viii) Resolution of Dispute/Arbitration 

ix) Termination of Contract, 

x) Warranty and Guarantee 

xi) Offer not submitted for complete scope of work 

xii) Firm prices 

xiii) Prices not quoted as per Schedule of Rates formats. 

xiv) Bidder have been banned by Government of India or any its Agency/ Undertaking/ 

Department of Government of India. 

xv) Bidders is under liquidation. 

xvi) Bidder is under litigation which owner’s considers a disqualification. 

xvii) Bids not conforming to technical specification/requirements. 

xviii) Any other such provisions if specifically stipulated elsewhere in the Bid Document. 

xix) Price Reduction Schedule. 

THIS IS NOT AN ORDER 

Yours faithfully, 

for and on behalf of GAIL (India) Limited 

for MECON LIMITED 

(A.K. Sharma) 

DGM I/c (Contracts) 

Encl. 1. Appendix – A - 4(four) nos. of Cut-Out slips to be pasted on different sealed envelops 

of the offer. 

2. Vol.-I of II & Vol.-II of II of the Bid Document. 

Note: 

Please acknowledge the receipt of the bid document and confirm your intention to quote or not within 

7(seven) days. In case not intending to quote then please give reasons and also please return the 

tender document to us. 



Page 5 of 5


1.0 BRIEF PROJECT DETAILS : 

TENDER FOR 





ANNEXURE-I to IFB 

M/s GAIL (India) Limited intends to execute Pipeline Projects in KG Basin 

region in state of Andhra Pradesh for supplying Natural Gas to 

existing/potential new consumers. For this, a loop line of size 18” is to be laid 

between K. Cheruvu Junction Point and Kakinada Junction Point. 

2.0 A) SCOPE OF SUPPLY/ WORK : 

The brief scope shall include supply of bare pipes/coating & transportation 

work/coated pipes as per different options mentioned in Sl.No. 3.0 conforming 

to the specifications provided in the tender document. 

Line Pipe details are as follows :- 

Item 

no. 

Sl. 

no OD 

(mm) 

WT 

(mm) 

Description Quantity 

Material Grade Finish Metres MT 

A A 457.0 6.4 API 5L PSL – 2 Gr X-70, PE Coated 22,700 1614.42 

B 

C 

B1 457.0 8.7 API 5L PSL – 2 Gr X-70, PE Coated 5,900 567.46 

B2 457.0 8.7 API 5L PSL – 2 Gr X-70, PE Uncoated 100 9.62 

C1 457.0 10.3 API 5L PSL – 2 Gr X-70, PE Coated 2,600 294.99 

C2 457.0 10.3 API 5L PSL – 2 Gr X-70, PE Uncoated 200 22.69 

TOTAL 31,500 2509.18 

The details on scope of supply/ work have been given in SOR and other 

Chapters of the tender document. 

B) DELIVERY SCHEDULE 

The delivery schedule shall be as given below :- 

Option Option Delivery Schedule Effective Date of Delivery Basis 

Description 

Start 

I Supply of Bare a) Domestic Bidder 

a) Domestic Bidder 

Pipes 

Delivery to start from 8 

Loading of pipes 

week ex-works and UUUUUUUUUUDomest on Trailer 

complete within 12 ic/ Foreign Bidder (Trailers shall be 

weeks. 

Date of Issue of FOI arranged by GAIL 

appointed 

b) Foreign Bidder 

Coating 

Delivery within 8 weeks at 

Contractor). 

port of exit. 


FOB port of exit 


BEC 

Page 1 of 6


Option Option 

Description 

II Coating in 

India of Bare 

Pipes issued by 

GAIL, 

Transportation 

to Designated 

Dumpyard 

III Supply of 

Coated Pipes at 

designated 

Dumpyard 

3.0 BID EVALUATION CRITERIA 

TENDER FOR 





Delivery Schedule Effective Date of 

Start 

Delivery Basis 

Last consignment to reach From Date of FOT Site (Dumpyard) 

Dumpyard within 6 weeks Intimation by GAIL/ 

MECON of readiness 

of Bare Line Pipes for 

lifting from 

Manufacturer’s Works/ 

designated Indian Sea 

Port, for PE Coating 

Last consignment to reach 

Dumpyard within 18 weeks 

Date of Issue of FOI FOT Site (Dumpyard) 

The bids may be submitted for any of the following three Options depending 

upon the bidder’s eligibility. 

OPTION-I : Supply of bare Pipes at FOT Dispatch point for Indian 

Bidders/ FOB port of shipment for Foreign Bidders. 

OPTION-II : Coating in India of Bare Pipes issued by GAIL, 

Transportation of bare pipes to coating plant, coating 

of bare pipes, transportation of coated pipes to 

Designated Dump yard near Oduru and maintenance 

of Dump yard for 2 months beyond the contractual 

completion period or actual completion period, which 

ever is later. 

OPTION III : Supply of Coated Pipes at designated Dump yard near 

Oduru and maintenance of Dump yard for 2 months 

beyond the contractual completion period or actual 

completion period, which ever is later. 

The bids shall be evaluated for the full quantity on L-1 basis under different 

options. 

Bare Pipe Manufacturers can quote either for Bare Pipe (Option-I) or for Coated 

Pipe (Option-III). In case of Option III, bidder can quote independently or with 

consortium arrangement. 

Coating Contractor can quote either for Coating & Transportation Work (Option- 

II) or for Coated Pipe (Option-III) with consortium arrangement only. 

The Bidder’s eligibility criteria, under various Options are as follows :- 


BEC 

Page 2 of 6


3.1 Technical 

TENDER FOR 




3.1.1 OPTION-I – For Bare Pipe (Domestic/ Foreign Bidders) 


The bidder shall either be a Line pipe manufacturer, or a Supplier who has 

been authorized by a Line pipe manufacturer. The bidder should meet the 

following criteria : 

3.1.1.1 For Pipe Manufacturer : 

001 The bidder’s proposed mill(s) shall have experience in manufacturing API 5L 

PSL-2 quality line pipe. 

002 The bidder should have manufactured and supplied from proposed pipe mill at 

least 1 km of line pipe for petroleum pipeline project in one single order as per 

API 5L PSL-2 that are equal or higher in terms of diameter, grade and type as 

quoted, with minimum thickness of 6.4mm or higher in any of the last five 

years reckoned from the date of commencement of sale of Bidding Document. 

003 In addition, the bidder should have manufactured and supplied at least 10% of 

the quoted quantity of Line pipes of type, as quoted for petroleum pipeline 

project as per API 5L (PSL-2) of same or higher diameter of X-65 or higher 

grade with minimum thickness of 6.4 mm or higher from proposed pipe mill in 

one single order in any of the last five years reckoned from the date of 

commencement of sale of Bidding Document. 

004 The Bidder should have API 5L certificate and a valid license to use API 5L 

monogram on Line pipe with product specification level PSL-2 quality for the 

proposed pipe mill(s). 

005 Mill Qualification : The bidder shall furnish a certificate for proposed pipe 

mills alongwith their bid, which have not been audited by GAIL/ or its 

authorized representatives or , have not supplied pipes to GAIL for high 

pressure petroleum service of same or higher size and material Grade API 5L 

X 70 during last five years reckoned from the date of commencement of sale of 

bidding document, as per Format F-10A provided in the bid document, from a 

reputed International inspection agency as listed in SCC, certifying that the mill 

has capability to produce line pipes complying with technical requirements 

specified in the bid documents. Non-compliance to the above requirement will 

make the mill liable for rejection. 

006 The Bidder shall procure the steel plates/ coil from listed manufacturers or 

those meeting the qualification requirement of steel plate/ coils manufacturers 

as stipulated in the bid document. 

3.1.1.2 For Authorised Pipe Supplier (applicable only to foreign bidders) : 

001 In case the pipe manufacturer(s) who do not submit bid directly as a matter of 

their corporate policy, they may submit bid through their authorised/ 

accredited trading house/ suppliers. In such cases, the concerned trading 


BEC 

Page 3 of 6


TENDER FOR 





house/ supplier may submit the offer as “Bidder” subject to fulfilling the 

following criteria : 

002 The bidder shall supply line pipes produced by an established line pipe 

manufacturer who meets qualification requirements stipulated under clauses 

3.1.1.1 (001 to 006) above. 

003 The bidder shall furnish an authority certificate from the line pipe 

manufacturer, confirming the bidder’s status as their authorised/ accredited 

supplier/ trading house. The Authority Certificate shall be valid up to the 

completion of tenure of the order in accordance with the Bidding Document. 

Also, the bidder shall furnish from pipe manufacture, a certificate to the effect 

that the manufacturer as a corporate policy does not quote directly and their 

pipes are quoted through their authorised/ accredited supplier/ trading house 

only. Further, one manufacturer can quote only through one supplier and a 

supplier shall offer product of only one manufacturer. 

004 The bid shall be liable for rejection in case of change of proposed line pipe 

manufacturer after submission of bid. 

3.1.2 OPTION-II – Qualification Criteria for Coating Work 

The bidder’s proposed coating plant shall have experience in application of 

three layer side extruded PE (3LPE) Coating of Bare Line Pipes and shall meet 

the following criteria. 

001 The proposed coating plant by the bidder for three layer side extruded PE (3 

LPE) coating on bare line pipes shall have coated at least 16 km length of bare 

line pipes of outside diameter 16” or higher using three layers side extruded PE 

coating, under a single contract during any of the last five years reckoned from 

the date of commencement of sale of Bidding document. 

002 Coating Plant Qualification: The Bidder shall furnish a certificate for proposed 

coating plant alongwith their bid, which has not been audited by GAIL/ or its 

authorized representatives or, have not supplied coated pipes to GAIL of same 

or higher size during last five years reckoned from the date of commencement 

of sale of bidding document, as per Format F-13 provided in the bid 

documents, from a reputed International inspection agency as listed in SCC, 

certifying that the plant has capability to coat line pipes complying with 

technical requirements specified in bid document. Non-compliance to the 

above requirement will make the plant liable for rejection. 


BEC 

Page 4 of 6


TENDER FOR 





003 A Foreign Bidder who desires to submit bid under OPTION-II for coating work 

shall have to relocate its proposed coating plant to India. In such case, the 

coating plant shall meet the qualification criteria as stipulated above. 

3.1.3 OPTION-III – For Coated Pipe 

3.1.3.1 Indigenous as well as foreign bidders quoting for supply of Coated Pipes should 

have combined experience of Bare Pipes (refer clause3.1.1.1) and Coating 

Work (refer clause 3.1.2) (Option-I + Option-II) in the respective areas and 

financial criteria as indicated in this qualification criteria. In case of Consortium 

bid, the experience and financial criteria of each consortium member will be 

considered for their respective areas. Documentary evidence regarding 

consortium arrangement as specified in the ITB is to be furnished. 

3.1.3.2 Foreign bidders, bidding for option-III, are allowed to do the coating of bare 

pipes in their overseas plant. 

3.2 Financial 

However, they are also allowed to import bare pipes in India and coat the 

pipes in India either through a coating agency or through their own coating 

plant relocated in India, meeting the qualification criteria as per clause 3.1.2. 

3.2.1 The minimum annual turnover (Rs. in Crs/USD in millions) achieved by the 

bidder as per their audited financial results during any one of the last three 

financial years i.e. 2003-04, 2004-05 & 2005-06 shall be as under : 

Item Sl. 

no. 

Sizes (mm) 

A A 6.4 (Coated) 

B 

B1 

B2 

8.7 (Coated) 

8.7 (Bare) 

C 

C1 

C2 

10.3((Coated) 

10.3 (Bare) 

TOTAL 

For Bare Pipe 

(OPTION I) 

Indian 

Rupees 

(Crs.) 

US$ 

(million) 

For Coating and 


Work 

(OPTION-II) 


Rupees 

(Crs.) 

US$ 

(million) 

For Bare Line Pipe, 

Coating & 

Transportation Work 

(OPTION-III) 


rupees 

(Crs.) 

US$ 

(million) 

8.21 1.86 3.88 0.88 12.09 2.74 

In case bidder quotes for more than one option, the annual turnover 

requirement shall be cumulative. 

3.2.2 Net Worth of the bidder/each partner of the consortium should be positive as 

per last audited financial statement i.e. for the financial year 2005-06. 

3.2.3 Return on Equity of the bidder/each partner of the consortium should be 

positive as per the last audited financial statement i.e. for the financial year 

2005-06. 


BEC 

Page 5 of 6


TENDER FOR 





3.2.4 The bidder should have below mentioned minimum working capital (Rs in 

crores/ USD in millions) as per last audited financial year i.e. for the financial 

year 2005-06 meeting the requirement specified against each item under 

Option I,II &III : 

Item Sl. 

No. 

Sizes (mm) 

A A 6.4 (Coated) 

B 

B1 

B2 

8.7 (Coated) 

8.7 (Bare) 

C 

C1 

C2 

10.3((Coated) 

10.3 (Bare) 

TOTAL 

For Bare Pipe 


rupees 

(Rs. in 

crs) 

(OPTION I) 

US$ 

(In million) 

For Coating and 


Work 

(OPTION-II) 


Rupees 

(Rs. in 

crs) 

US$ 

(in million) 

For Bare Line Pipe, 

Coating & 


Work 

(OPTION-III) 


Rupees 

(Rs. in 

crs) 

US$ 

(in million) 

1.64 0.37 0.78 0.18 2.42 0.55 

In case bidder quotes for more than one option the working capital 

requirement shall be cumulative. 

In case the bidder’s working capital is inadequate, the bidder should 

supplement this with a Vendor’s bank, having a net worth not less than Rs. 100 

crores or US$ 22 million, letter confirming the availability of line of credit to 

cover the inadequacy of previous year i.e. 2005-06 and meet the specified 

working capital requirement. 

3.2.5 In case of consortium bid, the leader of the consortium shall meet the financial 

criteria stipulated for Option-III at clause no. 3.2.1 and 3.2.4 above for the 

quoted scope of work and the individual member of consortium shall meet the 

financial criteria for their respective scope of work equal to 50% of the 

financial criteria stipulated at clause 3.2.1 above of Option-III for quoted scope 

of work. 

3.2.6 Bidder for whom financial year is calendar year, they shall submit financial 

result for the years 2003, 2004 & 2005. 

3.3 Bidder shall meet the technical, as well as, commercial qualification criteria as stated 

above. Bidder shall furnish necessary documentary evidence including duly filled in 

enclosed Format A & B alongwith the bid, to justify meeting the stipulated qualification 

criteria. In absence of requisite documents, GAIL reserve the right to reject the bid 

without making any reference to the bidder. 


BEC 

Page 6 of 6


TENDER FOR 




ANNUAL TURNOVER 


Applicant’s Legal Name : Date : 

JV Partner’s Legal Name : Tender No.: 

Each bidder must fill in this form (Single Entity) 

Annual Turnover data for the last 3 audited financial years. 

Year 

Year 1: 

Year 2: 

Year 3: 

Currency Amount Exchange 

Rate (*) 

Each member of a JV/Consortium must fill in this form (J. V. Consortium) 

Annual Turnover data for the last 3 audited financial years 

Year 

Leader of 

J. V./Consortium 

Year 1: 

Year 2: 

Year 3: 

Partner A 

Year 1: 

Year 2: 

Year 3: 

Partner B 

Year 1: 

Year 2: 

Year 3: 

Total 

Currency Amount Exchange 

Rate (*) 

Page ……… of ……….. 

FORMAT-A 

Amount 

(INR) (*) 

Amount 

(INR) (*) 

1. The information supplied should be the – Annual Turnover of the applicant and each 

member of a JV/Consortium. 

2. A brief note should be appended describing details as per audited results. 

3. Indicate Financial year if it is different from April to March. 

(*) To filled by Owner / Consultant 


Signature of Bidder 

Format – A & B


TENDER FOR 




FINANCIAL SITUATION 


Applicant’s Legal Name : Date : 

JV Partner’s Legal Name : Tender No.: 

Sl. 

No. 

Page ……… of ……….. 

Each bidder or member of a JV/Consortium must fill in this form 

FINANCIAL DATA FOR LAST AUDITED FINANCIAL YEAR 

Description 

1. Current Assets 

2. Current Liabilities 

3. Working Capital (1-2) 

4. Net Worth 

Owners funds (Paid up share 

capital and Free Reserves & 

Surplus) 

5. Profits before taxes 

6. Return on Equity (5/4) x 100 

Year 

Amount Exchange 

Rate (*) 

FORMAT-B 

Amount 

(INR) (*) 

1. Attached are copies of the audited balance sheets, including all related notes, and 

income statement for the last Audited Financial year, as indicated above, complying 

with the following conditions. 

• All such documents reflect the financial situation of the bidder or partner to 

JV/Consortium, and not sister or parent companies. 

• Historic financial statements must be audited by a certified accountant 

• Historic financial statements must be complete, including all notes to the financial 

statements 

• Historic financial statements must correspond to accounting periods already completed 

and audited (no statement for partial period shall be requested or accepted). 

(*) Applicable for foreign bidders to filled by Owner / Consultant 


Signature of Bidder 

Format – A & B


TENDER FOR 



Bid No. 05/51/23J8(PART-C)/GAIL/012B 


F-10A 

LINE PIPE MANUFACTURING MILL CAPABILITY CERTIFICATION 

(For Indian and Foreign bidders seeking qualification under 3.1.1.1(002), (003) & (005) of 

Ann-I under IFB/ ITB) 

This is to certify that M/s _________________________ reference plant’s 

production line ______________ has following manufacturing facilities for to 

manufacture _______________ (type of pipes) line pipes as per API 5L PSL2: 

Sl. 

No. 

Description 

A GENERAL INFORMATION 

1.0 Detailed description of Organization 

(Structure, number of Employees, 

facilities, equipments, etc,) concerning 

the following: 

1.1 Overall structure of Mill Organization 

1.2 Line Pipe production facilities and 

Capacity 

1.3 Testing Laboratories 

1.4 Quality Control/Quality Assurance 

(QA/QC): Type and location of the testing 

facility and stepby-step operations 

followed to achieve High 

quality product as per technical 

specifications. 

1.5 Non-Destructive testing facilities. 

1.6 Latest Audit certified documents 

performed during production by one of 

the International Inspection Agencies (as 

listed in IFB/ITB). 

2.0 Company shall have valid ISO 9001-2000 

Certificate and established Quality 

manual. 

B FABRICATION & INSPECTION 

PROCEDURES 

1.0 Give detailed description of the 

Fabrication Process to produce Line pipes 

as per technical documents 

1.1 Inspection of raw material (Plates/Coils) 

1.2 Forming of the plates/Coils 

1.3 De-coiling and Inspection 

1.4 Edge preparation 

1.5 Forming 

1.6 Welding 

1.7 Testing 


Inspection Agency 

Observation Remarks on 

Conformity

Sl. 

No. 


Description 

TENDER FOR 




2.0 Following shall be certified for Mill 

capability: 

2.1 Inspection of raw material (Plates/Coils) 

The machine shall have an inbuilt edge 

machining and Ultrasonic testing to test 

about 25mm width on both sides of the 

plate edges. 

2.2 Forming of the plates/ Coils 

During Forming and welding the machine 

should have tracking system to control 

welding groove and edge offsets. 

2.3 Welding 

Pipe mill shall have a continuous 

tack welding arrangement for better 

dimensional control, minimum 

repairs and higher production. 

Weld procedure qualified shall 

ensure testing of Impact at –20deg 

C for Weld and HAZ. 

2.4 Inspection & Testing 

Type and location of the testing facility 

and stepby-step operations followed to 

achieve High quality product as per 

technical specifications. 

List of all relevant NDT procedures 

(including Acceptance criteria) 

List of NDT qualified personnel with valid 

ASNT-1A certificates for level III and 

Level II operators. 

Ultrasonic machines being used should 

ensure tracking of weld seam during 

testing and representing defects on a 

printout. 

All instruments used shall have a valid 

Calibration certificates. 

Capability of mill and procedure followed 

to produce pipes within the technical 

specifications with special attention to 

clause number 7.2 of PTS 31042/D/02 

251 (Out of roundness limited to 5mm). 

HSAW mill shall ensure, prove and 

establish adequate methodology 

that the residual stresses are within 

acceptable limits (at least equal to 

cold expanded pipes). 





Conformity

Sl. 

No. 


Description 

TENDER FOR 




Capability of Mill and procedure followed 

to perform Impact test at –20°C as per 

technical document requirements. 

Work Instructions and approved 

procedures to be displayed at each and 

every work centres for ready reference. 

Various procedures established shall have 

approval from International Inspection 

agencies as listed in IFB/ ITB. 

Acceptable / Not Acceptable 

For & On behalf of 

Signature 

Name 

Designation 

Agency’s name & Seal 




Conformity 

Note: All pages of this report (Form-10) shall be signed and stamped by the agency 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\4-IFB - Line Pipes - BEC.doc


TENDER FOR 





F-13 

LINE PIPE COATING CAPABILITY CERTIFICATION 

(For Indian and Foreign bidders seeking qualification under clause 3.1.2 of Ann-I 

under IFB/ ITB) 

This is to certify that M/s ____________________ reference plant’s production 

line _________ has following coating facilities to carryout 3LPE external coating 

and internal Liquid epoxy coating of Bare line pipes as per Tender specifications: 

Sl. 

No. 

A BASE MATERIAL 

1.1 Identification 

Description 

1.2 Review of the manufacturer’s certificates 

(EN 10204 – 3.1B) 

1.3 Raw material testing (Batch wise) at 

vendors laboratory. 

2 SURFACE PREPARATION 

2.1 Preheating before abrasive blasting. 

2.2 Phosphoric acid treatment. 

2.3 PH of pipe surface after phosphoric acid 

wash. 

2.4 Salt contamination check before second 

abrasive blasting. 

2.5 Anchor pattern and degree of cleaned 

surface & degree of dust 

2.6 After second blasting. 

3 COATING 

3.1 Temperature of pipe before chromate 

application and visual application. 

3.2 Temperature of pipe before application. 

3.3 Temperature of PE, adhesive, Epoxy. 

3.4 Epoxy /Adhesive /PE film thickness. 

3.5 Total coating thickness. 

4 INSPECTION & TESTING 

4.1 Holiday testing. 

4.2 Cathodic disbondment 

4.3 Dimensional check (cut back on both 

ends of the pipe). 


GAIL or its authorized representative 


Conformity

Sl. 

No. 


Description 

4.4 Final visual inspection. 

5 

Documentation & final certification 

Acceptable / Not Acceptable 

For & On behalf of 

Signature 

Name 

Designation 

Agency’s name & Seal 

TENDER FOR 





GAIL or its authorized representative 


Conformity 

Note: All pages of this report (Form-13) shall be signed and stamped by the agency 


Sl. 

No. 

CHECK LIST FOR SUBMISSION OF DOCUMENTS REQUIRED FOR BID EVALUATION 

(BARE/ COATED LINE PIPES) 

BID DOCUMENT NO.: 05/51/23J8(PART-C)/GAIL/012B 

DOCUMENTS REQUIRED (TECHNICAL) 

BEC Clause No. 

(Ann-I to IFB - Vol-I) 

Documents Required Submitted 

(Bidder to indicate Yes/ No) 

FOR OPTION-I 

1 3.1.1.1 (002) Document supporting manufactured and supplied for petroleum 

pipeline project in last five years in one single order 

1 km of API 5L PSL-2 Line Pipe that are equal or higher in terms of 

diameter, grade as quoted with minimum wall thickness 6.4mm or 

higher. 

2 3.1.1.1 (003) In addition to above, document supporting supply of at least 10% of 

quoted quantity. Dia. 18" or higher, Grade X-65 or higher, W.T. 

6.4mm or higher. 

3 3.1.1.1 (004) Copy of valid API 5L Certificate. 

4 3.1.1.1 (005) a) For bidder whose mill have not been audited by GAIL/ MECON 

during last five years or have not supplied pipes to GAIL for high 

pressure of size 18" dia. or higher of grade X-70. Mill Qualification 

Certificate from International Inspection Agency as listed in the bid 

document. Format F-10A. 

b) For bidders who have supplied 18" dia. or higher of grade X-70 

pipes to GAIL shall furnish following. 

i) PO copy with details like pipe dia. manufacturing process, 

length, thickness, total ordered qty. and applicable standard. 

ii) Inspection release note of pipes under said order by 

designated inspection authority. 

5 3.1.1.1 (006) Document supporting that bidder shall procure steel plate/ coil from 

manufacturer stipulated in the bid document. Letter of commitment 

from at least two plate/ coil manufacturer. 

FOR OPTION-II 

1 3.1.2 (001) Document supporting that proposed Coating plant shall have 

coated under a single order during last five years at least 

- Length 16 km or higher 

- Pipe of dia. 16" or higher 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Check List for Bare-Coated Line Pipes-R2 

Page 1 of 4 

ANNEXURE-II 

Reference in Bid Document 

(Bidder to indicate place in the 

bid, such as Page No./ Vol. No. 

etc ) 

(Bidder's Signature & Seal)

Sl. 

No. 









2 3.1.2 (002) a) Coating Plant Qualification Certificate from International 

Inspection Agency as listed in the bid document. Format F-13. This 

is necessary for bidder whose mill has not been audited by GAIL/ 

MECON during last five years or have not supplied coated pipes to 

GAIL of size 18" dia. or higher. 

b) Bidders who have supplied 18" dia. or higher size coated pipes 

to GAIl shall furnish following 

i) PO copy, details like pipe dia., manufacturing process, length, 

thickness, total ordered quantity and applicable specification. 

ii) Inspection release note of coated pipes under said order by 


3 Clause no. 5.0 of 

Technical Input for 

3LPE Coating of 

Pipes 

Details of proposal material combination indicating specific grade of 

epoxy, adhesive and polyethylene manufactured by any of the 

approved material manufacturer and other documents as per 

clause no. 5.0 of Technical Input for 3-Layer Side Extruded 

Polyethylene coating of pipes. 

FOR OPTION-III 

1 3.1.1.1 (002) Document supporting manufactured and supplied for petroleum 

pipeline project in last five years in one single order 

1 km of API 5L PSL-2 Line Pipe that are equal or higher in terms of 

diameter, grade as quoted with minimum wall thickness 6.4mm or 

higher 

2 3.1.1.1 (003) In addition to above, document supporting supply of at least 10% of 

quoted quantity. Dia. 18" or higher, Grade X-65 or higher, W.T. 

6.4mm or higher. 

3 3.1.1.1 (004) Copy of valid API 5L Certificate. 


Page 2 of 4 

ANNEXURE-II 




etc ) 


Sl. 

No. 









4 3.1.1.1 (005) a) For bidder whose mill have not been audited by GAIL/ MECON 

during last five years or have not supplied pipes to GAIL for high 

pressure of size 18" dia. or higher of grade X-70. Mill Qualification 

Certificate from International Inspection Agency as listed in the bid 

document. Format F-10A. 

b) For bidders who have supplied 18" dia. or higher of grade X-70 

pipes to GAIL shall furnish following. 

i) PO copy with details like pipe dia. manufacturing process, 

length, thickness, total ordered qty. and applicable standard. 

ii) Inspection release note of pipes under said order by 


5 3.1.1.1 (006) Document supporting that bidder shall procure steel plate/ coil from 

manufacturer stipulated in the bid document. Letter of commitment 

from at least two plate/ coil manufacturer. 

6 3.1.2 (001) Document supporting that proposed Coating plant shall have 

coated under a single order during last five years at least 

- Length 16 km or higher 

- Pipe of dia. 16" or higher 

7 3.1.2 (002) a) Coating Plant Qualification Certificate from International 

Inspection Agency as listed in the bid document. Format F-13. This 

is necessary for bidder whose mill has not been audited by GAIL/ 

MECON during last five years or have not supplied coated pipes to 

GAIL of size 18" dia. or higher. 

b) Bidders who have supplied 18" dia. or higher size coated pipes 

to GAIl shall furnish following 

i) PO copy, details like pipe dia., manufacturing process, length, 

thickness, total ordered quantity and applicable specification. 

ii) Inspection release note of coated pipes under said order by 


8 Clause no. 5.0 of 

Technical Input for 

3LPE Coating of 

Pipes 


Details of proposal material combination indicating specific grade of 

epoxy, adhesive and polyethylene manufactured by any of the 

approved material manufacturer and other documents as per 

clause no. 5.0 of Technical Input for 3-Layer Side Extruded 

Polyethylene coating of pipes. 

Page 3 of 4 

ANNEXURE-II 




etc ) 


Sl. 

No. 









GENERAL i) Duly signed & stamped Vol-II of II of Bid Document No. 

05/51/23J8/GAIL/012. 

ii) Price schedule (Blank) duly signed and stamped 

iii) No deviation confirmation in bidder letter head (Format F-6) 

iv) Present commitment at proposed plant (Format F-9) 


Page 4 of 4 

ANNEXURE-II 




etc ) 



APPENDIX - A 

CUT-OUT SLIPS (4 NOS. )

CUT-OUT SLIP - 1 

DO NOT OPEN-THIS IS A QUOTATION 

CLIENT : GAIL (India) Limited 

(OUTER ENVELOPE) 

PROJECT : Natural Gas Pipeline Project for IPPs Industries in K.G. 

Basin (Looplines between K. Cheruvu J.P. to Kakinada 

J.P.) 

BID DOCUMENT NO : 05/51/23J8(Part-C)/GAIL/012B 

ITEM : Bare/Coated Line Pipe 

DUE DATE OF : 06.03. 2007 at 15:00 Hrs. 

SUBMISSION & TIME 

TO, 

FROM 

NAME: 

ADDRESS 

A. K. Sharma, DGM I/c (Contracts) 


15TH FLOOR, NORTH TOWER, 

SCOPE MINAR, 

LAXMI NAGAR, 

DELHI – 110092 

(To be pasted on the outer envelope containing “Priced”, “Unpriced” bids along with Bid 

security/ EMD) 


CUT-OUT SLIP – 2 



PART – I (UNPRICED BID) 



J.P.) 





TO, 

FROM 

NAME: 

ADDRESS 





SCOPE MINAR, 

LAXMI NAGAR, 

DELHI – 110092 

(To be pasted on the envelope containing “Unpriced” bid)

CUT-OUT SLIP - 3 



PART – II (PRICED BID) 



J.P.) 





TO, 

FROM 

NAME: 

ADDRESS 





SCOPE MINAR, 

LAXMI NAGAR, 

DELHI – 110092 

(To be pasted on the envelope containing “Priced” bid)

CUT-OUT SLIP – 4 

PART – III (BID SECURITY AND TENDER FEE) 





J.P.) 





TO, 

FROM 

NAME: 

ADDRESS 





SCOPE MINAR, 

LAXMI NAGAR, 

DELHI – 110092 

(To be pasted on the envelope containing “Bid Security”)

2.0 ACKNOWLEDGEMENT CUM CONSENT 

LETTER 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\5-Acknowledgement cum Consent Letter.doc

To, 


TENDER FOR 




ACKNOWLEDGEMENT CUM CONSENT LETTER 

M/s MECON LIMITED, 

15 th Floor, North Tower, Scope Minar, 

Laxmi Nagar District Centre, 

Delhi – 110 092 

Ph.No.: 91-11-22041201, 22041315, 22041468, 22041872 

Fax No.: 91-11-22041214, 22421310 

E-mail : mecondly@bol.net.in 

Kind Attn: Shri …………………………………, DGM I/C (Contracts) 

Sub: 

Dear Sir, 


We hereby acknowledge receipt of complete set of Bid Document alongwith enclosures for the 

subject works. We understand that documents received remain property of M/s GAIL (India) 

Limited and further undertake that the contents of the above bid documents shall be kept 

confidential and shall not be transferred. We indicate below our intentions with respect to the 

Invitation for Bid. 

a) We intend to bid as requested and furnish following details with respect to our quoting 

office :- 

I) POSTAL ADDRESS : ___________________________________________ 

___________________________________________ 

___________________________________________ 

II) TELEPHONE NO. : ___________________________________________ 

III) TELEFAX NO. : ___________________________________________ 

IV) E-MAIL : ___________________________________________ 

V) CONTACT PERSON : ___________________________________________ 

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b) Contact Person at Delhi, if any :- 

TENDER FOR 





I) POSTAL ADDRESS : ___________________________________________ 

___________________________________________ 

___________________________________________ 

II) TELEPHONE NO. : ___________________________________________ 

III) TELEFAX NO. : ___________________________________________ 

IV) E-MAIL : ___________________________________________ 

V) CONTACT PERSON : ___________________________________________ 

c) We are hereby returning the bid document as we are unable to bid for the reasons given 

below. 

Reasons for non-submission of Bid : 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

COMPANY’S NAME : ___________________________________________ 

SIGNATURE : ___________________________________________ 

NAME : ___________________________________________ 

DESIGNATION : ___________________________________________ 

DATE : ___________________________________________ 

Note: Bidder is requested to furnish the details mentioned at (a), (b) & (c) above as applicable, 

immediately after receipt of Bid Document. 

_____________________ 

(SIGNATURE OF BIDDER) 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\5-Acknowledgement cum Consent Letter.doc Page 2 of 2

3.0 SUBMISSION OF BID 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\6-Submission of Bid.doc


From: 

M/s 

To: 


Scope Minar 

15 th Floor, North Tower 

Laxmi Nagar, District Centre, 

Delhi – 110 092 

TENDER FOR 




SUBMISSION OF BID 


1. I/We hereby tender for execution of the WORKS of as per 

TENDER DOCUMENT within the Time Schedule of completion of work for jobs, as 

separately signed and accepted by me/us, at the Schedule of Rates quoted by me/us for 

the whole work in accordance with Notice/Letter Inviting Tender, General Conditions of 

Contract, Special Conditions of Contract, Schedule of Rates of Completion of Job, and 

other documents and papers, all as detailed in the Tender documents. 

2. It has been explained to me/us that the time stipulated for jobs and completion of WORKS 

in all respects and in different stages mentioned in the "Time Schedule" of completion of 

jobs and signed and accepted by me/us in the essence of the CONTRACT. I/We agree that 

in the case of failure on my/our part to strictly observe the Time of Completion mentioned 

for jobs or any of them and to the Final Completion of WORK in all respects according to 

the schedule set out in the said "Time Schedule" of completion of jobs. I/We shall pay 

compensation to the OWNER as per provisions and stipulations contained in General 

Conditions of Contract and I/We agree to recovery being made as specified therein. In 

exceptional circumstances, extension of time which shall always be in writing may, 

however, be granted by the Engineer-in-Charge at his entire discretion for some items of 

work, and I/We agree that such extension of time will not be counted for the extension of 

completion dates stipulated for job and for the Final Completion of WORK as stipulated in 

the said "Time Schedule" of completion of jobs. 

3. I/We agree to pay the Earnest Money and Security Deposit and accept the terms and 

conditions laid down in the memorandum below in this respect. 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\6-Submission of Bid.doc Page 1 of 3


TENDER FOR 




MEMORANDUM 


(a) General Description of Work ______________________________________ 

______________________________________ 

______________________________________ 

(b) Earnest Money Rs.____________________________________ 

(Rupees)_______________________________ 

______________________________________ 

The Earnest Money is payable in the manner set out 

in para 5 below. 

The Earnest Money, if the tender is accepted, will be 

adjusted against the Security Deposit, when Earnest 

Money is paid by demand draft only. 

(c) Security Deposit 10% of the CONTRACT amount which will be paid in 

the manner set out in the General Conditions of 

Contract. 

4. Should this tender be accepted, I/We hereby agree to abide by and fulfill all terms and 

conditions referred to above and in default thereof, to forefeit and pay to the OWNER or its 

successors or its authorised nominees such sums of money as are stipulated in conditions 

contained in General Tender Notice and other Tender Documents. 

5. I/We hereby pay the Earnest Money of Rs.____________________________________ 

(Rupees _______________________________________________________________) in 

Bank Demand Draft/Bank Guarantee No.,___________________________ issued by 

_____________________________ (name and office of the State Bank of India or any 

Nationalised Bank) in favour of GAIL (India) Limited, New Delhi. 

6. If I/We fail to commence the work specified in the Memorandum in Para (3) above, or 

I/We to deposit the amount of Security Deposit specified in the Memorandum in (3) 

above, I/We agree that the said OWNER or its successors without prejudice to any other 

right or remedy be at liberty to forefeit the said Earnest Money in full, otherwise the said 

Earnest Money shall be retained by OWNER towards the Security Deposit specified in (3) 



Witness: 

TENDER FOR 





above. The said OWNER shall also be at liberty to cancel the Notice of Acceptance of 

Tender if I/We fail to deposit the Security Deposit as aforesaid or to execute an Agreement 

or to start WORK as stipulated in the Tender Documents. 

I/We enclose herewith evidence of my/our experiment of execution of works of similar 

nature and magnitude carried out by me/us in the prescribed proforma and also the 

Income- Tax Clearance Certificates. 

Name in Block Letters: 

Address: 

dated the ________day of _______200.. 


Signature of Tenderer(s) with the 

seal of the Firm. 

Name and Designation of authorised person signing 

the tender on behalf of the Tenderer(s). 


D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\7-Instructions to Bidders .doc 

PART – B

1.0 INSTRUCTION TO BIDDERS 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\7-Instructions to Bidders .doc


INSTRUCTIONS TO BIDDERS 

Notes on the Instructions to Bidders 

It provides the information necessary for bidders to prepare responsive bids in accordance with 

the requirements of the Employer. It also gives information on bid submission, opening and 

evaluation and on the award of Contract. 

It includes provisions that are to be used unchanged. 

[Matters governing the performance of the Contractor under the Contract, payments under the 

Contract or matters affecting the risks, rights or obligations of the parties under the Contract 

are not included in this part but rather in General Conditions of Contract and Special Conditions 

of Contract.]


TABLE OF CONTENTS 

A. General 

1. Scope of Bid 

2. Eligible Bidders 

3. Bid Evaluation Criteria 

4. Bids from Consortium/ Joint Venture 

5. One Bid per Bidder 

6. Cost of Bidding 

7. Site Visit 

B. Bidding Documents 

8. Content of Bidding Documents 

9. Clarification of Bidding Documents 

10. Amendment of Bidding Documents 

C. Preparation of Bids 

11. Language of Bid 

12. Documents Comprising the Bid 

13. Bid Prices 

14. Bid Currencies 

15. Bid Validity 

16. Bid Security 

17. Pre-Bid Meeting 

18. Format and Signing of Bid 

19. Zero Deviation 

20. E-Payment 

21. Agent/ Consultant/ Representative/ Retainer/ Associate 

D. Submission of Bids 

22. Sealing and Marking of Bids 

23. Deadline for Submission of Bids 

24. Late Bids 

25. Modification and Withdrawal of Bids 

E. Bid Opening and Evaluation 

26. Bid Opening 

27. Process to be Confidential 

28. Contacting the Employer 

29. Examination of bids and Determination of Responsiveness 

30. Correction of Errors 

31. Conversion to Single Currency for Comparison of Bids 

32. Evaluation and Comparison of Bids 

33. Preference for Domestic bidders 

34. Purchase Preference

F. Award of Contract 

36. Award 

37. Employer’s Right to Accept any bid and to Reject any or all Bids 

38. Notification of Award 

39. Signing of Agreement 

40. Contract Performance Security 

41. Corrupt or Fraudulent Practices 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\7-Instructions to Bidders .doc


A. GENERAL 


TENDER FOR 




INSTRUCTIONS TO BIDDERS 


1.1 The Employer, as defined in the General Conditions of Contract, hereinafter “the 

Employer”, wishes to receive bids for the Work as described in Part-D : Special 

Conditions of Contract, hereinafter referred to as “the Works,” [Insert brief summary of 

the works] 

1.2 The successful bidder will be expected to complete the Works within the period stated in 

Special Conditions of Contract. 

1.3 Throughout these bidding documents, the terms “bid” and “tender” and their derivatives 

(“bidder/ tenderer”, “bid tendered”, “bidding/ tendering”, etc.) are synonymous, and day 

means calendar day. Singular also means plural. 

2. Eligible Bidders 

2.1 Bidders shall, as part of their bid, submit duly executed power of attorney authorizing 

the signatory of the bid to bind the bidder. 

2.2 This invitation for bid is open to any bidder including members of a Consortium or Joint 

Venture. 

2.3 A bidder shall not be affiliated with a firm or entity 

(i) that has provided consulting services related-to the Works to the Employer 

during the preparatory stages of the Works or of the Project of which the Works 

form a part, or 

(ii) that has been hired (or is proposed to be hired) by the Employer as Engineer/ 

Consultant for the contract. 

2.4 The bidder shall not be under a declaration of ineligibility by Employer for corrupt or 

fraudulent practices as defined in ITB. 

2.5 The bidder or any member of the Consortium/Joint Venture is not put on holiday by 

GAIL or black listed by any Government Department Public Sector. 

3. Bid Evaluation Criteria 

3.1 Experience Criteria – As per Annexure – I to IFB. 

3.2 Financial Criteria – As per Annexure – I to IFB. 

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TENDER FOR 





3.3 After successful meeting of Experience Criteria & Financial Criteria, the offer will be 

further evaluated. 

3.4 Equipment Deployment Criteria - VOID 

3.5 Manpower Organization - VOID 

3.6 Bidders shall also submit proposals of work methods and schedule in sufficient detail to 

demonstrate the adequacy of the bidders’ proposals to meet the technical specifications 

and the completion time referred to in Sub-Clause 1.2 above 

4. Bids from Joint Venture/ Consortium 

[Applicable in case of International Competitive Bidding] 

4.1 Bids are also acceptable from Joint Venture / Consortium if specifically permitted in a 

Tender Document considering the requirement of the work subject to following :- 

(a) the partner incharge/ the leader of the Joint Venture/ Consortium respectively 

should satisfy the requirement as per Bid Evaluation Criteria mentioned at Clause 

No. 3 above; 

(b) the partner in charge /the leader of the Joint Venture/ Consortium respectively 

should confirm unconditional acceptance of full responsibility of executing the 

‘Scope of work’ of this tender. This confirmation should be submitted along with 

the techno-commercial bid; 

(c) the bid security, the bid, and in case of a successful bid, the Agreement, shall be 

signed so as to be legally binding on all partners of Joint Venture/ members of 

Consortium; 

(d) one of the partners / members shall be nominated as being in charge / leader of 

the Joint, Venture/ Consortium respectively and this authorization shall be 

evidenced by submitting a power of attorney signed by legally authorized 

signatories of all the partners/members; 

(e) the partner in charge / leader shall be authorized to incur liabilities and receive 

instructions for and on behalf of any and all partners of the Joint Venture/ 

members of the Consortium and the entire execution of the Contract, including 

payment, shall be done exclusively with the partner in charge/ leader of 

Consortium; 

(f) all partners of the Joint Venture/ members of Consortium shall be liable jointly 

and severally for the execution of the Contract in accordance with the contract 

terms, and a statement to this effect shall be included in the authorization 

mentioned under (d) above, as well as in the bid and in the Agreement (in case 

of a successful bid); and 

(g) a copy of the Joint Venture / Consortium Agreement entered into by all partners/ 

members shall be submitted with the bid. Alternatively, a Letter of Intent to 

execute a Joint Venture / Consortium Agreement in the event of a successful bid 

shall be signed by all partners/members and submitted with the bid, together 

with a copy of the proposed agreement. 




TENDER FOR 





5.1 A firm shall submit only one bid in the same bidding process, either individually as a 

bidder or as a partner in a joint venture or as a member of consortium. No firm can be 

a subcontractor while submitting a bid individually or as a partner of a joint venture or 

as a member of a consortium in the same bidding process. A firm, if acting in the 

capacity of subcontractor in any bid, may participate in more than one bid, but only in 

that capacity. A bidder who submits or participates in more than one bid will cause all 

the proposals in which the bidder has participated to be disqualified. 


6.1 The bidder shall bear all costs associated with the preparation and submission of the 

bid, and GAIL will in no case, be responsible or liable for these costs, regardless of the 

conduct or outcome of the bidding process. 

7. Site Visit 

7.1 The bidder is advised to visit and examine the Site of Works and its surroundings and 

obtain for itself on its own responsibility all information that may be necessary for 

preparing the bid and entering into a contract for construction of the Works. The costs 

of visiting the Site shall be at the bidder’s own expense. 

7.2 The bidder and any of its personnel or agents will be granted permission by the 

Employer to enter upon its premises and lands for the purpose of such visit, but only 

upon the express condition that the bidder, its personnel, and agents will release and 

indemnify the Employer and its personnel and agents from and against all liability in 

respect thereof, and will be responsible for death or personal injury, loss of or damage 

to property, and any other loss, damage, costs, and expenses incurred as a result of the 

inspection. 

7.3 The Employer may conduct a Site visit concurrently with the pre-bid meeting. 

B. BIDDING DOCUMENTS 

8. Content of Bidding Document 

8.1 The Bidding Documents/ Tender Documents are those stated below and should be read 

in conjunction with any addenda issued in accordance with ITB Clause 10. 

PART-A 1) Invitation for Bid (IFB) 

2) Acknowledge-cum-consent Letter 

3) Submission of Bid 



PART-B 1) Instruction to Bidder (ITB) 

2) Annexure to ITB 

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• Annexure-I : Evaluation & Comparison of Bids 

• Annexure-II : List of Formats 

• Annexure-III : Commercial Questionnaire 

• Annexure-V : Technical Questionnaire 

PART-C 1) General Conditions of Contract (GCC) 

2) Annexure to GCC 


• Annexure-I : Proforma of Indemnity Bond for supply of 

Materials by Employer 

• Annexure-II : Proforma for Contract Agreement 

PART-D 1) Special Conditions of Contract (SCC) 

2) Annexure to SCC 

• Annexure-1 : Bonus Clause 

3) Job Specification 

• Appendix-I 

PART-E 1) Schedule of Rate (SOR) 

8.2 The bidder is expected to examine all instructions, forms, terms and specifications in the 

bidding documents. The Invitation for Bids (IFB) together with all its attachments 

thereto, shall be considered to be read, understood and accepted by the bidders. Failure 

to furnish all information required by the bidding documents or submission of a bid not 

substantially responsive to the bidding documents in every respect will be at bidder’s 

risk and may result in the rejection of his bid. 


9.1 A prospective bidder requiring any clarification(s) of the Bidding Documents may notify 

MECON in writing or by fax or e-mail at MECON’s mailing address indicated in the 

Invitation for Bids not later than 15 days prior to the deadline. MECON may, if deem 

appropriate, respond in writing to the request for clarification. Written copies of 

MECON’s response (including an explanation of the query but without identifying the 



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source of the query) will be sent to all prospective bidders who have received the 

bidding documents. Any Clarification or information required-by the bidder but same not 

received by the Employer, fifteen days prior to the bid due date, the same is liable to be 

considered as no clarification/information required. 

[In case there is provision of pre-bid conference, all questions/ queries should be 

referred to MECON on or before scheduled date of pre-bid conference. The question/ 

queries received by MECON prior to pre-bid conference will be addressed in the pre-bid 

conference & no separate communication will be sent to bidders] 


10.1 At any time prior to the bid due date, GAIL/ MECON may, for any reason, whether at its 

own initiative or in response to a clarification requested by a prospective bidder, modify 

the bidding documents. 

10.2 The amendment will be notified in writing or by fax or e-mail to all prospective bidders, 

at the address, fax numbers, e-mail id provided by the bidder, who have received the 

Bidding Documents and will be binding on them. 

10.3 In order to afford prospective bidders, reasonable time in which to take the amendment 

into account in preparing their bids, GAIL/ MECON may, at its discretion, extend the bid 

due date. 

C. PREPARATION OF BIDS 


11.1 The bid prepared by the bidder and all-correspondence/drawings and documents 

relating to the bid exchanged by bidder and GAIL/ MECON shall be written in English 

language. Any printed literature furnished by the bidder may be written in another 

language so long as accompanied by an ENGLISH translation duly authenticated by the 

chamber of commerce of Bidders country, in which case, for the purpose of 

interpretation of the bid, the ENGLISH translation shall govern. Metric measurement 

system shall be applied. 

12. Documents Comprising the Bid 

12.1 The bid prepared by the bidder shall comprise the following components: 

12.2 Envelope -1: Super scribing Techno-Commercial Un-priced Bids (PART-A) 

Part-A: Techno-commercial un-priced Bid (to be furnished in one original and four 

copies) and shall contain the following: 



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i) Covering Letter as per format “Submission of Tender” / “Submission of Bid” 

enclosed with Part-A of Vol-I of II. 

ii) Bidder’s general/ details information as per format F-1. 

iii) Power of Attorney in favour of person(s) signing the bid that such person (s) 

is/are authorized to sign the bid on behalf of the bidder and any consequence 

resulting due to such signing shall be binding on the bidder. 

iv) Specific experience, annual turnover and equipment deployment details as called 

for in qualifying requirements. All supporting documents submitted by foreign 

bidder, as evidence of meeting experience criteria, shall be certified true copies 

duly signed, dated and stamped by an official authorized for this purpose in 

Indian Embassy / High Commission in Bidder’s Country. 

[Applicable only in case of Open Competitive bidding]. 

v) A Bid Form as per format F-2. 

vi) Copies of documents as required in list of enclosure. 

vii) A confirmation that prices in requisite formats, strictly complying with the 

requirement, with prices blanked out, are in envelope number II “Price Bid”. 

viii) Documents establishing the eligibility and conformity to the Bid Documents of all 

Goods and services, which the bidder proposes to supply under the award. Such 

document may be, literature, drawing or data and shall also include (a) the 

detailed description of the Good’s essential technical and performance 

characteristics; (b) a clause by clause commentary on Employer’s technical 

specification and demonstrating supplies substantial responsiveness to the 

specifications. 

ix) Copy of Bid security in accordance with Clause III of IFB & Clause 16 of ITB to 

be furnished either in the form of Cashier’s / Banker’s cheque / Bank Draft 

payable to GAIL at New Delhi/ Bank Guarantee as per format F-4 / Letter of 

Credit as per format F-4A. 

x) Letter of authority in favour of any one or two of bidder’s executives having 

authority to attend the un-priced and price bid opening on specified dates and 

venue as per format F-5. [Applicable only in case of open domestic bidding or 

limited tendering where value of work is more than Rs. 2 Cr.] 

xi) Confirmation of no deviation as per Format F-6. 

xii) Present commitments strictly as per form F-9. 

xiii) Indian Bidders are required to submit Employees Provident Fund registration 

certificate. 



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xiv) Bidder’s declaration that they are not under liquidation, court receivership or 

similar proceedings. 

xv) Any other information/details required as per bid document. 

Note: All pages of the bid to be signed and sealed by authorized person of the bidder. 

12.3 Envelope-II : Super scribing “Price Bid- Not to Open with Techno-Commercial Un-priced 

Bid” - PART-B 

Part-B Price Bid 

i) Part-B shall contain one original and four copies of Schedule of Rates duly filled 

in, in separate sealed envelopes duly signed and stamped on each page super 

scribing on the sealed envelope “Price — Do Not Open”. In case of any 

correction, the bidders shall put his signature and his stamp. 

ii) Any rate quoted for compensation of extended stay charge shall also be signed & 

stamped and kept in price bid. 

12.4 Envelope-III : Super scribing “Bid Security” - PART-C 

Part-C shall contain original Bid security in separate sealed envelope. 

13. BID PRICE 

13.1 The bidder shall indicate on the appropriate format for “Schedule of Rates”/ 

“Price Schedule” enclosed as part of Bidding Document. If quoted in separate 

typed sheets and any variation in items description, unit or quantity is noticed, 

the bid is liable to be rejected. 

13.2 Bid for part quantities of individual items(s) shall be rejected. 

13.3 Employer/ consultant reserves the right to award the contract to more than one 

bidder, based on technical & financial qualification criteria and overall minimum 

cost to Employer. 

13.4 Prices quoted by the bidder, shall remain firm, fixed and valid until completion of 

the contract performance and will not be subject to any variation, except 

statutory variation pursuant to relevant provisions in clause 13.8.3.2.1, 

13.8.3.2.3, 13.9.3.2.1, 13.9.3.4.2 and 13.9.3.4.4 of ITB. 

13.5 The bidder shall quote the prices for each item quoted in the Schedule of rates 

after careful analysis of cost involved for the performance of complete work 

considering all parts of the bidding documents. In case, any activity though 

specifically not covered but is required to complete the work as per scope of 

work, scope of supply, specifications, standards, drawings, GCC, SCC or any 



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other part of Bidding document, the prices quoted shall deemed to be inclusive 

of cost incurred for such activity. 

13.6 The Employer is entitled to Project rate of Custom duty for imports made for K. 

Cheruvu J.P. to kakinda J.P. pipeline project. The present rate of Project rate of 

Custom duty is @ 28.51104% (10 basic duty + 16% CVD + 2% Education Cess 

as applicable) with 4 % special CVD in addition. 

The bidder while quoting the price may consider the Project rate of Custom duty. 

However in case bidder is allowed, vide any other notification, a lower rate of 

Custom duty than project rate of Customs duty for import of raw materials and 

components viz. plates/colls, welding material, coating material, bare pipes, 

coated pipes, etc., in such case bidder shall quote accordingly. The Bidder (s) 

must indicate quantity, CIF value & rate of Custom duty considered in the SOR. 

The Employer’s responsibility is only limited to furnishing of i) the necessary 

Sponsoring Authority letter to foreign bidder and / or ii) a certificate to obtain 

Essentiality Certificate form their Administrative Ministry for availing the Project 

rate of Custom duty to Indian bidder. 

13.7 The Employer will not issue any concessional form for CST/LST. 

13.8 Indian Bidder shall indicate the following as per SOR:- 

13.8.1 Option – I : Supply of Bare Pipes 

13.8.1.1 Ex-works unit and total price of bare pipes including packing and forwarding, 

applicable taxes and duties etc. (such price to include all costs as well as duties 

and taxes paid or payable on components and raw materials incorporated or to 

be incorporated in the goods, inspection testing and loading on Coating 

Contractor’s carrier etc.) 

13.8.1.2 The bidder shall indicate the following separately:- 

13.8.1.2.1 CIF value of import for raw material and components incorporated or to be 

incorporated in the goods. The bidder shall provide description of such material, 

quantity, rate, value etc. 

13.8.1.2.2 Custom duty (rate) considered on above CIF value of import for raw material and 

components as per clause 13.8.1.2.1. The statutory variation in Customs duty, 

on CIF value indicated as per clause 13.8.1.2.1 above, within the contractual 

delivery period shall be to Employer’s account against submission of the 

documentary evidence. However, any increase in the rate of Customs duty 

beyond the contractual completion period shall be to bidder’s account. Any 

decrease in the rate of Customs duty shall be passed on to the Employer. 



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13.8.1.2.3 Ex-works price of finished goods including packing and forwarding charges but 

excluding applicable taxes and duties. 

13.8.1.2.4 Excise Duty and CST/ VAT (rates)/ Sales Tax without any Concessional Form, 

which will be payable on the finished goods, if this contract is awarded. The 

statutory variation in Excise Duty and Sales Tax/VAT on finished goods, within 

the contractual delivery period shall be to Employer’s account against submission 

of the documentary evidence. However, any increase in the rate of these taxes 

and duties beyond the contractual completion period shall be to bidder’s account. 

Any decrease in the rate of taxes & duties shall be passed on to the Employer. 

13.8.2 Option – II : Coating of Bare Pipes 

13.8.2.1 Ex-Dump Yard Oduru price of coated pipes including, applicable taxes and duties 

etc. (such price to include transportation of bare pipes from pipes mill(s)/ 

Mumbai or Kandla Port to coating facility, external coating of bare pipes (as 

applicable) including all costs as well as duties and taxes paid or payable on 

components and raw materials incorporated in the goods, despatch of coated 

pipes to warehouse (Dump Yard) at Oduru, hiring / owning of warehouse, transit 

& storage insurance, storage and preservation of coated pipes at warehouse for 

2 months beyond contractual completion period or date of last coated pipe 

received at warehouse whichever is later and loading on pipeline laying 

contractor’s carrier etc.). However , after this free period of two months, Coating 

Contractor will be entitled for payment of Rs. 2,000/- per day. 



incorporated in the goods. The bidder shall provide description of such material, 



components as per clause 13.8.2.2.1. The statutory variation in Customs duty, 

on CIF value indicated as per clause 13.8.2.2.1 above, within the contractual 

delivery period shall be to Employer’s account against submission of the 

documentary evidence. However, any increase in the rate of Customs duty 





13.8.2.2.4 Excise Duty and CST/ VAT (rates)/ Sales Tax without any Concessional Form, 


statutory variation in Excise Duty and Sales Tax/VAT on finished goods, within 




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13.8.3.2.5 Inland transportation charges from dispatch point to designated warehouse including loading, 

unloading of pipes at respective places. The prices should be inclusive of all taxes, duties, levies 

etc. and storage and preservation of coated pipes at warehouse upto 2 months beyond the 

contractual completion period or date of last coated pipe received at warehouse whichever is later. 

(including loading on erection contractor’s carrier). 

13.8.3 Option – III : Supply of Coated Pipes 

13.8.3.1 Ex-Dump Yard Oduru price of coated pipes including, packing and forwarding, 

applicable taxes and duties etc. (such price to include fabrication/ manufacturing 

of line pipes including all costs as well as duties and taxes paid or payable on 

components and raw material incorporated or to be incorporated in the goods, 

packing & forwarding of line pipes to coating facility, external coating of pipes 

(as applicable), despatch of coated pipes to respective warehouse, hiring/owning 

of warehouse, storage and preservation of coated pipes at warehouse for 

contractual completion period or date of last coated pipe received at warehouse 

whichever is later and loading on pipeline laying contractor’s carrier etc.). 

However, after this free period of two months, coated pipe supplier will be 

entitled for payment of Rs. 2,000/- per day. 



incorporated in the goods. The bidders shall provide description of such material, 



components. The statutory variation in Customs duty, on CIF value indicated as 

per clause 13.8.3.2.1 above, within the contractual delivery period shall be to 

Employer’s account against submission of the documentary evidence. However, 

any increase in the rate of Customs duty beyond the contractual completion 

period shall be to bidder’s account. Any decrease in the rate of Customs duty 

shall be passed on to the Employer. 



13.8.3.2.4 Excise Duty and CST/ VAT (rates)/Sales Tax without any Concessional Form 


statutory variation in Excise Duty and Sales Tax /VAT on finished goods, within 





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13.8.3.2.5 Inland transportation charges from dispatch point to designated warehouse 

including loading, unloading of pipes at respective places. The prices should be 

inclusive of all taxes, duties, levies etc. and storage and preservation of coated 

pipes at Warehouse upto 2 months beyond the contractual completion period or 

date of last coated pipe received at warehouse whichever is later. (including 

loading on erection contractor’s carrier). 

13.9 Foreign Bidders shall indicated the following as per SOR:- 

13.9.1 Option – I : Supply of Bare Pipes 

13.9.1.1 Bidder shall submit their unit & total prices on FOB – port of shipment, CFR – 

Mumbai / Kandala Port and CIF- Mumbai/ Kandala Port basis as detailed out in 

the schedule of rates (SOR) 

13.9.1.2 The request for different price basis is merely to facilitate the comparison of bids 

and will not in any way limit Owner’s right to contract on different terms. 

13.9.1.3 Owner reserves the right to place the order on either of the above specified price 

basis. 

13.9.1.4 Prices quoted shall be inclusive of all applicable taxes, packing & forwarding etc. 

applicable upto FOB – Port of shipment. 

13.9.2 Option – II : Coating of Bare Pipes 

Same as applicable for Indian bidder opting for Option – II clause no. 13.8.2 

13.9.2 Option – III : Supply of Coated Pipes 

A) If the Coated Pipes are Imported 

13.9.3.1 Ex-warehouse Oduru Unit & Total price of coated pipes including packing and 

forwarding, applicable taxes and duties etc. (such price to all costs as well as 

duties and taxes paid or payable on components and raw materials incorporated 

or to be incorporated in the goods, packing & forwarding of line pipes to coating 

facility, external coating of pipes, despatch of coated pipes to port of entry in 

India, payment of applicable import Customs duty, port clearance and other 

charges at port of entry, Custom clearance & forwarding, despatch of coated 

pipes to warehouse at Oduru, hiring/owning of warehouse, storage and 

preservation of coated pipes at warehouse for 2 months beyond contractual 

completion period or date of last coated pipe received at warehouse whichever is 

later and loading on pipeline laying contractor’s carrier etc.) However, after this 

free period of two months, Coated Pipe supplier will be entitled for payment of 



Rs. 2,000/- per day. 

TENDER FOR 






13.9.3.2.1 CIF value of import to coated pipes at port of descharge (Mumbai/ Kandla Port) 

in India. 

13.9.3.2.2 Applicable Custom duty (rates) considered by the bidder on CIF value as 

indicated at 13.9.3.2.1 above. Any statutory variation in Custom duty(rates), on 

CIF value indicated above within the contractual delivery period shall be to 

Employer’s account against submission of the documentary evidence. However, 

any increase in the rate of Customs duty beyond the contractual completion 

period shall be to bidder’s account. Any decrease in the rate of Customs duty 

shall be passed on to the Employer. 

13.9.3.2.3 Inland transportation charges from dispatch point to designated warehouse at 

Oduru including loading, unloading of pipes. The prices shall be inclusive of all 

taxes, duties, levies etc. and storage and preservation of coated pipes at 

warehouse upto 2 months beyond the contractual completion period or date of 

last coated pipe received at warehouse whichever is later. (including loading on 

erection contractor’s carrier). 

B) If the bidder opts to coat the bare pipe in India 

13.9.3.3 Ex-warehouse unit & total price of coated pipes including packing and 

forwarding, applicable taxes and duties etc. (such price to include fabrication/ 

manufacturing of line pipes including all costs as well as duties and taxes paid or 

payable on components and raw materials incorporated or to be incorporated in 

the goods, despatch of bare pipes to port of entry in India, payment of 

applicable import Customs duty, port clearance and other charges at port of 

entry , despatch of bare pipes to coating facility, external coating of pipes, 

despatch of coated pipes to respective warehouse, hiring/owning of warehouse, 

storage and preservation of coated pipes at warehouse for contractual 

completion period or date of last coated pipe received at warehouse whichever is 

later and loading on pipeline laying contractor’s carrier etc.) However, after this 

free period of two months, beyond contractual period, Coated Pipe supplier will 

be entitled for payment of Rs. 2,000/- per day till actual completion of contract. 


13.9.3.4.1 CIF value of import : The bidder shall provide description of such material, 


13.9.3.4.2 Custom duty considered on the above CIF value of import. The statutory 

variation in Customs duty, on CIF value of import as indicated at 13.9.3.4, within 




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of the documentary evidence. However, any increase in the rate of Customs duty 



13.9.3.4.3 Ex-works price of finished goods including packing & forwarding charges but 


13.9.3.4.4 Excise Duty and CST/Sales Tax/VAT (rates) which will be payable on the finished 

goods, if this contract is awarded. The statutory variation in Excise Duty and 

Sales Tax/VAT on finished goods, within the contractual delivery period shall be 

to Employer’s account against submission of the documentary evidence. 

However, any increase in the rate of these taxes and duties beyond the 

contractual completion period shall be to bidder’s account. Any decrease in the 

rate of taxes & duties shall be passed on to the Employer. 

13.9.3.4.5 Inland transportation charges from dispatch point to designated warehouse 

including loading, unloading of pipes at respective places. The prices shall be 

inclusive of all taxes, duties, levies etc. and storage and preservation of coated 

pipes at warehouse upto 2 months beyond the contractual completion period or 

date of last coated pipe received at warehouse whichever is later. (including 

loading on erection contractor’s carrier). 

13.10 The Bidder shall quote the prices both in figures as well as in words. There 

should not be any discrepancies between the price indicated in figures and the 

price indicated in words. In case of any discrepancy, the price indicated in words 

shall prevail over the price indicated in figure. 

13.11 Alternative bids shall not be considered. 

13.12 Discount, if any, must be indicated in the space provided in Schedule of Rates 

only. Conditional discount, if offered, shall not be considered for evaluation. 

14. Bid Currencies [Applicable for International Competitive Bidding] 

14.1 Indian Bidders may submit bid in any currency (including Indian Rupees) and receive 

payment in such currencies on par with foreign bidders. 

14.2 Currency once quoted will not be allowed to be changed. EMPLOYER shall not be 

compensating for any exchange rate fluctuation. 

14.3 Foreign Bidders may submit bid in the home currency of bidder’s country or in US 

Dollars / EURO or any other currency. 

14.4 A bidder expecting to incur a portion of his expenditure in the performance of contract 

in more than one currency (limited to maximum two currencies) and wishing to be paid 

accordingly shall so indicate in the bid. In such a case, the bid shall be expressed in 



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different currencies with the respective amounts in each currency together making up 

the total price. 

[Applicable for Domestic bidding] 

Bidders shall submit bid in Indian Rupees only. 

15. Bid Validity 

15.1 Bids shall be kept valid for 4 months from the final bid due date. A bid valid for a shorter 

period may be rejected by GAIL as non-responsive. 

15.2 In exceptional circumstances, prior to expiry of the original bid validity period, the 

Employer may request that the bidders extend the period of validity for a specified 

additional period. The request and the responses thereto shall be made in writing or by 

fax / e-mail. A bidder may refuse the request without forfeiture of his bid security, A 

bidder agreeing to the request will not be required or permitted to modify his bid, but 

will be required to extend the validity of its bid security for the period of the extension 

and in accordance with Clause 16 in all respects. 

16. Bid Security 

16.1 Pursuant to Clause-12, the bidder shall finnish, as part of his bid, bid security in the 

amount specified in the Invitation for Bids (IFB). 

16.2 The bid security is required to protect GAIL against the risk of bidder’s conduct which 

would warrant the security’s forfeiture, pursuant to Clause-16.7 

16.3 The bid security in US Dollars for bidders quoting in foreign currency or in Indian Rupees 

for bidders quoting in Indian currency shall be in the form of a Bank Draft/ Banker’s 

Cheque/ Bank Guarantee or Letter of Credit. 

[In case bid is from a consortium where the leader of Consortium is a foreign en thy 

then such consortium bid will be treated as bid from foreign bidder] 

GAIL shall not be liable to pay any bank charges, commission or interest on the amount 

of Bid Security. 

In case Bid Security is in the form of a Bank Guarantee or irrevocable Letter of Credit, 

the same shall be from any Indian scheduled bank or a branch of an International bank 

situated in India and registered with Reserve bank of India as scheduled foreign bank in 

case of Indian bidder and from any reputed International bank or Indian scheduled bank 

in case of foreign bidder. However, in case of Bank Guarantee from banks other than 

the Nationalised Indian banks, the bank must be commercial bank having net worth in 

excess of Rs 100 crores and a declaration to this effect should be made by such 

commercial bank either in the Bank Guarantee itself or separately on its letterhead. Bid 



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Security shall be valid for 6 months from the final date of submission. 


16.4 Any bid not secured in accordance with Clause-16.1 and 16.3 may be rejected by GAIL 

as non-responsive. 

16.5 Unsuccessful bidder’s bid security will be discharged/ returned as promptly as possible, 

but not later than 30 days after the expiration of the period of bid validity prescribed by 

GAIL, pursuant to ITB Clause-15. 

16.6 The successful bidder’s bid security will be discharged upon the bidder’s accepting the 

award & signing the Agreement, pursuant to Clause-39 and furnishing the Contract 

Performance Security pursuant to Clause-40. 

16.7 The bid security may be forfeited : 

a) If a bidder withdraws his bid during the period of bid validity. 

b) in the case of a successful bidder, if the bidder fails: 

i) to accept the Notification of Award/Fax of Intent (FOI) or 

ii) to furnish Contract Performance Security in accordance with Clause-40. 

iii) to accept arithmetical corrections, 

16.8 Bid Security should be in favour of GAIL (India) Limited and addressed to GAIL. In case 

Bid Security is in the form of Bank Guarantee or Letter of Credit, the same must indicate 

the Bid Document and the work for which the bidder is quoting. This is essential to have 

proper co-relation at a later date. The Bid Security shall be in the form provided at F-4 

(Bank Guarantee) or F-4A (Letter of Credit). 

16.9 For Indian Bidders : Indian Government Departments/ Public Sector Undertakings and 

firms registered with NSIC are exempted from furnishing bid security provided they are 

registered for the quoted items upto the monetary limit they intend to quote and subject 

to their enclosing with their bid a copy of the latest and current Registration Certificate. 

17. Pre-Bid Meeting 

(Applicable only for Open competitive Bidding] 

17.1 The bidder(s) or his designated representative, who have purchased bid document, are 

invited to attend a pre-bid meeting which will take place (to be indicated later on). 

17.2 The purpose of the meeting will be to clarify issues and to answer questions on any 

matter that may be raised at that stage. 

17.3 Text of the questions raised and the responses given, together with any responses 

prepared after the meeting, will be transmitted without delay (without identifying the 

sources of the question) to all purchasers of the bidding documents. Any modification of 

the bidding documents listed in ITB Sub-Clause 8.1 that may become necessary as a 

result of the pre-bid meeting shall be made by the Employer exclusively through the 



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issue of an Addendum pursuant to Clause 10 and not through the minutes of the pre-bid 

meeting. 

17.4 Non-attendance of the pre-bid meeting will not be a cause for disqualification of a 

bidder. 

18. Format and Signing of Bid 

18.1 The original and all copies of the bid shall be typed or written in indelible ink (in the case 

of copies, photocopies are also acceptable) and shall be signed by a person or persons 

duly authorized to sign on behalf of the bidder. The name and position held by each 

person signing, must be typed or printed below the signature. All pages of the bid 

except for unamended printed literature where entries or amendments have been made 

shall be initialed by the person or persons signing the bid. 

18.2 The bid shall contain no alterations, omissions, or additions, unless such corrections are 

initialed by the person or persons signing the bid. 

19. Zero Deviation 

19.1 Bidders to note that this is a zero deviation tender, MECON/GAIL will appreciate 

submission of offer based on the terms and conditions in the enclosed General 

Conditions of Contract (GCC-Goods), Special Conditions of Contract (SCC), Instructions 

to Bidders (ITB), Scope of supply, technical specifications etc, to avoid wastage of time 

and money in seeking clarifications on technical/ commercial aspects of the offer. Bidder 

may note that no technical and commercial clarifications will be sought for after the 

receipt of the bids. Bids with any deviation to the bid conditions shall be liable for 

rejection. 

20. E-Payment 

20.1 GAIL (India) Limited has initiated payments to suppliers and contractors electronically 

and to facilitate the payments electronically, the bidder should have an account with 

HDFC Bank or ICICI Bank or State Bank of India so that the payment through e-banking 

be made to the bidder, in case work is awarded to him. Further, the bidder should give 

the details of his bank account in any one of the above banks to facilitate payment 

through e-banking in case of award of work on him. 

21. Agent/ consultant/ Representative/ Retainer/ Associate 

[Applicable for ICR tenders only] 

21.1 GAIL would prefer to deal directly with the manufacturers/ principals abroad but in case 

they decide to have their Agent/ Consultant/ Representative/ Retainer/ Associate in 

India and pay commission for their services against a particular tender it should be bare 

minimum and the principal would have to certify that such a commission is 



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commensurate with the services rendered to them by such an Agent/ Consultant/ 

Representative/ Retainer/ Associate in India. The principal will also have to broadly list 

out services to be rendered by the Agent/ Consultant/ Representative/ Retainer/ 

Associate in India. 

21.2 In the event bidder is having as Agent/ Consultant/ Representative/ Retainer/ Associate/ 

servicing facilities in India (who is not an employee of the bidder) the bidder should 

indicate in their offer the name of such an Agent/ Consultant/ Representative / Retainer/ 

Associate, they have for services in India. The bidder must also indicate clearly the 

commission payable to the Agent/Consultant/ Representative/ Retainer/ Associate in 

rupees in terms of Agreement (enclosing copy of the same). The bidder, in his bid will 

indicate the nature and extent of service to be provided by such an Agent/ Consultant/ 

Representative/ Retainer/ Associate on behalf of the bidder and also remuneration 

therefore provided in the price, as a separate item, quoted by the bidder to GAIL. Such 

remuneration/ commission will be paid by GAIL in non-convertible Indian currency in 

India. Should it be established at any subsequent point of time that the above statement 

of the bidder is not correct or that any other amount of remuneration/commission either 

in India or abroad is being paid to any one (who is not an employee of the bidder), the 

bidder would be liable to be debarred from participating in the future tenders of GAIL. 

Failure to give such information will lead to rejection of the offer. 

The following particulars will also be furnished by the bidder: 

i) The precise relationship between the foreign manufacturer/ principal and their 

Agent/ Consultant/ Representative/ Retainer/ Associate in India. 

ii) The mutual interest which the manufacturer/principal and the Agent/ 

Consultant/ Representative/ Retainer/ Associate in India have in the business of 

each other. 

iii) Any payment which the Agent/ Consultant/ Representative/ Retainer/ Associate 

receives in India or abroad from the manufacturer/principal whether as a 

commission for the contract or as a general fee. 

iv) Permanent Income Tax number of Agent/ Consultant/ Representative/ Retainer/ 

Associate in India. 

v) Permanent income tax account number of foreign supplier. 

vi) All services to be rendered by the Agent/ Consultant/ Representative/ Retainer/ 

Associate. 

Note : Tenders which do not comply with the above stipulations are liable to be 

ignored. 



TENDER FOR 





21.3 Overseas bidder should send their bids directly and not through Agent/ Consultant/ 

Representative/ Retainer /Associate. Bid(s) made by Agent/ Consultant/ Representative/ 

Retainer/ Associate shall be rejected. Agent/ Consultant/ Representative/ Retainer/ 

Associate of the overseas manufacturers/suppliers are, however, permitted to purchase 

biding documents and attend bid opening provided such as Agent/ Consultant/ 

Representative/ Retainer/ Associate has a power of attorney/letter of authority setting 

out very clearly his role, which will be limited to such areas of activity as purchase of 

bidding documents, attending of bid opening and claiming of payment for their services, 

provided further that such a power of attorney/ letter of authority is submitted to GAIL 

in advanced for scrutiny and acceptance or otherwise. 

D. SUBMISSION OF BIDS 

22. Sealing and Marking of Bids 

22.1 Bid shall be submitted in the following manner in separately sealed envelopes duly 

superscribed as below: 

Part-I - Techno-commercial/ unpriced Bid 

Part-II - Priced Bid 

Part III - Original Bid Security 

22.2 Part-I shall contain original and four copies of UNPRICED BID complete with all technical 

and commercial details other than price (with prices blanked out and copies of bid 

security). All the unpriced bids shall be completely identical in all respects including 

enclosures and shall be enclosed in separately sealed envelopes duly marked and 

addressed to the Employer. In the event of any discrepancy between them, the original 

shall govern. The envelope shall also indicate the name of the bidder. 

22.3 Part-II - PRICED BID shall be submitted in one original and four copies with duly filled in 

Price schedule sealed in a separate envelope duly marked and addressed to the 

Employer including the rate for compensation of extended stay charges. 

22.4 Part-III - BID SECURITY in original shall be submitted sealed in a separate envelope duly 

marked and addressed to the Employer. 

22.5 The three envelopes containing PART-I, PART-II and PART-III should be enclosed in a 

larger envelope duly sealed and marked and also bear the name and address of the 

Bidder and Tender No. 

22.6 If the outer envelope is not sealed and marked properly, GAIL will assume no 

responsibility for the Bid’s misplacement or premature opening. 

22.7 Each bidder shall submit only one bid. A bidder who submits more than one bid will be 

rejected. 



23. Deadline for Submission of Bids 

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23.1 Bids must be received by GAIL/ MECON at the address specified in the Invitation for Bids 

(IFB) not later than the date and time stipulated in the IFB. 

23.2 GAIL/ MECON may, in exceptional circumstances and at its discretion, on giving 

reasonable notice by fax or any written communication to all prospective bidders who 

have been issued the bid documents, extend the deadline for submission of bids, in 

which case all rights and obligations of GAIL and the bidders, previously subject to the 

original deadline will thereafter be subject to the deadline as extended. 

24. Late Bids 

24.1 Any bid received by GAIL/ MECON after the deadline for submission of bids prescribed 

on main body of IFB will be rejected and returned unopened to the bidder. 

25. Modification and Withdrawal of Bids 

25.1 The bidder may modify or withdraw his bid after the bid submission but before the due 

date for submission, provided that written notice of the modification/ withdrawal is 

received by GAIL/ MECON prior to the deadline for submission of bids. 

25.2 The modification shall also be prepared, sealed, marked and despatched in accordance 

with the provisions of Clause 22, with the outer and inner envelopes additionally marked 

“modification” or “withdrawal”, as appropriate. A withdrawal notice may also be sent by 

telex or cable, but followed by a signed confirmation copy post marked not later than 

the deadline for submission of bids. 

25.3 No bid shall be modified after the deadline for submission of bids. 

25.4 No bid shall be allowed to be withdrawn in the interval between the deadline for 

submission of bids and the expiration of the period of bid validity specified by the bidder 

on the Bid Form. Withdrawal of a bid during this interval shall result in the bidder’s 

forfeiture of his bid security pursuant to Sub-Clause 16.7. 

E. BID OPENING AND EVALUATION 

26. Bid Opening 

26.1 Unpriced Bid Opening 

GAIL/ MECON will open bids, including withdrawals and modifications made pursuant to 

Clause 25, in the presence of bidders’ designated representatives who choose to attend, 

at date, time and location stipulated in the IFB. The bidders’ representatives, who are 

present shall sign a bid opening register evidencing their attendance. 



26.2 Priced Bid Opening 

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26.2.1 GAIL/ MECON will open the price bids of those bidders who meet the qualification 

requirement and whose bids is determined to be technically and commercially 

responsive. Bidders selected for opening of their price bids shall be informed about the 

date of price bid opening. Bidders may depute their authorized representative to attend 

the opening. The bidders’ representatives, who are present shall sign a register 

evidencing their attendance. 

26.2.2 The price bids of those bidders who were not found to be techno-commercially 

responsive shall be returned unopened after opening of the price bids of technocommercially 

responsive bidders. 

27. Process to be Confidential 

27.1 Information relating to the examination, clarification, evaluation and comparison of bids, 

and recommendations for the award of a contract, shall not be disclosed to bidders or 

any other persons officially concerned with such process. Any effort by a bidder to 

influence the Employer’s processing of bids or award decisions may result in the 

rejection of the bidder’s bid. 

28. Contacting the Employer 

28.1 From the time of bid opening to the time of Contract award, if any bidder wishes to 

contact the Employer on any matter related to the bid, it should do so in writing. 

28.2 Any effort by the bidder to influence the Employer in the Employer’s bid evaluation, bid 

comparison, or Contract award decisions may result in the rejection of the bidder’s bid. 

29. Examination of bids and Determination of Responsiveness 

29.1 Prior to the detailed evaluation of bids, the Employer will determine whether each bid 

a) meets the Bid Evaluation Criteria; 

b) has been properly signed; 

c) is accompanied by the required securities; 



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d) is substantially responsive to the requirements of the bidding documents; and 

e) provides any clarification and/ or substantiation that the Employer may require to 

determine responsiveness pursuant to Sub-Clause 29.2. 

29.2 A substantially responsive bid is one which conforms to all the terms, conditions and 

specifications of the bidding documents without material deviations or reservations. A 

material deviation or reservation is one 

a) that affects in any substantial way the scope, quality, or performance of the 

Works; 

b) that limits in any substantial way, inconsistent with the bidding documents, the 

Employer’s rights or the bidder’s obligations under the contract; or 

c) whose rectification would affect unfairly the competitive position of other bidders 

presenting substantially responsive bids. 

29.3 If a bid is not substantially responsive, it will be rejected by the Employer and may not 

subsequently be made responsive by correction or withdrawal of the nonconforming 

deviation or reservation. 

30. Correction of Errors 

30.1 Bids determined to be substancially responsive will be checked by the Employer for any 

arithmetic errors. Errors will be corrected by the Employer as follows : 

a) where there is a discrepancy between the amounts in words and in figures, the 

amount in words will govern; and 

b) where there is a discrepancy between the unit rate and the total resulting from 

multiplying the unit rate by the quantity, the unit rate as quoted will govern. 

