BID DOCUMENT - Chennai Telephones - BSNL

14.3 Termination for Insolvency:
14.3.1. BSNL may at any time terminate the Contract by giving written notice to the Contractor,
without compensation to Contractor, if the contractor becomes bankrupt or otherwise
insolvent as declared by the competent court provided that such termination will not prejudice
or affect any right or action or remedy which has accrued or will thereafter to BSNL.
14.4 Optional Termination by BSNL (Other than due to default of the Contractor )
14.4.1. BSNL may, at any time, at its option cancel and terminate this contract by written notice to
the contractor, in which event the contractor shall be entitled to payment for the work done up
to the time of such cancellation and a reasonable compensation in accordance with the
contract prices for any additional expenses already incurred for balance work exclusive of
purchases and/or whole of material, machinery and other equipment for use in or in respect
of the work.
14.4.2 In the event of the termination of the contract, the contractor shall forthwith clear the site of
all the contractor’s materials, machinery and equipments and hand over possession of the
work / operations concerned to BSNL or as BSNL may direct.
14.4.3 BSNL may, at its option, cancel or omit the execution of one or more items of work under
this contract and may cancel part of such items without any compensation whatsoever to the
contractor.
14.5. Issuance of Notice.
14.5.1 The Assistant General Manager/Divisional Engineer in-charge of work shall issue show
cause notice as and when required, giving details of lapses, violation of terms and conditions
of the contract, wrongful delays or suspension of work or slow progress to the contractor
directing the contractor to take corrective action. A definite time schedule for corrective
action shall be mentioned in the show cause notice. If the contractor fails to take corrective
action within the stipulated time frame, the Assistant General Manager/Divisional Engineer
in-charge shall issue a final notice to the contractor along with a detailed report to the
competent authority who had accepted the contract.
14.5.2 The final notice for rescission of contract to the contractor shall expressly state the precise
date and time from which the rescission would become effective. The following safe guards
shall be taken while issuing the final notice.
During the period of service notice and its effectiveness, the contractor should not be allowed
to remove from the site any material / equipment belonging to BSNL
The contractor shall give in writing the tools and plants he would like to take away/remove
from the site. Such of the materials as belongs to him and which may not be required for
future execution of balance work may be allowed by the Assistant General
Manager/Divisional Engineer in-charge of work to be removed with proper records
No new construction beneficial to the contractor shall be allowed.
Adequate security arrangement by BSNL in replacement of the contractor watch and ward
shall be made forthwith. Expenses on this account are recoverable from the security deposit
or any amount due to the contractor.
15. INDEMNITIES:
15.1 The contractor shall at all times hold BSNL harmless and indemnify from against all action,
suits, proceedings, works, cost, damages, charges claims and demands of every nature and
descriptions, brought or procured against BSNL, its officers and employees and forthwith upon
demand and without protest or demur to pay to BSNL any and all losses and damages and cost
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Signature of Bidder with seal