BID DOCUMENTS - IDCO

CONDITIONS OF CONTRACT
CLAUSE - I
All compensation/penalty or other sums of money payable by the Contractor to Corporation under the
terms of this contract may be deducted from, or paid by, the sale or a sufficient part of his security deposit
or from the interest arising there from, or from any sums which may be due or may become due to the
Contractor by the Corporation on any account whatsoever and in the event of his security deposit being
reduced by reason of any such deduction or sales as aforesaid the Contractor shall within ten days
thereafter make good in cash or Bank Draft any sum or sums which may have been deducted from, or
raised by, sale of the security deposit or any part thereof.
CLAUSE - II
PENALTY FOR DELAY :
Time is deemed to be essence of the contract on the part of the Contractor. The time allowed for carrying
out the wok as entered in the tender shall be strictly observed by the Contractor and shall be reckoned
from the date on which the written order to commence the work is given to the Contractor. On receipt of
the work order, the Contractor will give a schedule of construction and stick to the time schedule during
execution. In case he fails to observe the approved time schedule during the intermediate period of the
execution of work, penalty will be levied and will be recovered @ 1 / 2 % on the value of work lagging
behind for every week delay in execution of the portion or component of work for which programme is
given in the time schedule.
The penalty thus recovered at different stages may be waived in full or part if the authorized person of
IDCO in-charge of the work is satisfied that the Contractor has made up the delay at subsequent stages
and the work proceeds as per original time schedule. The decision of the authorised officer in charge of
the work is final and binding as regards recovery and waive of penalty at the intermediate stages of the
execution of the work.
If the work is delayed at the completion stage the penalty levied cannot be considered unless the work is
finished in all respect within the time schedule. The work should not be considered as finished until such
date as the Corporation shall satisfy as the date on which the work is finished after necessary rectification
of defects as pointed out by the Corporation or its authorized officer are fully complied with by the
Contractor to the Corporations satisfaction provided all ways that entire amount of penalty to be paid
under provision of this Clause shall not exceed 10% of the contract value of the work.
Penalty levied for any delay which will occur during the last 3 months of the contract period can not be
considered for waiver by any Authority other than the Managing Directors of the Corporation. Subject to
the consideration that the application for waiver or penalty to the Managing Director of the Corporation
can only be considered if work gets finally finished within time schedule.
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