30.2 The amount stated in the bid will be adjusted by the Employer in accordance with the 

above procedure for the correction of errors and, with the concurrence of the bidder, 

shall be considered as binding upon the bidder. If the bidder does not accept the 

corrected amount of bid, its bid will be rejected, and the bid security shall be forfeited. 

31. Conversion to Single Currency for Comparison of Bids 



[Applicable for ICB tenders only] 

TENDER FOR 





31.1 To facilitate evaluation and comparison, GAIL/ MECON will convert all bid prices 

expressed in the amounts in various currencies in which bid price is payable, to Indian 

Rupees at the Bill Collection selling rates of Foreign Exchange as declared by State Bank 

of India a day prior to priced bid opening. 

31.2 Evaluation and comparison of prices of previously determined substantially responsive 

bids shall take into account stipulations given in Article 32. 

32. Evaluation and Comparison of Bids 

32.1 The evaluation and comparison of bids will be done as per the provisions of the bid 

evaluation criteria (to be separately enclosed alongwith bidding document against 

individual tenders). 

33. Preference for Domestic Bidders 

[Applicable for ICB cases only] 

33.1 The supplies of materials and equipment by Domestic bidders are eligible, as per 

government directives to following preference : 

Extent of Domestic Value Added Extent of Price Preference 

Less than 30% NIL 

30% and more Domestic preference shall be limited to offsetting 

of Central Sales Tax to the extent of 

4% or actual whichever is lower plus Octroi at 

actual 

33.2 The domestic value addition shall be calculated with the following formula: 

{PEW (excluding CD,ST,ED) – CIF1} 

------------------------------------------- x 100 

{PEW (excluding CD,ST,ED)} 

Where PEW = Ex-Works Price 

CD = Custom Duty 

ST = Sales Tax 

ED = Excise Duty and 

CIF1 = CIF Value of Imports 

(In above formula the CVD shall not be considered in customs duty due to adjustment 

under CENVAT) 



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33.3 Once quoted the extent of Domestic Value addition shall remain unaltered. 

33.4 Domestic Bidder shall furnish details of equipment/ Items, applicable Central Sales Tax 

rate without Form `C’ alongwith the corresponding amount. 

33.5 The Sales Tax amount indicated by the Bidder as included in the prices, shall be paid by 

GAIL against documentary evidence only. 

In case the Bidder is not able to produce documentary evidence for full value of the 

sales tax, the payment shall be limited to the value for which documentary evidence is 

furnished. 

34. Purchase Preference 

34.1 Purchase Preference to Central Government Public Sector Undertakings shall be allowed 

as per government guidelines in vogue. 

35. Compensation for extended stay 

NOT APPLICABLE 

F. AWARD OF CONTRACT 

36. Award 

36.1 Subject to Clause 29, GAIL/ MECON will award the contract to the successful bidder 

whose bid has been determined to be substantially responsive and has been determined 

as the lowest, is determined to be qualified to satisfactorily perform the contract. 

37. Employer’s Right to Accept Any Bid and to Reject Any or all Bids 

37.1 GAIL/ MECON reserves the right to accept or reject any bid, and to annul the bidding 

process and reject all bids, at any time prior to award of contract, without thereby 

incurring any liability to the affected bidder or bidders or any obligations to inform the 

affected bidder or bidders of the ground for GAIL’S ACTION. 

38. Notification of Award 

38.1 Prior to the expiration of period of bid validity GAIL/ MECON will notify the successful 

bidder in writing by fax, cable or telex to be confirmed in writing, that his bid has been 

accepted. The notification of award/ Fax of Intent will constitute the formation of the 

Contract. 



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38.2 Delivery/ completion period shall be counted from the date of notification of award / Fax 

of Intent. 

The notification of award will constitute the formation of a Contract, until the Contract 

has been effected pursuant to signing of Contract as per Clause 39 of ITB. 

Upon the successful bidder’s furnishing of contract performance security, pursuant to 

Clause 40 of ITB, GAIL/ MECON will promptly notify each unsuccessful bidder and will 

discharge his bid security, pursuant to Clause 16 of ITB. 

39. Signing of Agreement 

39.1 GAIL/ MECON will award the Contract to the successful bidder, who, within 15 days of 

receipt of the same, shall sign and return the acceptance copy to GAIL/ MECON. 

39.2 The successful bidder shall be required to execute an AGREEMENT in the proforma given 

in of this standard bidding document on non-judicial paper of appropriate value (the 

cost of stamp paper shall be borne by the Contractor), within 15 days of the receipt by 

him of the Notification of Acceptance of Tender. In the event of failure on the part of 

the successful bidder to sign the AGREEMENT within the above stipulated period, the Bid 

Security shall be forfeited and the acceptance of the tender shall be considered as 

cancelled. 

40. Contract Performance Security 

40.1 Within 15 days of the receipt of the notification of award/ Fax of Intent from GAIL/ 

MECON, the successful bidder shall furnish the contract performance security in 

accordance with Article 24 of General Conditions of The Contract in the form provided in 

the bidding documents. The Contract Performance Security shall be in the form of either 

Banker’s Cheque or Demand Draft or Bank Guarantee or Letter of Credit and shall be in 

the currency of the Contract. 

40.2 The contract performance security shall be for an amount equal to 10% of the value of 

the contract towards faithful performance of the contractual obligations and 

performance of equipment. This Bank Guarantee/ DD/ Letter of Credit shall be from any 

Indian scheduled bank or a branch of an International bank situated in India and 

registered with Reserve bank of India as scheduled foreign bank. However, in case of 

bank guarantees from banks other than the Nationalized Indian banks, the bank must 

be a commercial bank having net worth in excess of Rs. 100 crores and a declaration to 



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this effect should be made by such commercial bank either in the Bank Guarantee itself 

or separately on its letterhead. This Bank Guarantee shall be valid for a period as stated 

in Article-24 of General Conditions of The Contract. 

40.3 Failure of the successful bidder to comply with the requirements of this article shall 

constitute sufficient grounds for the annulment of the award and forfeiture of the bid 

security, in which event GAIL may award the order to the next lowest evaluated bidder 

or call for new bids. 

41. Corrupt or Fraudulent Practices 

41.1 GAIL/ MECON requires that bidders/ contractors observe the highest standard of ethics 

during the execution of contracts. In pursuance of this policy, the Employer : 

a) defines, for the purposes of this provision, the terms set forth below as follows : 

i) “corrupt practice” means the offering, giving or soliciting of anything of 

value to influence the action of a public official in the procurement 

process or in contract execution; and 

ii) “fraudulent practice” means a misrepresentation of facts in order to 

influence a procurement process or the execution of a contract to the 

detriment of the Employer, and includes collusive practice among bidders 

(prior to or after bid submission) designed to establish bid prices at 

artificial non-competitive levels and to deprive thc Employer of the 

benefits of free and open competition; 

b) will reject a proposal for award if it determines that the bidder recommended for 

award has engaged in corrupt or fraudulent practices in competing for the 

contract in question; 

c) will declare a firm ineligible and put on holiday, either indefinitely or a for a 

stated period of time if it at any time determines that the firm has engaged in 

corrupt or fraudulent practices in competing for, or in executing a contract. 


2.0 ANNEXURE TO INSTRUCTION TO 

BIDDER (ITB) 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\8-Contents - Annexure to ITB.doc


CONTENTS 

1) Annexure-I : Evaluation & Comparison of Bids 

2) Annexure-II : List of Formats 

3) Annexure-III : Commercial Questionnaire 

4) Annexure-IV : Check List 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\8-Contents - Annexure to ITB.doc 

Annexure to ITB

EVALUATION & COMPARISON OF BIDS 

[Annexure – I to Instruction to Bidder(ITB)] 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\9-Annexure-I to ITB.doc


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Annexure – I to ITB 

EVALUATION & COMPARISON OF BIDS (As per Clause 32 of ITB) 

1.0 EVALUATION & COMPARISON OF BIDS: 

• The evaluation will be made on the basis of option-wise landed cost of 

coated pipe at Dump Yard location near Oduru. which is to be maintained by 

the coating contractor/ coated pipe supplier including free storage period of 

two months from the contractual completion period or actual completion 

period which ever is later 

• However, after this free period of two months, coating contractor/ coated 

pipe supplier will be entitled for payment of Rs.2000.00 per day. 

• The cumulative lowest landed price for OPTION-I and OPTION-II will be 

compared with the lowest landed price of OPTION-III and the order will be 

placed on the bidder(s) who will emerge as L1 on the basis of above 

comparison. 

1.1 ALTERNATIVE– 1 : (FOR COATED PIPES UNDER OPTION-III) 

Bidders shall quote item wise landed Price (per Mtr.) of pipe at dumpyard at Oduru. 

This price shall include all costs, taxes, duties etc. including e.g. Sales Tax (without C 

Form)/ VAT, price of bare pipes, transportation of bare pipes to coating plant, 

coating, transportation of coated pipes to Dump Yard, arranging land for Dump Yard 

at respective location (s) , unloading and stacking at Dump Yard, storage of coated 

pipe at Dump Yard for a free period of two months from the contractual delivery 

period or actual completion whichever is later, security arrangement at Dump Yard, 

transit and storage insurance, loading of accepted quality of coated pipes on trailors 

brought by pipeline laying Contractor. 

Domestic Price preference/ Purchase preference, if any, shall be applicable in 

accordance with provisions of the tender document. 

No TRANSCHART rate will be considered for this Option, since the bidder is to quote 

FOT dump yard price. 

1.2 ALTERNATIVE–2 : (FOR BARE PIPE UNDER OPTION-I AND COATING 

WORK IN INDIA UNDER OPTION-II) 

1.2.1 BARE PIPE- OPTION-I 

1.2.1.1 Indigenous Bare Pipe : 

The cost of indigenous bare pipe is to be taken ex-works price including all taxes and 

duties e.g. excise duty, sales tax etc. (without C form)/VAT. 

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Domestic Price preference/ Purchase preference, if any, shall be applicable in 

accordance with provisions of tender document. 

1.2.1.2. Imported Bare Pipe: 

In case of imported bare pipes, the item wise price (per Mtr) to be quoted FOB 

(Loading port) and C&F Kandla/Mumbai ports, will be evaluated for landed cost at 

Kandla/Mumbai Port as detailed hereunder : 

i) F.O.B. price quoted by the bidder 

ii) Ocean freight shall be taken as per ‘TRANSCHART’ rates provided by Ministry 

of Surface Transport 

iii) Marine insurance @1% of FOB price 

iv) Landing charges @1% on CIF value, if applicable. 

v) Prevailing rate of Customs Duty* on (CIF value + Landing charges) 

* Project rate of Customs duty as applicable (Present rate : Basic 10% + CVD 

16% + Cess @ 2% = Total 28.51%) 

1.2.2. COATING IN INDIA- OPTION-II 

The scope of work of the coating contractor will include but not limited to “Taking 

delivery of Bare Pipes on trailers from Kandla/Mumbai Port (from the ship’s crane 

hook)/indigenous mills, transportation of bare pipe to coating plant, handling and 

storing of bare pipe in coating plant, coating, arranging land for Dump Yard, 

handling and storage of coated pipe in coating plant and transportation of coated 

pipes from coating plant to Dump Yard locations, storage of coated pipe at Dump 

Yard for a free period of two months from the contractual delivery period or actual 

completion whichever is later, security arrangement at stockpile, transit and storage 

insurance, loading of accepted quality of coated pipes on trailers brought by pipeline 

laying Contractor (who will collect the coated pipe from the dumpyard at Oduru)”. 

In case of imported Bare Pipes, Coating Contractor shall take delivery of Bare Pipes 

on trailers from Kandla/Mumbai Port (from the ship’s crane hook). All Charges 

including port charges in India including charges for off loading the cargo on 

Coating Contractor’s trailers and un-slinging of hook shall be on Owner’s account.. 

The coating contractor shall place sufficient trailers to receive the pipe from the 

ship’s crane hook and incur all costs up to transportation of pipes to his coating 

plant. In case of any demurrage/wharf age payable for not clearing the cargo in 

time at the port, only if the same is levied due to the fault of the coating contractor, 

i.e., any detention/demurrage levied due to insufficient number of trailers being 

provided by the coating contractor shall be borne by the coating contractor. 

In the case of indigenous bare pipe, the bidder shall include the charges for loading 

of the pipes on trailers brought by the coating contractor. 



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The bids shall be evaluated for the full quantity on L-1 basis under different 

options. 

The evaluation will be made on the basis of landed cost of coated pipe at 

Dumpyard near Oduru. For evaluation purpose, the quoted price of 

different bidders (Option – I) and quoted price of coating of different 

bidder (Option – II) shall be taken together. To arrive at the lowest landed 

cost of coated pipe at Dumpyard, this total evaluated price of Option I & II 

of different bidders shall be compared with quoted prices of Option – III of 

different bidders. 

1.1.3 The price evaluation of the bids for different alternatives shall be made under various 

stages as follows: 

a) The lowest evaluated bid shall be decided for Bare Pipes amongst the offers 

for Bare Pipes (Option – I). 

b) The lowest evaluated bid shall be decided for Coating job amongst the offers 

available for Coating work (Option – II). 

c) The lowest evaluated cost for Coated Pipes [Combination of stage a + stage 

b)] shall be arrived at by adding the following: 

EX-works/Landed Price of Bare Pipes as calculated at stage(a) above 

PLUS 

The lowest evaluated Coating rates as calculated at stage(b) above 

d) The lowest evaluated bid shall be decided for Coated pipes amongst the 

offers available for Coated Pipes. 

(Finally the Comparison shall be made between the lowest evaluated price of Coated 

Pipes at step-c and Step-d above for placement of order.) 

The other critical points for evaluation of offers this tender are as under:- 

a) Bidder shall meet the technical, as well as, commercial qualification criteria 

as stated above. Bidder shall furnish all necessary documentary evidence 

along with the bid, to justify meeting the stipulated technical, financial 

qualification criteria and capacity assessment of proposed mills and coating 

plants. In the absence of requisite documents, GAIL/ Consultant reserve the 

right to reject the bid without making any reference to the bidder. 

b) GAIL/ Consultant decision shall be final with respect to the capacity 

assessment of the bidder. 

c) Order will be limited to lowest of the capacity assessed for Pipe 

manufacturing, Coating and Turnover criteria. Order may be placed, on least 

cost basis to the Owner, on more than one bidder due to Capacity for Pipe 

manufacturing, Coating and Turnover criteria stipulated above. Thus, prices 



TENDER FOR 




quoted by bidders shall be valid for part order. 



d) In case the bidder proposes to engage a coating agency, the copy of MOU 

with the coating agency to carry out the job is to be submitted. The coating 

agency should meet the qualifying criteria stipulated under BEC criteria 

specified for Option-II above . The bid shall be liable for rejection, in case of 

change of the proposed coating agency after submission of the bid. 

e) The evaluation and award will be made on the basis of item wise lowest 

landed cost of coated pipe at Dump Yard location near Oduru. 

f) The offer will be evaluated on the basis of capacity of individual bidder/mill. 

g) The Tenderer has to indicate in Bid the concurrent commitments along with 

bar chart to complete the delivery within the stipulated period. 

h) Sales Tax, i.e. CST/ST/VAT will be applicable as per the location of mill and 

location of Dump Yard. Bidder shall clearly indicate details of the same. 

i) The main price bid is to be considered for evaluation and no cognizance will 

be given to the supplementary/supporting document attached to the price 

bid as break-up of prices etc. 

j) For foreign bidders initially the Purchase Order (P.O.) shall be placed on 

FOB(Stowed) basis and GAIL reserves the right to convert the same to C&F 

(Landed) basis within 45 days from placement of P.O. Therefore the C&F 

prices should be valid for additional 45 days from the date of P.O. 

k) The coating contractor shall take delivery of the pipe from the manufacturer’s 

plant immediately (maximum within 15 days) after issuance of release note. 

Any financial implication due to delay in taking delivery of the pipes will be to 

the coating contractor’s account. 

2.0 MATCHING OF PRICES BY L-2, L3 AND SO ON BIDDERS IN CASE THE ENTIRE 

QUANTITY CAN NOT BE MET BY L-1 BIDDER: 

2.1 In case due to reasons like capacity constraints, quoted scope of work limitations of 

the bidder or any other reasons, if the work of any dump yard can not be awarded 

to L1 bidder, the L2/L3 and so on bidders shall be asked to match their evaluated 

price with the evaluated price of L1 bidder for placement of order on L2, L3 and so 

on bidders. 

2.2 If negotiation is conducted with L-1 bidder, L-2/L3 and so on bidders will be required 

to match the negotiated price of L1 bidder 

2.3 In case the L2/L3 and so on Bidders do not match their price as mentioned above, 

such quantities of work shall be re-tendered . 


LIST OF FORMATS 

[Annexure – II to Instruction to Bidder(ITB)] 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\10-Annexure II to ITB.doc


To 

M/s GAIL (India) Limited 

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F-1 

BIDDER’S GENERAL INFORMATION 


Annexure-II to ITB 

1.1 Bidder Name : _________________________________________ 

1.2 Number of Years in Operation : _________________________________________ 

1.3 Registered Address : _________________________________________ 

_________________________________________ 

_________________________________________ 

1.4 Operation Address : _________________________________________ 

if different from above 

_________________________________________ 

1.5 Telephone Number : _________________________________________ 

(Country Code) (Area Code) 

(Telephone No.) 

1.6 E-mail address & Web Site : _________________________________________ 

1.7 Telefax Number : _________________________________________ 

(Country Code) (Area Code) 

(Telephone No.) 

1.8 ISO Certification, if any : {If yes, please furnish details} 

__________________________________ 

(SIGNATURE OF BIDDER WITH SEAL)


1. IN CASE OF INDIVIDUAL 

1.1 Name of Business 

1.2 Whether his business is registered 

1.3 Date of commencement of business 


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F-1A 

DETAILED INFORMATION ABOUT BIDDERS 

(In case of open Tender) 

1.4 Whether he pays Income Tax over Rs.10,000/- per year 

2. IN CASE OF PARTNERSHIP 

2.1 Name of Partners 

2.2 Whether the partnership is registered 

2.3 Date of establishment of firm 



2.4 If each of partners of the firm pays Income Tax over Rs.10,000/- per year and if so, which 

of them pays the same. 

3. IN CASE OF LIMITED LIABILITY COMPANY OR COMPANY LIMITED BY GUARANTEE 

3.1 Amount of paid up capital 

3.2 Name of Directors 

3.3 Date of Registration of Company 

3.4 Copies of the balance sheet of the company of the last five years. 

_________________________________ 

(SEAL AND SIGNATURE OF BIDDER)


To 


Dear Sir, 


TENDER FOR 




F-2 

BID FORM 



After examining/ reviewing the Bidding Documents for ________________________________, 

including technical specifications, drawings, General and Special Conditions of Contract and 

schedule of rates etc. The receipt of which is hereby duly acknowledged, we, the undersigned, 

pleased to offer to execute the whole of the Job of _____________ and in conformity with, the 

said Bid Document, including Addenda Nos. (if any). 

We confirm that this bid is valid for a period of four(4) months from the date of opening of 

Techno-commercial Bid, and it shall remain binding upon us and may be accepted by any time 

before the expiration of that period. 

If our bid is accepted, we will provide the performance security equal to 10% (ten percent) of 

the Contract Price, for the due performance with in fifteen days of such award. 

Until a final Agreement is prepared and executed, the bid together with your written 

acceptance thereof in your notification of award shall constitute a binding Agreement between 

us. 

We understand that Bid Document is not exhaustive and any action and activity not mentioned 

in Bid Documents but may be inferred to be included to meet the intend of the Bid Documents 

shall be deemed to be mentioned in Bid Documents unless otherwise specifically excluded and 

we confirm to perform for fulfillment of Agreement and completeness of the Work in all 

respects within the time frame and agreed price. 

We understand that you are not bound to accept the lowest priced or any bid that you may 

receive. 

SEAL AND SIGNATURE 

DATE : _____________ 

Duly authorized to sign bid for and on behalf of ____________________________________ 

(SIGNATURE OF WITNESS) 

WITNESS NAME : 

ADDRESS :


GAIL (India) Limited, 

Dear Sir, 


TENDER FOR 




F-3 

LIST OF ENCLOSURES 

We are enclosing the following documents as part of the bid: 

1. Power of Attorney of the signatory to the Bidding Document. 

2. QA/OC Manuals. 

3. Health Safety and Environment (HSE) Policy and HSE Manual. 



4. Document showing annual turnover for the last three years such as annual reports, 

profit and loss account, net worth etc. along with information as sought in enclosed 

format F-3A. 

5. Organisatipn chart of the bidder and the structure assigned for execution of the work 

under this bid. 

6. Methodology of execution of work. 

7. Execution schedule with interlinking of various activities. 

8. Copy of Bidding Documents along with addendum/ corrigendum no. duly signed and 

sealed on each page, in token of confirmation that Bid Documents are considered in full 

while preparing the bid and in case of award, work will be executed in accordance with 

the provisions detailed in Bid Documents, 

_________________________________ 




TENDER FOR 




F-3A 

FINANCIAL DETAIL 

EACH BIDDER MUST FILL IN THIS FORM 

a) Annual Turnover data for the last 3 years (as per audited balance sheet) 



Year Currency Amount Ex. Rate (*) Amount (INR) 

(*) 

Year 1 

Year 2 

Year 3 

1. The information supplied should be the Annual Turnover of the Bidder. 

2. A brief note should be appended describing thereby details of turnover 

alongwith audited balance sheet with profit & loss account statement for the last 

3 years. 

b) Annual Net-worth data for the last 3 years (as per audited balance sheet) 


(*) 

Year 1 

Year 2 

Year 3 

1. Net Worth = Reserves + Capitals – Accumulated Loss 

c) Net profit last three financial years (as per audited balance sheet) 


(*) 

Year 1 

Year 2 

Year 3 

d) Return on equity last financial years (as per audited balance sheet) : Positive / Negative 

(*) To be filled by Employer/ Consultant 

_________________________________ 



TENDER FOR 






Sheet 1 of 2 

F-4 

PROFORMA FOR BANK GUARANTEE FOR EARNEST MONEY DEPOSIT/ BID SECURITY 

(To be stamped in accordance with the Stamp Act) 

Bank Guarantee No. …………………… 

Ref: ……………………………… Date …………………… 

To 

GAIL (India ) Limited, 

Dear Sir(s), 

In accordance with Letter Inviting Tender under your reference No. _____________________ M/s 

____________________________ having their Registered/ Head Office at _____________ 

_________________________ (hereinafter called the Tenderer) wish to participate in the said tender for 

_____________________________________________________________________ 

As an irrevocable Bank Guarantee against Earnest Money for the amount of _______________ is 

required to be submitted by the Tenderer as a condition precedent for participation in the said tender 

which amount is liable to be forfeited on the happening of any contingencies mentioned in the Tender 

Document. 

We, the _____________________________________ Bank at __________________________ having 

our Head Office __________________________________________________________ 

(Local Address) guarantee and undertake to pay immediately on demand without any recourse to the 

tenderers by GAIL (India) Ltd., the amount ____________________________ without any reservation, 

protest, demur and recourse. Any such demand made by GAIL, shall be conclusive and binding on us 

irrespective of any dispute or difference raised by the Tenderer. 

This guarantee shall be irrevocable and shall remain valid upto _____________ [this date should be 6 

months after the date finally set out for closing of tender]. If any further extension of this guarantee is 

required, the same shall be extended to such required period on receiving instructions from M/s 

____________________________________________________________ 

whose behalf this guarantee is issued. 

In witness whereof the Bank, through its authorised officer, has set its hand and stamp on this 

______________ day of ______________200__at______________. 

WITNESS: 

(SIGNATURE) (SIGNATURE) 

(NAME) (NAME) 

Designation with Bank Stamp 

(OFFICIAL ADDRESS) Attorney as per 

Power of Attorney No._________ 

Date: __________________ 



TENDER FOR 




INSTRUCTIONS FOR FURNISHING BID-GUARANTEE/ 

BANK GUARANTEE 




Sheet 2 of 2 

1. The Bank Guarantee by bidders will be given on non-judicial stamp paper as per stamp 

duty applicable. The non-judicial stamp paper should be in the name of the issuing 

bank. In case of foreign bank, the said banks guarantee to be issued by its 

correspondent bank in India on requisite non-judicial stamp paper. 

2. The expiry date as mentioned in bid document should be arrived at by adding 2 months 

to the date of expiry of the bid validity unless otherwise specified in the Bid Documents, 

3. The bank guarantee by bidders will be given from bank as specified in ITB 

4. A letter from the issuing bank of the requisite Bank Guarantee confirming that said bank 

guarantee/ all future communication relating to the Bank Guarantee shall be forwarded 

to the Employer at its address as mentioned at ITB. 

5. Bidders must indicate the full postal address of the bank along with the bank’s E-mail/ 

Fax. From where the earnest money bond has been issued. 

6. If a bank guarantee is issued by a commercial bank, then a letter to Employer 

confirming its net worth is more than Rs. 1,000,000,000/- (Rupees one hundred crore) 

or equivalent along with a documentary evidence.


To, 

(Beneficiary) 


___________________ 

___________________ 

TENDER FOR 






F-4A 

FORMAT FOR LETTER OF CREDIT FOR BID SECURITY 

(In case of Foreign Bidder) 

Irrevocable and confirmed Letter of Credit No. ______________________ 

Amount : Rs./ US$ 

Validity of this Irrevocable : ______________________________ (in India) 

Letter of Credit (2 months beyond validity of offer) 

Dear Sir, 

You are here by authorized to draw on _______________ (Name of Applicant with full address) for a 

sum not exceeding ____________________ available by your demand letter (draft) on them at sight 

drawn for ____________________ Rs./ US$ accompanied by a certificate by GAIL (India) Ltd., with the 

Tender No. duly incorporated therein, that one or more of the following conditions has/ have occurred, 

specifying the occurred condition(s) : 

(i) The bidder withdraws its Bid during the period of Bid validity or any extension thereof duly 

agreed by the Bidder. 

(ii) The Bidder varies or modifies its Bid in a manner not acceptable to GAIL (India) Ltd. during the 

period of bid validity or any extension thereof duly agreed by the Bidder. 

(iii) The Bidder, having been notified of the acceptance of its Bids, 

(a) Fails or refuses to execute the supply order/ contract 

(b) Fails or refuses to furnish the Contract Performance Security within 30 days before 

expiry of bid Security. 

(c) Fails to accept arithmetic corrections as per tender conditions. 

2. This Irrevocable Letter of Credit has been established towards Bid Security Tender No. 

____________________ for ____________________ (item). 

3. We hereby guarantee to protect the Drawers, Endorsers and bonafide holders from any 

consequences which may arise in the event of the non-acceptance or non-payment of Demand 

Letter (draft) in accordance with the terms of this credit. 

4. This Credit is issued subject to the Uniform Customs and Practices for Documentary Credits 

(1993 Revised) International Chamber of Commerce brochure No. 500. 

5. Please obtain reimbursement as under : _______________________________________ 

6. All foreign as well as Indian bank charges will be on the account of M/s _____________ 

_________________________________ (Applicant) 

Counter Signature 


FOR _____________________ 

Authorised Signature 

(Original Bank)



TENDER FOR 




F-5 

LETTER OF AUTHORITY 



PROFORMA FOR LETTER OF AUTHORITY FOR ATTENDING AND SUBSEQUENT 

NEGOTIATIONS/CONFERENCES 

No.: Date: 

GAIL India Limited, 

Dear Sir, 

We ___________________________________________________ hereby authorize following 

representative(s) to attend un-priced bid opening and price bid opening and for any other 

correspondence and communication against above Bidding Document: 

1) Name & Designation _________________________ Signature ____________________ 

2) Name & Designation _________________________ Signature ____________________ 

We confirm that we shall be bound by all commitments made by aforementioned authorised 

representatives. 


Signature 

Name & Designation 

For and on behalf of 

Note: This letter of authority should be on the letterhead of the bidder and should be signed 

by a person competent and having the power of attorney to bind the bidder. 

Not more than two persons are permitted to attend techno-commercial un-priced and 

price bid opening.



Dear Sir, 

TENDER FOR 






F-6 

NO DEVIATION CONFIRMATION 

(Tender/ Bid Document No. ____________________) 

We understand that any deviation/ exception in any form may result in rejection of bid. We, 

therefore, certify that we have not taken any exceptions/ deviations anywhere in the bid and 

we agree that if any deviation is mentioned or noticed, our bid may be rejected. 

Note: This NO DEVIATION CONFIRMATION should be written on the letterhead of the bidder 

indicating tender ref. no. duly signed and stamped with date by a person competent 

and having the power of attorney to bind the bidder. 


_________________________________ 




Dear Sir, 


TENDER FOR 




F-7 

CERTIFICATE 



If, we become a successful bidder and pursuant to the provisions of the Bidding Documents 

and contract is awarded to us the following certificate shall be automatically enforceable: 

‘We agree and acknowledge that the Employer is entering into the Agreement solely on its 

own behalf and not on behalf of any other person or entity. In particular, it is expressly 

understood and agreed that the Government of India is not a party to the Agreement and 

has no liabilities, obligations or rights there under. It is expressly understood and agreed 

that the Employer is authorised to enter into Agreement, solely on its own behalf under the 

applicable laws of India. We expressly agree, acknowledge and understand that the 

Employer is not an agent, representative or delegate of the Government of India. It is 

further understood and agreed that the Government of India is not and shall not be liable 

for any acts, omissions, commissions, breaches or other wrongs arising out of the 

Agreement. Accordingly, we hereby expressly waive, release and forego any and all actions 

or claims, including cross claims, VIP claims or counterclaims against the Government of 

India arising out of the Agreement and covenants not to sue to Government of India as to 

any manner, claim, cause of action or things whatsoever arising of or under the 

Agreement.” 

_________________________________ 



Description 

of the work 

TENDER FOR 






F-8 

DETAILS OF SIMILAR WORK DONE DURING PAST FIVE YEARS 

Locatio 

n of 

the 

work 

Full Post 

Address and 

Phone nos. of 

Client & Name 

of Officer-incharge 

Value 

of 

Contrac 

t 


Date of 

Comme 

ncement 

of work 

Scheduled 

Completio 

n Time 

(Months) 

Date of 

Actual 

Comple 

tion 

Reasons for 

delay in 

project 

completion, 

if any 

Note: Copies of letter of award and completion certificate for the above works to be 

enclosed. 

The work completed earlier than three years need not be indicated here. 

The list of work, not of similar nature need not be indicated here. 

Failing to comply aforementioned instructions may lead to rejection of bid. 

_________________________________ 



Full Postal 

Address and 

phone nos. of 

Client & Name 

of Officer-incharge 

Description 

of Work 


TENDER FOR 




F-9 

PRESENT COMMITMENTS OF THE BIDDER 

Date of 

Commenceme 

nt of Work 

Scheduled 

Completion 

Period 

Note: This list must be a full list of all type of works in hand 

%Age 

Completion 

as on Date 



Expected 

Date of 

Completion 

Remarks 

_________________________________ 


TO: 



TENDER FOR 




F-10 



Sheet 1 of 2 

PROFORMA OF BANK GUARANTEE FOR CONTRACT PERFORMANCE SECURITY 

(ON NON-JUDICIAL PAPER OF APPROPRIATE VALUE) 


Dear Sir, 

M/s_______________________________________________________ have been awarded the 

work of __________________________________________________________ for GAIL (India) 

Limited,16, Bhikaiji Cama Place, R.K. Puram, NEW DELHI. 

The Contracts conditions provide that the CONTRACTOR shall pay a sum of Rs. __________ 

(Rupees _________________________________________________________________ ) as full 

Contract Performance Guarantee in the form therein mentioned. The form of payment of Contract 

Performance Guarantee includes guarantee executed by Nationalised Bank, undertaking full 

responsibility to indemnify GAIL (India) Limited, in case of default. 

The said ___________________________________________________ has approached us and at 

their request and in consideration of the premises we having our office at 

_________________________________ have agreed to give such guarantee as hereinafter 

mentioned. 

1. We ___________________________________________________ hereby undertake and 

agree with you that it default shall be made by M/s ______________________ 

________________ in performing any of the terms and conditions of the tender or in 

payment of any money payable to GAIL (India) Limited we shall on demand pay without any 

recourse to the contractor to you in such manner as you may direct the said amount of 

Rupees ______________________________ only or such portion thereof not exceeding the 

said sum as you may from time to time require. 

2. You will have the full liberty without reference to us and without affecting this guarantee, 

postpone for any time or from time to time the exercise of any of the powers and rights 

conferred on you under the contract with the said ___________ 

_____________________________ and to enforce or to forbear from endorsing any powers 

or rights or by reason of time being given to the said ___________________ 

_____________ which under law relating to the sureties would but for provision have the 

effect of releasing us.



TENDER FOR 






Sheet 2 of 2 

3. Your right to recover the said sum of Rs. __________________________________ 

__________________ (Rupees __________________________________) from us in 

manner aforesaid will not be affected or suspended by reason of the fact that any dispute or 

disputes have been raised by the said M/s ______________________ _________ and/ or 

that any dispute or disputes are pending before any officer, tribunal or court. 

4. The guarantee herein contained shall not be determined or affected by the liquidation or 

winding up dissolution or changes of constitution or insolvency of the said but shall in all 

respects and for all purposes be binding and operative until payment of all money due to 

you in respect of such liabilities is paid. 

5. This guarantee shall be irrevocable and shall remain valid upto_______________ If any 

further extension of this guarantee is required, the same shall be extended to such required 

period on receiving instruction from M/s ________________________ 

_________________________________ on whose behalf this guarantee is issued. 

6. The Bank Guarantee’s payment of an amount is payable on demand and in any case within 

48 hours of the presentation of the letter of invocation of Bank Guarantee. Should the 

banker fail to release payment on demand, a penal interest of 18% per annum shall become 

payable immediately and any dispute arising out of or in relation to the said Bank Guarantee 

shall be subject to the jurisdiction of Delhi Courts. 

7. We have power to issue this guarantee in your favour under Memorandum and Articles of 

Association and the undersigned has full power to do under the Power of Attorney dated 

____________ granted to him by the Bank. 

______________________________Bank 


By its Constituted Attorney 

Signature of a person duly authorised to 

sign on behalf of the Bank.


TENDER FOR 






INSTRCUTION FOR FURNISHING CONTRACT PERFORMANCE SECURITY 

1. The bank guarantee by successful bidder(s) will be given on non-judicial stamp paper as per 

stamp duty applicable. The non-judicial stamp paper should be in name of the issuing bank. 

In case of foreign bank, the said bank guarantee to be issued by its correspondent bank in 

India on requisite non-judicial stamp paper and place of bid to be considered as Delhi. 

2. The bank guarantee by bidders will be given from bank as specified in ITB. 

3. A letter from the issuing bank of the requisite bank guarantee confirming that said bank 

guarantee and all future communication relating to the Bank Guarantee shall be forwarded 

to employer. 

4. If a bank guarantee is issued by a commercial bank, then a letter to employer and copy to 

consultant confirming its net worth is more than Rs. 1,000,000,000/- (Rupees one hundred 

crores). Or its equivalent in foreign currency alongwith a documentary evidence. 


COMMERCIAL QUESTIONNAIRE 

[Annexure – III to Instruction to Bidder(ITB)] 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\11-Annexure-III to ITB - A1.doc


TENDER FOR 




A1. BRIEF SUMMARY OF AGREED TERMS AND CONDITIONS 

FOR INDIGENOUS BIDDERS ONLY EX-WORKS (Option-I) 

TOTAL PAGES – 7 

Bidder M/s ............................. Bid Document No................................ 

Offer Ref................................ 


Annexure – III to ITB 

This Questionnaire duly filled in should be returned along with each copy of Un-priced Bid. Clauses 

confirmed hereunder should not be repeated in the Bid. ALL THE COMMERCIAL TERMS & CONDITIONS 

SHOULD BE INDICATED IN THIS FORMAT ONLY. IF REQUIRED DETAILS INCLUDING DEVIATION TO 

GCC / SCC, IF ANY, SHOULD BE INDICATED AS AN ANNEXURE TO THIS FORMAT. 

SL. 

NO. 

DESCRIPTION BIDDER'S CONFIRMATION 

1. It is noted and confirmed that deviations to Terms & 

Conditions shall lead to loading of prices or rejection of offer, 

as specified in the Bid Document. 

2. Bidder’s name and address 

3. Manufacturer’s Name & Address 

4. Indicate Country of origin of offered GOODS 

5. Indicate despatch point 

6. Please indicate the currency in which the offer is submitted 

other than Indian Rupees. 

7. All correspondence must be in English Language only. 

8. Confirm that the offer shall remain valid for acceptance upto 

4 months from Final Bid Due Date/Date of Opening of Bids. 

9. Is Bank Guarantee/ Demand Draft for Earnest Money 

enclosed? If so, please indicate the following:- 

i) No. and date of B. G. / Draft 

ii) Name of Bank 

iii) B. G. valid upto 

iv) Is issuing Bank Indian Nationalized Bank / India 

Schedule Bank. 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\11-Annexure-III to ITB - A1.doc Page 1 of 8


TENDER FOR 




v) If schedule Bank then declaration from Bank that net 

worth more than Rs. 100 crores furnished. 

10. Please confirm whether the scope of work is complete as per 

Bill of Schedule 

11. Please note for compliance that currency once quoted shall 

not be permitted to be changed. 

12. Indicate Name & Contact Telephone/ Fax No. of person(s) to 

whom queries, if any, are to be addressed against your bid. 

13. Ensure and confirm that unit prices Quoted in ‘Price Breakup 

Schedule’, are on Ex-works basis inclusive of packing & 

forwarding/loading charges i.e. on FOT Despatch Point Basis. 

14. Please confirm that price quoted are as per price format given 

in bid document.. 

15. Please note that Owner shall not be compensating for any 

Foreign Exchange variation since bidder(s) have been 

permitted to quote in any currency. Exchange rate variations 

if sought in offer, shall lead to rejection of offer. 

16. Confirm acceptance of completion period as per requirement 

Specified in Bid Document to be reckoned from date of Fax of 

Intent (FOI). 

17. Indicate rate of central or local sales tax (CST/LST) whichever 

applicable, as quoted in price schedule & payable extra. 

i) CST without concessional Form. 

ii) Local Sales tax (in case supplies are made from originating 

state) without concessional form. 

18.a) Indicate present rate of terminal excise duty (ED) applicable 

on the supplies and as considered in price schedule. 

b) If there is any variation in Excise Duty at the time of supplies 

for any reason except statuary variation confirm the same will 

be borne by bidder. 

c) If excise duty is presently not applicable, confirm whether the 

same will be borne by bidder in case it becomes leviable later. 

d) In case (b) or (c) is not acceptable, advise maximum rate of 

excise duty chargeable. 





TENDER FOR 




e) It is noted that statutory variation in ED within contractual 

delivery shall be to Owner’s account. 

19. Confirm acceptance of Price Reduction Schedule (PRS) for 

delay in beyond contractually agreed completion schedule as 

specified in the Bid Document. 

20. Confirm that in case of delay in completion of work beyond 

Contractual Completion Date (CCD) the invoice shall be 

submitted for the amount duly reduced to the extent of PRS. 

21. Confirm in case of delay in completion beyond CCD, any new 

or additional taxes and duties imposed after contractual 

delivery shall be to vendor’s account. 

22. Confirm acceptance of relevant Terms of Payment as 


23. Confirm quoted prices will remain firm and fixed till complete 

execution of the order. Fax of Intent shall be placed within 

offer validity as ‘Notification of Award of Contract’. 

24. Confirm that the Supplies shall be guaranteed against 

defective materials/workmanship etc. as per Guarantee 

conditions of Bid Document / Addendum. 

25. Confirm that Contract-cum-Equipment-Performance Bank 

Guarantee (CPBG) for 10% of order/contract value shall be 

furnished within 30 days of Fax of Intent, valid for 3 months 

beyond the expiry of Guarantee/Warranty period as per terms 

of Bid Document. 

26. Confirm quoted prices are inclusive of documentation and all 

other testing charges as per requirement of Bid Document 

including IBR (if applicable). 

27. Confirm acceptance to inspection requirement as per Bid 

Document. 

28. As inspection & certification of all goods shall be conducted 

by OWNER / MECON or by both. Confirm there shall be no 

extra charges since all personal & incidental expenses of 

MECON/Owner’s Inspectors shall be borne by the Owner. 

29. In case offer is based on import of raw material & 

components, please note & specify the following : 





TENDER FOR 




i) Offer have been made considering facility of Essentiality 

Certificate for availing concessional rate of customs duty on 

Project imports for import of raw materials and components, 

as per present EXIM POLICY. Project Essentiality Certificate 

and Payment Certificate, shall be arranged by vendor 

themselves. 

ii) Confirm that all such benefits have been passed on to GAIL. 

iii) Advise the rate of concessional Customs Duty, Surcharge on 

Customs Duty, CVD & Spl. Addl. Duty as applicable for Project 

imports and considered in quoted prices . 

iv) Confirm that benefit due to variations in Customs Duty shall 

be passed on to GAIL. 

v) Please note that GAIL’s responsibility shall be limited only to 

the extent of issuance of said documents as per EXIM policy 

& procedure and necessary liaison shall be maintained by 

bidder with all relevant statutory authorities for availing such 

benefits. 

vi) Owner will not provide any import licence for the same. 

30. Confirm that all Bank charges associated with Bidder’s Bank 

shall be borne by Bidder. 

31. a) Confirm acceptance in toto of the Terms & Conditions 

contained in 

i) Instructions to Bidders 

ii) General Conditions of Contract (GCC) 

iii) Special Conditions of Contract (SCC) 

iv) All other parts of tender documents/ attachments. 

b) All the terms & conditions have been indicated in this format 

(including annexure, if any) and have not been repeated in 

the offer elsewhere. It is noted and confirmed that Terms & 

Conditions indicated elsewhere in the offer including any 

Printed Terms & Conditions, shall not be considered by 

Owner. 

32. Customer references and confirmation of Utility requirements 

wherever applicable. 

33. Confirm complete technical literatures/ catalogues and Users 

reference list submitted along with offer. 

34. a) Furnish the annual financial turnover, net profit and net worth 

figures for the last three financial years. 





TENDER FOR 




b) Indicate that Annual Report for last three financial years 

alongwith unpriced bid has been submitted alongwith unprice 

bid. 

35. Confirm that unprice format is as per bid document. 

36. Confirm the power of attorney/ authorisation has been 

enclosed as per bid document. 

37. The bidder is required to state whether any of the Directors 

of bidder is not a relative of any Director of Owner or the 

Bidder is a firm in which any Director of Owner or his relative 

is a partner or the Bidder is a private company in which any 

Director of Owner is a member or Director. 

38. Have separate item-wise prices alongwith type of 

manufacturing process been indicated as per Schedule of Rate 


39. Have all Taxes, Duties & Levies etc. been included in the 

quoted prices. 

40. Are prices quoted as per terms of payment of Bid Document. 

41. Are the quoted Prices remain firm till tenure of the Contract? 

42. Have all charges towards all type of insurance as per Bid 

Document been included in the price quoted? 

43. Is “Security Deposit” clause of Bid Document acceptable? 

44. Are signed Original Tender Document (signed on each Page/ 

Drg.), Power of Attorney, Income Tax & Sales Tax Certificates, 

solvency certificate, Audited Balance sheet, PF Registration 

certificate submitted? 

45. Is item-wise ‘Mill’ for manufacturing alongwith its location has 

been furnished. 

46. Is “Force Majeure” clause of Bid Document acceptance? 

47. Are “Liquidated Damages” Clauses of Bid Document 

acceptable? 

48. Is “Arbitration Clause” of Bid Document acceptable? 





TENDER FOR 




49. Is completion of work as per Technical Specification 

acceptable? 

50. Is `Scope of Supply’ as per bid document acceptable? 

51. a) Has the bidder confirmed that there are `No Deviation’ to any 

Technical & Commercial terms & conditions of bid document. 

b) If yes, the same are furnished in the format given in bid 

document (Bidder to note that this is a ‘No Deviation’ tender). 

52. 52. a) Is there any litigation held in last 20 years or is there any 

pending litigation ? 

b) If yes, please enclosed details 

53. Confirm that you have not been banned or delisted by any 

Government or Quasi-Government agencies or Public Sector 

Undertaking. If you have been banned or delisted by any 

Govt. or Quasi-Government agency or Public Sector 

Undertaking, then this fact must be clearly stated. If this 

declaration is not furnished bid shall be treated as nonresponsive 

and liable for rejection. 

54. Owner reserves the right to make any change in the terms & 

conditions of the Bid Document and to reject any or all bids 

including those received late or incomplete. 

55. Confirm that all details in unpriced part have been submitted 

in 5 copies (1 Original + 4 copies). Bidding Document and 

drawings, signed and stamped on each page shall be 

submitted in original. 

56. Confirm that the following documents are submitted with 

Part-I. 

i) All documents in relevant Section as per CHECK LIST 

ii) Schedule of Rates/ Prices without specifying the 

rates/ prices are submitted in unpriced part, exactly 

as per the priced portion submitted in Part-II. In 

case some of items have not been quoted, such 

items should be identified in blank price format. 

iii) Addendum duly signed and stamped on each page as 

a token of acceptance (applicable if issued). 





TENDER FOR 




57. Rates/ amount must be filled in format for `Schedule of Rates’ 

enclosed as part of Bidding Document. If quoted in separate 

typed sheets and any variation in item description, unit or 

quantity is noticed, the bid is liable to be rejected. In any case, 

Bidder shall be presumed to have quoted against the tendered 

description of work and the same shall be binding on the Bidder. 

Please confirm. 

58. Confirm that deviation/ terms & conditions are not mentioned in 

the price part. In case any terms and condition is mentioned in 

the price part, the same shall be treated as null and void. 

59. Confirm that you have studied complete Bidding Document 

including Technical and commercial part and your Bid is in 

accordance with the requirements of the Bidding Document. 

60. Confirm that all costs resulting from safe execution of WORK, 

such as safety induction, use of protective clothing, safety 

glasses and helmet, safety precaution taken during monsoon, or 

any other safety measures to be undertaken by the Contractor 

for execution of work are included in the quoted rates. 

61. Confirm that the contents of bidding documents have not been 

altered / changed / modified after downloading the bid 

document. 

62. Indicate to option other than option-I has been offered : 

63. A) Confirm that the SUPPLY shall be guaranteed against 

defective materials/ workmanship etc. for a period of 24 

months from the last shipment or 12 months from the 

commissioning date, whichever is earlier, as per 

Guarantee/Warrantee conditions of Bid Document. 

B) Conform that works shall be Guaranteed against 

defective workmanship etc. for a period of 12 months from 

the date of completion of work as certified by Engineer-incharge 

in completion certificate. 

64. Confirm acceptance to PART ORDER. Incase of part ordering 

any value of part ordering, charges if quoted lumpsum and/or 

applicable to more than one item, shall be prorated on value 

basis. 

65. Confirm acceptance of repeat order(s) upto 50% of contract 

amount within 6 months from the date of basic order, as per 

terms of Bid Document except in the following cases: 





TENDER FOR 




a) The SOR contains Single item,then the above 50% 

Limit shall get extended to 100% of the Contract 

Value. 

b) In case the SOR contains more than one items and the 

value of any items in SOR for minimum quantity 

exceeds the 50% Limit of the Contract value,the 50% 

Limit shall get extended to such Limit to enable to 

order the minimum quantity of a item. 

66. Confirm that at the time of award of ORDER quantity may 

increase or decrease upto 15 % the quantity of GOODS 

specified in the Material Requisition, without any change in unit 

price or other terms and conditions. Variation beyond this limit 

will be subject to mutual agreement between the PURCHASER 

and the Seller. 



BIDDER CONFIRMS THAT IN CASE OF CONFLICTING VERSION OF VARIOUS TERMS & CONDITIONS AT 

DIFFERENT PLACES. THE CONFIRMATION FURNISHED AS ABOVE SHALL BE CONSIDERED OVER- 

RIDING AND FINAL AND ANY OTHER DEVIATION INDICATED ELSEWHERE SHALL BE TREATED AS 

REDUNDANT. 

Signature 

Name 

Designation 

Office Stamp 

Tel No. 

Fax No. 



TENDER FOR 




A2. BRIEF SUMMARY OF AGREED TERMS AND CONDITIONS 

FOR INDIGENOUS BIDDERS ONLY FOT SITE (Option-II & III) 

TOTAL PAGES – 7 

Bidder M/s ............................. Bid Document No................................ 

Offer Ref................................ 



This Questionnaire duly filled in should be returned along with each copy of Un-priced Bid. Clauses 

confirmed hereunder should not be repeated in the Bid. ALL THE COMMERCIAL TERMS & CONDITIONS 

SHOULD BE INDICATED IN THIS FORMAT ONLY. IF REQUIRED DETAILS INCLUDING DEVIATION TO 

GCC / SCC, IF ANY, SHOULD BE INDICATED AS AN ANNEXURE TO THIS FORMAT. 

SL. 

NO. 


1. It is noted and confirmed that deviations to Terms & 

Conditions shall lead to loading of prices or rejection of offer, 

as specified in the Bid Document. 

2. Bidder’s name and address 

3. Manufacturer’s Name & Address 

4. Indicate Country of origin of offered GOODS 

5. Indicate despatch point 

6. Please indicate the currency in which the offer is submitted 

other than Indian Rupees. 


8. Confirm that the offer shall remain valid for acceptance upto 

4 months from Final Bid Due Date/Date of Opening of Bids. 

9. Is Bank Guarantee/ Demand Draft for Earnest Money 

enclosed? If so, please indicate the following:- 

i) No. and date of B. G. / Draft 

ii) Name of Bank 

iii) B. G. valid upto 

iv) Is issuing Bank Indian Nationalized Bank / India 

Schedule Bank. 



TENDER FOR 




v) If schedule Bank then declaration from Bank that net 

worth more than Rs. 100 crores furnished. 

10. Please confirm whether the scope of work is complete as per 

Bill of Schedule 

11. Please note for compliance that currency once quoted shall 

not be permitted to be changed. 

12. Indicate Name & Contact Telephone/ Fax No. of person(s) to 

whom queries, if any, are to be addressed against your bid. 

13. Ensure and confirm that unit prices Quoted in ‘Price Breakup 

Schedule’, are on Ex-works basis inclusive of packing & 

forwarding/loading charges i.e. on FOT Despatch Point Basis. 

14. Please confirm that price quoted are as per price format given 

in bid document.. 

15. Please note that Owner shall not be compensating for any 

Foreign Exchange variation since bidder(s) have been 

permitted to quote in any currency. Exchange rate variations 

if sought in offer, shall lead to rejection of offer. 

16. Confirm acceptance of completion period as per requirement 

Specified in Bid Document to be reckoned from date of Fax of 

Intent (FOI). 

17. Indicate rate of central or local sales tax (CST/LST) whichever 

applicable, as quoted in price schedule & payable extra. 

i) CST without concessional Form. 

ii) Local Sales tax (in case supplies are made from originating 

state) without concessional form. 

18.a) Indicate present rate of terminal excise duty (ED) applicable 

on the supplies and as considered in price schedule. 

b) If there is any variation in Excise Duty at the time of supplies 

for any reason except statuary variation confirm the same will 

be borne by bidder. 

c) If excise duty is presently not applicable, confirm whether the 

same will be borne by bidder in case it becomes leviable later. 





TENDER FOR 




d) In case (b) or (c) is not acceptable, advise maximum rate of 

excise duty chargeable. 

e) It is noted that statutory variation in ED within contractual 

delivery shall be to Owner’s account. 

f) Indicate the percent rate of taxes for dump yard 

management. 


delay in beyond contractually agreed completion schedule as 


20. Confirm that in case of delay in completion of work beyond 

Contractual Completion Date (CCD) the invoice shall be 

submitted for the amount duly reduced to the extent of PRS. 

21. Confirm in case of delay in completion beyond CCD, any new 

or additional taxes and duties imposed after contractual 

delivery shall be to vendor’s account. 

22. Confirm acceptance of relevant Terms of Payment as 


23. Confirm quoted prices will remain firm and fixed till complete 

execution of the order. Fax of Intent shall be placed within 

offer validity as ‘Notification of Award of Contract’. 

24. Confirm that the Supplies & Work shall be guaranteed against 

defective materials/workmanship etc. as per Guarantee 

conditions of Bid Document / Addendum. 

25. Confirm that Contract-cum-Equipment-Performance Bank 

Guarantee (CPBG) for 10% of order/contract value shall be 

furnished within 30 days of Fax of Intent, valid for 3 months 

beyond the expiry of Guarantee/Warranty period as per terms 


26. Confirm quoted prices are inclusive of documentation and all 

other testing charges as per requirement of Bid Document 

including IBR (if applicable). 


Document. 

28. As inspection & certification of all goods shall be conducted 

by OWNER / MECON or by both. Confirm there shall be no 





TENDER FOR 




extra charges since all personal & incidental expenses of 

MECON/Owner’s Inspectors shall be borne by the Owner. 

29. In case offer is based on import of raw material & 

components, please note & specify the following : 

i) Offer have been made considering facility of Essentiality 

Certificate for availing concessional rate of customs duty on 

Project imports for import of raw materials and components, 

as per present EXIM POLICY. Project Essentiality Certificate 

and Payment Certificate, shall be arranged by vendor 

themselves. 

ii) Confirm that all such benefits have been passed on to GAIL. 

iii) Advise the rate of concessional Customs Duty, Surcharge on 

Customs Duty, CVD & Spl. Addl. Duty as applicable for Project 

imports and considered in quoted prices . 

iv) Confirm that benefit due to variations in Customs Duty shall 

be passed on to GAIL. 

v) Please note that GAIL’s responsibility shall be limited only to 

the extent of issuance of said documents as per EXIM policy 

& procedure and necessary liaison shall be maintained by 

bidder with all relevant statutory authorities for availing such 

benefits. 

vi) Owner will not provide any import licence for the same. 

30. Confirm that all Bank charges associated with Bidder’s Bank 

shall be borne by Bidder. 


contained in 


ii) General Conditions of Contract (GCC)– Both 


iv) All other parts of tender documents/ attachments. 

b) In case of Site work, confirm acceptance of Terms & 

Conditions for Site work as contained in the Bid Document. 

c) All the terms & conditions have been indicated in this format 

(including annexure, if any) and have not been repeated in 

the offer elsewhere. It is noted and confirmed that Terms & 

Conditions indicated elsewhere in the offer including any 





TENDER FOR 




Printed Terms & Conditions, shall not be considered by 

Owner. 

32. Customer references and confirmation of Utility requirements 

wherever applicable. 

33. Confirm complete technical literatures/ catalogues and Users 

reference list submitted along with offer. 

34. a) Furnish the annual financial turnover, net profit and net worth 

figures for the last three financial years. 

b) Indicate that Annual Report for last three financial years 

alongwith unpriced bid has been submitted alongwith unprice 

bid. 

35. Confirm that unprice format is as per bid document. 

36. Confirm the power of attorney/ authorisation has been 

enclosed as per bid document. 

37. The bidder is required to state whether any of the Directors 

of bidder is not a relative of any Director of Owner or the 

Bidder is a firm in which any Director of Owner or his relative 

is a partner or the Bidder is a private company in which any 

Director of Owner is a member or Director. 

38. Have separate item-wise prices been indicated as per Schedule 

of Rate of Bid Document. 

39. Have all Taxes, Duties & Levies etc. been included in the 

quoted prices. 

40. Are prices quoted as per terms of payment of Bid Document 

and include cost of warehouse / dump yard management. 

41. Are the quoted Prices remain firm till tenure of the Contract? 

42. Have all charges towards all type of insurance as per Bid 

Document been included in the price quoted? 

43. Is “Security Deposit” clause of Bid Document acceptable? 

44. Are signed Original Tender Document (signed on each Page/ 

Drg.), Power of Attorney, Income Tax & Sales Tax Certificates, 

solvency certificate, Audited Balance sheet, PF Registration 

certificate submitted? 





TENDER FOR 




45. Is item-wise ‘Mill’ for manufacturing alongwith its location has 

been furnished. 

46. Is “Force Majeure” clause of Bid Document acceptance? 

47. Are “Liquidated Damages” Clauses of Bid Document 

acceptable? 

48. Is “Arbitration Clause” of Bid Document acceptable? 

49. Is completion of work as per Technical Specification 

acceptable? 

50. Is `Scope of Work’ and `Scope of Supply’ as per bid document 

acceptable ? 

51. a) Has the bidder confirmed that there are `No Deviation’ 

to any Technical & Commercial terms & conditions of 

bid document. 

b) If yes, the same are furnished in the format given in 

bid document (Bidder to note that this is a ‘No 

Deviation’ tender). 

52. a) Is there any litigation held in last 20 years or is there 

any pending litigation ? 

b) If yes, please enclosed details 

53. Confirm that you have not been banned or delisted by any 

Government or Quasi-Government agencies or Public Sector 

Undertaking. If you have been banned or delisted by any 

Govt. or Quasi-Government agency or Public Sector 

Undertaking, then this fact must be clearly stated. If this 

declaration is not furnished bid shall be treated as nonresponsive 

and liable for rejection. 

54. Owner reserves the right to make any change in the terms & 

conditions of the Bid Document and to reject any or all bids 

including those received late or incomplete. 

55. Confirm that all details in unpriced part have been submitted 

in 5 copies (1 Original + 4 copies). Bidding Document and 

drawings, signed and stamped on each page shall be 

submitted in original. 





TENDER FOR 





Part-I. 

i) All documents in relevant Section as per CHECK LIST 


rates/ prices are submitted in unpriced part, exactly 

as per the priced portion submitted in Part-II. In 

case some of items have not been quoted, such 

items should be identified in blank price format. 

iii) Addendum duly signed and stamped on each page as 

a token of acceptance (applicable if issued). 

57. Rates/ amount must be filled in format for `Schedule of 

Rates’ enclosed as part of Bidding Document. If quoted in 

separate typed sheets and any variation in item description, 

unit or quantity is noticed, the bid is liable to be rejected. In 

any case, Bidder shall be presumed to have quoted against 

the tendered description of work and the same shall be 

binding on the Bidder. Please confirm. 

58. Confirm that deviation/ terms & conditions are not mentioned 

in the price part. In case any terms and condition is 

mentioned in the price part, the same shall be treated as null 

and void. 

59. Confirm that you have studied complete Bidding Document 

including Technical and commercial part and your Bid is in 

accordance with the requirements of the Bidding Document. 

60. Confirm your compliance to total Scope of Work mentioned in 

the Bidding Document. 

61. Confirm that you have proposed adequate project/ site 

organisation with qualified supervisory personnel having 

requisite experience including personnel responsible for 

safety, planning stores, QA/ QC etc. 

62. Confirm that all costs resulting from safe execution of WORK, 

such as safety induction, use of protective clothing, safety 

glasses and helmet, safety precaution taken during monsoon, 

or any other safety measures to be undertaken by the 

Contractor for execution of work are included in the quoted 

rates. 





TENDER FOR 




63. Confirm that the contents of bidding documents have not 

been altered / changed / modified after downloading the bid 

document. 

64. Please indicate option(s) offered. 







defective workmanship etc. for a period of 12 months from 

the date of completion of work as certified by Engineer-incharge 

in completion certificate. 

66. Confirm acceptance to PART ORDER. Incase of part ordering 

any value of part ordering, charges if quoted lumpsum and/or 

applicable to more than one item, shall be prorated on value 

basis. 

67. Confirm acceptance of repeat order(s) upto 50% of contract 

amount within 6 months from the date of basic order, as per 

terms of Bid Document except in the following cases: 



Value. 

b) In case the SOR contains more than one items and the 

value of any items in SOR for minimum quantity 

exceeds the 50% Limit of the Contract value,the 50% 

Limit shall get extended to such Limit to enable to 

order the minimum quantity of a item. 



specified in the Material Requisition, without any change in unit 

price or other terms and conditions. Variation beyond this limit 

will be subject to mutual agreement between the PURCHASER 

and the Seller. 



BIDDER CONFIRMS THAT IN CASE OF CONFLICTING VERSION OF VARIOUS TERMS & CONDITIONS AT 

DIFFERENT PLACES. THE CONFIRMATION FURNISHED AS ABOVE SHALL BE CONSIDERED OVER- 


REDUNDANT. 

Signature 

Name 

Designation 

Office Stamp 

Tel No. 

Fax No. 



TENDER FOR 




B1. BRIEF SUMMARY OF AGREED TERMS AND CONDITIONS 

FOR FOREIGN BIDDERS ONLY – FOB Basis (for Option-I) 

TOTAL PAGES - 6 

Bidder M/s ............................. 

Bid Document No................................ 

Offer Ref................................ 



This Questionnarie duly filled in should be returned alongwith each copy of Unpriced Bid. Clauses 

confirmed hereunder should not be repeated in the Bid. ALL THE COMMERCIAL TERMS & 

CONDITIONS SHOULD BE INDICATED IN THIS FORMAT ONLY. IF REQUIRED DETAILS INCLUDING 

DEVIATION TO GCC / SCC, IF ANY, SHOULD BE INDICATED AS AN ANNEXURE TO THIS FORMAT. 

SL. 

NO. 


1. Confirm that the offer contains firm & fixed unit and total 

prices on FOB port of shipment basis and Price Schedule 

attached with the Bid Document. 

1.1 a) Confirm that the quoted prices are inclusive of all taxes, 

duties, packing, forwarding, FOB delivery charges, transit 

insurance & all other charges etc. upto FOB Port of 

shipment. 

b) Export permit/ licence if required shall be bidder’s 

responsibility & any expenditure towards same will be 

borne by bidder. Confirm. 

1.2 Advise, the name of the Port of Shipment and confirm 

that this is an International Port of Exit. 

2. Confirmation that offer shall remain valid for acceptance 

upto 4 months from the final bid closing date/date of 



4. Manufacturer’s Name & Address. 

4.1 Bidder’s name and address. In case bidder is a supplier, 

manufacture’s authorisation is to be furnished. 

5. Indicate the Country of origin of offered GOODS 

6. Please indicate the currency in which the offer is 

submitted. 

7. Please furnish Bid Security details 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\12-Annexure-III to ITB - B-FOB.doc Page 1 of 7


a) Bid Security No. & Date 

b) Value 

c) Validity 

TENDER FOR 




8. Indicate Name & Contact Telephone/Fax No. of person to 

whom queries, if any, are to be addressed against your 

bid. 

9. Customer references and Confirmation of Utility 

requirements wherever applicable. 

10. Confirm complete technical literatures/ catalogues and 

Users reference list submitted along with offer. 

11. Confirm acceptance of Contractual Completion Date 

(CCD) as per the requirements specified in the Bid 

Document reckoned from the date of Fax of Intent (FOI). 

Fax of Intent shall be placed within offer validity as 

Notification of Award of Contract. 

12. Confirm that the quoted prices shall remain firm and fixed 

till complete execution of the Contract/Order. 


delay in completion beyond contractually agreed 

completion schedule as specified in the Bid Document. 

13.1 Further, confirm that in case of delay in Completion of 

work beyond Contractual Completion Date (CCD) the 

invoice shall be submitted for the amount duly reduced to 

the extent of PRS. 







defective workmanship etc. for a period of 12 months 

from the date of completion of work as certified by 

Engineer-in-charge in completion certificate. 

15. Confirm that Contract cum Equipment Performance Bank 

Guarantee (CPBG) for 10% of total Contract/ Order Value 

shall be furnished within 15 days of Fax of Intent valid for 

3 months beyond the expiry of contractual Guarantee/ 

Warranty period, as per terms of Bid Document. 


Annexure-III to ITB 



TENDER FOR 




16. Confirm acceptance to payment Terms as per Bid 

Document. 

17. In case confirmed L/C is required please confirm that 

charges towards such confirmation of L/C shall be borne 

by Bidder. 

18. All Bank Charges and Stamp Duties payable outside India 

in connection with payments to be made under this 

Contract shall be borne by the Bidder. 

19. Confirm quoted prices are inclusive of Documentation and 

all other testing charges as per requirement of Bid 

Document including IBR (if applicable). 


Document. 

21. As inspection & certification of all goods shall be 

conducted by MECON / OWNER / OWNER’s inspector; 

confirm there shall be no extra charges since all personal 

& incidental expenses of MECON/Owner’s Inspectors shall 

be borne by the Owner. 

22. Owner reserves the right to make any change in the 

terms and conditions of the Bid Document and to reject 

any or all bids including those received late or incomplete. 

23. Bids should be submitted directly by the Foreign Bidder 

without involving Indian Agent. 

In case of foreign bidders insisting for having an Indian 

Agent, please furnish following : 

i) The unavoidable justification for engaging the 

Indian Agent. 

ii) Name & complete address of Indian Agent 

iii) Tel. No. 

iv) Fax No. 

v) RBI Registration No. 

(Indian agent are required to get themselves 

registered with Reserve Bank of India). The 

payment to Indian Agent shall only be remitted 

after getting proof of registration with RBI, New 

Delhi. The payment to Overseas supplier shall be 

released through L/C after deducting the Indian 

Agent’s Commission. 

i) Agency Commission included in Quoted Prices as 

percentage of quoted FOB prices (payable in 

equivalent non-convertible Indian Rupees upon 





TENDER FOR 




complete execution of order & supplies are 

received & accepted) 

24. In case of foreign bidders involves an Indian associate 

please furnish following : 

i) The role of Indian Associate 

ii) Name & complete address of Indian Associate 

iii) Tel. No. 

iv) Fax No. 

v) E-mail address. 

vi) RBI Registration No., if any 

The payment to be released to Indian Associate 

as percentage of Indian Rupees component of 

contract price. 

vii) A copy of MOU submitted along with the bid 

viii) Confirmed that overall responsibility is of Foreign 

Bidder 

ix) A copy of following is enclosed: 

a) Sales Tax & Income Tax registration 

certificate 

b) PF registration certificate 

c) Solvancy certificate 

d) Audited Balance sheet for last 3 financial 

year 

25. Please indicate complete details such as the name, 

address and Account No. etc. of your Bankers (for L/C 

purpose). 


contained in 


ii) General Conditions of Contract (GCC) (Goods) 


iv) All other commercial documents / attachments of 

Bid Document. 

b) In case of Site work, confirm acceptance of attached 

Terms & Conditions for Site work contained in the Bid 

Document. 

c) In case of reservations, confirm that clause wise 

comments have been specified as annexure to this format 

(Bidder shall note that this is a no deviation tender). 

d) All the terms & conditions have been indicated in this 

format (including annexure, if any) and have not been 

repeated in the bid elsewhere. It is noted that Terms & 

Conditions indicated elsewhere including any Printed 

Terms & Conditions, shall not be considered by Owner. 





TENDER FOR 




27. Please confirm whether scope of work is complete as per 

price schedule. 

28. Has the power of attorney/ authorisation been enclosed 

as per IFB. 

29. It is noted that deviations to Terms & Conditions shall 

lead to loading of prices or rejection of bid, as specified in 

Bid Document. 

30. a) Furnish your Annual Financial Turnover, Net 

Profit, Net worth Report for the last three 

years alongwith unpriced bid. 

b) Indicate whether Financial Report, for last 

three financial year are enclosed. 

31. Following Clause of Bid document are acceptable: 

i) Force majeure 

ii) Liquidated Damages 

iii) Arbitration Clause 

32. Confirm that you have not been banned or delisted by 

any Government or Quasi-Government agencies or Public 

Sector Undertaking. If you have been banned or delisted 

by any Govt. or Quasi-Government agency or Public 

Sector Undertaking, then this fact must be clearly stated. 

If this declaration is not furnished bid shall be treated as 

non-responsive and liable for rejection. 

33. Confirm that all details in unpriced part have been 

submitted in 5 copies (1 Original + 4 copies). Bidding 

Document and drawings, signed and stamped on each 

page shall be submitted in original. 


Part-I. 

i) All documents in relevant Section as per CHECK 

LIST 


rates/ prices are submitted in unpriced part, 

exactly as per the priced portion submitted in 

Part-II. In case some of items have not been 

quoted, such items should be identified in blank 

price format. 

iii) Addendum(s) duly signed and stamped on each 

page as a token of acceptance (applicable if 

issued). 





TENDER FOR 






separate typed sheets and any variation in item 

description, unit or quantity is noticed, the bid is liable to 

be rejected. In any case, Bidder shall be presumed to 

have quoted against the tendered description of work and 

the same shall be binding on the Bidder. Please confirm. 

36. Confirm that deviation/ terms & conditions are not 

mentioned in the price part. In case any terms and 

condition is mentioned in the price part, the same shall 

be treated as null and void. 

37. Confirm that you have studied complete Bidding 

Document including Technical and commercial part and 

your Bid is in accordance with the requirements of the 

Bidding Document. 

38. Confirm your compliance to total Scope of Work 

mentioned in the Bidding Document. 


been altered / changed / modified after downloading the 

bid document. 

40. Confirm acceptance to PART ORDER. Incase of part 

ordering any value of part ordering, charges if quoted 

lumpsum and/or applicable to more than one item, shall be 

prorated on value basis. 

41. Confirm acceptance of repeat order(s) upto 50% of 

contract amount within 6 months from the date of basic 

order, as per terms of Bid Document except in the following 

cases: 



Value. 

b) In case the SOR contains more than one items and 

the value of any items in SOR for minimum 

quantity exceeds the 50% Limit of the Contract 

value,the 50% Limit shall get extended to such 

Limit to enable to order the minimum quantity of a 

item. 





TENDER FOR 






specified in the Material Requisition, without any change in 

unit price or other terms and conditions. Variation beyond 

this limit will be subject to mutual agreement between the 

PURCHASER and the Seller. 



BIDDER CONFIRMS THAT IN CASE OF CONFLICTING VERSION OF VARIOUS TERMS & CONDITIONS 

AT DIFFERENT PLACES, THE CONFIRMATION FURNISHED AS ABOVE SHALL BE CONSIDERED OVER- 


REDUNDANT. 

Signature 

Name 

Designation 

Office Stamp 

Fax No. 



TENDER FOR 






B2. BRIEF SUMMARY OF AGREED TERMS AND CONDITIONS 

FOR FOREIGN BIDDERS ONLY- FOT Site Basis (for Option-II & III) 

TOTAL PAGES - 6 

Bidder M/s ............................. 

Bid Document No................................ 

Offer Ref................................ 

This Questionnarie duly filled in should be returned alongwith each copy of Unpriced Bid. Clauses 

confirmed hereunder should not be repeated in the Bid. ALL THE COMMERCIAL TERMS & 

CONDITIONS SHOULD BE INDICATED IN THIS FORMAT ONLY. IF REQUIRED DETAILS INCLUDING 

DEVIATION TO GCC / SCC, IF ANY, SHOULD BE INDICATED AS AN ANNEXURE TO THIS FORMAT. 

SL. 

NO. 


1.a) Indicate Option(s) offered : 

1.b) Confirm that the offer contains firm & fixed unit and total 

prices on FOT Site (warehouse / dump yard) Basis and 

Price Schedule attached with the Bid Document. 

1.1 a) Confirm that the quoted prices are inclusive of all taxes, 

duties, packing, forwarding, FOT Site charges, transit 

insurance & all other charges etc. upto FOT Site. 

b) Export permit/ licence if required shall be bidder’s 

responsibility & any expenditure towards same will be 

borne by bidder. Confirm. 

1.2 Advise, the name of the Port of Shipment and confirm 

that this is an International Port of Exit. 

a) Bare Pipe 

b) Coated Pipe 

2. Confirmation that offer shall remain valid for acceptance 

upto 4 months from the final bid closing date/date of 



4. Manufacturer’s Name & Address. 

a) Bare Pipe 


4.1 Bidder’s name and address. In case bidder is a supplier, 

manufacture’s authorisation is to be furnished. 

5. Indicate the Country of origin of offered GOODS 

a) Bare Pipe 

D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\12-Annexure-III to ITB - B-FOT Site.doc Page 1 of 7



TENDER FOR 




6. Please indicate the currency in which the offer is 

submitted. 

7. Please furnish Bid Security details 

a) Bid Security No. & Date 

b) Value 

c) Validity 

8. Indicate Name & Contact Telephone/Fax No. of person to 

whom queries, if any, are to be addressed against your 

bid. 

9. Customer references and Confirmation of Utility 

requirements wherever applicable. 

10. Confirm complete technical literatures/ catalogues and 

Users reference list submitted along with offer. 

11. Confirm acceptance of Contractual Completion Date 

(CCD) as per the requirements specified in the Bid 

Document reckoned from the date of Fax of Intent (FOI). 

Fax of Intent shall be placed within offer validity as 

Notification of Award of Contract. 

12. Confirm that the quoted prices shall remain firm and fixed 

till complete execution of the Contract/Order. 


delay in completion beyond contractually agreed 

completion schedule as specified in the Bid Document. 

13.1 Further, confirm that in case of delay in Completion of 

work beyond Contractual Completion Date (CCD) the 

invoice shall be submitted for the amount duly reduced to 

the extent of PRS. 







defective workmanship etc. for a period of 12 months 

from the date of completion of work as certified by 

Engineer-in-charge in completion certificate. 





TENDER FOR 




15. Confirm that Contract cum Equipment Performance Bank 

Guarantee (CPBG) for 10% of total Contract/ Order Value 

shall be furnished within 15 days of Fax of Intent valid for 

3 months beyond the expiry of contractual Guarantee/ 

Warranty period, as per terms of Bid Document. 

16. Confirm acceptance to payment Terms as per Bid 

Document. 

17. Confirm acceptance to PART ORDER. Incase of part 

ordering any value of part ordering, charges if quoted 

lumpsum and/or applicable to more than one item, shall be 

prorated on value basis. 

18. All Bank Charges and Stamp Duties payable outside India 

in connection with payments to be made under this 

Contract shall be borne by the Bidder. 

19. Confirm quoted prices are inclusive of Documentation and 

all other testing charges as per requirement of Bid 

Document including IBR (if applicable). 


Document. 

21. As inspection & certification of all goods shall be 

conducted by MECON / OWNER / OWNER’s inspector; 

confirm there shall be no extra charges since all personal 

& incidental expenses of MECON/Owner’s Inspectors shall 

be borne by the Owner. 

22. Owner reserves the right to make any change in the 

terms and conditions of the Bid Document and to reject 

any or all bids including those received late or incomplete. 

23. Bids should be submitted directly by the Foreign Bidder 

without involving Indian Agent. 

In case of foreign bidders insisting for having an Indian 

Agent, please furnish following : 

i) The unavoidable justification for engaging the 

Indian Agent. 

ii) Name & complete address of Indian Agent 

iii) Tel. No. 

iv) Fax No. 

v) RBI Registration No. 

(Indian agent are required to get themselves 

registered with Reserve Bank of India). The 

payment to Indian Agent shall only be remitted 

after getting proof of registration with RBI, New 





TENDER FOR 




Delhi. The payment to Overseas supplier shall be 

released after deducting the Indian Agent’s 

Commission. 

vi) Agency Commission included in Quoted Prices as 

percentage of quoted CIF prices (payable in 

equivalent non-convertible Indian Rupees upon 

complete execution of order & supplies are 

received & accepted) 

24. In case of foreign bidders involves an Indian associate 

please furnish following : 

i) The role of Indian Associate 

ii) Name & complete address of Indian Associate 

iii) Tel. No. 

iv) Fax No. 

v) E-mail address. 

vi) RBI Registration No., if any 

The payment to be released to Indian Associate 

as percentage of Indian Rupees component of 

contract price. 

vii) A copy of MOU submitted along with the bid 

viii) Confirmed that overall responsibility is of Foreign 

Bidder 

ix) A copy of following is enclosed: 

a) Sales Tax & Income Tax registration 

certificate 

b) PF registration certificate 

c) Solvancy certificate 

d) Audited Balance sheet for last 3 financial 

year 

25. Please indicate complete details such as the name, 

address and Account No. etc. of your Bankers for e – 

payment, (if possible). 


contained in 


ii) General Conditions of Contract (GCC) – Both 


iv) All other commercial documents/ attachments of 

Bid Document. 

b) In case of Site work, confirm acceptance of attached 

Terms & Conditions for Site work contained in the Bid 

Document. 

c) In case of reservations, confirm that clause wise 

comments have been specified as annexure to this format 

(Bidder shall note that this is a no deviation tender). 





TENDER FOR 




d) All the terms & conditions have been indicated in this 

format (including annexure, if any) and have not been 

repeated in the bid elsewhere. It is noted that Terms & 

Conditions indicated elsewhere including any Printed 

Terms & Conditions, shall not be considered by Owner. 

27. Please confirm whether scope of work is complete as per 

price schedule. 

28. Has the power of attorney/ authorisation been enclosed 

as per IFB. 

29. It is noted that deviations to Terms & Conditions shall 

lead to loading of prices or rejection of bid, as specified in 

Bid Document. 

30. a) Furnish your Annual Financial Turnover, Net 

Profit, Net worth Report for the last three 

years alongwith unpriced bid. 

b) Indicate whether Financial Report, for last 

three financial year are enclosed. 

31. Following Clause of Bid document are acceptable: 

i) Force majeure 

ii) Liquidated Damages 

iii) Arbitration Clause 

32. Confirm that you have not been banned or delisted by 

any Government or Quasi-Government agencies or Public 

Sector Undertaking. If you have been banned or delisted 

by any Govt. or Quasi-Government agency or Public 

Sector Undertaking, then this fact must be clearly stated. 

If this declaration is not furnished bid shall be treated as 

non-responsive and liable for rejection. 

33. Confirm that all details in unpriced part have been 

submitted in 5 copies (1 Original + 4 copies). Bidding 

Document and drawings, signed and stamped on each 

page shall be submitted in original. 


Part-I. 

i) All documents in relevant Section as per CHECK 

LIST 


rates/ prices are submitted in unpriced part, 

exactly as per the priced portion submitted in 





TENDER FOR 




Part-II. In case some of items have not been 

quoted, such items should be identified in blank 

price format. 

iii) Addendum duly signed and stamped on each 

page as a token of acceptance (applicable if 

issued). 



separate typed sheets and any variation in item 

description, unit or quantity is noticed, the bid is liable to 

be rejected. In any case, Bidder shall be presumed to 

have quoted against the tendered description of work and 

the same shall be binding on the Bidder. Please confirm. 

36. Confirm that deviation/ terms & conditions are not 

mentioned in the price part. In case any terms and 

condition is mentioned in the price part, the same shall 

be treated as null and void. 

37. Confirm that you have studied complete Bidding 

Document including Technical and commercial part and 

your Bid is in accordance with the requirements of the 

Bidding Document. 

38. Confirm your compliance to total Scope of Work 

mentioned in the Bidding Document. 

39. Confirm that you have proposed adequate project/ site 

organisation with qualified supervisory personnel having 

requisite experience including personnel responsible for 

safety, planning stores, QA/ QC etc. 

40. Confirm that all costs resulting from safe execution of 

WORK, such as safety induction, use of protective 

clothing, safety glasses and helmet, safety precaution 

taken during monsoon, or any other safety measures to 

be undertaken by the Contractor for execution of work 

are included in the quoted rates. 


been altered / changed / modified after downloading the 

bid document. 

42. Confirm acceptance of repeat order(s) upto 50% of 

contract amount within 6 months from the date of basic 

order, as per terms of Bid Document except in the following 

cases: 





TENDER FOR 






Value. 

b) In case the SOR contains more than one items and 

the value of any items in SOR for minimum 

quantity exceeds the 50% Limit of the Contract 

value,the 50% Limit shall get extended to such 

Limit to enable to order the minimum quantity of a 

item. 



specified in the Material Requisition, without any change in 

unit price or other terms and conditions. Variation beyond 

this limit will be subject to mutual agreement between the 

PURCHASER and the Seller. 



BIDDER CONFIRMS THAT IN CASE OF CONFLICTING VERSION OF VARIOUS TERMS & CONDITIONS 

AT DIFFERENT PLACES, THE CONFIRMATION FURNISHED AS ABOVE SHALL BE CONSIDERED OVER- 


REDUNDANT. 

Signature 

Name 

Designation 

Office Stamp 

Fax No. 


CHECK LIST 

[Annexure – IV to Instruction to Bidder(ITB)] 

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TENDER FOR 




CHECK LIST FOR SUBMISSION OF BID 


Annexure-IV to ITB 

Bidder is requested to fill this check list and ensure that all details/ documents have been furnished 

as called for in the Bidding Document alongwith duly filled in, signed & stamped check list with 

each copy of the “Unpriced Part” of his bid. 

