(VERSION-IV) - DVC :: Consumer Login

38. DELIVERY PERIOD CONSIDERATION:
No weightage should be given for early delivery of goods/early completion of works than that
mentioned in the NIT. In case any bidder offers belated delivery/ completion schedule for 2-part
bid, there may be option to pursue the bidder to match the delivery clause/ completion schedule of
NIT, provided same has not been declared in deviation schedule by the bidder. Date of delivery is
to be reckoned as the date of receipt of materials/goods by the consignee. However In case of exworks
basis, the delivery date will be considered as per date of date of consignment note.
39. LIQUIDATED DAMAGE:
The time remains the essence of all major contracts / purchase orders awarded by DVC and all
deliverables under a Purchase Order / Work Order needs to be completed within the contractual
time schedule. Therefore, the provision has been kept in the contract/Purchase Order that in case
of delay in completion, for the reasons attributable to the contractor, Purchaser/owner reserves the
right to recover from the Vendor a sum equivalent to 0.5% of the value of the delayed materials /
work / equipment / spares for each week of delay and part thereof subject to maximum of 5% of
the total value of the contract as Liquidated Damage (LD).
LD is to be ascertained by the Indenting Officer.
In the event of any difficulty in deciding on the imposition of LD at the intermediate stages
(specially in works/turnkey contracts) during execution of any contract provisional time extension
may be granted with the approval of the competent authority as per delegation so that there is no
problem in accepting delayed supply/works. Such provisional time extension shall be without
prejudice to the right of DVC in levying LD and other rights as per terms of the contract.
However, there shall be no restriction in issuing final extension order at any stage of the work
wherever it is possible to do so.
In cases, where the works/supply/services extend beyond the contractual completion
schedule/delivery period and provisional extension order is issued without deciding on the
application of LD, no amount from the RA bill will be withheld in case where adequate retention
payment (over and above SD) remains with DVC as per terms of the contract (10% payment is
retained against supply and erection for turnkey contracts). In absence of such retention,
admissible LD amount as decided by concerned Chief Engineer shall be withheld from their
running bill till final decision on LD is taken.
Paying authority should not deduct the L.D. amount directly as the reasons for delay is not fully
known to them. On receipt of materials/execution of contracts after expiry of scheduled delivery
period/time of completion as per the contract, the Paying Authority should immediately clear the
payment without waiting for formal delivery period / time extension order, withholding (not
deduction) the extent of L.D. amount as applicable and inform the order issuing authority and
indenting officer to resolve/settle the applicability of L.D. clause within a reasonable period
enclosing the Vendor’s appeal if any, thereafter the withheld L.D. amount to be regularized
accordingly.
W& P Manual – 2012 Page 66