(A) EMD/ BG DETAILS ETC. 

(A.1) Letter of Submission (i.e. F-2 : Bid Form) 

Submitted 

(A.2) EMD/ BID GUARANTEE/ BID SECURITY 

Bidder to confirm that EMD/ 

Bid Guarantee/ Bid Security has 

Been submitted by them as 

per Tender Proforma (i.e. F4, F4A) 

Submitted 

(1) By Bank Guarantee 

BG No. ___________ dt. _______ from 

Bank ________________________ Branch __________ 

For Rs. ___________________ 

Valid Till ___________________ 

(2) By Demand Draft 

OR 

DD No. __________________ dt. _________ 

Drawn on _____________________________ 

For Rs. ___________________ 

Original shall be submitted in original copy and its zerox copy in other copies. 

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TENDER FOR 




(A.3) Tender fee : Submitted / Not Submitted 

(A.4) CHECK LIST 

This check list duly filled in 

Submitted 

(B) CONFIRMATION OF VARIOUS FORMATS 

(B.1) Past Similar work done during 

five years as per Format : F-8 

Submitted 

(B.2) Present Commitments as per Format : F-9 

Submitted 

(B.3) Financial Details as per Format : F-3A 

Submitted 

(B.4) Audited Balance Sheet including 

profit and loss account statement 

for the last three years 

Submitted 

Submitted for the years : 





(B.5) PF Registration Certificate 

TENDER FOR 




1) ______________________ 

2) ______________________ 

3) ______________________ 



Submitted PF Registration No. ____________ 

(B.6) Sales Tax Registration Certificate 

Submitted Sales Tax Registration No. _________ 

(B.7) Fresh Solvency certificate from your Bankers 

(Date of Issue of this certificate should not 

be earlier than 1 year from the date of 

opening of Techno-commercial Part) 

Submitted Certificate Dated _________________ 

From (Name of Bank ______________ 

_______________________________ 

(B.8) Power of Attorney in favour of the person 

who has signed the bid on stamp paper of 

appropriate value 

Submitted 

(B.9) Partnership Deed in case of partnership firm 

and Article of Association in case of limited 

company 

Submitted 



TENDER FOR 




(B.10) A copy of SOR (without prices) but duly filled 

in with Quoted/ Unquoted in each Cell of the 

format and duly signed & stamped as per 

SOR Format 

Submitted 

(C) NO DEVIATION & COMMERCIAL QUERY ETC. 

(C.1) No Deviation Confirmation 

as per Format - F-6 : 

Submitted 

(C.2) Reply to commercial questionnaire, 

technical questionnaire with Bidder’s 

reply/ confirmation 

Submitted 

(D) REGARDING TECHNICAL DETAILS 

(D.1) Technical Details/ Documents specified 

in Technical Part 

Submitted Not Applicable 


(E) CONFIRM THE FOLLOWING REGARDING OVERALL BID DOCUMENT 

(E.1) All pages of the bid have been page YES 

numbered in sequential manner 

(E.2) The bid has been submitted in requisite YES 

number of copies as specified in 

Instructions to Bidders 




TENDER FOR 




(E.3) Original copy of Bidding Document & YES 

Drawings alongwith Addendum, if any, 

has been submitted alongwith offer, 

duly signed and stamped on each page 

(E.4) Prices in ONE ORIGINAL COPY only YES 

have been submitted in a separately 

sealed envelope with price part 



(STAMP & SIGNATURE OF BIDDER) 


D:\Rajesh\IPPS - KG Basin\Tender\VD55\Line Pipe\Bare-Coated Pipe\012B\14-A-GCC Goods.doc 

PART – C

GENERAL CONDITIONS OF CONTRACT 

(GCC - GOODS) 

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TENDER FOR 





1 Definitions In this document, General Conditions of Contract (GCC-Goods), 

the following terms shall have the following respective 

meanings: 

1.0 BIDDER : Designates the individual or legal entity which 

has made a proposal, a tender or a bid with the aim of 

concluding a Contract with the PURCHASER. 

1.1 CONSULTANT [if engaged] shall mean M/s MECON 

Limited having its registered office at Doranda, Ranchi, 

Jharkhand (India) and an Engineering office at 15 th 

Floor, North Tower, Scope Minar, Laxmi Nagar District 

Centre, Delhi - 110 092, INDIA. The term consultant 

includes successors, assigns of M/s MECON Limited. 

1.2 CONTRACT shall mean Purchase Order/Contract and all 

attached exhibits and documents referred to therein and 

all terms and conditions thereof together with any 

subsequent modifications thereto. 

1.3 CONTRACT PRICE shall mean the price payable to the 

Seller under the Contract for the full and proper 

performance of his contractual obligations. 

1.4 COMPLETION DATE shall mean the date on which the 

goods are successfully commissioned by the Seller and 

handed over to the PURCHASER. 

1.5 COMMERCIAL OPERATION shall mean the condition of 

the operation in which the complete equipment covered 

under the Contract is officially declared by the 

PURCHASER to be available for continuous operation at 

different loads upto and including rated capacity. 

1.6 DELIVERY terms shall be interpreted as per INCO TERMS 

2000 in case of Contract with a foreign Bidder and as the 

date of LR/GR in the case of a contract with an Indian 

Bidder. 

1.7 DRAWINGS shall mean and include Engineering 

drawings, sketches showing plans, sections and 

elevations in relation to the Contract together with 

modifications and/or revisions thereto. 

1.8 ENGINEER or Engineer-in-Charge of the Project SITE 

shall mean the person designated from time to time by 

PURCHASER/CONSULTANT at SITE and shall include 

those who are expressly authorized by him to act for and 

on his behalf for operation of this CONTRACT. 

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1.9 FINAL ACCEPTANCE shall mean the PURCHASER’s 

written acceptance of the Works performed under the 

Contract after successful completion of performance and 

guarantee test. 

1.10 GOODS shall mean articles, materials, equipment, design 

and drawings, data and other property to be supplied by 

Seller to complete the contract. 

1.11 INSPECTOR shall mean any person or outside Agency 

nominated by PURCHASER/CONSULTANT through 

CONSULTANT to inspect equipment, stagewise as well as 

final, before dispatch, at SELLER’s works and on receipt 

at SITE as per terms of the CONTRACT. 

1.12 INITIAL OPERATION shall mean the first integral 

operation of the complete equipment covered under the 

Contract with sub-systems and supporting equipment in 

service or available for service. 

1.13 PURCHASER shall mean GAIL (INDIA) LIMITED (GAIL) 

having its registered office at 16, BHIKAIJI CAMA PLACE, 

R.K.PURAM, NEW DELHI-110066 (INDIA). The term 

PURCHASER includes successors, assigns of GAIL. 

1.14 PERFORMANCE AND GUARANTEE TESTS shall mean all 

operational checks and tests required to determine and 

demonstrate capacity, efficiency and operating 

characteristics as specified in the Contract documents. 

PROJECT designates the aggregate of the Goods and/or 

Services to be provided by one or more Contractors. 

Quantities – Bills of quantities 

Bills of quantities 

Designate the quantity calculations to be taken into 

account when these calculations are made from detailed 

or construction drawings, or from work actually 

performed, and presented according to a jointly agreed 

breakdown of the Goods and/or Services. 

1.15 SELLER shall mean the person, firm or company with 

whom PURCHASE ORDER/CONTRACT is placed/entered 

into by PURCHASER for supply of equipment, materials 

and services. The term Seller includes its successors and 

assigns. 

1.16 SERVICE shall mean erection, installation, testing, 

commissioning, provision of technical assistance, training 

and other such obligations of the Seller covered under 



2 Seller To Inform 

TENDER FOR 




the Contract. 


1.17 SITE designates the land and/or any other premises on, 

under, in or across which the Goods and/or Services 

have to be supplied, erected, assembled, adjusted, 

arranged and/or commissioned. 

1.18 SPECIFICATIONS shall mean and include schedules, 

details, description, statement of technical data, 

performance characteristics, standards (Indian as well as 

International) as applicable and specified in the Contract. 

1.19 SUB-CONTRACT shall mean order placed by the Seller, 

for any portion of the contracted work, after necessary 

consent and approval of PURCHASER. 

1.20 SUB-CONTRACTOR shall mean the person named in the 

CONTRACT for any part of the work or any person to 

whom any part of the CONTRACT has been sub-let by 

the SELLER with the consent in writing of the 

CONSULTANT/PURCHASER and will include the legal 

representatives, successors, and permitted assigns of 

such person. 

1.21 START-UP shall mean the time period required to bring 

the equipments covered under the Contract from an 

inactive condition, when construction is essentially 

complete to the state of readiness for trial operation. The 

start-up period shall include preliminary inspection and 

check out of equipment and supporting subsystems, 

initial operation of the complete equipments covered 

under the Contract to obtain necessary pre-trial 

operation data, perform calibration and corrective action, 

shutdown inspection and adjustment prior to the trial 

operation period. 

1.22 TESTS shall mean such process or processes to be 

carried out by the Seller as are prescribed in the Contract 

or considered necessary by PURCHASER or his 

representative in order to ascertain quality, 

workmanship, performance and efficiency of equipment 

or part thereof. 

1.23 TESTS ON COMPLETION shall mean such tests as 

prescribed in the Contract to be performed by the Seller 

before the Works are taken over by the PURCHASER. 

2.1 The Seller shall be deemed to have carefully examined all 

contract documents to his entire satisfaction. Any lack of 

information shall not in any way relieve the Seller of his 

responsibility to fulfill his obligation under the Contract. 



TENDER FOR 





3 Application 3.1 These General Conditions of Contract (GCC-Goods) shall 

apply to the extent that they are not superseded by 

provisions of other parts of the Contract. 

4 Country of Origin 1.1 For purposes of this Clause “origin” means the place 

where the Goods were mined, grown or produced, or 

from which the services are supplied. Goods are 

produced when, through manufacturing, processing or 

substantial and major assembling of components, a 

commercially recognized new product results that is 

substantially different in basic characteristics or in 

purpose or utility from its components. 

5 Scope of Contract 5.1 Scope of the CONTRACT shall be as defined in the 

PURCHASE ORDER/CONTRACT specifications, drawings 

and Annexure thereto. 

5.2 Completeness of the EQUIPMENT shall be the 

responsibility of the SELLER. Any equipment, fittings and 

accessories which may not be specifically mentioned in 

the specifications or drawings, but which are usual or 

necessary for the satisfactory functioning of the 

equipment (successful operation and functioning of the 

EQUIPMENT being SELLER’s responsibility) shall be 

provided by SELLER without any extra cost. 

5.3 The SELLER shall follow the best modern practices in the 

manufacture of high grade EQUIPMENT notwithstanding 

any omission in the specifications. The true intent and 

meaning of these documents is that SELLER shall in all 

respects, design, engineer, manufacture and supply the 

equipment in a thorough workmanlike manner and 

supply the same in prescribed time to the entire 

satisfaction of PURCHASER. 

5.4 The SELLER shall furnish twelve (12) copies in English 

language of Technical documents, final drawings, 

preservation instructions, operation and maintenance 

manuals, test certificates, spare parts catalogues for all 

equipments to the PURCHASER. 

5.5 The documents once submitted by the SELLER shall be 

firm and final and not subject to subsequent changes. 

The SELLER shall be responsible for any loss to the 

PURCHASER/CONSULTANT consequent to furnishing of 

incorrect data/drawings. 

5.6 All dimensions and weight should be in metric system. 

5.7 All equipment to be supplied and work to be carried out 

under the CONTRACT shall conform to and comply with 



TENDER FOR 





the provisions of relevant regulations/Acts(State 

Government or Central Government) as may be 

applicable to the type of equipment/work carried out and 

necessary certificates shall be furnished. 

5.8 The Seller shall provide cross sectional drawings, 

wherever applicable, to identify the spare part numbers 

and their location. The size of bearings, their make and 

number shall be furnished. 

5.9 Specifications, design and drawings issued to the SELLER 

alongwith RFQ and CONTRACT are not sold or given but 

loaned. These remain property of 

PURCHASER/CONSULTANT or its assigns and are subject 

to recall by PURCHASER/CONSULTANT. The SELLER and 

his employees shall not make use of the drawings, 

specifications and technical information for any purpose 

at any time except for manufacture against the 

CONTRACT and shall not disclose the same to any 

person, firm or corporate body, without written 

permission of PURCHASER/CONSULTANT. All such details 

shall be kept confidential. 

5.10 SELLER shall pack, protect, mark and arrange for 

despatch of EQUIPMENT as per instructions given in the 

CONTRACT. 

6 Standards 6.1 The GOODS supplied under the CONTRACT shall conform 

to the standards mentioned in the Technical 

Specifications, or such other standards which ensure 

equal or higher quality, and when no applicable 

standard is mentioned, to the authoritative standard 

appropriate to the GOODS’ country of origin and such 

standards shall be the latest issued by the concerned 

institution. 

7 Instructions, Direction 7.1 The materials described in the CONTRACT are to be 

& Correspondence 

supplied according to the standards, data sheets, tables, 

specifications and drawings attached thereto and/or 

enclosed with the CONTRACT, itself and according to all 

conditions, both general and specific enclosed with the 

contract, unless any or all of them have been modified or 

cancelled in writing as a whole or in part. 

a. All instructions and orders to SELLER shall, excepting 

what is herein provided, be given by 

PURCHASER/CONSULTANT. 

b. All the work shall be carried out under the direction 

of and to the satisfaction of 


c. All communications including technical/commercial 

clarifications and/or comments shall be addressed to 



TENDER FOR 





CONSULTANT in quintuplicate with a copy to 

PURCHASER and shall always bear reference to the 

CONTRACT. 

d. Invoices for payment against CONTRACT shall be 

addressed to PURCHASER. 

e. The CONTRACT number shall be shown on all 

invoices, communications, packing lists, containers 

and bills of lading, etc. 

8 Contract Obligations 8.1 If after award of the contract, the Seller does not 

acknowledge the receipt of award or fails to furnish the 

performance guarantee within the prescribed time limit, 

the PURCHASER reserves the right to cancel the contract 

and apply all remedies available to him under the terms 

and conditions of this contract. 

9 Modification In 

Contract 

10 Use of Contract 

Documents & 

Information 

8.2 Once a contract is confirmed and signed, the terms and 

conditions contained therein shall take precedence over 

the Seller’s bid and all previous correspondence. 

9.1 All modifications leading to changes in the CONTRACT 

with respect to technical and/or commercial aspects 

including terms of delivery, shall be considered valid only 

when accepted in writing by PURCHASER/CONSULTANT 

by issuing amendment to the CONTRACT. Issuance of 

acceptance or otherwise in such cases shall not be any 

ground for extension of agreed delivery date and also 

shall not affect the performance of contract in any 

manner except to the extent mutually agreed through a 

modification of contract. 

9.2 PURCHASER/CONSULTANT shall not be bound by any 

printed conditions or provisions in the SELLER’s Bid 

Forms or acknowledgment of CONTRACT, invoices, 

packing list and other documents which purport to 

impose any conditions at variance with or supplemental 

to CONTRACT. 

10.1 The Seller shall not, without the 

PURCHASER’s/CONSULTANT’s prior written consent, 

disclose the CONTRACT or any provision thereof, or any 

specification, plan, drawing, pattern, sample or 

information furnished by or on behalf of the PURCHASER 

in connection therewith, to any person other than a 

person employed by the SELLER in the performance of 

the CONTRACT. Disclosure to any such employed person 

shall be made in confidence and shall extend only so far 

as may be necessary for purpose of such performance. 

10.1 The SELLER shall not, without the PURCHASER’s prior 

written consent, make use of any document or 

information enumerated in Article 10.1. except for 



11 Patent Rights, Liability 

& Compliance of 

Regulations 

TENDER FOR 




purpose of performing the CONTRACT. 


11.1 SELLER hereby warrants that the use or sale of the 

materials delivered hereunder will not infringe claims of 

any patent covering such material and SELLER agrees to 

be responsible for and to defend at his sole expense all 

suits and proceedings against PURCHASER based on any 

such alleged patent infringement and to pay all costs, 

expenses and damages which PURCHASER and/or 

CONSULTANT may have to pay or incur by reason of any 

such suit or proceedings. 

11.2 The SELLER shall indemnify the PURCHASER against all 

third party claims of infringement of patent, trade mark 

or industrial design rights arising from use of the GOODS 

or any part thereof in the PURCHASER’s country. 

11.3 SELLER shall also protect and fully indemnify the 

PURCHASER from any claims from SELLER’S 

workmen/employees or their heirs, dependants, 

representatives, etc. or from any other person/persons or 

bodies/companies etc. for any acts of commissions or 

omission while executing the CONTRACT. 

11.4 SELLER shall be responsible for compliance with all 

requirements under the laws and shall protect and 

indemnify completely the PURCHASER from any 

claims/penalties arising out of any infringements. 

12 Performance 

12.1 Within 15 days after the SELLER’s receipt of notification 

Guarantee 

of award of the CONTRACT, the SELLER shall furnish 

Performance Guarantee in the form of Bank 

Guarantee/irrevocable Letter of Credit to the 

12.2 

PURCHASER, in the form provided in the Bidding 

Documents, for an amount equivalent to 10% of the 

total value of the CONTRACT. 

The proceeds of Performance Guarantee shall be 

appropriated by the PURCHASER as compensation for 

any loss resulting from the SELLER’s failure to complete 

his obligations under the CONTRACT without prejudice to 

any of the rights or remedies the PURCHASER may be 

entitled to as per terms and conditions of CONTRACT. 

The proceeds of this Performance Guarantee shall also 

govern the successful performance of Goods and 

Services during the entire period of Contractual 

12.3 

Warrantee/Guarantee. 

The performance guarantee shall be denominated in the 

currency of the CONTRACT. 

12.4 The Performance Guarantee shall be valid for the 

duration of 90 days beyond the expiry of 

Warrantee/Guarantee period. The Bank Guarantee will 

be discharged by PURCHASER not later than 6 months 

from the date of expiration of the Seller’s entire 

obligations, including any warrantee obligations, under 

the CONTRACT. 



13 Inspection, Testing & 

Expediting 

TENDER FOR 





13.1 The PURCHASER or its representative shall have the right 

to inspect and/or to test the GOODS to confirm their 

conformity to the CONTRACT specifications. The special 

conditions of CONTRACT and/or the Technical 

Specifications shall specify what inspections and tests the 

PURCHASER requires and where they are to be 

conducted. The PURCHASER shall notify the SELLER in 

writing the identity of any representative(s) retained for 

these purposes. 

13.2 The inspections and tests may be conducted on the 

premises of the SELLER or his sub-contractor(s), at point 

of DELIVERY and/or at the GOODS’ final destination, 

When conducted on the premises of the SELLER or his 

sub-contractor (s), all reasonable facilities and assistance 

including access to the drawings and production data 

shall be furnished to the inspectors at no charge to the 

PURCHASER. 

13.3 Should any inspected or tested GOODS fail to conform to 

the specifications, the PURCHASER may reject them and 

the SELLER shall either replace the rejected GOODS or 

make all alterations necessary to meet Specifications’ 

requirements, free of cost to the PURCHASER. 

13.4 The PURCHASER’s right to inspect, test and where 

necessary reject the GOODS after the GOODS’ arrival in 

the PURCHASER’s country shall in no way be limited or 

waived by reason of the GOODS having previously been 

inspected, tested and passed by the PURCHASER, or 

their representative prior to the GOODS shipment from 

the country of origin. 

13.5 The INSPECTOR shall follow the progress of the 

manufacture of the GOODS under the CONTRACT to 

ensure that the requirements outlined in the CONTRACT 

are not being deviated with respect to schedule and 

quality. 

13.6 SELLER shall allow the INSPECTOR to visit, during 

working hours, the workshops relevant for execution of 

the CONTRACT during the entire period of CONTRACT 

validity. 

13.7 In order to enable PURCHASER’s representatives to 

obtain entry visas in time, SELLER shall notify 

13.8 

PURCHASER two months before assembly, testing and 

packing of main EQUIPMENT. If requested, SELLER shall 

assist PURCHASER’s representatives in getting visas in 

the shortest possible time (applicable only in case of 

foreign order). 

SELLER shall place at the disposal of the INSPECTOR, 

free of charge, all tools, instruments, and other 

apparatus necessary for the inspection and/or testing of 

the GOODS. The INSPECTOR is entitled to prohibit the 



TENDER FOR 





use and dispatch of GOODS and/or materials which have 

failed to comply with the characteristics required for the 

GOODS during tests and inspections. 

13.9 SELLER shall advise in writing of any delay in the 

inspection program at the earliest, describing in detail 

the reasons for delay and the proposed corrective action. 

13.10 ALL TESTS and trials in general, including those to be 

carried out for materials not manufactured by SELLER 

shall be witnessed by the INSPECTOR. Therefore, 

SELLER shall confirm to PURCHASER by fax or e-mail 

about the exact date of inspection with at least 30 days 

notice. SELLER shall specify the GOODS and quantities 

ready for testing and indicate whether a preliminary or 

final test is to be carried out. 

13.11 If on receipt of this notice, PURCHASER should waive the 

right to witness the test, timely information will be 

given accordingly. 

13.12 Any and all expenses incurred in connection with tests, 

preparation of reports and analysis made by qualified 

laboratories, necessary technical documents, testing 

documents and drawings shall be at SELLER’s cost. The 

technical documents shall include the reference and 

numbers of the standards used in the construction and, 

wherever deemed practical by the INSPECTOR, copy of 

such standards. 

13.13 Nothing in Article-13 shall in any way release the SELLER 

from any warrantee or other obligations under this 

CONTRACT. 

13.14 Arrangements for all inspections required by Indian 

Statutory Authorities and as specified in technical 

specifications shall be made by SELLER. 

13.15 Inspection & Rejection of Materials by consignees 

When materials are rejected by the consignee, the 

supplier shall be intimated with the details of such 

rejected materials, as well as the reasons for their 

rejection, also giving location where such materials are 

lying at the risk and cost of the contractor/supplier. The 

supplier will be called upon either to remove the 

materials or to give instructions as to their disposal 

within 14 days and in the case of dangerous, infected 

and perishable materials within 48 hours, failing which 

the consignee will either return the materials to the 

contractor freight to pay or otherwise dispose them off at 

the contractor’s risk and cost. The PURCHASER shall 

also be entitled to recover handling and storage charges 

for the period, during which the rejected materials are 

not removed @ 5% of the value of materials for each 

month or part of a month till the rejected materials are 

finally disposed off. 

14 Time Schedule & 14.1 Time Schedule Network/Bar Chart 



TENDER FOR 





Progress Reporting 14.1.1 Together with the Contract confirmation, SELLER 

shall submit to PURCHASER, his time schedule 

regarding the documentation, manufacture, 

testing, supply, erection and commissioning of 

the GOODS. 

14.1.2 The time schedule will be in the form of a network 

or a bar chart clearly indicating all main or key 

events regarding documentation, supply of raw 

materials, manufacturing, testing, delivery, 

erection and commissioning. 

14.1.3 The original issue and subsequent revisions of 

SELLER’s time schedule shall be sent to 

PURCHASER. 

14.1.4 The time schedule network/bar chart shall be 

updated at least every second month. 

14.2 Progress Trend Chart/Monthly Report 

14.2.1 SELLER shall report monthly to PURCHASER, on 

the progress of the execution of CONTRACT and 

achievement of targets set out in time bar chart. 

14.2.2 The progress will be expressed in percentages as 

shown in the progress trend chart attached to 

the Time Schedule specification. 

14.2.3 The first issue of the Progress Trend Chart will be 

forwarded together with the time bar chart 

alongwith CONTRACT confirmation. 

14.3.1 PURCHASER’s/CONSULTANT’s representatives 

14.4 

shall have the right to inspect SELLER’s premises 

with a view to evaluating the actual progress of 

work on the basis of SELLER’s time schedule 

documentation. 

14.3.2 Irrespective of such inspection, SELLER shall 

advise CONSULTANT, with copy to PURCHASER, 

at the earliest possible date of any anticipated 

delay in the progress. 

Notwithstanding the above, in case progress on the 

execution of contract at various stages is not as per 

phased time schedule and is not satisfactory in the 

opinion of the PURCHASER/CONSULTANT which shall be 

conclusive or SELLER shall neglect to execute the 

CONTRACT with due diligence and expedition or shall 

contravene the provisions of the CONTRACT, 

PURCHASER/CONSULTANT may give notice of the same 

in writing to the SELLER calling upon him to make good 

the failure, neglect or contravention complained of. 

Should SELLER fail to comply with such notice within the 

period considered reasonable by PURCHASER/ 

CONSULTANT, the PURCHASER/ CONSULTANT shall 

have the option and be at liberty to take the CONTRACT 

wholly or in part out of the SELLER’s hand and make 

alternative arrangements to obtain the requirements and 



TENDER FOR 





completion of CONTRACT at the SELLER’s risk and cost 

and recover from the SELLER, all extra cost incurred by 

the PURCHASER on this account. In such event 

PURCHASER/CONSULTANT shall not be responsible for 

any loss that the SELLER may incur and SELLER shall not 

be entitled to any gain. PURCHASER/CONSULTANT shall, 

in addition, have the right to encash Performance 

Guarantee in full or part. 

15 Delivery & Documents 15.1Delivery of the GOODS shall be made by the SELLER in 

accordance with terms specified in the CONTRACT, and the 

goods shall remain at the risk of the SELLER until delivery has 

been completed. 

15.2 Delivery shall be deemed to have been made : 

a) In the case of FOB, CFR & CIF Contracts, when the 

Goods have been put on board the ship, at the 

specified port of loading and a clean Bill of Lading is 

obtained. The date of Bill of Lading shall be 

considered as the delivery date. 

b) In case of FOT despatch point contract (For Indian 

bidder), on evidence that the goods have been 

loaded on the carrier and a negotiable copy of the 

GOODS receipt obtained. The date of LR/GR shall 

be considered as the date of delivery. 

c) In case of FOT site (for Indian bidders) on receipt of 

goods by PURCHASER/Consultant at the designated 

site(s). 

15.3 The delivery terms are binding and essential and 

consequently, no delay is allowed without the written 

approval of PURCHASER/CONSULTANT. Any request 

concerning delay will be void unless accepted by 

PURCHASER/CONSULTANT through a modification to the 

CONTRACT. 

15.4 Delivery time shall include time for submission of 

drawings for approval, incorporation of comments, if any, 

and final approval of drawings by 


15.5 In the event of delay in delivery, Price Reduction 

Schedule as stipulated in Article – 26 shall apply. 

15.6 The documentation, in English Language, shall be 

delivered in due time, in proper form and in the required 

number of copies as specified in the contract. 

15.7 The additional copies of final drawings and instructions 

will be included in the package of goods, properly 

enveloped and protected. 

15.8 The SELLER should comply with the Packing, Marking 

and Shipping Documentation Specifications enclosed. 

16 Transit Risk Insurance 16.1 All goods supplied under the contract shall be fully 



TENDER FOR 





insured in a freely convertible currency against loss or 

damage incidental to manufacture or acquisition, 

transportation, storage and delivery. 

16.2 Where delivery is on FOB or CFR basis, marine insurance 

shall be the responsibility of the Purchaser. 

Insurance Requirements : 

Indigenous Bidders : Transit risk insurance 

from F.O.T. despatch 

point onwards shall be 

arranged and borne by 

GAIL. 

Foreign Bidders : Marine insurance as well as 

transit insurance in Purchaser’s 

country shall be arranged and 

borne by GAIL. 

The SELLER shall ensure that in effecting despatch of 

materials, the primary responsibility of the carriers for 

safe movement is always retained so that the 

PURCHASER’s interests are fully safeguarded and are in 

no way jeopardised. The Seller shall furnish the cost of 

materials against each equipment. 

16.2 PURCHASER’s Insurance Agent : 

[The name and address-as mentioned under SCC] 

17 Transportation 17.1 Where the SELLER is required under the CONTRACT to 

deliver the GOODS FOB, transport of the GOODS until 

delivery, that is, upto and including the point of putting 

the GOODS on board the export conveyance at the 

specified port of loading, shall be arranged and paid for 

by the SELLER and the cost thereof shall be included in 

the Contract price. 

17.2 Where the SELLER is required under the CONTRACT to 

deliver the GOODS CFR or CIF, transport of the Goods to 

the port of discharge or such other point in the country 

of destination as shall be specified in the CONTRACT 

shall be arranged and paid for by the SELLER and the 

cost thereof shall be included in the Contract price. 

18 Incidental Services 18.1 The Seller may be required to provide any or all of the 

following services: 

18.1.1 Performance or supervision of onsite assembly and/or 

start-up of the supplied Goods: 

18.1.2 Furnishing tools required for assembly and/or 

maintenance of the supplied Goods: 

18.1.3 Performance or supervision or maintenance and/or repair 

of the supplied Goods, for a period of time agreed by the 



19 Spare Parts, 

Maintenance Tools, 

Lubricants 

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parties, provided that this service shall not relieve the 

Seller of any warrantee/guarantee obligations under the 

Contract. 

18.1.4 Training of the Purchaser’s personnel at the Seller’s plant 

and/or at Site, in assembly, start-up operation, 

18.2 

maintenance and/or repair of the supplied Goods at no 

extra cost. However, Purchaser will bear boarding, 

lodging & personal expenses of Trainees. 

Prices charged by the Seller for the preceding incidental 

services, shall not exceed the prevailing rates charged to 

other parties by the Seller for similar services. 

18.3 When required, Seller shall depute necessary personnel 

for supervision and/or erection of the Equipment at site 

for duration to be specified by Purchaser on mutually 

agreed terms. Seller’s personnel shall be available at 

Site within seven days for emergency action and twentyone 

days for medium and long-term assistance, from the 

date of notice given by Purchaser. 

18.4 The cost of incidental services shall not be included in 

the quoted prices. The cost of applicable incidental 

services should be shown separately in the price 

schedules. 

19.1 Seller may be required to provide any or all of the 

following materials and notification pertaining to spare 

parts manufactured or distributed by the Seller. 

19.1.1 Such spare parts as the Purchaser may opt to purchase 

from the Seller, provided that his option shall not 

relieve the Seller of any 

under the Contract, and 

warrantee obligations 

19.1.2 In the event of termination of production of the spare 

parts: 

i) Advance notification to the Purchaser of the 

pending termination, in sufficient time to permit 

the Purchaser to procure needed requirements, 

and 

ii) Following such termination, furnishing at no cost 

to the Purchaser, the blue prints, drawings and 

specifications of the spare parts, if any when 

requested. 

19.2 Seller shall supply item wise list with value of each item 

of spare parts and maintenance tools requirements, 

along with full details of manufacturers/vendors for 

such spares/maintenance tools for : 

19.2.1 The construction, execution and commissioning. 



TENDER FOR 





19.2.2 2 years operation and maintenance. 

19.3 Spare parts shall be new and of first class quality as per 

engineering standards/ codes, free of any defects (even 

concealed), deficiency in design, materials and 

workmanship and also shall be completely 

19.4 

interchangeable with the corresponding parts. 

Type and sizes of bearings shall be clearly indicated. 

19.5 Spare parts shall be packed for long storage under 

tropical climatic conditions in suitable cases, clearly 

marked as to intended purpose. 

19.6 A list of special tools and gauges required for normal 

maintenance and special handling and lifting appliances, 

if any, for the Goods shall be submitted to Purchaser. 

19.7 Bidders should note that if they do not comply with 

Clause 19.2 above, their quotation may be rejected. 

19.8 Lubricants 

19.8.1 Whenever lubricants are required, Seller shall indicate 

the quantity of lubricants required for the first filling, the 

frequency of changing, the quantity of lubricants 

required for the one year’s continuous operation and the 

types of recommended lubricants indicating the 

commercial name (trade-mark), quality and grade. 

19.8.2 If Seller is unable to recommend specific oil, basic 

recommended characteristics of the lubricants shall be 

given. 

19.8.3 Seller shall indicate various equivalent lubricants 

available in India. 

20 Guarantee 20.1 All Goods or Materials shall be supplied strictly in 

accordance with the specifications, drawings, data 

sheets, other attachments and conditions stated in the 

Contract. 

No deviation from such specifications or alterations or of 

these conditions shall be made without PURCHASER’S 

/CONSULTANT’S agreement in writing which must be 

obtained before any work against the order is 

commenced. All materials supplied by the SELLER 

pursuant to the Contract (irrespective of whether 

engineering, design data or other information has been 

furnished, reviewed or approved by 

PURCHASER/CONSULTANT) are guaranteed to be of the 

best quality of their respective kinds (unless otherwise 

specifically authorised in writing by 

PURCHASER/CONSULTANT) and shall be free from faulty 

design, workmanship and materials, and to be of 



TENDER FOR 





sufficient size and capacity and of proper materials so as 

to fulfil in all respects all operating conditions, if any, 

specified in the Contract. 

If any trouble or defect, originating with the design, 

material, workmanship or operating characteristics of any 

materials, arises at any time prior to twelve(12) months 

from the date of the first commercial operation of the 

Plant for which the materials supplied under the 

Contract form a part thereof, or twenty four (24) months 

from the date of last shipment whichever period shall 

first expire, and the SELLER is notified thereof, SELLER 

shall, at his own expense and as promptly as possible, 

make such alterations, repairs and replacements as may 

necessary to permit the materials to function in 

accordance with the specifications and to fulfil the 

foregoing guarantees. 

PURCHASER/CONSULTANT may, at his option, remove 

such defective materials, at SELLER’S expense in which 

event SELLER shall, without cost to 

PURCHASER/CONSULTANT and as promptly as possible, 

furnish and install proper materials. Repaired or 

replaced materials shall be similarly guaranteed by the 

SELLER for a period of no less than twelve (12) months 

from the date of replacement/repair. 

In the event that the materials supplied do not meet the 

specifications and/or not in accordance with the drawings 

data sheets or the terms of the Contract and rectification 

is required at site, PURCHASER/CONSULTANT shall notify 

the SELLER giving full details of differences. The SELLER 

shall attend the site within seven (7) days of receipt of 

such notice to meet and agree with representatives of 

PURCHASER/CONSULTANT, the action required to 

correct the deficiency. Should the SELLER fail to attend 

meeting at Site within the time specified above, 

PURCHASER/CONSULTANT shall immediately rectify the 

work/materials and SELLER shall reimburse PURCHASER 

all costs and expenses incurred in connection with such 

trouble or defect. 

20.2 PERFORMANCE GUARANTEE OF EQUIPMENT 

20.2.1 SELLER shall guarantee that the performance of the 

EQUIPMENT supplied under the CONTRACT shall be 

strictly in conformity with the specifications and shall 

perform the duties specified under the CONTRACT. 

20.2.2 If the SELLER fails to prove the guaranteed performance 

of the EQUIPMENT set forth in the specification, the 

SELLER shall investigate the causes and carry out 

necessary rectifications /modifications to achieve the 

guaranteed performance. In case the SELLER fails to do 

so within a reasonable period, the SELLER shall replace 



21 Terms of Payment 

TENDER FOR 





the EQUIPMENT and prove guaranteed performance of 

the new equipment without any extra cost to 

PURCHASER. 

20.2.3 If the SELLER fails to prove the guarantee within a 

reasonable period, PURCHASER/CONSULTANT shall have 

the option to take over the EQUIPMENT and rectify, if 

possible, the EQUIPMENT to fulfil the guarantees and/or 

to make necessary additions to make up the deficiency at 

Seller’s risk and cost. All expenditure incurred by the 

PURCHASER/CONSULTANT in this regard shall be to 

SELLER’s account. 

21.1 The method of payment to be made to the SELLER under 

this CONTRACT shall be specified in the Special 

Conditions of Contract. 

21.2 The type(s) of payment to be made to the SELLER under 

this CONTRACT shall be specified in the Special 

Conditions of Contract. 

21.3 The SELLER’s request(s) for payment shall be made to 

the PURCHASER in writing accompanied by an invoice 

describing, as appropriate, the Goods delivered and 

services performed, and by shipping documents 

submitted, and upon fulfillment of other obligations 

stipulated in the Contract. 

21.5 Payment will be made in the currency or currencies in 

which the Contract Price has been stated in the SELLER’s 

bid, as well as in other currencies in which the SELLER 

had indicated in his bid that he intends to incur 

expenditure in the performance of the Contract and 

wishes to be paid. If the requirements are stated as a 

percentage of the bid price alongwith exchange rates 

used in such calculations these exchange rates shall be 

maintained. 

General Notes: 

1. All foreign currency payments to foreign bidder shall 

be released through an irrevocable Letter of Credit, 

which shall be opened through Government of India 

Nationalised Bank and hence shall not be confirmed. 

In case any bidder insists on confirmation, charges 

towards confirmation shall be borne by him. L/C 

shall be established within 30 days after receipt of 

unconditional acceptance of Letter /Fax of Intent 

together with Performance Guarantee for 10% of 

total order/Contract value. 

2. For dispatches on FOT dispatch point (in India) 

basis, the payment shall be through PURCHASER’s 

bank. Payment through Bank, wherever applicable, 

shall be released as per normal banking procedures. 

3. Payment shall be released within 30 days after 



TENDER FOR 





receipt of relevant documents complete in all 

respects. 

4. All bank charges incurred in connection with 

payments shall be to Seller’s account in case of 

Indian bidders and to respective accounts in case of 

Foreign bidder. 

5. Unless otherwise specifically stated in bid document, 

all payments shall be made in the currency quoted. 

6. No interest charges for delay in payments, if any, 

shall be payable by PURCHASER. 

7. In case of Indian bidder, variation, if any, on account 

of customs duty on their built-in- import content, as 

per terms of bid document, shall be claimed 

separately by bidder after receipt of goods at site (s). 

However, any price benefits to the PURCHASER, on 

account of such variation as per terms specified in 

the bid document, shall be passed on to the 

PURCHASER alongwith invoicing itself. 

8. Agency commission, if any, to Indian agent for 

Foreign bidders, indicated in prices, shall be paid to 

the agent in equivalent Indian Rupees on receipt and 

acceptance of material at site. 

22 Prices 22.1 Prices charged by the SELLER for Goods delivered and 

services performed under the CONTRACT shall not, with 

the exception of any price adjustments authorized by the 

Contract vary from the prices quoted by the SELLER in 

his bid. 

23 Subletting & 

Assignment 

24 Time As Essence of 

Contract 

23.1 The contractor shall not without previous consent in 

writing of the PURCHASER authority, sublet, transfer or 

assign the contract or any part thereof or interest 

therein or benefit or advantage thereof in any manner 

whatsoever. Provided, nevertheless, that any such 

consent shall not relieve the contractor from any 

obligation, duty or responsibility under the contract. 

24.1 The time and date of delivery/completion of the 

GOODS/SERVICES as stipulated in the Contract shall be 

deemed to be the essence of the Contract. 

25 Delays In The Seller’s 25.1 If the specified delivery schedule is not adhered to or the 

Performance 

progress of manufacture or supply of the items is not 

satisfactory or is not in accordance with the progress 

schedule the PURCHASER has the right to: 

i) hire for period of delay from elsewhere goods which 

in PURCHASER’s opinion will meet the same purpose 

as the goods which are delayed and SELLER shall be 

liable without limitation for the hire charges; or 

ii) cancel the CONTRACT in whole or in part without 

liability for cancellation charges. In that event, 



26 Price Reduction 

Schedule For Delayed 

Delivery 

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PURCHASER may procure from elsewhere goods 

which PURCHASER’s opinion would meet the same 

purpose as the goods for which CONTRACT is 

cancelled and SELLER shall be liable without 

limitations for the difference between the cost of 

such substitution and the price set forth in the 

CONTRACT for the goods involved; or 

iii) hire the substitute goods vide (I) above and if the 

ordered goods continue to remain undelivered 

thereafter, cancel the order in part or in full vide (ii) 

above. 

25.1 Any unexcusable delay by the SELLER or his subcontractor 

shall render the SELLER liable, without 

prejudice to any other terms of the Contract, to any or 

all of the following sanctions: forfeiture of Contract 

performance guarantee, imposition of price reduction 

for delay in delivery and termination of the contract for 

default. 

26.1 Subject to Article -29, if the SELLER fails to deliver any or 

all of the GOODS or performance the services within the 

time period (s) specified in the CONTRACT, the 

PURCHASER shall, without prejudice to his other 

remedies under the CONTRACT, deduct from the 

CONTRACT PRICE, a sum calculated on the basis of the 

CONTRACT PRICE, including subsequent modifications. 

26.1.1 Deductions shall apply as per following formula: 

In case of delay in delivery of equipment/materials or 

delay in completion, total contract price shall be reduced 

by ½ % (half percent) of the total contract price per 

complete week of delay or part thereof subject to a 

maximum of 5% (five percent) of the total contract price. 

26.2 In case of delay in delivery on the part of Seller, the 

invoice/document value shall be reduced proportionately 

for the delay and payment shall be released accordingly. 

26.3 In the event the invoice value is not reduced 

proportionately for the delay, the PURCHASER may 

deduct the amount so payable by SELLER, from any 

amount falling due to the SELLER or by recovery against 

the Performance Guarantee. 

Both seller and PURCHASER agree that the above 

percentages of price reduction are genuine pre estimates 

of the loss/damage which the PURCHASER would have 

suffered on account of delay/breach on the part of the 

SELLER and the said amount will be payable on demand 

without there being any proof of the actual loss/or 

damage caused by such breach/delay. A decision of the 

PURCHASER in the matter of applicability of price 

reduction shall be final and binding. 



27 Rejections, Removal of 

Rejected Equipment & 

Replacement 

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27.1 Preliminary inspection at SELLER’s works by INSPECTOR 

shall not prejudice PURCHASER’s/CONSULTANT’s claim 

for rejection of the EQUIPMENT on final inspection at 

SITE or claims under warranty provisions. 

27.2 If the EQUIPMENTS are not of specification or fail to 

perform specified duties or are otherwise not satisfactory 

the PURCHASER/CONSULTANT shall be entitled to reject 

the EQUIPMENT/MATERIAL or part thereof and ask free 

replacement within reasonable time failing which obtain 

his requirements from elsewhere at SELLER’s cost and 

risk. 

27.3 Nothing in this clause shall be deemed to deprive the 

PURCHASER AND/OR AFFECT ANY rights under the 

Contract which it may otherwise have in respect of such 

defects or deficiencies or in any way relieve the SELLER 

of his obligations under the Contract. 

27.4 EQUIPMENT rejected by the PURCHASER/CONSULTANT 

shall be removed by the Seller at his cost within 14 days 

of notice after repaying the amounts received against the 

SUPPLY. The PURCHASER shall in no way be responsible 

for any deterioration or damage to the EQUIPMENT 

under any circumstances whatsoever. 

27.5 In case of rejection of EQUIPMENT, PURCHASER shall 

have the right to recover the amounts, if any, from any 

of CONTRACTOR’S invoices pending with PURCHASER or 

by alternative method(s). 

28 Termination of 

28.1 Termination for Default 

Contract 

28.1.1 The PURCHASER may, without prejudice to any other 

remedy for breach of CONTRACT, by written notice of 

default sent to the SELLER, terminate the CONTRACT in 

whole or in part: 

A) If the SELLER fails to deliver any or all of the 

GOODS within the time period(s) specified in the 

CONTRACT; or 

B) If the SELLER fails to perform any other 

C) 

obligation(s) under the CONTRACT, and 

If the SELLER, in either of the above circumstances, 

does not cure his failure within a period of 30 days 

(or such longer period as the PURCHASER may 

authorize in writing) after receipt of the default 

notice from the PURCHASER. 

28.1.2 In the event the PURCHASER terminates the CONTRACT 

in whole or in part, pursuant to Article 28.1.1, the 

PURCHASER may procure, upon such terms and in such 

manner as it deems appropriate, goods similar to those 

undelivered and the SELLER shall be liable to the 

PURCHASER for any excess costs for such similar 

GOODS. However, the SELLER shall continue 

performance of the CONTRACT to the extent not 

terminated. 

28.1.3 In case of termination of CONTRACT herein set 



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forth (under clause 28) except under conditions of 

Force Majeure and termination after expiry of 

contract, the VENDOR shall be put under holiday 

[i.e. neither any enquiry will be issued to the party 

by GAIL (India) Ltd. Against any type of tender nor 

their offer will be considered by GAIL against any 

ongoing tender (s) where contract between GAIL 

and that particular VENDOR (as a bidder) has not 

been finalized] for three years from the date of 

termination by GAIL (India) Ltd. to such VENDOR. 

28.2 Termination for Insolvency 

The PURCHASER, may at any time, terminate the 

CONTRACT by giving written notice to the SELLER, 

without compensation to the SELLER, if the SELLER 

becomes bankrupt or otherwise insolvent, provided that 

such termination will not prejudice or affect any right of 

action or remedy which has accrued or will accrue 

thereafter to the PURCHASER. 

28.3 Termination for Convenience 

28.3.1 The PURCHASER may, by written notice sent to the 

SELLER, terminate the CONTRACT, in whole or part, at 

any time for his convenience. The notice of termination 

shall specify that termination is for the PURCHASER’s 

convenience, the extent to which performance of work 

under the CONTRACT is terminated and the date upon 

which such termination becomes effective. 

28.3.2 The GOODS that are complete and ready for shipment 

within 30 days after the SELLER’s receipt of notice of 

termination shall be purchased by the PURCHASER at the 

CONTRACT terms and prices. For the remaining GOODS, 

the PURCHASER may opt: 

a) to have any portion completed and delivered at the 

CONTRACT terms and prices, and /or 

b) to cancel the remainder and pay to the SELLER an 

agreed amount for partially completed GOODS and 

for materials and parts previously procured by the 

SELLER. 

29 Force Majeure 29.1 Shall mean and be limited to the following: 

a) War/hostilities 

b) Riot or Civil commotion 

c) Earthquake, flood, tempest, lightening or other 

natural physical disaster. 

d) Restrictions imposed by the Government or other 

Statutory bodies which prevents or delays the 

execution of the Contract by the SELLER. 

The SELLER shall advise PURCHASER/CONSULTANT by a 

registered letter duly certified by the local Chamber of 

Commerce or statutory authorities, the beginning and 

end of the above causes of delay within seven (7) days 



TENDER FOR 





of the occurrence and cessation of such Force Majeure 

Conditions. In the event of delay lasting over one 

month, if arising out of causes of Force Majeure, 

PURCHASER/CONSULTANT reserves the right to cancel 

the Contract and the provisions governing termination 

stated under Article 28.0 shall apply. 

For delays arising out of Force Majeure, the SELLER shall 

not claim extension in completion date for a period 

exceeding the period of delay attributable to the causes 

of Force Majeure and neither PURCHASER/CONSULTANT 

nor SELLER shall be liable to pay extra costs provided it 

is mutually established that Force Majeure Conditions did 

actually exist. 

SELLER shall categorically specify the extent of Force 

Majeure Conditions prevalent in their works at the time 

of submitting their bid and whether the same have been 

taken into consideration or not in their quotations. In 

the event of any force majeure cause, the SELLER or the 

PURCHASER shall not be liable for delays in performing 

their obligations under this order and the delivery dates 

will be extended to the SELLER without being subject to 

price reduction for delayed deliveries, as stated 

elsewhere. 

30 Resolution of 

30.1 The PURCHASER and the SELLER shall make every effort 

Disputes/Arbitration 

to resolve amicably by direct informal negotiations any 

disagreement or dispute arising between them under or 

in connection with the contract. 

30.2 If, after thirty days from the commencement of such 

informal negotiations, the PURCHASER and the SELLER 

have been unable to resolve amicably a Contract dispute, 

either party may require that the dispute be referred for 

resolution 

hereunder. 

to the formal mechanism as specified 

30.3 Legal Construction 

The Contract shall be, in all respects be construed and 

operated as an Indian Contract and in accordance with 

Indian Laws as in force for the time being and is subject 

to and referred to the Court of Law situated within Union 

Territory of New Delhi. 

30.4 Arbitration 

All disputes, controversies, or claims between the parties 

(except in matters where the decision of the Engineer-in- 

Charge is deemed to be final and binding) which cannot 

be mutually resolved within a reasonable time shall be 

referred to Arbitration by a sole arbitrator. 

The PURCHASER (GAIL (India) Limited) shall suggest a 

panel of three independent and distinguished persons to 

the Seller to select any one among them to act as the 

sole Arbitrator. 

In the event of failure of the Seller to select the Sole 



TENDER FOR 





Arbitrator within 30 days from the receipt of the 

communication suggesting the panel of arbitrators, the 

right of selection of Sole Arbitrator by the other party 

shall stand forfeited and the PURCHASER shall have 

discretion to proceed with the appointment of the Sole 

Arbitrator. The decision of the PURCHASER on the 

appointment of Sole Arbitrator shall be final and binding 

on the parties. 

The award of the Sole Arbitrator shall be final and 

binding on the parties and unless directed/awarded 

otherwise by the Sole Arbitrator, the cost of arbitration 

proceedings shall be shared equally by the parties. The 

arbitration proceeding shall be in English language and 

the venue shall be at New Delhi, India. 

Subject to the above, the provisions of 

(Indian)Arbitration & Conciliation Act, 1996 and the rules 

framed thereunder shall be applicable. All matters 

relating to this contract are subject to the exclusive 

jurisdiction of the Courts situated in the State of Delhi 

(India). 

Seller may please note that the Arbitration & Conciliation 

Act 1996 was enacted by the Indian Parliament and is 

based on United nations Commission on International 

Trade Law (UNCITRAL model law), which were prepared 

after extensive consultation with Arbitral Institutions 

and centers of International Commercial Arbitration. The 

United Nations General Assembly vide resolution 31/98 

adopted the UNCITRAL Arbitration rules on 15 December 

1996. 

The WORK under the CONTRACT shall, however, 

continue during the Arbitration proceedings and no 

payment due or payable to the Seller shall be withheld 

on account of such proceedings. 

31 Governing Language 31.1 The Contract shall be written in English language as 

specified by the PURCHASER/CONSULTANT in the 

Instruction to Bidders. All literature, correspondence 

and other documents pertaining to the Contract which 

are exchanged by the parties shall be written in English 

language. Printed literature in other language shall only 

be considered, if it is accompanied by an English 

translation. For the purposes of interpretation, English 

translation shall govern and be binding on all parties. 

32 Notices 32.1 Any notice given by one party to the other pursuant to 

the Contract shall be sent in writing or by telegram or 

fax, telex/cable confirmed in writing. 

32.2 A notice shall be effective when delivered or on the 

notice’s effective date, whichever is later. 

33 Taxes & Duties 33.1 A foreign Seller shall be entirely responsible for all taxes, 



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stamp duties, licence fees, and other such levies imposed 

outside the PURCHASER’s country. 

33.2 A domestic Seller shall be entirely responsible for all 

taxes, duties, licence fees etc. incurred until the delivery 

of the contracted goods to the PURCHASER. However, 

Sales Tax and Excise duty on finished products shall be 

reimbursed by PURCHASER. 

33.3 Customs duty payable in India for imported goods 

ordered by PURCHASER on foreign Seller shall be borne 

and paid by PURCHASER. 

33.4 Any income tax payable in respect of supervisory 

services rendered by foreign Seller under the Contract 

shall be as per the Indian Income Tax Act and shall be 

borne by SELLER. It is upto the bidder/seller to ascertain 

the amount of these taxes and to include them in his bid 

price. 

34 Books & Records 34.1 SELLER shall maintain adequate books and records in 

connection with Contract and shall make them available 

for inspection and audit by PURCHASER/CONSULTANT or 

their authorized agents or representatives during the 

terms of Contract until expiry of the performance 

guarantee. Fixed price (lumpsum or unit price) Contract 

will not be subject to audit as to cost except for cost 

reimbursable items, such as escalation and termination 

claims, transportation and comparable requirements. 

35 Permits & Certificates 35.1 SELLER shall procure, at his expense, all necessary 

permits, certificates and licences required by virtue of all 

applicable laws, regulations, ordinances and other rules 

in effect at the place where any of the work is to be 

performed, and SELLER further agrees to hold 

PURCHASER and/or CONSULTANT harmless from 

liability or penalty which might be imposed by reason of 

any asserted or established violation of such laws, 

regulations, ordinances or other rules. PURCHASER will 

provide necessary permits for SELLER’s personnel to 

undertake any work in India in connection with 

Contract. 

36 General 

36.1 In the event that terms and conditions stipulated in the 

General Conditions of Contract should deviate from terms 

and conditions stipulated in the Contract, the latter shall 

prevail. 

36.2 Losses due to non-compliance of Instructions 

Losses or damages occurring to the PURCHASER owing 

to the SELLER’s failure to adhere to any of the 

instructions given by the PURCHASER/CONSULTANT in 

connection with the contract execution shall be 

36.3 

recoverable from the SELLER. 

Recovery of sums due 



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All costs, damages or expenses which the 

PURCHASER/CONSULTANT may have paid, for which 

under the CONTRACT SELLER is liable, may be recovered 

by the PURCHASER(he is hereby irrevocably authorized 

to do so) from any money due to or becoming due to the 

SELLER under this Contract or other Contracts and/or 

may be recovered by action at law or otherwise. If the 

same due to the SELLER be not sufficient to recover the 

recoverable amount, the SELLER shall pay to the 

PURCHASER, on demand, the balance amount. 

36.4 Payments, etc. not to affect rights of the PURCHASER 

No sum paid on account by the PURCHASER nor any 

extension of the date for completion granted by the 

PURCHASER/CONSULTANT shall affect or prejudice the 

rights of the PURCHASER against the SELLER or relieve 

the SELLER of his obligation for the due fulfillment of the 

CONTRACT. 

36.5 Cut-off Dates 

No claims or correspondence on this Contract shall be 

entertained by the PURCHASER/Consultant after 90 days 

after expiry of the performance guarantee (from the date 

of final extension, if any) 

36.6 Paragraph heading 

The paragraph heading in these conditions shall not 

affect the construction thereof. 

37 Import Licence 37.1 No import licence is required for the imports covered 

under this document. 

38 FALL CLAUSE 

38.1 The price charged for the materials supplied under 

the order by the supplier shall in no event exceed 

the lowest price at which the supplier or his 

agent/principal/dealer, as the case may be, sells 

the materials of identical description to any 

persons/organizations including the Purchaser or 

any department of the Central Govt. or any Deptt. 

Of a State Govt. or any Statutory Undertaking of 

the Central or State Govt. as the case may be, 

during the currency of the order. 

38.2 If at any time during the said period, the supplier 

or his agent/principal/dealer, as the case may be, 

reduces the sale price, sells or offers to sell such 

materials to any persons/organizations including 

the Purchaser or any Deptt. Of Central Govt. or 

State Govt. as the case may be, at a price lower 

than the price chargeable under the order, he 

shall forthwith notify such reduction or sale or 

offer of sale to the Purchase Authority who has 

issued this order and the price payable under the 

order for the materials supplied after the date of 

coming into force of such reduction or sale or offer 



TENDER FOR 





of sale shall stand correspondingly reduced. 

The above stipulation will, however, not apply to: 

a) Exports by the Contractor/Supplier or 

b) Sale of goods as original equipment at prices 

lower than the prices charged for normal 

replacement 

c) sale of goods such as drugs which have expiry 

dates. 

38.3 The supplier shall furnish the following certificate 

to the concerned Paying Authority alongwith each 

bill for payment for supplies made against this 

order:- 

“I/We certify that there has been no reduction in 

sale price of the items/goods/materials of 

description identical to those supplied to the GAIL 

under the order herein and such items/ 

goods/materials have not been offered/sold by 

me/us to any person/organizations including the 

Purchaser or any Deptt. Of Central Govt. or any 

Deptt. Of State Govt. or any Statutory 

Undertaking of the Central or State Govt. as the 

case may be upto the date of bill/during the 

currency of the order whichever is later, at a 

price lower than the price charged to the GAIL 

under the order. 

Such a certificate shall be obtained, except for quantity 

of items/goods/materials categories under sub-clause 

(a),(b) & (c) of sub-para 38.2 above, of which details 

shall be furnished by the supplier. 

39 Publicity & Advertising 39.1 Seller shall not without the written permission of 

PURCHASER/Consultant make a reference to 

PURCHASER/Consultant or any Company affiliated with 

PURCHASER/Consultant or to the destination or the 

description of goods or services supplied under the 

contract in any publication, publicity or advertising media. 

40 Repeat Order 40.1 PURCHASER reserves the right, within 6 months of order 

to place repeat order upto 50% of the total order value 

without any change in unit price or other terms and 

conditions. 

41 Limitation of Liability 41.1 Notwithstanding anything contrary contained herein, the 

aggregate total liability of Seller under the Agreement or 

otherwise shall be limited to 100% of Agreement / Order 

price. However, neither party shall be liable to the other 

party for any indirect and consequential damages, loss of 

profits or loss of production. 

--------X--------X-------- 



FOR 

PROCUREMENT OF WORKS 

GAIL (INDIA) LIMITED 

MAY 2004


(i) TABLE OF CONTENTS 

TABLE OF CONTENTS 

(II) SUBMISSION OF TENDER 

SECTION-I (DEFINITIONS) 

1.0 Definition of Terms 


SECTION-II (GENERAL INFORMATIONS) 

2.0 General Information 

2.1 (a) Location of Site 

(b) Access by Road 

2.2 Scope of Work 

2.3 Water Supply 

2.4 Power Supply 

2.5 Land for Contractor's field office, 

Godown and Workshop 

2.6 Land for Residential Accommodation 

SECTION-III (GENERAL INSTRUCTIONS TO TENDERERS) 

3.0 Submission of Tender 

4.0 Documents 

4.1 General 

4.2 All pages to be initialed 

4.3 Rates to be in figures and words 

4.4 Corrections and Erasures 

4.5 Signature of Tenderer 

4.6 Witness 

4.7 Details of Experience 

4.8 Liability of Government of India 

5.0 Transfer of Tender Documents 

6.0 Earnest Money 

7.0 Validity 

8.0 Addenda/Corrigenda 

9.0 Right of Employer to Accept or Reject Tender 

10.0 Time Schedule 

11.0 Tenderer's Responsibility 

12.0 Retired Government or Company Officers 

13.0 Signing of the Contract 

14.0 Field Management & Controlling/Coordinating 

Authority 

15.0 Note to Schedule of Rates 

16.0 16.1 Policy for Tenders under consideration 

Page 1 of 82

16.2 Zero Deviation 

17.0 Award of Contract 

18.0 Clarification of Tender Document 

19.0 Local Conditions 

20.0 Abnormal Rates 

SECTION-IV (GENERAL OBLIGATIONS) 

21.1 Priority of Contract Documents 

21.2 Headings & Marginal Notes 

21.3 Singular and Plural 

21.4 Interpretation 

22.0 Special Conditions of Contract 

23.0 Contractor to obtain his own information 

24.0 Contract Performance Security 

25.0 Time of Performance 

25.1 Time for Mobilisation 

25.2 Time Schedule of Construction 

26.0 Force Majeure 

26.1 Conditions for Force Majeure 

26.2 Outbreak of War 

27.0 Price Reduction Schedule 

27.3 Bonus for Early Completion 

28.0 Rights of Employer to forfeit Contract Performance Security 

29.0 Failure by the Contractor to comply with the 

provisions of the contract 

30.0 Contractor remains liable to pay compensation 

if action not taken under Clause 29.0 

31.0 Change in Constitution 

32.0 -A Termination of Contract for Death 

32.0-B Termination of Contract for Liquidation, 

Bankruptcy etc. 

32.0-C Termination of Contract for Non-Performance and subsequently putting the 

Contractor on Holiday 

33.0 Members of the Employer not individually liable 

34.0 Employer not bound by personal representations 

35.0 Contractor's office at site 

36.0 Contractor's subordinate staff and their conduct 

37.0 Sub letting of Works 

i) Sub contracts for Temporary works etc. 

ii) List of sub-contractors to be supplied 

iii) Contractor's liability not limited by Sub-Contractors 

iv) Employer may terminate sub contracts 

v) No remedy for action taken under this clause 

38.0 Power of Entry 

39.0 Contractor's responsibility with Mechanical, 

Electrical, Intercommunication System, Air 

Conditioning Contractors and other agencies 

40.0 Other Agencies at site 

41.0 Notices 

Page 2 of 82

41.1 To the Contractor 

41.2 To the Employer 

42.0 Rights of various Interests 

43.0 Patents and Royalties 

44.0 Liens 

45.0 Delays by Employer or his authorised agents 

46.0 Payments if Contract is terminated 

47.0 No waiver of Rights 

48.0 Certificate not to affect Right of Employer and Liability of Contractor 

49.0 Languages & Measures 

50.0 Transfer of Title 

51.0 Release of Information 

52.0 Brand Names 

53.0 Completion of Contract 

54.0 Spares 

SECTION-V (PERFORMANCE OF WORK) 

55.0 Execution of Work 

56.0 Co-ordination and Inspection of work 

57.0 Work in Monsoon & Dewatering 

58.0 Work on Sundays & Holidays 

59.0 General Conditions for construction & 

Erection Work 

60.0 Alterations in specification, Design & 

Extra Work 

61.0 Drawings to be supplied by the Employer 

62.0 Drawings to be supplied by the Contractor 

63.0 Setting out works 

64.0 Responsibility for Levels and Alignment 

65.0 Materials to be supplied by contractor 

66.0 Stores supplied by Employer 

67.0 Conditions for issue of material 

68.0 Materials Procured with assistance of 

Employer/Return of surplus 

69.0 Materials obtained from dismantling 

70.0 Articles of Value found 

71.0 Discrepancies between instructions 

72.0 Action where no specification is issued 

73.0 Inspection of Works 

74.0 Tests for Quality of Works 

75.0 Samples for approval 

76.0 Action and Compensation in case of bad work 

77.0 Suspension of Work 

78.0 Employer may do part of work 

79.0 Possession prior to completion 

80.0 Twelve months period of liability from the 

date of issue of completion certificate 

80.3 Limitation of Liability 

81.0 Care of Works 

81.1 Defects prior to taking over 

Page 3 of 82

81.2 Defects after taking over 

82.0 Guarantee/Transfer of Guarantee 

83.0 Training of Employer's personnel 

84.0 Replacement of Defective parts & materials 

85.0 Indemnity 

86.0 Construction Aids, Equipments, Tools & Tackles 

SECTION-VI (CERTIFICATES AND PAYMENTS) 

87.0 Schedule of Rates and Payments 

i) Contractor's Remuneration 

ii) Schedule of Rates to be inclusive 

iii) Schedule of Rates to cover construction 

equipment, materials, labour etc. 

iv) Schedule of Rates to cover Royalties, Rents 

and claims. 

v) Schedule of Rates to cover taxes & duties 

vi) Schedule of Rates to cover risks of delay 

vii) Schedule of Rates cannot be altered 

88.0 Procedure for Measurement and billing 

of works in progress 

88.1 Billing Procedure 

88.2 Secured Advance on materials 

88.3 Dispute in mode of measurement 

88.4 Rounding of Amounts 

89.0 Lumpsum in Tender 

90.0 Running Account Payments to be regarded 

as advances 

91.0 Notices of Claims for Additional Payments 

92.0 Payment of Contractor's bills 

93.0 Receipt for Payment 

94.0 Completion Certificate 

94.1 Application for Completion Certificate 

94.2 Completion Certificate 

94.3 Completion Certificate Documents 

95.0 Final Decision & Final Certificate 

96.0 Certificate and Payments No evidence of completion 

97.0 Deduction from Contract Price 

SECTION-VII (TAXES AND INSURANCE) 

98.0 Taxes, Duties, Octroi etc. 

99.0 Sales Tax/Turnover Tax 

100.0 Statutory Variations 

101.0 Insurance 

101.1 General 

i) Employees State Insurance Act 

ii) Workmen Compensation and Employee's Liability Insurance 

iii) Accident or injury to workmen 

iv) Transit Insurance 

v) Automobile 

Page 4 of 82

vi) General Liability 

vii) Any other Insurance required under law or regulations by Employer 

102.0 Damage to Property or to any Person or any Third Party 

SECTION-VIII (LABOUR LAWS) 

103.0 Labour laws 

104.0 Implementation of Apprentices Act 1961 

105.0 Contractor to indemnify the Employer 

106.0 Health and Sanitary Arrangement for worker 

SECTION-IX (APPLICABLE LAWS AND SETTLEMENT OF DISPUTES) 

107.0 Arbitration 

108.0 Jurisdiction 

SECTION-X (SAFETY CODES) 

109.0 General 

110.0 Safety Regulations 

111.0 First Aid and Industrial Injuries 

112.0 General Rules 

113.0 Contractor's barricades 

114.0 Scaffolding 

115.0 Excavation and Trenching 

116.0 Demolition/General Safety 

117.0 Care in Handling Inflammable Gas 

118.0 Temporary Combustible Structures 

119.0 Precautions Against Fire 

120.0 Explosives 

121.0 Mines Act 

122.0 Preservation of Places 

123.0 Outbreak of Infectious diseases 

124.0 Use of intoxicants 

ANNEXURES TO GCC 

1. Proforma of Agreement 

2. Proforma for Indemnity Bond for Advance against material 

Page 5 of 82

General Conditions of Contract 

Section- I. Definitions 

1. Definition of Terms: 1.1 In this CONTRACT (as here-in-after defined) the following words and 

expressions shall have the meanings hereby assigned to them except where the 

context otherwise required. 

1.1.1 The EMPLOYER/COMPANY/GAIL means GAIL (INDIA) LTD., a public 

limited company, incorporated under the Company’s act 1956 and having its 

Registered office at 16, Bhikaji Cama Place, New Delhi 110066 and includes 

its successors and assigns. 

1.1.2 The "CONTRACTOR" means the person or the persons, firm or Company or 

corporation whose tender has been accepted by the EMPLOYER and includes 

the CONTRACTOR's legal Representatives his successors and permitted 

assigns. 

1.1.3 The ENGINEER/ENGINEER-IN-CHARGE" shall mean the person 

designated from time to time by the GAIL and shall include those who are 

expressly authorized by him to act for and on his behalf for operation of this 

CONTRACT. 

1.1.4 The "WORK" shall mean and include all items and things to be supplied/ done 

and services and activities to be performed by the CONTRACTOR in 

pursuant to and in accordance with CONTRACT or part thereof as the case 

may be and shall include all extra, additional, altered or substituted works as 

required for purpose of the CONTRACT. 

1.1.5 The "PERMANENT WORK" means and includes works which will be 

incorporated in and form a part of the work to be handed over to the 

EMPLOYER by the CONTRACTOR on completion of the CONTRACT. 

1.1.6 "CONSTRUCTION EQUIPMENT" means all appliances/equipment and 

things whatsoever nature for the use in or for the execution, completion, 

operation, or maintenance of the work or temporary works (as hereinafter 

defined) but does not include materials or other things intended to form or to 

be incorporated into the WORK, or camping facilities. 

1.1.7 "CONTRACT DOCUMENTS" means collectively the Tender Documents, 

Designs, Drawings, Specification, Schedule of Quantities and Rates, Letter of 

Acceptance and agreed variations if any, and such other documents 

constituting the tender and acceptance thereof. 

1.1.8 CONSULTANT: means ------------------------------- who are the consulting 

engineer to the Employer for this project and having registered office at -------- 

----------------------------------------------------------------------------------------------- 

------------------------------------------------------- 

1.1.9 The "SUB-CONTRACTOR" means any person or firm or Company (other 

than the CONTRACTOR) to whom any part of the work has been entrusted 

by the CONTRACTOR, with the written consent of the 

ENGINEER-IN-CHARGE, and the legal representatives, successors and 

permitted assigns of such person, firm or company. 

Page 6 of 82

1.1.10 The "CONTRACT” shall mean the Agreement between the EMPLOYER and 

the CONTRACTOR for the execution of the works including therein all 

contract documents. 

1.1.11 The "SPECIFICATION" shall mean all directions the various technical 

specifications, provisions attached and referred to the Tender Documents 

which pertain to the method and manner of performing the work or works to 

the quantities and qualities of the work or works and the materials to be 

furnished under the CONTRACT for the work or works, as may be amplified 

or modified by the GAIL or ENGINEER-IN-CHARGE during the 

performance of CONTRACT in order to provide the unforseen conditions or 

in the best interests of the work or works. It shall also include the latest 

edition of relevant Standard Specifications including all addenda/corrigenda 

published before entering into CONTRACT. 

1.1.12 The "DRAWINGS" shall include maps, plans and tracings or prints or 

sketches thereof with any modifications approved in writing by the 

ENGINEER- IN-CHARGE and such other drawing as may, from time to 

time, be furnished or approved in writing by the ENGINEER-IN-CHARGE. 

1.1.13 The "TENDER" means the proposal along with supporting documents 

submitted by the CONTRACTOR for consideration by the EMPLOYER. 

1.1.14 The "CHANGE ORDER" means an order given in writing by the 

ENGINEER-IN-CHARGE to effect additions to or deletion from and 

alteration in the works. 

1.1.15 The "COMPLETION CERTIFICATE" shall mean the certificate to be issued 

by the ENGINEER-IN-CHARGE when the works have been completed 

entirely in accordance with CONTRACT DOCUMENT to his satisfaction. 

1.1.16 The "FINAL CERTIFICATE" in relation to a work means the certificate 

regarding the satisfactory compliance of various provision of the 

CONTRACT by the CONTRACTOR issued by the ENGINEER-IN- 

CHARGE/EMPLOYER after the period of liability is over. 

1.1.17 “DEFECT LIABILITY PERIOD” in relation to a work means the specified 

period from the date of COMPLETION CERTIFICATE upto the date of issue 

of FINAL CERTIFICATE during which the CONTRACTOR stands 

responsible for rectifying all defects that may appear in the works executed by 

the CONTRACTOR in pursuance of the CONTRACT and includes 

warranties against Manufacturing/Fabrication/ Erection/Construction defects 

covering all materials plants, equipment, components, and the like supplied by 

the CONTRACTOR, works executed against workmanship defects. 

1.1.18 The "APPOINTING AUTHORITY" for the purpose of arbitration shall be the 

CHAIRMAN and MANAGING DIRECTOR or any other person so 

designated by the EMPLOYER. 

1.1.19 "TEMPORARY WORKS" shall mean all temporary works of every kind 

required in or about the execution, completion or maintenance of works. 

1.1.20 "PLANS" shall mean all maps, sketches and layouts as are incorporated in the 

CONTRACT in order to define broadly the scope and specifications of the 

work or works, and all reproductions thereof. 

Page 7 of 82

1.1.21 "SITE" shall mean the lands and other places on, under, in or through which 

the permanent works are to be carried out and any other lands or places 

provided by the EMPLOYER for the purpose of the CONTRACT. 

1.1.22 "NOTICE IN WRITING OR WRITTEN NOTICE" shall mean a notice in 

written, typed or printed characters sent (unless delivered personally or 

otherwise proved to have been received by the addressee) by registered post to 

the latest known private or business address or registered office of the 

addressee and shall be deemed to have been received in the ordinary course of 

post it would have been delivered. 

1.1.23 "APPROVED" shall mean approved in writing including subsequent written 

confirmation of previous verbal approval and "APPROVAL" means approval 

in writing including as aforesaid. 

1.1.24 "LETTER OF INTENT/FAX OF INTENT” shall mean intimation by a 

Fax/Letter to Tenderer(s) that the tender has been accepted in accordance with 

the provisions contained in the letter. 

1.1.25 "DAY" means a day of 24 hours from midnight to midnight irrespective of the 

number of hours worked in that day. 

1.1.26 "WORKING DAY" means any day which is not declared to be holiday or rest 

day by the EMPLOYER. 

1.1.27 "WEEK" means a period of any consecutive seven days. 

1.1.28 "METRIC SYSTEM" - All technical documents regarding the construction of 

works are given in the metric system and all work in the project should be 

carried out according to the metric system. All documents concerning the 

work shall also be maintained in the metric system. 

1.1.29 "VALUE OF CONTRACT” or “TOTAL CONTRACT PRICE” shall mean 

the sum accepted or the sum calculated in accordance with the prices accepted 

in tender and/or the CONTRACT rates as payable to the CONTRACTOR for 

the entire execution and full completion of the work, including change order. 

1.1.30 "LANGUAGE FOR DRAWINGS AND INSTRUCTION" All the drawings, 

titles, notes, instruction, dimensions, etc. shall be in English Language. 

1.1.31 "MOBILIZATION" shall mean establishment of sufficiently adequate 

infrastructure by the CONTRACTOR at "SITE" comprising of construction 

equipments, aids, tools tackles including setting of site offices with facilities 

such as power, water, communication etc. establishing manpower organisation 

comprising of Resident Engineers, Supervising personnel and an adequate 

strength of skilled, semi-skilled and un-skilled workers, who with the so 

established infrastructure shall be in a position to commence execution of 

work at site(s), in accordance with the agreed Time Schedule of Completion 

of Work. "MOBILISATION" shall be considered to have been achieved, if the 

CONTRACTOR is able to establish infrastructure as per Time Schedule, 

where so warranted in accordance with agreed schedule of work 

implementation to the satisfaction of ENGINEER-IN-CHARGE/ 

EMPLOYER. 

1.1.32 "COMMISSIONING" shall mean pressing into service of the system 

Page 8 of 82

including the plant(s), equipment(s), vessel(s), pipeline, machinery(ies), or any 

other section or sub-section of installation(s) pertaining to the work of the 

CONTRACTOR after successful testing and trial runs of the same. 

• "COMMISSIONING" can be either for a completed system or a part of 

system of a combination of systems or sub-systems and can be performed in 

any sequence as desired by EMPLOYER and in a manner established to be 

made suited according to availability of pre-requisites. Any such 

readjustments made by EMPLOYER in performance of 

"COMMISSIONING" activity will not be construed to be violating 

CONTRACT provisions and CONTRACTOR shall be deemed to have 

provided for the same. 

Section-II General Informations 

2. General Information 2.1 a) Location of Site: The proposed location of Project site is defined in the 

Special Conditions of Contract. 

b) Access by Road: CONTRACTOR, if necessary, shall build other temporary 

access roads to the actual site of construction for his own work at his own cost. 

The CONTRACTOR shall be required to permit the use of the roads so 

constructed by him for vehicles of any other parties who may be engaged on 

the project site. The CONTRACTOR shall also facilitate the construction of 

the permanent roads should the construction there of start while he is engaged 

on this work. He shall make allowance in his tender for any inconvenience he 

anticipates on such account. 

Non-availability of access roads, railway siding and railway wagons for the 

use of the CONTRACTOR shall in no case condone any delay in the 

execution of WORK nor be the cause for any claim for compensation against 

the EMPLOYER. 

2.2 Scope of Work: The scope of WORK is defined in the Technical Part of the tender 

document. The CONTRACTOR shall provide all necessary materials, equipment, 

labour etc. for the execution and maintenance of the WORK till completion unless 

otherwise mentioned in the Tender Document. 

2.3 Water Supply: Contractor will have to make his own arrangements for supply of 

water to his labour camps and for works. All pumping installations, pipe net work 

and distribution system will have to be carried out by the Contractor at his own risk 

and cost. 

Alternatively the Employer at his discretion may endeavour to provide water to the 

Contractor at the Employer's source of supply provided the Contractor makes his 

own arrangement for the water meter which shall be in custody of the Employer 

and other pipe net works from source of supply and such distribution pipe network 

shall have prior approval of the Engineer-in-Charge so as not to interfere with the 

layout and progress of the other construction works. In such case, the rate for water 

shall be deducted from the running account bills. 

Page 9 of 82

However, the Employer does not guarantee the supply of water and this does not 

relieve the Contractor of his responsibility in making his own arrangement and for 

the timely completion of the various works as stipulated. 

2.4 Power Supply: 

2.4.1 Subject to availability, EMPLOYER will supply power at 400/440 V at only 

one point at the nearest sub-station, from where the CONTRACTOR will 

make his own arrangement for temporary distribution. The point of supply 

will not be more than 500 m away from the CONTRACTOR'S premises. All 

the works will be done as per the applicable regulations and passed by the 

ENGINEER-IN-CHARGE. The temporary line will be removed forthwith 

after the completion of work or if there is any hindrance caused to the other 

works due to the alignment of these lines, the CONTRACTOR will re-route or 

remove the temporary lines at his own cost. The CONTRACTOR at his cost 

will also provide suitable electric meters, fuses, switches, etc. for purposes of 

payment to the EMPLOYER which should be in the custody and control of 

the EMPLOYER. The cost of power supply shall be payable to the 

EMPLOYER every month for Construction Works power which would be 

deducted from the running account bills. The EMPLOYER shall not, 

however, guarantee the supply of electricity nor have any liability in respect 

thereof. No claim for compensation for any failure or short supply of 

electricity will be admissible. 

2.4.2 It shall be the responsibility of the CONTRACTOR to provide and maintain 

the complete installation on the load side of the supply with due regard to 

safety requirement at site. All cabling, equipment, installations etc. shall 

comply in all respects with the latest statutory requirements and safety 

provisions i.e., as per the Central/State Electricity Acts and Rules etc. The 

CONTRACTOR will ensure that his equipment and Electrical Wiring etc., are 

installed, modified, maintained by a licensed Electrician/Supervisor. A test 

certificate is to be produced to the ENGINEER-IN-CHARGE for his 

approval, before power is made available. 

2.4.3 At all times, IEA regulations shall be followed failing which the EMPLOYER 

has a right to disconnect the power supply without any reference to the 

CONTRACTOR. No claim shall be entertained for such disconnection by the 

ENGINEER-IN-CHARGE. Power supply will be reconnected only after 

production of fresh certificate from authorized electrical supervisors. 

2.4.4 The EMPLOYER is not liable for any loss or damage to the 

CONTRACTOR's equipment as a result of variation in voltage or frequency 

or interruption in power supply or other loss to the CONTRACTOR arising 

therefrom. 

2.4.5 The CONTRACTOR shall ensure that the Electrical equipment installed by 

him are such that average power factors does not fall below 0.90 at his 

premises. In case power factor falls below 0.90 in any month, he will 

reimburse to the EMPLOYER at the penal rate determined by the 

EMPLOYER for all units consumed during the month. 

2.4.6 The power supply required for CONTRACTOR's colony near the plant site 

will be determined by the EMPLOYER and shall be as per State Electricity 

Board's Rules and other statutory provisions applicable for such installations 

from time to time. In case of power supply to CONTRACTOR's colony, the 

Page 10 of 82

power will be made available at a single point and the CONTRACTOR shall 

make his own arrangement at his own cost for distribution to the occupants of 

the colony as per Electricity Rules and Acts. The site and colony shall be 

sufficiently illuminated to avoid accidents. 

2.4.7 The CONTRACTOR will have to provide and install his own lights and 

power meters which will be governed as per Central/State Government 

Electricity Rules. The metres shall be sealed by the EMPLOYER. 

2.4.8 In case of damage of any of the EMPLOYER’s equipment on account of fault, 

intentional or unintentional on the part of the CONTRACTOR, the 

EMPLOYER reserves the right to recover the cost of such damage from the 

CONTRACTOR's bill. Cost of HRC Fuses replaced at the EMPLOYER's 

terminals due to any fault in the CONTRACTOR's installation shall be to 

CONTRACTOR's account at the rates decided by the 

ENGINEER-IN-CHARGE. 

2.4.9 Only motors upto 3 HP will be allowed to be started direct on line. For motors 

above 3 HP and upto 100 HP a suitable Starting device approved by the 

ENGINEER- IN-CHARGE shall be provided by the CONTRACTOR. For 

motors above 100 HP slipring induction motors with suitable starting devices 

as approved by the ENGINEER- IN-CHARGE shall be provided by the 

CONTRACTOR. 

2.4.10 The CONTRACTOR shall ensure at his cost that all electrical lines and 

equipment and all installations are approved by the State Electricity Inspector 

before power can be supplied to the EMPLOYER. 

2.4.11 The total requirement of power shall be indicated by the tenderer alongwith 

his tender. 

2.5 Land for Contractor’s Field Office, Godown and Workshop: The EMPLOYER 

will, at his own discretion and convenience and for the duration of the execution of 

the work make available near the site, land for construction of CONTRACTOR's 

Temporary Field Office, godowns workshops and assembly yard required for the 

execution of the CONTRACT. The CONTRACTOR shall at his own cost 

construct all these temporary buildings and provide suitable water supply and 

sanitary arrangement and get the same approved by the 


On completion of the works undertaken by the CONTRACTOR, he shall remove 

all temporary works erected by him and have the SITE cleaned as directed by 

ENGINEER-IN-CHARGE. If the CONTRACTOR shall fail to comply with these 

requirements, the ENGINEER-IN-CHARGE may at he expenses of the 

CONTRACTOR remove such surplus, and rubbish materials and dispose off the 

same as he deems fit and get the site cleared as aforesaid; and CONTRACTOR 

shall forthwith pay the amount of all expenses so incurred and shall have no claim 

in respect of any such surplus materials disposed off as aforesaid. But the 

EMPLOYER reserves the right to ask the CONTRACTOR any time during the 

pendency of the CONTRACT to vacate the land by giving 7 days notice on security 

reasons or on national interest or otherwise. Rent may be charged for the land so 

occupied from contractor by the Employer. 

The CONTRACTOR shall put up temporary structures as required by them for 

their office, fabrication shop and construction stores only in the area allocated to 

them on the project site by the EMPLOYER or his authorised representative. No 

Page 11 of 82

tea stalls/canteens should be put up or allowed to be put up by any CONTRACTOR 

in the allotted land or complex area without written permission of the 

EMPLOYER. 

No unauthorised buildings, constructions or structures should be put up by the 

CONTRACTOR anywhere on the project site. 

For uninterrupted fabrication work, the CONTRACTOR shall put up temporary 

covered structures at his cost within Area in the location allocated to them in the 

project site by the EMPLOYER or his authorised representative. 

No person except for authorised watchman shall be allowed to stay in the plant 

area/CONTRACTOR's area after completion of the day's job without prior written 

permission from ENGINEER-IN-CHARGE. 

2.6 Land for Residential Accommodation:-:No Land shall be made available for 

residential accommodation for staff and labour of CONTRACTOR. 

Section-III. General Instructions to Tenderers 

3. Submission of Tender: 3.1 TENDER must be submitted without making any additions, alterations, and as per 

details given in other clauses hereunder. The requisite details shall be filled in by 

the TENDERER at space provided under “Submission of Tender at the beginning 

of GCC of Tender Document. The rate shall be filled only in the schedule given in 

this Tender Document. 

4. Documents: 4.1 General: 

3.2 Addenda/Corrigenda to this Tender Document, if issued, must be signed, 

submitted alongwith the Tender Document. the tenderer should write clearly the 

revised quantities in Schedule of Rates of Tender Document and should price the 

WORK based on revised quantities when amendments of quantities are issued in 

addenda. 

3.3 Covering letter alongwith its enclosures accompanying the Tender Document and 

all further correspondence shall be submitted in duplicate. 

3.4 Tenderers are advised to submit quotations based strictly on the terms and 

conditions and specifications contained in the Tender Documents and not to 

stipulate any deviations. 

3.5 Tenders should always be placed in double sealed covers, superscribing 

["QUOTATION DO NOT OPEN" Tender for _________________________ 

Project of GAIL (India) Limited due for opening on 

_______________________]. The Full Name, Address and Telegraphic 

Address, Fax No. of the Tenderers shall be written on the bottom left hand 

corner of the sealed cover. 

The tenders as submitted, will consist of the following: 

i) Complete set of Tender Documents (Original) as sold duly filled in and 

Page 12 of 82

signed by the tenderer as prescribed in different clauses of the Tender 

Documents. 

ii) Earnest money in the manner specified in Clause 6 hereof. 

iii) Power of Attorney or a true copy thereof duly attested by a Gazetted 

Officer in case an authorised representative has signed the tender, as 

required by Clause 14 hereof. 

iv) Information regarding tenderers in the proforma enclosed. 

v) Details of work of similar type and magnitude carried out by the 

Tenderer in the proforma provided in the tender document. 

vi) Organisation chart giving details of field management at site, the 

tenderer proposes to have for this job. 

vii) Details of construction plant and equipments available with the 

tenderer for using in this work. 

viii) Solvency Certificate from Scheduled Bank to prove the financial 

ability to carry out the work tendered for. 

ix) Latest Balance Sheet and Profit & Loss Account duly audited. 

x) Details of present commitment as per proforma enclosed to tender. 

xi) Data required regarding SUB-CONTRACTOR(s)/ Supplier/ 

Manufacturers and other technical informations the tenderer wish to 

furnish. 

xii) Provident fund registration certificate 

xiii) List showing all enclosures to tender. 

4.2 All pages are to be Initiated: All signatures in Tender Documents shall be dated, as 

well as, all the pages of all sections of Tender Documents shall be initialed at the 

lower right hand corner and signed wherever required in the tender papers by the 

TENDERER or by a person holding power of attorney authorising him to sign on 

behalf of the tenderer before submission of tender. 

4.3 Rates to be in Figures and Words: The tender should quote in English both in 

figures as well as in words the rates and amounts tendered by him in the Schedule 

of Rates of Tender submitted by the CONTRACTOR for each item and in such a 

way that interpolation is not possible. The amount for each item should be worked 

out and entered and requisite total given of all items, both in figures and in words. 

The tendered amount for the work shall be entered in the tender and duly signed 

by the Tenderer. 

If some discrepancies are found between the RATES in FIGURES and 

WORDS or the AMOUNT shown in the tender, the following procedure shall 

be followed: 

a) When there is difference between the rates in figures and words, the rate 

which corresponds to the amount worked out by the tenderer shall be 

taken as correct. 

Page 13 of 82

) When the rate quoted by the tenderer in figures and words tally but the 

amount is incorrect the rate quoted by the tenderer shall be taken as 

correct. 

c) When it is not possible to ascertain the correct rate by either of above 

methods, the rate quoted in words shall be taken as correct. 

4.4 Corrections and Erasures: All correction(s) and alteration(s) in the entries of tender 

paper shall be signed in full by the TENDERER with date. No erasure or over 

writing is permissible. 

4.5 Signature of Tenderer: 

4.5.1 The TENDERER shall contain the name, residence and place of business of 

person or persons making the tender and shall be signed by the TENDERER 

with his usual signature. Partnership firms shall furnish the full names of all 

partners in the tender. It should be signed in the partnership's name by all the 

partners or by duly authorised representatives followed by the name and 

designation of the person signing. Tender by a corporation shall be signed by 

an authorised representative, and a Power of Attorney in that behalf shall 

accompany the tender. A copy of the constitution of the firm with names of 

all partners shall be furnished. 

4.5.2 When a tenderer signs a tender in a language other than English, the total 

amount tendered should, in addition, be written in the same language. The 

signature should be attested by at least one witness. 

4.6 Witness: Witness and sureties shall be persons of status and property and their 

names, occupation and address shall be stated below their signature. 

4.7 Details of Experience: The tenderer should furnish, alongwith his tender, details of 

previous experience in having successfully completed in the recent past works of 

this nature, together with the names of Employers, location of sites and value of 

contract, date of commencement and completion of work, delays if any, reasons of 

delay and other details alongwith documentary evidence(s). 

4.8 Liability of Government of India: It is expressly understood and agreed by and 

between Bidder or/Contractor and M/s GAIL (India) Limited, and that M/s 

GAIL (India) Ltd., is entering into this agreement solely on its own behalf and 

not on behalf of any other person or entity. In particular, it is expressly 

understood and agreed that the Government of India is not a party to this 

agreement and has no liabilities, obligations or rights hereunder. It is expressly 

understood and agreed that M/s GAIL (India) Ltd. is an independent legal 

entity with power and authority to enter into contracts solely on its own behalf 

under the applicable Laws of India and general principles of Contract Law. 

The Bidder/Contractor expressly agrees, acknowledges and understands that 

M/s GAIL (India) Ltd. is not an agent, representative or delegate of the 

Government of India. It is further understood and agreed that the Government 

of India is not and shall not be liable for any acts, omissions, commissions, 

breaches or other wrongs arising out of the contract. Accordingly, 

Bidder/Contractor hereby expressly waives, releases and foregoes any and all 

actions or claims, including cross claims, impleader claims or counter claims 

against the Government of India arising out of this contract and covenants not 

to sue to Government of India as to any manner, claim, cause of action or thing 

whatsoever arising of or under this agreement. 

Page 14 of 82

5. Transfer of Tender 

Documents: 

5.1 Transfer of Tender Documents purchased by one intending tenderer to another is 

not permissible. 

6. Earnest Money: 6.1 The bidder must pay Earnest Money as given in the letter /notice inviting 

tenders and attach the official receipt with the tender failing which the tender 

is liable to be rejected and representatives of such tenderers will not be 

allowed to attend the tender opening. Earnest Money can be paid in Demand 

Drafts or Bank Guarantee or Banker’s Cheque or Letter of Credit from any 

Indian scheduled bank or a branch of an International bank situated in India 

and registered with Reserve Bank of India as scheduled foreign bank. 

However, other than the Nationalised Indian Banks, the banks whose BGs 

are furnished, must be commercial banks having net worth in excess of Rs. 

100 crores and a declaration to this effect should be made by such 

commercial bank either in the bank guarantee itself or separately on a letter 

head. 

The bid guarantee shall be submitted in the prescribed format . 

Note: The Bank Guarantee so furnished by the tenderer shall be in the 

proforma prescribed by the EMPLOYER. No interest shall be paid by the 

EMPLOYER on the Earnest Money deposited by the tenderer. The Bank 

Guarantee furnished in lieu of Earnest Money shall be kept valid for a period 

of "SIX MONTHS" from the date of opening of tender.(TWO MONTHS 

beyond the bid due date). 

The Earnest Money deposited by successful tenderer shall be forfeited if the 

Contractor fails to furnish the requisite Contract Performance Security as per 

clause 24 hereof and /or fails to start work within a period of 15 days or fails 

to execute the AGREEMENT within 15 days of the receipt by him of the 

Notification of Acceptance of Tender. 

Note: The Earnest Money of the unsuccessful bidder will be returned by 

EMPLOYER/CONSULTANT, directly to the tenderer (s), within a 

reasonable period of time but not later than 30 days after the 

expiration of the period of bid validity prescribed by EMPLOYER. 

7 Validity: 7.1 Tender submitted by tenderers shall remain valid for acceptance for a period of 

"4 MONTHS" from the date of opening of the tender. The tenderers shall not 

be entitled during the said period of 4 months, without the consent in writing 

of the EMPLOYER, to revoke or cancel his tender or to vary the tender given 

or any term thereof. In case of tender revoking or canceling his tender or 

varying any term in regard thereof without the consent of EMPLOYER in 

writing, the EMPLOYER shall forfeit Earnest Money paid by him alongwith 

tender. 

8 Addenda/Corrigenda 8.1 Addenda/ Corrigenda to the Tender Documents will be issued in duplicate 

prior to the date of opening of the tenders to clarify documents or to reflect 

modification in design or CONTRACT terms. 

8.2 Each addenda/ corrigendum issued will be issued in duplicate to each person 

or organisation to whom set of Tender Documents has been issued. Recipient 

will retain tenderer's copy of each Addendum/Corrigendum and attach 

original copy duly signed along with his offer. All Addenda/Corrigenda 

issued shall become part of Tender Documents. 

Page 15 of 82

9 Right of Employer to Accept 

or Reject Tender: 

9.1 The right to accept the tender will rest with the EMPLOYER. The 

EMPLOYER, however, does not bind himself to accept the lowest tender, and 

reserves to itself the authority to reject any or all the tenders received without 

assigning any reason whatsoever. At the option of the Employer, the work for 

which the tender had been invited, may be awarded to one Contractor or split 

between more than one bidders, in which case the award will be made for only 

that part of the work, in respect of which the bid has been accepted. The 

quoted rates should hold good for such eventualities. 

Tenders in which any of the particulars and prescribed information are 

missing or are incomplete in any respect and/or the prescribed conditions are 

not fulfilled are liable to be rejected. The Tender containing uncalled for 

remarks or any additional conditions are liable to be rejected. 

Canvassing in connection with tenders is strictly prohibited and tenders 

submitted by the Tenderers who resort to canvassing will be liable to 

rejection. 

10 Time Schedule 10.1 The WORK shall be executed strictly as per the TIME SCHEDULE specified 

in TENDER/CONTRACT Document. The period of construction given in 

Time Schedule includes the time required for mobilisation as well as testing, 

rectifications if any, retesting and completion in all respects to the entire 

satisfaction of the ENGINEER-IN- CHARGE. 

10.2 A joint programme of execution of the WORK will be prepared by the 

ENGINEER-IN-CHARGE and CONTRACTOR based on priority 

requirement of this project. This programme will take into account the time 

of completion mentioned in 10.1 above and the time allowed for the priority 

works by the ENGINEER-IN-CHARGE. 

10.3 Monthly/Weekly construction programme will; be drawn up by the 

ENGINEER-IN-CHARGE jointly with the CONTRACTOR, based on 

availability of work fronts and the joint construction programme as per 10.2 

above. The CONTRACTOR shall scrupulously adhere to these targets 

/programmes by deploying adequate personnel, construction tools and tackles 

and he shall also supply himself all materials of his scope of supply in good 

time to achieve the targets/programmes. In all matters concerning the extent 

of targets set out in the weekly and monthly programmes and the degree of 

achievements the decision of the ENGINEER-IN-CHARGE will be final and 

binding on the CONTRACTOR. 

11 Tenderer’s Responsibility 11.1 The intending tenderers shall be deemed to have visited the SITE and 

familiarised submitting the tender. Non-familiarity with the site conditions 

will not be considered a reason either for extra claims or for not carrying out 

the works in strict conformity with the DRAWINGS and SPECIFICATIONS 

or for any delay in performance. 

12 Retired Government or 

Company Officers 

12.1 No Engineer of Gazetted rank or other Gazetted Officer employed in 

Engineering or Administrative duties in an Engineering Department of the 

States/ Central Government or of the EMPLOYER is allowed to work as a 

CONTRACTOR for a period of two years after his retirement from 

Government Service, or from the employment of the EMPLOYER without 

the previous permission of the EMPLOYER. The CONTRACT, if awarded, 

is liable to be cancelled if either the CONTRACTOR or any of his employees 

Page 16 of 82

is found at any time to be such a person, who has not obtained the permission 

of the State/Central Government or of the EMPLOYER as aforesaid before 

submission of tender, or engagement in the CONTRACTOR'S service as the 

case may be. 

13 Signing of the Contract: 13.1 The successful tenderer shall be required to execute an AGREEMENT in the 

proforma attached with TENDER DOCUMENT within 15 days of the receipt 

by him of the Notification of Acceptance of Tender. In the event of failure on 

the part of the successful tenderer to sign the AGREEMENT within the above 

stipulated period, the Earnest Money or his initial deposit will be forefeited 

and the acceptance of the tender shall be considered as cancelled. 

14 Field Management & 

Controlling/Coordinating 

Authority: 

14.1 The field management will be the responsibility of the 

ENGINEER-IN-CHARGE, who will be nominated by the EMPLOYER. The 

ENGINEER-IN-CHARGE may also authorise his representatives to assist in 

performing his duties and functions. 

14.2 The ENGINEER-IN-CHARGE shall coordinate the works of various agencies 

engaged at site to ensure minimum disruption of work carried out by different 

agencies. It shall be the responsibility of the CONTRACTOR to plan and 

execute the work strictly in accordance with site instructions to avoid 

hindrance to the work being executed by other agencies. 

15 Note to Schedule of Rates: 15.1 The Schedule of Rates should be read in conjunction with all the other sections 

of the tender. 

16 Policy for Tenders Under 

Consideration: 

15.2 The tenderer shall be deemed to have studied the DRAWINGS, 

SPECIFICATIONS and details of work to be done within TIME SCHEDULE 

and to have aquainted himself of the condition prevailing at site. 

15.3 Rates must be filled in the Schedule of Rates of original Tender Documents. If 

quoted in separate typed sheets no variation in item description or specification 

shall be accepted. Any exceptions taken by the tenderer to the Schedule of 

Rates shall be brought out in the terms and conditions of the offer. 

15.4 The quantities shown against the various items are only approximate. Any 

increase or decrease in the quantities shall not form the basis of alteration of 

the rates quoted and accepted. 

15.5 The EMPLOYER reserves the right to interpolate the rates for such items of work 

falling between similar items of lower and higher magnitude. 

16.1 Only Those Tenders which are complete in all respects and are strictly in 

accordance with the Terms and Conditions and Technical Specifications of 

Tender Document, shall be considered for evaluation. Such Tenders shall be 

deemed to be under consideration immediately after opening of Tender and 

until such time an official intimation of acceptance /rejection of Tender is 

made by GAIL to the Bidder. 

16.2 Zero Deviation: Bidders to note that this is a ZERO DEVIATION 

TENDER. GAIL will appreciate submission of offer based on the terms 

and conditions in the enclosed General Conditions of Contract (GCC), 

Special Conditions of Contract (SCC), Instructions to Bidders (ITB), Scope 

of Work, technical specifications etc. to avoid wastage of time and money 

in seeking clarifications on technical/ commercial aspects of the offer. 

Page 17 of 82

Bidder may note that no technical and commercial clarifications will be 

sought for after the receipt of the bids. In case of any 

deviation/nonconformity observed in the bid, it will be liable for rejection. 

17 Award of Contract: 17.1 The Acceptance of Tender will be intimated to the successful Tenderer by 

GAIL either by Telex/ Telegram/ Fax or by Letter or like means-defined as 

LETTER OF ACCEPTANCE OF TENDER. 

18 Clarification of Tender 

Document: 

17.2 GAIL will be the sole judge in the matter of award of CONTRACT and the 

decision of GAIL shall be final and binding. 

18.1 The Tender is required to carefully examine the Technical Specifications, 

Conditions of Contract, Drawings and other details relating to WORK and 

given in Tender Document and fully inform himself as to all conditions and 

matters which may in any way affect the WORK or the cost thereof. In case 

the Tenderer is in doubt about the completeness or correctness of any of the 

contents of the Tender Documents he should request in writing for an 

interpretation/clarification to GAIL in triplicate. GAIL will then issue 

interpretation/clarification to Tenderer in writing. Such clarifications and or 

interpretations shall form part of the Specifications and Documents and shall 

accompany the tender which shall be submitted by tenderer within time and 

date as specified in invitations to tender. 

18.2 Verbal clarification and information given by GAIL or its employee(s) or its 

representatives shall not in any way be binding on GAIL. 

19 Local Conditions: 19.1 It will be imperative on each tenderer to inform himself of all local conditions 

and factors which may have any effect on the execution of WORK covered 

under the Tender Document. In their own interest, the tenderer are requested 

to familiarise themselves with the Indian Income Tax Act 1961, Indian 

Companies Act 1956, Indian Customs Act 1962 and other related Acts and 

Laws and Regulations of India with their latest amendments, as applicable 

GAIL shall not entertain any requests for clarifications from the tenderer 

regarding such local conditions. 

19.2 It must be understood and agreed that such factors have properly been 

investigated and considered while submitting the tender. No claim for 

financial or any other adjustments to VALUE OF CONTRACT, on lack of 

clarity of such factors shall be entertained. 

20 Abnormal Rates: 20.1 The tenderer is expected to quote rate for each item after careful analysis of 

cost involved for the performance of the completed item considering all 

specifications and Conditions of Contract. This will avoid loss of profit or 

gain in case of curtailment or change of specification for any item. In case it 

is noticed that the rates quoted by the tenderer for any item are unusually high 

or unusually low, it will be sufficient cause for the rejection of the tender 

unless the EMPLOYER is convinced about the reasonableness after scrutiny 

of the analysis for such rate(s) to be furnished by the tenderer (on demand). 

21 Priority of Contract 

Documents 

Section-IV. General Obligations 

21.1 Except if and the extent otherwise provided by the Contract, the 

provisions of the General Conditions of Contract and Special Conditions 

shall prevail over those of any other documents forming part of the 

Page 18 of 82

22 Special Conditions of 

Contract: 

CONTRACT. Several documents forming the CONTRACT are to be 

taken as mutually explanatory of one another, but in case of ambiguities 

or discrepancies the same shall be explained and adjusted by the 

ENGINEER-IN-CHARGE who shall thereupon issue to the Contractor 

instructions thereon and in such event, unless otherwise provided in the 

Contract, the priority of the documents forming the Contract shall be as 

follows : 

1) The Contract Agreement ; 

2) The Letter of Acceptance; 

3) The (Instructions to Bidders)ITB; 

4) Special Conditions of Contract (SCC); 

5) General Conditions of Contract (GCC) 

6) Any other document forming part of the Contract. 

Works shown in the DRAWING but not mentioned in the 

SPECIFICATIONS OR described in the SPECIFICATIONS without being 

shown in the DRAWINGS shall nevertheless be deemed to be included in 

the same manner as if they had been specifically shown upon the 

DRAWINGS and described in the SPECIFICATIONS. 

21.2 Headings and Marginal Notes: All headings and marginal notes to the 

clauses of these General Conditions of Contract or to the 

SPECIFICATIONS or to any other Tender Document are solely for the 

purpose of giving a concise indication and not a summary of the contents 

thereof, and they shall never be deemed to be part thereof or be used in 

the interpretation or construction thereof the CONTRACT. 

21.3 Singular and Plural: In CONTRACT DOCUMENTS unless otherwise 

stated specifically, the singular shall include the plural and vice versa 

wherever the context so requires. 

21.4 Interpretation: Words implying `Persons' shall include relevant 

`Corporate Companies / Registered Associations/ Body of Individuals/ 

Firm of Partnership' as the case may be. 

22.1 Special Conditions of Contract shall be read in conjunction with the 

General Conditions of Contract, specification of Work, Drawings and 

any other documents forming part of this CONTRACT wherever the 

context so requires. 

22.2 Notwithstanding the sub-division of the documents into these separate 

sections and volumes every part of each shall be deemed to be 

supplementary to and complementary of every other part and shall be 

read with and into the CONTRACT so far as it may be practicable to do 

so. 

22.3 Where any portion of the General Condition of Contract is repugnant to or at 

variance with any provisions of the Special Conditions of Contract, 

unless a different intention appears the provisions of the Special 

Conditions of Contract shall be deemed to over-ride the provisions of the 

General Conditions of Contract and shall to the extent of such 

repugnancy, or variations, prevail. 

22.4 Wherever it is mentioned in the specifications that the CONTRACTOR shall 

Page 19 of 82

23 Contractor to obtain his 

own Information: 

perform certain WORK or provide certain facilities, it is understood that 

the CONTRACTOR shall do so at his cost and the VALUE OF 

CONTRACT shall be deemed to have included cost of such performance 

and provisions, so mentioned. 

22.5 The materials, design and workmanship shall satisfy the relevant 

INDIAN STANDARDS, the JOB SPECIFICATIONS contained herein 

and CODES referred to. Where the job specification stipulate 

requirements in addition to those contained in the standard codes and 

specifications, these additional requirements shall also be satisfied. 

23.1 The CONTRACTOR in fixing his rate shall for all purpose whatsoever 

reason may be, deemed to have himself independently obtained all 

necessary information for the purpose of preparing his tender and his 

tender as accepted shall be deemed to have taken into account all 

contingencies as may arise due to such information or lack of same. The 

correctness of the details, given in the Tender Document to help the 

CONTRACTOR to make up the tender is not guaranteed. 

The CONTRACTOR shall be deemed to have examined the 

CONTRACT DOCUMENTS, to have generally obtained his own 

information in all matters whatsoever that might affect the carrying out 

of the works at the schedules rates and to have satisfied himself to the 

sufficiency of his tender. Any error in description of quantity or 

omission therefrom shall not vitiate the CONTRACT or release the 

CONTRACTOR from executing the work comprised in the 

CONTRACT according to DRAWINGS and SPECIFICATIONS at the 

scheduled rates. He is deemed to have known the scope, nature and 

magnitude of the WORKS and the requirements of materials and labour 

involved etc., and as to what all works he has to complete in accordance 

with the CONTRACT documents whatever be the defects, omissions or 

errors that may be found in the DOCUMENTS. The CONTRACTOR 

shall be deemed to have visited surroundings, to have satisfied himself to 

the nature of all existing structures, if any, and also as to the nature and 

the conditions of the Railways, Roads, Bridges and Culverts, means of 

transport and communication, whether by land, water or air, and as to 

possible interruptions thereto and the access and egress from the site, to 

have made enquiries, examined and satisfied himself as to the sites for 

obtaining sand, stones, bricks and other materials, the sites for disposal 

of surplus materials, the available accommodation as to whatever 

required, depots and such other buildings as may be necessary for 

executing and completing the works, to have made local independent 

enquiries as to the sub-soil, subsoil water and variations thereof, storms, 

prevailing winds, climatic conditions and all other similar matters 

effecting these works. He is deemed to have acquainted himself as to his 

liability of payment of Government Taxes, Customs duty and other 

charges, levies etc. 

Any neglect or omission or failure on the part of the CONTRACTOR in 

obtaining necessary and reliable information upon the foregoing or any 

other matters affecting the CONTRACT shall not relieve him from any 

risks or liabilities or the entire responsibility from completion of the 

works at the scheduled rates and times in strict accordance with the 

CONTRACT. 

It is, therefore, expected that should the CONTRACTOR have any doubt 

Page 20 of 82

24 Contract Performance 

Security: 

as to the meaning of any portion of the CONTRACT DOCUMENT he 

shall set forth the particulars thereof in writing to EMPLOYER in 

duplicate, before submission of tender. The EMPLOYER may provide 

such clarification as may be necessary in writing to CONTRACT, such 

clarifications as provided by EMPLOYER shall form part of 

CONTRACT DOCUMENTS. 

No verbal agreement or inference from conversation with any effect or 

employee of the EMPLOYER either before, during or after the execution 

of the CONTRACT agreement shall in any way affect or modify and of 

the terms or obligations herein contained. 

Any change in layout due to site conditions or technological 

requirement shall be binding on the CONTRACTOR and no extra 

claim on this account shall be entertained. 

24.1 The CONTRACTOR shall furnish to the EMPLOYER, within 15 days 

from the date of notification of award, a security in the sum of 10% of 

the accepted value of the tender or the actual value of work to be done 

whichever is applicable due to any additional work or any other reasons, 

in the form of a Bank draft/Banker’s cheque or Bank Guarantee or 

irrevocable Letter of credit (as per proforma enclosed) as Contract 

Performance Security with the EMPLOYER which will be refunded 

after the expiry of DEFECTS LIABILITY PERIOD. 

24.2 CONTRACTOR can furnish the Contract Performance Security in the 

form of Demand Draft or through a Bank Guarantee or through an 

irrevocable Letter of Credit from any Indian scheduled bank or a 

branch of an International bank situated in India and registered with 

Reserve Bank of India as scheduled foreign bank. However, other than 

the Nationalised Indian Banks, the banks whose BGs are furnished, 

must be commercial banks having net worth in excess of Rs. 100 

crores and a declaration to this effect should be made by such 

commercial bank either in the bank guarantee itself or separately on a 

letter head. 

The bank guarantee or the Letter of Credit shall be submitted in the 

prescribed format. 

24.3 If the CONTRACTOR/SUB-CONTRACTOR or their employees or the 

CONTRACTOR’s agents and representatives shall damage, break, 

deface or destroy any property belonging to the EMPLOYER or others 

during the execution of the CONTRACT, the same shall be made good 

by the CONTRACTOR at his own expenses and in default thereof, the 

ENGINEER-IN-CHARGE may cause the same to be made good by 

other agencies and recover expenses from the CONTRACTOR (for 

which the certificate of the ENGINEER- IN-CHARGE shall be final). 

24.4 All compensation or other sums of money payable by the CONTRACTOR 

to the EMPLOYER under terms of this CONTRACT may be deducted 

from or paid by the encashment or sale of a sufficient part of his Contract 

Performance Security or from any sums which may be due or may 

become due to the CONTRACTOR by the EMPLOYER of any account 

whatsoever and in the event of his Contract Performance Security being 

reduced by reasons of any such deductions or sale of aforesaid, the 

CONTRACTOR shall within ten days thereafter make good in cash, 

Page 21 of 82

ank drafts as aforesaid any sum or sums which may have been deducted 

from or realised by sale of his Contract Performance Security, or any part 

thereof. No interest shall be payable by the EMPLOYER for sum 

deposited as Contract Performance Security. 

24.5 Failure of the successful bidder to comply with the requirements of this 

Clause shall constitute sufficient grounds for the annulment of the award 

and the forfeiture of bid security. 

25 Time of Performance: 25.1 Time for Mobilisation 

The work covered by this CONTRACT shall be commenced within 

fifteen (15) days, the date of letter/Fax of Intent and be completed in 

stages on or before the dates as mentioned in the TIME SCHEDULE OF 

COMPLETION OF WORK. The CONTRACTOR should bear in mind 

that time is the essence of this agreement. Request for revision of 

construction time after tenders are opened will not receive consideration. 

The above period of fifteen (15) days is included within the overall 

COMPLETION SCHEDULE, not over and above the completion time to 

any additional work or any other reasons. 

25.2 Time Schedule of Construction: 

25.2.1 The general Time Schedule of construction is given in the TENDER 

DOCUMENT. CONTRACTOR should prepare a detailed monthly or 

weekly construction program jointly with the 

ENGINEER-IN-CHARGE within 15 days of receipt of LETTER/FAX 

OF INTENT or ACCEPTANCE OF TENDER. The WORK shall be 

executed strictly as per the Time Schedule given in the CONTRACT 

DOCUMENT. The period of construction given includes the time 

required for mobilisation testing, rectifications, if any, retesting and 

completion in all respects in accordance with CONTRACT 

DOCUMENT to the entire satisfaction of the 


25.2.2 The CONTRACTOR shall submit a detailed PERT network within the 

time frame agreed above consisting of adequate number of activities 

covering various key phases of the WORK such as design, procurement, 

manufacturing, shipment and field erection activities within fifteen (15) 

days from the date of LETTER/FAX OF INTENT. This network shall 

also indicate the interface facilities to be provided by the EMPLOYER 

and the dates by which such facilities are needed. 

25.2.3 CONTRACTOR shall discuss the network so submitted with the 

EMPLOYER and the agreed network which may be in the form as 

submitted with the EMPLOYER or in revised form in line with the 

outcome of discussions shall form part of the CONTRACT, to be signed 

within fifteen (15) days from the date of LETTER OF ACCEPTANCE 

OF TENDER. During the performance of the CONTRACT, if in the 

opinion of the EMPLOYER proper progress is not maintained suitable 

changes shall be made in the CONTRACTOR's operation to ensure 

proper progress. 

The above PERT network shall be reviewed periodically and reports 

shall be submitted by the CONTRACTOR as directed by EMPLOYER. 

26 Force Majeure: 26.1 CONDITIONS FOR FORCE MAJEURES 

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27 

Price reduction schedule: 

In the event of either party being rendered unable by Force Majeure to 

perform any obligations required to be performed by them under the 

CONTRACT the relative obligation of the party affected by such Force 

Majeures shall upon notification to the other party be suspended for the 

period during which Force Majeures event lasts. The cost and loss 

sustained by the either party shall be borne by the respective parties. 

The term "Force Majeures" as employed herein shall mean acts of God, 

earthquake, war (declared or undeclared), revolts, riots, fires, floods, 

rebellions, explosions, hurricane, sabotage, civil commotions and acts 

and regulations of respective Government of the two parties, namely the 

EMPLOYER and the CONTRACTOR. 

Upon the occurrence of such cause(s) and upon its termination, the party 

alleging that it has been rendered unable as aforesaid thereby, shall 

notify the other party in writing immediately but not later than 72 

(Seventy-two) hours of the alleged beginning and ending thereof giving 

full particulars and satisfactory evidence in support of its claim. 

Time for performance of the relative obligation suspended by the Force 

Majeures shall then stand extended by the period for which such cause 

lasts. 

If deliveries of bought out items and/or works to be executed by the 

CONTRACTOR are suspended by Force Majeure conditions lasting for 

more than 2 (two) months the EMPLOYER shall have the option to 

terminate the CONTRACT or re-negotiate the contract provisions. 

26.2 OUTBREAK OF WAR 

26.2.1 If during the currency of the CONTRACT there shall be an out-break of 

war whether declared or not, in that part of the World which whether 

financially or otherwise materially affect the execution of the WORK 

the CONTRACTOR shall unless and until the CONTRACT is 

terminated under the provisions in this clause continue to use his best 

endeavour to complete the execution of the WORK, provided always 

that the EMPLOYER shall be entitled, at any time after such out-break 

of war to terminate or re-negotiate the CONTRACT by giving notice in 

writing to the CONTRACTOR and upon such notice being given the 

CONTRACT shall, save as to the rights of the parties under this clause 

and to the operation of the clauses entitled settlement of Disputes and 

Arbitration hereof, be terminated but without prejudice to the right of 

either party in respect of any antecedent breach thereof. 

26.2.2 If the CONTRACT shall be terminated under the provisions of the above 

clause, the CONTRACTOR shall with all reasonable diligence remove 

from the SITE all the CONTRACTOR's equipment and shall give 

similar facilities to his SUB-CONTRACTORS to do so. 

27.1 Time is the essence of the CONTRACT. In case the CONTRACTOR 

fails to complete the WORK within the stipulated period, then, unless 

such failure is due to Force Majeure as defined in Clause 26 here above 

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, 

Page 23 of 82

27.3 

Bonus For Early 

Completion (*) 

28 Rights of the employer to 

forfeit contract performance 

security: 

29 Failure by the contractor to 

comply with the provisions 

of the contract: 

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. 

27.2 All sums payable under this clause is the reduction in price due to delay 

in completion period at the above agreed rate. 

27.3 BONUS FOR EARLY COMPLETION 

If the Contractor achieves completion of Works in all respect prior to 

the time schedule stipulated in the SCC, the Employer shall pay to the 

Contractor the relevant sum, if mentioned specifically in SCC, as bonus 

for early completion. The bonus for early completion, if provided 

specifically in SCC, shall be payable to the maximum ceiling of 2 ½ % 

of the total contract price. 

(*) Partial earlier completion may not always produce net benefits to the 

Employer, for example where utilization of the completed Works 

requires (a) the fulfillment of all parts of the Contract (e.g. the training 

of personnel); or (b) the completion of all Sections (e.g. in pipeline 

laying, where early completion of the laying of pipeline would not be 

useful if the compressor is still under installation); or (c) certain seasonal 

effects to take place (e.g. onset of the rainy season, for impounding a 

reservoir); or (d) other circumstances. Also a more rapid drawdown of 

budgeted funds may be required. All such factors should be considered 

prior to the inclusion of a bonus clause in the Contract. 

28.1 Whenever any claim against the CONTRACTOR for the payment of a 

sum of money arises out or under the CONTRACT, the EMPLOYER 

shall be entitled to recover such sum by appropriating in part or whole 

the Contract Performance Security of the CONTRACTOR. In the event 

of the security being insufficient or if no security has been taken from 

the CONTRACTOR, then the balance or the total sum recoverable, as 

the case may be shall be deducted from any sum then due or which at 

any time thereafter may become due to the CONTRACTOR. The 

CONTRACTOR shall pay to the EMPLOYER on demand any balance 

remaining due. 

29.1 If the CONTRACTOR refuses or fails to execute the WORK or any 

separate part thereof with such diligence as will ensure its completion 

within the time specified in the CONTRACT or extension thereof or 

fails to perform any of his obligation under the CONTRACT or in any 

manner commits a breach of any of the provisions of the CONTRACT 

it shall be open to the EMPLOYER at its option by written notice to the 

CONTRACTOR: 

a) TO DETERMINE THE CONTRACT in which 

event the CONTRACT shall stand terminated and shall cease 

to be in force and effect on and from the date appointed by the 

EMPLOYER on that behalf, whereupon the CONTRACTOR 

shall stop forthwith any of the CONTRACTOR's work then in 

Page 24 of 82

progress, except such WORK as the EMPLOYER may, in 

writing, require to be done to safeguard any property or 

WORK, or installations from damage, and the EMPLOYER, 

for its part, may take over the work remaining unfinished by 

the CONTRACTOR and complete the same through a fresh 

contractor or by other means, at the risk and cost of the 

CONTRACTOR, and any of his sureties if any, shall be liable 

to the EMPLOYER for any excess cost occasioned by such 

work having to be so taken over and completed by the 

EMPLOYER over and above the cost at the rates specified in 

the schedule of quantities and rate/prices. 

b) WITHOUT DETERMINING THE CONTRACT to 

take over the work of the CONTRACTOR or any part thereof 

and complete the same through a fresh contractor or by other 

means at the risk and cost of the CONTRACTOR. The 

CONTRACTOR and any of his sureties are liable to the 

EMPLOYER for any excess cost over and above the cost at 

the rates specified in the Schedule of Quantities/ rates, 

occasioned by such works having been taken over and 

completed by the EMPLOYER. 

29.2 In such events of Clause 29.1(a) or (b) above. 

a) The whole or part of the Contract Performance 

Security furnished by the CONTRACTOR is liable to be 

forfeited without prejudice to the right of the EMPLOYER to 

recover from the CONTRACTOR the excess cost referred to 

in the sub-clause aforesaid, the EMPLOYER shall also have 

the right of taking possession and utilising in completing the 

works or any part thereof, such as materials equipment and 

plants available at work site belonging to the CONTRACTOR 

as may be necessary and the CONTRACTOR shall not be 

entitled for any compensation for use or damage to such 

materials, equipment and plant. 

b) The amount that may have become due to the 

CONTRACTOR on account of work already executed by him 

shall not be payable to him until after the expiry of Six (6) 

calendar months reckoned from the date of termination of 

CONTRACT or from the taking over of the WORK or part 

thereof by the EMPLOYER as the case may be, during which 

period the responsibility for faulty materials or workmanship 

in respect of such work shall, under the CONTRACT, rest 

exclusively with the CONTRACTOR. This amount shall be 

subject to deduction of any amounts due from the 

CONTRACT to the EMPLOYER under the terms of the 

CONTRACT authorised or required to be reserved or retained 

by the EMPLOYER. 

29.3 Before determining the CONTRACT as per Clause 29.1(a) or (b) 

provided in the judgement of the EMPLOYER, the default or defaults 

committed by the CONTRACTOR is/are curable and can be cured by 

the CONTRACTOR if an opportunity given to him, then the 

EMPLOYER may issue Notice in writing calling the CONTRACTOR 

to cure the default within such time specified in the Notice. 

Page 25 of 82

30 Contractor remains liable to 

pay compensation if action 

not taken under clause 29: 

29.4 The EMPLOYER shall also have the right to proceed or take action as 

per 29.1(a) or (b) above, in the event that the CONTRACTOR becomes 

bankrupt, insolvent, compounds with his creditors, assigns the 

CONTRACT in favour of his creditors or any other person or persons, 

or being a company or a corporation goes into voluntary liquidation, 

provided that in the said events it shall not be necessary for the 

EMPLOYER to give any prior notice to the CONTRACTOR. 

29.5 Termination of the CONTRACT as provided for in sub- clause 29.1(a) 

above shall not prejudice or affect their rights of the EMPLOYER 

which may have accrued upto the date of such termination. 

30.1 In any case in which any of the powers conferred upon the 

EMPLOYER BY CLAUSE 29.0 thereof shall have become exercisable 

and the same had not been exercised, the non-exercise thereof shall not 

constitute a waiver of any of the conditions hereof and such powers 

shall notwithstanding be exercisable in .the event of any further case of 

default by the CONTRACTOR for which by any clause or clauses 

hereof he is declared liable to pay compensation amounting to the whole 

of his Contract Performance Security, and the liability of the 

CONTRACTOR for past and future compensation shall remain 

unaffected. In the event of the EMPLOYER putting in force the power 

under above sub-clause (a), (b) or (c) vested in him under the preceding 

clause he may, if he so desired, take possession of all or any tools, and 

plants, materials and stores in or upon the works or the site thereof 

belonging to the CONTRACTOR or procured by him and intended to 

be used for the execution of the WORK or any part thereof paying or 

allowing for the same in account at the CONTRACT rates or in case of 

these not being applicable at current market rates to be certified by the 

ENGINEER-IN-CHARGE whose certificate thereof shall be final, 

otherwise the ENGINEER-IN- CHARGE may give notice in writing to 

the CONTRACTOR or his clerk of the works, foreman or other 

authorised agent, requiring him to remove such tools, plant, materials or 

stores from the premises (within a time to be specified in such notice), 

and in the event of the CONTRACTOR failing to comply with any such 

requisition, the ENGINEER-IN-CHARGE may remove them at the 

CONTRACTOR's expense or sell them by auction or private sale on 

account of the CONTRACTOR and at his risk in all respects without 

any further notice as to the date, time or place of sale and the certificate 

of the ENGINEER-IN-CHARGE as to the expenses of any such 

removal and the amount of the proceeds and expenses of any such sale 

shall be final and conclusive against the CONTRACTOR. 

31 Change in constitution: 31.1 Where the CONTRACTOR is a partnership firm, the prior approval of 

the EMPLOYER shall be obtained in writing, before any change is 

made in the constitution of the firm. Where the CONTRACTOR is an 

individual or a Hindu undivided family business concern, such approval 

as aforesaid shall,likewise be obtained before such CONTRACTOR 

enters into any agreement with other parties, where under, the 

reconstituted firm would have the right to carry out the work hereby 

undertaken by the CONTRACTOR. In either case if prior approval as 

aforesaid is not obtained, the CONTRACT shall be deemed to have 

been allotted in contravention of clause 37 hereof and the same action 

may be taken and the same consequence shall ensure as provided in the 

said clause. 

Page 26 of 82

32 Termination of contract 

33 Members of the employer 

not individually liable : 

32(A) TERMINATION OF CONTRACT FOR DEATH: 

If the CONTRACTOR is an individual or a proprietary concern and 

the individual or the proprietor dies or if the CONTRACTOR is a 

partnership concern and one of the partner dies then unless, the 

EMPLOYER is satisfied that the legal representative of the individual 

or the proprietory concern or the surviving partners are capable of 

carrying out and completing CONTRACT, he (the EMPLOYER)is 

entitled to cancel the CONTRACT for the uncompleted part without 

being in any way liable for any compensation payment to the estate of 

the diseased CONTRACTOR and/or to the surviving partners of the 

CONTRACTOR'S firm on account of the cancellation of 

CONTRACT. The decision of the EMPLOYER in such assessment 

shall be final and binding on the parties. In the event of such 

cancellation, the EMPLOYER shall not hold the estate of the diseased 

CONTRACTOR and/or the surviving partners of the 

CONTRACTOR'S firm liable for any damages for non-completion of 

CONTRACT. 

32(B) TERMINATION OF CONTRACT IN CASE OF LIQUIDATION / 

BANKRUPTCY ETC. 

If the Contractor shall dissolve or become bankrupt or insolvent or 

cause or suffer any receiver to be appointed of his business of any 

assets thereof 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 any of 

them, 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 give the Receiver or liquidator or other person, the 

option of carrying out the contract subject to his providing a guarantee 

upto an amount to be agreed upon by EMPLOYER for due and faithful 

performance of the contract. 

32 (C) In case of termination of CONTRACT herein set forth (under clause 

29.0) except under conditions of Force Majeure and termination after 

expiry of contract, the CONTRACTOR shall be put under holiday [i.e. 

neither any enquiry will be issued to the party by GAIL (India) Ltd. 

against any type of tender nor their offer will be considered by GAIL 

against any ongoing tender (s) where contract between GAIL and that 

particular CONTRACTOR (as a bidder) has not been finalized] for 

three years from the date of termination by GAIL (India) Ltd. to such 

CONTRACTOR. 

33.1 No Director, or official or employee of the EMPLOYER/ 

CONSULTANT shall in any way be personally bound or liable for the 

acts or obligations of the EMPLOYER under the CONTRACT or 

answerable for any default or omission in the observance or 

performance of any of the acts, matters or things which are herein 

contained. 

34 Employer not bound by 34.1 The CONTRACTOR shall not be entitled to any increase on the 

Page 27 of 82

personal representations: scheduled rates or any other right or claim whatsoever by reason of any 

representation, explanation statement or alleged representation, promise 

or guarantees given or alleged to have been given to him by any person. 

35 Contractor's office at site: 35.1 The CONTRACTOR shall provide and maintain an office at the site for 

the accommodation of his agent and staff and such office shall be open 

at all reasonable hours to receive instructions, notice or other 

communications. The CONTRACTOR at all time shall maintain a site 

instruction book and compliance of these shall be communicated to the 

ENGINEER-IN CHARGE from time to time and the whole document 

to be preserved and handed over after completion of works. 

36 Contractor's subordinate 

staff and their conduct 

36.1 The CONTRACTOR, on or after award of the WORK shall name and 

depute a qualified engineer having sufficient experience in carrying out 

work of similar nature, to whom the equipments, materials, if any, shall 

be issued and instructions for works given. The CONTRACTOR shall 

also provide to the satisfaction of the ENGINEER-IN- CHARGE 

sufficient and qualified staff to superintend the execution of the WORK, 

competent sub-agents, foremen and leading hands including those 

specially qualified by previous experience to supervise the types of 

works comprised in the CONTRACT in such manner as will ensure 

work of the best quality, expeditious working. Whenever in the opinion 

of the ENGINEER-IN- CHARGE additional properly qualified 

supervisory staff is considered necessary, they shall be employed by the 

CONTRACTOR without additional charge on accounts thereof. The 

CONTRACTOR shall ensure to the satisfaction of the 

ENGINEER-IN-CHARGE that SUB- CONTRACTORS, if any, shall 

provide competent and efficient supervision, over the work entrusted to 

them. 

36.2 If and whenever any of the CONTRACTOR's or SUB- 

CONTRACTOR'S agents, sub-agents, assistants, foremen, or other 

employees shall in the opinion of ENGINEER-IN- CHARGE be guilty 

of any misconduct or be incompetent or insufficiently qualified or 

negligent in the performance of their duties of that in the opinion of the 

EMPLOYER or the ENGINEER-IN-CHARGE, it is undesirable for 

administrative or any other reason for such person or persons to be 

employed in the works, the CONTRACTOR, is so directed by the 

ENGINEER-IN-CHARGE, shall at once remove such person or persons 

from employment thereon. Any person or persons so removed from the 

works shall not again be employed in connection with the WORKS 

without the written permission of the ENGINEER-IN- CHARGE. Any 

person so removed from the WORK shall be immediately re-placed at 

the expense of the CONTRACTOR by a qualified and competent 

substitute. Should the CONTRACTOR be requested to repatriate any 

person removed from the works he shall do so and shall bear all costs in 

connection herewith. 

36.3 The CONTRACTOR shall be responsible for the proper behaviour of 

all the staff, foremen, workmen, and others, and shall exercise a proper 

degree of control over them and in particular and without prejudice to 

the said generality, the CONTRACTOR shall be bound to prohibit and 

prevent any employees from trespassing or acting in any way 

detrimental or prejudicial to the interest of the community or of the 

Page 28 of 82

properties or occupiers of land and properties in the neighborhood and 

in the event of such employee so trespassing, the CONTRACTOR shall 

be responsible therefore and relieve the EMPLOYER of all consequent 

claims or actions for damages or injury or any other grounds 

whatsoever. The decision of the ENGINEER-IN-CHARGE upon any 

matter arising under this clause shall be final. The CONTRACTOR 

shall be liable for any liability to EMPLOYER on account of 

deployment of CONTRACTOR's staff etc. or incidental or arising out 

of the execution of CONTRACT. 

The CONTRACTOR shall be liable for all acts or omissions on the part 

of his staff, Foremen and Workmen and others in his employment, 

including misfeasance or negligence of whatever kind in the course of 

their work or during their employment, which are connected directly or 

indirectly with the CONTRACT. 

36.4 If and when required by the EMPLOYER and CONTRACTOR's 

personnel entering upon the EMPLOYER's premises shall be properly 

identified by badges of a type acceptable to the EMPLOYER which 

must be worn at all times on EMPLOYER's premises. CONTRACTOR 

may be required to obtain daily entry passes for his staff/employees 

from EMPLOYER to work within operating areas. These being safety 

requirements, no relaxations on this account shall be given to 

CONTRACTOR. 

37 Sub-letting of works: 37.1 No part of the CONTRACT nor any share or interest therein shall in any 

manner or degree be transferred, assigned or sublet by the 

CONTRACTOR directly or indirectly to any person, firm or corporation 

whatsoever without the consent in writing, of the 

ENGINEER/EMPLOYER except as provided for in the succeeding 

sub-clause. 

i) SUB-CONTRACTS FOR TEMPORARY WORKS ETC.: 

The EMPLOYER may give written consent to Sub- contract 

for the execution of any part of the WORK at the site, being 

entered in to by CONTRACTOR provided each individual 

Sub- contract is submitted to the ENGINEER-IN-CHARGE 

before being entered into and is approved by him. 

ii) LIST OF SUB-CONTRACTORS TO BE SUPPLIED: 

At the commencement of every month the CONTRACTOR 

shall furnish to the ENGINEER-IN- CHARGE list of all 

SUB-CONTRACTORS or other persons or firms engaged by 

the CONTRACTOR and working at the SITE during the 

previous month with particulars of the general nature of the 

Subcontract or works done by them. 

iii) CONTRACTOR'S LIABILITY NOT LIMITED BY SUB- 

CONTRACTORS: 

Notwithstanding any sub-letting with such approval as 

aforesaid and notwithstanding that the 

ENGINEER-IN-CHARGE shall have received copies of 

Page 29 of 82

any Subcontracts, the contractor shall be and shall remain 

solely responsible for the quality, proper and expeditious execution of 

the Contract in all respects as if such sub-letting or Subcontracting 

had not taken place, and as if such work had been done directly 

by the CONTRACTOR. The CONTRACTOR shall bear all 

responsibility for any act or omission on the part of subcontractors 

in regard to work to be performed under the 

CONTRACT. 

iv) EMPLOYER MAY TERMINATE SUB-CONTRACTS: 

If any SUB-CONTRACTOR engaged upon the works at the 

site executes any works which in the opinion of the 

ENGINEER-IN-CHARGE is not in accordance with the 

CONTRACT documents, the EMPLOYER may by written 

notice to the CONTRACTOR request him to terminate such 

subcontract and the CONTRACTOR upon the receipt of such 

notice shall terminate such Subcontract and dismiss the 

SUB-CONTRACTOR(S) and the later shall forthwith leave 

the works, failing which the EMPLOYER shall have the right 

to remove such SUB- CONTRACTOR(S) from the site. 

v) NO REMEDY FOR ACTION TAKEN UNDER THIS 

CLAUSE: 

No action taken by the EMPLOYER under the clause shall 

relieve the CONTRACTOR of any of his liabilities under the 

CONTRACT or give rise to any right or compensation, 

extension of time or otherwise failing which the EMPLOYER 

shall have the right to remove such SUB-CONTRACTOR(S) 

from the site. 

38 Power of entry: 38.1 If the CONTRACTOR shall not commence the WORK in the manner 

previously described in the CONTRACT documents or if he shall at any 

time in the opinion of the ENGINEER-IN-CHARGE. 

i) fail to carry out the WORK in conformity with the 

CONTRACT documents, or 

ii) fail to carry out the WORK in accordance with 

the Time Schedule, or 

iii) substantially suspend work or the WORK for a 

period of fourteen days without authority from 

the ENGINEER-IN-CHARGE, or 

iv) fail to carry out and execute the WORK to the 

satisfaction of the ENGINEER-IN-CHARGE, or 

v) fail to supply sufficient or suitable construction 

plant, temporary works, labour, materials or things, 

or 

vi) Commit, suffer, or permit any other breach of any of 

Page 30 of 82

39 Contractor's responsibility 

with the mechanical, 

electrical, 

intercommunication system, 

airconditioning contractors 

and other agencies: 

the provisions of the CONTRACT on his part to be 

performed or observed or persist in any of the above 

mentioned breaches of the CONTRACT for fourteen days, 

after notice in writing shall have been given to the 

CONTRACTOR by the 

ENGINEER-IN-CHARGE requiring such breach 

to be remedied, or 

vii) if the CONTRACTOR shall abandon the WORK 

or 

viii) If the CONTRACTOR during the continuance of the 

CONTRACT shall become bankrupt, make 

any arrangement or composition with his creditors, 

or permit any execution to be levied or go into 

liquidation whether compulsory or voluntary not 

being merely a voluntary liquidation for the purpose 

of amalgamation or reconstruction 

then in any such case, the EMPLOYER shall have the power to enter 

upon the WORK and take possession thereof and of the materials, 

temporary WORK, construction plant, and stock thereon, and to revoke 

the CONTRACTOR's licence to use the same, and to complete the 

WORK by his agents, other CONTRACTORS or workmen or to relate 

the same upon any terms and to such other person, firm or corporation 

as the EMPLOYER in his absolute discretion may think proper to 

employ and for the purpose aforesaid to use or authorise the use of any 

materials, temporary work, CONSTRUCTION PLANT, and stock as 

aforesaid, without making payment or allowance to the 

CONTRACTOR for the said materials other than such as may be 

certified in writing by the ENGINEER-IN-CHARGE to be reasonable, 

and without making any payment or allowance to the CONTRACTOR 

for the use of the temporary said works, construction plant and stock or 

being liable for any loss or damage thereto, and if the EMPLOYER 

shall by reason of his taking possession of the WORK or of the WORK 

being completed by other CONTRACTOR (due account being taken of 

any such extra work or works which may or be omitted) then the 

amount of such excess as certified by the ENGINEER-IN- CHARGE 

shall be deducted from any money which may be due for work done by 

the CONTRACTOR under the CONTRACT and not paid for. Any 

deficiency shall forthwith be made good and paid to the EMPLOYER 

by the CONTRACTOR and the EMPLOYER shall have power to sell 

in such manner and for such price as he may think fit all or any of the 

construction plant, materials etc. constructed by or belonging to and to 

recoup and retain the said deficiency or any part thereof out of proceeds 

of the sale. 

39.1 Without repugnance of any other condition, it shall be the responsibility 

of the CONTRACTOR executing the work of civil construction, to 

work in close cooperation and coordinate the WORK with the 

Mechanical, Electrical, Air-conditioning and Intercommunication 

Contractor's and other agencies or their authorised representatives, in 

providing the necessary grooves, recesses, cuts and opening etc., in wall, 

slabs beams and columns etc. and making good the same to the desired 

finish as per specification, for the placement of electrical, 

intercommunication cables, conduits, air-conditioning inlets and outlets 

Page 31 of 82

grills and other equipments etc. where required. For the above said 

requirements in the false ceiling and other partitions, the 

CONTRACTOR before starting-up the work shall in consultation with 

the Electrical, Mechanical, Intercommunication, Air-conditioning 

contractor and other agencies prepare and put-up a joint scheme, 

showing the necessary openings, grooves, recesses, cuts, the methods of 

fixing required for the WORK of the aforesaid, and the finishes therein, 

to the ENGINEER-IN-CHARGE and get the approval. The 

CONTRACTOR before finally submitting the scheme to the 

ENGINEER-IN-CHARGE, shall have the written agreement of the 

other agencies. The ENGINEER- IN-CHARGE, before communicating 

his approval to the scheme, with any required modification, shall get the 

final agreement of all the agencies, which shall be binding. No claim 

shall be entertained on account of the above. 

The CONTRACTOR shall confirm in all respects with provision of any 

statutory regulations, ordinances or byelaws of any local or duly 

constituted authorities or public bodies which may be applicable from 

time to time to the WORK or any temporary works. The 

CONTRACTOR shall keep the EMPLOYER indemnified against all 

penalties and liabilities of every kind, arising out of non- adherance to 

such stains, ordinances, laws, rules, regulations, etc. 

40 Other agencies at site: 40.1 The CONTRACTOR shall have to execute the WORK in such place 

and conditions where other agencies will also be engaged for other 

works such as site grading, filling, and levelling, electrical and 

mechanical engineering works, etc. No claim shall be entertained due to 

WORK being executed in the above circumstances. 

41 Notice: 

42 

Right of various interests: 

41.1 TO THE CONTRACTOR: 

Any notice hereunder may be served on the CONTRACTOR or his duly 

authorised representative at the job site or may be served by registered 

mail direct to the address furnished by the CONTRACTOR. Proof of 

issue of any such notice could be conclusive of the CONTRACTOR 

having been duly informed of all contents therein. 

41.2 TO THE EMPLOYER: 

Any notice to be given to the EMPLOYER under the terms of the 

CONTRACTOR shall be served by sending the same by Registered 

mail to or delivering the same at the respective site offices of M/S. 

GAIL (INDIA) LTD. addressed to the HEAD/SITE-IN-CHARGE. 

42.1 i) The EMPLOYER reserves the right to distribute the work 

between more than one agency(ies). The 

CONTRACTOR shall cooperate and afford other 

agency(ies) reasonable opportunity for access to the 

WORK for the carriage and storage of materials and 

execution of their works. 

ii) Wherever the work being done by any department of the 

EMPLOYER or by other agency(ies) employed by the 

EMPLOYER is contingent upon WORK covered by this 

CONTRACT, the respective rights of the various 

interests involved shall be determined by the 

Page 32 of 82

ENGINEER-IN-CHARGE to secure the completion of the 

various portions of the work in general harmony. 

43 Patents and royalties: 43.1 The CONTRACTOR, if licensed under any patent covering equipment, 

machinery, materials or compositions of matter to be used or supplied or 

methods and process to be practised or employed in the performance of 

this CONTRACT, agrees to pay all royalties and licence fees which 

may be due with respect thereto. If any equipment, machinery, 

materials, composition of matters, be used or supplied or methods and 

processes to be practised or employed in the performance of this 

CONTRACT,is covered by a patent under which the CONTRACTOR 

is not licensed then the CONTRACTOR before supplying or using the 

equipment, machinery materials, composition method or processes shall 

obtain such licences and pay such royalties and licence fees as may be 

necessary for performance of this CONTRACT. In the event the 

CONTRACTOR fails to pay any such royalty or obtain any such 

licence, any suit for infringement of such patents which is brought 

against the CONTRACTOR or the EMPLOYER as a result such failure 

will be defended by the CONTRACTOR at his own expense and the 

CONTRACTOR will pay any damages and costs awarded in such suit. 

The CONTRACTOR shall promptly notify the EMPLOYER if the 

CONTRACTOR has acquired the knowledge of any plant under which 

a suit for infringement could be reasonably brought because of the use 

by the EMPLOYER of any equipment, machinery, materials, process, 

methods to be supplied hereunder. The CONTRACTOR agrees to and 

does hereby grant to EMPLOYER, together with the right to extend the 

same to any of the subsidiaries of the EMPLOYER as irrevocable, 

royalty free licence to use in any country, any invention made by the 

CONTRACTOR or his employee in or as result of the performance of 

the WORK under the CONTRACT. 

43.2 All charges on account of royalty. toilage, rent, octroi terminal or sales 

tax and/or other duties or any other levy on materials obtained for the 

work or temporary work or part thereof (excluding materials provided 

by the EMPLOYER) shall be borne by the CONTRACTOR. 

43.3 The CONTRACTOR shall not sell or otherwise dispose of or remove 

except for the purpose of this CONTRACT, the sand, stone, clay, 

ballast, earth, rock or other substances, or materials obtained from any 

excavation made for the purpose of the WORK or any building or 

produce upon the site at the time of delivery of the possession thereof, 

but all such substances, materials, buildings and produce shall be the 

property of the EMPLOYER provided that the CONTRACTOR may 

with the permission of the ENGINEER-IN-CHARGE, use the same for 

the purpose of the work by payment of cost of the same at such a rate as 

may be determined by the ENGINEER-IN- CHARGE. 

43.4 The EMPLOYER shall indemnify and save harmless the 

CONTRACTOR from any loss on account of claims against 

CONTRACTOR for the contributory infringement of patent rights 

arising out and based upon the claim that the use of the EMPLOYER of 

the process included in the design prepared by the EMPLOYER and 

used in the operation of the plant infringes on any patent right. With 

respect to any subcontract entered into by CONTRACTOR pursuant to 

the provisions of the relevant clause hereof, the CONTRACTOR shall 

Page 33 of 82

obtain from the SUB-CONTRACTOR an undertaking to provide the 

EMPLOYER with the same patent protection that CONTRACTOR is 

required to provide under the provisions of this clause. 

44 Liens: 44.1 If, at any time there should be evidence or any lien or claim for which 

the EMPLOYER might have become liable and which is chargeable to 

the CONTRACTOR, the EMPLOYER shall have the right to retain out 

of any payment then due or thereafter to become due an amount 

sufficient to completely indemnify the EMPLOYER against such lien or 

claim and if such lien or claim be valid, the EMPLOYER may pay and 

discharge the same and deduct the amount so paid from any money 

which may be or may become due and payable to the CONTRACTOR. 

If any lien or claim remain unsettled after all payments are made, the 

CONTRACTOR shall refund or pay to the EMPLOYER all money that 

the latter may be compelled to pay in discharging such lien or claim 

including all costs and reasonable expenses. EMPLOYER reserves the 

right to do the same. 

45 Delays by employer or his 

authorised agents: 

44.2 The EMPLOYER shall have lien on all materials, equipments including 

those brought by the CONTRACTOR for the purpose of erection, 

testing and commissioning of the WORK. 

44.3 The final payment shall not become due until the CONTRACTOR 

delivers to the ENGINEER-IN-CHARGE a complete release or waiver 

of all liens arising or which may arise out of his agreement or receipt in 

full or certification by the CONTRACTOR in a form approved by 

ENGINEER-IN-CHARGE that all invoices for labour, materials, 

services have been paid in lien thereof and if required by the 

ENGINEER-IN-CHARGE in any case an affidavit that so far as the 

CONTRACTOR has knowledge or information the releases and receipts 

include all the labour and material for which a lien could be filled. 

44.4 CONTRACTOR will indemnify and hold the EMPLOYER harmless, 

for a period of two years after the issue of FINAL CERTIFICATE, from 

all liens and other encumbrances against the EMPLOYER on account of 

debts or claims alleged to be due from the CONTRACTOR or his 

SUB-CONTRACTOR to any person including SUB- CONTRACTOR 

and on behalf of EMPLOYER will defend at his own expense, any 

claim or litigation brought against the EMPLOYER or the 

CONTRACTOR in connection therewith. CONTRACTOR shall 

defend or contest at his own expense any fresh claim or litigation by any 

person including his SUB-CONTRACTOR, till its satisfactory 

settlement even after the expiry of two years from the date of issue of 

FINAL CERTIFICATE. 

45.1 In case the CONTRACTOR's performance is delayed due to any act or 

omission on the part of the EMPLOYER or his authorised agents, then 

the CONTRACTOR shall be given due extension of time for the 

completion of the WORK, to the extent such omission on the part of the 

EMPLOYER has caused delay in the CONTRACTOR's performance of 

his WORK. 

45.2 No adjustment in CONTRACT PRICE shall be allowed for reasons of 

such delays and extensions granted except as provided in TENDER 

DOCUMENT, where the EMPLOYER reserves the right to seek 

indulgence of CONTRACTOR to maintain the agreed Time Schedule 

Page 34 of 82

46 Payment if the contract is 

terminated: 

of Completion. 

In such an event the CONTRACTOR shall be obliged for working by 

CONTRACTOR's personnel for additional time beyond stipulated 

working hours as also Sundays and Holidays and achieve the 

completion date/interim targets. 

46.1 If the CONTRACT shall be terminated as per Tender pursuant to Clause 

no. 29 of GCC, the CONTRACTOR shall be paid by the EMPLOYER 

in so far as such amounts or items shall not have already been covered 

by payments of amounts made to the CONTRACTOR for the WORK 

executed and accepted by ENGINEER-IN-CHARGE prior to the date 

of termination at the rates and prices provided for in the CONTRACT 

and in addition to the following: 

a) The amount payable in respect of any preliminary 

items, so far as the Work or service comprised therein has been 

carried out or performed and an appropriate portion as certified 

by ENGINEER-IN- CHARGE of any such items or service 

comprised in which has been partially carried out or 

performed. 

b) Any other expenses which the CONTRACTOR has 

expended for performing the WORK under the CONTRACT 

subject to being duly recommended by 

ENGINEER-IN-CHARGE and approved by EMPLOYER for 

payment, based on documentary evidence of his having 

incurred such expenses. 

46.2 The CONTRACTOR will be further required to transfer the title and 

provide the following in the manner and as directed by the 

EMPLOYER. 

a) Any and all completed works. 

b) Such partially completed WORK including drawings, 

informations and CONTRACT rights as the CONTRACTOR 

has specially performed, produced or acquired for the 

performance of the CONTRACTOR. 

47 No waiver of rights: 47.1 Neither the inspection by the EMPLOYER or any of their officials, 

employees, or agents nor any order by the EMPLOYER for payment of 

money or any payment for or acceptance of the whole or any part of the 

Work by the EMPLOYER nor any extension of time, nor any 

possession taken by EMPLOYER shall operate as a waiver of any 

provision of the CONTRACT, or of any power herein reserved to the 

EMPLOYER, or any right to damages herein provided, nor shall any 

waiver of any breach in the CONTRACT be held to be a waiver of any 

other subsequent breach. 

48 Certificate not to affect right 

of employer and liability of 

48.1 No interim payment certificate(s) issued by the Engineer-in-Charge of 

the EMPLOYER, nor any sum paid on account by the EMPLOYER, 

Page 35 of 82

contractor: 

nor any extension of time for execution of the work granted by 

EMPLOYER shall affect or prejudice the rights of the Employer against 

the CONTRACTOR or relieve the CONTRACTOR of his obligations 

for the due performance of the CONTRACT, or be interpreted as 

approval of the WORK done or of the equipment supplied and no 

certificate shall create liability for the EMPLOYER to pay for 

alterations, amendments, variations or additional works not ordered, in 

writing, by EMPLOYER or discharge the liability of the 

CONTRACTOR for the payment of damages whether due, ascertained, 

or certified or not or any sum against the payment of which he is bound 

to indemnify the EMPLOYER. 

49 Language and measures: 49.1 All documents pertaining to the CONTRACT including Specifications, 

Schedules, Notices, Correspondence, operating and maintenance 

Instructions, DRAWINGS, or any other writing shall be written in 

English language. The Metric System of measurement shall be used in 

the CONTRACT unless otherwise specified. 

50 Transfer of title: 50.1 The title of Ownership of supplies furnished by the CONTRACTOR 

shall not pass on to the EMPLOYER for all Supplies till the same are 

finally accepted by the EMPLOYER after the successful completion of 

PERFORMANCE TEST and GUARANTEE TEST and issue of 

FINAL CERTIFICATE. 

50.2 However, the EMPLOYER shall have the lien on all such works 

performed as soon as any advance or progressive payment is made by 

the EMPLOYER to the CONTRACTOR and the CONTRACTOR shall 

not subject these works for use other than those intended under this 

CONTRACT. 

51 Release of information: 51.1 The CONTRACTOR shall not communicate or use in advertising, 

publicity, sales releases or in any other medium, photographs, or other 

reproduction of the Work under this CONTRACT or description of the 

site dimensions, quantity , quality or other information, concerning the 

Work unless prior written permission has been obtained from the 

EMPLOYER. 

52 

53 

Brand names: 

Completion of contract: 

52.1 The specific reference in the SPECIFICATIONS and documents to any 

material by trade name, make or catalogue number shall be construed as 

establishing standard or quality and performance and not as limited 

competition. However, TENDERER may offer other similar 

equipments provided it meets the specified standard design and 

performance requirements. 

53.1 Unless otherwise terminated under the provisions of any other relevant 

clause, this CONTRACT shall be deemed to have been completed at the 

expiration of the PERIOD OF LIABILITY as provided for under the 

CONTRACT. 

54 Spares: 54.1 The CONTRACTOR shall furnish to the EMPLOYER all spares 

required for COMMISSIONING of the plants, recommendatory and/or 

mandatory spares, which are required essential by the 

manufacturer/supplier. The same shall be delivered at SITE, 3(Three) 

months before COMMISSIONING. 

Page 36 of 82

Also the CONTRACTOR should furnish the manufacturing drawings 

for fast wearing spares. 

54.2 The CONTRACTOR guarantees the EMPLOYER that before the 

manufacturers of the equipments, plants and machineries go out of 

production of spare parts for the equipment furnished and erected by 

him, he shall give at least twelve (12) months' advance notice to the 

EMPLOYER, so that the latter may order his requirement of spares in 

one lot, if he so desires. 

SECTION-V Performance of Work 

55 Execution of work: 55.1 All the Works shall be executed in strict conformity with the provisions 

of the CONTRACT Documents and with such explanatory detailed 

drawings, specification and instructions as may be furnished from time 

to time to the CONTRACTOR by the ENGINEER-IN-CHARGE 

whether mentioned in the CONTRACT or not. The CONTRACTOR 

shall be responsible for ensuring that works throughout are executed in 

the most substantial, proper and workmanlike manner with the quality of 

material and workmanship in strict accordance with the 

SPECIFICATIONS and to the entire satisfaction of the 

ENGINEER-IN-CHARGE. The CONTRACTOR shall provide all 

necessary materials equipment labour etc. for execution and maintenance 

of WORK till completion unless otherwise mentioned in the 

56 Co-ordination and inspection of 

work: 

57 Work in monsoon and 

dewatering: 

CONTRACT. 

56.1 The coordination and inspection of the day-to-day work under the 

CONTRACT shall be the responsibility of the 

ENGINEER-IN-CHARGE. The written instruction regarding any 

particular job will normally be passed by the ENGINEER-IN-CHARGE 

or his authorised representative. A work order book will be maintained 

by the CONTRACTOR for each sector in which the aforesaid written 

instructions will be entered. These will be signed by the 

CONTRACTOR or his authorised representative by way of 

acknowledgement within 12 hours. 

57.1 Unless otherwise specified elsewhere in the tender, the execution of the 

WORK may entail working in the monsoon also. The 

CONTRACTOR must maintain a minimum labour force as may be 

required for the job and plan and execute the construction and erection 

according to the prescribed schedule. No extra rate will be considered 

for such work in monsoon. 

57.2 During monsoon and other period, it shall be the responsibility of the 

CONTRACTOR to keep the construction work site free from water at 

his own cost. 

58 Work on sundays and holidays: 58.1 For carrying out Work on Sundays, and Holidays, the CONTRACTOR 

will approach the ENGINEER-IN-CHARGE or his representative at 

least two days in advance and obtain permission in writing. The 

CONTRACTOR shall observe all labour laws and other statutory rules 

Page 37 of 82

59 General conditions for 

construction and erection work: 

60 Alterations in specifications, 

design and extra works: 

and regulations in force. In case of any violations of such laws, rules and 

regulations, consequence if any, including the cost thereto shall be 

exclusively borne by the CONTRACTOR and the EMPLOYER shall 

have no liability whatsoever on this account. 

59.1 The working time at the site of work is 48 hours per week. Overtime 

work is permitted in cases of need and the EMPLOYER will not 

compensate the same. Shift working at 2 or 3 shifts per day will become 

necessary and the CONTRACTOR should take this aspect into 

consideration for formulating his rates for quotation. No extra claims 

will be entertained by the EMPLOYER no this account. For carrying 

out work beyond working hours the CONTRACTOR will approach the 

ENGINEER-IN-CHARGE or his authorised representative and obtain 

his prior written permission. 

59.2 The CONTRACTOR must arrange for the placement of workers in such 

a way that the delayed completion of the WORK or any part thereof for 

any reason whatsoever will not affect their proper employment. The 

EMPLOYER will not entertain any claim for idle time payment 

whatsoever. 

59.3 The CONTRACTOR shall submit to the EMPLOYER/ENGINEER-IN- 

CHARGE reports at regular intervals regarding the state and progress of 

WORK. The details and proforma of the report will mutually be agreed 

after the award of CONTRACT. The CONTRACTOR shall provide 

display boards showing progress and labour strengths at worksite, as 

directed by the ENGINEER-IN-CHARGE. 

60.1 The WORK covered under this CONTRACT having to be executed by 

the CONTRACTOR on a lumpsum firm price/item rate quoted by him, 

the EMPLOYER will not accept any proposals for changes in VALUE 

OF CONTRACT or extension in time on account of any such changes 

which may arise to the CONTRACTOR's scope of WORK as a result of 

detailed Engineering and thereafter during the execution of WORK. The 

only exception to this will be a case where the EMPLOYER requests in 

writing to the CONTRACTOR to upgrade the SPECIFICATIONS or the 

size of any major pieces of equipments, plant or machinery beyond what 

is normally required to meet the scope of WORK as defined in the 

CONTRACT DOCUMENT. 

In such cases, a change order will be initialled by the CONTRACTOR at 

the appropriate time for the EMPLOYER's prior approval giving the full 

back-up data for their review and for final settlement of any impact on 

price within 30 (thirty) days thereafter. 

60.2 The ENGINEER-IN-CHARGE shall have to make any alterations in, 

omission from, additions to or substitutions for, the Schedule of Rates, 

the original specifications, drawings, designs and instructions that may 

appear to him to be necessary or advisable during the progress of the 

WORK and the CONTRACTOR shall be bound to carry out the such 

altered/ extra/ new items of WORK in accordance with any instructions 

which may be given to him in writing signed by the ENGINEER-IN- 

CHARGE, and such alterations, omissions, additions or substitutions 

shall not invalidate the CONTRACT and any altered, additional or 

Page 38 of 82

substituted work which the CONTRACTOR may be directed to do in 

the manner above specified as part of the WORK shall be carried out by 

the CONTRACTOR on the same conditions in all respects on which he 

agreed to do the main WORK. The time of completion of WORK may 

be extended for the part of the particular job at the discretion of the 

ENGINEER-IN- CHARGE, for only such alterations, additions or 

substitutions of the WORK, as he may consider as just and reasonable. 

The rates for such additional, altered or substituted WORK under this 

clause shall be worked out in accordance with the following provisions:- 

I. For Item Rate Contract 

a) If the rates for the additional, altered or substituted 

WORK are specified in the CONTRACT for the 

WORK, the CONTRACTOR is bound to carry on the 

additional, altered or substituted WORK at the same 

rates as are specified in the CONTRACT. 

b) If the rates for the additional, altered or substituted 

WORK are not specifically provided in the 

CONTRACT for the WORK, the rates will be derived 

from the rates for similar class of WORK as are 

specified in the CONTRACT for the WORK. The 

opinion of the ENGINEER-IN- CHARGE, as to 

whether or not the rates can be reasonably so derived 

from the items in this CONTRACT will be final and 

binding on the CONTRACTOR. 

c) If the rates for the altered, additional or substituted 

WORK cannot be determined in the manner specified 

in sub-clause(s) and (b) above, then the 

CONTRACTOR shall, within 7 days of the date of 

receipt of order to carry out the WORK, inform the 

ENGINEER-IN-CHARGE of the rates which it is his 

intention to charge for such class of WORK, 

supported by analysis of the rate or rates claimed, and 

the ENGINEER-IN-CHARGE shall determine the 

rate or rates on the basis of the prevailing market 

rates, labour cost at schedule of labour rates plus 10% 

to cover contractor's supervision, overheads and profit 

and pay the CONTRACTOR accordingly. The 

opinion of the ENGINEER- IN-CHARGE as to 

current market rates of materials and the quantum of 

labour involved per unit of measurement will be final 

and binding on the CONTRACTOR. 

d) Where the item of work will be executed through 

nominated specialist agency as approved by the 

ENGINEER-IN-CHARGE, then the actual amount 

paid to such nominated agency supported by 

documentary evidence and as certified by 

ENGINEER-IN-CHARGE shall be considered plus 

10% (ten percent) to cover all contingencies, 

overhead, profits to arrive at the rates. 

e) Provisions contained in the Sub-clause (a) & (d) 

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above shall, however, not apply for the following:- 

Where the value of additions of new items together 

with the value of alterations, additions/deletions or 

substitutions does not exceed by or is not less than 

plus/minus (+_)25% of the VALUE OF CONTRACT. 

The item rates in the Schedule of Rates shall hold 

good for all such variations between the above 

mentioned limits, irrespective of any 

increase/decrease of quantities in the individual items 

of Schedule of Rates. 

Where the value of addition of new items together 

with the value of alterations, additions/deletions or 

substitutions reduces more than 25% of the contract 

value but is within the following limits the tenderer 

shall be paid compensation for decrease in the value 

of work, as follows: 

S.No. Range of Variation Percentage compensation for 

decrease in the value of work in 

the respective range. 

a) Beyond (+) 25% upto & No increase and/or decrease 

inclusive of (+) 50% shall be applicable for the Schedule 

of Rates (The rates quoted for this 

increase shall be valid). 

b) Beyond (-) 25% upto & For reduction beyond 25% 

inclusive of (-) 50% contractor shall be compensated by 

an amount equivalent to 10% of 

the reduction in value of the 

contract as awarded. For example 

if the actual contract value is 70% 

of awarded value then 

compensation shall be 10% of 

(75-70) i.e. 0.5% of awarded 

contract value. 

II. For Lumpsum Contracts 

CONTRACTOR shall, within 7 days of the date of receipt of 

order to carry out the WORK, inform the ENGINEER-IN- 

CHARGE of the rates which it is his intention to charge for 

such class of WORK, supported by analysis of the rate or rates 

claimed, and the ENGINEER-IN-CHARGE shall determine 

the rate or rates on the basis of the prevailing market rates, 

labour cost at schedule of labour rates plus 10% to cover 

contractor's supervision, overheads and profit and pay the 

CONTRACTOR accordingly. The opinion of the 

ENGINEER- IN-CHARGE as to current market rates of 

materials and the quantum of labour involved per unit of 

measurement will be final and binding on the CONTRACTOR. 

Page 40 of 82

61 Drawings to be supplied by the 

employer 

62 Drawings to be supplied by the 

contractor: 

61.1 The drawings attached with tender are only for the general guidance to the 

CONTRACTOR to enable him to visualize the type of work contemplated 

and scope of work involved. The CONTRACTOR will be deemed to 

have studied the DRAWINGS and formed an idea about the WORK 

involved. 

61.2 Detailed working drawings on the basis of which actual execution of the 

WORK is to proceed, will be furnished from time to time during the 

progress of the work. The CONTRACTOR shall be deemed to have gone 

through the DRAWINGS supplied to him thoroughly and carefully and in 

conjunction with all other connected drawings and bring to the notice of 

the ENGINEER-IN-CHARGE discrepancies, if any, therein before 

actually carrying out the Work. 

61.3 Copies of all detailed working drawings relating to the WORK shall be 

kept at the CONTRACTOR's office on the site and shall be made available 

to the ENGINEER-IN- CHARGE at any time during the CONTRACT. 

The drawings and other documents issued by the EMPLOYER shall be 

returned to the EMPLOYER on completion of the WORK. 

62.1 The drawings/date which are to be furnished by the CONTRACTOR are 

enumerated in the special conditions of contract, and shall be furnished 

within the specified time. 

62.2 Where approval/review of drawings before manufacture/ 

construction/fabrication has been specified, it shall be CONTRACTOR's 

responsibility to have these drawings prepared as per the directions of 

ENGINEER-IN-CHARGE and got approved before proceeding with 

manufacture/construction/fabrication as the case may be. Any change that 

may have become necessary in these drawings during the execution of the 

work shall have to be carried out by the CONTRACTOR to the satisfaction 

of ENGINEER-IN-CHARGE at no extra cost. All final drawings shall 

bear the certification stamp as indicated below duly signed by both the 

CONTRACTOR and ENGINEER-IN-CHARGE. 

"Certified true for ___________________________________ (Name of 

Work) 

Agreement 

No.___________________________________________________ 

Signed:_________________ _________________ 

(CONTRACTOR) (ENGINEER-IN-CHARGE) 

62.3 The DRAWINGS submitted by the CONTRACTOR shall be reviewed by 

the ENGINEER-IN-CHARGE as far as practicable within 3 (Three) weeks 

and shall be modified by the CONTRACTOR, if any modifications and/or 

corrections are required by the ENGINEER-IN-CHARGE. The 

CONTRACTOR shall incorporate such modifications and/or corrections 

and submit the final drawings for approval. Any delays arising out of 

failure by the CONTRACTOR to rectify the drawing in good time shall 

not alter the Contract Completion Time. 

62.4 As built drawings showing all corrections, adjustments etc. shall be 

furnished by the CONTRACTOR in six copies and one transparent for 

record purposed to the EMPLOYER. 

Page 41 of 82

63 

64 

Setting out works: 

Responsibility for level and 

alignment: 

65 Materials to be supplied by 

contractor: 

63.1 The ENGINEER-IN-CHARGE shall furnish the CONTRACTOR with 

only the four corners of the Works site and a level bench mark and the 

CONTRACTOR shall set out the Works and shall provide an efficient staff 

for the purpose and shall be solely responsible for the accuracy of such 

setting out. 

63.2 The CONTRACTOR shall provide, fix and be responsible for the 

maintenance of all stakes, templates, level marks, profiles and other similar 

things and shall take all necessary precautions to prevent their removal or 

disturbance and shall be responsible for the consequence of such removal 

or disturbance should the same take place and for their efficient and timely 

reinstatement. The CONTRACTOR shall also be responsible for the 

maintenance of all existing survey marks, boundary marks, distance marks 

and center line marks, either existing or supplied and fixed by the 

CONTRACTOR. The work shall be set out to the satisfaction of the 

ENGINEER-IN-CHARGE. The approval there of joining with the 

CONTRACTOR by the ENGINEER- IN-CHARGE in setting out the 

work, shall not relieve the CONTRACTOR of any of his responsibility. 

63.3 Before beginning the Works, the CONTRACTOR shall at his own cost, 

provide all necessary reference and level posts, pegs, bamboos, flags, 

ranging rods, strings and other materials for proper layout of the works in 

accordance with the schemes for bearing marks acceptable to the 

ENGINEER-IN-CHARGE. The center, longitudinal or face lines and 

cross lines shall be marked by means of small masonry pillars. Each pillar 

shall have distinct mark at the centre to enable theodolite to be set over it. 

No work shall be started until all these points are checked and approved by 

the ENGINEER-IN-CHARGE in writing but such approval shall not 

relieve the CONTRACTOR of any of his responsibilities. The 

CONTRACTOR shall also provide all labour, material and other facilities, 

as necessary, for the proper checking of layout and inspection of the points 

during construction. 

63.4 Pillars bearing geodetic marks located at the sites of units of WORKS 

under construction should be protected and fenced by the CONTRACTOR. 

63.5 On completion of WORK, the CONTRACTOR must submit the geodetic 

documents according to which the WORK was carried out. 

64.1 The CONTRACTOR shall be entirely and exclusively responsible for the 

horizontal and vertical alignment, the levels and correctness of every part 

of the WORK and shall rectify effectively any errors or imperfections 

therein, such rectifications shall be carried out by the CONTRACTOR, at 

his own cost, when instructions are issued to that effect by the 

ENGINEER- IN-CHARGE. 

65.1 The CONTRACTOR shall procure and provide within the VALUE OF 

CONTRACT the whole of the materials required for the construction 

including steels, cement and other building materials, tools, tackles, 

construction plant and equipment for the completion and maintenance of 

the WORK except the materials which will be issued by the EMPLOYER 

and shall make his own arrangement for procuring such materials and for 

Page 42 of 82

the transport thereof. The EMPLOYER may give necessary 

recommendation to the respective authority if so desired by the 

CONTRACTOR but assumes no further responsibility of any nature. The 

EMPLOYER will insist on the procurement of materials which bear ISI 

stamp and/or which are supplied by reputed suppliers. 

65.2 The CONTRACTOR shall properly store all materials either issued to him 

or brought by him to the SITE to prevent damages due to rain, wind, direct 

exposure to sun, etc. as also from theft, pilferage, etc. for proper and 

speedy execution of his works. The CONTRACTOR shall maintain 

sufficient stocks of all materials required by him. 

65.3 No material shall be despatched from the CONTRACTOR's stores before 

obtaining the approval in writing of the ENGINEER-IN-CHARGE. 

66 Stores supplied by the employer: 66.1 If the SPECIFICATION of the WORK provides for the use of any material 

of special description to be supplied from the EMPLOYER's stores or it is 

required that the CONTRACTOR shall use certain stores to be provided by 

the ENGINEER-IN-CHARGE, such materials and stores, and price to be 

charged there for as hereinafter mentioned being so far as practicable for 

the convenience of the CONTRACTOR, but not so as in any way to 

control the meaning or effect of the CONTRACT, the CONTRACTOR 

shall be bound to purchase and shall be supplied such materials and stores 

as are from time to time required to be used by him for the purpose of the 

CONTRACT only. The sums due from the CONTRACTOR for the value 

of materials supplied by the EMPLOYER will be recovered from the 

running account bill on the basis of the actual consumption of materials in 

the works covered and for which the running account bill has been 

prepared. After the completion of the WORK, however, the 

CONTRACTOR has to account for the full quantity of materials supplied 

to him as per relevant clauses in this document. 

67 Conditions for issue of 

materials: 

66.2 The value of the stores/materials as may be supplied to the 

CONTRACTOR by the EMPLOYER will be debited to the 

CONTRACTOR's account at the rates shown in the schedule of materials 

and if they are not entered in the schedule, they will be debited at cost 

price, which for the purpose of the CONTRACT shall include the cost of 

carriage and all other expenses whatsoever such as normal storage 

supervision charges which shall have been incurred in obtaining the same 

at the EMPLOYER's stores. All materials so supplied to the 

CONTRACTOR shall remain the absolute property of the EMPLOYER 

and shall not be removed on any account from the SITE of the WORK, and 

shall be at all times open for inspection to the ENGINEER-IN-CHARGE. 

Any such materials remaining unused at the time of the completion or 

termination of the CONTRACT shall be returned to the EMPLOYER's 

stores or at a place as directed by the ENGINEER-IN-CHARGE in 

perfectly good condition at CONTRACTOR's cost. 

67.1 i) Materials specified as to be issued by the EMPLOYER will be 

supplied to the CONTRACTOR by the EMPLOYER form his 

stores. It shall be responsibility of the CONTRACTOR to take 

delivery of the materials and arrange for its loading, transport and 

unloading at the SITE of WORK at his own cost. The materials 

shall be issued between the working hours and as per the rules of 

the EMPLOYER as framed from time to time. 

Page 43 of 82

ii) The CONTRACTOR shall bear all incidental charges for the 

storage and safe custody of materials at site after these have been 

issued to him. 

iii) Materials specified as to be issued by the EMPLOYER shall be 

issued in standard sizes as obtained from the manufacturers. 

iv) The CONTRACTOR shall construct suitable Godowns at the 

SITE of WORK for storing the materials safe against damage by 

rain, dampness, fire, theft etc. He shall also employ necessary 

watch and ward establishment for the purpose. 

v) It shall be duty of the CONTRACTOR to inspect the materials 

supplied to him at the time of taking delivery and satisfy himself 

that they are in good condition. After the materials have been 

delivered by the EMPLOYER, it shall be the responsibility of the 

CONTRACTOR to keep them in good condition and if the 

materials are damaged or lost, at any time, they shall be repaired 

and/or replaced by him at his own cost according to the 

instructions of the ENGINEER-IN-CHARGE. 

vi) The EMPLOYER shall not be liable for delay in supply or 

non-supply of any materials which the EMPLOYER has 

undertaken to supply where such failure or delay is due to natural 

calamities, act of enemies, transport and procurement difficulties 

and any circumstances beyond the control of the EMPLOYER. 

In no case, the CONTRACTOR shall be entitled to claim any 

compensation or loss suffered by him on this account. 

vii) It shall be responsibility of the CONTRACTOR to arrange in 

time all materials required for the WORK other than those to be 

supplied by the EMPLOYER. If, however, in the opinion of the 

ENGINEER-IN-CHARGE the execution of the WORK is likely 

to be delayed due to the CONTRACTOR's inability to make 

arrangements for supply of materials which normally he has to 

arrange for, the ENGINEER-IN-CHARGE shall have the right at 

his own discretion to issue such materials, if available with the 

EMPLOYER or procure the materials from the market or as 

elsewhere and the CONTRACTOR will be bound to take such 

materials at the rates decided by the ENGINEER-IN-CHARGE. 

This, however, does not in any way absolve the CONTRACTOR 

from responsibility of making arrangements for the supply of 

such materials in part or in full, should such a situation occur nor 

shall this constitute a reason for the delay in the execution of the 

WORK. 

viii) None of the materials supplied to the CONTRACTOR will be 

utilised by the CONTRACTOR for manufacturing item which 

can be obtained as supplied from standard manufacturer in 

finished form. 

ix) The CONTRACTOR shall, if desired by the ENGINEER- 

IN-CHARGE, be required to execute an Indemnity Bond in the 

prescribed form for safe custody and accounting of all materials 

issued by the EMPLOYER. 

x) The CONTRACTOR shall furnish to the ENGINEER-IN- 

Page 44 of 82

68 Material procured with 

assistance of employer/return of 

surplus: 

69 Materials obtained from 

dismantling: 

CHARGE sufficiently in advance a statement showing his 

requirement of the quantities of the materials to be supplied by 

the EMPLOYER and the time when the same will be required by 

him for the works, so as to enable the ENGINEER-IN-CHARGE 

to make necessary arrangements for procurement and supply of 

the material. 

xi) Account of the materials issued by the EMPLOYER shall be 

maintained by CONTRACTOR indicating the daily receipt, 

consumption and balance in hand. This account shall be 

maintained in a manner prescribed by the 

ENGINEER-IN-CHARGE along with all connected papers viz. 

requisitions, issues, etc., and shall be always available for 

inspection in the CONTRACTOR's office at SITE. 

xii) The CONTRACTOR should see that only the required quantities 

of materials are got issued. The CONTRACTOR shall not be 

entitled to cartage and incidental charges for returning the surplus 

materials, if any, to the stores wherefrom they were issued or to 

the place as directed by the ENGINEER-IN-CHARGE. 

xiii) Materials/Equipment(s) supplied by EMPLOYER shall not be 

utilised for any purpose(s) than issued for. 

68.1 Notwithstanding anything contained to the contrary in any or all the 

clauses of this CONTRACT where any materials for the execution of the 

CONTRACT are procured with the assistance of the EMPLOYER either 

by issue from EMPLOYER's stock or purchases made under order or 

permits or licences issued by Government, the CONTRACTOR shall hold 

the said materials as trustee for the EMPLOYER and use such materials 

economically and solely for the purpose of the CONTRACT and not 

dispose them off without the permission of the EMPLOYER and return, if 

required by the ENGINEER-IN-CHARGE, shall determine having due 

regard to the condition of the materials. The price allowed to the 

CONTRACTOR, however, shall not exceed the amount charged to him 

excluding the storage charges, if any. The decision of the 

ENGINEER-IN-CHARGE shall be final and conclusive in such matters. 

In the event of breach of the aforesaid condition, the CONTRACTOR 

shall, in terms of the licences or permits and/or criminal breach of trust, be 

liable to compensate the EMPLOYER at double rate or any higher rate, in 

the event of those materials at that time having higher rate or not being 

available in the market, then any other rate to be determined by the 

ENGINEER-IN-CHARGE and his decision shall be final and conclusive. 

69.1 If the CONTRACTOR in the course of execution of the WORK is called 

upon to dismantle any part for reasons other than those stipulated in 

Clauses 74 and 77 hereunder, the materials obtained in the WORK of 

dismantling etc., will be considered as the EMPLOYER's property and will 

be disposed off to the best advantage of the EMPLOYER. 

70 Articles of value found: 70.1 All gold, silver and other minerals of any description and all precious 

stones, coins, treasure relics, antiquities and other similar things which 

Page 45 of 82

71 

72 

73 

Discrepancies between 

instructions: 

Action where no specification is 

issued: 

Inspection of works: 

shall be found in, under or upon the SITE, shall be the property of the 

EMPLOYER and the CONTRACTOR shall duly preserve the same to the 

satisfaction of the ENGINEER-IN-CHARGE and shall from time to time 

deliver the same to such person or persons indicated by the EMPLOYER. 

71.1 Should any discrepancy occur between the various instructions furnished to 

the CONTRACTOR, his agent or staff or any doubt arises as to the 

meaning of any such instructions or should there be any misunderstanding 

between the CONTRACTOR's staff and the ENGINEER-IN- CHARGE's 

staff, the CONTRACTOR shall refer the matter immediately in writing to 

the ENGINEER-IN-CHARGE whose decision thereon shall be final and 

conclusive and no claim for losses alleged to have been caused by such 

discrepancies between instructions, doubts, or misunderstanding shall in 

any event be admissible. 

72.1 In case of any class of WORK for which there is no SPECIFICATION 

supplied by the EMPLOYER as mentioned in the Tender Documents such 

WORK shall be carried out in accordance with Indian Standard 

Specifications and if the Indian Standard Specifications do not cover the 

same, the WORK should be carried out as per standard Engineering 

Practice subject to the approval of the ENGINEER-IN-CHARGE. 

73.1 The ENGINEER-IN-CHARGE will have full power and authority to 

inspect the WORK at any time wherever in progress either on the SITE or 

at the CONTRACTOR's premises/workshops wherever situated, premises/ 

workshops of any person, firm or corporation where WORK in connection 

with the CONTRACT may be in hand or where materials are being or are 

to be supplied, and the CONTRACTOR shall afford or procure for the 

ENGINEER-IN- CHARGE every facility and assistance to carry out such 

inspection. The CONTRACTOR shall, at all time during the usual 

working hours and at all other time at which reasonable notice of the 

intention of the ENGINEER-IN- CHARGE or his representative to visit 

the WORK shall have been given to the CONTRACTOR, either himself 

be present or receive orders and instructions, or have a responsible agent 

duly accredited in writing, present for the purpose. Orders given to the 

CONTRACTOR's agent shall be considered to have the same force as if 

they had been given to the CONTRACTOR himself. The 

CONTRACTOR shall give not less than seven days notice in writing to the 

ENGINEER-IN-CHARGE before covering up or otherwise placing 

beyond reach of inspection and measurement of any work in order that the 

same may be inspected and measured. In the event of breach of above the 

same shall be uncovered at CONTRACTOR's expense for carrying out 

such measurement or inspection. 

73.2 No material shall be despatched from the CONTRACTOR's stores before 

obtaining the approval in writing of the Engineer-in-Charge. 

The CONTRACTOR is to provide at all time during the progress of the 

WORK and the maintenance period, proper means of access with ladders, 

gangways etc. and the necessary attendance to move and adopt as directed 

for inspection or measurements of the WORK by the ENGINEER- 

IN-CHARGE. 

73.3 The CONTRACTOR shall make available to the ENGINEER-IN- 

CHARGE free of cost all necessary instruments and assistance in checking 

Page 46 of 82

or setting out of WORK and in the checking of any WORK made by the 

CONTRACTOR for the purpose of setting out and taking measurements of 

WORK. 

74 Tests for quality of work: 74.1 All workmanship shall be of the respective kinds described in the 

CONTRACT DOCUMENTS and in accordance with the instructions of 

the ENGINEER-IN-CHARGE and shall be subjected from time to time to 

such test at CONTRACTOR's cost as the ENGINEER-IN-CHARGE may 

direct at the place of manufacture or fabrication or on the site or at all or 

any such places. The CONTRACTOR shall provide assistance, 

instruments, labour and materials as are normally required for examining, 

measuring and testing any workmanship as may be selected and required 

by the ENGINEER-IN-CHARGE. 

74.2 All the tests that will be necessary in connection with the execution of the 

WORK as decided by the ENGINEER- IN-CHARGE shall be carried out 

at the field testing laboratory of the EMPLOYER by paying the charges as 

decided by the EMPLOYER from time to time. In case of non- availability 

of testing facility with the EMPLOYER, the required test shall be carried 

out at the cost of CONTRACTOR at Government or any other testing 

laboratory as directed by ENGINEER-IN-CHARGE. 

74.3 If any tests are required to be carried out in conjunction with the WORK or 

materials or workmanship not supplied by the CONTRACTOR, such tests 

shall be carried out by the CONTRACTOR as per instructions of 

ENGINEER-IN-CHARGE and cost of such tests shall be reimbursed by 

the EMPLOYER. 

75 Samples for approval: 75.1 The CONTRACTOR shall furnish to the ENGINEER-IN-CHARGE for 

approval, when requested or if required by the specifications, adequate 

samples of all materials and finished to be used in the WORK. Such 

samples shall be submitted before the WORK is commenced and in ample 

time to permit tests and examinations thereof. All materials furnished and 

finishes applied in actual WORK shall be fully equal to the approved 

samples. 

76 Action and compensation in case 

of bad work: 

76.1 If it shall appear to the ENGINEER-IN-CHARGE that any work has been 

executed with unsound, imperfect or unskilled workmanship, or with 

materials of any inferior description, or that any materials or articles 

provided by the CONTRACTOR for the execution of the WORK are 

unsound, or of a quality inferior to that contracted for, or otherwise not in 

accordance with the CONTRACT, the CONTRACTOR shall on demand 

in writing from the ENGINEER-IN-CHARGE or his authorised 

representative specifying the WORK, materials or articles complained of 

notwithstanding that the same may have been inadvertently passed, 

certified and paid for, forthwith rectify or remove and reconstruct the 

WORK so specified and provide other proper and suitable materials or 

articles at his own cost and in the event of failure to do so within the 

period specified by the ENGINEER-IN-CHARGE in his demand 

aforesaid, the CONTRACTOR shall be liable to pay compensation at the 

rate of 1 % (One percent) of the estimated cost of the whole WORK, for 

every week limited to a maximum of 10% (ten percent) of the value of the 

whole WORK, while his failure to do so shall continue and in the case of 

any such failure the ENGINEER-IN-CHARGE may on expiry of notice 

period rectify or remove and re-execute the WORK or remove and 

replaced with others, the materials or articles complained of to as the case 

Page 47 of 82

77 

78 

Suspension of works: 

Employer may do part of work: 

may be at the risk and expense in all respects of the CONTRACTOR. The 

decision of the Engineering-in-charge as to any question arising under this 

clause shall be final and conclusive. 

77.1 i) Subject to the provisions of sub-para (ii) of this clause, the 

CONTRACTOR shall, if ordered in writing by the 

ENGINEER-IN-CHARGE, or his representative, temporarily 

suspend the WORKS or any part thereof for such written 

order, proceed with the WORK therein ordered to be 

suspended until, he shall have received a written order to 

proceed therewith. The CONTRACTOR shall not be entitled to 

claim compensation for any loss or damage sustained by him by reason 

of temporary suspension of the WORKS aforesaid. An extension of 

time for completion, corresponding with the delay caused by any 

such suspension of the WORKS as aforesaid will be granted to 

the CONTRACTOR should he apply for the same provided 

that the suspension was not consequent to any default or 

failure on the part of the CONTRACTOR. 

ii) In case of suspensions of entire WORK, ordered in writing 

by ENGINEER-IN-CHARGE, for a period of more than 

two months, the CONTRACTOR shall have the option to 

terminate the CONTRACT. 

78.1 Upon failure of the CONTRACTOR to comply with any instructions given 

in accordance with the provisions of this CONTRACT the EMPLOYER 

has the alternative right, instead of assuming charge of entire WORK, to 

place additional labour force, tools, equipments and materials on such parts 

of the WORK, as the EMPLOYER may designate or also engage another 

CONTRACTOR to carry out the WORK. In such cases, the EMPLOYER 

shall deduct from the amount which otherwise might become due to the 

CONTRACTOR, the cost of such work and material with ten percent 

(10%) added to cover all departmental charges and should the total amount 

thereof exceed the amount due to the CONTRACTOR, the 

CONTRACTOR shall pay the difference to the EMPLOYER. 

79 Possession prior to completion: 79.1 The ENGINEER-IN-CHARGE shall have the right to take possession of or 

use any completed or partially completed WORK or part of the WORK. 

Such possession or use shall not be deemed to be an acceptance of any 

work completed in accordance with the CONTRACT agreement. 

If such prior possession or use by the ENGINEER-IN- CHARGE 

delays the progress of WORK, equitable adjustment in the time of 

completion will be made and the CONTRACT agreement shall be deemed 

to be modified accordingly. 

80 

(Defects liability period) twelve 

months period of liability from 

the date of issue of completion 

certificate: 

80.1 The CONTRACTOR shall guarantee the installation/WORK for a period 

of 12 months from the date of completion of WORK as certified by the 

ENGINEER-IN-CHARGE which is indicated in the Completion 

Certificate. Any damage or defect that may arise or lie undiscovered at the 

time of issue of Completion Certificate, connected in any way with the 

equipment or materials supplied by him or in the workmanship, shall be 

rectified or replaced by the CONTRACTOR at his own expense as deemed 

necessary by the ENGINEER-IN-CHARGE or in default, the 

ENGINEER- IN-CHARGE may carry out such works by other work and 

deduct actual cost incurred towards labour, supervision and materials 

Page 48 of 82

consumables or otherwise plus 100% towards overheads (of which the 

certificate of ENGINEER-IN-CHARGE shall be final) from any sums that 

may then be or at any time thereafter, become due to the CONTRACTOR 

or from his Contract Performance Security, or the proceeds of sale thereof 

or a sufficient part on thereof. 

80.2 If the CONTRACTOR feels that any variation in WORK or in quality of 

materials or proportions would be beneficial or necessary to fulfil the 

guarantees called for, he shall bring this to the notice of the ENGINEER- 

IN-CHARGE in writing. 

If during the period of liability any portion of the WORK/equipment, is 

found defective and is rectified/ replaced, the period of liability for such 

equipment/ portion of WORK shall be operative from the date such 

rectification/ replacement are carried out and Contract Performance 

Guarantee shall be furnished separately for the extended period of liability 

for that portion of WORK/ equipment only. Notwithstanding the above 

provisions the supplier's, guarantees/warantees for the replaced equipment 

shall also be passed on to the EMPLOYER. 

80.3 LIMITATION OF LIABILITY 

Notwithstanding anything contrary contained herein, the aggregate total 

liability of CONTRACTOR under the Agreement or otherwise shall be 

limited to 100% of Agreement / Contract Value. However, neither party 

shall be liable to the other party for any indirect and consequential 

damages, loss of profits or loss of production. 

81 Care of works: 81.0 From the commencement to completion of the WORK, the 

CONTRACTOR shall take full responsibility for the care for all works 

including all temporary works and in case any damages, loss or injury shall 

happen to the WORK or to any part thereof or to any temporary works 

from any cause whatsoever, shall at his own cost repair and make good the 

same so that at completion the WORK shall be in good order and in 

conformity in every respects with the requirement of the CONTRACT and 

the ENGINEER-IN- CHARGE's instructions. 

81.1 DEFECTS PRIOR TO TAKING OVER: 

If at any time, before the WORK is taken over, the 

ENGINEER-IN-CHARGE shall: 

a) Decide that any works done or materials used by the 

CONTRACTOR or by any SUB-CONTRACTOR is defective or 

not in accordance with the CONTRACT, or that the works or any 

portion thereof are defective, or do not fulfill the requirements of 

CONTRACT (all such matters being hereinafter, called `Defects' 

in this clause), and 

b) As soon as reasonably practicable, gives to the 

CONTRACTOR notice in writing of the said decision, specifying 

particulars of the defects alleged to exist or to have occurred, then 

the CONTRACTOR shall at his own expenses and with all speed 

make good the defects so specified. 

In case CONTRACTOR shall fail to do so, the EMPLOYER may take, at 

Page 49 of 82

82 Guarantee/transfer of 

guarantee: 

the cost of the CONTRACTOR, such steps as may in all circumstances, be 

reasonable to make good such defects. The expenditure so incurred by the 

EMPLOYER will be recovered from the amount due to the 

CONTRACTOR. The decision of the ENGINEER-IN-CHARGE with 

regard to the amount to be recovered from the CONTRACTOR will be 

final and binding on the CONTRACTOR. As soon as the WORK has 

been completed in accordance with the CONTRACT (except in minor 

respects that do not affect their use for the purpose for which they are 

intended and except for maintenance there of provided in clause 80.1 of 

General Conditions of Contract) and have passed the tests on completion, 

the ENGINEER-IN-CHARGE shall issue a certificate (hereinafter called 

Completion Certificate) in which he shall certify the date on which the 

WORK have been so completed and have passed the said tests and the 

EMPLOYER shall be deemed to have taken over the WORK on the date 

so certified. If the WORK has been divided into various groups in the 

CONTRACT, the EMPLOYER shall be entitled to take over any group or 

groups before the other or others and there upon the 

ENGINEER-IN-CHARGE shall issue a Completion Certificate which will, 

however, be for such group or groups so taken over only. In such an event 

if the group /section/ part so taken over is related, to the integrated system 

of the work, not withstanding date of grant of Completion Certificate for 

group/ section/ part. The period of liability in respect of such group/ 

section/ part shall extend 12 (twelve) months from the date of completion 

of WORK. 

81.2 DEFECTS AFTER TAKING OVER: 

In order that the CONTRACTOR could obtain a COMPLETION 

CERTIFICATE he shall make good, with all possible speed, any defect 

arising from the defective materials supplied by the CONTRACTOR or 

workmanship or any act or omission of the CONTRACT or that may have 

been noticed or developed, after the works or groups of the works has been 

taken over, the period allowed for carrying out such WORK will be 

normally one month. If any defect be not remedied within a reasonable 

time, the EMPLOYER may proceed to do the WORK at 

CONTRACTOR's risk and expense and deduct from the final bill such 

amount as may be decided by the EMPLOYER. 

If by reason of any default on the part of the CONTRACTOR a 

COMPLETION CERTIFICATE has not been issued in respect of any 

portion of the WORK within one month after the date fixed by the 

CONTRACT for the completion of the WORK, the EMPLOYER shall be 

at liberty to use the WORK or any portion thereof in respect of which a 

completion certificate has not been issued, provided that the WORK or the 

portion thereof so used as aforesaid shall be afforded reasonable 

opportunity for completing these works for the issue of Completion 

Certificate. 

82.1 For works like water-proofing, acid and alkali resisting materials, 

pre-construction soil treatment against termite or any other specialized 

works etc. the CONTRACTOR shall invariably engage 

SUB-CONTRACTORS who are specialists in the field and firms of repute 

and such a SUB-CONTRACTOR shall furnish guarantees for their 

workmanship to the EMPLOYER, through the CONTRACTOR. In case 

such a SUB-CONTRACTOR/ firm is not prepared to furnish a guarantee 

Page 50 of 82

83 Training of employer's 

personnel: 

84 Replacement of defective parts 

and materials: 

to the EMPLOYER, the CONTRACTOR shall give that guarantee to the 

EMPLOYER directly. 

83.1 The CONTRACTOR undertakes to provide training to Engineering 

personnel selected and sent by the EMPLOYER at the works of the 

CONTRACTOR without any cost to the EMPLOYER. The period and the 

nature of training for the individual personnel shall be agreed upon 

mutually between the CONTRACTOR and the EMPLOYER. These 

engineering personnel shall be given special training at the shops, where 

the equipment will be manufactured and/ or in their collaborator's works 

and where possible, in any other plant where equipment manufactured by 

the CONTRACTOR or his collaborators is under installation or test to 

enable those personnel to become familiar with the equipment being 

furnished by the CONTRACTOR. EMPLOYER shall bear only the to 

and fro fare of the said engineering personnel. 

84.1 If during the progress of the WORK, EMPLOYER shall decide and inform 

in writing to the CONTRACTOR, that the CONTRACTOR has 

manufactured any plant or part of the plant unsound or imperfect or has 

furnished plant inferior to the quality specified, the CONTRACTOR on 

receiving details of such defects or deficiencies shall at his own expenses 

within 7 (seven) days of his receiving the notice, or otherwise within such 

time as may be reasonably necessary for making it good, proceed to alter, 

re-construct or remove such work and furnish fresh equipments upto the 

standards of the specifications. In case the CONTRACTOR fails to do so, 

EMPLOYER may on giving the CONTRACTOR 7 (seven) day's notice in 

writing of his intentions to do so, proceed to remove the portion of the 

WORK so complained of and at the cost of CONTRACTOR's, perform all 

such works or furnish all such equipments provided that nothing in the 

clause shall be deemed to deprive the EMPLOYER of or affect any rights 

under the CONTRACT, the EMPLOYER may otherwise have in respect 

of such defects and deficiencies. 

84.2 The CONTRACTOR's full and extreme liability under this clause shall be 

satisfied by the payments to the EMPLOYER of the extra cost, of such 

replacements procured including erection/installation as provided for in the 

CONTRACT; such extra cost being the ascertained difference between the 

price paid by the EMPLOYER for such replacements and the 

CONTRACT price portion for such defective plants and repayments of any 

sum paid by the EMPLOYER to the CONTRACTOR in respect of such 

defective plant. Should the EMPLOYER not so replace the defective plant 

the CONTRACTOR's extreme liability under this clause shall be limited to 

the repayment of all such sums paid by the EMPLOYER under the 

CONTRACT for such defective plant. 

85 Indemnity 85.1 If any action is brought before a Court, Tribunal or any other Authority 

against the Employer or an officer or agent of the EMPLOYER, for the 

failure, omission or neglect on the part of the CONTRACTOR to perform 

any acts, matters, covenants or things under the CONTRACT, or damage 

or injury caused by the alleged omission or negligence on the part of the 

CONTRACTOR, his agents, representatives or his SUB- 

CONTRACTOR's, or in connection with any claim based on lawful 

demands of SUB-CONTRACTOR's workmen suppliers or employees, the 

CONTRACTOR, shall in such cases indemnify and keep the EMPLOYER 

and/or their representatives harmless from all losses, damages, expenses or 

decrees arising out of such action. 

Page 51 of 82

86 Construction aids, equipments, 

tools & tackles: 

86.1 CONTRACTOR shall be solely responsible for making available for 

executing the WORK, all requisite CONSTRUCTION EQUIPMENTS, 

Special Aids, Barges, Cranes and the like, all Tools, Tackles and Testing 

Equipment and Appliances, including imports of such equipment etc. as 

required. In case of import of the same the rates applicable for levying of 

Custom Duty on such Equipment, Tools, & Tackles and the duty drawback 

applicable thereon shall be ascertained by the CONTRACTOR from the 

concerned authorities of Government of India. It shall be clearly 

understood that EMPLOYER shall not in any way be responsible for 

arranging to obtain Custom Clearance and/or payment of any duties and/or 

duty draw backs etc. for such equipments so imported by the 

CONTRACTOR and the CONTRACTOR shall be fully responsible for all 

taxes, duties and documentation with regard to the same. Tenderer in his 

own interest may contact, for any clarifications in the matter, concerned 

agencies/Dept./Ministries of Govt. of India. All clarifications so obtained 

and interpretations thereof shall be solely the responsibility of the 

CONTRACTOR. 

SECTION-VI Certificates and Payments 

87 Schedule of rates and payments: 87.1 i) CONTRACTOR'S REMUNERATION: 

The price to be paid by the EMPLOYER to CONTRACTOR for 

the whole of the WORK to be done and for the performance of all 

the obligations undertaken by the CONTRACTOR under the 

CONTRACT DOCUMENTS shall be ascertained by the 

application of the respective Schedule of Rates (the inclusive 

nature of which is more particularly defined by way of 

application but not of limitation, with the succeeding sub-clause 

of this clause) and payment to be made accordingly for the 

WORK actually executed and approved by the ENGINEER- 

IN-CHARGE. The sum so ascertained shall (excepting only as 

and to the extent expressly provided herein) constitute the sole 

and inclusive remuneration of the CONTRACTOR under the 

CONTRACT and no further or other payment whatsoever shall 

be or become due or payable to the CONTRACTOR under the 

CONTRACT. 

ii) SCHEDULE OF RATES TO BE INCLUSIVE: 

The prices/rates quoted by the CONTRACTOR shall remain firm 

till the issue of FINAL CERTIFICATE and shall not be subject to 

escalation. Schedule of Rates shall be deemed to include and 

cover all costs, expenses and liabilities of every description and 

all risks of every kind to be taken in executing, completing and 

handing over the WORK to the EMPLOYER by the 

CONTRACTOR. The CONTRACTOR shall be deemed to have 

known the nature, scope, magnitude and the extent of the WORK 

and materials required though the CONTRACT DOCUMENT 

may not fully and precisely furnish them. Tenderer's shall make 

such provision in the Schedule of Rates as he may consider 

necessary to cover the cost of such items of WORK and materials 

as may be reasonable and necessary to complete the WORK. The 

Page 52 of 82

opinion of the ENGINEER-IN-CHARGE as to the items of 

WORK which are necessary and reasonable for COMPLETION 

OF WORK shall be final and binding on the CONTRACTOR, 

although the same may not be shown on or described specifically 

in CONTRACT DOCUMENTS. 

Generality of this present provision shall not be deemed to cut 

down or limit in any way because in certain cases it may and in 

other cases it may not be expressly stated that the 

CONTRACTOR shall do or perform a work or supply articles or 

perform services at his own cost or without addition of payment 

or without extra charge or words to the same effect or that it may 

be stated or not stated that the same are included in and covered 

by the Schedule of Rates. 

iii) SCHEDULE OF RATES TO COVER 

CONSTRUCTION EQUIPMENTS, MATERIALS, LABOUR 

ETC.: 

Without in any way limiting the provisions of the preceding 

sub-clause the Schedule of Rates shall be deemed to include and 

cover the cost of all construction equipment, temporary WORK 

(except as provided for herein), pumps, materials, labour, 

insurance, fuel, consumables, stores and appliances to be supplied 

by the CONTRACTOR and all other matters in connection with 

each item in the Schedule of Rates and the execution of the 

WORK or any portion thereof finished, complete in every respect 

and maintained as shown or described in the CONTRACT 

DOCUMENTS or as may be ordered in writing during the 

continuance of the CONTRACT. 

iv) SCHEDULE OF RATES TO COVER ROYALTIES, RENTS 

AND CLAIMS: 

The Schedule of Rates (i.e., VALUE OF CONTRACT) shall be 

deemed to include and cover the cost of all royalties and fees for 

the articles and processes, protected by letters, patent or otherwise 

incorporated in or used in connection with the WORK, also all 

royalties, rents and other payments in connection with obtaining 

materials of whatsoever kind for the WORK and shall include an 

indemnity to the EMPLOYER which the CONTRACTOR 

hereby gives against all actions, proceedings, claims, damages, 

costs and expenses arising from the incorporation in or use on the 

WORK of any such articles, processes or materials, octroi or 

other municipal or local Board Charges, if levied on materials, 

equipment or machineries to be brought to site for use on WORK 

shall be borne by the CONTRACTOR. 

v) SCHEDULE OF RATES TO COVER TAXES AND DUTIES: 

No exemption or reduction of Customs Duties, Excise Duties, 

Sales Tax, Sales Tax on works Contract quay or any port dues, 

transport charges, stamp duties or Central or State Government or 

local Body or Municipal Taxes or duties, taxes or charges (from 

or of any other body), whatsoever, will be granted or obtained, all 

of which expenses shall be deemed to be included in and covered 

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88 Procedure for measurement and 

billing of work in progress: 

by the Schedule or Rates. The CONTRACTOR shall also obtain 

and pay for all permits or other privileges necessary to complete 

the WORK. 

vi) SCHEDULE OF RATES TO COVER RISKS OF DELAY: 

The Schedule of Rates shall be deemed to include and cover the 

risk of all possibilities of delay and interference with the 

CONTRACTOR's conduct of WORK which occur from any 

causes including orders of the EMPLOYER in the exercise of his 

power and on account of extension of time granted due to various 

reasons and for all other possible or probable causes of delay. 

vii) SCHEDULE OF RATES CANNOT BE ALTERED: 

88.1 BILLING PROCEDURE: 

For WORK under unit rate basis, no alteration will be allowed in 

the Schedule of Rates by reason of works or any part of them 

being modified, altered, extended, diminished or committed. The 

Schedule of Rates are fully inclusive of rates which have been 

fixed by the CONTRACTOR and agreed to by the EMPLOYER 

and cannot be altered. 

For lumpsum CONTRACTS, the payment will be made 

according to the WORK actually carried out, for which purpose 

an item wise, or work wise Schedule of Rates shall be furnished, 

suitable for evaluating the value of WORK done and preparing 

running account bill. 

Payment for any additional work which is not covered in the 

Schedule of Rates, shall only be released on issuance of change 

order. 

Following procedures shall be adopted for billing of works executed by the 

CONTRACTOR. 

88.1.1 All measurements shall be recorded in sextuplicate on standard measurement 

sheets supplied by EMPLOYER and submitted to 

EMPLOYER/CONSULTANT for scrutiny and passing. 

88.1.2 EMPLOYER/CONSULTANT shall scrutinise and check the measurements 

recorded on the sheets and shall certify correctness of the same on the 

measurement sheets. 

88.1.3 ENGINEER-IN-CHARGE shall pass the bills after carrying out the 

comprehensive checks in accordance with the terms and conditions of the 

CONTRACTS, within 7 days of submission of the bills, complete in all 

respects and send the same to the Employer to effect payment to the 

CONTRACTOR. 

88.1.4 GAIL shall make all endeavour to make payments of undisputed amount of 

the bills submitted based on the joint measurements within 15 (Fifteen) 

days from the date of certification by the Engineer-in-Charge. 

88.1.5 Measurements shall be recorded as per the methods of measurement spelt out 

Page 54 of 82

in EMPLOYER/CONSULTANT SPECIFICATIONS / CONTRACT 

DOCUMENT. EMPLOYER/CONSULTANT shall be fully responsible 

for checking the measurements quantitatively and qualitatively as recorded 

in the Measurement Books/ Bills. 

88.1.6 While preparing the final bills overall measurements will not be taken again. 

Only volume of work executed since the last measured bill alongwith 

summary of final measurements will be considered for the final bill. 

However, a detailed check shall be made as to missing measurements and 

in case there are any missing items or measurements the same shall be 

recorded. 

88.1.7 COMPUTERISED BILLING SYSTEM : GAIL (India) Limited has 

introduced Computerised Billing System whereby when the Bills are 

submitted in GAIL by a Contractor, a receipt number is generated. The 

Contractor can know the status of the Bill through GAIL’s website. 

88.2 SECURED ADVANCE ON MATERIAL: 

Unless otherwise provided elsewhere in the tender, no `Secured Advance' 

on security of materials brought to site for execution of contracted items(s) 

shall be paid to the Contractor whatsoever. 

88.3 DISPUTE IN MODE OF MEASUREMENT: 

In case of any dispute as to the mode of measurement not covered by the 

CONTRACT to be adopted for any item of WORK, mode of measurement 

as per latest Indian Standard Specifications shall be followed. 

88.4 ROUNDING OF AMOUNTS: 

In calculating the amount of each item due to the CONTRACTOR in every 

certificate prepared for payment, sum of less than 50 paise shall be omitted 

and the total amount on each certificate shall be rounded off to the nearest 

rupees, i.e., sum of less than 50 paise shall be omitted and sums of 50 paise 

and more upto one rupee shall be reckoned as one rupee. 

89 Lumpsum in tender: 89.1 The payment against any Lumpsum item shall be made only on completion 

of that item as per the provision of the CONTRACT after certification by 

90 Running account payments to 

be regarded as advance: 


90.1 All running account payments shall be regarded as payment by way of 

advance against the final payment only and not as payments for WORK 

actually done and completed and shall not preclude the requiring of bad, 

unsound and imperfect or unskilled work to be removed and taken away 

and reconstructed or re-erected or be considered as an admission of the due 

performance of the CONTRACT, or any part thereof, in this respect, or of 

the accurring of any claim by the CONTRACTOR, nor shall it conclude, 

determine or affect in any way the powers of the EMPLOYER under these 

conditions or any of them as to the final settlement and adjustment of the 

accounts or otherwise, or in any other way vary or affect the CONTRACT. 

The final bill shall be submitted by the CONTRACTOR within one month 

of the date of physical completion of the WORK, otherwise, the 

ENGINEER-IN-CHARGE's certificate of the measurement and of total 

amount payable for the WORK accordingly shall be final and binding on 

all parties 

Page 55 of 82

91 

Notice of claims for additional 

payments: 

91.1 Should the CONTRACTOR consider that he is entitled to any extra 

payment for any extra/additional WORKS or MATERIAL change in 

original SPECIFICATIONS carried out by him in respect of WORK he 

shall forthwith give notice in writing to the ENGINEER-IN-CHARGE 

that he claims extra payment. Such notice shall be given to the 

ENGINEER-IN-CHARGE upon which CONTRACTOR bases such 

claims and such notice shall contain full particulars of the nature of such 

claim with full details of amount claimed. Irrespective of any provision in 

the CONTRACT to the contrary, the CONTRACTOR must intimate his 

intention to lodge claim on the EMPLOYER within 10 (ten) days of the 

commencement of happening of the event and quantify the claim within 30 

(thirty) days, failing which the CONTRACTOR will lose his right to claim 

any compensation/reimbursement/damages etc. or refer the matter to 

arbitration. Failure on the part of CONTRACTOR to put forward any 

claim without the necessary particulars as above within the time above 

specified shall be an absolute waiver thereof. No omission by 

EMPLOYER to reject any such claim and no delay in dealing therewith 

shall be waiver by EMPLOYER of any of this rights in respect thereof. 

91.2 ENGINEER-IN-CHARGE shall review such claims within a reasonably 

period of time and cause to discharge these in a manner considered 

appropriate after due deliberations thereon. However, CONTRACTOR 

shall be obliged to carry on with the WORK during the period in which his 

claims are under consideration by the EMPLOYER, irrespective of the 

outcome of such claims, where additional payments for WORKS 

considered extra are justifiable in accordance with the CONTRACT 

provisions, EMPLOYER shall arrange to release the same in the same 

manner as for normal WORK payments. Such of the extra works so 

admitted by EMPLOYER shall be governed by all the terms, conditions, 

stipulations and specifications as are applicable for the CONTRACT. The 

rates for extra works shall generally be the unit rates provided for in the 

CONTRACT. In the event unit rates for extra works so executed are not 

available as per CONTRACT, payments may either be released on day 

work basis for which daily/hourly rates for workmen and hourly rates for 

equipment rental shall apply, or on the unit rate for WORK executed shall 

be derived by interpolation/ extrapolation of unit rates already existing in 

the CONTRACT. In all the matters pertaining to applicability of rate and 

admittance of otherwise of an extra work claim of CONTRACTOR the 

decision of ENGINEER-IN-CHARGE shall be final and binding. 

92 Payment of contractor's bill: 92.1 No payment shall be made for works estimated to cost less than 

Rs.10,000/- till the whole of the work shall have been completed and a 

certificate of completion given. But in case of works estimated to cost 

more than Rs.10,000/-, that CONTRACTOR on submitting the bill thereof 

be entitled to receive a monthly payment proportionate to the part thereof 

approved and passed by the ENGINEER-IN-CHARGE, whose certificate 

of such approval and passing of the sum so payable shall be final and 

conclusive against the CONTRACTOR. This payment will be made after 

making necessary corrections/deductions as stipulated elsewhere in the 

CONTRACT DOCUMENT for materials, Contract Performance Security, 

taxes etc. 

92.2 Payment due to the CONTRACTOR shall be made by the EMPLOYER 

Page 56 of 82

y Account Payee cheque forwarding the same to registered office or the 

notified office of the CONTRACTOR. In no case will EMPLOYER be 

responsible if the cheque is mislaid or misappropriated by unauthorised 

person/persons. In all cases, the CONTRACTOR shall present his bill 

duly pre-receipted on proper revenue stamp payment shall be made in 

Indian Currency. 

92.3 In general payment of final bill shall be made to CONTRACTOR within 

60 days of the submission of bill on joint measurements, after completion 

of all the obligations under the CONTRACT. 

93 Receipt for payment: 93.1 Receipt for payment made on account of work when executed by a firm, 

must be signed by a person holding due power of attorney in this respect on 

behalf of the CONTRACTOR, except when the CONTRACTOR's are 

described in their tender as a limited company in which case the receipts 

must be signed in the name of the company by one of its principal officers 

or by some other person having authority to give effectual receipt for the 

company. 

94 Completion certificate: 94.1 APPLICATION FOR COMPLETION CERTIFICATE: 

When the CONTRACTOR fulfils his obligation under Clause 81.1 he shall 

be eligible to apply for COMPLETION CERTIFICATE. 

The ENGINEER-IN-CHARGE shall normally issue to the 

CONTRACTOR the COMPLETION CERTIFICATE within one month 

after receiving any application therefore from the CONTRACTOR after 

verifying from the completion documents and satisfying himself that the 

WORK has been completed in accordance with and as set out in the 

construction and erection drawings, and the CONTRACT DOCUMENTS. 

The CONTRACTOR, after obtaining the COMPLETION CERTIFICATE, 

is eligible to present the final bill for the WORK executed by him under the 

terms of CONTRACT. 

94.2 COMPLETION CERTIFICATE: 

Within one month of the completion of the WORK in all respects, the 

CONTRACTOR shall be furnished with a certificate by the 

ENGINEER-IN-CHARGE of such completion, but no certificate shall be 

given nor shall the WORK be deemed to have been executed until all 

scaffolding, surplus materials and rubbish is cleared off the SITE 

completely nor until the WORK shall have been measured by the 

ENGINEER-IN-CHARGE whose measurement shall be binding and 

conclusive. The WORKS will not be considered as complete and taken 

over by the EMPLOYER, until all the temporary works, labour and staff 

colonies are cleared to the satisfaction of the ENGINEER-IN-CHARGE. 

If the CONTRACTOR fails to comply with the requirements of this clause 

on or before the date fixed for the completion of the WORK, the 

ENGINEER-IN-CHARGE may at the expense of the CONTRACTOR 

remove such scaffolding, surplus materials and rubbish and dispose off the 

same as he thinks fit and clean off such dirt as aforesaid, and the 

CONTRACTOR shall forthwith pay the amount of all expenses so 

incurred and shall have no claim in respect of any such scaffolding or 

Page 57 of 82

95 Final decision and final 

certificate: 

96 

97 

Certificate and payments on 

evidence of completion: 

Deductions from the contract 

price: 

surplus materials as aforesaid except for any sum actually realised by the 

sale thereof. 

94.3 COMPLETION CERTIFICATE DOCUMENTS: 

For the purpose of Clause 94.0 the following documents will be deemed to 

form the completion documents: 

i) The technical documents according to which the WORK 

was carried out. 

ii) Six (6) sets of construction drawings showing therein the 

modification and correction made during the course of execution 

and signed by the ENGINEER-IN-CHARGE. 

iii) COMPLETION CERTIFICATE for èmbedded' and `covered' 

up work. 

iv) Certificates of final levels as set out for various works. 

v) Certificates of tests performed for various WORKS. 

vi) Material appropriation, Statement for the materials issued 

by the EMPLOYER for the WORK and list of surplus materials 

returned to the EMPLOYER's store duly supported by necessary 

documents. 

95.1 Upon expiry of the period of liability and subject to the 

ENGINEER-IN-CHARGE being satisfied that the WORKS have been 

duly maintained by the CONTRACTOR during monsoon or such period as 

hereinbefore provided in Clause 80 & 81 and that the CONTRACTOR has 

in all respect duly made-up any subsidence and performed all his 

obligations under the CONTRACT, the ENGINEER-IN- CHARGE shall 

(without prejudice to the rights of the EMPLOYER to retain the provisions 

of relevant Clause hereof) otherwise give a certificate herein referred to as 

the FINAL CERTIFICATE to that effect and the CONTRACTOR shall 

not be considered to have fulfilled the whole of his obligations under 

CONTRACT until FINAL CERTIFICATE shall have been given by the 

ENGINEER-IN- CHARGE notwithstanding any previous entry upon the 

WORK and taking possession, working or using of the same or any part 

thereof by the EMPLOYER. 

96.1 Except the FINAL CERTIFICATE, no other certificates or payments 

against a certificate or on general account shall be taken to be an 

admission by the EMPLOYER of the due performance of the 

CONTRACT or any part thereof or of occupancy or validity of any claim 

by the CONTRACTOR. 

97.1 All costs, damages or expenses which EMPLOYER may have paid or 

incurred, which under the provisions of the CONTRACT, the 

CONTRACTOR is liable/will be liable, will be claimed by the 

EMPLOYER. All such claims shall be billed by the EMPLOYER to the 

CONTRACTOR regularly as and when they fall due. Such claims shall be 

paid by the CONTRACTOR within 15 (fifteen) days of the receipt of the 

corresponding bills and if not paid by the CONTRACTOR within the said 

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period, the EMPLOYER may, then, deduct the amount from any moneys 

due i.e., Contract Performance Security or becoming due to the 

CONTRACTOR under the CONTRACT or may be recovered by actions 

of law or otherwise, if the CONTRACTOR fails to satisfy the 

EMPLOYER of such claims. 

SECTION-VII Taxes and Insurance 

98 Taxes, Duties, Octroi etc: 98.1 The CONTRACTOR agrees to and does hereby accept full and exclusive 

liability for the payment of any and all Taxes, Duties, including Excise 

duty, octroi etc. now or hereafter imposed, increased, modified, all the 

sales taxes, duties, octrois etc. now in force and hereafter increased, 

imposed or modified, from time to time in respect of WORKS and 

materials and all contributions and taxes for unemployment compensation, 

insurance and old age pensions or annuities now or hereafter imposed by 

any Central or State Government authorities which are imposed with 

respect to or covered by the wages, salaries, or other compensations paid 

to the persons employed by the CONTRACTOR and the CONTRACTOR 

shall be responsible for the compliance of all SUB-CONTRACTORS, 

with all applicable Central, State, Municipal and local law and regulation 

and requirement of any Central, State or local Government agency or 

authority. CONTRACTOR further agrees to defend, indemnify and hold 

EMPLOYER harmless from any liability or penalty which may be 

imposed by the Central, State or Local authorities by reason or any 

violation by CONTRACTOR or SUB-CONTRACTOR of such laws, suits 

or proceedings that may be brought against the EMPLOYER arising 

under, growing out of, or by reason of the work provided for by this 

CONTRACT, by third parties, or by Central or State Government 

authority or any administrative sub-division thereof. 

Tax deductions will be made as per the rules and regulations in force in 

accordance with acts prevailing from time to time. 

99 Sales tax/turnover tax: 99.1 Tenderer should quote all inclusive prices including the liability of Sales 

Tax/Turnover Tax whether on the works contract as a whole or in respect 

of bought out components used by the CONTRACTOR in execution of 

the CONTRACT. EMPLOYER shall not be responsible for any such 

liability of the CONTRACTOR in respect of this CONTRACT. 

100 Statutory variations 100.1 Tenderer should quote prices inclusive of excise-duty and sales tax 

applicable on finished product. Any statutory variations in Excise Duty 

and sales tax on finished product during the contractual completion 

period, shall be to the Employer's account for which the Contractor will 

furnish documentary evidence(s) in support of their claims to GAIL. 

However, any increase in the rate of these taxes and duties (E.D. and 

S.T.) beyond the contractual completion period shall be to Contractor's 

account and any decrease shall be passed on to GAIL. 

101 

Insurance: 

101.1 GENERAL 

CONTRACTOR shall at his own expense arrange secure and maintain 

Page 59 of 82

insurance with reputable insurance companies to the satisfaction of the 

EMPLOYER as follows: 

CONTRACTOR at his cost shall arrange, secure and maintain insurance 

as may be necessary and to its full value for all such amounts to protect the 

WORKS in progress from time to time and the interest of EMPLOYER 

against all risks as detailed herein. The form and the limit of such 

insurance, as defined here in together with the under works thereof in each 

case should be as acceptable to the EMPLOYER. However, irrespective 

of work acceptance the responsibility to maintain adequate insurance 

coverage at all times during the period of CONTRACT shall be that of 

CONTRACTOR alone. CONTRACTOR's failure in this regard shall not 

relieve him of any of his responsibilities and obligations under 

CONTRACT. 

Any loss or damage to the equipment, during ocean transportation, 

port/custom clearance, inland and port handling, inland transportation, 

storage, erection and commissioning till such time the WORK is taken 

over by EMPLOYER, shall be to the account of CONTRACTOR. 

CONTRACTOR shall be responsible for preferring of all claims and make 

good for the damage or loss by way of repairs and/or replacement of the 

parts of the Work damaged or lost. CONTRACTOR shall provide the 

EMPLOYER with a copy of all insurance policies and documents taken 

out by him in pursuance of the CONTRACT. Such copies of document 

shall be submitted to the EMPLOYER immediately upon the 

CONTRACTOR having taken such insurance coverage. CONTRACTOR 

shall also inform the EMPLOYER at least 60(Sixty) days in advance 

regarding the expiry cancellation and/or changes in any of such documents 

and ensure revalidation/renewal etc., as may be necessary well in time. 

Statutory clearances, if any, in respect of foreign supply required for the 

purpose of replacement of equipment lost in transit and/or during erection, 

shall be made available by the EMPLOYER. CONTRACTOR shall, 

however, be responsible for obtaining requisite licences, port clearances 

and other formalities relating to such import. The risks that are to be 

covered under the insurance shall include, but not be limited to the loss or 

damage in handling, transit, theft, pilferage, riot, civil commotion, weather 

conditions, accidents of all kinds, fire, war risk (during ocean 

transportation only) etc. The scope of such insurance shall cover the entire 

value of supplies of equipments, plants and materials to be imported from 

time to time. 

All costs on account of insurance liabilities covered under CONTRACT 

will be to CONTRACTOR's account and will be included in VALUE OF 

CONTRACT. However, the EMPLOYER may from time to time, during 

the currency of the CONTRACT, ask the CONTRACTOR in writing to 

limit the insurance coverage risk and in such a case, the parties to the 

CONTRACT will agree for a mutual settlement, for reduction in VALUE 

OF CONTRACT to the extent of reduced premium amounts. 

CONTRACTOR as far as possible shall cover insurance with Indian 

Insurance Companies, including marine Insurance during ocean 

transportation. 

i) EMPLOYEES STATE INSURANCE ACT: 

Page 60 of 82

The CONTRACTOR agrees to and does hereby accept full and 

exclusive liability for the compliance with all obligations 

imposed by the Employee State Insurance Act 1948 and the 

CONTRACTOR further agrees to defend, indemnify and hold 

EMPLOYER harmless for any liability or penalty which may be 

imposed by the Central, State or Local authority by reason of 

any asserted violation by CONTRACTOR or 

SUB-CONTRACTOR of the Employees' State Insurance Act, 

1948, and also from all claims, suits or proceeding that may be 

brought against the EMPLOYER arising under, growing out of 

or by reasons of the work provided for by this CONTRACTOR, 

by third parties or by Central or State Government authority or 

any political sub- division thereof. 

The CONTRACTOR agrees to fill in with the Employee's State 

Insurance Corporation, the Declaration Forms, and all forms 

which may be required in respect of the CONTRACTOR's or 

SUB- CONTRACTOR's employees, who are employed in the 

WORK provided for or those covered by ESI from time to time 

under the Agreement. The CONTRACTOR shall deduct and 

secure the agreement of the SUB- CONTRACTOR to deduct the 

employee's contribution as per the first schedule of the 

Employee's State Insurance Act from wages and affix the 

Employees Contribution Card at wages payment intervals. The 

CONTRACTOR shall remit and secure the agreement of 

SUB-CONTRACTOR to remit to the State Bank of India, 

Employee's State Insurance Corporation Account, the 

Employee's contribution as required by the Act. The 

CONTRACTOR agrees to maintain all cards and Records as 

required under the Act in respect of employees and payments and 

the CONTRACTOR shall secure the agreement of the SUB- 

CONTRACTOR to maintain such records. Any expenses 

incurred for the contributions, making contributions or 

maintaining records shall be to the CONTRACTOR's or 

SUB-CONTRACTOR's account. 

The EMPLOYER shall retain such sum as may be necessary 

from the total VALUE OF CONTRACT until the 

CONTRACTOR shall furnish satisfactory proof that all 

contributions as required by the Employees State Insurance Act, 

1948, have been paid. This will be pending on the 

CONTRACTOR when the ESI Act is extended to the place of 

work. 

ii) WORKMEN COMPENSATION AND EMPLOYER'S 

LIABILITY INSURANCE: 

Insurance shall be effected for all the CONTRACTOR's 

employees engaged in the performance of this CONTRACT. If 

any of the work is sublet, the CONTRACTOR shall require the 

SUB-CONTRACTOR to provide workman's Compensation and 

employer's liability insurance for the later's employees if such 

employees are not covered under the CONTRACTOR's 

Insurance. 

Page 61 of 82

iii) 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 or in 

consequence 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 and aforesaid) and against all 

claims, demands, proceeding, costs, charges and expenses, 

whatsoever in respect or in relation thereto. 

iv) TRANSIT INSURANCE 

In respect of all items to be transported by the CONTRACTOR to the 

SITE of WORK, the cost of transit insurance should be borne by the 

CONTRACTOR and the quoted price shall be inclusive of this cost. 

V) COMPREHENSIVE AUTOMOBILE INSURANCE 

This insurance shall be in such a form as to protect the Contractor 

against all claims for injuries, disability, disease and death to members 

of public including EMPLOYER’s men and damage to the property of 

others arising from the use of motor vehicles during on or off the `site’ 

operations, irrespective of the Employership of such vehicles. 

VI) COMPREHENSIVE GENERAL LIABILITY INSURANCE 

a) This insurance shall protect the Contractor against all 

claims arising from injuries, disabilities, disease or 

death of member of public or damage to property of 

others due to any act or omission on the part of the 

Contractor, his agents, his employees, his 

representatives and Sub-Contractor’s or from riots, 

strikes and civil commotion. 

b) Contractor shall take suitable Group Personal Accident 

Insurance Cover for taking care of injury, damage or 

any other risks in respect of his Engineers and other 

Supervisory staff who are not covered under Employees 

State Insurance Act. 

c) The policy shall cover third party liability. The third 

party (liability shall cover the loss/ disablement of 

human life (person not belonging to the Contractor) and 

also cover the risk of damage to others materials/ 

equipment/ properties during construction, erection and 

commissioning at site. The value of third party liability 

for compensation for loss of human life or partial/full 

disablement shall be of required statutory value but not 

less than Rs. 2 lakhs per death, Rs. 1.5 lakhs per full 

disablement and Rs. 1 lakh per partial disablement and 

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102 Damage to Property or to any 

Person or any Third Party 

shall nevertheless cover such compensation as may be 

awarded by Court by Law in India and cover for 

damage to others equipment/ property as approved by 

the Purchaser. However, third party risk shall be 

maximum to Rs. 10(ten) lakhs to death. 

d) The Contractor shall also arrange suitable insurance to 

cover damage, loss, accidents, risks etc., in respect of all 

his plant, equipments and machinery, erection tools & 

tackles and all other temporary attachments brought by 

him at site to execute the work. 

e) The Contractor shall take out insurance policy in the 

joint name of EMPLOYER and Contractor from one or 

more nationalised insurance company from any branch 

office at Project site. 

f) Any such insurance requirements as are hereby 

established as the minimum policies and coverages 

which Contractor must secure and keep in force must be 

complied with, Contrator shall at all times be free to 

obtain additional or increased coverages at Contractor’s 

sole expenses. 

vii) ANY OTHER INSURANCE REQUIRED UNDER 

LAW OR REGULATIONS OR BY EMPLOYER: 

CONTRACTOR shall also carry and maintain any and all other 

insurance(s) which he may be required under any law or 

regulation from time to time without any extra cost to 

EMPLOYER. He shall also carry and maintain any other 

insurance which may be required by the EMPLOYER. 

102.1 i) CONTRACTOR shall be responsible for making good to 

the satisfaction of the EMPLOYER any loss or any damage 

to structures and properties belonging to the EMPLOYER or being 

executed or procured or being procured by the EMPLOYER or of 

other agencies within in the premises of all the work of the 

EMPLOYER, if such loss or damage is due to fault and/or the 

negligence or willful acts or omission of the CONTRACTOR, his 

employees, agents, representatives or 

SUB-CONTRACTORs. 

ii) The CONTRACTOR shall take sufficient care in moving his 

plants, equipments and materials from one place to another so 

that they do not cause any damage to any person or to the 

property of the EMPLOYER or any third party including 

overhead and underground cables and in the event of any 

damage resulting to the property of the EMPLOYER or of a 

third party during the movement of the aforesaid plant, 

equipment or materials the cost of such damages including 

eventual loss of production, operation or services in any plant or 

establishment as estimated by the EMPLOYER or ascertained or 

demanded by the third party shall be borne by the 

CONTRACTOR. Third party liability risk shall be Rupees One 

lakh for single accident and limited to Rupees Ten lakhs. 

Page 63 of 82

103 

Labour laws: 

SECTION-VIII Labour Laws 

iii) The CONTRACTOR shall indemnify and keep the 

EMPLOYER harmless of all claims for damages to property 

other than EMPLOYER's property arising under or by reason of 

this agreement, if such claims result from the fault and/or 

negligence or willful acts or omission of the CONTRACTOR, 

his employees, agents, representative of SUB-CONTRACTOR. 

103.1 i) No labour below the age of 18 (eighteen) years shall be 

employed on the WORK. 

ii) The CONTRACTOR shall not pay less than what is provided 

under law to labourers engaged by him on the WORK. 

iii) The CONTRACTOR shall at his expense comply with all 

labour laws and keep the EMPLOYER indemnified in respect 

thereof. 

iv) The CONTRACTOR shall pay equal wages for men and 

women in accordance with applicable labour laws. 

v) If the CONTRACTOR is covered under the Contract labour 

(Regulation and Abolition) Act, he shall obtain a licence from 

licensing authority (i.e. office of the labour commissioner) by 

payment of necessary prescribed fee and the deposit, if any, 

before starting the WORK under the CONTRACT. Such 

fee/deposit shall be borne by the CONTRACTOR. 

vi) The CONTRACTOR shall employ labour in sufficient numbers 

either directly or through SUB- CONTRACTOR's to maintain 

the required rate of progress and of quality to ensure 

workmanship of the degree specified in the CONTRACT and to 

the satisfaction of the ENGINEER-IN-CHARGE. 

vii) The CONTRACTOR shall furnish to the ENGINEER-IN- 

CHARGE the distribution return of the number and description, 

by trades of the work people employed on the works. The 

CONTRACTOR shall also submit on the 4th and 19th of every 

month to the ENGINEER-IN-CHARGE a true statement 

showing in respect of the second half of the preceding month 

and the first half of the current month (1) the accidents that 

occurred during the said fortnight showing the circumstances 

under which they happened and the extent of damage and injury 

caused by them and (2) the number of female workers who have 

been allowed Maternity Benefit as provided in the Maternity 

Benefit Act 1961 on Rules made thereunder and the amount paid 

to them. 

viii) The CONTRACTOR shall comply with the provisions of the 

payment of Wage Act 1936, Employee Provident Fund Act 

1952, Minimum Wages Act 1948. Employers Liability Act 

1938. Workmen's Compensation Act 1923, Industrial Disputes 

Page 64 of 82

104 Implementation of 

apprentices act, 1961: 

105 Contractor to indemnify 

the employer: 

Act 1947, the Maternity Benefit Act 1961 and Contract Labour 

Regulation and Abolition Act 1970, Employment of Children 

Act 1938 or any modifications thereof or any other law relating 

thereto and rules made thereunder from time to time. 

ix) The ENGINEER-IN-CHARGE shall on a report having been 

made by an Inspecting Officer as defined in Contract Labour 

(Regulation and Abolition) Act 1970 have the power to deduct 

from the money due to the CONTRACTOR any sum required or 

estimated to be required for making good the loss suffered by a 

worker or workers by reason of non- fulfillment of the 

Conditions of the Contract for the benefit of workers, 

non-payment of wages or of deductions made from his or their 

wages which are not justified by the terms of the Contract or 

non-observance of the said regulations. 

x) The CONTRACTOR shall indemnify the EMPLOYER against 

any payments to be made under and for the observance of the 

provisions of the aforesaid Acts without prejudice to his right to 

obtain indemnity from his SUB-CONTRACTOR's. In the event 

of the CONTRACTOR committing a default or breach of any of 

the provisions of the aforesaid Acts as amended from time to 

time, of furnishing any information or submitting or filling and 

Form/ Register/ Slip under the provisions of these Acts which is 

materially incorrect then on the report of the inspecting Officers, 

the CONTRACTOR shall without prejudice to any other liability 

pay to the EMPLOYER a sum not exceeding Rs.50.00 as 

Liquidated Damages for every default, breach or furnishing, 

making, submitting, filling materially incorrect statement as may 

be fixed by the ENGINEER-IN- CHARGE and in the event of 

the CONTRACTOR's default continuing in this respect, the 

Liquidated Damages may be enhanced to Rs.50.00 per day for 

each day of default subject to a maximum of one percent of the 

estimated cost of the WORK put to tender. The 

ENGINEER-IN-CHARGE shall deduct such amount from bills 

or Contract Performance Security of the CONTRACTOR and 

credit the same to the Welfare Fund constitute under these acts. 

The decision of the ENGINEER-IN-CHARGE in this respect 

shall be final and binding. 

104.1 The CONTRACTOR shall comply with the provisions of the Apprentices 

Act, 1961 and the Rules and Orders issued thereunder from time to time. 

If he fails to do so, his failure will be a breach of the CONTRACT and the 

ENGINEER-IN-CHARGE may, at his discretion, cancel the 

CONTRACT. The CONTRACTOR shall also be liable for any pecuniary 

liability arising on account of any violation by him of the provisions, of 

the Act. 

105.1 i) The CONTRACTOR shall indemnify the EMPLOYER and 

every member, office and employee of the EMPLOYER, also 

the ENGINEER-IN-CHARGE and his staff against all actions, 

proceedings, claims, demands, costs and expenses whatsoever 

arising out of or in connection with the matters referred to in 

Clause 102.0 and elsewhere and all actions, proceedings, claims, 

demands, costs and expenses which may be made against the 

Page 65 of 82

106 Health and sanitary 

arrangements for workers: 

EMPLOYER for or in respect of or arising out of any failure by 

the CONTRACTOR in the performance of his obligations under 

the CONTRACT DOCUMENT. The EMPLOYER shall not be 

liable for or in respect of or arising out of any failure by the 

CONTRACTOR in the performance of his obligations under the 

CONTRACT DOCUMENT. The EMPLOYER shall not be 

liable for or in respect of any demand or compensation payable 

by law in respect or in consequence of any accident or injury to 

any workmen or other person. In the employment of the 

CONTRACTOR or his SUB-CONTRACTOR the 

CONTRACTOR shall indemnify and keep indemnified the 

EMPLOYER against all such damages and compensations and 

against all claims, damages, proceedings, costs, charges and 

expenses whatsoever in respect thereof or in relation thereto. 

ii) PAYMENT OF CLAIMS AND DAMAGES: 

Should the EMPLOYER have to pay any money in respect of 

such claims or demands as aforesaid the amount so paid and the 

costs incurred by the EMPLOYER shall be charged to and paid 

by the CONTRACTOR and the CONTRACTOR shall not be at 

liberty to dispute or question the right of the EMPLOYER to 

make such payments notwithstanding the same, may have been 

made without the consent or authority or in law or otherwise to 

the contrary. 

iii) In every case in which by virtue of the provisions of Section 12, 

Sub-section (i) of workmen's compensation Act, 1923 or other 

applicable provision of Workmen Compensation Act or any 

other Act, the EMPLOYER is obliged to pay compensation to a 

workman employed by the CONTRACTOR in execution of the 

WORK, the EMPLOYER will recover from the 

CONTRACTOR the amount of the compensation so paid, and 

without prejudice to the rights of EMPLOYER under Section 

12, Sub- section (2) of the said act, EMPLOYER shall be at 

liberty to recover such amount or any part thereof by deducting 

it from the Contract Performance Security or from any sum due 

to the CONTRACTOR whether under this CONTRACT or 

otherwise. The EMPLOYER shall not be bound to contest any 

claim made under Section 12, Sub-section (i) of the said act, 

except on the written request of the CONTRACTOR and upon 

his giving to the EMPLOYER full security for all costs for 

which the EMPLOYER might become liable in consequence of 

contesting such claim. 

106.1 In respect of all labour directly or indirectly employed in the WORKS for 

the performance of the CONTRACTOR's part of this agreement, the 

CONTRACTOR shall comply with or cause to be complied with all the 

rules and regulations of the local sanitary and other authorities or as 

framed by the EMPLOYER from time to time for the protection of health 

and sanitary arrangements for all workers. 

106.2 The CONTRACTOR shall provide in the labour colony all amenities such 

as electricity, water and other sanitary and health arrangements. The 

CONTRACTOR shall also provide necessary surface transportation to the 

place of work and back to the colony for their personnel accommodated in 

Page 66 of 82

the labour colony. 

SECTION-IX Applicable Laws and Settlement of Disputes 

107 Arbitration: 107.1 Unless otherwise specified, the matters where decision of the Engineer-in- 

Charge is deemed to be final and binding as provided in the Agreement 

and the issues/disputes which cannot be mutually resolved within a 

reasonable time, all disputes shall be referred to arbitration by Sole 

Arbitrator. 

The Employer [GAIL (India) Ltd.] shall suggest a panel of three 

independent and distinguished persons to the 

bidder/contractor/supplier/buyer (as the case may be) to select any one 

among them to act as the Sole Arbitrator. 

In the event of failure of the other parties to select the Sole Arbitrator 

within 30 days from the receipt of the communication suggesting the 

panel of arbitrators, the right of selection of the sole arbitrator by the 

other party shall stand forfeited and the EMPLOYER (GAIL) shall 

have discretion to proceed with the appointment of the Sole Arbitrator. 

The decision of Employer on the appointment of the sole arbitrator 

shall be final and binding on the parties. 

The award of sole arbitrator shall be final and binding on the parties 

and unless directed/awarded otherwise by the sole arbitrator, the cost of 

arbitration proceedings shall be shared equally by the parties. The 

Arbitration proceedings shall be in English language and venue shall be 

New Delhi, India. 

Subject to the above, the provisions of (Indian) Arbitration & 

Conciliation ACT 1996 and the Rules framed there under shall be 

applicable. All matter relating to this contract are subject to the 

exclusive jurisdiction of the court situated in the state of Delhi. 

Bidders/suppliers/contractors may please note that the Arbitration & 

Conciliation Act 1996 was enacted by the Indian Parliament and is 

based on United Nations Commission on International Trade Law 

(UNCITRAL model law), which were prepared after extensive 

consultation with Arbitral Institutions and centers of International 

Commercial Arbitration. The United Nations General Assembly vide 

resolution 31/98 adopted the UNCITRAL Arbitration rules on 15 

December 1976. 

107.2 FOR THE SETTLEMENT OF DISPUTES BETWEEN 

GOVERNMENT DEPARTMENT AND ANOTHER AND ONE 

GOVERNMENT DEPARTMENT AND PUBLIC ENTERPRISE AND 

ONE PUBLIC ENTERPRISE AND ANOTHER THE ARBITRATION 

SHALL BE AS FOLLOWS: 

"In the event of any dispute or difference between the parties hereto, 

such dispute or difference shall be resolved amicably by mutual 

consultation or through the good offices of empowered agencies of the 

Government. If such resolution is not possible, then, the unresolved 

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108 Jurisdiction: 

dispute or difference shall be referred to arbitration of an arbitrator to 

be nominated by Secretary, Department of Legal Affairs ("Law 

Secretary") in terms of the Office Memorandum No.55/3/1/75-CF, 

dated the 19th December 1975 issued by the Cabinet Secretariat 

(Department of Cabinet Affairs), as modified from time to time. The 

Arbitration Act 1940 (10 of 1940) shall not be applicable to the 

arbitration under this clause. The award of the Arbitrator shall be 

binding upon parties to the dispute. Provided, however, any party 

aggrieved by such award may make a further reference for setting aside 

or revision of the award to Law Secretary whose decision shall bind the 

parties finally and conclusively. 

The CONTRACT shall be governed by and constructed according to the 

laws in force in INDIA. The CONTRACTOR hereby submits to the 

jurisdiction of the Courts situated at DELHI for the purposes of disputes, 

actions and proceedings arising out of the CONTRACT, the courts at 

DELHI only will have the jurisdiction to hear and decide such disputed, 

actions and proceedings. 

SECTION-X Safety Codes 

109 General: 109.1 CONTRACTOR shall adhere to safe construction practice and guard 

against hazardous, and unsafe working conditions and shall comply with 

EMPLOYER's safety rules as set forth herein. Prior to start of 

construction, CONTRACTOR will be furnished copies of EMPLOYER's 

"Safety Code" for information and guidance, if it has been prepared. 

110 Safety regulations: 110.1 i) In respect of all labour, directly employed in the WORK for 

the performance of CONTRACTOR's part of this 

agreement, the CONTRACTOR shall at his own expense 

arrange for all the safety provisions as per safety codes of 

C.P.W.D., Indian Standards Institution. The Electricity Act, 

The Mines Act and such other acts as applicable. 

111 First aid and industrial 

injuries: 

ii) The CONTRACTOR shall observe and abide by all fire and 

safety regulations of the EMPLOYER. Before starting 

construction work CONTRACTOR shall consult with 

EMPLOYER's safety Engineers or ENGINEER- IN-CHARGE 

and must make good to the satisfaction of the EMPLOYER any 

loss or damage due to fire to any portion of the work done or to 

be done under this agreement or to any of the EMPLOYER's 

existing property. 

111.0 i) CONTRACTOR shall maintain first aid facilities for its 

employees and those of its SUB-CONTRACTOR. 

ii) CONTRACTOR shall make outside arrangements for 

ambulance service and for the treatment of industrial injuries. 

Names of those providing these services shall be furnished to 

EMPLOYER prior to start of construction and their telephone 

numbers shall be prominently posted in CONTRACTOR's field 

office. 

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iii) All critical industrial injuries shall be reported promptly 

to EMPLOYER, and a copy of CONTRACTOR's report 

covering each personal injury requiring the attention of a 

physician shall be furnished to the EMPLOYER. 

112 General rules: 112.0 Smoking within the battery area, tank farm or dock limits is strictly 

prohibited. Violators of the no smoking rules shall be discharged 

immediately. 

113 Contractor's barricades: 113.0 i) CONTRACTOR shall erect and maintain barricades 

required in connection with his operation to guard or protect:- 

a) Excavations 

b) Hoisting Areas. 

c) Areas adjudged hazardous by CONTRACTOR's or 

EMPLOYER's inspectors. 

d) EMPLOYER's existing property subject to damage by 

CONTRACTOR's Operations. 

e) Rail Road unloading spots. 

ii) CONTRACTOR's employees and those of his SUB- 

CONTRACTOR's shall become acquainted with EMPLOYER's 

barricading practice and shall respect the provisions thereof. 

iii) Barricades and hazardous areas adjacent to, but not 

located in normal routes of travel shall be marked by red flasher 

lanterns at nights. 

114 Scaffolding: 114.1 i) Suitable scaffolding should be provided for workmen 

for all works that cannot safely be done from the ground or from 

solid construction except such short period work as can be done 

safely from ladders. When a ladder is used an extra Mazdoor 

shall be engaged for holding the ladder and if the ladder is used 

for carrying material as well, suitable footholds and handholds 

shall be provided on the ladder and the ladder shall be given an 

inclination not steeper than 1 in 4 (1 horizontal and 4 vertical). 

ii) Scaffolding or staging more than 4 metres above the ground or 

floor, swing suspended from an overhead support or erected 

with stationary support shall have a guard rail properly attached, 

bolted, braced and otherwise retarded at least one metre high 

above the floor or platform of such scaffolding or staging and 

extending along the entire length of the outside and ends thereof 

with only such openings as may be necessary for the delivery of 

materials. Such scaffolding or staging shall be so fastened as to 

prevent it from swaying from the building or structure. 

iii) Working platform, gangway and stairway should be so 

constructed that they should not sag unduly or unequally and if 

the height of platform of the gangway or the stairway is more 

than 4 metres above the ground level or floor level, they should 

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e closely boarded, should have adequate width and should be 

suitably fastened as in ii) above. 

iv) Every opening in the floor of a building or in a working platform 

shall be provided with suitable means to prevent the fall of 

persons or materials by providing suitable fencing of railing 

whose minimum heights shall be 1 metre. 

v) Safe-means of access shall be provided to all working 

platforms and other working places, every ladder shall be 

securely fixed. No portable single ladder shall be over 9 metres 

in length while the width between side rails in rung ladder shall 

in no case be less than 30 cms for ladder upto and including 3 

metres in length. For longer ladder this width should be 

increased 5mm for each additional foot of length. Uniform steps 

spacing shall not exceed 30 cms. Adequate precautions shall be 

taken to prevent danger from electrical equipment. No materials 

on any of the sites or work shall be so stacked or placed to cause 

danger or inconvenience to any person or public. The 

CONTRACTOR shall also provide all necessary fencing and 

lights to protect the workers and staff from accidents, and shall 

be bound to bear the expenses of defense of every suit, action or 

other proceeding of law that may be brought by any person for 

injury sustained owing to neglect of the above precautions and 

pay any damages and costs which may be awarded in any such 

suit or action or proceeding to any such person or which may 

with the consent of the CONTRACTOR be paid to compromise 

any claim by any such person. 

115 Excavation and trenching: 115.1 All trenches 1.2 metres or more in depth, shall at all times be supplied 

with at least one ladder for each 50 metres length or fraction thereof. 

Ladder shall be extended from bottom of the trenches to atleast 1 metre 

above the surface of the ground. The sides of the trenches which are 

1.5M in depth shall be stepped back to give suitable slope or securely held 

by timber bracing, so as to avoid the danger of sides to collapse. The 

excavated materials shall not be placed within 1.5 metres of the edge of 

the trench or half of the trench width whichever is more. Cutting shall be 

done from top to bottom. Under no circumstances undermining or 

under-cutting shall be done. 

116 Demolition/general safety: 116.1 i) Before any demolition work is commenced and also 

during the progress of the demolition work 

a) All roads and open areas adjacent to the work site shall 

either be closed or suitably protected. 

b) No electric cable or apparatus which is liable to be a 

source of danger shall remain electrically charged. 

c) All practical steps shall be taken to prevent danger to 

persons employed from risk of fire or explosion or 

flooding. No floor, roof or other part of the building 

shall be so overloaded with debris or materials as to 

render it unsafe. 

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ii) All necessary personal safety equipment as considered 

adequate by the ENGINEER-IN-CHARGE, should be kept 

available for the use of the persons employed on the SITE and 

maintained in condition suitable for immediate use, and the 

CONTRACTOR shall take adequate steps to ensure proper use 

of equipment by those concerned. 

a) Workers employed on mixing asphaltic materials, 

cement and lime mortars shall be provided with 

protective footwear and protective gloves. 

b) Those engaged in white washing and mixing or 

stacking or cement bags or any material which are 

injurious to the eyes be provided with protective 

goggles. 

c) Those engaged in welding and cutting works shall be 

provided with protective face & eye shield, hand 

gloves, etc. 

d) Stone breakers shall be provided with protective 

goggles and protective clothing and seated at 

sufficiently safe intervals. 

e) When workers are employed in sewers and manholes, 

which are in use, the CONTRACTOR shall ensure that 

the manhole covers are opened and are ventilated 

atleast for an hour before the workers are allowed to 

get into the manholes, and the manholes so opened 

shall be cordoned off with suitable railing and 

provided with warning signals or board to prevent 

accident to the public. 

f) The CONTRACTOR shall not employ men below the 

age of 18 years and women on the work of painting 

with products containing lead in any form. Wherever 

men above the age of 18 years are employed on the 

work of lead painting, the following precautions 

should be taken. 

1) No paint 

containing lead or lead product shall be used 

except in the form of paste or readymade 

paint. 

2) Suitable face 

masks should be supplied for use by the 

workers when paint is applied in the form of 

spray or a surface having lead paint dry 

rubbed and scrapped. 

3) Overalls shall be 

supplied by the CONTRACTOR to the 

workmen and adequate facilities shall be 

provided to enable the working painters to 

Page 71 of 82

wash them during and on cessation of work. 

iii) When the work is done near any place where there is risk of 

drowning, all necessary safety equipment should be provided 

and kept ready for use and all necessary steps taken for prompt 

rescue of any person in danger and adequate provision should be 

made for prompt first aid treatment of all injuries likely to be 

sustained during the course of the work. 

iv) Use of hoisting machines and tackles including their 

attachments, anchorage and supports shall conform to the 

following standards or conditions: 

a) These shall be of good mechanical construction, sound 

materials and adequate strength and free from patent 

defect and shall be kept in good working order. 

b) Every rope used in hoisting or lowering materials or as 

means of suspension shall be of durable quality and 

adequate strength and free from patent defects. 

c) Every crane driver or hoisting appliance operator shall be 

properly qualified and no person under the age of 21 

years should be in charge of any hoisting machine 

including any scaffolding, winch or give signals to the 

operator. 

d) In case of every hoisting machine and of every chain ring 

hook, shackle, swivel, and pulley block used in hoisting 

or lowering or as means of suspension, the safe working 

load shall be ascertained by adequate means. Every 

hoisting machine and all gears referred to above shall be 

plainly marked with the safe working load of the 

conditions under which it is applicable and the same shall 

be clearly indicated. No part of any machine or any gear 

referred to above in this paragraph shall be loaded 

beyond safe working load except for the purpose of 

testing. 

e) In case of departmental machine, the safe working load shall 

be notified by the ENGINEER- IN-CHARGE. As 

regards CONTRACTOR's machines, the 

CONTRACTOR shall notify the safe working load of 

the machine to the ENGINEER-IN-CHARGE whenever 

he brings any machinery to SITE of WORK and get it 

verified by the Engineer concerned. 

v) Motors, gears, transmission lines, electric wiring and other 

dangerous parts of hoisting appliances should be provided with 

efficient safeguards. Hoisting appliances should be provided 

with such means as to reduce to minimum the accidental descent 

of the load, adequate precautions should be taken to reduce the 

minimum risk of any part or parts of a suspended load becoming 

accidentally displaced. When workers are employed on 

electrical installations which are already energised, insulating 

mats, wearing apparel, such as gloves, sleeves, and boots as may 

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117 Care in handling inflammable 

gas: 

118 

Temporary combustible 

structures: 

be necessary should be provided. The workers shall not wear 

any rings, watches and carry keys or other materials which are 

good conductors of electricity. 

vi) All scaffolds, ladders and other safety devices mentioned or 

described herein shall be maintained in safe conditions and no 

scaffolds, ladder or equipment shall be altered or removed while 

it is in use. Adequate washing facilities should be provided at or 

near places of work. 

vii) These safety provisions should be brought to the notice of all 

concerned by displaying on a notice board at a prominent place 

at the work-spot. The person responsible for compliance of the 

safety code shall be named therein by the CONTRACTOR. 

viii) To ensure effective enforcement of the rules and regulations 

relating to safety precautions, the arrangements made by the 

CONTRACTOR shall be open to inspection by the Welfare 

Officer, ENGINEER-IN- CHARGE or safety Engineer of the 

Administration or their representatives. 

ix) Notwithstanding the above clauses there is nothing in these to 

exempt the CONTRACTOR for the operations of any other Act 

or rules in force in the Republic of India. The work throughout 

including any temporary works shall be carried out in such a 

manner as not to interfere in any way whatsoever with the traffic 

on any roads or footpath at the site or in the vicinity thereto or 

any existing works whether the property of the Administration 

or of a third party. 

In addition to the above, the CONTRACTOR shall abide by the 

safety code provision as per C.P.W.D. Safety code and Indian 

Standard Safety Code from time to time. 

117.1 The CONTRACTOR has to ensure all precautionary measures and 

exercise utmost care in handling the inflammable gas 

cylinder/inflammable liquids/paints etc. as required under the law and/or 

as advised by the fire Authorities of the EMPLOYER 

118.1 Temporary combustible structures will not be built near or around work 

site. 

119 Precautions against fire: 119.1 The CONTRACTOR will have to provide Fire Extinguishers, Fire 

Buckets and drums at worksite as recommended by 

ENGINEER-IN-CHARGE. They will have to ensure all precautionary 

measures and exercise utmost care in handling the inflammable gas 

cylinders/ inflammable liquid/ paints etc. as advised by 

ENGINEER-IN-CHARGE. Temporary combustible structures will not be 

built near or around the work-site. 

120 Explosives: 120.1 Explosives shall not be stored or used on the WORK or on the SITE by 

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the CONTRACTOR without the permission of the 

ENGINEER-IN-CHARGE in writing and then only in the manner and to 

the extent to which such permission is given. When explosives are 

required for the WORK they will be stored in a special magazine to be 

provided at the cost of the CONTRACTOR in accordance with the 

Explosives Rules. The CONTRACTOR shall obtain the necessary licence 

for the storage and the use of explosives and all operations in which or for 

which explosives are employed shall be at sole risk and responsibility of 

the CONTRACTOR and the CONTRACTOR shall indemnify the 

EMPLOYER against any loss or damage resulting directly or indirectly 

therefrom. 

121 Mines act: 121.1 SAFETY CODE: The CONTRACTOR shall at his own expense arrange 

for the safety provisions as required by the ENGINEER-IN-CHARGE in 

respect of all labour directly employed for performance of the WORKS 

and shall provide all facilities in connection therewith. In case the 

CONTRACTOR fails to make arrangements and provides necessary 

facilities as aforesaid, the ENGINEER-IN- CHARGE shall be entitled to 

do so and recover the costs thereof from the CONTRACTOR. 

121.2 Failure to comply with Safety Code or the provisions relating to report on 

accidents and to grant of maternity benefits to female workers shall make 

the CONTRACTOR liable to pay Company Liquidated Damages an 

amount not exceeding Rs.50/- for each default or materially incorrect 

statement. The decision of the ENGINEER-IN-CHARGE in such matters 

based on reports from the Inspecting Officer or from representatives of 

ENGINEER-IN-CHARGE shall be final and binding and deductions for 

recovery of such Liquidated Damages may be made from any amount 

payable to the CONTRACTOR from all the provisions of the Mines Act, 

1952 or any statutory modifications or re-enactment thereof the time 

being in force and any Rules and Regulations made thereunder in respect 

of all the persons employed by him under this CONTRACT and shall 

indemnify the EMPLOYER from and against any claim under the Mines 

Act or the rules and regulations framed thereunder by or on behalf of any 

persons employed by him or otherwise. 

122 Preservation of place: 122.1 The CONTRACTOR shall take requisite precautions and use his best 

endeavours to prevent any riotous or unlawful behaviour by or amongst 

his worker and others employed or the works and for the preservation of 

peace and protection of the inhabitants and security of property in the 

neighborhood of the WORK. In the event of the EMPLOYER requiring 

the maintenance of a Special Police Force at or in the vicinity of the site 

during the tenure of works, the expenses thereof shall be borne by the 

CONTRACTOR and if paid by the EMPLOYER shall be recoverable 

from the CONTRACTOR. 

123 Outbreak of infectious 

diseases: 

123.1 The CONTRACTOR shall remove from his camp such labour and their 

facilities who refuse protective inoculation and vaccination when called 

upon to do so by the ENGINEER-IN-CHARGE's representative. Should 

Cholera, Plague or other infectious diseases break out the 

CONTRACTOR shall burn the huts, beddings, clothes and other 

belongings or used by the infected parties and promptly erect new huts on 

healthy sites as required by the ENGINEER-IN-CHARGE failing which 

within the time specified in the Engineer's requisition, the work may be 

done by the EMPLOYER and the cost thereof recovered from the 

CONTRACTOR. 

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124 Use of intoxicants: 

124.1 The unauthorised sale of spirits or other intoxicants, beverages upon the 

work in any of the buildings, encampments or tenements owned, occupied 

by or within the control of the CONTRACTOR or any of his employee is 

forbidden and the CONTRACTOR shall exercise his influence and 

authority to the utmost extent to secure strict compliance with this 

condition. 

In addition to the above, the CONTRACTOR shall abide by the safety 

code provision as per C.P.W.D. safety code and Indian Standard Code 

framed from time to time. 

Page 75 of 82

PROFORMA OF INDEMNITY BOND FOR SUPPLY OF MATERIALS BY 

EMPLOYER 

(To be executed on non-judicial stamped paper of appropriate value) 

WHEREAS GAIL (INDIA) LTD. (hereinafter referred to as GAIL) which expression shall 

unless repugnant to the context includes their legal representatives, successors and assigns 

having their registered office at 16, Bhikaiji Cama Place; R.K.Puram New Delhi has 

entered into a CONTRACT with ______________________ (hereinafter referred to as the 

CONTRACTOR which expression shall unless repugnant to the context include their legal 

representatives, successors and assigns) for ____________________on the terms and 

conditions as set out, inter-alia, in the CONTRACT No................. Dated............. and various 

documents forming part thereof hereinafter collectively referred to as the "CONTRACT" 

which expression shall include all amendments, modifications and/or variations thereto. 

AND WHEREAS 

i) GAIL has agreed to supply to the CONTRACTOR, equipment, plants and materials 

(finished, semi-finished and raw)for the purpose of EXECUTION of the said 

CONTRACT by the CONTRACTOR (the equipment, plants and materials to be 

supplied by GAIL to the CONTRACTOR, hereinafter for the sake of brevity 

referred to as the "said materials") and pending execution by the CONTRACTOR of 

the CONTRACT incorporating the said materials, the said materials shall be under 

the custody and charge of the CONTRACTOR and shall be kept, stored, altered, 

worked upon and/or fabricated at the sole risk and expense of the CONTRACTOR. 

ii) As a pre-condition to the supply of the said materials by GAIL to the 

CONTRACTOR, GAIL has required the CONTRACTOR to furnish to GAIL an 

Indemnity Bond in the manner and upon terms and conditions hereinafter indicated. 

NOW, THEREFORE, in consideration of the premises aforesaid the 

CONTRACTOR hereby irrevocably and unconditionally undertakes to indemnify 

and keep indemnified GAIL from and against all loss, damage and destruction 

(inclusive but not limited to any or all loss or damage or destruction to or of the said 

materials or any item or part thereof by theft, pilferage, fire, flood, storm, tempest, 

lightning, explosion, storage, chemical or physical action or reaction, binding, 

warping, exposure, rusting, faulty workmanship, faulty fabrication, or faulty method 

or technique of fabrication, strike, riot, civil commotion, or other act or omission or 

commission whatsoever within or beyond the control of the CONTRACTOR, 

misuse and misappropriation (inclusive but not limited to the misuse or 

misappropriation by the CONTRACTOR and the Contractor's servants and/or 

agents) whatsoever to, or of in the said materials or any part of them thereof from the 

Page 76 of 82

date that the same or relative part of item thereof was supplied to the 

CONTRACTOR upto and until the date of return to GAIL of the said materials or 

relative part of item thereof or completed fabricated works(s) incorporating the said 

material and undertake to pay to GAIL forthwith on demand in writing without 

protest or demur the value as specified by GAIL of the said material or item or part 

thereof, lost, damaged, destroyed, misused and/or misappropriated, as the case may 

be or, together with GAIL'S costs and expenses (inclusive of but not limited to 

handling, transportation, cartage, insurance, freight, packing and inspection costs/or 

expenses upto) and aggregate limit of 

Rs._________________________________________________ (Rupees 

________________________________________________________________ 

_________________________________). 

AND THE CONTRACTOR hereby agrees with GAIL that: 

i) This Indemnity/Undertaking shall be a continuing Indemnity/ Undertaking 

and shall remain valid and irrevocable for all claims of GAIL arising 

hereunder upto and until the midnight of ________________. However, if 

the CONTRACT for which this Indemnity/Undertaking is given is not 

completed by this date, the CONTRACTOR hereby agrees to extend the 

Indemnity/Undertaking till such time as is required to fulfil the 

CONTRACT. 

ii) This Indemnity/Undertaking shall not be determined by any change in 

constitution or upon insolvency of the CONTRACTOR but shall be in all 

respects and for all purposes be binding and operative until payment of all 

moneys payable to GAIL in terms of hereof. 

iii) The mere statement of allegation made by or on behalf of GAIL in any 

notice or demand or other writing addressed to the CONTRACTOR as to 

any of the said material or item or part thereof having been lost , damaged, 

destroyed, misused or misappropriated while in the custody of the 

CONTRACTOR and/or prior to completion of the completed fabricated 

work(s) and delivery to job site thereof incorporating the said materials shall 

be conclusive of the factum of the said material or item or part thereof 

having been supplied to the CONTRACTOR and/or the loss, damage, 

destruction, misuse or misappropriation thereof, as the case may be, while in 

the custody of the CONTRACTOR and/or prior to the completion of the 

completed fabricated work(s) and delivery to job site thereof incorporating 

the said materials without necessity on the part of GAIL to produce any 

documentary proof or other evidence whatsoever in support of this. 

iv) The amount stated in any notice of demand addressed by GAIL to the 

CONTRACTOR as to the value of such said materials lost, damaged, 

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Place: 

Dated: 

destroyed, misused or misappropriated, inclusive relative to the costs and 

expenses incurred by GAIL in connection therewith shall be conclusive of 

the value of such said materials and the said cost and expenses as also of the 

amount liable to be paid to GAIL to produce any voucher, bill or other 

documentation or evidence whatsoever in support thereof and such amount 

shall be paid without any demur and on demand and no dispute shall be 

raised concerning the same. 

The undersigned has full power to execute this Indemnity Bond on behalf of the 

CONTRACTOR under the Power of Attorney dated______. 

Official seal of the CONTRACTOR 

(SIGNED BY COMPETENT AUTHORITY) 

Page 78 of 82

PROFORMA FOR CONTRACT AGREEMENT 

LOA No. GAIL / dated ----------- 

Contract Agreement for the work of ----------------- of GAIL (INDIA) Ltd. made on ------ 

---- between (Name and Address)------------- , hereinafter called the “CONTRACTOR” 

(which term shall unless excluded by or repugnant to the subject or context include its 

successors and permitted assignees) of the one part and GAIL (INDIA) LIMITED 

hereinafter called the “EMPLOYER” (which term shall, unless excluded by or 

repugnant to the subject or context include its successors and assignees) of the other 

part. 

WHEREAS 

A. The EMPLOYER being desirous of having provided and executed certain work 

mentioned, enumerated or referred to in the Tender Documents including Letter 

Inviting Tender, General Tender Notice, General Conditions of Contract, Special 

Conditions of Contract, Specifications, Drawings, Plans, Time Schedule of 

completion of jobs, Schedule of Rates, Agreed Variations, other documents has 

called for Tender. 

B. The CONTRACTOR has inspected the SITE and surroundings of WORK specified 

in the Tender Documents and has satisfied himself by careful examination before 

submitting his tender as to the nature of the surface, strata, soil, sub-soil and 

ground, the form and nature of site and local conditions, the quantities, nature and 

magnitude of the work, the availability of labour and materials necessary for the 

execution of work, the means of access to SITE, the supply of power and water 

thereto and the accommodation he may require and has made local and independent 

enquiries and obtained complete information as to the matters and thing referred to, 

or implied in the tender documents or having any connection therewith and has 

considered the nature and extent of all probable and possible situations, delays, 

hindrances or interferences to or with the execution and completion of the work 

Page 79 of 82

to be carried out under the CONTRACT, and has examined and considered all 

other matters, conditions and things and probable and possible contingencies, and 

generally all matters incidental thereto and ancillary thereof affecting the 

execution and completion of the WORK and which might have influenced him in 

making his tender. 

C. The Tender Documents including the Notice Letter Inviting Tender, General 

Conditions of Contract, Special Conditions of Contract, Schedule of Rates, General 

Obligations, SPECIFICATIONS, DRAWINGS, PLANS, Time Schedule for 

completion of Jobs, Letter of Acceptance of Tender and any statement of agreed 

variations with its enclosures copies of which are hereto annexed form part of this 

CONTRACT though separately set out herein and are included in the expression 

“CONTRACT” wherever herein used. 

AND WHEREAS 

The EMPLOYER accepted the Tender of the CONTRACTOR for the provision and the 

execution of the said WORK at the rates stated in the schedule of quantities of the work 

and finally approved by EMPLOYER (hereinafter called the "Schedule of Rates") upon the 

terms and subject to the conditions of CONTRACT. 

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED AND 

DECLARED AS FOLLOWS:- 

1. In consideration of the payment to be made to the CONTRACTOR for the WORK 

to be executed by him, the CONTRACTOR hereby covenants with EMPLOYER 

that the CONTRACTOR shall and will duly provide, execute and complete the 

said work and shall do and perform all other acts and things in the CONTRACT 

mentioned or described or which are to be implied there from or may be 

reasonably necessary for the completion of the said WORK and at the said times 

and in the manner and subject to the terms and conditions or stipulations 

mentioned in the contract. 

2. In consideration of the due provision execution and completion of the said 

WORK, EMPLOYER does hereby agree with the CONTRACTOR that the 

Page 80 of 82

EMPLOYER will pay to the CONTRACTOR the respective amounts for the 

WORK actually done by him and approved by the EMPLOYER at the Schedule 

of Rates and such other sum payable to the CONTRACTOR under provision of 

CONTRACT, such payment to be made at such time in such manner as provided 

for in the CONTRACT. 

A N D 

3. In consideration of the due provision, execution and completion of the said 

WORK the CONTRACTOR does hereby agree to pay such sums as may be due 

to the EMPLOYER for the services rendered by the EMPLOYER to the 

CONTRACTOR, such as power supply, water supply and others as set for in 

the said CONTRACT and such other sums as may become payable to the 

EMPLOYER towards the controlled items of consumable materials or towards 

loss, damage to the EMPLOYER'S equipment, materials construction plant and 

machinery, such payments to be made at such time and in such manner as is 

provided in the CONTRACT. 

It is specifically and distinctly understood and agreed between the EMPLOYER 

and the CONTRACTOR that the CONTRACTOR shall have no right, title or 

interest in the SITE made available by the EMPLOYER for execution of the 

works or in the building, structures or work executed on the said SITE by the 

CONTRACTOR or in the goods, articles, materials etc., brought on the said SITE 

(unless the same specifically belongs to the CONTRACTOR) and the 

CONTRACTOR shall not have or deemed to have any lien whatsoever charge 

for unpaid bills will not be entitled to assume or retain possession or control of 

the SITE or structures and the EMPLOYER shall have an absolute and 

unfettered right to take full possession of SITE and to remove the 

CONTRACTOR, their servants, agents and materials belonging to the 

CONTRACTOR and lying on the SITE. 

The CONTRACTOR shall be allowed to enter upon the SITE for execution of 

Page 81 of 82

the WORK only as a licensee simpliciter and shall not have any claim, right, 

title or interest in the SITE or the structures erected thereon and the 

EMPLOYER shall be entitled to terminate such license at any time without 

assigning any reason. 

The materials including sand, gravel, stone, loose, earth, rock etc., dug up or excavated 

from the said SITE shall, unless otherwise expressly agreed under this CONTRACT, 

exclusively belong to the EMPLOYER and the CONTRACTOR shall have no right to 

claim over the same and such excavation and materials should be disposed off on 

account of the EMPLOYER according to the instruction in writing issued from time to 

time by the ENGINEER-IN-CHARGE. 

In Witness whereof the parties have executed these presents in the day and the year first 

above written. 

Signed and Delivered for and on Signed and Delivered for and 

on behalf of EMPLOYER. on behalf of the CONTRACTORs. 

GAIL (INDIA) LIMITED (NAME OF THE CONTRACTOR) 

_______________________________ ____________________________ 

_______________________________ ____________________________ 

Date :___________ Date :____________ 

Place:___________ Place:____________ 

IN PRESENCE OF TWO WITNESSES 

1.___________________________ 1. ________________________ 

___________________________ ________________________ 

___________________________ ________________________ 

2.___________________________ 2. ________________________ 

___________________________ ________________________ 

___________________________ ________________________ 

Page 82 of 82



NEW DELHI, INDIA 

NATURAL GAS PIPELINE PROJECT 

FOR IPP’s INDUSTRIES IN K.G. BASIN 

(Looplines between K. Cheruvu J.P. to Kakinada J.P.) 

BID DOCUMENT FOR PROCUREMENT 

OF 

BARE/ COATED LINE PIPES 

UNDER INTERNATIONAL 

COMPETITIVE BIDDING 

Bid Document No.: 05/51/23J8(PART-C)/GAIL/012B 

VOLUME – II OF II 

PREPARED AND ISSUED BY 



Delhi, India 

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JANUARY 2007


TENDER FOR 



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Bid No. 05/51/23J8(PART-C)/GAIL/012B MECON LIMITED 

INDEX 

OF 

BID DOCUMENT 

VOLUME – I OF II 

Section-I : Invitation for bids (IFB) 

Section-II : Instructions to Bidder (ITB) 

Section-III : General Conditions of Contract (GCC – Goods) 

General Conditions of Contract (GCC – Procurement of Works) 

Section–VIII : VOID 

VOLUME – II OF II 

Section-IV : Special Conditions of Contract (SCC) 

Section-V : Brief Summary of Agreed Terms & Conditions 

Section-VI : Material Requisition and Technical Specification 

Section-VII : Bid Form 

Section-IX : Price Schedule / SOR 

Section-X : Drawings


TENDER FOR 





SECTION-WISE CONTENT LIST 

Section – I – Invitation for Bid – Covering 

Letter 

Section – II - INSTRUCTION TO BIDDER – Volume I of II 

A. GENERAL 


2. Eligible Bidder 


4. Bidder Eligibility 


B. BIDDING DOCUMENT 

6. Content of Bidding Document 



C. PREPARATION OF BIDS 


10 Documents Comprising the Bids 

11. Bid Form & Price Schedule 

12. Bid Prices 

13 Bid Currencies 

14 Documents Establishing Bidder's 

Eligibility and Qualification 

15 Documents Establishing (Goods' 

Eligibility and Conformity) to Bidding Documents 

16 Period of Validity of Bids 

17 Bid Security 

18. Pre-Bid meeting 

19 Format and Signing of Bid 

20 Zero Deviation 

21 E-Payment 

22 Agent/ consultant/ Representative/ Retainer/ Associate 

D. SUBMISSION OF BIDS 

23. Sealing and marking of bids 

24 Deadline for Submission of Bid 

25 Late Bids 

26 Modification And Withdrawal of Bids


TENDER FOR 



E. OPENING AND EVALUATION OF BIDS 

27 Bid Opening 

28 Process to be Confidential 

29 Contacting the Purchaser 

30 Preliminary Examination of Bids 

31 Price-Bid Opening 

32 Arithmetic Corrections 

33 Conversion To Single Currency 

34 Evaluation And Comparison of Bids 

35 Domestic Preference 

36 Purchase Preference 

F. AWARD OF CONTRACT 

37 Post Qualification 

38 Award Criteria 

39 PURCHASER's Right to Vary Quantities 

at Time of Award 

40 PURCHASER's Right to Accept Any Bid 

and To reject Any or All Bids 

41 Notification of Award/ Fax of Intent 

42 Acceptance of Purchase Order 

43 Performance Guarantee 

44 Income Tax Liability 

45 Corrupt or Fraudulent Practices 



Section – III – General Conditions of Contract-GOODS – Volume I of II 

1. Definitions 

2. Seller to inform 

3 Application 

4. Country of origin 

5. Scope of Contract 

6. Standards 

7. Instructions, direction & correspondence 

8. Contract Obligations 

9. Modification in Contract 

10. Use of Contract Documents & Information 

11. Patent Rights, Liability & Compliance of Regulations 

12. Performance Guarantee 

13. Inspection, Testing & Expediting 

14. Time Schedule & Progress Reporting 

15. Delivery & Documents 

16. Transit Risk Insurance 

17. Transportation 

18. Incidental Services 

19. Spare Parts, Maintenance Tools, Lubricants


TENDER FOR 





20. Guarantee 

21. Terms of Payment 

22. Prices 

23. Subletting & assignment 

24. Time as Essence of Contract 

25. Delays in the Seller’s Performance 

26. Price Reduction Schedule for Delayed delivery 

27. Rejections, Removal of rejected equipment & replacement 

28. Termination of Contract 

29. Force Majeure 

30. Resolution of disputes/arbitration 

31. Governing Language 

32. Notices 

33. Taxes & Duties 

34. Books & Records 

35. Permits & Certificates 

36. General 

37. Import Licence 

38. Fall clause 

39. Publicity & Advertising 

40 Repeat Order 

41 Limitation of Liability 

Section – IV – Special Conditions of Contract – Volume II of II 

1. Scope of Supply 

2. Delivery Basis 

3. Delivery Schedule 

4. Payment terms 

5. Price Reduction Schedule 

6. Port of Discharge 

7. General Information – Consignee Address, Paying Authority etc. 

8. Miscellaneous 

Section – V – Brief Summary of Agreed Terms – Volume-I of II 

& Conditions (As per Annexure-III 

to ITB) 

Section – VI – Material Requisition and – Volume II of II 

Technical Specification 

Section – VII – Bid Form – Volume II of II 

Section – VIII – Attachment – I to GCC – Volume I of II 

– Forms and Format 

F – 1 Bidder’s General Information 

F – 2 Bid Form 

F – 3 List of Enclosures with Part – I (Unpriced Bid) 

F – 3A Annual Turnover


TENDER FOR 





F – 4 Proforma for Bank Guarantee for Earnest Money Deposit/ Bid Security 

F – 4A Proforma for Letter of Credit for Bid Security 

F – 5 Proforma for Letter of Authority 

F – 6 No Deviation Confirmation 

F – 7 Certificate 

F – 8 Proforma for Bank Guarantee for Performance Guarantee 

F – 9A Packing, Marking and Shipping Instructions 

(for ICB Tenders) 

F – 9B Packing, Marking and Shipping Instructions 

(for Domestic Tenders) 

Section – IX – Price Schedule / Schedule of Rates (SOR) – Volume II of II 

Section – X – Drawings – Volume II of II



TENDER FOR 




SECTION - IV 

SPECIAL CONDITIONS OF CONTRACT (SCC)


1.0 SCOPE OF SUPPLY 

2.0 DELIVERY BASIS 

3.0 COMPLETION SCHEDULE 

4.0 PAYMENT TERMS 

5.0 PRICE REDUCTION SCHEDULE 


TENDER FOR 




SECTION - IV 

SPECIAL CONDITIONS OF CONTRACT (SCC) 

C O N T E N T 

6.0 GENERAL INFORMATION – CONSIGNEE ADDRESS, PAYING AUTHORITY ETC. 

7.0 MISCELLANEOUS


TENDER FOR 




SECTION - IV 

SPECIAL CONDITIONS OF CONTRACT (SCC) 

The following articles shall supplement the Instructions to Bidders and General Conditions of 

Contract (Goods) for supply part of the contract and GCC (for procurement of works) for 

other than supply part of the Contract. In case any conflict between General Conditions of 

Contract and Special Conditions of Contract, the latter shall prevail to the extent applicable. 

1. Scope of Supply/ Work 

The scope of supply shall be as given at Material Requisition (Section-VI) and 

Price Schedule enclosed with this tender enquiry. 

The bids may be submitted for any of the following three OPTIONs depending 

upon the bidder’s eligibility. 

OPTION-I : Supply of bare Pipes at FOT Dispatch point for Indian Bidders/ 

FOB port of shipment for Foreign Bidders. 

OPTION-II : Coating in India of Bare Pipes issued by GAIL, Transportation 

of bare pipes to coating plant, coating of bare pipes, 

transportation of coated pipes to Designated Dump yard near 

Oduru and maintenance of Dump yard for 2 months beyond 

the contractual completion period or actual completion period, 

which ever is later. 

OPTION-III : Supply of Coated Pipes at designated Dump yard near Oduru 

and maintenance of Dump yard for 2 months beyond the 

contractual completion period or actual completion period, 

which ever is later. 

This tender evaluation shall be for the full quantity on L-1 basis under 

different option (the items have been defined as A, B & C in the Material 

Requisition). It may, however, be noted that 

Bare Pipe Manufacturers can quote either for Bare Pipe (Option-I) or 

for Coated Pipe (Option-III). In case of Option III, bidder can quote 

independently or with consortium arrangement. 

Coating Contractor can quote either for Coating & Transportation 

Work (Option-II) or for Coated Pipe (Option-III) with consortium 

arrangement only. 

Other requirements in respect of supply shall be as follows :- 

a) Pipes shall be ordered only to X-70 Grades. Intermediate grades shall 

not be acceptable. Higher grade pipe shall not be considered as a 

substitute for a pipe ordered without GAIL/ MECON prior approval. 

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TENDER FOR 




b) The manufacturer shall be required to establish and maintain quality 

assurance system in accordance with ISO:9001 or equivalent. GAIL/ 

MECON reserves the right to audit manufacturer’s quality system. 

c) Foreign Bidder may quote in any Foreign currency or Indian currency. 

d) Under Option-III, the foreign Bidder will be allowed to engage Indian 

Contractor for PE Coating works under consortium arrangement if so 

desired by the Bidder. 

e) GAIL is manufacturing PE compound-PB48A004 and coating contractor 

can opt for external coating of pipes available on the prevailing rate at 

the time of procurement. 

GAIL PE-compound can be issued from any place out of the five 

locations viz. Daman, Silvassa, Dadra, Malanpur (Gwailor) and 

Ghaziabad. Exact location shall be decided by GAIL at the time of 

issuing compound material. The transportation of compound material 

from the place decided by GAIL shall be in the scope of coating 

contractor. 

2. Delivery basis 

It shall be according to clause 15.2 of GCC. 

3. Completion Schedule 

The completion schedule shall be as given below :- 

Option Option Description Completion Schedule Effective Date of 

Start 

I Supply of Bare Pipes a) Domestic Bidder 

Delivery to start from 8 th 

week ex-works and 

complete within 12 weeks. 


Delivery within 8 weeks at 

port of exit. 

II Coating in India of 

Bare Pipes issued by 

GAIL, Transportation 

to Designated 

Dumpyard 

III Supply of Coated 

Pipes at designated 

Dumpyard 

Delivery of Coated Pipes to 

reach dumpyard from 4 th week 

and completed with 6 th weeks. 

Delivery of Coated Pipes to 

reach dumpyard from 12 th week 

and completed with 18 th weeks. 

Domestic/ Foreign Bidder 

Date of Issue of FOI 

From Date of Intimation 

by GAIL/ MECON of 

readiness of Bare Line 

Pipes for lifting from 

Manufacturer’s Works/ 

designated Indian Sea 

Port, for PE Coating 

Delivery Basis 

a) Domestic Bidder 

Loading of pipes on 

Trailer (Trailers shall 

be arranged by 

GAIL appointed 

Coating Contractor). 


FOB Port of exit 

FOT Site (Dumpyard) 

Date of Issue of FOI FOT Site (Dumpyard) 



4. Payment Terms 

4.1 For Bare Pipe (Option-I) 

4.1.1 For Foreign Bidder 

TENDER FOR 




100% of invoice amount shall be made through irrevocable L/C after receipt 

of pipe at designated sea port in India. All bank charges outside India shall be 

borne by the vendor and bank charges inside India will be to owner’s 

account. In case of confirmed L/C, confirmation charges are to be borne by 

the vendor. Payment shall be made against receipt of the following by the 

Employer/ Owner 

i) Invoice in triplicate 

ii) Inspection release note by Purchaser/ Consultant 

iii) Clean bill of Lading 

iv) Packing List 

v) Country of origin certificate 

vi) Final technical file as per Technical Specifications/ Material Requisition 

including all test certificates. 

vii) Despatch instructions/ clearance by Purchaser/ Consultant. 

viii) Certificate of confirmation that despatch is in accordance with agreed 

delivery schedule by Seller. 

ix) Documents as specified in the Technical Specifications/ Material 

Requisition, Volume-II of II of the Bid Document. 

x) Performance Bank Guarantee of 10% of Contract Value. 

4.1.2 For Indian Bidders 

4.1.2.1 100% of invoice amount shall be paid against receipt of following documents 

by Employer/ Owner once the material is inspected & accepted by Owner or 

his authorised representative and handed over to the coating contractor :- 


ii) Inspection Release note by Purchaser/ Consultant 

iii) GR/ LR 


v) Final technical file as per Technical Specifications/ Material Requisition 

including all test certificates 

vi) Indemnity bond for the total price of delivered items as per 

Attachment-II. 

vii) Performance Bank Guarantee of 10% of Contract Value. 

viii) Documentary proof of handing over of pipe to coating contractor. 



4.1.2.2 The contractor shall raise invoices on the basis of not less than one fortnight 

interval. 



TENDER FOR 




4.1.2.3 The payments to the Contractor will be released within a period 15 days from 

the date of receipt of the complete invoice duly certified by Employer/ 

Consultant as per the terms and conditions of the contract. 

4.2 For Coated Pipe (Option-III) 

4.2.1 For Indian Bidders 

4.2.1.1 90% of Contract Price will be paid progressively against receipt and 

acceptance of coated pipes at dumpyard by Purchaser/ Consultant against 

receipt of the following by Employer/ Owner :- 


ii) Inspection Release note by Purchaser/ Consultant 

iii) GR/ LR 


v) Final technical file as per Technical Specifications/ Material Requisition 

including all test certificates 

vi) Indemnity bond for the total price of delivered items as per 


vii) Performance Bank Guarantee of 10% of Contract Value. 

viii) Documents as specified in the Technical Specifications/ Material 


4.2.1.2 The Contractor shall raise invoices on the basis of not less than one fortnight 

interval. 

4.2.1.3 Balance 10% amount of total Contract Price shall be paid within 30 days after 

handing over of last pipe to pipe laying contractor. 

4.2.2 For Foreign Bidders 

4.2.2.1 90% of Contract Price will be paid progressively against receipt and 

acceptance of coated pipes at dumpyard by Purchaser/ Consultant against 

receipt of the following by Employer/ Owner :i) 

Invoice in triplicate 

ii) Inspection Release note issued by Purchaser/ Consultant at 

dumpyard. 

iii) Clean Bill of Lading. 

iv) Packing List duly endorsed by Consultant indicating receipt and 

acceptance of material at dumpyard. 

v) Country of origin certificate. 

vi) Proof of customs clearance including payment of Customs duty for 

import permitted in the Contract. 

vii) Final technical file as per Technical Specifications/ Material Requisition 

including all test certificates. 

viii) Performance Bank Guarantee of 10% of Contract Value. 





TENDER FOR 




4.2.2.2 Balance 10% amount of total Contract Price shall be paid within 30 days after 

handing over of last pipe to pipe laying contractor. 

4.3 For Coating & Transportation Work (Option-II) 

4.3.1 90% of Contract Price will be paid progressively against receipt and 

acceptance of finished pipes at dumpyard. The payment shall be released 

against receipt of following documents by the Employer/ Owner. :- 


ii) Owner/ Consultant’s Inspection Release Note 

iii) Packing List duly endorsed by Consultant indicating receipt and 

acceptance of the material at Dumpyard. 

iv) RR/ GR/ LR 

v) Indemnity Bon for the total price of the delivered items, as per 


vi) Performance Bank Guarantee of 10% of Contract Value. 

4.3.2 Balance 10% amount of total Contract Price shall be paid within 30 days after 

delivery of finished pipes by the Contractor to the laying Contractor and 

completion of all contractual obligation. 

4.3.3 The Contractor shall raise invoices on the basis of not less than one fortnight 

interval. 

4.3.4 The payments to the Contractor will normally be released within a period of 

15 days from the date of receipt of the complete invoice duly certified by 

Employer/ Consultant as per the terms and satisfying the conditions of the 

contract in all respect. 

4.4 The Invoice shall be made after adjusting the following (Applicable 

to Option-I, II & III) 

4.4.1 Cenvattable invoice is to be raised by the supplier, enabling the owner to 

claim the cenvat credit. 

4.4.2 PRS pursuant to GCC – Goods Clause 26.0, if applicable. 

4.4.3 Indian agents commission, if applicable. 

4.5 Mode of Payment 

4.5.1 Wherever possible payment will be released through E-payment as detailed in 

ITB clause 19. 



TENDER FOR 



4.5.2 Foreign Bidders (For Option-I only) 


Through an irrevocable Letter of Credit (L/C) to be established by Purchaser 

through an Indian Nationalised Bank within 30 days of acceptance of award 

by the Seller and its furnishing requisite Performance Bank Guarantee. L/C 

opening charges payable to the L/C opening bank shall be borne by the 

Purchaser. In case the Seller requires a confirmed L/C, the confirmation 

charges shall be borne by the Seller. Any other charges not specified herein 

shall be on Seller’s account. 

4.5.3 Deduction at Source 

4.5.3.1 Purchaser will release the payment to the Seller after effecting deductions as 

per applicable law in force. 

4.5.3.2 Purchaser will release payments to the Contractor after offsetting all dues to 

the Purchaser payable by the Contractor under the Contract. 

5. Price Reduction Schedule: 

5.1 Price reduction schedule for delayed delivery shall be as per Article-27 of 

GCC. 

5.2 Price reduction schedule on failure of pipe under field hydrotest and/ or 

during guarantee/ warranty period and/ or defect liability period as applicable 

shall be as follows (for pipe supplier) :- 

Pursuant to General Conditions of Contract as per Volume-I and clause 14 

(new) of the Technical Specification (No. MEC/TS/05/21/012D, Rev-0), owner 

shall be reimbursed by the successful bidders for any pipe supplied against this 

order that fails under field hydrostatic test and/ or during guarantee/ warranty 

period and/ or defect liability period as applicable, if such failure is caused by a 

defect in pipes which is outside the acceptance limits of the specifications. The 

reimbursement cost will be the landed cost of the defective pipes including all 

cost incurred upto delivery thereof at site and shall also include but not limited 

to cost of all duties, freight, insurance, labour, material, charges for cutting, 

removing, re-coating, replacement and relaying of defective pipeline including 

cost of incidental activities as well as losses suffered by GAIL. The recovery 

cost shall be calculated at actual but will be subject to the minimum values 

given below. Recovery shall be applied on the actual or minimum predetermined 

rate, whichever is higher. The minimum pre-determined rate shall 

not need any justifications. The minimum pre-determined reimbursement cost 

of each pipe shall be as under :- 

i) USD 55,000 (fifty five thousand US Dollars) for bidder quoting in foreign 

currency 

ii) Rs. 25,00,000/- ( Rs. twenty five lacs only) for bidder quoting in Indian 

Rupees. 



TENDER FOR 




The above cost shall be for each pipe, payable by the vendor to the Owner on 

demand without necessity of any proof of replacement/ reimbursement cost. 

Further, in case, the amount payable by the vendor to GAIL become more than 

what can be adjusted through price reduction, GAIL may recover at its 

discretion through deduction from any payment due or becomes due to the 

contractor or by encashing the Bank Guarantee(s) furnished by contractor, the 

unrecovered part of such payment will be paid by the contractor to GAIL within 

15 days of date of notification by GAIL to him. 

In the event of conflict between the stipulations of this article and anything 

contained in the Technical Specification (Material Requisition), the stipulations of 

this article shall govern. 

Necessary tests to establish cause of failure of pipes shall be carried out at 

Welding Research Institute, Trichi, India and shall be binding on the both GAIL 

and the pipe supplier. 

6. General Information relating to Consignee address, Banker’s Name, 

Paying Authority, Insurance Agent etc. : 

- Location & Address of project 

Consignee 

: Manager (C&P) 


NH – 5 Road, 

Near ONGC Base Complex, 

Lalacheruvu, 

Rajahmundry 

- Name 

Bankers 

& Address of the : 

a) For Indian Supplies : State Bank of India 

Main Branch, 

Kambala Tank, 

Rajahmundry, 

Code No. : 0904 

b) For imported supplies : State Bank of India 

CAG Branch, 

Jawahar Vihar Bhawan, 

STC, Building, Janpath 


- CST Number : KDA/08/03/1633 dated 28.11.1997 

- Local Sales Tax No. : KDA/08/03/2780 dated 28.11.1997 

- ECC No. : - 

- Paying Authority : 



TENDER FOR 




i) Indigenous : Manager (F&A) 


Rajahmundry 

ii) Imported : GM (F&A) 


16 Bhikaiji Cama Place, 

R.K. Puram, 

New Delhi – 110 066. 

Kind Attn.: Shri P. K. Jain 

E-mail : pj01050@gail.co.in 

Fax No.: 91-11-26185941Extn. 1050# 

- Name & Address of consignee 

for import at seaport/ airport 

of entry 

- Whether certificate for : Yes 

- 

availing concessional project 

rate of custom duty will be 

given. 

Can client issue C Form for : 

a) Concessional rate of CST : N/A 

b) Concessional rate of ST : N/A 

- Name of Address of insurance 

agency 

: Mr. U. V. Jadav, 

Manager (C&P) 


MMRDA Building, 2 nd Floor, 

Bandra Kurla Complex, 

Bandra (East) 

Mumbai – 400 051 

Ph No.: 0091-22-26592228/61/62 

E-mail : uv.jadhav@gail.co.in 

Fax No.: 0091-11-26591336/2373 

: M/s Oriental Insurance Co. Ltd., 

Divisional Office No. 6, 

Manjusa Building, 

2 nd Floor, 57, Nehru Place, 


Kind Attn: Mr. Rahul Dugal 

Sr. Divisional Manager 

Mobile: 09810903292 

Ms. Usha 

Asst. Divisional Manager 

Ph No.: 91-11-26435761 

91-11-26432320 

91-11-26433351 

Fax No.: 91-11-26435761 



TENDER FOR 




A) Indian Vendor : Policy No. 211600/21/11/206/000089 

dated 02.08.2005 

B) Foreign Vendor : Policy No. 211600/21/11/206/000090 

dated 02.08.2005 

- Preferred mode of despatch : Imports : Sea 

Domestic : By Road 

- Inspection agency for indigenous 

and imported items 

7. Miscellaneous 

: MECON Limited 

7.1 Where any portion of the General Conditions of Contract (Goods) for supply 

part of the contract and GCC (procurement of works) for other than supply 

part of contract is repugnant to or at variance with any provisions of the 

Special Conditions of Contract, unless a different intention appears, the 

provisions of the Special Conditions of Contract shall be deemed to over-ride 

the provisions of the General Conditions of Contract and shall be the extent of 

such repugnancy, or variations, prevail. 

7.2 Wherever it is mentioned in the specification that the Contractor shall perform 

certain work or provide certain facilities, it is understood that the Contractor 

shall do so at his cost and the Value of Contract shall be deemed to have 

include cost of such performance and provisions, so mentioned. 

7.3 The materials, design, and workmanship shall satisfy the relevant Standards, 

the Job Specifications contained herein and Codes referred to. Where the job 

specification stipulate requirements in addition to those contained in the 

standard codes and specifications, these additional requirements shall also be 

satisfied. 

7.4 In case of an irreconcilable conflict between Indian or other applicable 

standards, General Conditions of Contract, Special Conditions of Contract, 

Specification, Drawings or Schedule of Rates, the following shall prevail to the 

extent of such irreconcilable conflict in order of precedence : 

i) Letter of Award/ Purchase Order 

ii) Letter of Acceptance/ FOI alongwith Statement of Agreed Variations. 

iii) Schedule of Rates as enclosures to Letter of Award/ Purchase Order 

iv) Special Conditions of Contract 

v) Drawings 

vi) Technical/ Material Specifications 

vii) Instruction to Bidder 



TENDER FOR 




viii) General Conditions of Contract (Goods) for supply part of the contract 

and GCC (for procurement of works) for other than supply part of the 

contract. 

ix) Applicable standards as specified. 

x) Applicable standards not specified. 

7.5 It will be the Manufacturer’s responsibility to bring to the notice of Purchaser 

any irreconcilable conflict in the contract documents before starting the 

work(s) or making the supply with reference to which the conflict exists. 

7.6 In the absence of any Specifications covering any material, design of work(s) 

the same shall be performed/ supplies/ executed in accordance with Standard 

Engineering Practice as per the instructions/ directions of the Purchaser, 

which will be binding on the Manufacturer. 

7.7 Subsequent Price Change on Account of Technical/ Commercial Clarification 

and/ or Validity Extension 

Once quoted, the bidder shall not make any subsequent price changes, whether 

resulting or arising out of any technical/ commercial clarifications sought 

regarding the bid even if any deviation or exclusion may be specially stated in 

the bid. Such price changes shall render the bid liable for rejection. 

7.8 Deemed Export 

Deemed export benefits are not available and Indian bidder should furnish 

Prices without considering these benefits. 

7.9 Details From Plate And Pipe Manufacturer 

7.9.1 The pipe manufacturer shall provide documentary evidence regarding sourcing 

of plates for manufacturing pipes from at least two plate mills. 

7.9.2 Based on detailed schedule for supply of line pipe, a letter of comfort (LoC) shall 

be provided from the plate and pipe manufacturer mills by the bidders so that 

the commitment of plate and pipe manufacturing mill is known for technical 

qualification of the bidder for supply of line pipe. 

7.10 Transportation 

The following shall be read in conjunction with Article –17 of General Conditions 

of Contracts (Section –III) 

7.10.1 Under Option-II & III, transportation up to warehouse (dump site) shall be the 

responsibility of Indian as well as Foreign Bidder. 

7.10.2 In case of Domestic Bidders, under OPTION-I the loading of the pipes on trailer 

arranged by PE Coating Contractor shall be the responsibility of Domestic 

Bidder. 



TENDER FOR 




7.10.3 In case of order on FOB port of shipment basis on Foreign Bidders under 

Option-I, shipping arrangement from FOB Port of Shipment to destination (Sea 

Port, India) be made by Ministry of Shipping and Transport as per section-VIII 

F-9A (Packing, Marking & Shipping Specifications). 

7.11 Procurement of Steel Plates/ Coils 

7.11.1 Following steel plate/ coil manufacturers are acceptable for the procurement 

of steel plates/ coils to be used in the manufacture of line pipes. 

a) Thyssen Krupp, Germany 

b) Mannesmann Salzgitter Roehrenwerke, Germany 

c) Dillinger Huette, Germany 

d) Europipe, Germany 

e) Ilva (Riva Group), Italy 

f) Azovstal, Ukraine 

g) Posco, South Korea 

h) Voest Alpine, Austria 

i) Nippon Steel, Japan 

j) AHMSA (Altos Hornos de Mexico), Mexico 

k) Essar Steel, India 

l) Ispat Industries Ltd., India 

m) SAIL, Bokaro, India 

n) JSW Steel Ltd., India 

o) Lloyd Steel, India 

7.11.2 In case bidder proposes steel plate/ coil manufacturer(s) not covered in the 

above list, then the proposed steel plates/ coils manufacturer must meet the 

following criteria :- 

7.11.2.1 Steel plate/ coil manufacturer(s) must have manufactured and supplied in a 

single order, the steel plates/ coil of not less than 2500 MT meant for the 

production of line pipes conforming to API 5L (PSL-2) of the same or higher 

grade as required under present bid in last five years from the date of Bid 

submission. 

7.11.2.2 The steel plate/ coil manufacturer have manufactured plates/ coils 

conforming to API 5L (PSL-2) Grade X-70 or higher of same or higher wall 

thickness as required for line pipes under present bid. 

7.11.2.3 The steel plate/ coil manufacturer must have manufactured plates/ coils 

conforming to API 5L (PSL-2) which are equal or higher in terms of plate/ coil 

width (corresponding to pipe size) as required for line pipes under present 

bid. 

7.11.2.4 A letter of commitment from proposed steel plate/ coil manufacturer for 

supply of steel plates/ coils required for the manufacture of line pipes under 

present bid. 



TENDER FOR 




7.11.2.5 Confirmation regarding compliance with applicable requirements for steel 

plates/ coils specified in Technical Specifications/ Material Requisition of this 

Bid Document. 

a) Bidder must submit documentary evidence alongwith the bid, to 

substantiate the qualification criteria indicated above. In the absence 

of such documentary evidence, Owner/ Consultant reserve the right to 

reject the bid without making any reference to the bidder. 

b) The qualification of steel plate/ coil manufacturer(s) shall be assessed 

prior to price bid opening. 

c) Bidder’s offer shall be unconditional irrespective of the finally qualified 

steel plate/ coil manufacturer(s). 

7.12 PE Coating (For MR Option-II & III only) 

7.12.1 Quality Assurance/ Quality Control 

• Bidder shall include in his offer the Quality Assurance Programme 

containing the overall quality management and procedures, which is 

required to be adhered to during the execution of contract. After the 

award of the contract detailed quality assurance programme shall be 

prepared by the Bidder for the execution of contract for various works, 

which will be mutually discussed and agreed to. 

• The Bidder shall establish document and maintain an effective quality 

assurance system outlined in recognized codes. 

• Quality Assurance System plans/ procedures of the Bidder shall be 

furnished in the form of a QA manual. This document should cover 

details of the personnel responsible for the Quality Assurance, plans 

or procedures to be followed for quality control in respect of Design, 

Engineering, Procurement, Supply, Inspection, Testing and 

Commissioning. The quality assurance system should indicate 

origanisational approach of quality control and quality assurance of 

the construction activities, at all stages of work at manufacture’s 

works and dispatch of materials. 

• The Contractor shall adhere to the Quality Assurance Plan attached. 

7.12.2 Test Certificates 

• Bidder shall be required to submit recent test certificates for the 

material being used in works from the recognised laboratories. These 

certificates should indicate all properties of the materials as required 

in relevant IS Standards or international Standards. 

• Bidder shall also submit the test certificates with every batch material 

supplied which will be approved by Purchaser. Incase any test is to be 

carried out the same shall be got done in the approved laboratory at 

the cost of Bidder. 



7.13 Make of Materials 

TENDER FOR 




The raw materials required to be procured by the Bidder for completing 

supply under this contract shall be procured only from Owner approved 

vendors. Where the makes of materials are not indicated in the Bidding 

document, Bidder shall obtain prior approval of Owner/ Purchaser of such 

items of vendors/sub-vendors before placing order and for this shall furnish 

complete detail/ information to Owner/ Consultant well in advance. However, 

seeking such approval shall not be the basis for extension of delivery/ 

completion schedule. 

7.14 Following international inspection agencies are acceptable for mill 

qualification/ coating plant qualification. 

a) TUV, Germany 

b) DNV, Denmark 

c) Germenisher Lloyd, Germany 

d) AIB – VINCOTTE, Belgium 

e) Lloyds Register, UK 

f) Moody International, UK 

g) Velosi, Malaysia 

h) Bureau Veritas, France 

i) Gasuinee, Netherlands 

j) Advantice, UK 

7.15 Origin of Goods 

A certificate issued by relevant Chamber of Commerce to this effect shall 

form part of shipping documents. 

7.16 Despatch Instructions 

7.16.1 Seller shall obtain despatch clearance from the Purchaser prior to each 

despatch. Loading of pipes on the trailor arranged by coating contractor shall 

be considered as despatch. 

7.16.2 Copy of Inspection Release Certificate, Despatch Clearance and Statement 

showing the name of the vessel, description and weight of material and 

shipping marks etc. to be submitted alongwith the documents. 

7.17 Independent Seller 

It is expressly understood and agreed that Seller is an independent party and 

that neither the Seller/ its personnel are servants, agents or employees of 

Purchaser/ Consultant nor the Seller has any kind of interest in other sellers. 



7.18 Lien 

TENDER FOR 




Seller shall ensure that the Scope of Supply supplied under the Agreement 

shall be free from any claims of title/ liens from any third party. In the event 

of such claims by any party, Seller shall at his own cost defend, indemnify 

and hold harmless Purchaser or its authorised representative from such 

disputes of title/ liens, costs, consequences etc. 

7.19 Recovery of Customs Duty, Excise Duty and Sales Tax 

In case, the statutory variation entitles the Employer to recover the amount 

(irrespective of Contractual Delivery) such amount will be recovered from any 

bill of the Contractor, or in any manner which he considers fit, on 

enforcement of such variation, under intimation to the Contractor. 

7.20 Employer’s Right and Remedies 

7.21 Guarantee 

Without prejudice to Employer’s right and remedies under Agreement, if 

Contractor fails to commence delivery as per agreed schedule and/ or in 

reasonable opinion of the Employer, Contractor is not in a position to makeup 

the delay to meet the intended purpose, the Employer may terminate the 

Agreement in full or part at Contractor’s default and may get supplies from 

other sources at Contractor’s risk and cost. 

In partial modification to GCC (Goods) clause 20.0, it may be noted that 

Guarantee shall be twenty four (24) months starting from the date of handing 

over of last pipe to the coating contractor. 

7.22 Defect Liability Period 

7.23 Rejection 

In partial modification to GCC (Procurement of works) clause 80.0, it may be 

noted that Defect Liability Period shall be twenty four (24) months starting 

from the date of handing over of last pipe to the erection contractor. 

7.23.1 Any materials/ goods covered under scope of supply, which during the 

process of inspection by Employer/ Appointed third party, at any stage prior 

to despatch or at warehouse, is found not conforming to the requirements/ 

specifications of the Purchase Requisition/ Order, shall be liable for rejection. 

7.23.2 Contractor shall be responsible and liable for immediate replacement of such 

material with acceptable material at no extra cost or impact on the delivery 

schedule to Employer. 



7.24 Limitation of Liability 

TENDER FOR 




Notwithstanding anything contrary contained herein, the aggregate total 

liability of Contractor under the Contract or otherwise shall be limited to 

100% of contract value. However, neither party shall be liable to the other 

party for any indirect and consequential damage, loss of profits or loss of 

production except compensation by successful bidder to Employer on failure 

of pipe under field hydrotest or during defect liability period. 

7.25 Insurance (For Option-II & III) 

7.25.1 Contractor shall, at his own expense arrange, secure and maintain insurance 

as may be necessary with reputable insurance companies to the satisfaction 

of the Employer. Bidder’s failure in this regard shall not relieve him of any of 

this responsibilities and obligations under Contract. The Contractor will insure 

the Goods for its full replacement value till the coated pipes are handed over 

to erection contractor. 

7.25.2 Employer will be co-insured in the Policy. 

7.25.3 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. 

7.25.4 The Contractor shall take immediate step to lodge claims with its insurer and 

arrange to make good or immediate replacement of damaged/ lost/ short 

receipt material without waiting for insurance claim settlement. 

7.25.5 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. 

7.25.6 Insurance for Free Issue Material (For MR Option-II Only) 

Contractor shall at his own expense arrange, secure and maintain insurance 

cover of Rs. 14 crores for owner supplied free issue materials during entire 

tenure of Contractor’s custody till the material is handed over back to owner 

as defined in tender document. 

Contractor’s quoted price shall be inclusive of all costs on account of 

insurance liabilities covered under the contract. Contractor to note that the 

beneficiary of insurance cover shall be GAIL (India) Limited. 

7.26 Governing Law 

Laws of India will govern the Contract and Delhi courts will have exclusive 

jurisdiction on all matters related to Contract. 



7.27 Bonus Clause 

TENDER FOR 




The Bonus Clause 27.3 of GCC (Procurement of Works) is not applicable in 

the instant tender. 

7.28 Quality Assurance/ Quality Control 

7.28.1 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. 

7.28.2 The Contractor shall establish document and maintain an effective quality 

assurance system outlined in recognized codes. 

7.28.3 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/ site as deemed necessary for quality assurance. 

7.29 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. 


D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Attachment-I & II.doc 

ATTACHMENT-I TO SCC 

PERFORMANCE EVALUATION 

ENCLOSURE-IV 

(Bid Document No. 05/51/23J8(PART-C)/GAIL/012A)

2.0 ANNEXURE TO SCC

i) Project/ Work Center : 

ii) Order/ Contract No. & Date : 

iii) Brief Description of Items Works/ : 

Assignment 

iv) Order/ Contract Value (Rs.) : 

v) Name of Vendor/ Contractor/ : 

Consultant 

vi) Contracted Delivery/ Completion : 

Schedule 

vii) Actual Delivery/ Completion Date : 

Performance 

Parameter 

PERFORMANCE RATING DATA SHEET 

(FOR PROJECTS/ CONSULTANCY JOBS) 

Delivery/ 

Completion 

Performance 

Quality 

Performance 

Reliability 

Performance 

Total 

Maximum Marks 40 40 20 100 

Marks Allocated (*) 

Remarks (if any) 

PERFORMANCE RATING (**) 

Note: 

(*) Allocation of marks would be as per enclosed instructions 

(**) Performance rating shall be classified as under : 

Sl. Range 

Rating Signature of 

No. (Marks) 

Authorised Signatory : 

1. 60 & below POOR 

2. 61 – 75 FAIR Name : 

3. 76 – 90 GOOD Designation : 

4. More than 90 VERY GOOD 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Attachment-I & II.doc Page 1 of 6

1.0 Marks are to be allocated as under 

1.1 Delivery/ Completion Performance 40 marks 

Delivery Period/ Completion 

Schedule 

Delay in Weeks Marks 

a) Upto 3 months Before CDD 40 

Delay upto 4 weeks 35 





More than 16 weeks 0 

b) Above 3 months Before CDD 40 








1.2 Quality Performance 40 marks 

For Normal Cases : No Defects/ No Deviation/ No Failure : 40 marks 

i) Rejection/ Defects Marks to be allocated on prorata 

basis for acceptable quantity as 

compared to total quantity for 

ii) When Quality failure 

endanger system integration 

and safety of the system 

normal cases 

Failure of severe nature 

- Moderate nature 

- Low severe nature 

iii) Number of deviations a) No Deviation 

b) No. of Deviations ≤ 2 

c) No. of Deviations > 2 

10 marks 

0 marks 

5 marks 

10-25 marks 

5 marks 

2 marks 

0 marks 


1.3 Reliability Performance 20 marks 

A) For Works/ Contracts 

i) Submission of order acceptance, agreement, PBG, Drawings and 

other documents within time 

4 marks 

ii) Mobilisation of resources as per Contract and in time 4 marks 

iii) Liquidation of Check-list points 4 marks 

iv) Compliance to statutory and HS&E requirements 

Or 

Reliability of Estimates/ Design/ Drawing etc. in case of 

Consultancy Jobs 

4 marks 

v) Timely submission of estimates and other documents for extra, 

substituted & AHR items 

4 marks 

B) For Supplies 

i) Submission of order acceptance, PBG, Drawings and other 

documents within time 

ii) Attending complaints and requests for after sales service/ 

warranty repairs and/ or query/ advice (upto the evaluation 

period) 

iii) Response to various correspondence and conformance to 

standards like ISO 

iv) Submission of all required documents including Test Certificates 

at the time of supply 

5 marks 

5 marks 

5 marks 

5 marks 


PERFORMANCE RATING DATA SHEET (FOR O&M) 

i) Location : 

ii) Order/ Contract No. & Date : 

iii) Brief Description of Items Works/ : 

Assignment 

iv) Order/ Contract Value (Rs.) : 

v) Name of Vendor/ Contractor/ : 

Consultant 

vi) Contracted Delivery/ Completion : 

Schedule 

vii) Actual Delivery/ Completion Date : 

Performance 

Parameter 

Delivery/ 

Completion 

Performance 

Quality 

Performance 

Reliability 

Performance 

Total 

Maximum Marks 40 40 20 100 

Marks Allocated (*) 

Remarks (if any) 

PERFORMANCE RATING (**) 

Note: 

(*) Allocation of marks would be as per enclosed instructions 

(**) Performance rating shall be classified as under : 

Sl. Range 

Rating Signature of 

No. (Marks) 

Authorised Signatory : 

1. 60 & below POOR 

2. 61 – 75 FAIR Name : 

3. 76 – 90 GOOD Designation : 

4. More than 90 VERY GOOD 


1.0 Marks are to be allocated as under 

1.1 Delivery/ Completion Performance 40 marks 

Delivery Period/ Completion 

Schedule 

Delay in Weeks Marks 

a) Upto 3 months Before CDD 40 







b) Above 3 months Before CDD 40 








1.2 Quality Performance 40 marks 

For Normal Cases : No Defects/ No Deviation/ No Failure : 40 marks 

i) Rejection/ Defects Marks to be allocated on prorata 

basis for acceptable quantity as 

compared to total quantity for 

ii) When Quality failure 

endanger system integration 

and safety of the system 

normal cases 

Failure of severe nature 

- Moderate nature 

- Low severe nature 

iii) Number of deviations a) No Deviation 

b) No. of Deviations ≤ 2 

c) No. of Deviations > 2 

10 marks 

0 marks 

5 marks 

10-25 marks 

5 marks 

2 marks 

0 marks 


1.3 Reliability Performance 20 marks 

A) For Works/ Contracts 

i) Submission of order acceptance, agreement, PBG, Drawings and 

other documents within time 

4 marks 

ii) Mobilisation of resources as per Contract and in time 4 marks 

iii) Liquidation of Check-list points 4 marks 

iv) Compliance to statutory and HS&E requirements 

Or 

Reliability of Estimates/ Design/ Drawing etc. in case of 

Consultancy Jobs 

4 marks 

v) Timely submission of estimates and other documents for extra, 

substituted & AHR items 

4 marks 

B) For Supplies 

i) Submission of order acceptance, PBG, Drawings and other 

documents within time 

ii) Attending complaints and requests for after sales service/ 

warranty repairs and/ or query/ advice (upto the evaluation 

period) 

iii) Response to various correspondence and conformance to 

standards like ISO 

iv) Submission of all required documents including Test Certificates 

at the time of supply 

5 marks 

5 marks 

5 marks 

5 marks 



TENDER FOR 





SECTION – V 

BRIEF SUMMARY OF AGREED 

TERMS & CONDITIONS (Commercial) 

REFER VOLUME-I OF II


TENDER FOR 





SECTION – VI 

MATERIAL REQUISITION 

AND 

TECHNICAL SPECIFICATION


TENDER FOR 





MATERIAL REQUISITION


TENDER FOR 




SECTION-VI 


(MR No. : MEC/23J8(PART-C)/05/21/M/001/S012A) 

Project : NATURAL GAS SUPPLY PIPELINE TO IPPs IN K.G. BASIN 

Client : GAIL (India) Limited 

Tender No. : 05/51/23J8(PART-C)/GAIL/012A 

OPTION-I : 

Items : Bare Line Pipes 

MR 

Item 

No. 


(m) 

Line Pipes as per API 5L, March,2004 (43 rd edition), PSL-2 

and Technical Specification No. MEC/TS/05/21/012D, 

Rev-0 

18” Line Pipe 

Pipe Size (OD) W.T. Ends Std./ Grade 

Inch (mm) (mm) 

Code 

A 18”(457.0) 6.4 PE API 5L X-70 22,700 

B 18”(457.0) 8.7 PE API 5L X-70 6,000 

C 18”(457.0) 10.3 PE API 5L X-70 2,800 

OPTION-II : 

Items : PE Coating of Bare Line Pipes and Transportation 

MR 

Item 

No. 

Sl. 

No. 

Total 31,500 


(m) 

PE Coating as per Technical Input, Technical Specification 

No. MEC/S/05/62/014, Rev-2 and its Amendment-I 


Pipe Size (OD) W.T. Ends Std./ Grade Finish 


Code 

A A 18”(457.0) 6.4 PE API 5L X-70 Coated 22,700 

B 

C 

B1 18”(457.0) 8.7 PE API 5L X-70 Coated 5,900 

B2 18”(457.0) 8.7 PE API 5L X-70 Uncoated 100 

C1 18”(457.0) 10.3 PE API 5L X-70 Coated 2,600 

C2 18”(457.0) 10.3 PE API 5L X-70 Uncoated 200 

Total 31,500 

* Designated Indian Sea Port/ Indian Pipe Manufacturer’s Works 

Designated 

“Place of Issue 

of Bare Line 

Pipes” 

* 

Manufacturing 

Process 

(EW/ SAW) 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Vol-II of II-(23J8) - Bare-Coated Line Pipes-R2.doc Page 1 of 2 

* 

Bidder to indicate 

Designated 

“Place of 

Delivery of 

Coated 

Pipe” 

Dump Yard near Oduru 

(Rajahmundry – Andhra Pradesh)


TENDER FOR 




SECTION-VI 


(MR No. : MEC/23J8(PART-C)/05/21/M/001/S012A) 

Project : NATURAL GAS SUPPLY PIPELINE TO IPPs IN K.G. BASIN 

Client : GAIL (India) Limited 

Tender No. : 05/51/23J8(PART-C)/GAIL/012A 

OPTION-III : 

Items : PE Coated Line Pipes 

MR 

Item 

No. 

Sl. 

No. 


(m) 

Line Pipes as per API 5L, March,2004 (43 rd Edition), PSL-2 

and Technical Specification No. MEC/TS/05/21/012D, Rev- 

0 and PE Coating as per Technical Input, Technical 

Specification 

Amendment-I 


No. MEC/S/05/62/014, Rev-2 and its 

Pipe Size (OD) W.T. Ends Std./ Grade Finish 


Code 

A A 18”(457.0) 6.4 PE API 5L X-70 Coated 22,700 

B 

C 

B1 18”(457.0) 8.7 PE API 5L X-70 Coated 5,900 

B2 18”(457.0) 8.7 PE API 5L X-70 Uncoated 100 

C1 18”(457.0) 10.3 PE API 5L X-70 Coated 2,600 

C2 18”(457.0) 10.3 PE API 5L X-70 Uncoated 200 

Total 31,500 

LEGEND 

WT = Wall Thickness 

PE = Plain End (Ends shall be bevelled as per API 5L) 

Manufacturing 

Process 

(EW/ SAW) 

Designated 

“Place of 

Delivery of 

Coated 

Pipe” 

Note: 

1) Under Option-II and Option-III, the transportation, unloading & storing of PE 

Coated/ Uncoated Pipes at designated Dumpyard is included in Bidder’s scope. Land 

acquisition and dumpyard development shall also be in bidder’s scope. 

2) Under Option-I, the Indian PE Coating Contractor shall receive the delivery of bare 

pipes either at the works of Indian Pipe Manufacturer or at one of the designated 

Indian Sea Ports, for transportation to his PE Coating Plant. 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Vol-II of II-(23J8) - Bare-Coated Line Pipes-R2.doc Page 2 of 2 

Bidder to indicate 

Dump Yard near Oduru (Rajahmundry – 

Andhra Pradesh)


TENDER FOR 





TECHNICAL SPECIFICATION

OIL & GAS PIPELINE SBU 

Long Distance Pipe Line Section 


DELHI – 110 092 

TECHNICAL SPECIFICATION FOR 

LINEPIPE 

(ONSHORE) 

SPECIFICATION NO.: MEC/TS/05/21/012D, Rev-0 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\TS for Line pipe (012D).doc


Delhi 

LONG DISTANCE 

PIPELINE SECTION 

TECHNICAL SPECIFICATION 

FOR LINEPIPE (ON SHORE) 

TECHNICAL SPECIFICATION NO. : MEC/TS/05/21/012D REV-0 Page 1 of 46 


D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\TS for Line pipe (012D).doc 

C O N T E N T S 

1.0 SCOPE 

2.0 REFERENCES 

5.0 PROCESS OF MANUFACTURE AND MATERIAL 

6.0 MATERIAL REQUIREMENTS 

7.0 DIMENSIONS, WEIGHTS, LENGTHS, DEFECTS, AND END FINISHES 

9.0 INSPECTION AND TESTING 

10.0 MARKING 

11.0 COATING AND PROTECTION 

12.0 DOCUMENTS 

13.0 PIPE LOADING 

14.0(New) INSPECTION OF FIELD TEST AND WARRANTY 

APPENDIX-B : REPAIR OF DEFECTS BY WELDING (NORMATIVE) 

APPENDIX-C : REPAIR WELDING PROCEDURE (NORMATIVE) 

APPENDIX-F : SUPPLEMENTARY REQUIREMENTS (NORMATIVE) 

SR-5 : FRACTURE TOUGHNESS TESTING (CHARPY V-NOTCH) 

SR-6 : DROP WEIGHT TEAR TESTING (DWTT) ON WELDED PIPE 

SR-17 : NON DESTRUCTIVE INSPECTION OF WELDS IN ELECTRIC WELDED PIPES AND 

LASER WELDED PIPES 

SR-19 : ADDITIONAL FRACTURE TOUGHNESS REQUIREMENTS (TRANSVERSE CHARPY V- 

NOTCH) FOR PSL 2 PIPE 

APPENDIX-H : PURCHASER INSPECTION (NORMATIVE) 

ANNEXURE-I (NEW) : MANUFACTURING PROCEDURE SPECIFICATION 

ANNEXURE-II (NEW) : FIRST DAY PRODUCTION TESTS 

ANNEXURE-III (NEW) : INFORMATION TO BE FURNISHED AT THE TIME OF BIDDING 

FIGURE : 6.2.6.1 

FIGURE : 6.2.6.2(a) 

FIGURE : 6.2.6.2(b) 

FIGURE : 6.2.7 

FIGURE : 7.8.3


Delhi 

LONG DISTANCE 





Prepared by Checked by Approved by 



Delhi 

LONG DISTANCE 





1.0 SCOPE 

1.1 Purpose and Coverage 

This specification establishes the minimum requirements for the manufacture of 

Seamless, Electric Welded and Submerged Arc Welded Steel line pipes in accordance 

with the requirements of API (American Petroleum Institute) Specification 5L, Forty Third 

Edition, March, 2004 and makes restrictive amendments/ supplements to aforesaid API 

Spec. 5L. Unless modified (amended and/ or supplemented) and referred by this 

Specification, the requirements of API Spec. 5L shall be valid. 

The sections, paragraphs and appendices contained herein have the same numbering as 

that of API Spec. 5L, in order to facilitate reference. Additional requirements, which are 

not specified in API Spec. 5L, have also been numbered and marked as "(New)". 

The coverage by this specification is limited to line pipe to be used in onshore pipelines 

transporting non-sour hydrocarbons in liquid or gaseous phase. 

The Manufacturer shall have a valid license to use API Monogram for Manufacturing of 

line pipe in accordance with the requirements of API Spec. 5L, Forty Third Edition, 

March, 2004 

1.2 Product Specification Level (PSL) 

1.3 Grades 

Line pipes supplied to this specification shall conform to Product Specification 

Level PSL-2. 

2.0 REFERENCES 

This specification is applicable to PSL-2 line pipes of grade B through X70. 

The latest edition of following additional references are included in this Specification : 

ASTM 

ASTM E 92 : Test Method for Vickers Hardness of Metallic Materials. 

ASTM E 112 : Standard Test Methods for Determining Average Grain Size. 

BS 

BS 5996 : Specification for the Acceptance Level for Internal Imperfection in 

Steel Plate, Strip and Wide Flats based on Ultrasonic Testing. 



Delhi 

LONG DISTANCE 





5.0 PROCESS OF MANUFACTURE AND MATERIAL 

5.1 Process of Manufacture 

Line pipe furnished to this Specification shall be from steel produced in basic oxygen or 

electric arc furnace. The steel used for Manufacture of pipes shall be fully killed and fine 

grained with a grain size of ASTM 7 or finer as per ASTM E 112. Steel shall be made by 

continuous casting only. 

5.1.1 Seamless Process 

Cold sizing and straightening of pipe is permissible provided the total strain does not 

exceed 3.0%. 

5.1.2 Welding Processes 

5.1.2.1.1 Continuous Welding 

Not acceptable. 

5.1.2.2.1 Submerged Arc Welding (SAW) 

All weld shall be done by automatic welding. 

5.1.2.2.2 Gas Metal Arc Welding (GMAW) 

This process is only acceptable for tack welding pipes which will subsequently be 

welded by the SAW process. 

5.1.3 Types of Pipes 

5.1.3.2 Continuous Welded Pipe 


5.1.3.3 Electric Welded Pipe 

Only EW pipe manufactured from hot rolled coil is acceptable. 

A normalising heat treatment of the weld and heat affected zone shall always be 

carried out, irrespective of grade and chemical composition. Full body normalising is 

also acceptable. 



Delhi 

LONG DISTANCE 





5.1.3.3.2 PSL 2 Electric Welded Pipe 

Electric welding shall be performed with a minimum welder frequency of 200 kHz. The 

welding system shall have an integrated control in which following data, as a minimum 

shall be monitored. 

• Time 

• Welding Speed 

• Current and Voltage 

• Heat Treatment Temperature 

The weld seam and the entire heat affected zone (HAZ) shall receive a normalising heat 

treatment in order to control the structure so that no untempered martensite remain in 

the weld seam and the HAZ and the mechanical properties of heat treated zone is 

approximately that of the parent metal. 

5.1.3.5 Longitudinal Seam Submerged Arc Welded Pipe 

The full length of the weld seam shall be made by automatic submerged arc welding, 

using run-on and run-off tabs. The welding procedure shall be approved by the 

Purchaser. Welding shall be checked at regular intervals to ensure that current, 

voltage and travel speed remain within the ranges of the welding procedure. 

5.1.3.6 Gas Metal Arc Welded Pipe 


5.1.3.7 Combination GMAW and SAW pipe. 

GMAW is only acceptable for making a continuous tack weld in SAW pipe. This pipe is 

further considered as SAW pipe. 

5.1.3.8 Double Seam SAW pipe 


5.1.3.9 Double Seam GMAW Pipe 


5.1.3.10 Double Seam Combination GMAW and SAW pipe 




Delhi 

LONG DISTANCE 





5.1.3.11 Helical Seam Submerged Arc Welded Pipe (HSAW) 

HSAW is only acceptable if it meets all the requirements for SAW welding and 

inspection indicated in this specification. 

Each edge of the strip shall be ultrasonically examined for laminations over a width of 

25mm along its longitudinal edges prior to welding. 

Welds shall be inspected on their full length by ultrasonic method as per section 

9.8.5.1. 

The transition between parent metal and weld deposit shall not display undercutting. 

The over thickness of the weld deposit shall not exceed 2% for the pipe wall thickness 

is lesser than 15mm. 

5.1.4 Types of Seam Welds 

5.1.4.5 Skelp End Weld 


5.1.4.6 Jointer Weld 


5.1.4.7 Tack Weld 

Tack welds shall be made in accordance with a qualified tack welding procedure using 

automatic SAW, GMAW, gas shielded FCAW, or shielded metal arc welding using low 

hydrogen electrodes. When low hydrogen electrodes are used the diffusible hydrogen 

content of the resulting weld metal shall not exceed 10ml/ 100g of deposited metal. 

5.2 Cold Expansion 

EW pipe shall not be cold expanded. 

LSAW Pipes shall be mechanically cold expanded for full length. The expansion measured 

on the circumference shall range between 0.8 to 1.5% of the value measured before the 

expansion. The expansion shall be measured and recorded for one out of every 50 pipes. 



Delhi 

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5.4 Heat Treatment 

Seamless pipe shall be furnished in the hot formed, normalized and tempered or 

quenched and tempered condition. For hot formed pipe, the finishing temperature 

shall be greater than 780°C. Pipe finished at a lower temperature than 780°C shall be 

subjected to a further normalizing heat treatment with a minimum holding time of 30 

minutes. 

For Welded Pipes, the pipes shall be produced from skelp which shall be quenched and 

tempered or controlled rolled or combined controlled rolled and accelerated cooled to 

impart uniformly fine ferritic grain structure to the finished steel. Other types of heat 

treatment shall be agreed upon between Purchaser and Manufacturer. 

The heat treating process shall be performed in accordance with a documented 

procedure. The Manufacturer shall also establish and follow procedures for 

maintaining heat and/or lot identity. 

6.0 MATERIAL REQUIREMENTS 

6.1 Chemical Properties 

6.1.1 Chemical Composition 

The chemical composition of each heat of steel on product analysis shall be in 

accordance with Table-2B and notes given below. Table-2B of API Spec. 5L is cancelled. 

For each order the Manufacturer shall propose a chemical composition for the pipe to 

be supplied. This composition shall be contained in the manufacturing procedure 

specification and, as determined by product analysis, shall comply with the maximum 

allowable limits specified in Table-2B. The limitations on heat and product analysis 

are those agreed following acceptance of the manufacturing procedure specification 

(Annexure-I). 



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Element 

Table-2B : PSL 2 - Chemical requirements for Heat and Product Analysis 


SMLS 

Maximum Permitted Alloy Content, Wt. % 

EW SAW 

C 0.16 0.15 0.16 

Mn 1.60 

1.5 (For Gr. B to X-52) 

1.6 (For Gr. X-56 to X-70) 

1.5 (For Gr. B to X-52) 

1.6 (For Gr. X-56 to X-70) 

Si 0.45 0.45 0.45 

P 0.02 0.02 0.02 

S 0.01 0.010 0.015 

V 0.08 0.05 0.08 

Nb 0.05 0.05 0.05 

Ti 0.04 0.1 0.1 

Cr 0.20 0.20 0.20 

Mo 0.25 0.08 0.10 

Ni 0.30 0.20 0.20 

Cu 0.25 0.35 0.35 

Al 0.06 0.07 0.07 

N 0.012 0.012 0.012 

B 0.0005 0.0005 0.0005 

Ca 0.006 0.006 0.006 

Note: g(New) 

1. V+Nb+Ti shall not exceed 0.15%. 

2. Cu+Ni shall not exceed 0.4%. 

3. The AL/N ratio shall not be less than 2:1 

NOTE: h (New) 

If alloying elements other than those specified in Table 2B above are added to the steel, 

the limits of the additional components shall be agreed with the Purchaser. 

6.1.2 Elements Analysed 

For heat analysis and product analysis, all the elements listed in Table-2B of this 

specification shall be analysed and reported, even if those are not purposely added but 

are present as residuals only.


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6.1.3 Carbon equivalent (PSL 2 Only) 

6.1.3.1 Calculations of Carbon Equivalent 

Boron content shall be considered in CE (Pcm) formula even if it is less than 0.001%. 

6.1.3.2 Maximum Carbon Equivalent 

For pipes of all grades,, size and wall thickness, carbon equivalent shall comply the 

following limits: 

CE (Pcm) ≤ 0.20 

CE (IIW) ≤ 0.40 

6.2 Mechanical Properties 

6.2.1 Tensile Properties 

The ratio between the measured value of the yield strength (YS) at 0.5% elongation 

of the gauge length as determined by an extensometer and ultimate tensile strength 

(UTS) for the body of each test pipe (product pipe) on which YS and UTS are 

determined shall not exceed 0.85 for grades X60 or lower; for grades X65 to X70, the 

same ratio shall not exceed 0.90. 

The ratio between yield strength and ultimate tensile strength of finished pipe shall 

be < 0.85 for grade X-60. 

The ratio between yield strength and ultimate tensile strength of finished pipe shall 

be < 0.90 for grades X-65 and X-70. 

The actual yield strength shall be as close as possible to the specified minimum yield 

strength (SMYS) but in no case it shall exceed the limits specified here under: 

API Spec. 5L Grade Permissible in excess of SMYS, psi (Mpa) 

Upto X-46 19,000 (131) 

X-46 and above 22,000 (152) 

Table 3B of API Spec. 5L stands modified accordingly. 

The minimum elongation of base metal shall be determined in accordance with the 

formula given in foot note (a) of Table-3B and shall comply with the minimum values of 

API Spec. 5L Appendix D. However elongation in no case shall be less than 20%. API 

Spec. 5L Appendix D stands modified accordingly. 

The ultimate tensile strength of the weld shall be equal to or better than the specified 

minimum tensile strength of the base metal. 



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6.2.5 Fracture Toughness Tests 

6.2.5.2 Charpy Impact Tests for PSL 2 

For pipes of all grades and wall thicknesses, Charpy V-notch impact test in accordance 

with SR5 (Appendix-F) shall be performed. 

e. Additionally, for SAW pipes of all sizes and specified wall thicknesses,additional fracture 

(New) toughness requirements as per Supplementary Requirements SR 19 of API Spec. 5L and 

as modified in this specification shall be applicable for body, weld and heat affected zone. 

6.2.5.3 Supplementary Fracture Toughness Tests 

For EW Pipes 

For pipe sizes 16 and larger, Drop Weight Tear Test in accordance with Supplementary 

Requirements SR 6 of API Spec. 5L and as modified herein shall also be performed. 

For SAW Pipes 

Wherever line pipes are specified for hydrocarban service in gaseous phase and High 

Vapour Pressure (HVP) service in Purchase Order, Drop Weight Tear Test in 

accordance with Supplementary Requirements SR 6 of API Spec. 5L and as modified 

in this specification shall be also performed for all pipe size, grade and wall thickness. 

6.2.6 Metallographic Examination 

6.2.6.1 For EW Pipes 

(New) 

A test specimen for Metallographic & hardness examination shall be taken transverse to 

the weld, from one finished pipe from each lot of 50 pipes per heat or at least once per 

working shift (12 hours maximum) which ever is occurring more frequently and 

whenever changes in grade, diameter or wall thickness are made or when significant 

excursions from operating heat treatment conditions are encountered. The specimen 

shall be suitably ground, polished and etched to reveal the microstructure. The specimen 

shall be visually examined using adequate magnification to provide evidence that heat 

treatment of weld zone is adequate and there is no untempered martensite left. In case 

defects are observed, it will become a cause of revaluation of welding parameters and 

heat treatment as deemed necessary by Purchaser's Representative. 

For SAW Pipes 

A test specimen for Metallographic & hardness examination shall be taken transverse to 

the longitudinal weld, from one finished pipe from each lot of 50 pipes per heat or at 

least once per operating shift (12 hours maximum) which ever is occurring more 



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frequently and whenever changes in grade, diameter or wall thickness are made or 

whenever significant excursions from operating heat treatment conditions are 

encountered. The specimen extraction shall be as per Fig. 6.2.6.1 of this specification. 

The specimen shall be suitably ground, polished and etched to reveal the microstructure. 

The specimen shall be visually examined using a minimum 10X magnification to provide 

evidence that proper fusion has been obtained for the full thickness, and there is proper 

interpretation of passes, their alignment and texture of weld zone. In case defects are 

observed, it will become a cause of revaluation of welding parameters and heat 

treatment as deemed necessary by Purchaser's Representative. 

6.2.6.2 For EW Pipes 

(New) 

Vickers hardness tests shall be carried out on each specimen taken for macroscopic 

examination in accordance with ASTM E-92, at locations indicated in figure 6.2.6.2 (a). 

The resulting Vickers hardness value at any point shall not exceed 248 HV10. The 

maximum difference in hardness between the base material and any reading taken on 

the weld or heat affected zone shall be less than 80 HV10. Modalities of retest shall be in 

accordance with para 9.12.2 of API Spec. 5L. 

For SAW Pipes 

Vickers hardness tests shall be carried out on each specimen taken for metallographic 

examination in accordance with ASTM E-92, at locations indicated in figure 6.2.6.2(b) 

this specification. Indentation in the Heat Affected Zone shall start as close to the fusion 

line as possible. The resulting Vickers hardness value at any point shall not exceed 248 

HV10. Modalities of retest shall be in accordance with para 9.12.2 of API Spec. 5L. 

6.2.7 Reverse Bend Test (For EW Pipes only) 

(New) 

6.2.7.1 Reverse bend test shall be executed with the same number of tests and retests 

(New) specified for flattening tests in para 9.3.2 of API Spec. 5L. Ring Specimen, 100mm to 

115mm wide, taken from the pipe, shall be reverse bend tested according to the 

procedure given below and Fig. 6.2.7. 

6.2.7.2 Selection of Mandrel 

(New) 

The reverse bend test shall be carried out with a mandrel, whose radius (R), or width (A) 

shall be calculated for any combination of diameter, wall thickness and grade with the 

following formula. 



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1.4 (D-t)t 

A = 2R = ------------------------ - t 

e (D-2t) - 1.4t 

Where 

D - Outside diameter of pipe, mm 

t - Wall thickness of pipe, mm 

1.4 - Peaking factor 

e - Strain 

Minimum values of è' shall be as follows : 

Grades of Steel Min è' value 

Gr.B 0.1425 

X-42 0.1375 

X-46 0.1325 

X-52 0.1250 

X-60 0.1125 

X-65 0.1100 

X-70 0.1075 

6.2.7.3 Procedure 

(New) 

The Mandrel shall be plunged into the specimen, with the weld in contact with the 

mandrel, to such a depth that the angle of engagement between mandrel and specimen 

reaches 60° (see Fig. 6.2.7). If the combination of diameter and wall thickness of pipe, 

and radius of mandrel is such that the angle of engagement does not reach 60° the 

mandrel shall be plunged into the specimen until opposite walls of the specimen meet. 

6.2.7.4 Acceptance Criteria 

(New) 

A specimen which fractures completely prior to the specified engagement of mandrel and 

specimen, or which reveals cracks or ruptures in the weld or heat affected zone longer 

than 4mm, shall be rejected. Cracks less than 6mm long at the edges of the specimen 

shall not be cause for rejection. 

7.0 DIMENSIONS, WEIGHTS, LENGTHS, DEFECTS, AND END FINISHES 

7.1 Measuring equipment for inspection and testing shall be selected such that it has a 

resolution and accuracy at least five times (5X) finer than the tolerance of the 

parameter being measured. Similarly, standards against which a piece of equipment 

is calibrated shall be at least five times as accurate as the equipment being 

calibrated. 



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7.2 Diameter 

Only measuring equipment which can be demonstrated to have been previously 

calibrated satisfactorily and still be within its documented calibration period (interval) 

shall be used for inspection and testing. 

Note: These requirements apply to all inspections and tests performed to verify 

compliance with this specification (not only dimensions and weights) 

Pipe Body 

The outside diameter of pipe body (for welded pipes), as determined by taping the 

circumference, shall not deviate by more than the value given from that given in Table E- 

6B and E-6C Appendix E. API Spec. 5L Table-7 stands modified accordingly. 

Pipe Size Value 

≥ 4½ and < 20 ± 0.75% of specified OD or ± 3mm whichever is smaller 

≥ 20 and ≤ 36 + 3mm, -0.25% of specified OD 

> 36 ±3mm 

Pipes Ends 

Diameter tolerances for the pipe ends indicated in API Spec. 5L Table-8 shall be 

applicable on inside diameter for sizes ≥ 14” and on outside diameter for pipe 

sizes ≤ 12”. 

The specified inside diameter, based on circumferential measurement, over a length of 

100mm from the end shall comply with the tolerances specified in API Spec. 5L. 

Specified inside diameter is defined as ID=(OD-2WT) where ID, OD & WT are the 

specified inside diameter, specified outside diameter and specified wall thickness 

respectively. 

Out of Roundness 

Out of Roundness i.e., the difference between the maximum and minimum diameter 

(inside for pipe size ≥ 14 and outside for pipe size ≤ 12) at pipe shall comply with the 

following limits. Out of roundness tolerance indicated at API Spec. 5L Table 8 stands 

deleted. 

For pipe size ≤ 10¾ - 3mm (Note “a” of API Spec. 5L Table 8 applicable) 

For pipe size ≥ 12¾ - 5mm (Note “a” of API Spec. 5L Table 8 applicable) 

Each pipe shall be measured for conformance to above requirements. All dimensions and 

tolerances shall be recorded at least 3 times per operating shift (12 hrs maximum). 



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7.3 Wall Thickness 

7.5 Length 

7.6 Straightness 

7.7 Jointers 

In addition to API requirements, the wall thickness of each pipe shall be checked along 

the circumference at both ends and at the mid location of pipe body at 12 o’clock, 3 

o'clock, 6 o'clock and 9 o'clock positions. The wall thickness tolerances shall comply the 

requirements of this specification. 

The tolerances on specified wall thickness shall be (+) 10 percent and (-) 5 percent. 

However, in case of EW Pipes specified wall thickness tolerance upto (+) 15 percent for 

a distance of 25 mm on either side of longitudinal weld seam is also acceptable. API 

Spec. 5L Table 9 stands cancelled. 

Wall thickness measurements shall be recorded at least 3 times per operating shift (12 

hours maximum). 

All pipes shall be supplied with length between 11.5m and 12.5m. The minimum average 

length of the entire order shall be 12.0m. API Spec. 5L Table-11 shall not be applicable. 

Each pipe shall be measured for conformance to above requirements and all 

measurements shall be recorded. 

The deviation from a straight line for all diameters shall not exceed 20mm. Each pipe 

shall be checked for conformance to the requirements. Straightness shall be measured 

and recorded at least 3 times per operating shift (12 hours maximum). 

Jointers on pipes are not permitted. 

7.8 Workmanship and defects 

7.8.1 Dents 

Allowable dent size shall be as per API Spec. 5L. Disposition of dents shall be carried out 

in accordance with API Spec. 5L para 9.9(c) or (d). Dents on weld and heat affected 

zone (HAZ) are not acceptable. 

7.8.2 Offset of Plate Edges 

All pipes shall be checked for offset of skelp plate edges and offset shall be measured 

and recorded three times per operating shift (12 hour maximum). 

7.8.3 Out-of-Line weld bead for pipe with filler metal welds 



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A misalignment of weld seam exceeding 3.5mm shall be rejected. The misalignment shall 

be measured on radiographic film and calculated using the formula (a+b)/2 where à’ 

and `b’ are the relative offsets of the outside edges of the seam (refer Figure 7.8.3 of 

this specification). All pipes shall be checked for out-of-line weld bead and shall be 

measured and recorded at least 3 times per operating shift (12 hours maximum). 

7.8.4 Height of Outside and Inside Weld Beads – Submerged Arc Welds 

The maximum height of outside and inside weld bead shall not be more than 3.18mm 

(1/8 in.) for all specified wall thickness. All pipes shall be checked for weld bead height 

using a template having a cut out for weld bead and shall be measured and recorded at 

least 3 times per operating shift (12 hours maximum). 

7.8.5 Height of Flash of Electric Welded Pipe 

The inside flash of EW pipe shall not extend above the prolongation of the original 

inside surface by more than 0.5mm + 5% of nominal wall thickness. 

7.8.7 Trim of Inside Flash of Electric welded pipe 

7.8.8 Hard Spots 

In any case, the groove shall not cause the remaining thickness to be less than that 

allowed by Section 7.3. 

Any hard spot having a minimum dimensions greater than 2 inch (50.8 mm) in any 

direction and a hardness greater than 248 HV10 shall be rejected. The section of pipe 

containing the hard spot shall be removed as a cylinder. 

7.8.9 Cracks, Sweats and Leaks 

7.8.10 Laminations 

Sections of the pipe containing cracks, sweats and leaks shall be cut off as per the 

requirements of API Spec. 5L para 9.9(c) or (d). 

Any lamination or inclusion extending into the face or bevel of the pipe is considered 

unacceptable defect and pipe containing such defects shall be cut back until such defects 

are eliminated. 

The acceptance limit and disposition of lamination type defects on the skelp/ pipe body 

shall be as per Para 9.8.5.4 of this specification. 

7.8.11 Arc Burns 



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7.8.12 Undercuts 

Arc burns produced during the manufacturing of pipes are injurious defects and shall be 

disposed off in accordance with the requirements of API Spec. 5L para 9.9 (c) or (d). As 

a reference method for conforming the existence of an arc burn, the area shall be buffed 

with wire brush or sanding disc and etched with 5 percent nital solution. However, arc 

burns can also be considered for acceptance, in case the same is recrystallised by seam 

heat treatment. In such case, the Manufacturer shall demonstrate the recrystallisation to 

Purchaser by taking a sample as per para 6.2.6.1. 

b. Undercutting not classified as minor shall be considered a defect. Disposition shall 

be as follows : 

1. Undercut defects not exceeding 1/32 in (0.79mm) in depth and not 

exceeding 12½% of the specified wall thickness shall be removed by 

grinding in accordance with API Spec. 5L para 9.9 (a) and as modified in 

this specification. 

7.8.14 Other Defects 


Disposition of undercuts greater in depth than 1/32 in. (0.79 mm) or 12½% of 

the specified wall thickness shall be in accordance with API Spec. 5L para 9.9 (c) 

or (d). 

Any imperfection (measured from the surface) with a depth greater than 5 percent of the 

specified thickness of the pipe is considered unacceptable and shall be repaired in 

accordance with para 9.9 and as modified herein. 

7.8.15 Peaking 

(New) 

In respect of SAW Pipes, deviation from the circular arc at the weld seam at pipe 

ends shall not exceed 1.6mm. Each pipe shall be checked for conformance to above 

requirement. Peaking shall be measured and recorded at least 3 times per operating 

shift (12 hours maximum). Pipes not complying to these requirements shall be 

disposed off as per API Spec. 5L para 9.9 (c) or (d). 

7.9 Pipe Ends 

7.9.1 General 

7.9.3 Plain Ends 

Pipes shall be furnished with plain ends. 

Unless specified otherwise, the pipe ends shall be bevelled as per API Spec. 5L. 

In removing the inside burrs at the pipe ends, care shall be taken not to remove excess


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metal and not to form an inside cavity or bevel. Removal of excess metal beyond the 

minimum wall thickness as indicated in para 7.3 of this specification, shall be a cause for 

rebevelling. In case root face of bevel is less than that specified, the pipe ends shall be 

rebevelled and rectification by filing or grinding shall not be done. 

7.9.6 Bevel Protectors 

(New) 

Both pipe ends of all pipes shall be provided with metallic or high impact plastic bevel 

protectors as per Manufacturer's standard. Bevel protectors shall be of a design such 

that they can be re-used by coating contractor for providing on coated pipes subsequent 

to coating of line pipes. 


9.2.1 Heat Analyses 

Where the steel mill is not a part of an integrated pipe mill, heat analysis shall be 

reported by the Manufacturer prior to start of production. 

9.2.2 Product Analyses 

9.2.2.1 Sampling Frequency 

Two pipes per inspection lot shall be analysed. Inspection lot shall be 50 pipes per heat. 

Pipes selected shall be such that one at the beginning of the heat and one at the end of 

the heat is also represented. 

9.2.2.2 Sampling Method 

9.2.2.2.2 Welded Pipe 

Product analysis shall be carried out from finished pipes. Product analysis from skelp is 

also acceptable provided that the tracebility is guaranteed. 

9.3 Testing of Mechanical Properties 

9.3.1 Tensile Tests 

Tensile properties shall be determined from specimen removed from pipe which has 

been subjected to all mechanical and heat treatment operations. 

9.3.1.2 Tensile Testing Frequency 

Tensile test shall be performed on samples taken from two pipes per inspection lot. 

Inspection lot shall be 50 pipes per heat. API Spec. Table 13 stands modified 

accordingly. 



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9.3.1.4 Transverse Tensile Tests 

The transverse tensile tests shall be carried out on flattened rectangular specimen. 

9.3.1.5 Weld Tensile Tests 

For EW Pipes 

Inside and outside flash of weld in excess of pipe wall thickness shall be removed from 

the specimen either by grinding or machining. Specimen shall be tested for ultimate 

tensile strength only. The testing frequency shall be one test per inspection lot. 

Inspection lot shall be 50 pipes per heat. 

For SAW Pipes 

Inside and outside weld reinforcement in excess of pipe wall thickness shall be removed 

from the specimen either by grinding or machining. Specimen shall be tested to 

determine ultimate tensile strength only. 

A cylindrical all weld tensile test shall be carried out at the time of first day production as 

specified in Annexure-I of this specification to determine the yield strength, UTS & 

elongation. 

The cylindrical all weld specimen shall have gauge length, L=5d, where 

L = gauge length (mm) 

d = diameter of the test specimen (mm) 

The results of the test shall meet the minimum requirements of the plate/ skelp with 

regard to yield, tensile and elongation parameters. 

The testing frequency shall be one test per inspection lot. Inspection lot shall be 50 pipes 

per heat. 

9.3.5 Fracture Toughness Tests 

9.3.5.1 Charpy Test Specimens 

In addition to the specimen taken from the body of the pipe, three transverse specimens 

with weld in middle and three specimens with heat affected zone (HAZ) in the middle 

shall also be taken. 



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9.3.5.2 Charpy Testing Frequency 

The minimum test frequency shall be one test (a set of three specimens each for body, 

Weld and HAZ) per heat per lot of 100 pipes per combination of pipe size and specified 

wall thickness. 

9.4 Hydrostatic Tests 

9.4.1 Hydrostatic Test Requirement 

Test pressure shall be held for a minimum period of 15 seconds for all sizes and grades 

of pipes. 

9.4.2 Verification of Hydrostatic Test 

The pressure gauge used for hydrostatic testing shall be calibrated with a “Dead Weight” 

tester and the record shall be maintained. Calibration records shall be furnished to 

purchaser’s Representative on request. 

9.4.3 Test Pressure 

The test pressure for all sizes and grades of pipe shall be such that hoop stress (fibre 

stress) generated is at least 90% of SMYS, computed based on the formula mentioned in 

API Spec 5L para 9.4.3 (Note 2) 

9.5 Dimensional Testing 

The measuring equipment requiring calibration or verification under the provisions of API 

5L shall be calibrated with manual instruments at least once per operating shift (12 hours 

maximum). Such calibration records shall be furnished to Purchaser’s Representative on 

request. 

9.7 Visual Inspection 

The full body and welds (if applicable) of every pipe shall be examined, internally and 

externally, for surface defects. For internal examination of pipe DN 600 (24 inch OD) 

and larger, the inspector shall pass through the bore of the pipe. Adequate 

illumination shall be provided to enable proper inspection. 

9.8 Non-Destructive Inspection 

9.8.3 Methods of Inspection 

Refer a) Non destructive inspection of welds in welded pipe shall be done after cold 

expansion, heat treatment, hydrostatic testing and straightening operation of pipe. 



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Following will also be noted. 

i) All personnel performing NDT activities shall be qualified in the technique 

applied, in accordance with ISO 9712 or equivalent. 

ii) For UT at least one level-III qualified inspector shall be available to the mill 

(on call) for overall supervision. A level II inspector is required for shift 

supervision, manual weld inspection and calibration of all systems (both 

manual and automatic). 

iii) A level I inspector is acceptable for all other NDT methods. A level II inspector 

is acceptable for supervision of all other NDT methods. 

iv) All NDT shall be performed in accordance with written procedures. These 

procedures shall have the prior approval of Purchaser. 

v) NDT for acceptance of the pipe (final inspection) shall take place after all heat 

treating and expansion operations and, for welded pipe, after hydrostatic 

testing of the pipe. It may, however, take place before cropping, bevelling and 

end sizing. 

9.8.3.1 Pipe End Weld Inspection 

Submerged arc welds shall be inspected over their entire length, for both longitudinal 

and transverse defects, using ultrasonic examination in accordance with (Sections 

9.8.5.1 through 9.9). In addition, each end of the weld seam in SAW and SPW pipe 

shall be examined radiographically for a distance of at least 200 mm. 

If skelp end welds are permitted for spiral welded pipes (Section 5.1.4.5), these shall 

be inspected by the same methods as used for the spiral weld. 

EW pipe welds shall be examined for longitudinal defects over their entire length by 

ultrasonic methods in accordance with Sections 9.8.5.1 to 9.9. 

9.8.3.3 Lamination Detection 

(New) 

Each plate or strip rolled> shall be ultrasonically tested for laminations using an 

oscillating scanning pattern. The scanning coverage using this technique shall be a 

minimum of 12.5%. Alternatively, the scanning shall be executed along straight, 

evenly distributed parallel lines with a scanning coverage of at least 25%. Coil for EW 

pipe may be tested after welding of the longitudinal seam by rotary ultrasonic testing 

of the pipe body. The coverage in this case shall be 100%. 

In addition, the longitudinal edges of a plate or coiled strip shall be 100% 

ultrasonically tested, over a width of at least 25mm from the trimmed plate/coil edge. 

This may be performed either before or after pipe forming. For EW pipe subjected to 

100% rotary ultrasonic testing of the pipe body, strip edge testing is not required. 



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9.8.3.4 Seamless Pipe 

(New) 

Ultrasonic lamination testing of each seamless pipe body shall be performed using a 

helical pattern with at least 25% scanning coverage of the pipe surface. 

Ultrasonic thickness testing of the pipe body and ends of seamless pipe shall be 

performed by scanning along a helical or straight pattern in such a way that at least 

10% of the pipe surface is covered. 

The body and ends of all seamless pipe shall be 100% ultrasonically tested for inside 

and outside surface defects as well as transverse, longitudinal and inclined embedded 

defects. 

EMT may be applied for nominal wall thickness less than 6 mm. 

9.8.4 Radiological Inspection - Weld Seams 

9.8.4.1 Radiological Inspection Equipment 

The radiographic examination shall be executed with X-ray equipment using fine grain 

type film (e.g. Gevaert type D7 or equivalent) and lead intensifying screens. 

For acceptance of the radiographic films, the technique used shall result in a 

sensitivity better than 2% of the thickness of the weld metal and in a relative film 

density of 2.0 to 3.5 in the weld metal. 

The Manufacturer shall record on a review form accompanying the radiograph or 

within the mill computer system. The interpretation of each radiograph and 

disposition of the pipe inspected. 

9.8.5 Ultrasonic and Electromagnetic Inspection 

9.8.5.1 Equipment 

The automatic ultrasonic equipment shall incorporate: 

1. A device which monitors the effectiveness of the coupling. 


In the case where a zero degrees compression wave probe is used to monitor 

coupling, or where a through transmission technique is used for seamless or 

HEW pipe, loss of coupling exists when the sensitivity (echo height) decreases by 

more than 10 dB relative to the static calibration. 

In the case where a through transmission technique through the weld seam is 

used for SAW linepipe, loss of coupling exists when the signal drops below the 

electronic noise level pIus 10 dB at the position of the through transmission 

signal.


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A clear acoustic warning system and an automatic paint spray system (or 

equivalent) shall be activated when loss of coupling occurs. 

2. An automatic paint-spraying device, or equivalent system, which is activated 

when the received ultrasonic echo exceeds the preset acceptance limit. This 

alarm shall operate without any interference of the ultrasonic operator and 

shall be applied within 25mm advancement past the detected defect. The 

reset time of the alarm system, after detection of a defect, to be again 

available for detection, shall be shorter than the time needed for 25mm 

advancement in the scanning direction. 

3. An automatic weld tracking system for correct positioning of the 

crystals/probes with respect to the weld centre of all welded pipe. 

Entrance angles of shear wave probes shall be as follows: 

Seamless pipe : 45 (40 - 48) degrees 

EW pipe : 50-70 degrees 

SAW and SPW pipe longitudinal defect detection : 45 (40 – 48) degrees (on 

weld bead) 

SAW and SPW pipe transverse defect detection : 50 - 70 degrees (X or K 

transmission) 

Lamination testing may be performed in pulse echo or transmission mode; wall 

thickness only in pulse echo mode. The probe(s) used for wall thickness/lamination 

check should satisfy the following requirements: 

-Twin crystal probes : The focal length should be 50% of the wall 

thickness. 

-Single crystal probes 

in be better pulse echo mode : The near surface resolution should be 

25% of the wall thickness, measured at 

the primary reference sensitivity level. 

The transducer arrangement shall be such that the sound intensity in both the 

longitudinal and circumferential directions does not decrease by more than 3 dB at 

any point in the pipe wall; referred to the maximum sound intensity adjusted in the 

static calibration. 

The equipment shall be checked with an applicable reference standard (test piece) as 

described in (Section 5) at least every four hours and at the beginning and end of a 

batch in order to demonstrate the effectiveness of the inspection procedures and 

show that the equipment is functioning correctly.


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In case discrepancies of more than 3 dB occur, then all pipes inspected since the 

previous check shall be reinspected. Proper functioning of the UT equipment and the 

linearity of the electronic instrumentation shall be checked at least once every six 

months or if a change is made to the equipment. 

From each pipe under test, an automatic “on-line” record shall be made without 

operator intervention. For every pipe, a summary record shall be made showing pipe 

identification number, time and examination results, including reexaminations. 

If parts of the ultimate pipe ends are not covered by an automatic UT system 

(untested area), manual ultrasonic shall be carried out using approved procedures for 

manual ultrasonic examination based on the requirements given above. 

The complete circumference of seamless pipe ends or rotary tested HEW pipe ends, 

shall be tested manually over the length of the untested area pIus 25mm overlap of 

the automatically tested area. 

9.8.5.1.1 Electromagnetic Equipment 

(New) 

If permitted by the Purchaser, EMT methods such as eddy current testing or magnetic 

flux leakage testing may be applied for surface defect detection in seamless pipe. 

EMT shall be performed in accordance with ASTM F 309 or ASTM E 570. Testing shall 

be performed by automatic equipment over the entire surface of the pipe. 

If parts of the ultimate pipe ends are not covered by an automatic EMT system 

(untested area), then manual ultrasonic shall be carried out using approved 

procedures for manual ultrasonic examination based on the requirements given 

above. The complete circumference of the pipe ends shall be tested by manual UT, 

over the length of the untested area plus 25mm overlap of the automatically tested 

area. 

9.8.5.2 Ultrasonic and Electromagnetic Inspection Reference Standards 

Following will also be noted. 

The reference (calibration) standard shall have the same specified diameter and 

thickness as the product being inspected and shall be of sufficient length to permit 

calibration of ultrasonic inspection equipment at the speed to be used in production. 

The reference standard shall also be of the same material type and have the same 

surface finish and heat treatment as the product to be inspected. It shall be free from 

discontinuities or other conditions producing indications that may interfere with 

detection of the reference reflectors. The reference standard shall contain notches 

(N5 or N10) or radially drilled holes (3.2mm). 



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The Manufacturer may use a type of reference reflector not specified above provided 

he can demonstrate to Purchaser that the examination is at least as sensitive as 

prescribed in this specification. In such cases, the Manufacturer shall obtain approval 

from Purchaser. 

The Primary reference sensitivity level shall be adjusted on the following reference 

reflectors : 

Examination Type 

Type of Pipe 

SMLS SAW/SPW EW 

Lamination Detection FBH 6.3 mm FBH 6.3 mm FBH 6.3 mm 

Surface Defect Detection Notch N5 

Defect Detection Body and Pipe End Notch N5 

Defect Detection Welds RDH 3.2 mm Notch N10 

Defect Detection Plate and Axial Defect Notch N5 

For all reference reflectors except for RDH 3.2mm, the acceptance limit signal shall be 

equal to the primary reference sensitivity level, i.e. equal to the height of the signal 

produced by the reference reflector. For the RDH 3.2mm reference reflector, the 

acceptance limit signal shall be 10 dB below the primary reference sensitivity level. 

All sensitivity adjustments shall be carried out dynamically 

Flat bottomed holes for lamination detection shall be drilled to the midwall position. 

9.8.5.4 Acceptance Limits 

Following also to be noted. 

For all examination types, indications exceeding the acceptance limit signal are 

unacceptable. 

For lamination detention in plate coil, seamless pipe body and pipe ends, the 

acceptance limits shall be based on the lamination size and frequency and be in 

accordance with the classification of SEL-072, as described below: 


Location SEL - 072 Lamination Acceptance Levels 

Plate/Coil Body Table 1. Class 3 

Plate/Coil Edges Table 2. Class 1 

Seamless pipe body Table 1 Class 3


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9.8.6 Magnetic Particle Inspection 

9.8.6.2 Equipment 


MT shall be performed in accordance with the requirements of ASTM E 709. 

Prior to the inspection, the surface to be examined and all adjacent areas within 

25mm shall be dry and free of all dirt, grease, lint, scale, welding flux and spatter, oil 

or other extraneous matter that could interfere with the examination. 

9.9 Disposition of Pipe Containing Defects 


In all cases where grinding repairs are made as a result of imperfections being 

disclosed by NDT, the part of the pipe containing such repairs shall be subjected to 

additional NDT using the same technique, and MT, after the grinding operation. 

9.10 Test Methods 

9.10.4 Charpy Test 

9.12 Retests 

Individual test value for any specimen shall not be less than 80% of the required 

minimum average absorbed energy value as per this specification. 

9.12.1 Recheck Analyses 

Modalities of recheck analysis shall be as per API Spec. 5L as applicable to the lot being 

tested (refer para 9.2.2.1). However, during individual testing, each pipe shall be fully 

analysed to meet the requirement of Tables 2B of this specification. 

9.12.6 Charpy Retests 

In the event that a set of charpy test fails to meet the acceptance criteria, the 

manufacturer may elect to replace the lot of material involved or alternatively to test two 

more lengths from that lot. If both the new tests meet the acceptance criteria, then all 

pipe in that lot with the exception of the original selected length, shall be considered to 

meet the requirement. 



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9.13 Reprocessing 

10.0 MARKING 

10.1 General 

This para stands cancelled. 

Marking specified in API Paragraphs and otherwise specified in the Purchase Order shall 

be in English language and international system (SI) of units. Marking shall also include 

API Monogram, Purchase Order number, item number, heat number and weight. 

10.2 Location Of Markings 

Marking shall be paint stenciled on length of the pipe at right angles to the pipe axis. 

Stencil marking shall be placed on the inside surface length except that on pipe size 

smaller than 16, marking may either be placed on inside or outside. 

10.3 Sequence Of Markings 

10.3.4 Specified Dimension 

Actual pipe weight in kg shall also be marked. 

10.3.5 Grades and Class 

10.5 Length 

A colour code band shall be marked on inside surface of finished pipe for identification of 

pipes of same diameter but different wall thickness, as indicated in the Purchase Order. 

The colour code band shall be 50mm wide and shall be marked at a distance of 150mm 

from the pipe ends. 

Actual length shall be marked in metres. 

10.7 Die Stamping 

Additionally, the pipe number shall be placed by cold rolling or low stress dot marking on 

the outside surface of the pipe at an approximate distance of 50 mm from both ends. In 

case of non availability of either cold rolling or low stress dot marking facility in pipe mill, 

an alternative marking scheme of a permanent nature may be proposed by Manufacturer 

at bidding stage. 



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11.0 COATING AND PROTECTION 

11.1 Coatings 

Unless otherwise specified in the Purchase Order, the pipes shall be delivered bare, 

free of any trace of oil, stain, grease and paint. Varnish coating shall be applied on 

the marking area. Bevels shall be free of any coating. 

12.0 DOCUMENTS 

12.1.2 PSL 2 Certification requirements 

The Manufacturer shall furnish to Purchaser a certificate of compliance including the 

requirements of (Appendix F, SR15). 

The certificate shall comply with ISO 10474 type 3.1.c. For tests witnessed by the 

Purchaser, type 3.1.c. certificates shall be issued. 

12.2 Retention of Records 

In addition to the records indicated in APL Spec 5L Table 27, the Manufacturer shall 

retain the records of all additional tests mentioned in this specification including the hard 

copy records of ultrasonic testing carried out on pipe/skelp as well as pipe ends. 

12.3 Production Report 

(New) 

The Manufacturer shall provide six copies of production report in English language 

indicating at least the following for each pipe. International system of units (SI) shall be 

adopted. 

- Pipe number 

- Heat number from which pipe is produced 

- Pipe length and weight 

- Pipe grade 

The Manufacturer shall provide six copies of acceptance certificates which shall include 

the results of all tests required as per this specification and performed on delivered 

material giving details of, but not limited to, the following. 

- All test certification as per SR 15.1 of Appendix-F. 

- Certified reports of dimensional. Workmanship and defect inspection. 

- Data on test failures, rejected heats/lots etc. 

- Information on production and shipping. 

- All other reports and results required as per this specification. 



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The certificates shall be valid only when signed by the Purchaser’s Representative. Only 

those pipes which have been certified by the Purchase’s Representative shall be 

dispatched from the pipe mill. 

In the event of small quantities of pipes supplied this specification the production report 

may consist of only test certificates required as per SR 15 of API Spec 5L and other test 

report/results required as per this specification. 

12.4 Line Pipe Tracking Data 

(New) 

The line pipe data shall be provided in MS EXCEL/MS ACCESS format in compact Disc 

(CD). The specific data to be recorded shall be agreed between Purchaser and the 

Manufacturer and shall include, but not limited to, the following: 

- All marking information 

- Data of skelp and pipe manufacture 

- All mechanical properties from test results 

- All dimensional records 

- All workmanship and defects inspection records 

- Final inspection and release date 

- Description and disposition of repairs 

- Load-out /despatch date 

- Destination 

- Consignment details. 

13.0 PIPE LOADING 

Manufacturer shall prepare and submit the loading diagram which detail how the pipe is 

arranged, protected and secured on trucks, barges or ocean going vessels. All relevant 

loading calculation shall be submitted to the Purchaser as a Part of Manufacturing 

Procedure Specification (Refer Annexure I of this specification) 

14.0 INSPECTION OF FIELD TEST AND WARRANTY 

(New) 

Purchaser shall be reimbursed by Manufacturer for any pipe furnished on this order 

that fails under field hydrostatic test if such failure is caused by a 

material/manufacturing defect in the pipe. The reimbursement cost shall include pipe, 

labour and equipment rental for finding, excavating, cutting out and installation of 

replaced pipe in position. The field hydrostatic test pressure will not exceed that value 

which will cause a calculated hoop stress equivalent to 95 percent of specified 

minimum yield strength. 

In case Manufacturer so desires, he will be advised at least two week in advance so 

that his representative may witness the hydrostatic test in field. However, the testing 

and leak finding (if any) and repair operation shall not be postponed because of 

absence of the Manufacturer’s Representative. 



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APPENDIX-B 

REPAIR OF DEFECTS BY WELDING (NORMATIVE) 

B.1 .2 Weld Seam of Welded Pipe 

Delete existing clause and replace with the following: 

a) Repair of the weld seam or heat treated region of EW pipe is not acceptable. 

b) Repair of the weld seam of SAW pipe is not acceptable within 300mm of the 

bevel ends. 

c) The nature of any weld defect indicated by non-destructive inspection shall be 

ascertained before any repair is performed. Where necessary, complementary 

ultrasonic and radiographic inspections shall be carried out to characterize the 

defect. Repair welding to rectify pipe welds containing cracks is not permitted. 

d) Repairs to the weld seam shall be limited to three per pipe. The length of 

repair weld shall not exceed 5% of the total weld length on each pipe. 

e) Weld repairs shall not be carried out after cold expansion or hydrostatic 

testing of a pipe. 

f) Repair welding shall be executed only after specific approval by Purchaser 

Representative for each repair. 

g) No repair of a repaired weld is permitted. 

h) The repair weld shall be performed with a minimum of two passes. 

B.2 Procedure for Repair By Welding Of Seamless Pipe And Parent Metal Of 

Welded Pipe 

Delete existing section and replace with the following: 

Repair welding on seamless pipe and on parent metal of welded pipe is not 

acceptable. 

B.3 Procedure for Repair Of Submerged Arc and Gas Metal Arc Welds 

B.3.1 The defective part of the weld shall be clearly marked on the pipe so that the defect 

can be easily located and repaired.


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B.3.4 Repair welding shall be executed using qualified procedures and in accordance with 

(New) the requirements of Appendix C. 

The repaired area shall be non-destructively tested by RT, manual UT and MT. 

B.3.5 The Manufacturer shall also maintain a record of repairs carried out. The records 

(New) shall include number, pipe identification number, welding procedure applicable and 

NDT details. 

B.4 Procedure for Repair of Electric and Laser Welds Repair welding of EW welds is not 

acceptable. 



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APPENDIX-C 

REPAIR WELDING PROCEDURE (NORMATIVE) 

C.2 Repair Welding Procedure Qualification 

C.2.2 Mechanical Testing 

C.2.2.3 Transverse Guided-Bend Test 

The radius of male member of the jig used for guided bend tests shall be RA=2.25t, 

where “t” is specified wall thickness of pipe. 

C.2.2.5 For all pipes where fracture toughness test is specified, Charpy V-Notch impact test 

(New) as specified shall be included in the Repair Welding Procedure Qualification. 

C.2.2.6 Hardness test as specified in para 6.2.6 of this specification shall be included in 

(New) the procedure qualification. The location of the hardness measurements is to be 

indicated taking into account the new HAZ of the repaired area.


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APPENDIX-F 

SUPPLEMENTARY REQUIREMENTS (NORMATIVE) 

SR-5 FRACTURE TOUGHNESS TESTING (CHARPY V-NOTCH) 

SR.5.1 Delete this section and replace with the following 

The fracture toughness of the pipes shall be determined by Charpy V-notch impact 

testing in accordance with ASTM A370. The impact test temperature shall be lower 

than or equal to that specified in the table below :- 

Nominal Wall Thickness, wt (mm) Test Temperature ( ° C) 

(maximum 0°C) 

wt


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- Fusion line + 2mm 

- Fusion line + 5mm 

HFW - Pipe body at 90 degrees to the weld 

- Weld centreline 

SR5B.3 Delete existing section and replace with the following 

The minimum absorbed energy requirements for full size (10 x 10) specimens taken 

transverse to the pipe axis are given in the table below. 

Grade Minimum Average Value (J) Minimum Individual 

Value (J) 

B 27 22 

X42 27 22 

X46 32 24 

X52 36 27 

X56 39 29 

X60 41 31 

X65 45 34 

X70 48 36 

For other specimen sizes and orientations, the values above shall be multiplied by the 

following factors: 

Size Orientation Factor 

10x 10 Longitudinal 1.5 

10x 7.5 Transverse 0.75 

10x 7.5 Longitudinal 1.125 

10x5 Transverse 0.5 

10x 5 Longitudinal 0.75 

The shear area at the fracture surface of the test specimens shall be recorded. Each 

sample shall exhibit not less than 50% fibrous shear.


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APPENDIX-F 


SR 6 DROP WEIGHT TEAR TESTING (DWTT) ON WELDED PIPE 

SR 6.1 Fracture toughness for pipe sizes 16" and larger, all grades, and wall thickness shall be 

determined by Manufacturer using Drop Weight Tear Test (DWTT) in accordance with 

the requirements of SR 6.2 through SR 6.8. 

SR 6.2 Two transverse specimen shall be taken from one length of pipe per inspection lot. 

Inspection lot shall be 100 pipes per heat. Unless specified otherwise, the test shall be 

conducted at –32°F (0°C). 

Full transition curves shall be established for one heat out of ten, with a minimum of one. 

SR 6.4 At least 80 percent of the heats shall exhibit a fracture appearance shear area of 75 

percent or more for the specified test temperature. 

Note: Acceptance criteria for retesting indicated in API Spec. 5L para SR6.5 stands 

modified based on above mentioned requirements. Wherever `heat’ indicated in 

API Spec. SR6.5 shall be replaced by `lot’. Lot shall be as per SR6.2 as above. 

The fracture toughness of the pipes shall be determined by Charpy V-notch impact 

testing in accordance with ASTM A 370. The impact test temperature shall be lower 

than or equal to that specified in the table below.


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APPENDIX-F 


SR 17 NON DESTRUCTIVE INSPECTION OF WELDS IN ELECTRIC WELDED PIPES 

AND LASER WELDED PIPES 

SR 17.1 Supplementary Non Destructive Inspection 

The weld in electric welded pipe shall be inspected full length for surface and subsurface 

defects and laminations by ultrasonic methods using automatic ultrasonic equipment. 

SR 17.2 Equipment and Reference Standards 

The equipment for ultrasonic inspection shall meet the requirements of 9.8.5.1 and 

9.8.5.2 of this specification. The detailed procedure shall be approved by Purchaser's 

Representative. 

SR 17.3 Acceptance Limits 

SR 17.4 Disposition 

If during production repeated ultrasonic indications occur requiring re-inspection by other 

methods and it appears that the nature of defects causing ultrasonic indications can not 

be definitely established, the Manufacturer shall prove by other inspection methods (such 

as making cross-sections as per para 6.2.6.1 of this specification) that these defects are 

not injurious defects as stipulated in this specification. 

Disposition of defects shall be in accordance with API Spec. 5L para 9.9 (c) or (d).


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APPENDIX-F 


SR 19 ADDITIONAL FRACTURE TOUGHNESS REQUIREMENTS (TRANSVERSE 

CHARPY V-NOTCH) FOR PSL 2 PIPE 

SR 19.1 Except as allowed by SR 19.2 of API Spec. 5L, fracture toughness testing shall be 

performed in accordance with the requirements of para 9.3.5.1 and 9.3.5.2 of API Spec. 

5L and as modified in this specification, with a test temperature of 32°F (0°C) or at a 

lower temperature as specified in the Purchase Order. The required minimum all-heat 

average full size absorbed energy value for body specimen shall be the greater of SR 

19.1 (a) and SR 19.1 (b) of API Spec. 5L. The required minimum average full size 

absorbed energy value of weld and HAZ specimen shall also be the greater of SR 19.1 

(a) and SR 19.1 (b) of API Specification.


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H.4 Rejection 


APPENDIX-H 

PURCHASER INSPECTION (NORMATIVE) 

If Purchaser Representative rejects pipes repeatedly for any recurring cause, this shall be 

adequate reason to refuse final inspection of subsequent pipes until the cause has been 

investigated and corrective action taken. 

H.5 Purchaser shall specify if, and to what extent, he will monitor the Manufacturer’s 

(New) production, quality control and inspection. 

Sufficient fluorescent lighting both overhead and at pipe ends shall be provided at the 

inspection area. Facilities shall be provided for rolling each pipe joint for inspection. 

The Manufacturer shall make ultrasonic or other suitable equipment available for use 

by the Purchaser to check the remaining wall thickness where any defects have been 

ground out of the pipe.


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ANNEXURE-I (NEW) 

MANUFACTURING PROCEDURE SPECIFICATION 

A Manufacturing Procedure Specification (MPS) outlining the successive steps and associated inspection 

procedures from steel making to finished line pipe shall be prepared and submitted to Purchaser for 

approval at least two weeks prior to start of production. Manufacture of pipes shall start only after the 

approval of Manufacturing Procedure. The approved Manufacturing Procedure shall be strictly followed 

in all phases of the production of pipes. 

The Manufacturing procedure shall as a minimum include the following information. 

• Steel/ skelp maker and plant at which steel is produced. 

• Steel making process with details of secondary refining & degassing processes and continuous 

casting process, nominal weight of each heat. 

• Target chemistry, chemical range of intentionally added elements, limits on heat and product 

analysis to be placed on steel maker. 

• Skelp rolling procedure indicating number of passes, their temperature and thickness reduction 

in each pass required by Controlled Rolling Procedure and the finishing temperature. 

• Heat treatment procedure document established as per para 5.4. 

• Ultrasonic testing of skelp and pipes using automatic and manual equipment including details of 

equipment, techniques, scanning pattern, probe frequency, scanning sensitivity, reference 

standard for calibration, dynamic calibration procedure, method of marking defects and 

indicating loss of coupling, inspection and recording. 

• Pipe making procedure including skelp edge preparation, forming and any other special process 

proposed. 

• Production welding procedure giving details of welding speed, current and voltage, welding 

temperature, heat treatment temperature etc. 

• Ultrasonic testing of weld seam of pipe using automatic equipment including details of 

equipment, scanning pattern, probe frequency, scanning sensitivity, calibration pipe, extent of 

weld length at pipe ends not covered by all probes, method of marking defect and indicating loss 

of coupling, inspection and records. 

• For seamless pipes, the pipe forming procedure, pipe heat treatment procedure, hydrostatic test 

procedure & NDT procedure details.


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• Dimensional tolerances, frequency of checking, measurement and record in a tabular form 

including details of instruments and equipments proposed. 

• Detail of techniques proposed for measurement of end squareness and peaking at the welds. 

• Hydrostatic testing including details of testing equipment, procedure and the relevant test 

pressure calculations. 

• Marking details. 

• Handling, storage and shipment procedure. 

• Production Report Formats. 

• Complete details of computerised pipe tracking system. 

Note: In the event of small quantities of pipe ordered against this specifications, the requirements of 

submission of manufacturing procedure details can be moderated subject to agreement between 

Purchaser and Manufacturer. 



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ANNEXURE-II (NEW) 

FIRST DAY PRODUCTION TESTS 

Two lengths, each of completely finished pipes of first day's production from two different heats (i.e. a 

total of four pipe lengths) shall be selected at random for testing to verify that the Manufacturing 

procedure results in the quality of pipes which are in complete compliance with this specification. The 

pipes thus tested shall be considered to be the test pipes required per heat or per lot as per relevant 

clauses of this specification. 

These first day's production tests shall be repeated upon any change in the manufacturing procedure as 

deemed necessary by Purchaser’s Representative. The first day production tests shall be carried out on 

pipes for each wall thickness, each diameter and each grade of steel. 

The Manufacturer shall submit to Purchaser a report giving the, results of all tests mentioned below. The 

report shall be agreed and signed by Purchaser’s Representative, prior to start of regular production. 

Note: In the event of small quantities of pipes ordered against this specification, like those for bends 

and other similar applications, as specifically called out in the purchase order, the first day 

production test shall not be carried out. Pipes in such case shall be accepted based on regular 

production tests. 

The various tests to be conducted on each pipe shall be as follows. The test method and acceptance 

values shall be as per this specification unless specified differently in this Annexure. 

a. Visual Examination 

All pipes shall be examined visually for dimensional tolerance and apparent surface defects. 

b. Ultrasonic Examination 

The weld seam of all pipes shall be examined ultrasonically. 

c. Radiographic Examination 

The weld seams of all SAW Pipes shall be radiographically examined throughout their full length 

in accordance with sections 9.8.4 to 9.8.4.9. 

d. Mechanical Properties 

The mechanical properties of all pipes shall be tested and shall meet the requirements of the 

relevant sections of this specification. Purchaser will select the places in pipe from where the test 

specimens shall be removed. 

The following tests shall be conducted :


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i. Two flattening test specimens shall be removed : one specimen shall be tested with weld 

at 0° and other at 90°. In case it is not possible to take transverse specimen for smaller 

diameter pipes, longitudinal specimen may be taken. 

ii. Two transverse base material specimens and two transverse weld test specimen for 

tensile test shall be tested. In case it is not feasible to obtain transverse specimen, 

longitudinal specimen may be taken. 

iii. Six weld cross section specimens shall be taken at equally spaced points along the pipe 

length. They shall be polished and etched to show the metallurgical structure. Two of 

these specimens shall be tested for hardness at room temperature after light etching. 

Manufacturer shall propose alternative scheme of location of six specimens which ensure 

similar coverage for checking the weld quality. For SAW pipes, this examination shall 

provide evidence that proper fusion has been obtained throughout the full thickness of 

the joint, the extent of interpenetration and the alignment of internal and external weld 

passes. For EW pipe, this examination shall provide proof that heat treatment of the 

weld zone has been adequate. 

For Seamless Pipes, three specimens from one pipe shall be extracted from locations 

120° apart from a position chosen by the Purchaser, polished and etched for 

examination and checked for microstructure. A hardness survey shall be made on one 

of the above specimens selected by the Purchaser. Three traverses shall be made, 

one 2 mm from the outer edge, the second across the centre and the third 2 mm 

from the inner edge. A minimum of 12 readings shall be taken at 5 mm intervals. 

iv. Three fracture toughness test specimens shall be taken from pipe transverse to pipe axis 

out of base metal at 90° from weld and tested at specified temperature. Both shear and 

absorbed energy values shall be determined. 

Three weld specimens shall be removed perpendicular to and across weld with V-notch 

in the middle of the weld and shall be tested at the same specified temperature. The 

specimen shall be according to para SR 5.3 of this specification. 

v. Two reverse bend test specimens shall be removed and tested. 

vi. At points selected by Purchaser, 12 DWTT specimen shall be removed from base metal 

in a transverse direction. The sets of 3 base metal specimen shall be tested at -40, -10, 

0, +20°C for shear area. The value at the specified test temperature mentioned in SR 6 

of this specification shall be used to evaluate the test. 

e. In addition, all the tests and inspections required to be conducted on each pipe as per this 

specification shall be conducted on all the pipes selected for testing during first day production 

test. 

f. In case of any test failure, no re-testing shall be allowed and the entire first day production shall 

be rejected. 

ANNEXURE-III (NEW) 



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INFORMATION TO BE FURNISHED AT THE TIME OF BIDDING 

The following information as applicable shall be furnished at Bid stage with respect to line pipe to be 

supplied. 

• Name(s) of proposed Manufacturer(s) 

• Authorisation letter(s) from Manufacturer(s) where applicable. 

• Authorisation letter(s) from Manufacturer(s) of skelp/ plates, in case skelp manufacturing facility 

is not an integral part of the Supplier's pipe mill. 

• Record of similar supplies made earlier by the Manufacturer for both skelps and pipes, giving 

complete details of diameter, thickness, length, grade of plate/ pipe, service, year, name of 

project, name of client, and contact person. 

In particular, details of similar supplies made over the last five years shall be furnished. 

• Descriptive technical catalog(s) of the proposed Manufacturer(s) clearly indicating the mill 

capacity, existing range of production, facilities at pipe mill, etc. 

Pipe manufacturing facilities/ equipment details viz. 

• Welding system having integrated control as per Cl. 5.1 

• Heat treatment facilities as per Cl. 5.1 

• Automatic ultrasonic testing for skelp, pipe body and weld as per Cl. 9.8.5. 

• Copy of valid certificate of Authority to use API monogram as per clause 1.2 of this specification. 

• A clause wise list of technical deviations, if considered unavoidable, from the requirements of 

this specification shall be furnished in the proforma enclosed with the Enquiry. Deviations 

indicated anywhere else in the offer shall not be considered valid. In case of no deviations, 

Bidder shall write "NO DEVIATIONS" in the said proforma. 



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FIGURE 6.2.6.1


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FIGURE 

6262(a)


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FIGURE 6.2.6.2(b)


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FIGURE 6.2.7


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FIGURE 7.8.3

PROCESS & PIPING DESIGN SECTION 


DELHI - 110 092 

SPECIFICATION 

FOR 

3-LAYER POLYETHYLENE COATING OF LINEPIPES 

SPECIFICATION NO.: MEC/S/05/62/014, Rev-2 

D:\Technical Specifications & Standards\Latest\014 - 3-LPE Coating of Linepipes-TS-R2-Latest.doc


Delhi 

PROCESS & PIPING 

DESIGN SECTION 

SPECIFICATION 

FOR 

3-LAYER POLYETHYLENE 

COATING OF LINEPIPES 

TECHNICAL SPECIFICATION NO. : MEC/S/05/62/014 REV-2 Page 1 of 35 

1.0 SCOPE 

2.0 REFERENCE DOCUMENTS 

D:\Technical Specifications & Standards\Latest\014 - 3-LPE Coating of Linepipes-TS-R2-Latest.doc 

C O N T E N T S 

3.0 PLANT SCALE AND INSTALLATION 

4.0 MATERIALS 

5.0 FUNCTIONAL REQUIREMENTS AND PROPERTIES OF COATING 

6.0 MEASUREMENT AND LOGGING 

7.0 COATING PROCEDURE AND QUALIFICATION 

8.0 PIPE SURFACE PREPARATION 

9.0 COATING APPLICATION 


11.0 HANDLING, TRANSPORTATION AND STORAGE 

12.0 REPAIR OF COATING 

13.0 MARKING 

14.0 QUALITY ASSURANCE 

ANNEXURE-I : COATING SYSTEM/ MATERIAL PRE-QUALIFICATION 

Revision No. Date Revised by Checked by Approved by 

PREPARED BY : 

TAPAS ROY 

CHECKED BY : 

A.K. SARKAR 

APPROVED BY : 

A.K. JOHRI


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SPECIFICATION 

FOR 




1.0 SCOPE 

This specification covers the minimum requirements for supply/ arrangement of all 

materials, plant, equipment, plant sites, consumables, utilities and application 

including all labour, supervision, inspection and tests etc. for application of external 

anti-corrosion coating of pipes by using 3 Layer Side Extruded Polyethylene Coating 

conforming to DIN-30670, 1991, `Polyethylene Coating of Steel Pipes and Fittings' 

and the requirements of this specification. 

2.0 REFERENCE DOCUMENTS 

Reference has also been made to the latest edition of the following standards, codes 

and specifications. The edition enforce at the time of floating the enquiry shall be 

termed as latest edition. 

a. ASTM D-149 : Standard Test Methods of Dielectric 

Breakdown voltage and Dielectric strength of 

solid electrical insulating materials at 

commercial frequencies. 

b. ASTM D-257 : Standard Test Methods for D-C Resistance or 

conductance of insulating materials. 

c. ASTM D-543 : Standard Method of Test for Ressistance of 

Plastics to Chemical Reagents. 

d. ASTM D-570 : Standard Method of Test for Water Absorption 

of Plastics. 

e. ASTM D-638 : Standard Test Method for Tensile 

Properties of Plastics. 

f. ASTM D-792 : Standard Test Method of Specific Gravity and 

Density of Plastics by Displacement. 

g. ASTM D-1238 : Test Method for Low Rate of Thermoplastics 

by Extrusion. 

h. ASTM D-1525 : Test Method for Vicat Softening Temperature 

of Plastics 

i. ASTM D-1603 : Test Method for Carbon Black in Olefin 

Plastics 

j. ASTM D-1693 : Test Method for Environmental Stress 

Cracking of Ethylene Plastics 



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SPECIFICATION 

FOR 




k. ASTM D-2240 : Test Method for Rubber Property – 

Durometer Hardness 

l. ASTM D-3895 : Test Method for Oxidative – Induction Time 

of Polyolefins by Differential Scanning 

Calorimetry 

m. ASTM G-42 : Tentative Methods for Cathodic disbonding of 

Pipeline Coatings Subjected to Elevated or 

Cyclic Temperatures. 

n. API RP 5L1 : Recommended Practice for Railroad 

Transportation of Linepipe. 

o. API RP 5LW : Transportation of Line Pipe on barges and 

marine vessels 

p. DIN EN 10204 : Metallic Products – Types of Inspection 

Documents 

q. DIN 53735 : Testing of Plastics : Determination of Melt 

Index of Thermoplastics. 

r. ISO 8502-3 : Preparation of Steel Stubstrates before 

Application of Paints and Related Products – 

Part-3 – Assessment of Dust on Steel Surfaces 

Prepared for Painting (Pressure Sensitive Tape 

Method) 

s. ISO 9002 : Quality Systems : Specification of Production 

and Installation 

t. ISO 11124 : Preparation of Steel Substrates Before 

Application of Paints and Related Products 

u. SIS 055900 : Preparation of Steel Substrates before 

Application of Paints and Related Products – 

Visual Assessment of Surface Cleanliness. 

v. APL 5L : Specification for Line Pipe 

w. ASME B 31.8 : Gas Transmission and Distribution 

Piping Systems 

x. ASME B 31.4 : Liquid Transportation systems for 

Hydrocarbons, Liquid petroleum Gas 

Anhydrous ammonia, and Alcohols 



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SPECIFICATION 

FOR 




y. CSA Z245.20-98 : External Fusion Bond Epoxy Coating for 

Steel Pipe 

The CONTRACTOR shall be familiar with the requirements of these documents 

and shall make them readily available at the coating plant to all persons 

concerned with carrying out the works specified in this specification. 

3.0 PLANT SCALE AND INSTALLATION 

3.1 CONTRACTOR shall size coating plant(s) after evaluating the scale of work and the 

time schedule required for the works. Coating plant(s), shall be installed into a yard 

whose geometry and dimensions are such as to allow the execution of a continuous 

work schedule. For this purpose the CONTRACTOR shall ensure non stop work 

execution owing to prohibitive adverse weather conditions and when required 

CONTRACTOR shall install requisite equipment and plant in roofed and adequately 

weather protected areas. 

3.2 Plant equipment, machinery and other facilities shall be in first class operating 

condition to atleast meet the job requirements of quality and production. Worn out 

and improvised plants are not acceptable. 

3.3 CONTRACTOR shall, at his own responsibility and cost, provide and prepare all 

necessary area for the storage of bare and coated pipe and all other materials, for 

coating yard, stock-piling and other temporary installation. For each area, 

CONTRACTOR shall provide to stipulate servitude agreements as required with the 

relevant Authorities, and, on work completion, to clean, restore and pay servitude 

and claims for damages, as applicable. 

3.4 CONTRACTOR shall at its own responsibility and cost, provide for water and power 

supply and other utilities and consumables and obtain authorisation regarding access 

roads and other permits required for the execution of works conforming to all the 

requirements of the governing authorities. 

3.5 CONTRACTOR shall at its own expense provide a fully equipped laboratory and test 

facilities with adequate inventory to carry out tests required for the procedure 

qualification and during regular production. Outside testing for qualification and 

regular production is not acceptable to COMPANY. 

3.6 The CONTRACTOR shall be fully responsible for adherence to all statutory 

regulations applicable for handling and disposal of the hazardous chemicals during 

the coating works. 

3.7 The CONTRACTOR shall be responsible for obtaining all statutory approvals/ 

clearances from relevant Authorities including Pollution Control Board, as applicable 

for the coating plant(s). 



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4.0 MATERIALS 

4.1 The three layer coating system shall comprise of a powder epoxy primer, 

polythylene adhesive and a polyethylene top coat. Coating materials shall be suitable 

for the service conditions and the pipe sizes involved. The coating materials i.e. 

epoxy powder, adhesive and polyethylene compound shall have proven 

compatibility. The coating system and materials shall be pre-qualified and approval 

COMPANY in accordance with provision Annexure-I of this specification. 

CONTRACTOR shall obtain prior approval from COMPANY for the coating system and 

coating of all materials. 

4.2 The coating materials Manufacturer shall carry out tests for all properties specified in 

para 5.3.1 and 5.3.2 for each batch of epoxy, adhesive and polyethylene compound. 

In addition, the Manufacturer shall also furnish Infra-red Scan for each batch of 

epoxy powder. The coating materials manufacturer shall issue test certificates as 

per DIN EN 10204, 3.1B for each batch of materials supplied to CONTRACTOR and 

the same shall be submitted to COMPANY for approval prior to their use. 

4.3 In addition to Manufacturer’s certificate, the CONTRACTOR shall draw samples 

from each batch of epoxy, adhesive and polyethylene in the presence of 

COMPANY Representative and test for the following properties at the coating yard 

at least one week prior to its use, to establish compliance with the Manufacturer’s 

certificates. 

a) Epoxy Powder 

i. Gel Time 

ii. Cure Time 

iii. Moisture Content 

iv. Thermal Characteristics (Tgl, Tg2, ∆H) 

b) Adhesive 

i. Specific Gravity 

ii. Melt Flow Rate 

iii. Vicat Softening Point 

c) Polyethylene 

i. Melt Flow Rate 

ii. Specific Gravity 

iii. Vicat Softening Point 

iv. Moisture Content 

v. Oxidative Induction Time 

In case of failure of any of the above tests in a batch, that batch of material shall be 

tested for all other tests required as per para 5.3.1 and 5.3.2 including the tests 

which failed. If all tests pass, the batch shall be accepted for coating. If any of the 



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tests fail, entire batch of material shall be rejected and shall not be used for the 

coating. 

4.4 All materials to be used shall be supplied in sealed, damage free containers and shall 

be suitably marked and identifiable with the following minimum information: 

a. Name of the manufacturer 

b. Type of material 

c. Batch Number 

d. Place and Date of Manufacture 

e. Shelf Life/ Expiry Date (if applicable) 

f. Quantity 

All materials noted to be without above identification shall be deemed/ suspect and 

shall be rejected by COMPANY. Such materials shall not be used for coating and 

shall be removed from site and replaced by CONTRACTOR at its expense. 

4.6 CONTRACTOR shall ensure that all coating materials properly stored in accordance 

with the Manufacturer’s recommendation at all times, to prevent damage and 

deterioration in quality prior to use. 

4.7 CONTRACTOR shall be required to use all materials on a date received rotation 

basis, i.e. first in-first used basis. 

5.0 FUNCTIONAL REQUIREMENTS AND PROPERTIES OF COATING 

5.1 The coating must be able to withstand a maximum in service operating temperature 

of +65°C and shall conform to `S’ Type of coating as per DIN 30670. In addition, in 

open storage the coating must be able to withstand a temperature of atleast +80°C, 

without impairing its serviceability and properties specified. 

5.2 The top coat polyethylene used shall be black readymade compound, fully stabilized 

against influence of ultraviolet radiation (.e. sunlight), oxygen in air and heat (due to 

environmental temperature as specified above). No appreciable changes shall occur 

during exposure to such environments up to at least a period of 6000 hours. The 

CONTRACTOR shall submit certificate from Manufacturer in this regard. 

5.3 Properties 

Properties of coating system and coating material shall comply the requirements 

indicated in subsequent paragraph. In case the coating/ material properties are 

tested as per test methods/ standards other than specified herein below, the same 

may be accepted provided the test procedures and test conditions are same or more 

stringent than the specified. 



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5.3.1 Properties of Epoxy Powder and Adhesive 

CONTRACTOR shall choose such a brand of epoxy powder and adhesive that will 

achieve the functional requirements and properties of coating system as specified in 

para 5.1 and 5.3.3 of this specification respectively. Epoxy powder properties shall 

be as per CSA Z245.20.98. The colour of epoxy powder shall be either green or dark 

red or any other colour approved by COMPANY except grey colour. Copolymer 

grafted adhesive shall have the following properties. 

Sl. 

No. 

Properties Unit Requirement Test Method 

a. Melt Flow Rate (190°C / 2.16 kg) g/10 minutes 1.0 ASTM D1238 

b. Vicat Softening Point °C 90 min. ASTM D1525 

c. Specific Gravity - 0.926 min. ASTM D792 

5.3.2 Properties of Polyethylene Compound 

Sl. 

No. 


Properties Units Requirement Test Method 

a. Tensile Strength @+25°C N/mm 2 

b. Melt Flow Rate 

(190°C / 2.16 kg) 

g/10 

minute 

17 min. ASTM D 638 

0.25 min. ASTM D 1238 

or DIN 53735 

c. Specific Gravity @+25°C - 0.941 min. (HDPE) ASTM D 792 

d. Hardness @+25°C Shore D 50 min. ASTM D 2240 

e. Water Absorption, 24 hours, @+25°C % 0.05 max ASTM D 570 

f. Volume Resistivity @+25°C Ohm-cm 10 15 min ASTM D 257 

g. Dielectric withstand,1000 Volt/sec rise 

@+25°C 

Volts/ 

mm 

30,000 min ASTM D 149 

h. Vicat Softening Point °C 110 min. ASTM D 1525 

i. Elongation % 600 min. ASTM D 638 

j. Oxidative Induction Time in Oxygen at 

220°C, Aluminium pan, no screen 

j. 

l. 

Environmental Stress Crack Resistance 

(ESCR) (for F50) 

Medium Density, Condition “C” 

High Density, Condition “B” 

Carbon Black Content 

Min 10 ASTM D3895 

Hours 

% 

300 

300 

2 min. 

ASTM D1693 

ASTM D1603


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5.3.3 Properties of Coating System 

Sl. 

No. 

Properties Unit Requirement Test Method 

a. Bond Strength (using Type 2 Test 

Kg/cm 

Assembly i.e. Dynamometer) 

DIN 30670 

@ 20±5°C 

8.0 min 

@ 60±5°C 

5.0 min. 

b. Impact Strength (min. of 30 impacts on Joules per mm 7 min 

body along the length. No breakdown of coating 

DIN 30670 

allowed when tested at 25 kV) 

thickness 

c. Indentation Hardness 

mm 

DIN 30670 

@ 23±2°C 

0.2 max 

@ 70±2°C 

0.3 max 

d. Elongation at Failure % 300 min. DIN 30670 

e. Coating Resistivity (*) Ohm-m 2 


10 8 min. DIN 30670 

f. Heat Ageing (*) - Melt flow rate shall 

not deviate by more 

than 35% of 

original value 

g. Light Ageing (*) - Melt flow rate shall 

not deviate by more 

than 35% of 

original value 

h. Cathodic Disbondment 

@+65°C after 30 days 

@+65°C after 48 hrs 

i. Degree of Cure of Epoxy 

Percentage Cure, ∆H 

∆Tg 

mm radius of 

disbondment 

(**) 

% 

°C 

15 max. 

7 max. 

95 

+3/ -2 

DIN 30670 

DIN 30670 

ASTM G42 

CSA 

Z245.20- 

98(*) 

(*) Test carried out in an independent laboratory of national/ international 

recognition on PE top coat is also acceptable. 

(**) Disbondment shall be equivalent circle radius of total unsealed area as per 

ASTM G42. 

(***) Temperature to which the test specimens are to be heated during cyclic 

heating shall however be as per the recommendations of epoxy powder 

manufacturer. 

6.0 MEASUREMENT AND LOGGING 

CONTRACTOR shall maintain records in computer using MS ACCESS database 

Software containing all the relevant data of individual pipe and pipe coating 

including heat number, diameter, length, wall thickness, defects, pipe number, 

batches of materials, materials balance, sampling, testing, damages, repairs, rejects 

and any other information that COMPANY considers to be relevant and required for


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all incoming bare pipes and COMPANY approved outgoing coated pipes as 

applicable. CONTRACTOR shall submit this information in the form of a report at the 

agreed intervals. The above data shall also be provided in MS EXCEL/MS ACCESS 

formant in Compact Disc (CD). CONTRACTOR shall provide a Computer Terminal to 

COMPANY Representative for monitoring/tracking of the above. The CONTRACTOR 

shall also submit the material balance details to COMPANY for information at the 

end of shift. 

7.0 COATING PROCEDURE AND QUALIFICATION 

7.1 Upon the award of the CONTRACT, the CONTRACTOR shall submit within two(2) 

weeks for COMPANY approval, a detailed report in the form of bound manual 

outlining, but not limited to the following: 

a. Details of plant(s), locations, layout, capacity and production rate(s). 

b. Details of the equipment available to carry out the coating works including 

surface preparation, epoxy powder application and its recycling system, 

adhesive & polyethylene extrusion, moisture control facilities available for 

coating materials. 

c. Details of process control and inspection equipment required for the 

coating process such as temperature control, thickness control, holiday 

testers, etc. 

d. Details of chemicals pre-treatment facilities including process control and 

inspection equipment for phosphoric acid wash, de-ionised-ionised water 

wash and chromate wash. 

e. Facilities in the yard for unloading, handling, transport, production, 

storage, stockpiling, loading of bare and coated pipes and warehouses for 

storage of other coating materials. 

f Plant Organogram Chart and availability of manpower including coating 

specialist. 

g Details of utilities/facilities such as water, power, fuel, access roads and 

communication etc. 

After approval has been given by COMPANY, no change in plant set-up shall be 

made. However, unavoidable changes shall be executed only after obtaining written 

approval from COMPANY. 

7.2 At least two(2) weeks prior to the commencement of production coating, a detailed 

procedure of CONTRACTOR's methods, material proposed, etc., shall be formulated 

by CONTRACTOR and submitted for COMPANY's approval in the form of a bound 

manual. The procedure shall include, but not limited to the following information 

and proposals: 

a. Pipe inspection at the time of bare pipe receipt. 

b. Steel surface preparation, including preheating, removal of steel defects, 

method of pipe cleaning, dust removal, abrasive blast cleaning and surface 

profile, methods of measurements and consumables. 



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c. Complete details of chemical pre-treatment viz phosphoric acid wash, deionised 

water wash, and chromate wash including product data sheets, 

health and safety sheets and manufacturer’s recommended application 

procedure. 

d. Pipe heating, temperatures and control prior to epoxy application. 

e. Complete details of raw materials including current data sheets showing 

values for all the properties specified together with quality control and 

application procedure recommendation from manufacturer(s). 

f. Application of FBE powder, adhesive and polyethylene, including 

characteristics, temperature, line speed, application window, curing time, 

etc. 

g. Quenching and cooling, including time and temperature. 

h. Quality assurance system, Inspection and testing methods and reporting 

formats, including instrument and equipment types, makes and uses etc. 

i. Detailed method of repair of coating defects duly classified depending upon 

nature and magnitude of defects and repairs thereof including coating 

stripping technique. 

j. Details of instrument and equipment calibration methods including relevant 

standards and examples of calibration certificates. 

k. Complete details and inventory of laboratory and equipment for procedure 

qualification and regular production. 

l. Pipe handling and stock piling procedures. 

m. Sample of recording and reporting formats, including laboratory reports, 

certificates and requirement as per clause 6.0 of this specification. 

n. Complete details of test certificates for raw materials including test methods 

standards used. 

o. Test certificates from PE compound manufacturer for tests for thermal aging 

coating resistivity and aging under exposure to light. These test certificates 

shall not be older than three years. 

p. Health, safety and environment plans. 

q. Storage details of coating materials and chemicals. 

r. Continuous temperature monitoring at various stages of coating. 

Procedure Qualification Tests (PQT) shall be carried out only after obtaining 

written approval of the above procedure from COMPANY. No change in the 

procedure shall be made after approval has been given by the COMPANY. 

However, unavoidable changes shall be executed only after obtaining written 

approval from COMPANY. 

7.3 Prior to start of production, CONTRACTOR shall, at his expense, carry out a 

coating procedure qualification trial for each pipe diameter, and for each plant, to 

prove that his plant, materials, and coating procedures result in a quality of end 

product conforming to the properties stated in clause 5.3, relevant standards, 

specifications and material manufacturer’s recommendations. CONTRACTOR shall 

give seven(7) working days notice to witness procedures and tests. 

A batch representing a normal production run, typically 15 pipes, shall be coated 

in accordance with the approval coating procedure and the coating operations 



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witnessed by COMPANY Representative. Out of these pipes, at least one pipe shall 

be coated partly with epoxy and partly with both epoxy and adhesive layers. 

Atleast 5 (five) test pipes shall be selected by Company Representative for coating 

procedure approval tests and shall be subjected to procedure qualification testing 

as described hereinafter. All tests shall be witnessed by COMPANY’s 

representative. Out of 5(five) test pipes 1(one) pipe shall be coated partly with 

epoxy and partly with both epoxy and adhesive layers. Remaining 4(four) test 

pipes shall be coated with all three layers. 

During PQT, the CONTRACTOR shall qualify various procedures forming a part of 

coating operations as detailed subsequently. 

7.4 Qualification of Procedures 

7.4.1 Epoxy Powder Application & Recycling 

During pre-qualification, air pressure in the epoxy spray guns, satisfactory 

functioning of monitoring system, line speed vs coating thickness, etc. shall be 

established. Dew point of air used to supply the fluidised bed, epoxy spray system 

and epoxy recycling system shall be recorded during the PQT. 

Also, the CONTRACTOR shall remove samples of reclaimed powder from the 

reclamation system. These of reclaimed powder shall be subject to a detailed 

visual examination, thermal analysis and moisture content tests. The properties 

of the reclaimed powder shall be within the range specified by the Manufacturer 

of epoxy powder. In case the properties of the reclaimed powder are out of the 

range specified by the Manufacturer, CONTRACTOR shall not the use the 

reclaimed powder during the regular production. 

7.4.2 Pipe Pre-Heating 

The CONTRACTOR shall establish the temperature variation due to in-coming pipe 

temperature, line speed variation, wall thickness variation, emissivity, 

interruptions, etc. and document the same during the PQT stage. During PQT, 

proper functioning of pipe temperature monitoring and recording system including 

alarm/ hooter shall be demonstrated to the COMPANY Representative. 

7.4.3 Surface Preparation 

The procedure to clean and prepare the pipe surface shall be in accordance with 

the requirements of this specification. The ratio to shots to grits shall be 

established during procedure qualification testing, such that the resultant surface 

profile is not dished and rounded. The qualification shall be performed through a 

visual inspection, measurement of roughness and check of the presence of dust in 

the abrasive blast cleaned pipe surface. 



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7.4.4 Chemical Pre-Treatment 

7.4.4.1 Phosphoric Acid Wash followed by De-ionised Water Wash 

The procedure to apply the chemical pre-treatment viz. phosphoric acid wash 

followed by de-ionised water wash shall be in accordance with the 

recommendation of the manufacturer and shall result in intended cleaning 

requirements of this specification. Working solution preparation, maintaining 

concentration, application procedure including method of spreading, spreading 

rate, drying times, etc. depending upon the cleanliness/ temperature of the 

incoming pipe and the line speed shall be established. Temperature of the 

chemical, pipe pre-heat temperature vs line speed vs dwell time, rinsing 

procedure, testing & control, rectificatory measures, drying procedure etc. shall be 

clearly established during PQT. Also the quality of the deionised water shall be 

established during PQT. 

7.4.4.2 Chromate Treatment 

The procedure to apply the chromate treatment shall be in accordance with the 

recommendation of the manufacturer. Working solution preparation, maintaining 

concentration, application procedure including method of spreading, spreading 

rate, drying times, etc. depending upon the temperature of the incoming pipe and 

the line speed shall be established. Temperature of the chemical, pipe pre-heat 

temperature vs line speed, pipe heating after chromating and time limit within 

which the pipe to be heated, testing & control, rectificatory measures, shall be 

clearly established during PQT. 

7.4.5 Coating Application 

The COMPANY Representative will check the correctness of each coating 

application operation, values of the main parameters of each operation, preheating 

pipe surface temperature prior to epoxy powder application temperature, 

line speed, fusion bonded epoxy curing time, temperature and flow rate of copolymer 

adhesive and polyethylene etc. and the same shall be recorded. These 

values shall be complied with during regular production. 

7.5 Qualification of Applied Coating 

7.5.1 Tests on pipe coated partly with epoxy and partly with epoxy & 

adhesive Layers 

a. Degree of Cure 

Epoxy film samples (min 4 Nos.) shall be scrapped from the coated pipe 

using hammer and cold chisel and the samples shall be taken for cure test 

using Differential Scanning Calorimatry (DSC) procedure. Care shall be 

taken to remove the samples of full film thickness avoiding inclusion of 



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steel debris. Glass transition temperature differential (∆Tg) and % cure 

(∆H) shall comply the specified requirements. 

b. Epoxy Layer Thickness 

Epoxy layer thickness shall be checked at every one meter spacing at 3, 6, 

9 and 12 o’clock positions. The thickness shall comply the specified 

thickness requirements. 

c. Adhesive Layer Thickness 

Adhesive layer thickness shall be checked at every one meter spacing at 3, 

6, 9 and 12 o’clock positions. The thickness shall comply the specified 

thickness requirements. 

d. Holiday Inspection 

Entire pipe shall be subject to holiday inspection and the test voltage shall 

be set to exceed 5 v/micron of epoxy thickness specified for the portion 

coated only with epoxy layer. 

e. Adhesion Test 

i) Adhesion Test (24 hrs or 48 hrs) shall be carried out on the epoxy 

coated pipe. Test method, no. of test specimen and acceptance 

criteria shall comply CSA Z.245,20-98, Table 4. 

ii) Adhesion of FBE shall also be separately determined at ambient 

temperature at two locations by the “St Andrews Cross” method 

and the test shall comply with the specified requirements. 

f. 2.5° Flexibility Test 

2.5° Flexibility test shall be carried out on the epoxy coated pipe at test 

temperature of 0°C. Test method, no. of test specimen and acceptance 

criteria shall comply CSA Z.245,20-98, Table-4. 

g. Cross-section & Interface Porosity Test 

Cross section porosity and interface porosity tests shall be carried out on 

the epoxy coated pipe. Test method, no. of test specimen and acceptance 

criteria shall comply CSA Z.245,20-98, Table-4. 

7.5.2 Tests on pipes coated only with all three layers 

a. Bond Strength 

Three test pipes shall be selected for bond strength tests. On each of the 

selected pipes, three bond strength test shall be performed for each 



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specified temperature i.e. one at each end and one in the middle of the 

pipe and specified requirements shall be complied with, i.e. bond strength 

as well as mode of separation. Length of peel shall be minimum 65mm. 

None of these samples shall fail. 

b. Impact Strength 

Three test pipes shall be selected for impact strength test and the test 

shall meet the requirement. 

c. Indentation Hardness 

Two samples for both the temperatures from all pipes shall be taken. If 

any one of these samples fail to satisfy the requirements, then the test 

shall be repeated on four more samples. In this case, none of the samples 

must fail. 

d. Elongation at Failure 

Six samples each from two coated pipes i.e. 18 samples in all shall be 

tested and the test shall comply the specified requirement. Only one 

sample per pipe may fail. 

e. Cathodic Disbondment Test 

Two CD test shall be carried out for the total lot of test pipes having all 

three layers. One test shall be carried out for 30 days duration and 

another test for 45 hours duration The tests shall comply the specified 

requirement. Whenever Procedure Qualification is necessitated for 

different pipe size with same coating material combination, 48 hours test 

only be conducted. 30 days CD test is not mandatory in this case. 

f. Holiday Inspection 

All the pipes shall be subject to holiday inspection. The test voltage shall 

be as specified in para 10.4(b) 

g. Coating Thickness Measurement 

All pipes shall be subject to coating thickness measurement. Acceptance 

criteria shall be as per para 10.3 

h. Air Entrapment 

One sample each from pipe body and on weld (if applicable) shall be taken 

from all four coated pipes and the specified requirements shall be 

complied with. 



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i. Degree of Cure 

Epoxy film samples (minimum 4 no., equally spaced) shall be scrapped 

from one coated pipe and the samples shall be taken for cure test using 

Differential Scanning Calorimetry (DSC) procedure. Care shall be taken to 

remove the samples of full film thickness avoiding inclusion of steel debris. 

Glass transition temperature differential (∆Tg) and % cure (∆H) shall 

comply with the specified requirements. 

7.5.3 Inspection of all test pipes 

All pipes shall be subject to the following inspections: 

a. surface cleanliness, surface roughness measurements and dust control 

immediately after second abrasive blast cleaning and salt test immediately 

after De-ionised water wash. 

b. pH of pipe surface before and after phosphoric acid wash. 

c. visual inspection of chromate coating. 

d. visual inspection of finished coating, cut back dimension, internal/ external 

cleanliness, end sealing and bevel inspection. 

Acceptance criteria for all inspection and testing shall be as specified in this 

specification. 

7.6 After completion of the qualification tests and inspection as per para 7.4 and 7.5 

above, the CONTRACTOR shall prepare and issue to COMPANY for approval a 

detailed report of the above tests and inspection including test reports/ 

certificates of all materials and coatings tested. Only upon written approval from 

COMPANY, CONTRACTOR shall commence production coating. 

7.7 On successful completion of PQT, coating of all five(5) test pipes shall be removed 

and completely recycled as per the approval coating procedure specification, at 

CONTRACTOR’s expense. Remaining pipes will be accepted by COMPANY provided 

they meet the requirements of this specification and need not be stripped and recycled. 

7.8 The CONTRACTOR shall re-establish the requirements of qualification and in a 

manner as stated before or to the extent considered necessary by COMPANY, in 

the event of, but not limited to, the following : 

• Every time there is a change in the previously qualified procedure. 

• Every time there is a change in the manufacturer and change in formulation of 

any of the raw materials and change in location of raw material manufacture. 

• Every time the coating yard is shifted from one location to the other or every 

time the critical coating equipments (induction heater, epoxy spray system, 

extruder, etc) are shifted. 

• Any change in line speed during coating application. 



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• Any time when in COMPANY’s opinion the properties are deemed to be 

suspect during regular production tests. 

7.9 COMPANY reserves the right to conduct any or all the test required for 

qualification through an independent laboratory or agency at the cost of 

CONTRACTOR when in COMPANY’s opinion, the results are deemed suspect. 

COMPANY’s decision shall be final. 

8.0 PIPE SURFACE PREPARATION 

8.1 Unless specified otherwise, the pipes shall be supplied free from mill applied oils 

but may be subject to contamination occurring during transit. 

8.2 Prior to cleaning operation, CONTRACTOR shall visually examine the pipes and 

shall ensure that all defects, flats and other damages have been repaired or 

removed. The CONTRACTOR shall also remove marking stickers, if any, present 

within the pipe. Record shall be kept of such marking on the stickers of ensure 

traceability of pipe after coating. 

8.3 Any oil, grease, salt or other contaminants detrimental to the formation of a good 

coating bond or coating quality shall be removed prior to coating application. 

Contaminants may be removed by the use of non-oily solvents. Gasoline or 

kerosene shall not be used for this purpose. Visible oil and grease spots shall be 

removed by solvent wiping. Solvents cleaning shall be in accordance with SSPC- 

SP1. Steel surface shall be allowed to dry before abrasive cleaning. 

8.4 All pipes shall be preheated to a temperature 65°C to 85°C prior to abrasive blast 

cleaning. The external surface of the pipe shall be cleaned using 2 no. dry 

abrasive blasting cleaning units to achieve the specified surface cleanliness and 

profile. After first abrasive blast cleaning, chemical pre-treatment with phosphoric 

acid solution as per para 8.6 shall be carried out prior to second abrasive blast 

cleaning. However at the option of CONTRACTOR, chemical pre-treatment with 

phosphoric acid solution as per para 8.6 may be carried out after the second 

abrasive blaster. 

The abrasive blast cleaning units shall have an effective dust collection system to 

ensure total removal of dust generated during blast cleaning from the pipe 

surface. The equipment used for abrasive blast cleaning shall meet the specified 

requirements and shall be free from oil, water soluble salts and other forms of 

contamination to ensure that the cleaning process is not impaired. Traps, 

separators and filters shall be checked for condensed water and oil at the start of 

each shift and emptied and cleaned regularly. During abrasive blast cleaning the 

metallic abrasive shall be continuously sieved to remove “fines” and 

“contaminates” and the quality checked at every four hours. Abrasive used for 

blast cleaning shall comply ISO- 11124. 

8.5 Suitable plugs shall be provided at both pipe ends to prevent entry of any 

shot/grit into pipe during blast cleaning operations. These plugs shall be removed 



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after blast cleaning. Alternatively the CONTRACTOR may link pipes suitably 

together to prevent the entry of any short/grit into the pipe. 

8.6 Chemical Pre-treatment with Phosphoric Acid Solution 

8.6.1 All pipes shall provided chemical pre-treatment with phosphoric acid solution. 

10% solution of phosphoric acid, Oakite 31 / 33 or equivalent, shall be used to 

remove all soluble salts and other soluble contaminations. 

The CONTRACTOR shall provide data sheets and supporting documentation for 

the phosphoric acid to be used. The documentation shall verify that the 

phosphoric acid is suitable for the treatment of line prior to the application of the 

specific fusion bonded epoxy powder being applied and the final wil meet fully the 


8.6.2 The pipe temperature immediately prior to the phosphoric acid treatment shall be 

in the range of 45 to 75 °C. Phosphoric acid treatment shall be followed 

immediately by washing with de-ionised water. Deionised water used shall 

conform to the following requirements : 

Sl. 

No. 

Properties Unit Requirement 

a. Turbidity NTU 1 max. 

b. Conductivity µmho/cm 5 max. 

c. Hardness - Nil 

d. Total Alkalinity as CaCO3 mg/l 2 to 3 

e. Chloride as Cl mg/l 1 max. 

f. Sulphate as SO4 = 

mg/l 1 max. 

g. PH - 6.5 to 7.5 

Tests to determine the above properties shall be carried out in accordance with 

“Standard Methods for the Examination of Water and Wastewater” published 

jointly by American Public Health Association, American Water Works Association 

and Water Pollution Control Federation. 

Quality of the deionised water shall be monitored at the start of each shift and at 

every four hours interval. Non-compliance of deionised water wrt the above 

requirements shall cause for stoppage of the operations. 

8.6.3 The pH of the pipe surface shall be determined both before and after the deionised 

water rinse initially on each pipe and in case of consistent results, the 

frequency may be relaxed to once per hour at the discretion of COMPANY 

Representative. The measured pH shall be as follows : 

Before de-ionised water wash : 1 to 2 

After de-ionised water wash : 6 to 7 



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8.6.4 After the de-ionised water wash, the pipe shall be dried with dry air and 

preheated to a temperature of 65°C to 85°C. 

8.6.5 The salt tests shall be carried out after de-ionised water rinse. One test shall be 

carried out at one end of each pipe. The acceptance criteria shall be 2µg/cm 2 . An 

approved salt meter (SCM 400 or equivalent) shall be used to carry out salt tests 

and shall be calibrated in accordance with the equipment manufacturer’s 

recommendation. 

8.7 Abrasive cleaning carried out shall be such that the resultant surface profile is not 

dished and rounded when viewed with 30X magnification. The standard of finish 

for cleaned pipe shall conform to near white metal finish to Sa 2½ of Swedish 

Standard SIS 055900 latest edition. Surface of pipe after abrasive blast cleaning 

shall have an anchor pattern of 50 to 70 microns(Rz). This shall be measured for 

each pipe by a suitable instrument such as surface profile depth gauge. In 

addition the pipe surface after blast cleaning shall be checked for the degree of 

cleanliness (Sa 2½), degree of dust and shape of profile. Degree of dust shall 

comply the requirements of ISO:8502 – 3. Acceptance limit shall be either quality 

rating 2 or Class 2. 

8.8 All pipes shall be visually examined for presence of any shot/ grit/ loose material 

left inside the pipe during blast cleaning. Suitable mechanical means (stiff brush) 

shall be employed to remove the same before the pipes are processed further. In 

addition, inside surface of the pipe shall also be visually inspected for presence of 

any foreign material or shots and grit (free or embedded/ sticking to pipe inside 

surface). The pipe inside surface shall be examined using sharp floodlight focused 

at the middle of the pipe at one end while inspection is carried out visually from 

other end. Any foreign material or shots/ grit present in the pipe shall be 

completely removed by mechanical/ brush, high pressure air jets, by tilting of pipe 

etc. 

8.9 At no time shall the blast cleaning be performed when the relative humidity 

exceeds 85%. The CONTRACTOR shall measure the ambient conditions at regular 

intervals during blast cleaning and coating operations and keep records of 

prevailing temperature, humidity and dew point. 

8.10 The blast cleaned surface shall not be contaminated with dirt, dust, metal 

particles, oil, water or any other foreign material, nor shall be surface or its 

anchor pattern be scarred or burnished. All blast cleaned pipe surface shall be 

kept in dust free enclosure prior to coating. After blast cleaning, all surfaces shall 

be thoroughly inspected under adequate lighting to determine anchor pattern, 

quality of blasting and identify any surface defects prior to coating application. All 

surface defects such as slivers, scab, burns, laminations, welds spatters, gouges, 

scores, indentations, slugs or any other defects considered injurious to the coating 

integrity made visible during blast cleaning shall be reported to the COMPANY 

Representative and on permission from COMPANY Representative, such defects 

shall be removed by filing or grinding. After any grinding or mechanical repairs, 

the remaining wall thickness shall be checked and compared with specified 



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thickness. Ay pipes having thickness less than 95% of specified thickness shall be 

kept aside and disposed off as per the instructions of COMPANY Representative. 

The method employed to remove surface defects shall not burnish or destroy then 

anchor pattern or contaminate the surface. Pneumatic tools shall not be used 

unless they are fitted with effective air/ oil and water traps. Where burnishing 

results in destruction of anchor pattern, the anchor patter shall be restored by 

suitable means. Pipes which have damages repaired by grinding and have ground 

areas more than 50mm in diameter shall be recycling-blasted. 

Any dust or loose residues that have been accumulated during blasting and/ or 

during filing/ grinding operations shall be removed by vacuum cleaning. 

If contamination of surface occurs, the quality of blast cleaning method and 

process shall be examined. If the surface roughness is outside the specified limit, 

the blast cleaning material shall be checked and replaced. 

8.11 Upon Completion of the blasting operations, the quality control supervisor shall 

accept the pipe for further processing or return for re-blasting after removal of 

defects/ imperfections. In case imperfections are considered detrimental to the 

coating quality, the same shall be reported to COMPANY’s Representative for final 

decision on rejection or re-blasting/ removal of defects. Re-blasting/ removal of 

defects or returning pipe to the yard shall be at the CONTRACTOR’s cost. 

COMPANY’s Representative, in additions, reserves the right to initiate any of the 

above actions during periodic inspections for oil, dust, salt, imperfections, surface 

defects, lack of white metal finish etc. 

8.12 In order to ensure that pipe with defects are not processed further, provisions 

shall be available to lift the pipes from inspection stand. 

8.13 Chemical Pre-treatment with Chromate Solution 

8.13.1 Following completion of abrasive blast cleaning, all pipe surface shall be 

chemically Pre-treated with a 10% strength chromate solution. 

8.13.2 The CONTRACTOR shall provide data sheets and supporting documentation for 

the chemical to be used. The documentation shall verify that the chemical is 

suitable for the treatment of line pipe prior to the application of the specific fusion 

bonded epoxy powder being applied and the final coating will meet fully the 


8.13.3 The chemical pre-treatment shall be applied fully in accordance with the chemical 

suppliers’ instructions and in a manner that ensures 100% uniform coverage of 

the pipe surface without introducing surface contamination. 

8.13.4 The CONTRACTOR shall check that the concentration for the chemical pretreatment 

solution remains within the range recommended by the chemical 

manufacturer for the pipe coating process. The concentration shall be checked at 



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the make up of each fresh solution and once per hour, using a method approved 

by the chemical manufacturer. The CONTRACTOR shall also ensure that the 

chemical pre-treatment solution remains free from contamination at all times. 

Recycling of chemical pre-treatment solution is not permitted. 

8.13.5 The CONTRACTOR shall ensure that the temperature of the substrate is 

maintained between 40°C and 80°C and the chromate solution temperature does 

not exceed 60° or as recommended by the manufacturer. 

8.13.6 The chromate coating shall be smooth, even, free from runs, drips or excessive 

application and lightly adherent with no flaking of the coating. The chromate 

coated steel must be thoroughly dried immediately after application and shall be 

achieved by boiling off any residual solution on the surface. 

8.14 The total allowable elapsed time between completion of the blasting operations 

and commencement of the pre-coating and heating operations shall be such that 

no detectable oxidation of the surface occurs. Relative humidity readings shall be 

recorded every half on hour during the blasting operations in the immediate 

vicinity of the operations. The maximum elapsed time shall not exceed the 

duration given below : 


Relative Humidity % Maximum elapsed time 

> 80 2 hours 

70 to 80 3 hours 

< 70 4 hours 

Any pipe not processed within the above time-humidity requirement shall be 

completely re-blasted. Any pipe showing flash rusting shall be re-blasted even if 

the above conditions have not been exceeded. 

8.15 Pipe handling between abrasive blasting and pipe coating shall not damage the 

surface profile achieved during blasting. Any pipe affected by the damage to the 

surface exceeding 200mm 2 in area/ or having contamination of steel surface shall 

be rejected and sent for re-blasting. 

9.0 COATING APPLICATION 

The external surface of the cleaned pipe conforming to clause 8.0 of this 

specification shall be immediately coated with 3-layer extruded polyethylene 

coating in accordance with the procedures approved by COMPANY, relevant 

standards and this specification. In general, the procedure shall be as follows : 

9.1 Pipe Heating 

9.1.1 Immediately prior to heating of pipe, all dust and grit shall be removed from both 

inside and outside of the pipe by a combination of air blast, brushing and vacuum


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cleaning. Suitable arrangement shall be made to protect the bevel ends from 

getting damaged during the coating operation. 

9.1.2 Induction heater or gas furnace shall be used for heating the pipe. The method 

shall be capable of maintaining uniform temperature along the total length of the 

pipe, and shall be such that it shall not contaminate the surface to be coated. In 

case of induction heating, appropriate frequency shall be used to ensure `deep 

heating’ and intense skin heating is avoided. Gas fired heating system shall be 

well adjusted so that no combustion products are deposited on the steel surface. 

This shall be demonstrated on bare pipes prior to start of PQT. Oxidation of the 

cleaned pipe surfaces prior to coating (in the form of bluing or other apparent 

oxide formation) is not acceptable. 

9.1.3 External surface of the pipe shall be heated to about 190°C or within a 

temperature range (min. to max.) as recommended by the powder manufacturer. 

Required pipe temperature shall be maintained as it enters the coating chamber. 

9.1.4 Temperature of the pipe surface shall be continuously monitored & recorded by 

using suitable instruments such as infrared sensors, contact thermometers, 

thermocouples etc. The recording method shall allow to correlate each line pipe. 

The monitoring instrument shall be able to raise an alarm/ activate audio system 

(hooter) in the event of tripping of induction heater/ gas fired heater or in the 

event of pipe temperature being outside the range recommended by the 

manufacturer. Any deviation from the application temperature range 

recommended by manufacturer shall be rectified. If immediate rectification is not 

feasible, the production shall be stopped until cause of deviation has been 

removed. Any pipe coated during the duration of temperature deviation shall be 

identified by marking and rejected. Such rejected pipes shall be stripped and 

recoated. 

9.1.5 Temperature measuring & monitoring equipment shall be calibrated twice every 

shift and/ or as per COMPANY representative’s instruction. 

9.1.6 Contractor shall ensure that pipe surface emissivity variations are minimised 

during pipe heating. To avoid significant variance, more than once blasted joints 

should be coated at the same time and not mixed with joints blasted only once. 

9.2 Pipe Coating 

9.2 .1 Subsequent to pipe heating, coating consisting of following layers shall be applied 

onto the pipe. 

i. Electrostatic application of epoxy powder of minimum dry film thickness 

0.150 mm, unless otherwise specified. The maximum thickness shall not 

exceed the epoxy thickness specified by epoxy powder manufacturer. 

ii. Grafted co-polymer adhesive applied by extrusion, minimum thickness 

0.200 mm. 

iii. Polyethylene coating by extrusion. 



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The coated pipe shall be subsequently quenched and cooled in water for a period 

which shall sufficiently lower the temperature of pipe coating to permit handling 

and inspection. 

9.2.2 Minimum total thickness of finished coating shall be as under : 

Pipe Size 

Min. Coating Thickness (mm)(*) 

Specified outside diameter (mm) Normal Type (n) 

Upto 10¾” (273.1) 1.8 

Over 10¾” (273.1) to below 20” (508.0) 2.0 

From 20” (508.0) to below 32” (813.0) 2.25 

(*) HDPE material is to be used as top coat. 

Required coating thickness shall be normal type (n), unless otherwise specified. 

9.2.3 Coating materials shall be inspected in accordance with the manufacturer’s 

recommendation prior to coating application and it shall be ensured that the 

materials are moisture free. In case the relative humidity exceeds 80%, the 

adhesive and polyethylene material shall be dried using hot air as per the 

directions of COMPANY representative. 

9.2.4 Prior to starting the application of fusion bonded epoxy powder, the recovery 

system shall be thoroughly cleaned to remove any unused powder remaining from 

a previous line pipe coating application. The use of recycled powder shall be 

permitted subjected to: 

a) satisfactory qualification of the reclaimed system during PQT stage 

b) the proportion of the reclaimed powder in the working mix does not 

exceed 20% at any one time. 

c) the quality of the recycled powder being routinely checked during 

production, at a minimum frequency of once per shift and consistently 

meets the requirements stated at para 5.3.1. 

9.2.5 Dry air, free of oil and moisture shall be used in the coating chamber and spraying 

system and for this purpose filters, dehumidifier/ heater as required alongwith 

control & monitoring system shall be provided for this purpose. Dew point of air 

used to supply the fluidized bed, epoxy spray system and epoxy recycling system 

shall be at least (-) 40°C and this shall be shall monitored during the regular 

production. 

9.2.6 Air pressure in the epoxy spray guns shall be controlled, continuously monitored 

and recorded by using suitable instruments. The air pressure shall be controlled 

within the limits established during coating procedure qualification. The 



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monitoring system shall be able capable of raising an alarm/ activate audio 

system (hooter) in the event of change in air pressure beyond the set limits. Any 

deviation from the pre-set limits shall be rectified. If immediate rectification is not 

feasible, the production shall be stopped until cause of deviation has been 

removed. Any pipe coated during the duration of air pressure deviation shall be 

identified by suitable marking and rejected. Such rejected pipes shall be stripped 

and recoated. 

9.2.7 Extruded adhesive layer shall be applied before gel time of the epoxy coating has 

elapsed. The application of the adhesive layer shall not be permitted after epoxy 

is fully cured. The CONTRACTOR shall establish, to the satisfaction of the 

COMPANY representative, that the adhesive is applied within the gel time window 

of epoxy and at the temperature recommended by the adhesive manufacturer. 

The CONTRACTOR shall state the minimum and maximum time interval between 

epoxy and adhesive application at the proposed pre-heat temperature and line 

speed. 

9.2.8 Extruded polyethylene layer shall be applied over the adhesive layer within the 

time limit established during PQT stage and within the time/ temperature range 

recommended by the manufacturer. The extrusion temperatures of the adhesive 

and polyethylene shall be continuously recorded. The monitoring instruments shall 

be independent of the temperature control equipment. The instruments shall be 

calibrated prior to start of each shift. 

9.2.9 CONTRACTOR shall ensure that there is no entrapment of air or void formation 

along the seam weld (where applicable) during application of coating. Air 

entrapment below the coating and also along the coating overlap shall be 

prevented by forcing the coating on to the pipe using high pressure roller of 

suitable design during coating application. In case it is not adequately achieved, 

CONTRACTOR shall supplement by other method to avoid air entrapment. The 

methods used shall be witnessed and approved by COMPANY. 

9.2.10 Resultant coating shall have a uniform gloss and appearance and shall be free 

from air bubbles, wrinkles, holidays, irregularities, discontinuities, separation 

between layers of polyethylene & adhesive, etc. 

9.2.11 Coating and/ or adhesive shall terminate 120mm (+)20/(-)0 mm from pipe ends. 

The adhesive shall seal the end of applied coating. CONTRACTOR shall adopt 

mechanical brushing for termination of the coating at pipe ends. Edge of the 

coating shall be shaped to form a bevel angle of 30° to 45°. 

9.2.12 Failure to comply with any of the above applicable requirement and of the 

approved procedure shall be cause for the rejection of the coating and such 

coating shall be removed in a manner approved by COMPANY at CONTRACTOR’s 

expense. 



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10.1 General 

CONTRACTOR shall establish and maintain such quality assurance system as are 

necessary to ensure that goods or services supplied comply in all respects with 

the requirements of this specification. The minimum inspection and testing to be 

performed shall be as indicated subsequently herein. 

10.2 Visual Inspection 

Immediately following the coated, each coated pipe shall be visually checked for 

imperfections and irregularities of the coating. The coating shall be of natural 

colour and gloss, smooth and uniform and shall be blemish free with no dust or 

other particulate inclusion. The coating shall not slow and defects such as blisters, 

pinholes, scratches, wrinkles, engravings, cuts swelling, disbonded zones, air 

inclusions, tears, voids or any other irregularities. Special attentions shall be paid 

to the areas adjacent to he longitudinal weld (if applicable), adjacent to the cut 

back at each of pipe and within the body of the pipe. 

In addition inside surface of the pipe shall also be visually inspected for presence 

of any foreign material or shots and grit (free or embedded/ sticking to pipe inside 

surface). The pipe inside surface shall be examined using sharp floodlight 

focussed at the middle of the pipe at line end while inspection is carried out 

visually form other end. 

10.3 Coating Thickness 

a. The coating thickness shall be determined by taking atleast 10 

measurement at locations uniformly distributed over the length and 

periphery of each pipe. In case of weld pipes, five of the above readings 

shall be made at the apex of the weld seam, uniformly distributed over the 

length of the coated pipe. All the readings must meet the minimum 

requirements. However, localised coating thickness of less than the 

permissible minimum thickness can be tolerated on the condition that it 

does not attain a total extent of more than 5cm 2 per meter length of 

coated pipe, and the actual coating thickness does not drop more than 

10% below the permissible minimum coating thickness at these locations. 

The frequency of thickness measurement as stated above shall be initially 

on every pipe, which shall be further reduced depending upon consistency 

of results, at the sole discretion of COMPANY’s representative. Resultsof all 

measurement shall be recorded. 

b. Thickness of epoxy and adhesive shall be measured at the beginning of 

each shift and whenever the plant re-starts after any stoppage for 

compliance. Coating of epoxy and adhesive on portion of pipe required for 

this purpose, stripping and recoating of such partly coated pipe shall be at 

CONTRACTOR’s expense. 



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c. Coated pipes not meeting the above requirements shall be rejected. The 

CONTRACTOR shall remove the entire coating and the pipe shall be 

recycled to the cleaning and coating operations as per the approved 

procedure and shall be to CONTRACTOR’s expenses. 

10.4 Holiday Detection 

a. Each coated pipe length shall be checked over 100% of coated surface by 

means of a “holiday detector” of a type approved by COMPANY for 

detecting holidays in the finished coating. 

b. The holiday detector shall be a low pulse DC full circle electronic detector 

with audible alarm and precise voltage control with DIN VDE 0433 Part 2. 

The set voltage for inspection shall be 25 kV. Travel speed shall not 

exceed 300 mm/s. 

c. CONTRACTOR shall calibrate the holiday detector at least once every 4 

hours of production. CONTRACTOR shall have necessary instruments or 

devices for calibrating the holiday detector. 

d. Any pipe coating shall be rejected if more than 1(one) holiday & area more 

than 100 cm 2 in size are detected in its length attributable to coating 

process. 

e. Holidays which are lesser in number and size than those mentioned in (d) 

above, shall be repaired in accordance with a approved procedure and 

shall be to CONTRACTOR’s expense. 

10.5 Bond Strength Test 

a. CONTRACTOR shall conduct bond strength test for composite coating as 

per clause 5.3.3 (a) of this specification. A minimum of 65mm length shall 

be peeled. First 20mm and last 20mm shall not be counted for assessment 

of bond strength. 

b. The frequency of test for cut back portions shall be one pipe in every 

fifteen(15) pipes coated and for middle of pipe shall be one pipe in every 

sixty(60) pipes coated or one pipe per shift whichever is higher. On each 

selected pipe, bond strength shall be performed for each specified 

temperature. Test shall be performed at each cut back portion and one in 

the middle of pipe. The system shall disbond/ separate cohesively either 

in adhesive layer or in polyethylene layer. Majority of the peeled off area 

on the pipe shall show presence of adhesive. Disbondment/ separation at 

epoxy to steel interface or epoxy/ adhesive interface or adhesive/ 

polyethylene interface shall not be permitted. The failure mode shall be 

recorded for each test. 



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c. In case the above tests do not comply with the above requirement, 

CONTRACTOR shall test all the preceding and succeeding coated pipes. If 

both pipes pass the test, then the remainder of the pipe joints in that shift 

shall be deemed satisfactory. If either pipe fails to meet the specified 

requirements, all pipes coated during the shift shall be tested until the 

coating is provided acceptable. Rejected coated pipes shall be stripped and 

re-coated in accordance with approved procedure, at CONTRACTOR’s 

expense. 

d. The frequency of bond strength test as per para 10.5(b) for cut back 

portion may be reduced depending upon the consistently of result to one 

pipe in every twenty five(25) instead of every fifteen pipes, at the sole 

discretion of the COMPANY Representative. 

10.6 Impact Strength 

a. Impact resistance test shall be conducted as per clause 5.3.3 (b) of this 

specification. Initially the frequency of test shall be 2(two) coated pipes 

per shift, which may be further reduced and/ or waived depending upon 

consistently acceptable results at the sole discretion of COMPANY’s 

representative. 

b. Minimum thirty(30) impacts located equidistant along the length of coated 

pipe shall be performed. 

c. Immediately after testing, the test area shall be subjected to holiday 

detection at the same voltage as used prior to impact strength test. The 

pipe shall be rejected if any holiday is noted in the test area. 

d. In case of test failure, retesting and disposal of coated pipe shall be as per 

10.5(c) above. 

10.7 Indentation Hardness 

a. Indentation hardness test shall be as per clause 5.3.3 (c) of this 

specification. The frequency of test shall be initially 2(two) coated pipes 

per shift which shall be further reduced to one test each on 2 coated pipes 

per week at random after 1 week of consistently acceptable results. Two 

samples for each temperature shall be taken from the cut back portion of 

coated pipe and one in middle of the pipe for this test. 

b. In case of test failure, retesting and disposal of coated pipe shall be as per 


10.8 Air Entrapment Test 

a. Strips from bond strength tests or coated pipe may be used to help 

determine the porosity of the finished coating. Strip shall be also cut from 



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longitudinal weld (if applicable) at cut back portion and examined for the 

presence of voids. 

b. Bond strength strip shall be viewed from the side and at the failure 

interface. At the pipe bond strength test location, utility knife shall be 

used to cut the edge of the coating to a 45° angle and view with a 

microscope. Similar examination shall be done in the coating cut back 

area. 

c. One sample each either on the bond strength strip or coated pipe and strip 

cut from the longitudinal weld (if applicable) shall be examined for air 

entrapment per shift. Strips shall be viewed from the side. 

d. All examination shall done using a 30X magnification hand-held 

microscope. The polyethylene and adhesive layers shall have no more than 

10% of the observed area taken up with air entrapment (porosity or 

bubbles). Air entrapment shall not occupy more than 10% of the thickness 

in each case. Bubbles shall not link together to provide a moisture path to 

the epoxy layer. 

e. In case of test failure, retesting and disposal of coated pipe shall be as per 


10.9 Degree of Cure 

a. Epoxy film samples shall be removed from cut back portion of the coated 

pipe using hammer and cold chisel and the samples shall be taken for cure 

test using DSC procedure. Care shall be taken to remove the samples of 

full film thickness avoiding inclusion of steel debris. Glass transition 

temperature differential (∆Tg) and % cure (∆H) shall comply the specified 

requirements. 

b. Frequency of this test shall be once per shift. Pipe shall be selected 

randomly by COMPANY Representative during the middle of a shift. 

Suitable provisions/ arrangements as per the instructions of COMPANY 

Representative shall be made by the CONTRACTOR for this purpose. 

c. In case of test failure, production carried out during the entire shift shall 

be rejected, unless the CONTRACTOR proposes a method to establish the 

compliance with the degree of cure requirements of all pipes coated during 

that shift. 

10.10 Epoxy Layer Adhesive Test 

a. Adhesion of epoxy layer shall be determined at ambient temperature by 

the “St Andrews Cross” method i.e. by cutting two straight lines through 

the epoxy layer with a sharp knife. The incisions shall intersect at an angle 

of 30°/ 150°. The epoxy coating shall resist disbondment from the steel 



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when attempts are made to flick/ lift the coating from the 30° angle with a 

sharp knife. 

b. Frequency of this test shall be once per shift. The test shall be carried out 

at the cut back portion of the pipe from which the Degree of Cure test has 

been carried out as per para 10.9 above. 

c. In case of test failure, retesting and disposal of coated pipe shall be as per 


10.11 Cathodic Disbondment Test 

a. 48 hours CD test shall be conducted as per clause 5.3.3. (h) of this 


b. The frequency of this test shall be once in every two weeks or one test 

representing each batch of epoxy powder used, whichever is more 

frequent. 

c. In case the test fails to conform to the specified requirement, at the option 

of the CONTRACTOR, all pipes coated after the previous acceptable test 

and prior to next acceptable test shall be rejected or the test shall be 

repeated or the shall be repeated using two additional samples taken from 

the same end of the affected pipe. 

When both retests conform to the specified requirement, the lot of pipes 

shall be accepted. When one or both the retests fail to conform to the 

specified requirement, all coated pipes after previous acceptable test and 

prior to next acceptable shall be rejected. All rejected pipes shall be 

stripped, re-cleaned and re-coated. COMPANY may consider a further 

retest program to determine whether any of the affected pipe meet the 

criteria for acceptance upon written request by the CONTRACTOR. 

10.12 Damages occurring to pipe coating during above tests shall be repaired in 

accordance with approved coating repair procedure. 

10.13 Repairs occurring on account of the production test are however excluded from 

above mentioned limitations at para 10.4 (d) above. 

10.14 COMPANY, reserves the right to perform inspection and witness tests on all 

activities concerning the pipe coating operations starting from bare pipe to 

finished coated pipe ready for dispatch and also testing of raw materials. 

CONTRACTOR shall give reasonable notice of time and shall provide without 

charge reasonable access and facilities required for inspection to the COMPANY’s 

Representative. Inspection and tests performed or witnessed by COMPANY’s 

Representative shall in no way relieve the CONTRACTORs obligation to perform 

the required inspection and tests. 



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10.15 In case rate of defective or rejected pipes and/ or samples tests are 10% or more 

for a single shift (typically 8 hours), CONTRACTOR shall be required to stop 

production and carry out a full and detailed investigation and shall submit findings 

to COMPANY for approval. CONTRACTOR shall recommence the production only 

after getting the written permission from COMPANY. 

Under no circumstances any action or omission of the COMPANY’s representative 

shall relieve the CONTRACTOR of his responsibility for material and quality of 

coating produced. No pipes shall be transported from the coating plants unless 

authorised by COMPANY in writing. 

11.0 HANDLING, TRANSPORTATION AND STORAGE 

11.1 The CONTRACTOR shall be fully responsible for the pipe and for the pipe 

identification marking from the time of “taking over” of bare pipe from COMPANY 

until such time that the coated line pipes are `handed over’ and/ or installed in 

the permanent installation as the case may be according to the provisions of the 

Contract. 

At the time of “taking over” of bare pipes CONTRACTOR shall inspect and record 

all the relevant details referred above including pipe defects in the presence of 

COMPANY. All pipes shall be checked for bevel damages, weld seam height, 

dents, gouges, corrosion and other damages. COMPANY Representative shall 

decide whether pipe defects/ damages are suitable for repair. Damage to the 

pipes which occur after the CONTRACTOR has taken delivery such as dents, flats, 

or damage to the weld ends shall be cut off or removed and pipes rebevelled and 

repaired again as necessary. The cost of this work, as well as that of the pipe lost 

in cutting and repair shall be to the CONTRACTOR’s account. All such works shall 

be carried out after written approval of the COMPANY. Any reduction in length 

shall be indicated in the CONTRACTOR’s pipe tracking system. 

11.2 The CONTRACTOR shall unload, load, stockpile and transport the bare pipes 

within the coating plant(s) using suitable means and in a manner to avoid damage 

to pipes. 

The CONTRACTOR shall stockpile the bare pipes at the storage area of the 

coating plant. The CONTRACTOR shall prepare and furnish to COMPANY a 

procedure/ calculation generally in compliance with API RP-5L1 for pipe stacking, 

which shall be approved by COMPANY prior to commencement. 

11.3 The CONTRACTOR shall load, unload, transport and stockpile the coated pipes 

within the coating plant using approved suitable means and in a manner to avoid 

damage to the pipe and coating. The procedure shall be approved by COMPANY 

prior to commencement of work. 

11.4 Coated pipes may be handled by means of slings and belts of proper width 

(minimum 60mm) made of non-abrasive/ non-metallic materials. In this case, 

pipes to be stacked shall be separated row by row to avoid damages by rubbing 



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the coated surface in the process of taking off the slings. Use of round sectional 

slings are prohibited. Fork lifts may be used provided that the arms of the fork lift 

are covered with suitable pads preferably rubber. 

11.5 Bare/ coated pipes at all times shall be stacked completely clear from the ground 

so that the bottom row of pipes remain free from any surface water. The pipes 

shall be stacked at a slope so that driving rain does not collect inside the pipe. 

Bare/ coated pipes may be stacked by placing them on ridges of sand free from 

stones and covered with a plastic film or on wooden supports provided with 

suitable cover. This cover can, for example, consist of dry, germ free straw with a 

plastic film, otherwise foam rubber may be used. The supports shall be spaced in 

such a manner as to avoid permanent bending of the pipes. 

Stacks shall consist of limited number of layers such that the pressure exercised 

by the pipe’s own weight does not cause damages to the coating. CONTRACTOR 

shall submit calculations for COMPANY approval in this regard. Each pipe section 

shall be separated by means of spacers suitably spaced for this purpose. Stacks 

shall be suitably secured against falling down and shall consist of pipe sections 

having the same diameter and wall thickness. The weld seam of pipes shall be 

positioned always in a manner so as not to touch the adjacent pipes. 

The ends of the pipes during handling and stacking shall always be protected with 

bevel protectors. 

11.6 The lorries used for transportation shall be equipped with adequate pipe supports 

having as many round hollow beds as there as pipes to be placed on the bottom 

of the lorry bed. Total width of the supports shall be at least 5% of the pipe 

length and min. 3 Nos. support shall be provided. These supports shall be lined 

with a rubber protection and shall be spaced in a manner as to support equal load 

from the pipes. The rubber protection must be free from all nails and staples 

where pipes are in contact. The second layer and all following layers shall be 

separated from the other with adequate number of separating layers of protective 

material such as straw in plastic covers or mineral wool strips or equivalent, to 

avoid direct touch between the coated pipes. 

All stanchions of lorries used for transportation shall be covered by non-abrasive 

material like rubber belts or equivalent. Care shall be exercised to properly cover 

the top of the stanchions and other positions such as reinforcement of the truck 

body, rivets, etc. to prevent damage to the coated surface. Slings or non-metallic 

straps shall be used for securing loads during transportation. They shall be 

suitable padded at the contact points with the pipe. 

11.7 Materials other than pipes and which are susceptible of deteriorating or suffering 

from damages especially due to humidity, exposure to high thermal excursions or 

other advers weather conditions, shall be suitably stored and protected. 

Deteriorated materials shall not be used and shall be replaced at CONTRACTOR’s 

expenses. These materials, shall always be handled during loading, unloading and 

storage in a manner so as to prevent any damage, alteration and dispersion. 



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When supplied in containers and envelopes, they shall bot be dropped or thrown, 

or removed by means of hooks, both during the handling operations till their 

complete use. During unloading transport and utilization, any contact with water 

earth, crushed stone and any other foreign material shall be carefully avoided. 

CONTRACTOR shall strictly follow Manufacturer’s instructions regarding storage 

temperature and methods for volatile materials which are susceptible to change in 

properties and characteristics due to unsuitable storage. If necessary the 

CONTRACTOR shall provide for a proper conditioning. 

11.8 In case of any marine transportation of bare/ coated line pipes involved, the same 

shall be carried out in compliance with API RP 5LW. CONTRACTOR shall furnish all 

details pertaining to marine transportation including necessary drawings of cargo 

barges, storing/ stacking, sea fastening of pipes on the barges/ marine vessels to 

the COMPANY for approval prior to undertaking such transportation works. In 

addition CONTRACTOR shall also carry out requisite analyses considering the 

proposed transportation scheme and establish the same is safe and stable. Ondeck 

overseas shipment shall not be allowed. 

12.0 REPAIR OF COATING 

CONTRACTOR shall submit to COMPANY, its methods and materials proposed to 

be used for executing a coating repair and shall receive approval from COMPANY 

prior to use. In open storage the repair coating materials must be able to 

withstand a temperature of atleast +80°C, without impairing its serviceability and 

properties. CONTRACTOR shall furnish manufacturer’s test certificates for the 

repair materials clearly establishing the compliance of the repair materials with 

the applicable coating requirements indicated in this specification. 

All pipe leaving coating plant, shall have sound external coating with no holiday 

porosity on 100% of the surface. 

Defects, repairs and acceptability criteria shall be as follows : 

• Pipes showing porosities or very small damage not picked up during 

holiday test and having a surface less than 0.5 cm 2 or linear damage (cut) 

of less than 3 cm shall be repaired by stick welding using material of same 

quality. 

• Damages caused to coating by handling such as scratches, cuts, dents, 

gouges, not picked up during holiday test, having a total reduced thickness 

on damaged portion not less than 2.0mm and an area not exceeding 20 

cm 2 shall be rebuild by heat shrink patch only and without exposing to 

bare metal. 

• Defects or size exceeding above mentioned area or holidays of width less 

than 300 mm shall be repaired with heat shrinks repair patch by exposing 

the bare metal surface. 



Delhi 



SPECIFICATION 

FOR 




13.0 MARKING 

• Defects exceeding the above and in number not exceeding 2 per pipe and 

linear length not exceeding 500mm shall be repaired using heat shrinkable 

sleeves of HTLP80 or equivalent. 

• Pipes with bigger damage shall be stripped and recoated. 

• In case of coating defect close to coating cut back, CONTRACTOR shall 

remove the coating throughout the entire circumference of the pipe down 

to the steel surface and increase the coating cut back length. Now if the 

coating cut back exceeds 140mm of linear length of pipe then the coating 

shall be repaired by the use of heat shrinkable sleeves thereby making up 

the coating cut back length of 120mm. 

Not withstanding the above, under no circumstances, if the defects exceeds 

70mm from the original coating cut back length, the entire coating shall be 

removed and the pipe shall be recycled through the entire coating procedure. 

Irrespective of type of repair, the maximum nos of repair of coating shall be as 

follows : 

• Holiday repair of size ≤ 100 cm 2 attributable to process of coating 

application shall be maximum of one per pipe. 

• In addition to the above, defects to be repaired by heat shrink patch/ 

sleeve shall be maximum 2(two) per pipe. 

Defects exceeding the above limits shall cause pipe coating rejection, stripping 

and recoating. The above is exclusive of the repairs warranted due to testing as 

per this specification. 

All repairs carried out to coating for whatever reason shall be to the account of 

CONTRACTOR. 

Cosmetic damages occurring only in the Polyethylene layer only need not be 

repaired by exposing upto steel surface, as deemed fit by the COMPANY 

representative. In any case the CONTRACTOR shall establish his material, 

methods and procedure of repair that results in acceptable quality of product by 

testing and shall receive approval from COMPANY prior to use. 

Testing of repairs shall be in the same form as testing coating. All repairs shall 

result in a coating thickness no less than the parent coating thickness. 

CONTRACTOR shall test repairs to coating as and when required by COMPANY. 

CONTRACTOR shall place marking on the outside surface of the coating at one 

end of the coated pipe, and marking shall indicate, but not limited to the following 

information: 



Delhi 



SPECIFICATION 

FOR 




a. Pipe number, Heat number 

b. Diameter & Wall Thickness 

c. Coated Pipe Number 

d. Colour band 

e. Any other information considered relevant by COMPANY. 

f. Pipe Manufacturer Name 

g. Inspection Mark/ Punch 

CONTRACTOR shall obtain prior approval on making procedure to be adopted 

from the COMPANY. 

14.0 QUALITY ASSURANCE 

14.1 The CONTRACTOR shall have established within the organisation and, shall 

operate for the contract, a documented Quality System that ensures that the 

requirements of this specification are met in all aspects. The Quality System shall 

be based upon ISO 9001/2 or equivalent. 

14.2 The CONTRACTOR shall have established a Quality Assurance Group within its 

organisation that shall be responsible for reviewing the Quality System and 

ensuring that it is implemented. 

14.3 The CONTRACTOR shall submit the procedures that comprise the Quality System 

to the COMPANY for agreement. 

14.4 The CONTRACTOR’s Quality System shall pay particular attention to the control of 

Suppliers and sub-contractors and shall ensure that the requirements of this 

specification are satisfied by the Suppliers and Sub-contractors operating Quality 

system in their organisation. 

14.5 The CONTRACTOR shall, prior to the commencement of work, prepare and issue a 

Quality plan for all of the activities required to satisfy the requirements of this 

specification. The plan shall include any sub-contracted work, for which the subcontractors 

Quality plans shall be submitted. The plan shall be sufficiently detailed 

to indicate sequentially for each discipline the requisite quality control, inspection , 

testing and certification activities with reference to the relevant procedures and 

the acceptance standards. 

14.6 The CONTRACTOR’s Quality system and associated procedures may, with due 

notice, be subject to formal audits. The application of quality control by the 

CONTRACTOR will be monitored by the COMPANY Representatives who will 

witness and accept the inspection testing and associated work required by this 




Delhi 



SPECIFICATION 

FOR 




Coating combination/ Material Pre-qualification 

Coating material Manufacturers acceptable to Company are as follows : 

Epoxy : BASF/Basepox 

Jotun 

3M 

Dupont 

Bitumese Speciaux, France 

Adhesive : BASF/Basell 

Boresalis 

Dupont 

SK Corporation 

Polyethylene : Novacorp 

BASF/Basell 

Boresalis/Borouge 

SK Corporation 

Malaysian Polyethylene Malaysia (ETILINAS) 

ELF ATOCHEM, FRANCE 

GAIL (India) Ltd. 

The bidder shall propose coating material combination indicating specific grade of epoxy, 

adhesive and polyethylene manufactured by any of the above mentioned material Manufactures 

and submit the details as per Table 1. The proposed combination shall be capable of meeting 

the functional requirements and properties of coating indicated in this specification. The coating 

combination must have been tested and pre-qualified by an independent internationally 

recognised test laboratory/ agency by actual application on minimum 5 pipes and must have 

been successfully fulfilled the tests as indicated in Table 2. After the procurement of raw 

materials by the bidder, the same shall also be tested by an independent test laboratory of 

national / international repute. The combination proposed by the bidder must have been used in 

previous pipeline project and the pipelines shall be in satisfactory operation for at least a period 

of five years, reckoned from the date of bid submission. 



Delhi 



SPECIFICATION 

FOR 





Table – 1 

Manufacturers Data on Coating System and Materials 

Coating System data Epoxy Adhesive Polyethylene Compound 

Coating System Designation Manufacturer’s Name Manufacturer’s Name Manufacturer’s Name 

Coating Material 

combination (s) 

Product Trade Name Product Trade Name Product Trade Name 

Technical Data Sheet Technical Data sheet Technical Data sheet Technical Data sheet 

covering all properties as covering all properties covering all properties as covering all properties as 

per specifications 

as per specification per specification 

per specification 

Laboratory Test Reports in Laboratory Test Laboratory Test Reports Laboratory Test Reports 

support of technical data Reports in support of in support of technical in support of technical 

technical data 

data 

data 

Certificate of Compatibility Certificate of 

Certificate of 

Certificate of 

of proposed materials Compatibility with Compatibility with epoxy Compatibility with 

Adhesive 

and polyethylene 

Adhesive 

Application Procedure Storage Instructions Storage Instructions Storage Instructions 

Shelf Life Shelf Life Shelf Life 

Safety Data Sheets 

and HSE instructions 

Table – 2 

Safety Data Sheets and 

HSE instructions 

Safety Data Sheets and 

HSE instructions 

S.No Properties Frequency (1) 

Applicable Requirement 

1. Bond Strength 5 Pipes Para 10.5 

2. Impact Strength 3 Pipes Para 10.6 

3. Indentation hardness 5 Pipes Para 10.7 

4. Elongation at Failure 3 Pipes Para 5.3.3(d) & 7.5.2(d) 

5. Cathodic Disbondment 2 Pipes Para 5.3.3(h) & 7.5.2(e) (2) 

6. Degree of Cure 2 Pipes Para 5.3.3(i) & Para 10.9(a) 

7. Coating Resistivety 2 Pipes Para 5.3.3 (e) (3) 

8. Heat Ageing 2 Pipes Para 5.3.3 (f) (3) 

9. Light Ageing 2 Pipes Para 5.3.3 (g) (3) 

1) Test frequency shall be as indicated in this table and the frequency indicated in the applicable 

paragraphs of the specific are not applicable. 

2) Two tests each on the selected pipes i.e 30 days and 48 hours test shall be carried out on each test 

pipe. 

3) Previously carried out tests in an independent laboratory of national / international recognition on PE 

top coat are also acceptable.

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\PE Coaing Technical Input.doc 


TECHNICAL INPUT FOR 3-LAYER SIDE-EXTRUDED 

POLYETHYLENE COATING OF PIPES 

(MR. NO. : MEC/23J8(PART-C)/05/21/M/001/S012B) 


DELHI - 110 092

1.0 PROJECT DESCRIPTION 

2.0 SCOPE OF WORK 


4.0 OTHER REQUIREMENTS 

5.0 DOCUMENTATION 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\PE Coaing Technical Input.doc 

TABLE OF CONTENTS

1.0 PROJECT DESCRIPTION 

M/s GAIL (India) Limited propose to install Natural Gas Supply Pipeline and 

associated distribution systems for supplying gas to IPPs in K.G. Basin. 

2.0 SCOPE OF WORK 

The Bidder’s scope of work for the PE work shall consist of but not limited to the 

following : 

2.1 Cleaning and surface preparation of pipes, application of epoxy powder, 

adhesive and polyethylene compound for 3-layer side extruded polyethylene 

coating on bare line pipes, carrying out inspection and testing, repairing of 

coating defects and re testing as per Specification attached with this tender. 

2.2 The minimum thickness of finished 3-Layer side extruded “HIGH DENSITY 

POLYETHYLENE” coating for of 18” dia. line pipes shall be 2mm. 

2.3 Inspection and repair of damaged pipes, bevelled end defects and damaged coating 

(including supply of repair coating materials) noticed at the time of handing over of 

bare/ coated line pipes to Owner in the presence of Owner’s Representative. 


3.1 Bidder shall be responsible for the procurement and supply, in sequence and at 

the appropriate time, of all materials and consumables required for completion 

of the works as defined in this document. All materials supplied by the 

Contractor shall be strictly in accordance with the requirements of relevant 

applicable Owner’s specification enclosed with the tender and shall be procured 

from Owner’s approved Vendors/ Manufacturers. Material to be supplied by the 

Contractor shall include but not limited to the following : 

a. All materials and equipment required for repair, rebeveling and cutting 

out of defects of bare pipes. 

b. All consumables, equipment required for surface cleaning/ preparation 

etc. 

c. All materials, equipment, consumables as required for external 3-layer 

side extruded polyethylene coating of Pipes. 

d. All materials and equipment required for conducting all types of 

inspection and tests. 

e. All materials and equipment required for repairing of defects of coated 

pipes and thereafter re testing. 

f. All equipment, tools, tackles, devices required for loading, handling, 

coated pipes. 

g. Any other items not mentioned above but are required for timely 

completion of work in all respect. 

4.0 OTHER REQUIREMENTS 

4.1 The coating plant, equipment, machinery and other facilities shall be in good 

operating condition to meet the job requirement of quality and production. 

Worn out or improvised plant is not acceptable. The coating plant for the work 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\PE Coaing Technical Input.doc Page 1 of 2

shall be of size and capacity that shall be suitable for the scale of the work 

production rate & time schedule. 

4.2 All handling, loading, unloading, stacking/ storing shall be done in such a 

manner so as to minimize mechanical damages and corrosion and as per the 

procedure approved by the Owner. 

• All handling shall be done with slings or padded hooks. 

• Trailers shall be cleaned of debris or any other substance that might 

damage the pipe. 

• Suitable timber and other dunnage shall be used to protect the pipes 

against the damage during transit. 

• Loading shall be done in accordance with API RP 5L1 and procedure 

approved by the Owner. 

5.0 DOCUMENTATION 

At the time of bidding, following documents shall be furnished as a minimum, 

along with the bid. 

a) Reference list of the previous 3-layer side extruded polyethylene coating 

projects carried out in the last five years giving following minimum 

information : 

Name of project including year, client, location, pipe size, length, 

material, scope of work performed, client’s contact person, contract 

value, coating material and coating yard. 

b) Layout of existing/ proposed coating yard, its location description of 

facilities at plant, proposed modifications, if any, and details of major 

equipment viz. make, model, number, capacity, etc. 

c) Concurrent commitments at the proposed coating yard. 

d) In case of bidders who have not supplied coated pipes to GAIL in last 

five years, such bidder shall furnish the following :- 

i) Details of proposed raw materials i.e. epoxy, adhesive and polyethylene 

compound, manufacturers details of coating materials giving following 

minimum information : 

Name of the proposed manufacturers, authorisation letter from 

manufacturers, descriptive technical catalogues of all materials and list 

of similar previous supplies including year, name of the project, client 

and contact person. 

ii) Compatibility certificate for the proposed combination of epoxy, 

adhesive and polyethylene compound from their respective 

manufacturer. 

e) In case of bidders who have supplied coated steel pipes to GAIL in the 

last five years, they may not be required to furnish the detail of raw 

material combination alongwith the bid. However, they shall confirm 

adherence to coating specification/ combination as per the bid document 

during bidding stage itself, and shall furnish above documents for 

approval prior to start of coating work, in case of order awarded to 

them. 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\PE Coaing Technical Input.doc Page 2 of 2

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\QAP - 3-Layer - 012.doc 


QUALITY ASSURANCE PLAN 

FOR 3-LAYER SIDE EXTRUDED 

POLYETHYLENE COATING OF PIPES 

(MR No. : MEC/23J8(PART-C)/05/21/M/001/S012B) 


DELHI - 110 092

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\QAP - 3-Layer - 012.doc 

I N D E X 

Sl.No. Subject Page No. 

1.0 INTRODUCTION 

2.0 SCOPE OF WORK BY TENDERER 

3.0 GUIDELINES TO TENDERERS FOR PREPARATION 

OF QUALITY PLAN 

4.0 FORMATS FOR QUALITY PLAN 

5.0 FORMAT FOR INSPECTION AND TEST PLAN (ITP)

1.0 INTRODUCTION 

2.0 SCOPE 

This specification establishes the Quality Assurance (QA) requirements to be met by 

the item rate contractor during execution of work. 

Requirements stipulated in this specification conform to ISO:9002 & IS:14002. 

2.1 Prior to award of Contract 

Following documents shall be submitted along with the tender : 

Quality Assurance Manual of their organisation covering : 

• Policy statement QA indicating approach for achieving quality assurance. 

• Organisation structure for QA/QC programme. 

• Responsibility and authority of personnel for QA/QC programme. 

• Communication system. 

• List of written down job procedure they have for major activities for the 

work put to tender. 

• Incoming material control, storage and transportation procedure. 

• Procedure to deal with non conformance in case these crop up during job 

execution. 

2.2 After award of Contract (Prior to start of job) 

2.2.1 a) Quality Plan 

The sample formats for preparation of the quality plan is enclosed. 

Contractor shall list all the major activities in their area/ scope and prepare 

the quality plan accordingly. 

2.2.2 b) Inspection and Test Plan (ITP) for detailed activity of the job. 

Sample format of ITP is enclosed. Contractor shall develop ITPs for job 

activities in his scope in line with sample ITP format. 

2.2.3 The Contractor shall obtain approval of his detailed quality assurance programme 

and quality plans for all the works under his scope. This quality programme is 

tailored system which Contractor shall be using for the job giving details of JOB 

PROCEDURES and construction technologies for all major activities. 

2.2.4 During Job Execution 

Implement agreed Quality Assurance Programme and submit the reports as per the 

programme. 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\QAP - 3-Layer - 012.doc Page 1 of 4

QUALITY PLAN 

GUIDELINES TO BIDDERS FOR PREPARATION FOR QUALITY PLAN 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\QAP - 3-Layer - 012.docPage 2 of 4 

ANNEXURE-I 

One of the special features of this specification is "Quality Plan". The format is designed to include 

important informations such as : 

• List of all major activities i.e. Work Break-down Structure (WBS). 

• Job Procedure Number for each activity covering construction technology to be adopted. 

• Responsibility. 

• Controls for Quality at Contractors end. 

• Inspection and Test requirement for clients witness. 

• Record generation. 

While finalising the "QUALITY PLAN" for the particular job following is the sequence of actions. 

Break-down of work into activities 

Break-down the entire project work under the scope into smallest identifiable activity, in sequence. 

The column "Activity Description" is provided for the purpose. 

Decide Work Method 

Well laid down, step-by-step procedure totally covering the activity are to be specified under the 

column "Procedure No". Applicable Standards can also be specified under this column. 

Code of conformance as per tender specification can be specified under the column provided. 

Assign Responsibilities 

Under the "Performer" column, the job performer level is identified as per experience level and 

designation. 

Decide Internal Controls 

The type of internal controls that shall exercise to produce Quality shall be identified under 

columns : 

• Checker 

• Reviewer/ Approver. 

Decide number of Inspection & Test Plans (ITPs) and Record Requirements. 

Under this column the number of Inspection & Test Plan, that shall be developed by Contractor 

shall be indicated.

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\QAP - 3-Layer - 012.docPage 3 of 4 

QUALITY PLAN 

Company Name : Client : Project : 

Activity 

Description 

General Contractor's Performing Functions/ Responsibility Owner / 

MECON 

Inspection/ 

Record 

Functions 

Procedure 

Number 

Performer Checkers Reviewer/ 

Approver 

Remarks

Sl. 

No. 

INSPECTION AND TEST PLAN 

Activity Examination by 

Contractor 

Inspection by 

MECON 

Records to be 

submitted by 

Contractor 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\QAP - 3-Layer - 012.doc Page 4 of 4


TENDER FOR 





SECTION – VII 

BID FORM



TENDER FOR 




Section – VII 

BID FORM – PART - II 

To: (Name and address of PURCHASER) Date: 

Gentlemen, 

Having examined the Conditions of Contract and Specifications including Addenda Nos. 

(Insert Numbers) the receipt of which is hereby duly acknowledged, we the undersigned, 

offer to supply and deliver (Description of Goods and Services) in conformity with the said 

Drawings, Conditions of Contract and specifications for the same for (total bid amount in 

words and figures*) or such other sums as may be ascertained in accordance with the 

Schedule of Prices attached herewith and made part of this bid. 

We undertake, if our bid is accepted, complete delivery of ……………………………………………… 

as agreed and specified in the IFB document. If our bid is accepted, we will obtain the 

guarantee of a Bank in a sum not exceeding (10)% of the Contract price for the due 

performance of the Contract. 

We agree to abide by this bid for a period of 4(four) months from the date fixed for bid 

opening under Instructions to Bidders and it shall remain binding upon us and may be 

accepted at any time before the expiration of that period. 

Until a formal contract is prepared and executed, this bid, together with your written 

acceptance thereof in your notification of award (Fax of Intent) shall constitute a binding 

Contract between us. 

We understand that you are not bound to accept the lowest or any bid, you may receive. 

Dated this Day of 2006 

Witness 

Address 

Signature 

Signature 

…………………………………. 

In the capacity of Duly authorized to sign bid for and on behalf of 

(*) : Quoted amount should be filled in this bid form when it is being submitted 

as part of price bid i.e. being enclosed with Part – II of the bid.



TENDER FOR 




SECTION-IX 

PRICE SCHEDULE/ 

SCHEDULE OF RATES (SOR)

PRICE SCHEDULE FOR INDIAN BIDDER (OPTION-I) 

NAME OF BIDDER : FORMAT SOR-IB 

BID DOCUMENT NO. : 05/51/23J8(PART-C)/GAIL/012B 

BID TITLE : 

ITEM : BARE LINE PIPES 

Item 

No. 

Description 

Qty. 

(m) 

Unit Price Ex-works 

including cost of 

imported raw material/ 

components & Project 

Rate of Customs Duty 

thereon, pkg/ fwd, but 

excluding ED & ST on 

finished goods 

Per Unit 

Terminal 

Excise 

Duty 

Per Unit 

Sales Tax 

(Without 

'C' Form) 

Per Unit FOT 

Despatch 

Point 

(4+5+6) 

Total FOT 

Despatch 

Point 

(3x7) 

Total Exworks 

(3x4) 

(Price in Rupees) 

CIF value of 

Imp. Comp. 

Per Unit 

Included in 

(4) 

Total CIF value 

of Imp. Comp. 

Included 

(3x10) 

Domestic value 

addition (in 

percentage) 

against the item 

if availing price 

preference as 

per Bid 

Document 

(1) 

Manufacture & Supply of Bare Line Pipes as per API 5L, 

March,2004 (43 

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 

rd (2) 

edition) , PSL-2 and Technical Specification 

No. MEC/TS/05/21/012D, Rev-0 


Pipe Size (OD), W.T. Ends Std./ Grade Manufacturing 

Inch (mm) (mm) Code Process 

(EW/ SAW) 

(Ref. Note - 1) 

A 18” (457.0) 6.4 PE API 5L X-70 22,700 

B 18” (457.0) 8.7 PE API 5L X-70 6,000 

C 18” (457.0) 10.3 PE API 5L X-70 2,800 

Please indicate 

Excise Duty @ ……………… 

CST @ ……… Without issuance of any concessional Form 

Local Sales Tax / VAT @ ……… Without issuance of any concessional Form 

Note: 

1. Bidder shall indicate the selected and offered manufacturing process in the column no. (2). For any item, only one type of manufacturing process shall be indicated by the bidder. 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - LINEPIPE (OPTION-I)-R1 Indian Signature of Bidder with Company Seal Page 1 of 1

PRICE SCHEDULE FOR FOREIGN (NON-INDIAN) BIDDERS (OPTION-I) 

NAME OF BIDDER : FORMAT SOR-IA 


BID TITLE : Bidder Must Indicate: 

ITEM : BARE LINE PIPES Port of Loading…………………………………………. 

Port of Entry Considered …………………………….. 

Item Description 

Quantity Currency Unit Price Total Price 

Estimated Shipping 

No. (meter) FOB Port of 

Loading 

CFR Port of Entry CIF Port of 

Mumbai/ /Kandla Entry Mumbai/ 

Port /Kandla Port 

FOB Port of 

Loading 

(3x5) 

CFR Mumbai/ 

/Kandla Port 

(3x6) 

CIF Mumbai/ 

/Kandla Port 

(3x7) 

(1) 

Manufacture & Supply of Bare Line Pipes as per API 5L, 

March,2004 (43 

(3) (4) (5) (6) (7) (8) (9) (10) (11) 

rd (2) 

edition) , PSL-2 and Technical Specification 

No. MEC/TS/05/21/012D, Rev-0 


Pipe Size (OD), W.T. Ends Std./ Grade Manufacturing 


(EW/ SAW) 


A 18” (457.0) 6.4 PE API 5L X-70 22,700 

B 18” (457.0) 8.7 PE API 5L X-70 6,000 

C 18” (457.0) 10.3 PE API 5L X-70 2,800 

Indian Agency commission : Indicate percentage of FOB price. 

Note: 

1. Estimated Shipping Weight & Volume to be furnished separately for each item. Where more than one consignment is envisaged against any quoted 

item/qty, the Bidder shall advise the estimated number of consignments with estimated shipping Wt./ Vol. of each such consignment. 

2. Complete typed matter/contents of the price schedule/price attachments including shipping Wt./Vol., shall be made available in the unpriced offer, 

with prices blanked out. 


D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - LINEPIPE (OPTION-I)-R1 Non-Indian Signature of Bidder with Company Seal Page 1 of 1 

Weight & 

Volume 

of the Item

SCHEDULE OF RATES 

(OPTION-II) 

Page 1 of 2 

Name of Bidder : Format SOR-II 

Bid Doc. No. : 05/51/23J8(PART-C)/GAIL/012B 

Item : PE Coating of Bare Line Pipe and Transportation 


PLACE OF TAKING THE DELIVERY OF BARE PIPES: MUMBAI PORT 

Item 

No. 

Description of Items Unit Finish Qty. All Inclusive 

Unit Price Ex- 

Dumpyard 

(including all 

taxes & duties, 

inland 

transportation 

and all activities 

as per scope of 

work) 

1.0 BARE PIPE BEING IMPORTED 

1.1 Delivery of Bare Pipe (FIM) at Mumbai Port 

“Receiving and taking-over” of company supplied free issue bare line pipes from MUMBAI Port as 

port of entry. Obtaining all necessary port clearance, stevedoring, liaison, port fees, easements, 

warehousing, wharefage , handling, unloading/ loading as required including payment of all fees, 

charge etc. (excluding custom duty which will be paid by GAIL), inland/ marine transportation of 

bare pipes to Contractor’s coating yard(s), carrying out external coating of bare line pipes with 

Normal (n) type 3-layer side extruded high density polyethylene coating of minimum thickness of 

2.0mm of finished 3-Layer Coating as per attached specification, loading, inland/ marine 

transportation of coated/ uncoated pipes from coating yard to the "Designated Place Of Delivery" 

, unloading, handling, stacking of coated pipes at "Designated Place Of Delivery" in presence of 

Company’s Representative as per specification, handing over of coated pipes to Company at the 

"Designated Place Of Delivery" including supply of all coating materials, consumables etc. 

and carrying out all works as per Technical input attached with this document and other docu 

forming a part of contract and the instruction of company representative. The scope shall also 

include Land Acquisition and Dump Yard Development & Management such as, identification and 

acquiring a suitable plot Near Oduru, preparation/ development of Dumpyard including all works of 

cutting, grading, clearing, levelling, filling up, fencing, preparation of access roads, making 

arrangements for bare/ coated pipe stacking/ storing, internal roads duly compacted for movement 

of cranes/ trailers/ tractors within Dumpyard, Dumpyard Security, wooden sleepers and other 

necessary materials required for pipe stacking, etc. as per the requirements of scope of work for a 

free period of two(2) months from Contractual Completion Period or actual completion whichever is 

later. 

Supplier's Scope of work shall also be inclusive of rectification/ repair of all defects (occuring on 

account of any damage during transportation or otherwise), noted and recorded at the time of 

Receiving of Coated/ Uncoated Pipes at Dumpyard in the presence of Owner’s representative 

including performing all works as per specification and instructions of Owner’s Representative. 

Name of Designated Place of Delivery/ Dumpyard Size Inch (OD) x W.T. x Type x Grade 

A Near Oduru (Rajahmundry, AP) 18" (457.0mm) X 6.4mm, EW/ SAW, API 5L Gr. X-70 Meter Coated 22,700 

B1 Near Oduru (Rajahmundry, AP) 18" (457.0mm) X 8.7mm, EW/ SAW, API 5L Gr. X-70 Meter Coated 5,900 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Mumbai)-final 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 

Coating (Exworks) 

Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 

applicable taxes 

included in col 

(2) 

Charges 

towards 

Development 

and 

maintenance of 

Dumpyard 

including 



(2) 

CIF Value of 

Import of 

Raw Material 

for Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 

(Signature & Seal of Bider)

Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 

B2 Near Oduru (Rajahmundry, AP) 18" (457.0mm) X 8.7mm, EW/ SAW, API 5L Gr. X-70 Meter Uncoated 100 

C1 Near Oduru (Rajahmundry, AP) 18" (457.0mm) X 10.3mm, EW/ SAW, API 5L Gr. X-70 Meter Coated 2,600 

C2 Near Oduru (Rajahmundry, AP) 18" (457.0mm) X 10.3mm, EW/ SAW, API 5L Gr. X-70 Meter Uncoated 200 

Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: MUMBAI PORT 

Total Ex- 

Dumpyard 

Price 

Bidder shall furnish list of all items, quantity and CIF value covered under column (9) in separate sheet 

Unit ex-dumpyard price at col. (2) shall be all inclusive and nothing extra shall be payable by the owner except for statutory variation as stipulated in the bid document. 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Mumbai)-final 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of 

Raw Material 

for Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 



Item : PE Coating of Bare Line Pipe and Transportation 


PLACE OF TAKING THE DELIVERY OF BARE PIPES: KANDLA PORT 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE BEING IMPORTED AT KANDALA PORT 

1.1 Delivery of Bare Pipe (FIM) at Kandla Port 

“Receiving and taking-over” of company supplied free issue bare line pipes from KANDLA Port as 

port of entry. Obtaining all necessary port clearance, stevedoring, liaison, port fees, easements, 

warehousing, wharefage , handling, unloading/ loading as required including payment of all fees, 

charge etc. (excluding custom duty which will be paid by GAIL), inland/ marine transportation of 

bare pipes to Contractor’s coating yard(s), carrying out external coating of bare line pipes with 

Normal (n) type 3-layer side extruded high density polyethylene coating of minimum thickness of 

2.0mm of finished 3-Layer Coating as per attached specification, loading, inland/ marine 

transportation of coated/ uncoated pipes from coating yard to the "Designated Place Of Delivery" 

, unloading, handling, stacking of coated pipes at "Designated Place Of Delivery" in presence of 

Company’s Representative as per specification, handing over of coated pipes to Company at the 

"Designated Place Of Delivery" including supply of all coating materials, consumables etc. and 

carrying out all works as per Technical input attached with this document and other documents 

forming a part of contract and the instruction of company representative. The scope shall also 

include Land Acquisition and Dump Yard Development & Management such as, identification and 

acquiring a suitable plot Near Oduru, preparation/ development of Dumpyard including all works of 

cutting, grading, clearing, levelling, filling up, fencing, preparation of access roads, making 

arrangements for bare/ coated pipe stacking/ storing, internal roads duly compacted for movement 

of cranes/ trailers/ tractors within Dumpyard, Dumpyard Security, wooden sleepers and other 

necessary materials required for pipe stacking, etc. as per the requirements of scope of work for a 

free period of two(2) months from Contractual Completion Period or actual completion whichever is 

later. 








D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Kandla) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of 

Raw Material 

for Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 




Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: KANDLA PORT 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Kandla) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of 

Raw Material 

for Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 



Item : PE Coating of Bare Line Pipe and Transportation (Price in Rupees) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: Dahej, Bharuch 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT DAHEJ, BHARUCH 

1.1 PE Coating 

“Receiving and taking-over” of company supplied free issue bare line pipes from Pipe 

Manufacturer at Dahej, Bharuch transportation of Bare pipes from pipe Manufacturer's Work/ 

place of delivery to coating yard, unloading and handling of Bare Pipes at Coating Yard, carrying 

out external coating of bare line pipes with Normal (n) type 3-layer side extruded high density 

polyethylene coating of minimum thickness of 2.0mm of finished 3-Layer Coating as per 

attached specification, loading, transportation of coated/ uncoated pipes from coating yard to the 

"Designated Place Of Delivery" , unloading, handling, stacking of coated/uncoated pipes at 

"Designated Place Of Delivery" in presence of Company’s Representative as per specification, 

handing over of coated pipes to Company at the "Designated Place Of Delivery" including 

supply of all coating materials, consumables etc. and carrying out all works as per Technical 

input attached with this document and other documents which are forming a part of contract 

instruction of company representative. The scope shall also include Land Acquisition and Dump 

Yard Development & Management such as, identification and acquiring a suitable plot Near 

Oduru, preparation/ development of Dumpyard including all works of cutting, grading, clearing, 

levelling, filling up, fencing, preparation of access roads, making arrangements for bare/ coated 

pipe stacking/ storing, internal roads duly compacted for movement of cranes/ trailers/ tractors 

within Dumpyard, Dumpyard Security, wooden sleepers and other necessary materials required 

for pipe stacking, etc. as per the requirements of scope of work for a free period of two(2) 

months from Contractual Completion Period or actual completion whichever is later. 









D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Dahej) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 



Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: Dahej, Bharuch 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Dahej) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: KOSI KALAN 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT KOSI KALAN 



Manufacturer at Kosi Kalan transportation of Bare pipes from pipe Manufacturer's Work/ place 

of delivery to coating yard, unloading and handling of Bare Pipes at Coating Yard, carrying out 

external coating of bare line pipes with Normal (n) type 3-layer side extruded high density 








and the 
















D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Kosi Kalan) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 




Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: KOSI KALAN 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Kosi Kalan) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: DHAN, INDORE 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT DHAN, INDORE 



Manufacturer at Dhan, Indore transportation of Bare pipes from pipe Manufacturer's Work/ place 

























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Dhan Indore) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 




Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: DHAN, INDORE 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Dhan Indore) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: MUNDRA 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT MUNDRA 



Manufacturer at Mundra transportation of Bare pipes from pipe Manufacturer's Work/ place of 

delivery to coating yard, unloading and handling of Bare Pipes at Coating Yard, carrying out 
























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Mundra) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 




Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: MUNDRA 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Mundra) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: NAGOTHANE 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT NAGOTHANE 



Manufacturer at Nagothane transportation of Bare pipes from pipe Manufacturer's Work/ place 


























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (NAGOTHANE) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 



Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: NAGOTHANE 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (NAGOTHANE) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: ROURKELA 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT Rourkela 



Manufacturer at Rourkela transportation of Bare pipes from pipe Manufacturer's Work/ place of 


























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Rourkela) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 



Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: ROURKELA 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Rourkela) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: VIZAG 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT Vizag 



Manufacturer at Vizag transportation of Bare pipes from pipe Manufacturer's Work/ place of 


























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Vizag) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 



Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: VIZAG 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Vizag) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: KANDLA 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT Kandla 



Manufacturer at Kandla transportation of Bare pipes from pipe Manufacturer's Work/ place of 


























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Kandla1) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 



Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: KANDLA 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Kandla1) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: BAHADURGARH 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT BAHADURGARH 



Manufacturer at Bahadurgarh transportation of Bare pipes from pipe Manufacturer's Work/ 


























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Bahadurgarh) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 



Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: BAHADURGARH 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Bahadurgarh) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 



(OPTION-II) 

Page 1 of 2 




PLACE OF TAKING THE DELIVERY OF BARE PIPES: ANJAR, GUJARAT 

Item 

No. 



Dumpyard 



inland 




work) 

1.0 BARE PIPE SUPPLY BY INDIAN MANUFACTURER AT BAHADURGARH 



Manufacturer at Bahadurgarh transportation of Bare pipes from pipe Manufacturer's Work/ 


























D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Anjar) 

Total Ex- 

Dumpyard 

Price 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


Item 

No. 


(OPTION-II) 



Dumpyard 



inland 




work) 



Note: 

a) 

b) 

PLACE OF TAKING THE DELIVERY OF BARE PIPES: ANJAR, GUJARAT 

Total Ex- 

Dumpyard 

Price 



D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\SOR - Line Pipe (OPTION-II)-R1 Opt-II (Anjar) 

(1) X (2) 

Unit Rate for 


Included in 

Column 

(2) 

Excise 

Duty 

included in 

Col. (2) 

CST/LST/VAT 

(without any 

concessional 

form) % 

applicable on 

col (4+5) 

Inland 


Charges 

including 



(2) 

Charges 

towards 

Development 

and 


Dumpyard 

including 



(2) 

Page 2 of 2 

CIF Value of 

Import of Raw 

Material for 

Coating 

Import Duty 

(in %) 

Considered on 

CIF value of 

Import (9) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 


PRICE SCHEDULE FOR FOREIGN (NON-INDIAN) BIDDERS (OPTION-III) 

NAME OF BIDDER : FORMAT SOR-III A2 


ITEM : PE COATED & BARE LINE PIPES Port of Loading…………………………………………. 

Currency ……………………………………………….... 


Item 

No. 

1.0 

Description 

Qty. Unit Ex-Dumpyard Price Total Price Total CIF Import Duty Port Handling, Customs Taxes (other Estimated 

(Meter) (all inclusive such as at Value of Considered Clearance, Inland than import Shipping 

packing & forwarding, Dumpyard Imported (in % age transportation charges, duty) Weight & 

customs duty, C & F, Col (1) X Col Coated/ and Amount development and Considered in Volume 

other applicable taxes (2) Uncoated on CIF value maintenance of Dumpyard %age and of the Items 

and duties, 

Pipes of Column (4) including applicable taxes Amount 

transportation etc.) 

included in 

Col. (2) 

included in col (2) 

Supply of 3L PE Coated Line Pipes & Bare Line Pipes: Line Pipe as per API 5L, 

March,2004 (43 

(1) (2) (3) (4) (5) (6) (7) (8) 

rd edition) , PSL-2 and Technical Specification No. MEC/TS/05/21/012D, Rev-0 

and PE Coating as per Technical Input, Technical Specification No.MEC/S/05/62/014, Rev-2 

and its Amendment-I. 

Supplier's Scope of work shall be inclusive of Receiving and taking over of coated/ uncoated 

line pipes from port of entry; obtaining all necessary port clearance, stevedoring, liaison, port 

fees, easements, warehousing, wharefage , handling, unloading/ loading as required including 

payment of all fees, charge etc. including customs duty, loading/ unloading, handling & 

transportation of coated/ uncoated pipes to designated place of delivery (Dumpyard Near 

Oduru, Rajahmundary - A.P.). The scope shall also include land acquisition and Dumpyard 

Development & Management such as, identification and acquiring a suitable plot Near Oduru, 

preparation/ development of Dumpyard including all works of cutting, grading, clearing, 





months from Contractual Completion Period or actual completion whichever 

is later. 

Supplier's Scope of work shall also be inclusive of rectification/repair of all defects (occuring on 




Pipe Size (OD), W.T. Ends Std./ Grade Finish Manufacturing 


(EW/ SAW) 


A 18” (457.0) 6.4 PE API 5L X-70 Coated 22,700 

B1 18” (457.0) 8.7 PE API 5L X-70 Coated 5,900 

B2 18” (457.0) 8.7 PE API 5L X-70 Uncoated 100 

C1 18” (457.0) 10.3 PE API 5L X-70 Coated 2,600 

C2 18” (457.0) 10.3 PE API 5L X-70 Uncoated 200 

Indian Agency commission : Indicate percentage of CIF price already included in Column-2. 

Note: 

1 Bidder shall indicate the selected and offered manufacturing process in the given column. For any item, only one type of manufacturing process shall be indicated by the bidder. 

2 Unit ex-dumpyard price at Col. 2 shall be all inclusive and nothing extra shall be payable by the owner except for statutory variation as stipulated in the bid document. 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Price Schedule - Coated Line Pipe (Option-III)-R1 Non-Indian Signature of Bidder with Company Seal Page 1 of 1

NAME OF BIDDER : 

PRICE SCHEDULE FOR FOREIGN (NON-INDIAN) BIDDERS (OPTION-III) 

SUPPLY OF IMPORTED BARE PIPES WITH COATING IN INDIA 

FORMAT SOR-III B 

BID DOCUMENT NO. : 05/51/23J8(PART-C)/GAIL/012B Port of Loading…………………………………………. 

ITEM : PE COATED & BARE LINE PIPES Currency ……………………………………………….... 


Item 

No. 

1.0 

Description 

Supply of 3L PE Coated Line Pipes & Uncoated Line Pipes: Line Pipe as per API 5L, March,2004 (43 rd 

edition) , PSL-2 and Technical Specification No. MEC/TS/05/21/012D, Rev-0 and PE Coating as per Technical 

Input, Technical Specification No.MEC/S/05/62/014, Rev-2 and its Amendment-I. 

Supplier's Scope of work shall be inclusive of Receiving and taking over of Bare line pipes from port of entry; 

obtaining all necessary port clearance, stevedoring, liaison, port fees, easements, warehousing, wharefage , 

handling, unloading/ loading as required including payment of all fees, charge etc. including customs duty, 

loading/ unloading, handling & transportation of Bare Line Pipes to Coating Yard in India unloading and 

handling of Bare Pipes at Coating Yard, carrying out external coating of bare line pipes with Normal (n) type 3layer 

side extruded high density polyethylene coating of minimum thickness of 2.0mm of finished 3-Layer 

Coating as per attached specification, loading, transportation of coated/ uncoated pipes from coating yard to 

the "Designated Place Of Delivery" , unloading, handling, stacking of coated/uncoated pipes at "Designated 

Place Of Delivery" in presence of Company’s Representative as per specification, handing over of coated pipes 

to Company at the "Designated Place Of Delivery" including supply of all coating materials, consumables etc. 

and carrying out all works as perTechnical input attached with this document and other 

documents which are forming a part of contract. The designated place of delivery (Dumpyard Near Oduru, 

Rajahmundary - A.P.). The scope shall also include land acquisition and Dumpyard Development & 

Management such as, identification and acquiring a suitable plot Near Oduru, preparation/ development of 

Dumpyard including all works of cutting, grading, clearing, levelling, filling up, fencing, preparation of access 

roads, making arrangements for bare/ coated pipe stacking/ storing, internal roads duly compacted for 

movement of cranes/ trailers/ tractors within Dumpyard, Dumpyard Security, wooden sleepers and other 

necessary materials required for pipe stacking, etc. as per the requirements of scope of work for a free period 

of two(2) months from Contractual Completion Period or actual completion whichever is later. 

Supplier's Scope of work shall also be inclusive of rectification/repair of all defects (occuring on account of any 

damage during transportation or otherwise), noted and recorded at the time of Receiving of Coated/ 

Uncoated Pipes at Dumpyard in the presence of Owner’s representative including performing all works as per 

specification and instructions of Owner’s Representative. 

Qty. 

(Meter) 

Pipe Size (OD), W.T. Ends Std./ Grade Finish Manufacturing Process (EW/SAW) 

Inch (mm) (mm) Code (Ref. Note - 1) 






Indian Agency commission : Indicate percentage of CIF price already included in Column-2. 

Unit Ex-Dumpyard 

Price (all inclusive 

such as packing & 

forwarding, customs 

duty, C & F, other 

applicable taxes and 

duties, 

transportation etc.) 

Total Price 

at 

Dumpyard 

Col (1) X Col 

(2) 

Total CIF 

Value of 

Imported 

BARE PIPES 

included in 

Col. (2) 

Import Duty 

Considered 

(in % age 

and Amount 

on CIF value 

of Column 

(4) 

Unit Price Component for 

Port Handling, Customs 

Clearance, Inland 

transportation charges, 

development and 


Dumpyard including 

applicable taxes included 

in Col (2) 

Unit Price 

Component for 

Coating Works In 

India 

Taxes (Excise/ 

Service Tax) 

Considered for 

COATING of 

PIPEs in %age 

and Amount 

Sales Tax/ 

VAT in 

%age & 

Amount 

included in 

Col (2) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) 

Note: 

1 Bidder shall indicate the selected and offered manufacturing process in the given column. For any item, only one type of manufacturing process shall be indicated by the bidder. 

2 Unit ex-dumpyard price at Col. 2 shall be all inclusive and nothing extra shall be payable by the owner except for statutory variation as stipulated in the bid document. 

D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Price Schedule - Coated Line Pipe (Option-III)-R1 Non-Indian (2) Signature of Bidder with Company Seal Page 1 of 1

PRICE SCHEDULE FOR INDIAN BIDDER (OPTION-III) 

NAME OF BIDDER : FORMAT SOR-III A1 


ITEM : PE COATED & BARE LINE PIPES 

Item 

No. 

Description 

Qty. 

(Meter) 



imported raw 

material/ components 

& Project Rate of 

Customs Duty 

thereon, pkg/ fwd, 

but excluding ED & ST 

on finished goods 

Per Unit 

Terminal Excise 

Duty 

Per Unit Sales 

Tax (Without 

'C' Form) 

Per Unit 

Freight upto 

Project Site 

(Dumpyard) 

by Road 

Including 

Transit 

Insurance 

Per Unit 

Charges 

towards 

development 

and 

maintenance 

of Dumpyard 

including all 

applicable 

taxes & 

duties 

Per Unit FOT 

Site 

(Dumpyard) 

(4+5+6+7+8) 

including 

dumpyard 

management 

etc. 

Total FOT Project 

Site (Dumpyard) 

(3x9) 

Total Exworks 

(3x4) 

CIF value of 

Imp. Comp. 

Per Unit 

Included in 

(4) 

Total CIF 

value of 

Imp. 

Comp. 

Included 

(3x12) 

Sheet 1 of 2 


addition (in 

percentage) 



preference as per 

Bid Document 

(1) (2) 

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 

Supply of 3L PE Coated Line Pipes & Bare Line Pipes: Line Pipe 

as per API 5L, March,2004 (43 rd edition) , PSL-2 and Technical 

Specification No. MEC/TS/05/21/012D, Rev-0 and PE Coating as per 

Technical Input, Technical Specification No.MEC/S/05/62/014, Rev-2 

and its Amendment-I. 

Supplier's Scope of work shall be inclusive of loading/ unloading, 

handling and transportation of coated/ uncoated pipes to designated 

place of delivery (Dumpyard Near Oduru, Rajahmundary - A.P.). The 

scope shall also include land acquisition and Dumpyard Development & 

Management such as, identification and acquiring a suitable plot Near 

Oduru, preparation/ development of Dumpyard including all works of 

cutting, grading, clearing, levelling, filling up, fencing, preparation of 

access roads, making arrangements for bare/ coated pipe stacking/ 

storing, internal roads duly compacted for movement of cranes/ 

trailers/ tractors within Dumpyard, Dumpyard Security, wooden 

sleepers and other necessary materials required for pipe stacking, etc. 

as per the requirements of scope of work for a free period of two(2) 

Contractual Completion Period or actual completion whichever is later. 

Supplier's Scope of work shall also be inclusive of rectification/ repair of 

all defects (occuring on account of any damage during transportation or 

otherwise), noted and recorded at the time of Receiving of Coated/ 

Uncoated Pipes at Dumpyard in the presence of Owner’s representative 

including performing all works as per specification and instructions of 

Owner’s Representative. 

Pipe Size (OD), W.T. Ends Std./ Grade Finish Manufacturing 


(EW/ SAW) 





D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Price Schedule - Coated Line Pipe (Option-III)-R1 Indian 

Signature of Bidder with Company Seal

Item 

No. 

Description 

Qty. 

(Meter) 



imported raw 

material/ components 

& Project Rate of 

Customs Duty 

thereon, pkg/ fwd, 

but excluding ED & ST 

on finished goods 

Per Unit 

Terminal Excise 

Duty 

Per Unit Sales 

Tax (Without 

'C' Form) 

Per Unit 

Freight upto 

Project Site 

(Dumpyard) 

by Road 

Including 

Transit 

Insurance 

Per Unit 

Charges 

towards 

development 

and 

maintenance 

of Dumpyard 

including all 

applicable 

taxes & 

duties 

Per Unit FOT 

Site 

(Dumpyard) 

(4+5+6+7+8) 

including 

dumpyard 

management 

etc. 

Total FOT Project 

Site (Dumpyard) 

(3x9) 

Total Exworks 

(3x4) 

CIF value of 

Imp. Comp. 

Per Unit 

Included in 

(4) 

Total CIF 

value of 

Imp. 

Comp. 

Included 

(3x12) 

Sheet 2 of 2 


addition (in 

percentage) 



preference as per 

Bid Document 

(1) (2) 

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 



Please indicate 

Excise Duty @ ……………… 

CST @ ……… Without issuance of any concessional Form 

Local Sales Tax / VAT @ ……… Without issuance of any concessional Form 

Note: 


D:\old data\Vijyant\IPPS KG - Basin\Tender\Bare Line Pipe\Final\Price Schedule - Coated Line Pipe (Option-III)-R1 Indian 

Signature of Bidder with Company Seal



TENDER FOR 




SECTION-X 

DRAWINGS



TENDER FOR 




NIL

GAIL (India) Limited MECON LIMITED

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